UNITED STATES | ||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||
Washington, D.C. 20549 | ||||||
FORM 8-K | ||||||
CURRENT REPORT | ||||||
PURSUANT TO SECTION 13 OR 15(d) OF THE | ||||||
SECURITIES EXCHANGE ACT OF 1934 | ||||||
Date of report (Date of earliest event reported): June 13, 2017 | ||||||
ATHENE HOLDING LTD. | ||||||
(Exact name of registrant as specified in its charter) | ||||||
Bermuda | 001-37963 | 98-0630022 | ||||
(State or other jurisdiction of | (Commission | (I.R.S. Employer | ||||
incorporation or organization) | file number) | Identification Number) | ||||
96 Pitts Bay Road | ||||||
Pembroke, HM08, Bermuda | ||||||
(Address of principal executive offices and zip code) | ||||||
(441) 279-8400 | ||||||
(Registrant’s telephone number, including area code) | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||||||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||
Emerging growth company o | ||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
(d) | Exhibits |
23.1.1 | Consent of PricewaterhouseCoopers LLP regarding Athene Holding Ltd. financial statements. |
23.1.2 | Consent of PricewaterhouseCoopers Ltd. regarding Athene Holding Ltd. financial statements. |
99.1 | Revised 2016 Annual Report Sections: |
Part II – Item 8. Financial Statements and Supplementary Data | |
Part IV – Item 15. Exhibits and Financial Statement Schedules | |
99.2 | Revised 2017 Quarterly Report Section: |
Part I – Item 1. Financial Statements | |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. |
101.LAB | XBRL Taxonomy Extension Label Linkbase. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. |
ATHENE HOLDING LTD. | |
Date: June 13, 2017 | /s/ Martin P. Klein |
Martin P. Klein | |
Executive Vice President and Chief Financial Officer | |
Exhibit No. | Description |
23.1.1 | Consent of PricewaterhouseCoopers LLP regarding Athene Holding Ltd. financial statements. |
23.1.2 | Consent of PricewaterhouseCoopers Ltd. regarding Athene Holding Ltd. financial statements. |
99.1 | Revised 2016 Annual Report Sections: |
Part II – Item 8. Financial Statements and Supplementary Data | |
Part IV – Item 15. Exhibits and Financial Statement Schedules | |
99.2 | Revised 2017 Quarterly Report Section: |
Part I – Item 1. Financial Statements | |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. |
101.LAB | XBRL Taxonomy Extension Label Linkbase. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. |
Consolidated Financial Statements and Notes | |||
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Assets | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities (amortized cost: 2016 – $51,110 and 2015 – $48,227) | $ | 52,033 | $ | 47,816 | |||
Equity securities (cost: 2016 – $319 and 2015 – $367) | 353 | 407 | |||||
Trading securities, at fair value | 2,581 | 2,468 | |||||
Mortgage loans, net of allowances (portion at fair value: 2016 – $44 and 2015 – $48) | 5,470 | 5,500 | |||||
Investment funds (portion at fair value: 2016 – $99 and 2015 – $152) | 689 | 733 | |||||
Policy loans | 602 | 642 | |||||
Funds withheld at interest (portion at fair value: 2016 – $140 and 2015 – $36) | 6,538 | 3,482 | |||||
Derivative assets | 1,370 | 871 | |||||
Real estate (portion held for sale: 2016 – $23 and 2015 – $0) | 542 | 566 | |||||
Short-term investments, at fair value (cost: 2016 – $189 and 2015 – $135) | 189 | 135 | |||||
Other investments | 81 | 83 | |||||
Total investments | 70,448 | 62,703 | |||||
Cash and cash equivalents | 2,445 | 2,714 | |||||
Restricted cash | 57 | 116 | |||||
Investments in related parties | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities (amortized cost: 2016 – $341 and 2015 – $332) | 335 | 308 | |||||
Equity securities (cost: 2016 – $20 and 2015 – $0) | 20 | — | |||||
Trading securities, at fair value | 195 | 217 | |||||
Investment funds | 1,198 | 997 | |||||
Short-term investments | — | 55 | |||||
Other investments | 237 | 245 | |||||
Accrued investment income (related party: 2016 – $9 and 2015 – $9) | 554 | 520 | |||||
Reinsurance recoverable (portion at fair value: 2016 – $1,692 and 2015 – $2,377) | 6,001 | 7,257 | |||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 2,940 | 2,652 | |||||
Current income tax recoverable | 107 | 113 | |||||
Deferred tax assets | 372 | 609 | |||||
Other assets | 869 | 749 | |||||
Assets of consolidated variable interest entities | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Equity securities – related party (cost: 2016 – $143 and 2015 – $0) | 161 | — | |||||
Trading securities, at fair value | |||||||
Fixed maturity securities (related party: 2016 – $50 and 2015 – $53) | 50 | 722 | |||||
Equity securities – related party | 117 | 309 | |||||
Investment funds (related party, at fair value: 2016 – $562 and 2015 – $516) | 573 | 534 | |||||
Cash and cash equivalents | 14 | 6 | |||||
Other assets | 6 | 20 | |||||
Total assets | $ | 86,699 | $ | 80,846 |
December 31, | |||||||
(In millions, except share and per share data) | 2016 | 2015 | |||||
Liabilities and Equity | |||||||
Liabilities | |||||||
Interest sensitive contract liabilities (portion at fair value: 2016 – $6,574 and 2015 – $6,346) | $ | 61,532 | $ | 57,289 | |||
Future policy benefits (portion at fair value: 2016 – $2,400 and 2015 – $2,478) | 14,592 | 14,547 | |||||
Other policy claims and benefits | 217 | 234 | |||||
Dividends payable to policyholders | 974 | 856 | |||||
Derivative liabilities | 40 | 17 | |||||
Payables for collateral on derivatives | 1,383 | 867 | |||||
Funds withheld liability (portion at fair value: 2016 – $6 and 2015 – $35) | 380 | 388 | |||||
Other liabilities (related party: 2016 – $56 and 2015 – $63) | 688 | 778 | |||||
Liabilities of consolidated variable interest entities | |||||||
Borrowings | — | 500 | |||||
Other liabilities | 34 | 17 | |||||
Total liabilities | 79,840 | 75,493 | |||||
Equity | |||||||
Common stock | |||||||
Class A – par value $0.001 per share; authorized: 2016 and 2015 – 425,000,000 shares; issued and outstanding: 2016 – 77,319,381 and 2015 – 50,151,265 shares | — | — | |||||
Class B – par value $0.001 per share; convertible to Class A; authorized: 2016 and 2015 – 325,000,000 shares; issued and outstanding: 2016 – 111,805,829 and 2015 – 135,963,975 shares | — | — | |||||
Class M-1 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 7,109,560 shares; issued and outstanding: 2016 – 3,474,205 and 2015 – 5,198,273 shares | — | — | |||||
Class M-2 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 5,000,000 shares; issued and outstanding: 2016 – 1,067,747 and 2015 – 3,125,869 shares | — | — | |||||
Class M-3 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 7,500,000 shares; issued and outstanding: 2016 – 1,346,300 and 2015 – 3,110,000 shares | — | — | |||||
Class M-4 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 7,500,000 shares; issued and outstanding: 2016 – 5,397,802 and 2015 – 5,038,443 shares | — | — | |||||
Additional paid-in capital | 3,421 | 3,281 | |||||
Retained earnings | 3,070 | 2,308 | |||||
Accumulated other comprehensive income (loss) (related party: 2016 – $12 and 2015 – $(24)) | 367 | (237 | ) | ||||
Total Athene Holding Ltd. shareholders' equity | 6,858 | 5,352 | |||||
Noncontrolling interest | 1 | 1 | |||||
Total equity | 6,859 | 5,353 | |||||
Total liabilities and equity | $ | 86,699 | $ | 80,846 |
Years ended December 31, | |||||||||||
(In millions, except per share data) | 2016 | 2015 | 2014 | ||||||||
Revenues | |||||||||||
Premiums | $ | 240 | $ | 195 | $ | 100 | |||||
Product charges | 281 | 248 | 218 | ||||||||
Net investment income (related party investment income: 2016 – $226, 2015 – $168 and 2014 – $77; and related party investment expense: 2016 – $295, 2015 – $268 and 2014 – $258) | 2,914 | 2,510 | 2,333 | ||||||||
Investment related gains (losses) (related party: 2016 – $(38), 2015 – $(19) and 2014 – $(1)) | 652 | (430 | ) | 1,211 | |||||||
Other-than-temporary impairment investment losses | |||||||||||
Other-than-temporary impairment losses | (32 | ) | (40 | ) | (7 | ) | |||||
Other-than-temporary impairment losses recognized in other comprehensive income | 2 | 10 | 1 | ||||||||
Net other-than-temporary impairment losses | (30 | ) | (30 | ) | (6 | ) | |||||
Other revenues | 34 | 25 | 20 | ||||||||
Revenues of consolidated variable interest entities | |||||||||||
Net investment income (related party: 2016 – $44, 2015 – $37 and 2014 – $(5)) | 67 | 67 | 174 | ||||||||
Investment related gains (losses) (related party: 2016 – $(25), 2015 – $46 and 2014 – $46) | (53 | ) | 33 | 51 | |||||||
Total revenues | 4,105 | 2,618 | 4,101 | ||||||||
Benefits and Expenses | |||||||||||
Interest sensitive contract benefits | 1,296 | 689 | 1,822 | ||||||||
Amortization of deferred sales inducements | 39 | 21 | 4 | ||||||||
Future policy and other policy benefits | 1,059 | 518 | 700 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 318 | 206 | 124 | ||||||||
Interest expense | 9 | 17 | 22 | ||||||||
Dividends to policyholders | 37 | 28 | 44 | ||||||||
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 618 | 532 | 797 | ||||||||
Operating expenses of consolidated variable interest entities | |||||||||||
Interest expense | 12 | 15 | 17 | ||||||||
Other operating expenses | 1 | 2 | 47 | ||||||||
Total benefits and expenses | 3,389 | 2,028 | 3,577 | ||||||||
Income before income taxes | 716 | 590 | 524 | ||||||||
Income tax expense (benefit) | (52 | ) | 12 | 53 | |||||||
Net income | 768 | 578 | 471 | ||||||||
Less: Net income attributable to noncontrolling interests | — | 16 | 15 | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ | 768 | $ | 562 | $ | 456 | |||||
Earnings per share | |||||||||||
Basic – Classes A, B and M-11 | $ | 4.11 | $ | 3.21 | $ | 3.52 | |||||
Diluted – Class A | 4.02 | 3.21 | 3.47 | ||||||||
Diluted – Class B | 4.11 | 3.21 | 3.47 | ||||||||
Diluted – Class M-11 | 0.20 | N/A | N/A | ||||||||
N/A – Not applicable | |||||||||||
1 Basic and diluted earnings per Class M-1 share was applicable only for the year ended December 31, 2016. Refer to Note 13 – Earnings Per Share for further discussion. |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Net income | $ | 768 | $ | 578 | $ | 471 | |||||
Other comprehensive income (loss), before tax | |||||||||||
Change in unrealized investment gains (losses) on available-for-sale securities, net of offsets | 878 | (1,314 | ) | 899 | |||||||
Change in noncredit component of other-than-temporary impairment losses, available-for-sale | (2 | ) | (10 | ) | (1 | ) | |||||
Comprehensive income (loss) on hedging instruments | (5 | ) | 11 | 10 | |||||||
Comprehensive income (loss) on pension adjustments | — | 12 | (17 | ) | |||||||
Comprehensive loss on foreign currency translation adjustments | (8 | ) | (4 | ) | — | ||||||
Other comprehensive income (loss), before tax | 863 | (1,305 | ) | 891 | |||||||
Income tax expense (benefit) related to other comprehensive income | 259 | (424 | ) | 317 | |||||||
Other comprehensive income (loss), after tax | 604 | (881 | ) | 574 | |||||||
Comprehensive income (loss) | 1,372 | (303 | ) | 1,045 | |||||||
Less: comprehensive income attributable to noncontrolling interests | — | 16 | 15 | ||||||||
Comprehensive income (loss) available to Athene Holding Ltd. shareholders | $ | 1,372 | $ | (319 | ) | $ | 1,030 |
(In millions) | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total Athene Holding Ltd. shareholders' equity | Noncontrolling interest | Total equity | ||||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 1,348 | $ | 1,340 | $ | 70 | $ | 2,758 | $ | 94 | $ | 2,852 | |||||||||||||
Net income | — | — | 456 | — | 456 | 15 | 471 | ||||||||||||||||||||
Other comprehensive income | — | — | — | 574 | 574 | — | 574 | ||||||||||||||||||||
Issuance of shares, net of expenses | — | 719 | — | — | 719 | — | 719 | ||||||||||||||||||||
Stock-based compensation | — | 116 | — | — | 116 | — | 116 | ||||||||||||||||||||
Retirement or repurchase of shares | — | (30 | ) | (48 | ) | — | (78 | ) | — | (78 | ) | ||||||||||||||||
Change in equity of noncontrolling interests | — | — | — | — | — | (76 | ) | (76 | ) | ||||||||||||||||||
Balance at December 31, 2014 | — | 2,153 | 1,748 | 644 | 4,545 | 33 | 4,578 | ||||||||||||||||||||
Net income | — | — | 562 | — | 562 | 16 | 578 | ||||||||||||||||||||
Other comprehensive loss | — | — | — | (881 | ) | (881 | ) | — | (881 | ) | |||||||||||||||||
Issuance of shares, net of expenses | — | 1,112 | — | — | 1,112 | — | 1,112 | ||||||||||||||||||||
Stock-based compensation | — | 17 | — | — | 17 | — | 17 | ||||||||||||||||||||
Retirement or repurchase of shares | — | (1 | ) | (2 | ) | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Change in equity of noncontrolling interests | — | — | — | — | — | (48 | ) | (48 | ) | ||||||||||||||||||
Balance at December 31, 2015 | — | 3,281 | 2,308 | (237 | ) | 5,352 | 1 | 5,353 | |||||||||||||||||||
Net income | — | — | 768 | — | 768 | — | 768 | ||||||||||||||||||||
Other comprehensive income | — | — | — | 604 | 604 | — | 604 | ||||||||||||||||||||
Issuance of shares, net of expenses | — | 1 | — | — | 1 | — | 1 | ||||||||||||||||||||
Stock-based compensation | — | 153 | — | — | 153 | — | 153 | ||||||||||||||||||||
Retirement or repurchase of shares | — | (14 | ) | (6 | ) | — | (20 | ) | — | (20 | ) | ||||||||||||||||
Balance at December 31, 2016 | $ | — | $ | 3,421 | $ | 3,070 | $ | 367 | $ | 6,858 | $ | 1 | $ | 6,859 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 768 | $ | 578 | $ | 471 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of deferred acquisition costs and value of business acquired | 318 | 206 | 124 | ||||||||
Amortization of deferred sales inducements | 39 | 21 | 4 | ||||||||
Amortization (accretion) of net investment premiums, discounts, and other (related party: 2016 – $(6), 2015 – $(8) and 2014 – $0) | (172 | ) | (77 | ) | 92 | ||||||
Payment at inception of coinsurance agreement | — | (10 | ) | — | |||||||
Stock-based compensation | 84 | 67 | 373 | ||||||||
Net investment (income) loss (related party: 2016 – $(51), 2015 – $(6) and 2014 – $(53)) | (25 | ) | 8 | (134 | ) | ||||||
Net recognized (gains) losses on investments and derivatives (related party: 2016 – $34, 2015 – $42 and 2014 – $0) | (342 | ) | 520 | (1,463 | ) | ||||||
Policy acquisition costs deferred | (601 | ) | (288 | ) | (250 | ) | |||||
Deferred income tax expense (benefit) | (19 | ) | 31 | 137 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Accrued investment income | (34 | ) | 38 | 4 | |||||||
Interest sensitive contract liabilities | 925 | 874 | 2,144 | ||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 344 | (573 | ) | (698 | ) | ||||||
Current income tax recoverable | 8 | 15 | (77 | ) | |||||||
Funds withheld assets and liabilities | (128 | ) | (278 | ) | (1 | ) | |||||
Other assets and liabilities | (22 | ) | (56 | ) | (37 | ) | |||||
Consolidated variable interest entities related: | |||||||||||
Amortization (accretion) of net investment premiums, discounts, and other | 3 | 4 | (14 | ) | |||||||
Net investment loss | 3 | 3 | 1 | ||||||||
Net recognized (gains) losses on investments and derivatives (related party: 2016 – $3, 2015 – $(46) and 2014 – $(46)) | 25 | (35 | ) | (67 | ) | ||||||
Change in other assets and liabilities | 25 | 1 | (10 | ) | |||||||
Net cash provided by operating activities | 1,199 | 1,049 | 599 | ||||||||
(Continued) | |||||||||||
See accompanying notes to consolidated financial statements |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Cash flows from investing activities | |||||||||||
Sales, maturities, and repayments of: | |||||||||||
Available-for-sale securities | |||||||||||
Fixed maturity securities (related party: 2016 – $78, 2015 – $65 and 2014 – $259) | $ | 9,211 | $ | 10,424 | $ | 9,909 | |||||
Equity securities | 350 | 53 | 11 | ||||||||
Trading securities (related party: 2016 – $26, 2015 – $72 and 2014 – $271) | 748 | 1,226 | 807 | ||||||||
Mortgage loans | 1,176 | 788 | 1,062 | ||||||||
Investment funds (related party: 2016 – $293, 2015 – $99 and 2014 – $228) | 420 | 343 | 793 | ||||||||
Derivative instruments and other invested assets (related party: 2016 – $8, 2015 – $0 and 2014 – $0) | 468 | 1,151 | 1,863 | ||||||||
Real estate | 36 | 63 | — | ||||||||
Short-term investments (related party: 2016 – $55, 2015 – $130 and 2014 – $0) | 870 | 207 | — | ||||||||
Purchases of: | |||||||||||
Available-for-sale securities | |||||||||||
Fixed maturity securities (related party: 2016 – $(82), 2015 – $(64) and 2014 – $(527)) | (11,797 | ) | (11,069 | ) | (11,000 | ) | |||||
Equity securities (related party: 2016 – $(20), 2015 – $0 and 2014 – $0) | (319 | ) | (239 | ) | (51 | ) | |||||
Trading securities (related party: 2016 – $(39), 2015 – $(52) and 2014 – $(320)) | (868 | ) | (1,409 | ) | (551 | ) | |||||
Mortgage loans | (1,157 | ) | (672 | ) | (908 | ) | |||||
Investment funds (related party: 2016 – $(441), 2015 – $(510) and 2014 – $(517)) | (535 | ) | (614 | ) | (676 | ) | |||||
Derivative instruments and other invested assets | (686 | ) | (698 | ) | (682 | ) | |||||
Real estate | (39 | ) | (6 | ) | — | ||||||
Short-term investments (related party: 2016 – $0, 2015 – $(85) and 2014 – $0) | (873 | ) | (267 | ) | (17 | ) | |||||
Consolidated variable interest entities related: | |||||||||||
Sales, maturities, and repayments of investments (related party: 2016 – $22, 2015 – $244 and 2014 – $1,401) | 504 | 257 | 1,410 | ||||||||
Purchases of investments (related party: 2016 – $(19), 2015 – $(17) and 2014 – $(482)) | (19 | ) | (17 | ) | (491 | ) | |||||
Change in restricted cash | — | — | 23 | ||||||||
Acquisition of subsidiaries, net of cash acquired | — | 162 | 33 | ||||||||
Cash settlement of derivatives | 34 | 25 | 1 | ||||||||
Change in restricted cash | 59 | (39 | ) | 37 | |||||||
Other investing activities, net | (185 | ) | 279 | (241 | ) | ||||||
Net cash (used in) provided by investing activities | (2,602 | ) | (52 | ) | 1,332 | ||||||
(Continued) | |||||||||||
See accompanying notes to consolidated financial statements |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Cash flows from financing activities | |||||||||||
Capital contributions | $ | 1 | $ | 1,116 | $ | 305 | |||||
Repayment of note payables | — | (4 | ) | (300 | ) | ||||||
Deposits on investment-type policies and contracts | 5,791 | 3,460 | 3,393 | ||||||||
Withdrawals on investment-type policies and contracts | (4,617 | ) | (4,783 | ) | (5,551 | ) | |||||
Payments for coinsurance agreements on investment-type contracts, net | (89 | ) | (153 | ) | (320 | ) | |||||
Consolidated variable interest entities related: | |||||||||||
Proceeds from borrowings | — | — | 319 | ||||||||
Repayment on borrowings | (500 | ) | — | (723 | ) | ||||||
Capital contributions from noncontrolling interests | — | — | 21 | ||||||||
Capital distributions to noncontrolling interests | — | (30 | ) | (97 | ) | ||||||
Net change in cash collateral posted for derivative transactions | 516 | (535 | ) | 661 | |||||||
Repurchase of common stock | (20 | ) | (3 | ) | (78 | ) | |||||
Other financing activities, net | 73 | (12 | ) | 75 | |||||||
Net cash provided by (used in) financing activities | 1,155 | (944 | ) | (2,295 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (13 | ) | (4 | ) | — | ||||||
Net (decrease) increase in cash and cash equivalents | (261 | ) | 49 | (364 | ) | ||||||
Cash and cash equivalents at beginning of year1 | 2,720 | 2,671 | 3,035 | ||||||||
Cash and cash equivalents at end of period1 | $ | 2,459 | $ | 2,720 | $ | 2,671 | |||||
Supplementary information | |||||||||||
Cash (refunded) paid for taxes | $ | (31 | ) | $ | (34 | ) | $ | 59 | |||
Cash paid for interest | 9 | 22 | 56 | ||||||||
Non-cash transactions | |||||||||||
Deposits on investment-type policies and contracts through reinsurance agreements | 3,441 | 1,182 | 418 | ||||||||
Withdrawals on investment-type policies and contracts through reinsurance agreements | 448 | 373 | 219 | ||||||||
Investments received from settlements on reinsurance agreements | 47 | 75 | 6 | ||||||||
Investment funds acquired in exchange for non-cash assets and liabilities | — | 473 | — | ||||||||
Issuance of capital for payment of liabilities | — | — | 199 | ||||||||
Reduction in investments and other assets and liabilities relating to reinsurance | — | 920 | — | ||||||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
• | Athene Life Re Ltd., a Bermuda exempted company to which AHL's other insurance subsidiaries and third party ceding companies directly and indirectly reinsure a portion of their liabilities (ALRe); |
• | Athene USA Corporation, an Iowa corporation and its subsidiaries (Athene USA); and |
• | Athene Deutschland GmbH & Co. KG, a German partnership and its subsidiaries (ADKG). |
• | fair value of investments; |
• | impairment of investments and valuation allowances; |
• | derivatives valuation, including embedded derivatives; |
• | deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA); |
• | future policy benefit reserves; |
• | valuation allowances on deferred tax assets; and |
• | stock-based compensation. |
December 31, 2016 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Assets | |||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | $ | 2,964 | $ | (24 | ) | $ | 2,940 | ||||
Deferred tax assets | 369 | 3 | 372 | ||||||||
Total assets | $ | 86,720 | $ | (21 | ) | $ | 86,699 | ||||
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Future policy benefits | $ | 14,569 | $ | 23 | $ | 14,592 | |||||
Other liabilities | 685 | 3 | 688 | ||||||||
Total liabilities | 79,814 | 26 | 79,840 | ||||||||
Equity | |||||||||||
Retained earnings | 3,117 | (47 | ) | 3,070 | |||||||
Total Athene Holding Ltd. shareholders' equity | 6,905 | (47 | ) | 6,858 | |||||||
Noncontrolling interest | 1 | — | 1 | ||||||||
Total equity | 6,906 | (47 | ) | 6,859 | |||||||
Total liabilities and equity | $ | 86,720 | $ | (21 | ) | $ | 86,699 | ||||
December 31, 2015 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Assets | |||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | $ | 2,663 | $ | (11 | ) | $ | 2,652 | ||||
Deferred tax assets | 606 | 3 | 609 | ||||||||
Total assets | $ | 80,854 | $ | (8 | ) | $ | 80,846 | ||||
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Interest sensitive contract liabilities | $ | 57,296 | $ | (7 | ) | $ | 57,289 | ||||
Future policy benefits | 14,540 | 7 | 14,547 | ||||||||
Other liabilities | 776 | 2 | 778 | ||||||||
Total liabilities | 75,491 | 2 | 75,493 | ||||||||
Equity | |||||||||||
Retained earnings | 2,318 | (10 | ) | 2,308 | |||||||
Total Athene Holding Ltd. shareholders' equity | 5,362 | (10 | ) | 5,352 | |||||||
Noncontrolling interest | 1 | — | 1 | ||||||||
Total equity | 5,363 | (10 | ) | 5,353 | |||||||
Total liabilities and equity | $ | 80,854 | $ | (8 | ) | $ | 80,846 | ||||
Year ended December 31, 2016 | |||||||||||
(In millions, except per share data) | As Previously Reported | Revisions | As Adjusted | ||||||||
Revenue | |||||||||||
Net investment income | $ | 2,916 | $ | (2 | ) | $ | 2,914 | ||||
Total revenues | 4,107 | (2 | ) | 4,105 | |||||||
Benefits and Expenses | |||||||||||
Interest sensitive contract benefits | 1,293 | 3 | 1,296 | ||||||||
Amortization of deferred sales inducements | 40 | (1 | ) | 39 | |||||||
Future policy and other policy benefits | 1,043 | 16 | 1,059 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 304 | 14 | 318 | ||||||||
Policy and other operating expenses | 615 | 3 | 618 | ||||||||
Total benefits and expenses | 3,354 | 35 | 3,389 | ||||||||
Income before income taxes | 753 | (37 | ) | 716 | |||||||
Income tax expense (benefit) | (52 | ) | — | (52 | ) | ||||||
Net income | 805 | (37 | ) | 768 | |||||||
Less: Net income attributable to noncontrolling interests | — | — | — | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ | 805 | $ | (37 | ) | $ | 768 | ||||
Earnings per share | |||||||||||
Basic – Classes A, B and M-1 | $ | 4.31 | $ | (0.20 | ) | $ | 4.11 | ||||
Diluted – Class A | 4.21 | (0.19 | ) | 4.02 | |||||||
Diluted – Class B | 4.31 | (0.20 | ) | 4.11 | |||||||
Diluted – Class M-1 | 0.21 | (0.01 | ) | 0.20 | |||||||
Year ended December 31, 2015 | |||||||||||
(In millions, except per share data) | As Previously Reported | Revisions | As Adjusted | ||||||||
Revenue | |||||||||||
Net investment income | $ | 2,508 | $ | 2 | $ | 2,510 | |||||
Total revenues | 2,616 | 2 | 2,618 | ||||||||
Benefits and Expenses | |||||||||||
Interest sensitive contract benefits | 690 | (1 | ) | 689 | |||||||
Amortization of deferred sales inducements | 20 | 1 | 21 | ||||||||
Future policy and other policy benefits | 517 | 1 | 518 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 203 | 3 | 206 | ||||||||
Total benefits and expenses | 2,024 | 4 | 2,028 | ||||||||
Income before income taxes | 592 | (2 | ) | 590 | |||||||
Income tax expense (benefit) | 14 | (2 | ) | 12 | |||||||
Net income | 578 | — | 578 | ||||||||
Less: Net income attributable to noncontrolling interests | 16 | — | 16 | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ | 562 | $ | — | $ | 562 | |||||
Earnings per share | |||||||||||
Basic – Classes A and B | $ | 3.21 | $ | — | $ | 3.21 | |||||
Diluted – Class A | 3.21 | — | 3.21 | ||||||||
Diluted – Class B | 3.21 | — | 3.21 | ||||||||
Year ended December 31, 2014 | |||||||||||
(In millions, except per share data) | As Previously Reported | Revisions | As Adjusted | ||||||||
Revenue | |||||||||||
Investment related gains (losses) | $ | 1,210 | $ | 1 | $ | 1,211 | |||||
Total revenues | 4,100 | 1 | 4,101 | ||||||||
Benefits and Expenses | |||||||||||
Future policy and other policy benefits | 696 | 4 | 700 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 119 | 5 | 124 | ||||||||
Total benefits and expenses | 3,568 | 9 | 3,577 | ||||||||
Income before income taxes | 532 | (8 | ) | 524 | |||||||
Income tax expense (benefit) | 54 | (1 | ) | 53 | |||||||
Net income | 478 | (7 | ) | 471 | |||||||
Less: Net income attributable to noncontrolling interests | 15 | — | 15 | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ | 463 | $ | (7 | ) | $ | 456 | ||||
Earnings per share | |||||||||||
Basic – Classes A and B | $ | 3.58 | $ | (0.06 | ) | $ | 3.52 | ||||
Diluted – Class A | 3.52 | (0.05 | ) | 3.47 | |||||||
Diluted – Class B | 3.52 | (0.05 | ) | 3.47 | |||||||
Year ended December 31, 2016 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 805 | $ | (37 | ) | $ | 768 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of deferred acquisition costs and value of business acquired | 304 | 14 | 318 | ||||||||
Amortization of deferred sales inducements | 40 | (1 | ) | 39 | |||||||
Stock-based compensation | 81 | 3 | 84 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Interest sensitive contract liabilities | 918 | 7 | 925 | ||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 328 | 16 | 344 | ||||||||
Other assets and liabilities | (20 | ) | (2 | ) | (22 | ) | |||||
Net cash provided by operating activities | 1,199 | — | 1,199 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash used in investing activities | (2,602 | ) | — | (2,602 | ) | ||||||
Cash flows from financing activities | |||||||||||
Net cash provided by financing activities | 1,155 | — | 1,155 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (13 | ) | — | (13 | ) | ||||||
Net decrease in cash and cash equivalents | (261 | ) | — | (261 | ) | ||||||
Cash and cash equivalents at beginning of year1 | 2,720 | — | 2,720 | ||||||||
Cash and cash equivalents at end of year1 | $ | 2,459 | $ | — | $ | 2,459 | |||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
Year ended December 31, 2015 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 578 | $ | — | $ | 578 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of deferred acquisition costs and value of business acquired | 203 | 3 | 206 | ||||||||
Amortization of deferred sales inducements | 20 | 1 | 21 | ||||||||
Deferred income tax expense | 33 | (2 | ) | 31 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Interest sensitive contract liabilities | 879 | (5 | ) | 874 | |||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | (574 | ) | 1 | (573 | ) | ||||||
Other assets and liabilities | (58 | ) | 2 | (56 | ) | ||||||
Net cash provided by operating activities | 1,049 | — | 1,049 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash used in investing activities | (52 | ) | — | (52 | ) | ||||||
Cash flows from financing activities | |||||||||||
Other financing activities, net | 21 | (33 | ) | (12 | ) | ||||||
Net cash used in financing activities | (911 | ) | (33 | ) | (944 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (4 | ) | — | (4 | ) | ||||||
Net increase in cash and cash equivalents | 82 | (33 | ) | 49 | |||||||
Cash and cash equivalents at beginning of year1 | 2,638 | 33 | 2,671 | ||||||||
Cash and cash equivalents at end of year1 | $ | 2,720 | $ | — | $ | 2,720 | |||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
Year ended December 31, 2014 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 478 | $ | (7 | ) | $ | 471 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of deferred acquisition costs and value of business acquired | 119 | 5 | 124 | ||||||||
Deferred income tax expense | 138 | (1 | ) | 137 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | (702 | ) | 4 | (698 | ) | ||||||
Funds withheld assets and liabilities | — | (1 | ) | (1 | ) | ||||||
Net cash provided by operating activities | 599 | — | 599 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash provided by investing activities | 1,332 | — | 1,332 | ||||||||
Cash flows from financing activities | |||||||||||
Other financing activities, net | 42 | 33 | 75 | ||||||||
Net cash used in financing activities | (2,328 | ) | 33 | (2,295 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | ||||||||
Net decrease in cash and cash equivalents | (397 | ) | 33 | (364 | ) | ||||||
Cash and cash equivalents at beginning of year1 | 3,035 | — | 3,035 | ||||||||
Cash and cash equivalents at end of year1 | $ | 2,638 | $ | 33 | $ | 2,671 | |||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
• | the present value of expected future cash flows discounted at the loan's original effective interest rate; |
• | the value of the loan's collateral if it is in the process of foreclosure or otherwise collateral dependent; or |
• | the loan's fair value if the loan is being sold. |
December 31, 2016 | |||||||||||||||||||
(In millions) | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI | ||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 59 | $ | 1 | $ | — | $ | 60 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,024 | 117 | (1 | ) | 1,140 | — | |||||||||||||
Foreign governments | 2,098 | 143 | (6 | ) | 2,235 | — | |||||||||||||
Corporate | 29,433 | 901 | (314 | ) | 30,020 | 2 | |||||||||||||
CLO | 4,950 | 14 | (142 | ) | 4,822 | — | |||||||||||||
ABS | 2,980 | 25 | (69 | ) | 2,936 | — | |||||||||||||
CMBS | 1,835 | 38 | (26 | ) | 1,847 | — | |||||||||||||
RMBS | 8,731 | 313 | (71 | ) | 8,973 | 15 | |||||||||||||
Total fixed maturity securities | 51,110 | 1,552 | (629 | ) | 52,033 | 17 | |||||||||||||
Equity securities | 319 | 35 | (1 | ) | 353 | — | |||||||||||||
Total AFS securities | 51,429 | 1,587 | (630 | ) | 52,386 | 17 | |||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||
CLO | 284 | 1 | (6 | ) | 279 | — | |||||||||||||
ABS | 57 | — | (1 | ) | 56 | — | |||||||||||||
Total fixed maturity securities – related party | 341 | 1 | (7 | ) | 335 | — | |||||||||||||
Equity securities – related party | 20 | — | — | 20 | — | ||||||||||||||
Total AFS securities – related party | 361 | 1 | (7 | ) | 355 | — | |||||||||||||
Total AFS securities including related party | $ | 51,790 | $ | 1,588 | $ | (637 | ) | $ | 52,741 | $ | 17 |
December 31, 2015 | |||||||||||||||||||
(In millions) | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI | ||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 44 | $ | 1 | $ | — | $ | 45 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,075 | 100 | (10 | ) | 1,165 | 7 | |||||||||||||
Foreign governments | 2,467 | 17 | (20 | ) | 2,464 | — | |||||||||||||
Corporate | 26,979 | 523 | (566 | ) | 26,936 | 2 | |||||||||||||
CLO | 4,943 | 4 | (392 | ) | 4,555 | — | |||||||||||||
ABS | 2,944 | 33 | (59 | ) | 2,918 | — | |||||||||||||
CMBS | 1,725 | 33 | (20 | ) | 1,738 | — | |||||||||||||
RMBS | 8,050 | 128 | (183 | ) | 7,995 | 6 | |||||||||||||
Total fixed maturity securities | 48,227 | 839 | (1,250 | ) | 47,816 | 15 | |||||||||||||
Equity securities | 367 | 40 | — | 407 | — | ||||||||||||||
Total AFS securities | 48,594 | 879 | (1,250 | ) | 48,223 | 15 | |||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||
CLO | 271 | — | (23 | ) | 248 | — | |||||||||||||
ABS | 61 | — | (1 | ) | 60 | — | |||||||||||||
Total AFS securities – related party | 332 | — | (24 | ) | 308 | — | |||||||||||||
Total AFS securities including related party | $ | 48,926 | $ | 879 | $ | (1,274 | ) | $ | 48,531 | $ | 15 |
December 31, 2016 | |||||||
(In millions) | Amortized Cost | Fair Value | |||||
Due in one year or less | $ | 831 | $ | 835 | |||
Due after one year through five years | 6,958 | 7,092 | |||||
Due after five years through ten years | 11,299 | 11,520 | |||||
Due after ten years | 13,526 | 14,008 | |||||
CLO, ABS, CMBS and RMBS | 18,496 | 18,578 | |||||
Total AFS fixed maturity securities | 51,110 | 52,033 | |||||
Fixed maturity securities – related party, CLO and ABS | 341 | 335 | |||||
Total AFS fixed maturity securities including related party | $ | 51,451 | $ | 52,368 |
December 31, 2016 | |||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||
(In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. government and agencies | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | — | |||||||||||
U.S. state, municipal and political subdivisions | 85 | (1 | ) | 2 | — | 87 | (1 | ) | |||||||||||||||
Foreign governments | 137 | (5 | ) | 9 | (1 | ) | 146 | (6 | ) | ||||||||||||||
Corporate | 6,136 | (228 | ) | 1,113 | (86 | ) | 7,249 | (314 | ) | ||||||||||||||
CLO | 388 | (2 | ) | 3,102 | (140 | ) | 3,490 | (142 | ) | ||||||||||||||
ABS | 865 | (17 | ) | 767 | (52 | ) | 1,632 | (69 | ) | ||||||||||||||
CMBS | 576 | (18 | ) | 183 | (8 | ) | 759 | (26 | ) | ||||||||||||||
RMBS | 1,143 | (19 | ) | 1,727 | (52 | ) | 2,870 | (71 | ) | ||||||||||||||
Total fixed maturity securities | 9,331 | (290 | ) | 6,903 | (339 | ) | 16,234 | (629 | ) | ||||||||||||||
Equity securities | 179 | (1 | ) | — | — | 179 | (1 | ) | |||||||||||||||
Total AFS securities | 9,510 | (291 | ) | 6,903 | (339 | ) | 16,413 | (630 | ) | ||||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||||||
CLO | 68 | — | 100 | (6 | ) | 168 | (6 | ) | |||||||||||||||
ABS | — | — | 56 | (1 | ) | 56 | (1 | ) | |||||||||||||||
Total fixed maturity securities – related party | 68 | — | 156 | (7 | ) | 224 | (7 | ) | |||||||||||||||
Equity securities – related party | 14 | — | — | — | 14 | — | |||||||||||||||||
Total AFS securities – related party | 82 | — | 156 | (7 | ) | 238 | (7 | ) | |||||||||||||||
Total AFS securities including related party | $ | 9,592 | $ | (291 | ) | $ | 7,059 | $ | (346 | ) | $ | 16,651 | $ | (637 | ) |
December 31, 2015 | |||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||
(In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. government and agencies | $ | 4 | $ | — | $ | 2 | $ | — | $ | 6 | $ | — | |||||||||||
U.S. state, municipal and political subdivisions | 63 | (9 | ) | 8 | (1 | ) | 71 | (10 | ) | ||||||||||||||
Foreign governments | 711 | (20 | ) | — | — | 711 | (20 | ) | |||||||||||||||
Corporate | 7,810 | (450 | ) | 554 | (116 | ) | 8,364 | (566 | ) | ||||||||||||||
CLO | 2,934 | (169 | ) | 1,555 | (223 | ) | 4,489 | (392 | ) | ||||||||||||||
ABS | 1,484 | (37 | ) | 371 | (22 | ) | 1,855 | (59 | ) | ||||||||||||||
CMBS | 577 | (11 | ) | 119 | (9 | ) | 696 | (20 | ) | ||||||||||||||
RMBS | 4,672 | (128 | ) | 995 | (55 | ) | 5,667 | (183 | ) | ||||||||||||||
Total AFS securities | 18,255 | (824 | ) | 3,604 | (426 | ) | 21,859 | (1,250 | ) | ||||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||||||
CLO | 139 | (14 | ) | 72 | (9 | ) | 211 | (23 | ) | ||||||||||||||
ABS | 60 | (1 | ) | — | — | 60 | (1 | ) | |||||||||||||||
Total AFS securities – related party | 199 | (15 | ) | 72 | (9 | ) | 271 | (24 | ) | ||||||||||||||
Total AFS securities including related party | $ | 18,454 | $ | (839 | ) | $ | 3,676 | $ | (435 | ) | $ | 22,130 | $ | (1,274 | ) |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Beginning balance | $ | 22 | $ | 8 | $ | 3 | |||||
Initial impairments – credit loss OTTI recognized on securities not previously impaired | 8 | 19 | 3 | ||||||||
Additional impairments – credit loss OTTI recognized on securities previously impaired | 3 | 1 | 2 | ||||||||
Reduction in impairments from securities sold | (9 | ) | (2 | ) | — | ||||||
Reduction for credit loss that no longer has a portion of the OTTI loss recognized in AOCI | (8 | ) | (4 | ) | — | ||||||
Ending balance | $ | 16 | $ | 22 | $ | 8 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
AFS securities | |||||||||||
Fixed maturity securities | $ | 2,293 | $ | 2,051 | $ | 1,868 | |||||
Equity securities | 9 | 7 | 6 | ||||||||
Trading securities | 238 | 196 | 136 | ||||||||
Mortgage loans, net of allowances | 355 | 320 | 347 | ||||||||
Investment funds | 178 | 111 | 177 | ||||||||
Funds withheld at interest | 82 | 54 | 46 | ||||||||
Other | 62 | 44 | 24 | ||||||||
Investment revenue | 3,217 | 2,783 | 2,604 | ||||||||
Investment expenses | (303 | ) | (273 | ) | (271 | ) | |||||
Net investment income | $ | 2,914 | $ | 2,510 | $ | 2,333 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
AFS fixed maturity securities | |||||||||||
Gross realized gain on investment activity | $ | 138 | $ | 150 | $ | 203 | |||||
Gross realized loss on investment activity | (54 | ) | (86 | ) | (22 | ) | |||||
Net realized investment gains on fixed maturity securities | 84 | 64 | 181 | ||||||||
Net realized investment gains (losses) on trading securities | (33 | ) | (228 | ) | 242 | ||||||
Derivative gains (losses) | 596 | (277 | ) | 793 | |||||||
Other gains (losses) | 5 | 11 | (5 | ) | |||||||
Investment related gains (losses) | $ | 652 | $ | (430 | ) | $ | 1,211 |
December 31, | |||||||||||
2016 | 2015 | 2016 | |||||||||
(In millions) | Fixed maturity securities | Mortgage loans3 | |||||||||
Contractually required payments1 | $ | 7,761 | $ | 7,291 | $ | 424 | |||||
Less: Cash flows expected to be collected2 | (5,285 | ) | (4,986 | ) | (286 | ) | |||||
Non-accretable difference | $ | 2,476 | $ | 2,305 | $ | 138 | |||||
Cash flows expected to be collected | $ | 5,285 | $ | 4,986 | $ | 286 | |||||
Less: Amortized cost | (3,892 | ) | (3,673 | ) | (220 | ) | |||||
Accretable difference | $ | 1,393 | $ | 1,313 | $ | 66 | |||||
Fair value | $ | 4,029 | $ | 3,647 | $ | 221 | |||||
1 Includes principal and accrued interest. | |||||||||||
2 Represents the acquisition date undiscounted principal and interest cash flows expected. | |||||||||||
3 As of December 31, 2015, we did not hold any investments in PCI mortgage loans. |
December 31, | |||||||||||
2016 | 2015 | 2016 | |||||||||
(In millions) | Fixed maturity securities | Mortgage loans1 | |||||||||
Contractually required principal and interest | $ | 1,631 | $ | 1,999 | $ | 425 | |||||
Expected cash flows | 1,027 | 1,277 | 287 | ||||||||
Estimated fair value | 761 | 937 | 221 | ||||||||
1 As of December 31, 2015, we did not hold any investments in PCI mortgage loans. |
2016 | 2015 | 2016 | |||||||||
(In millions) | Fixed maturity securities | Mortgage loans1 | |||||||||
Beginning balance at January 1 | $ | 1,313 | $ | 1,330 | $ | — | |||||
Purchases of PCI investments, net of sales | 231 | 243 | 66 | ||||||||
Accretion | (112 | ) | (113 | ) | (1 | ) | |||||
Changes in expected cash flows | (39 | ) | (147 | ) | 1 | ||||||
Ending balance at December 31 | $ | 1,393 | $ | 1,313 | $ | 66 | |||||
1 During the year ended December 31, 2015, we did not hold any investments in PCI mortgage loans. |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Commercial mortgage loans | $ | 5,058 | $ | 5,178 | |||
Commercial mortgage loans under development | 74 | 222 | |||||
Total commercial mortgage loans | 5,132 | 5,400 | |||||
Residential mortgage loans | 338 | 100 | |||||
Mortgage loans, net of allowances | $ | 5,470 | $ | 5,500 |
December 31, | |||||||||||||
2016 | 2015 | ||||||||||||
(In millions, except for percentages) | Net Carrying Value | Percentage of Total | Net Carrying Value | Percentage of Total | |||||||||
Property type | |||||||||||||
Hotels | $ | 1,025 | 20.0 | % | $ | 877 | 16.2 | % | |||||
Retail | 1,135 | 22.1 | % | 1,230 | 22.8 | % | |||||||
Office building | 1,217 | 23.7 | % | 1,274 | 23.6 | % | |||||||
Industrial | 742 | 14.5 | % | 821 | 15.2 | % | |||||||
Apartment | 616 | 12.0 | % | 907 | 16.8 | % | |||||||
Other commercial | 397 | 7.7 | % | 291 | 5.4 | % | |||||||
Total commercial mortgage loans | $ | 5,132 | 100.0 | % | $ | 5,400 | 100.0 | % | |||||
U.S. Region | |||||||||||||
East North Central | $ | 450 | 8.8 | % | $ | 443 | 8.2 | % | |||||
East South Central | 158 | 3.1 | % | 129 | 2.4 | % | |||||||
Middle Atlantic | 628 | 12.2 | % | 804 | 14.9 | % | |||||||
Mountain | 543 | 10.6 | % | 583 | 10.8 | % | |||||||
New England | 194 | 3.8 | % | 181 | 3.3 | % | |||||||
Pacific | 833 | 16.2 | % | 838 | 15.5 | % | |||||||
South Atlantic | 1,284 | 25.0 | % | 1,231 | 22.8 | % | |||||||
West North Central | 306 | 6.0 | % | 291 | 5.4 | % | |||||||
West South Central | 662 | 12.9 | % | 792 | 14.7 | % | |||||||
Total U.S. Region | 5,058 | 98.6 | % | 5,292 | 98.0 | % | |||||||
International Region | 74 | 1.4 | % | 108 | 2.0 | % | |||||||
Total commercial mortgage loans | $ | 5,132 | 100.0 | % | $ | 5,400 | 100.0 | % |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Current (less than 30 days past due) | $ | 5,111 | $ | 5,360 | |||
30 to 60 days past due | — | 1 | |||||
Over 90 days past due | 21 | 39 | |||||
Total commercial mortgage loans | $ | 5,132 | $ | 5,400 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Less than 50% | $ | 1,787 | $ | 2,087 | |||
50% to 60% | 1,337 | 1,024 | |||||
61% to 70% | 1,401 | 1,299 | |||||
71% to 100% | 492 | 697 | |||||
Greater than 100% | 41 | 71 | |||||
Commercial mortgage loans | $ | 5,058 | $ | 5,178 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Greater than 1.20x | $ | 4,378 | $ | 4,455 | |||
1.00x – 1.20x | 353 | 471 | |||||
Less than 1.00x | 327 | 252 | |||||
Commercial mortgage loans | $ | 5,058 | $ | 5,178 |
December 31, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||
(In millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Derivatives designated as hedges | |||||||||||||||||||||
Foreign currency swaps | 289 | $ | 11 | $ | 4 | 177 | $ | 14 | $ | — | |||||||||||
Interest rate swaps | 302 | — | 14 | — | — | — | |||||||||||||||
Total derivatives designated as hedges | 11 | 18 | 14 | — | |||||||||||||||||
Derivatives not designated as hedges | |||||||||||||||||||||
Equity options | 26,822 | 1,336 | — | 25,176 | 831 | — | |||||||||||||||
Futures | — | 9 | — | — | 9 | 1 | |||||||||||||||
Total return swaps | 41 | 2 | — | 54 | — | — | |||||||||||||||
Foreign currency swaps | 43 | 5 | — | 47 | 5 | — | |||||||||||||||
Interest rate swaps | 568 | 1 | 5 | 859 | 2 | 8 | |||||||||||||||
Credit default swaps | 10 | — | 7 | 10 | — | 7 | |||||||||||||||
Variance swaps | — | — | — | — | 5 | — | |||||||||||||||
Foreign currency forwards | 805 | 6 | 10 | 367 | 5 | 1 | |||||||||||||||
Embedded derivatives | |||||||||||||||||||||
Funds withheld | — | 140 | 6 | — | 36 | 35 | |||||||||||||||
Interest sensitive contract liabilities | — | — | 5,283 | — | — | 4,464 | |||||||||||||||
Total derivatives not designated as hedges | 1,499 | 5,311 | 893 | 4,516 | |||||||||||||||||
Total derivatives | $ | 1,510 | $ | 5,329 | $ | 907 | $ | 4,516 |
(In millions) | Year ended December 31, 2016 | ||
Loss recognized on derivative | $ | (14 | ) |
Gain recognized on hedged item | 14 | ||
Ineffectiveness recognized on fair value hedges | $ | — |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Equity options | $ | 325 | $ | (372 | ) | $ | 955 | ||||
Futures | (19 | ) | (3 | ) | 52 | ||||||
Total return swaps | 5 | — | 11 | ||||||||
Foreign currency swaps | 14 | 12 | 3 | ||||||||
Interest rate swaps | (1 | ) | (4 | ) | (4 | ) | |||||
Foreign currency forwards | (2 | ) | 21 | 21 | |||||||
Embedded derivatives on funds withheld | 274 | 69 | (245 | ) | |||||||
Amounts recognized in investment related gains (losses) | 596 | (277 | ) | 793 | |||||||
Embedded derivatives in indexed annuity products1 | (324 | ) | 171 | (976 | ) | ||||||
Total gains (losses) for derivatives not designated as hedges | $ | 272 | $ | (106 | ) | $ | (183 | ) | |||
1 Included in interest sensitive contract benefits. |
Gross amounts not offset on the consolidated balance sheets | |||||||||||||||||||||||
(In millions) | Gross amount recognized1 | Financial instruments2 | Collateral received/pledged | Net amount | Off-balance sheet securities collateral3 | Net amount after securities collateral | |||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Derivative assets | $ | 1,370 | $ | (8 | ) | $ | (1,383 | ) | $ | (21 | ) | $ | (26 | ) | $ | (47 | ) | ||||||
Derivative liabilities | (40 | ) | 8 | 25 | (7 | ) | — | (7 | ) | ||||||||||||||
December 31, 2015 | |||||||||||||||||||||||
Derivative assets | $ | 871 | $ | (7 | ) | $ | (867 | ) | $ | (3 | ) | $ | (57 | ) | $ | (60 | ) | ||||||
Derivative liabilities | (17 | ) | 7 | 9 | (1 | ) | — | (1 | ) | ||||||||||||||
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2016 and 2015, amounts that are not subject to master netting agreements or similar agreements were immaterial. | |||||||||||||||||||||||
2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated balance sheets. | |||||||||||||||||||||||
3 For securities collateral received, we do not have the right to sell or re-pledge the collateral. As such, we do not record the securities on the consolidated balance sheets. |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Fair value of derivative liabilities with credit related provisions | $ | 7 | $ | 7 | |||
Maximum exposure for credit default swaps | 10 | 10 |
December 31, 2016 | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets of consolidated variable interest entities | |||||||||||||||
Investments | |||||||||||||||
AFS securities | |||||||||||||||
Equity securities | $ | 161 | $ | 161 | $ | — | $ | — | |||||||
Trading securities | |||||||||||||||
Fixed maturity securities | 50 | — | — | 50 | |||||||||||
Equity securities | 117 | 74 | — | 43 | |||||||||||
Investment funds | 562 | — | — | 562 | |||||||||||
Cash and cash equivalents | 14 | 14 | — | — | |||||||||||
Total assets of consolidated VIEs measured at fair value | $ | 904 | $ | 249 | $ | — | $ | 655 |
December 31, 2015 | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets of consolidated variable interest entities | |||||||||||||||
Investments | |||||||||||||||
Trading securities | |||||||||||||||
Fixed maturity securities | $ | 722 | $ | — | $ | 669 | $ | 53 | |||||||
Equity securities | 309 | 271 | — | 38 | |||||||||||
Investment funds | 516 | — | — | 516 | |||||||||||
Cash and cash equivalents | 6 | 6 | — | — | |||||||||||
Total assets of consolidated VIEs measured at fair value | $ | 1,553 | $ | 277 | $ | 669 | $ | 607 |
Year ended December 31, 2016 | |||||||||||||||||||||||||||||||
(In millions) | Beginning Balance | Total realized and unrealized gains (losses) included in income | Purchases/Borrowings | Sales/Repayments | Transfers in (out)2 | Other | Ending Balance | Total gains (losses) included in earnings1 | |||||||||||||||||||||||
Assets of consolidated variable interest entities | |||||||||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 53 | $ | (1 | ) | $ | — | $ | (2 | ) | $ | — | $ | — | $ | 50 | $ | (1 | ) | ||||||||||||
Equity securities | 38 | 3 | 2 | — | — | — | 43 | 3 | |||||||||||||||||||||||
Investment funds | 516 | 49 | 17 | (20 | ) | — | — | 562 | 49 | ||||||||||||||||||||||
Total Level 3 assets of consolidated VIEs | $ | 607 | $ | 51 | $ | 19 | $ | (22 | ) | $ | — | $ | — | $ | 655 | $ | 51 | ||||||||||||||
1 Related to instruments held at end of period. | |||||||||||||||||||||||||||||||
2 See discussion of transfer out of Level 3 in the description of significant unobservable inputs below. |
Year ended December 31, 2015 | |||||||||||||||||||||||||||||||
(In millions) | Beginning Balance | Total realized and unrealized gains (losses) included in income | Purchases/Borrowings | Sales/Repayments | Transfers in (out) | Other2 | Ending Balance | Total gains (losses) included in earnings1 | |||||||||||||||||||||||
Assets of consolidated variable interest entities | |||||||||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 57 | $ | (6 | ) | $ | 2 | $ | — | $ | — | $ | — | $ | 53 | $ | (6 | ) | |||||||||||||
Equity securities | 62 | (15 | ) | — | — | — | (9 | ) | 38 | (15 | ) | ||||||||||||||||||||
Investment funds | 40 | 3 | 15 | (15 | ) | — | 473 | 516 | (7 | ) | |||||||||||||||||||||
Loans held for investment | 2,071 | — | — | — | — | (2,071 | ) | — | — | ||||||||||||||||||||||
Total Level 3 assets of consolidated VIEs | $ | 2,230 | $ | (18 | ) | $ | 17 | $ | (15 | ) | $ | — | $ | (1,607 | ) | $ | 607 | $ | (28 | ) | |||||||||||
Liabilities of consolidated variable interest entities | |||||||||||||||||||||||||||||||
Borrowings | $ | (1,517 | ) | $ | — | $ | — | $ | — | $ | — | $ | 1,517 | $ | — | $ | — | ||||||||||||||
Total Level 3 liabilities of consolidated VIEs | $ | (1,517 | ) | $ | — | $ | — | $ | — | $ | — | $ | 1,517 | $ | — | $ | — | ||||||||||||||
1 Related to instruments held at end of period. | |||||||||||||||||||||||||||||||
2 Other activity primarily relates to the deconsolidation of MidCap Financial and its restructuring into MidCap. |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Trading securities | |||||||||||
Fixed maturity securities | $ | (1 | ) | $ | (5 | ) | $ | (2 | ) | ||
Equity securities | (78 | ) | (4 | ) | 27 | ||||||
Investment funds | 49 | 12 | 20 | ||||||||
Loans held for investment | — | — | 4 | ||||||||
Total gains (losses) | $ | (30 | ) | $ | 3 | $ | 49 |
December 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
(In millions) | Carrying Value | Maximum Loss Exposure | Carrying Value | Maximum Loss Exposure | |||||||||||
Investment funds | $ | 689 | $ | 1,026 | $ | 733 | $ | 878 | |||||||
Investment in related parties – investment funds | 1,198 | 1,485 | 997 | 1,454 | |||||||||||
Assets of consolidated variable interest entities – investment funds | 573 | 593 | 534 | 558 | |||||||||||
Investment in fixed maturity securities | 19,171 | 19,090 | 17,673 | 18,129 | |||||||||||
Investment in related parties – fixed maturity securities | 530 | 536 | 525 | 549 | |||||||||||
Total non-consolidated VIEs | $ | 22,161 | $ | 22,730 | $ | 20,462 | $ | 21,568 |
December 31, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(In millions, except for percentages and years) | Carrying value | Percent of total | Life of underlying funds in years | Carrying value | Percent of total | Life of underlying funds in years | |||||||||||||||
Investment funds | |||||||||||||||||||||
Private equity | $ | 268 | 38.9 | % | 0 | – | 7 | $ | 263 | 35.9 | % | 0 | – | 7 | |||||||
Mortgage and real estate | 118 | 17.2 | % | 0 | – | 4 | 101 | 13.8 | % | 0 | – | 7 | |||||||||
Natural resources | 5 | 0.7 | % | 1 | – | 2 | 6 | 0.8 | % | 0 | – | 1 | |||||||||
Hedge funds | 72 | 10.4 | % | 0 | – | 3 | 86 | 11.7 | % | 0 | – | 4 | |||||||||
Credit funds | 226 | 32.8 | % | 0 | – | 5 | 277 | 37.8 | % | 0 | – | 5 | |||||||||
Total investment funds | 689 | 100.0 | % | 733 | 100.0 | % | |||||||||||||||
Investment funds – related parties | |||||||||||||||||||||
Private equity – A-A Mortgage1 | 343 | 28.6 | % | 3 | – | 3 | 225 | 22.6 | % | 6 | – | 7 | |||||||||
Private equity – other | 131 | 11.0 | % | 0 | – | 10 | 36 | 3.6 | % | 6 | – | 7 | |||||||||
Mortgage and real estate | 247 | 20.6 | % | 1 | – | 4 | 234 | 23.5 | % | 0 | – | 7 | |||||||||
Natural resources | 49 | 4.1 | % | 5 | – | 5 | 46 | 4.6 | % | 3 | – | 7 | |||||||||
Hedge funds | 192 | 16.0 | % | 9 | – | 9 | 256 | 25.6 | % | 0 | – | 1 | |||||||||
Credit funds | 236 | 19.7 | % | 2 | – | 3 | 200 | 20.1 | % | 3 | – | 10 | |||||||||
Total investment funds – related parties | 1,198 | 100.0 | % | 997 | 100.0 | % | |||||||||||||||
Investment funds owned by consolidated VIEs | |||||||||||||||||||||
Private equity – MidCap2 | 524 | 91.4 | % | N/A | 482 | 90.3 | % | N/A | |||||||||||||
Credit funds | 38 | 6.7 | % | 0 | – | 3 | 34 | 6.3 | % | 0 | – | 4 | |||||||||
Mortgage and real assets | 11 | 1.9 | % | 2 | – | 3 | 18 | 3.4 | % | 3 | – | 4 | |||||||||
Total investment funds owned by consolidated VIEs | 573 | 100.0 | % | 534 | 100.0 | % | |||||||||||||||
Total investment funds including related parties and funds owned by consolidated VIEs | $ | 2,460 | $ | 2,264 | |||||||||||||||||
1 A-A Mortgage Opportunities, LP (A-A Mortgage) is a platform to originate residential mortgage loans and mortgage servicing rights. | |||||||||||||||||||||
2 Our total investment in MidCap, including amounts advanced under credit facilities, totaled $761 million and $782 million as of December 31, 2016 and 2015, respectively, which is greater than 10% of total AHL shareholders' equity at the respective period end dates. |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Assets | $ | 40,120 | $ | 52,637 | |||
Liabilities | 5,886 | 7,167 | |||||
Equity | 34,234 | 45,470 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Net income | $ | 1,686 | $ | 5,966 | $ | 8,418 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Ownership Percentage | |||||||
100% | $ | 27 | $ | 49 | |||
50% – 99% | 478 | 322 | |||||
Greater than 3% – 49% | 1,294 | 1,225 | |||||
Equity method investment funds | $ | 1,799 | $ | 1,596 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Ownership Percentage | |||||||
Greater than 3% – 49% | $ | 562 | $ | 516 | |||
3% or less | 99 | 152 | |||||
Fair value option investment funds | $ | 661 | $ | 668 |
• | Quoted prices for similar assets or liabilities in active markets, |
• | Observable inputs other than quoted market prices, and |
• | Observable inputs derived principally from market data through correlation or other means. |
December 31, 2016 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 60 | $ | — | $ | 29 | $ | 31 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,140 | — | — | 1,135 | 5 | ||||||||||||||
Foreign governments | 2,235 | — | — | 2,221 | 14 | ||||||||||||||
Corporate | 30,020 | — | — | 29,650 | 370 | ||||||||||||||
CLO | 4,822 | — | — | 4,664 | 158 | ||||||||||||||
ABS | 2,936 | — | — | 1,776 | 1,160 | ||||||||||||||
CMBS | 1,847 | — | — | 1,695 | 152 | ||||||||||||||
RMBS | 8,973 | — | — | 8,956 | 17 | ||||||||||||||
Total AFS fixed maturity securities | 52,033 | — | 29 | 50,128 | 1,876 | ||||||||||||||
Equity securities | 353 | — | 79 | 269 | 5 | ||||||||||||||
Total AFS securities | 52,386 | — | 108 | 50,397 | 1,881 | ||||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | 3 | — | 3 | — | — | ||||||||||||||
U.S. state, municipal and political subdivisions | 137 | — | — | 120 | 17 | ||||||||||||||
Corporate | 1,423 | — | — | 1,423 | — | ||||||||||||||
CLO | 43 | — | — | — | 43 | ||||||||||||||
ABS | 82 | — | — | 82 | — | ||||||||||||||
CMBS | 81 | — | — | 81 | — | ||||||||||||||
RMBS | 387 | — | — | 291 | 96 | ||||||||||||||
Total trading fixed maturity securities | 2,156 | — | 3 | 1,997 | 156 | ||||||||||||||
Equity securities | 425 | — | — | 425 | — | ||||||||||||||
Total trading securities | 2,581 | — | 3 | 2,422 | 156 | ||||||||||||||
Mortgage loans | 44 | — | — | — | 44 | ||||||||||||||
Investment funds | 99 | 99 | — | — | — | ||||||||||||||
Funds withheld at interest – embedded derivative | 140 | — | — | — | 140 | ||||||||||||||
Derivative assets | 1,370 | — | 9 | 1,361 | — | ||||||||||||||
Short-term investments | 189 | — | 19 | 170 | — | ||||||||||||||
Cash and cash equivalents | 2,445 | — | 2,445 | — | — | ||||||||||||||
Restricted cash | 57 | — | 57 | — | — | ||||||||||||||
Investments in related parties | |||||||||||||||||||
AFS, fixed maturity securities | |||||||||||||||||||
CLO | 279 | — | — | 279 | — | ||||||||||||||
ABS | 56 | — | — | — | 56 | ||||||||||||||
Total AFS fixed maturity securities | 335 | — | — | 279 | 56 | ||||||||||||||
AFS, equity securities | 20 | — | 20 | — | — | ||||||||||||||
Total AFS securities – related party | 355 | — | 20 | 279 | 56 | ||||||||||||||
Trading securities, CLO | 195 | — | — | — | 195 | ||||||||||||||
Reinsurance recoverable | 1,692 | — | — | — | 1,692 | ||||||||||||||
Total assets measured at fair value | $ | 61,553 | $ | 99 | $ | 2,661 | $ | 54,629 | $ | 4,164 | |||||||||
(Continued) |
December 31, 2016 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | 5,283 | $ | — | $ | — | $ | — | $ | 5,283 | |||||||||
Universal life benefits | 883 | — | — | — | 883 | ||||||||||||||
Unit-linked contracts | 408 | — | — | 408 | — | ||||||||||||||
Future policy benefits | |||||||||||||||||||
AmerUs Closed Block | 1,606 | — | — | — | 1,606 | ||||||||||||||
ILICO Closed Block and life benefits | 794 | — | — | — | 794 | ||||||||||||||
Derivative liabilities | 40 | — | — | 33 | 7 | ||||||||||||||
Funds withheld liability – embedded derivative | 6 | — | — | 6 | — | ||||||||||||||
Total liabilities measured at fair value | $ | 9,020 | $ | — | $ | — | $ | 447 | $ | 8,573 | |||||||||
1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. | |||||||||||||||||||
(Concluded) |
December 31, 2015 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 45 | $ | — | $ | 41 | $ | 4 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,165 | — | — | 1,165 | — | ||||||||||||||
Foreign governments | 2,464 | — | — | 2,447 | 17 | ||||||||||||||
Corporate | 26,936 | — | — | 26,300 | 636 | ||||||||||||||
CLO | 4,555 | — | — | 4,038 | 517 | ||||||||||||||
ABS | 2,918 | — | — | 1,105 | 1,813 | ||||||||||||||
CMBS | 1,738 | — | — | 1,671 | 67 | ||||||||||||||
RMBS | 7,995 | — | — | 7,237 | 758 | ||||||||||||||
Total AFS fixed maturity securities | 47,816 | — | 41 | 43,967 | 3,808 | ||||||||||||||
Equity securities | 407 | — | 82 | 316 | 9 | ||||||||||||||
Total AFS securities | 48,223 | — | 123 | 44,283 | 3,817 | ||||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | 1 | — | 1 | — | — | ||||||||||||||
U.S. state, municipal and political subdivisions | 133 | — | — | 116 | 17 | ||||||||||||||
Corporate | 1,450 | — | — | 1,434 | 16 | ||||||||||||||
CLO | 108 | — | — | — | 108 | ||||||||||||||
ABS | 98 | — | — | — | 98 | ||||||||||||||
CMBS | 99 | — | — | 99 | — | ||||||||||||||
RMBS | 161 | — | — | 132 | 29 | ||||||||||||||
Total trading fixed maturity securities | 2,050 | — | 1 | 1,781 | 268 | ||||||||||||||
Equity securities | 418 | — | — | 418 | — | ||||||||||||||
Total trading securities | 2,468 | — | 1 | 2,199 | 268 | ||||||||||||||
(Continued) |
December 31, 2015 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mortgage loans | 48 | — | — | — | 48 | ||||||||||||||
Investment funds | 152 | 152 | — | — | — | ||||||||||||||
Funds withheld at interest – embedded derivative | 36 | — | — | — | 36 | ||||||||||||||
Derivative assets | 871 | — | 9 | 862 | — | ||||||||||||||
Short-term investments | 135 | — | 4 | 131 | — | ||||||||||||||
Cash and cash equivalents | 2,714 | — | 2,714 | — | — | ||||||||||||||
Restricted cash | 116 | — | 116 | — | — | ||||||||||||||
Investments in related parties | |||||||||||||||||||
AFS, fixed maturity securities | |||||||||||||||||||
CLO | 248 | — | — | 241 | 7 | ||||||||||||||
ABS | 60 | — | — | — | 60 | ||||||||||||||
Total AFS securities – related party | 308 | — | — | 241 | 67 | ||||||||||||||
Trading securities, CLO | 217 | — | — | 26 | 191 | ||||||||||||||
Reinsurance recoverable | 2,377 | — | — | — | 2,377 | ||||||||||||||
Total assets measured at fair value | $ | 57,665 | $ | 152 | $ | 2,967 | $ | 47,742 | $ | 6,804 | |||||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | 4,464 | $ | — | $ | — | $ | — | $ | 4,464 | |||||||||
Universal life benefits | 1,464 | — | — | — | 1,464 | ||||||||||||||
Unit-linked contracts | 418 | — | — | 418 | — | ||||||||||||||
Future policy benefits | |||||||||||||||||||
AmerUs Closed Block | 1,581 | — | — | — | 1,581 | ||||||||||||||
ILICO Closed Block and life benefits | 897 | — | — | — | 897 | ||||||||||||||
Derivative liabilities | 17 | — | 1 | 9 | 7 | ||||||||||||||
Funds withheld liability – embedded derivative | 35 | — | — | 35 | — | ||||||||||||||
Total liabilities measured at fair value | $ | 8,876 | $ | — | $ | 1 | $ | 462 | $ | 8,413 | |||||||||
1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. | |||||||||||||||||||
(Concluded) |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Trading securities | $ | (33 | ) | $ | (313 | ) | $ | 254 | |||
Mortgage loans | — | — | 5 | ||||||||
Investment funds | 5 | (8 | ) | 31 | |||||||
Future policy benefits | (25 | ) | 134 | (102 | ) | ||||||
Total gains (losses) | $ | (53 | ) | $ | (187 | ) | $ | 188 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Unpaid principal balance | $ | 42 | $ | 46 | |||
Mark to fair value | 2 | 2 | |||||
Fair value | $ | 44 | $ | 48 |
Year ended December 31, 2016 | |||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | Transfers | ||||||||||||||||||||||||||||||||||
(In millions) | Beginning Balance | Included in income | Included in OCI | Purchases, issuances, sales and settlements, net | In | (Out) | Other | Ending Balance | Total gains (losses) included in earnings1 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | $ | — | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | 5 | $ | — | |||||||||||||||||
Foreign governments | 17 | — | (1 | ) | (2 | ) | — | — | — | 14 | — | ||||||||||||||||||||||||
Corporate | 636 | — | 20 | (36 | ) | — | (250 | ) | — | 370 | — | ||||||||||||||||||||||||
CLO | 517 | 4 | 55 | (46 | ) | 72 | (444 | ) | — | 158 | — | ||||||||||||||||||||||||
ABS | 1,813 | 81 | (12 | ) | (635 | ) | 104 | (191 | ) | — | 1,160 | — | |||||||||||||||||||||||
CMBS | 67 | 1 | — | 39 | 91 | (46 | ) | — | 152 | — | |||||||||||||||||||||||||
RMBS | 758 | 3 | 19 | (297 | ) | — | (466 | ) | — | 17 | — | ||||||||||||||||||||||||
Equity securities | 9 | — | — | (4 | ) | — | — | — | 5 | — | |||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | 17 | — | — | — | — | — | — | 17 | — | ||||||||||||||||||||||||||
Corporate | 16 | — | — | (4 | ) | — | (12 | ) | — | — | 4 | ||||||||||||||||||||||||
CLO | 108 | (2 | ) | — | (63 | ) | — | — | — | 43 | 11 | ||||||||||||||||||||||||
ABS | 98 | (16 | ) | — | — | — | (82 | ) | — | — | — | ||||||||||||||||||||||||
RMBS | 29 | (23 | ) | — | 144 | — | (54 | ) | — | 96 | (9 | ) | |||||||||||||||||||||||
Mortgage loans | 48 | — | — | (4 | ) | — | — | — | 44 | — | |||||||||||||||||||||||||
Funds withheld at interest – embedded derivative | 36 | 104 | — | — | — | — | — | 140 | — | ||||||||||||||||||||||||||
Investments in related parties | |||||||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||||||
CLO | 7 | — | 1 | — | — | (8 | ) | — | — | — | |||||||||||||||||||||||||
ABS | 60 | — | — | (4 | ) | — | — | — | 56 | — | |||||||||||||||||||||||||
Trading securities, CLO | 191 | (33 | ) | — | 7 | 30 | — | — | 195 | 23 | |||||||||||||||||||||||||
Reinsurance recoverable | 2,377 | (685 | ) | — | — | — | — | — | 1,692 | — | |||||||||||||||||||||||||
Total Level 3 assets | $ | 6,804 | $ | (566 | ) | $ | 82 | $ | (905 | ) | $ | 302 | $ | (1,553 | ) | $ | — | $ | 4,164 | $ | 29 | ||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||||||
Embedded derivative | $ | (4,464 | ) | $ | (324 | ) | $ | — | $ | (495 | ) | $ | — | $ | — | $ | — | $ | (5,283 | ) | $ | — | |||||||||||||
Universal life liabilities | (1,464 | ) | 581 | — | — | — | — | — | (883 | ) | — | ||||||||||||||||||||||||
Future policy benefits | |||||||||||||||||||||||||||||||||||
AmerUs Closed Block | (1,581 | ) | (25 | ) | — | — | — | — | — | (1,606 | ) | — | |||||||||||||||||||||||
ILICO Closed Block and life benefits | (897 | ) | 103 | — | — | — | — | — | (794 | ) | — | ||||||||||||||||||||||||
Derivative liabilities | (7 | ) | — | — | — | — | — | — | (7 | ) | — | ||||||||||||||||||||||||
Total Level 3 liabilities | $ | (8,413 | ) | $ | 335 | $ | — | $ | (495 | ) | $ | — | $ | — | $ | — | $ | (8,573 | ) | $ | — | ||||||||||||||
1 Related to instruments held at end of period. |
Year ended December 31, 2015 | |||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | Transfers | ||||||||||||||||||||||||||||||||||
(In millions) | Beginning balance | Included in income | Included in OCI | Purchases, issuances, sales and settlements, net | In | Out | Other | Ending balance | Total gains (losses) included in earnings1 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | $ | 52 | $ | (1 | ) | $ | 1 | $ | (35 | ) | $ | — | $ | — | $ | (17 | ) | $ | — | $ | — | ||||||||||||||
Foreign governments | — | — | — | — | — | — | 17 | 17 | — | ||||||||||||||||||||||||||
Corporate | 208 | (1 | ) | (13 | ) | 230 | 225 | (13 | ) | — | 636 | — | |||||||||||||||||||||||
CLO | 182 | 3 | (9 | ) | 112 | 337 | (108 | ) | — | 517 | — | ||||||||||||||||||||||||
ABS | 924 | 18 | (35 | ) | 221 | 703 | (18 | ) | — | 1,813 | — | ||||||||||||||||||||||||
CMBS | 69 | 1 | (2 | ) | 23 | 23 | (47 | ) | — | 67 | — | ||||||||||||||||||||||||
RMBS | 654 | 11 | (15 | ) | (47 | ) | 155 | — | — | 758 | — | ||||||||||||||||||||||||
Equity securities | — | — | — | 10 | — | — | (1 | ) | 9 | — | |||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | — | — | — | — | 17 | — | — | 17 | — | ||||||||||||||||||||||||||
Corporate | — | — | — | — | 16 | — | — | 16 | — | ||||||||||||||||||||||||||
CLO | 146 | (16 | ) | — | (22 | ) | — | — | — | 108 | (15 | ) | |||||||||||||||||||||||
ABS | — | (2 | ) | — | 100 | — | — | — | 98 | (1 | ) | ||||||||||||||||||||||||
RMBS | — | (1 | ) | — | 30 | — | — | — | 29 | — | |||||||||||||||||||||||||
Mortgage loans | 73 | (3 | ) | — | (4 | ) | — | — | (18 | ) | 48 | (3 | ) | ||||||||||||||||||||||
Funds withheld at interest – embedded derivative | 127 | (91 | ) | — | — | — | — | — | 36 | — | |||||||||||||||||||||||||
Investments in related parties | |||||||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||||||
CLO | 15 | (1 | ) | (2 | ) | 1 | — | (6 | ) | — | 7 | — | |||||||||||||||||||||||
ABS | 66 | — | (1 | ) | (5 | ) | — | — | — | 60 | — | ||||||||||||||||||||||||
Trading securities, CLO | 268 | (29 | ) | — | (22 | ) | — | (26 | ) | — | 191 | (17 | ) | ||||||||||||||||||||||
Reinsurance recoverable | 2,460 | (83 | ) | — | — | — | — | — | 2,377 | — | |||||||||||||||||||||||||
Total Level 3 assets | $ | 5,244 | $ | (195 | ) | $ | (76 | ) | $ | 592 | $ | 1,476 | $ | (218 | ) | $ | (19 | ) | $ | 6,804 | $ | (36 | ) | ||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||||||
Embedded derivative | $ | (4,437 | ) | $ | 171 | $ | — | $ | (198 | ) | $ | — | $ | — | $ | — | $ | (4,464 | ) | $ | — | ||||||||||||||
Universal life liabilities | (1,417 | ) | (47 | ) | — | — | — | — | — | (1,464 | ) | — | |||||||||||||||||||||||
Future policy benefits | |||||||||||||||||||||||||||||||||||
AmerUs Closed Block | (1,715 | ) | 134 | — | — | — | — | — | (1,581 | ) | — | ||||||||||||||||||||||||
ILICO Closed Block and life benefits | (1,026 | ) | 129 | — | — | — | — | — | (897 | ) | — | ||||||||||||||||||||||||
Derivative liabilities | (8 | ) | 1 | — | — | — | — | — | (7 | ) | — | ||||||||||||||||||||||||
Total Level 3 liabilities | $ | (8,603 | ) | $ | 388 | $ | — | $ | (198 | ) | $ | — | $ | — | $ | — | $ | (8,413 | ) | $ | — | ||||||||||||||
1 Related to instruments held at end of period. |
Year ended December 31, 2016 | |||||||||||||||||||
(In millions) | Purchases | Issuances | Sales | Settlements | Purchases, issuances, sales and settlements, net | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
Foreign governments | $ | — | $ | — | $ | — | $ | (2 | ) | $ | (2 | ) | |||||||
Corporate | 95 | — | (68 | ) | (63 | ) | (36 | ) | |||||||||||
CLO | 24 | — | (29 | ) | (41 | ) | (46 | ) | |||||||||||
ABS | 261 | — | — | (896 | ) | (635 | ) | ||||||||||||
CMBS | 40 | — | — | (1 | ) | 39 | |||||||||||||
RMBS | 8 | — | — | (305 | ) | (297 | ) | ||||||||||||
Equity securities | — | — | (4 | ) | — | (4 | ) | ||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
Corporate | — | — | — | (4 | ) | (4 | ) | ||||||||||||
CLO | 4 | — | (67 | ) | — | (63 | ) | ||||||||||||
RMBS | 144 | — | — | — | 144 | ||||||||||||||
Mortgage loans | — | — | — | (4 | ) | (4 | ) | ||||||||||||
Investments in related parties | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
ABS | — | — | — | (4 | ) | (4 | ) | ||||||||||||
Trading securities, CLO | 33 | — | (26 | ) | — | 7 | |||||||||||||
Total Level 3 assets | $ | 609 | $ | — | $ | (194 | ) | $ | (1,320 | ) | $ | (905 | ) | ||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | — | $ | (641 | ) | $ | — | $ | 146 | $ | (495 | ) | |||||||
Total Level 3 liabilities | $ | — | $ | (641 | ) | $ | — | $ | 146 | $ | (495 | ) |
Year ended December 31, 2015 | |||||||||||||||||||
(In millions) | Purchases | Issuances | Sales | Settlements | Purchases, issuances, sales and settlements, net | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
U.S. state, municipal and political subdivisions | $ | — | $ | — | $ | — | $ | (35 | ) | $ | (35 | ) | |||||||
Corporate | 311 | — | — | (81 | ) | 230 | |||||||||||||
CLO | 112 | — | — | — | 112 | ||||||||||||||
ABS | 367 | — | (15 | ) | (131 | ) | 221 | ||||||||||||
CMBS | 25 | — | (1 | ) | (1 | ) | 23 | ||||||||||||
RMBS | 91 | — | — | (138 | ) | (47 | ) | ||||||||||||
Equity securities | 10 | — | — | — | 10 | ||||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
CLO | 26 | — | (20 | ) | (28 | ) | (22 | ) | |||||||||||
ABS | 100 | — | — | — | 100 | ||||||||||||||
RMBS | 30 | — | — | — | 30 | ||||||||||||||
Mortgage loans | — | — | — | (4 | ) | (4 | ) | ||||||||||||
Investments in related parties | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
CLO | 9 | — | (2 | ) | (6 | ) | 1 | ||||||||||||
ABS | — | — | — | (5 | ) | (5 | ) | ||||||||||||
Trading securities, CLO | 51 | — | (49 | ) | (24 | ) | (22 | ) | |||||||||||
Total Level 3 assets | $ | 1,132 | $ | — | $ | (87 | ) | $ | (453 | ) | $ | 592 | |||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | — | $ | (341 | ) | $ | — | $ | 143 | $ | (198 | ) | |||||||
Total Level 3 liabilities | $ | — | $ | (341 | ) | $ | — | $ | 143 | $ | (198 | ) |
1. | Non-performance risk – For contracts we issue, we use the credit spread from the U.S. treasury curve based on our public credit rating as of the valuation date. This represents our credit risk for use in the estimate of the fair value of embedded derivatives. For contracts reinsured through funds withheld reinsurance, the cedant company holds collateral against its exposure; therefore, immaterial non-performance risk is ascribed to these contracts. |
2. | Option budget – We assume future hedge costs in the derivative's fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth. |
3. | Policyholder behavior – We regularly review the lapse and withdrawal assumptions (surrender rate). These are based on our initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products. |
December 31, 2016 | |||||||||||
(In millions, except for percentages) | Fair value | Valuation technique | Unobservable inputs | Input/range of inputs | Impact of an increase in the input on fair value | ||||||
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives | $ | 5,283 | Option budget method | Non-performance risk | 0.7 | % | – | 1.5 | % | Decrease | |
Option budget | 0.8 | % | – | 3.8 | % | Increase | |||||
Surrender rate | 0.0 | % | – | 16.3 | % | Decrease |
December 31, 2015 | |||||||||||
(In millions, except for percentages) | Fair value | Valuation technique | Unobservable inputs | Input/range of inputs | Impact of an increase in the input on fair value | ||||||
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives | $ | 4,464 | Option budget method | Non-performance risk | 0.6 | % | – | 1.8 | % | Decrease | |
Option budget | 0.8 | % | – | 3.8 | % | Increase | |||||
Surrender rate | 0.0 | % | – | 10.7 | % | Decrease |
December 31, | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
(In millions) | Fair Value Level | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Assets | |||||||||||||||||
Mortgage loans | 3 | $ | 5,426 | $ | 5,560 | $ | 5,452 | $ | 5,567 | ||||||||
Investment funds | NAV1 | 590 | 590 | 581 | 581 | ||||||||||||
Policy loans | 2 | 602 | 602 | 642 | 642 | ||||||||||||
Funds withheld at interest | 3 | 6,398 | 6,398 | 3,446 | 3,446 | ||||||||||||
Other investments | 3 | 81 | 81 | 83 | 83 | ||||||||||||
Investments in related parties | |||||||||||||||||
Investment funds | NAV1 | 1,198 | 1,198 | 997 | 997 | ||||||||||||
Short-term investments | 2 | — | — | 55 | 55 | ||||||||||||
Other investments | 3 | 237 | 262 | 245 | 256 | ||||||||||||
Total assets not carried at fair value | $ | 14,532 | $ | 14,691 | $ | 11,501 | $ | 11,627 | |||||||||
Liabilities | |||||||||||||||||
Interest sensitive contract liabilities2 | 3 | $ | 27,628 | $ | 26,930 | $ | 23,653 | $ | 22,971 | ||||||||
Funds withheld liability | 2 | 374 | 374 | 353 | 353 | ||||||||||||
Total liabilities not carried at fair value | $ | 28,002 | $ | 27,304 | $ | 24,006 | $ | 23,324 | |||||||||
1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. | |||||||||||||||||
2 During 2016, we changed the disclosure of interest sensitive contract liabilities to exclude insurance contracts, which are not required to be included. We determined contract types that meet the definition of insurance contracts include universal life and traditional fixed and fixed indexed annuities with significant mortality or morbidity risks. In previous periods, all contracts within interest sensitive contract liabilities not held at fair value were included. As such, the carrying and fair values reported for December 31, 2015, were adjusted to be comparable. |
(In millions) | October 1, 2015 | ||
Investments | $ | 5,539 | |
Cash and cash equivalents | 236 | ||
Accrued investment income | 67 | ||
Reinsurance recoverable | 4 | ||
Other assets | 83 | ||
Total identifiable assets acquired | 5,929 | ||
Interest sensitive contract liabilities | 403 | ||
Future policy benefits | 4,519 | ||
Other policy claims and benefits | 55 | ||
Dividends payable to policyholders | 771 | ||
Other liabilities | 107 | ||
Total identifiable liabilities assumed | 5,855 | ||
Net assets acquired | $ | 74 |
Years ended December 31, | |||||||
(In millions) | 2015 | 2014 | |||||
Revenue | $ | 3,004 | $ | 4,623 | |||
Net income | 579 | 466 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Premiums | |||||||||||
Direct | $ | 448 | $ | 445 | $ | 387 | |||||
Reinsurance assumed | 20 | 24 | 28 | ||||||||
Reinsurance ceded | (228 | ) | (274 | ) | (315 | ) | |||||
Total premiums | $ | 240 | $ | 195 | $ | 100 | |||||
Future policy and other policy benefits | |||||||||||
Direct | $ | 1,434 | $ | 1,030 | $ | 1,311 | |||||
Reinsurance assumed | 82 | 42 | (121 | ) | |||||||
Reinsurance ceded | (457 | ) | (554 | ) | (490 | ) | |||||
Total future policy and other policy benefits | $ | 1,059 | $ | 518 | $ | 700 |
Years ended December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Interest sensitive contract liabilities | $ | 1,006 | $ | 4,179 | |||
Future policy benefits | 188 | 67 | |||||
Policy loans | 33 | 129 | |||||
Reinsurance recoverable | 1,161 | 4,117 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Global Atlantic | $ | 3,914 | $ | 5,090 | |||
Protective | 1,723 | 1,760 | |||||
Other1 | 364 | 407 | |||||
Reinsurance recoverable | $ | 6,001 | $ | 7,257 | |||
1Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total recoverable. |
(In millions) | DAC | DSI | VOBA | Total | |||||||||||
Balance at December 31, 2013 | $ | 210 | $ | 91 | $ | 1,832 | $ | 2,133 | |||||||
Additions | 250 | 113 | — | 363 | |||||||||||
Unlocking | 2 | 6 | 28 | 36 | |||||||||||
Amortization | (21 | ) | (10 | ) | (133 | ) | (164 | ) | |||||||
Impact of unrealized investment (gains) losses | (17 | ) | (12 | ) | (117 | ) | (146 | ) | |||||||
Balance at December 31, 2014 | 424 | 188 | 1,610 | 2,222 | |||||||||||
Additions | 288 | 136 | — | 424 | |||||||||||
Unlocking | (6 | ) | (2 | ) | (27 | ) | (35 | ) | |||||||
Amortization | (35 | ) | (19 | ) | (138 | ) | (192 | ) | |||||||
Impact of unrealized investment (gains) losses | 34 | 17 | 182 | 233 | |||||||||||
Balance at December 31, 2015 | 705 | 320 | 1,627 | 2,652 | |||||||||||
Additions | 601 | 200 | — | 801 | |||||||||||
Unlocking | (12 | ) | (3 | ) | (23 | ) | (38 | ) | |||||||
Amortization | (114 | ) | (36 | ) | (169 | ) | (319 | ) | |||||||
Impact of unrealized investment (gains) losses | (38 | ) | (19 | ) | (99 | ) | (156 | ) | |||||||
Balance at December 31, 2016 | $ | 1,142 | $ | 462 | $ | 1,336 | $ | 2,940 |
(In millions) | Expected Amortization | ||
2017 | $ | 139 | |
2018 | 128 | ||
2019 | 114 | ||
2020 | 105 | ||
2021 | 96 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Liabilities | |||||||
Future policy benefits | $ | 1,607 | $ | 1,581 | |||
Other policy claims and benefits | 25 | 12 | |||||
Dividends payable to policyholders | 96 | 94 | |||||
Other liabilities | 23 | 10 | |||||
Total liabilities | 1,751 | 1,697 | |||||
Assets | |||||||
Trading securities | 1,380 | 1,316 | |||||
Mortgage loans, net of allowances | 44 | 48 | |||||
Policy loans | 183 | 181 | |||||
Total investments | 1,607 | 1,545 | |||||
Cash and cash equivalents | 23 | 45 | |||||
Accrued investment income | 27 | 18 | |||||
Reinsurance recoverable | 29 | 22 | |||||
Other assets | 1 | 3 | |||||
Total assets | 1,687 | 1,633 | |||||
Maximum future earnings to be recognized from AmerUs Closed Block | $ | 64 | $ | 64 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Revenues | |||||||||||
Premiums | $ | 24 | $ | 58 | $ | 64 | |||||
Net investment income | 84 | 86 | 86 | ||||||||
Investment related gains (losses) | 42 | (124 | ) | 110 | |||||||
Total revenues | 150 | 20 | 260 | ||||||||
Benefits and Expenses | |||||||||||
Future policy and other policy benefits | 107 | (24 | ) | 212 | |||||||
Dividends to policyholders | 40 | 45 | 45 | ||||||||
Total benefits and expenses | 147 | 21 | 257 | ||||||||
Contribution from (to) AmerUs Closed Block before income taxes | 3 | (1 | ) | 3 | |||||||
Federal income taxes funded by the Closed Block | 3 | 1 | 6 | ||||||||
Contribution to AmerUs Closed Block, net of income taxes | $ | — | $ | (2 | ) | $ | (3 | ) |
1. | Consolidated debt to capitalization ratio of not greater than 35%; |
2. | Minimum consolidated net worth of no less than the sum of (a) $3.7 billion and (b) an amount equal to 50% of the net cash proceeds received in any equity issuances occurring after January 22, 2016; and |
3. | Restrictions on our ability to incur debt and liens and to declare or pay dividends, in each case with certain exceptions. |
• | We issued 3,098,946 Class A shares during the fourth quarter of 2016 from conversion of Class M-1, M-2, M-3 and M-4 shares and settlement of Class M-4 RSUs. All conversions were settled in shares net of the conversion price and, as a result, no proceeds were received from the conversions. |
• | On December 14, 2016, we completed the initial public offering (IPO) of our Class A common shares. Shareholders sold 31,050,000 existing Class A shares through the offering. We did not sell any shares in the IPO. A total of 24,158,146 Class B shares were converted into Class A shares on a one-for-one basis in order to participate in the IPO. |
• | We received $1,038 million to settle remaining capital commitments executed on April 4, 2014 in connection with a private placement offered to accredited investors. As a result, we issued 31,564,339 Class A shares and 8,369,230 Class B shares at $26.00 per share. |
• | We received commitments and issued an additional 2,315,113 Class A shares at $26.02 per share, resulting in proceeds received of $60 million. |
• | In satisfaction of our final obligations under the Transaction Advisory Services Agreement (TASA) earned by Apollo in 2014, we issued 2,311,853 Class B shares. See Note 17 – Related Parties for further information on the TASA. |
• | We received commitments for 41,201,578 Class A shares and 8,730,769 Class B shares as a result of a private placement offered to accredited investors launched in late 2013. Of that commitment, 8,240,316 Class A shares and 1,746,154 Class B shares were issued at $26.00 per share in April 2014, which represented a drawdown of 20% of the committed capital in the private placement at the time. The commitment for the remaining 39,945,877 shares was settled in 2015 as described above. |
• | To encourage significant investment by key employees, we issued 3,693,730 Class A shares at a discounted price of $13.46 pursuant to our equity incentive plan. |
• | We issued a total of 11,426,883 Class B shares in satisfaction of certain of our obligations under the TASA. This agreement is further described in Note 17 – Related Parties. |
• | We converted a note issued as part of a contribution agreement in 2012 with AAA Guarantor – Athene, L.P. and its subsidiary, Apollo Life Re Ltd., into 3,808,626 Class B shares. |
• | We authorized the following additional shares at a par value of $0.001 per share: (1) 87,110,662 Class A shares, (2) 175,000,000 Class B shares, (3) two new classes of incentive compensation shares consisting of 7,500,000 Class M-3 shares and 7,500,000 Class M-4 shares and (4) 149,998,898 shares of capital stock, which remain undesignated. |
Years ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Class A | ||||||||
Beginning balance | 50,151,265 | 15,752,736 | 494,200 | |||||
Issued shares | 3,360,471 | 34,498,220 | 11,950,844 | |||||
Forfeited shares | (37,188 | ) | — | — | ||||
Repurchased shares | (313,313 | ) | (99,691 | ) | — | |||
Converted from Class B shares | 24,158,146 | — | 3,307,692 | |||||
Ending balance | 77,319,381 | 50,151,265 | 15,752,736 | |||||
Class B | ||||||||
Beginning balance | 135,963,975 | 125,282,892 | 114,605,747 | |||||
Issued shares | — | 10,681,083 | 16,981,664 | |||||
Repurchased shares | — | — | (2,996,827 | ) | ||||
Converted to Class A shares | (24,158,146 | ) | — | (3,307,692 | ) | |||
Ending balance | 111,805,829 | 135,963,975 | 125,282,892 | |||||
Class M-1 | ||||||||
Beginning balance | 5,198,273 | 5,198,273 | 5,198,273 | |||||
Converted to Class A shares | (1,155,303 | ) | — | — | ||||
Forfeited shares | (270,543 | ) | — | — | ||||
Repurchased shares | (298,222 | ) | — | — | ||||
Ending balance | 3,474,205 | 5,198,273 | 5,198,273 | |||||
Class M-2 | ||||||||
Beginning balance | 3,125,869 | 3,125,869 | 3,226,792 | |||||
Converted to Class A shares | (1,788,998 | ) | — | — | ||||
Forfeited shares | (161,474 | ) | — | (80,738 | ) | |||
Repurchased shares | (107,650 | ) | — | (20,185 | ) | |||
Ending balance | 1,067,747 | 3,125,869 | 3,125,869 | |||||
Class M-3 | ||||||||
Beginning balance | 3,110,000 | 3,350,000 | — | |||||
Issued shares | — | — | 3,390,000 | |||||
Converted to Class A shares | (1,443,700 | ) | — | — | ||||
Forfeited shares | (224,000 | ) | (216,000 | ) | (32,000 | ) | ||
Repurchased shares | (96,000 | ) | (24,000 | ) | (8,000 | ) | ||
Ending balance | 1,346,300 | 3,110,000 | 3,350,000 | |||||
Class M-4 | ||||||||
Beginning balance | 5,038,443 | — | — | |||||
Issued shares | 990,650 | 5,316,751 | — | |||||
Converted to Class A shares | (79,031 | ) | — | — | ||||
Forfeited shares | (452,528 | ) | (242,050 | ) | — | |||
Repurchased shares | (99,732 | ) | (36,258 | ) | — | |||
Ending balance | 5,397,802 | 5,038,443 | — |
(In millions, except share and per share data) | Options | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||
Outstanding at January 1, 2016 | — | $ | — | |||||||
Granted | 470,644 | 33.95 | ||||||||
Outstanding at December 31, 2016 | 470,644 | $ | 33.95 | |||||||
Vested and expected to vest at December 31, 2016 | 462,643 | $ | 33.95 | $ | 6 |
Assumptions used | Year ended December 31, 2016 | |
Risk-free interest rate | 1.0% | |
Dividend yield | —% | |
Expected volatility | 25.0% | |
Expected term | 2.63 years |
RSU | Weighted Average Grant Date Fair Value | |||||
Nonvested at January 1, 2016 | — | $ | — | |||
Granted | 329,159 | 33.95 | ||||
Forfeited | (1,032 | ) | 33.95 | |||
Nonvested at December 31, 2016 | 328,127 | $ | 33.95 |
• | Class M-4 (excluding M-4 Prime) – The vesting performance hurdle for Class M-4 shares is based on the rate of return and realized cash received by certain holders of our shares (Relevant Investors), as defined in the incentive plan, upon sale of their shares prior to or during an IPO or within a 15 month period thereafter. Vesting may also occur if the performance hurdles are met based on deemed sales by Relevant Investors on the dates 7.5, 12 and 15 months after an IPO, and monthly thereafter, through the contractual term, at a price equal to the volume weighted average closing trading price during the 90 day period prior to such date. Based on the results of the performance hurdle calculations, the vesting percentages of the Tranche 2 awards can range from 0% to 100%. Upon a participant's qualifying termination, unvested Tranche 2 awards remain outstanding and eligible to vest for a period of 18 months following the later of the IPO date or date of a qualifying termination. Any unvested Tranche 2 shares remaining at the end of this 18 month period are forfeited. See 2016 Modification below for further information on Tranche 2 awards vesting for M-1, M-2 and M-3 award agreements. |
• | Class M-4 Prime – The vesting performance hurdle is based on the attainment of specified Class A share prices following an IPO. Vesting will also occur upon a sale of the Company or change in control in which Class A Shares are valued at the respective hurdle share price. Any unvested Tranche 2 shares remaining as of the tenth anniversary of the grant date are forfeited. |
Years ended December 31, | ||||||||||||
Assumptions used | 2016 | 2015 | 2014 | |||||||||
Athene Class A share value | $32.90 | $34.23 | $26.02 | |||||||||
Risk-free interest rate | 0.5 | % | – | 1.8% | 0.9 | % | – | 1.1% | 0.6% | |||
Expected dividend yield | —% | —% | —% | |||||||||
Expected volatility | 30.0% | 25.9% | 17.5% | |||||||||
Expected term | 3.00 years | 2.42 years | 2.39 years |
Tranche 1 | Tranche 2 | Total | ||||||||||||||||||||||||||
(In millions, except share and per share data) | Class M Shares | Weighted Average Conversion Price | Aggregate Intrinsic Value | Class M Shares | Weighted Average Conversion Price | Aggregate Intrinsic Value | Class M Shares | Weighted Average Conversion Price | ||||||||||||||||||||
Outstanding at January 1, 2016 | 6,815,504 | $ | 15.44 | 9,144,220 | $ | 15.91 | 15,959,724 | $ | 15.71 | |||||||||||||||||||
Granted | 323,297 | 33.90 | 646,603 | 33.90 | 969,900 | 33.90 | ||||||||||||||||||||||
Converted | (1,993,576 | ) | 12.03 | (2,473,456 | ) | 11.46 | (4,467,032 | ) | 11.71 | |||||||||||||||||||
Forfeited | (230,655 | ) | 19.58 | (833,873 | ) | 16.40 | (1,064,528 | ) | 17.09 | |||||||||||||||||||
Repurchased | (445,985 | ) | 13.56 | (135,662 | ) | 10.95 | (581,647 | ) | 12.95 | |||||||||||||||||||
Outstanding at December 31, 2016 | 4,468,585 | $ | 18.27 | 6,347,832 | $ | 19.52 | 10,816,417 | $ | 19.00 | |||||||||||||||||||
Vested and expected to vest at December 31, 2016 | 4,437,356 | $ | 18.22 | $ | 132 | 6,297,187 | $ | 19.45 | $ | 180 | ||||||||||||||||||
Convertible at December 31, 20161 | 2,631,542 | $ | 12.97 | $ | 92 | 3,307,697 | $ | 10.93 | $ | 123 | ||||||||||||||||||
1 Includes shares scheduled to convert in the first six months of 2017 as a result of the 2016 Modification. |
Tranche 1 | Tranche 2 | Total | ||||||||||||||||||
Class M Shares | Weighted Average Grant Date Fair Value | Class M Shares | Weighted Average Grant Date Fair Value | Class M Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Nonvested at January 1, 2016 | 2,661,291 | $ | 7.74 | 8,036,554 | $ | 4.88 | 10,697,845 | $ | 5.59 | |||||||||||
Granted | 323,297 | 8.45 | 646,603 | 11.42 | 969,900 | 10.43 | ||||||||||||||
Vested | (916,890 | ) | 6.67 | (4,809,149 | ) | 2.14 | (5,726,039 | ) | 2.87 | |||||||||||
Forfeited | (230,655 | ) | 5.62 | (833,873 | ) | 2.14 | (1,064,528 | ) | 2.89 | |||||||||||
Nonvested at December 31, 2016 | 1,837,043 | $ | 8.67 | 3,040,135 | $ | 11.36 | 4,877,178 | $ | 10.34 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Class M – Tranche 1 | $ | 11 | $ | 12 | $ | 54 | |||||
Class M – Tranche 2 | 69 | 50 | 47 | ||||||||
Class A | 2 | 5 | 47 | ||||||||
LTIP | 2 | — | — | ||||||||
Stock-based compensation expense | $ | 84 | $ | 67 | $ | 148 |
Year ended December 31, 2016 | |||||||||||
(In millions, except share and per share data) | Class A | Class B | Class M-1 | ||||||||
Net income available to AHL shareholders – basic | $ | 214 | $ | 553 | $ | 1 | |||||
Effect of stock compensation plans on allocated net income | 1 | — | — | ||||||||
Net income available to AHL shareholders – diluted | $ | 215 | $ | 553 | $ | 1 | |||||
Basic weighted average shares outstanding | 52,086,945 | 134,445,840 | 218,324 | ||||||||
Dilutive effect of stock compensation plans | 1,443,531 | — | 4,246,074 | ||||||||
Diluted weighted average shares outstanding | 53,530,476 | 134,445,840 | 4,464,398 | ||||||||
Earnings per share1 | |||||||||||
Basic | $ | 4.11 | $ | 4.11 | $ | 4.11 | |||||
Diluted | $ | 4.02 | $ | 4.11 | $ | 0.20 | |||||
1 Calculated using whole figures. |
Years ended December 31, | |||||||
(In millions, except share and per share data) | 2015 | 2014 | |||||
Net income available to AHL shareholders | $ | 562 | $ | 456 | |||
Basic weighted average shares outstanding | 175,091,802 | 129,519,108 | |||||
Dilutive effect of stock compensation plans | 86,846 | 11 | |||||
Dilutive effect of equity swap1 | — | 2,089,345 | |||||
Diluted weighted average shares outstanding | 175,178,648 | 131,608,464 | |||||
Earnings per share on Class A and B shares2 | |||||||
Basic | $ | 3.21 | $ | 3.52 | |||
Diluted | $ | 3.21 | $ | 3.47 | |||
1 Equity swap relates to TASA. See Note 17 – Related Parties for additional information. | |||||||
2 Calculated using whole figures. |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
AFS securities | $ | 972 | $ | (405 | ) | ||
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | (408 | ) | 91 | ||||
Noncredit component of OTTI losses on AFS securities | (17 | ) | (15 | ) | |||
Hedging instruments | 10 | 15 | |||||
Pension adjustments | (4 | ) | (4 | ) | |||
Foreign currency translation adjustments | (12 | ) | (4 | ) | |||
Accumulated other comprehensive income (loss), before taxes | 541 | (322 | ) | ||||
Deferred income tax asset (liability) | (174 | ) | 85 | ||||
Accumulated other comprehensive income (loss) | $ | 367 | $ | (237 | ) |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Unrealized gains (losses) on AFS securities | |||||||||||
Unrealized holding gains (losses) arising during the year | $ | 1,397 | $ | (1,661 | ) | $ | 1,225 | ||||
Change in DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustment | (499 | ) | 419 | (317 | ) | ||||||
Less: Reclassification adjustment for gains (losses) realized in net income1 | 20 | 72 | 9 | ||||||||
Less: Income tax expense (benefit) | 261 | (428 | ) | 318 | |||||||
Change in unrealized gains (losses) on AFS securities | 617 | (886 | ) | 581 | |||||||
Noncredit component of OTTI losses on AFS securities | |||||||||||
Noncredit component of OTTI losses on AFS securities recognized during the year | (9 | ) | (13 | ) | (1 | ) | |||||
Less: Reclassification adjustment for losses realized in net income1 | (7 | ) | (3 | ) | — | ||||||
Less: Income tax expense (benefit) | — | (4 | ) | 1 | |||||||
Change in noncredit component of OTTI losses on AFS securities | (2 | ) | (6 | ) | (2 | ) | |||||
Unrealized gains (losses) on hedging instruments | |||||||||||
Change in hedging instruments during the year | (5 | ) | 11 | 10 | |||||||
Less: Income tax expense (benefit) | (2 | ) | 4 | 4 | |||||||
Change in hedging instruments | (3 | ) | 7 | 6 | |||||||
Pension adjustments | |||||||||||
Pension adjustments during the year | — | 12 | (17 | ) | |||||||
Less: Income tax expense (benefit) | — | 4 | (6 | ) | |||||||
Change in pension adjustments | — | 8 | (11 | ) | |||||||
Foreign currency translation adjustments | |||||||||||
Foreign currency translation adjustments during the year | (8 | ) | (4 | ) | — | ||||||
Change in AOCI | $ | 604 | $ | (881 | ) | $ | 574 | ||||
1 Recognized in investment related gains (losses) on the consolidated statements of income. |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Current | $ | (33 | ) | $ | (19 | ) | $ | (84 | ) | ||
Deferred | (19 | ) | 31 | 137 | |||||||
Income tax expense (benefit) | $ | (52 | ) | $ | 12 | $ | 53 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Pre-tax income – Bermuda | $ | 565 | $ | 508 | $ | 263 | |||||
Pre-tax income – Germany | 16 | 8 | — | ||||||||
Pre-tax income – U.S. | 135 | 74 | 261 | ||||||||
Income before income taxes | $ | 716 | $ | 590 | $ | 524 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Expected tax provision computed on pre-tax income at weighted average income tax rate | $ | 52 | $ | 28 | $ | 91 | |||||
(Decrease) increase in income taxes resulting from: | |||||||||||
Deferred tax valuation allowance | (116 | ) | (6 | ) | (22 | ) | |||||
Prior year true-up | 8 | 2 | (12 | ) | |||||||
Corporate owned life insurance | (7 | ) | (7 | ) | (6 | ) | |||||
Stock compensation expense | 5 | — | — | ||||||||
State taxes and other | 6 | (5 | ) | 2 | |||||||
Total income tax expense (benefit) | $ | (52 | ) | $ | 12 | $ | 53 | ||||
Effective tax rate | (7 | )% | 2 | % | 10 | % |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Income tax expense (benefit) | $ | (52 | ) | $ | 12 | $ | 53 | ||||
Income tax expense (benefit) from OCI | 259 | (424 | ) | 317 | |||||||
Total income taxes | $ | 207 | $ | (412 | ) | $ | 370 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Deferred tax assets | |||||||
Insurance liabilities | $ | 1,483 | $ | 1,354 | |||
Net unrealized losses on AFS | — | 84 | |||||
Net operating and capital loss carryforwards | 221 | 170 | |||||
Tax credits | 18 | — | |||||
VOBA | 69 | 72 | |||||
Employee benefits | 52 | 57 | |||||
Other | 27 | 20 | |||||
Total deferred tax assets | 1,870 | 1,757 | |||||
Valuation allowance1 | (72 | ) | (193 | ) | |||
Deferred tax asset, after valuation allowance | 1,798 | 1,564 | |||||
Deferred tax liabilities | |||||||
Investments, including derivatives | 668 | 429 | |||||
Net unrealized gains on AFS | 178 | — | |||||
VOBA | 346 | 375 | |||||
DAC | 232 | 109 | |||||
Other | 6 | 42 | |||||
Total deferred tax liability | 1,430 | 955 | |||||
Net deferred tax asset2 | $ | 368 | $ | 609 | |||
1 A portion of the valuation allowance reduction was recorded in other comprehensive income. | |||||||
2 Net deferred tax asset includes deferred tax liability relating to ADKG, which is included in other liabilities on the consolidated balance sheets. |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
U.S. federal and state net operating losses | $ | 22 | $ | 100 | |||
U.S. other deferred tax assets | — | 27 | |||||
German other deferred tax assets | 50 | 66 | |||||
Total valuation allowance | $ | 72 | $ | 193 |
Subsidiary | Regulatory Authority | |
AADE | Delaware Department of Insurance | |
ALIC | Delaware Department of Insurance | |
AANY | New York Department of Financial Services | |
ALICNY | New York Department of Financial Services | |
AAIA | Iowa Insurance Division | |
Structured Annuity Reinsurance Company (STAR) | Iowa Insurance Division | |
Athene Re USA IV | State of Vermont Department of Financial Regulation |
Statutory Capital & Surplus | Statutory Net Income (Loss) | ||||||||||||||||||
December 31, | Years ended December 31, | ||||||||||||||||||
(In millions) | 2016 | 2015 | 2016 | 2015 | 2014 | ||||||||||||||
ALRe | $ | 6,124 | $ | 5,650 | $ | 460 | $ | 461 | $ | 632 | |||||||||
AADE | 1,272 | 1,251 | 71 | 68 | 116 | ||||||||||||||
ALIC | 79 | 77 | 1 | 1 | 1 | ||||||||||||||
AANY | 231 | 208 | 1 | 8 | 7 | ||||||||||||||
ALICNY | 78 | 73 | 10 | 14 | 88 | ||||||||||||||
AAIA | 1,113 | 1,109 | 100 | 597 | 263 | ||||||||||||||
STAR | 80 | 76 | 17 | 4 | 35 | ||||||||||||||
Athene Re USA IV | 50 | 38 | 7 | 1 | 6 |
December 31, | |||||||
(In millions, except for percentages) | 2016 | 2015 | |||||
Fixed maturity securities | |||||||
U.S. state, municipal and political subdivisions | $ | 5 | $ | 10 | |||
Foreign governments | 149 | 107 | |||||
Corporate | 2,032 | 1,435 | |||||
CLO | 4,727 | 4,339 | |||||
ABS | 911 | 1,746 | |||||
CMBS | 975 | 1,010 | |||||
RMBS | — | 21 | |||||
Mortgage loans | 1,767 | 1,594 | |||||
Investment funds | 23 | 21 | |||||
Trading securities | 126 | 207 | |||||
Funds withheld at interest | 1,682 | 1,182 | |||||
Other investments | 81 | 83 | |||||
Total assets sub-advised by Apollo affiliates | $ | 12,478 | $ | 11,755 | |||
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets | 19 | % | 20 | % |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Fixed maturity securities | |||||||
Foreign governments | $ | 2,062 | $ | 2,349 | |||
Corporate | 1,567 | 1,607 | |||||
Equity securities | 187 | 220 | |||||
Mortgage loans | — | 139 | |||||
Investment funds | 34 | 41 | |||||
Policy loans | 6 | 9 | |||||
Real estate | 541 | 566 | |||||
Other investments | 153 | 125 | |||||
Cash and cash equivalents | 25 | — | |||||
Total assets sub-advised by AAME | $ | 4,575 | $ | 5,056 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Asset management fees | $ | 229 | $ | 226 | $ | 222 | |||||
Sub-advisory fees | 66 | 42 | 36 |
December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
AFS securities | |||||||
Fixed maturity | $ | 1,535 | $ | 1,865 | |||
Equity | 40 | 56 | |||||
Investment funds | 25 | 27 | |||||
Mortgage loans | 1,003 | 1,134 | |||||
Short-term investments | 15 | — | |||||
Restricted cash | 57 | 116 | |||||
Total restricted assets | $ | 2,675 | $ | 3,198 |
• | Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; |
• | Investment gains (losses), net of offsets; |
• | VIE expenses and noncontrolling interest; and |
• | Other adjustments to revenues. |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Operating revenue by segment | |||||||||||
Retirement Services | $ | 3,330 | $ | 2,979 | $ | 2,834 | |||||
Corporate and Other | 268 | 112 | 55 | ||||||||
Total segment operating revenues | 3,598 | 3,091 | 2,889 | ||||||||
Non-operating adjustments | |||||||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 324 | (390 | ) | 814 | |||||||
Investment gains (losses), net of offsets | 164 | (132 | ) | 299 | |||||||
VIE expenses and noncontrolling interest | 13 | 33 | 79 | ||||||||
Other adjustments to revenues | 6 | 16 | 20 | ||||||||
Total non-operating adjustments | 507 | (473 | ) | 1,212 | |||||||
Total revenues | $ | 4,105 | $ | 2,618 | $ | 4,101 |
• | Investment gains (losses), net of offsets; |
• | Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; |
• | Integration, restructuring and other non-operating expenses; |
• | Stock-based compensation, excluding LTIP; and |
• | Provision for income taxes – non-operating. |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Operating income, net of tax by segment | |||||||||||
Retirement Services | $ | 777 | $ | 767 | $ | 756 | |||||
Corporate and other | (49 | ) | (29 | ) | 29 | ||||||
Total segment operating income, net of tax | 728 | 738 | 785 | ||||||||
Non-operating adjustments | |||||||||||
Investment gains (losses), net of offsets | 47 | (56 | ) | 152 | |||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 95 | (25 | ) | (30 | ) | ||||||
Integration, restructuring and other non-operating expenses | (22 | ) | (58 | ) | (279 | ) | |||||
Stock-based compensation, excluding LTIP | (82 | ) | (67 | ) | (148 | ) | |||||
Income tax (expense) benefit – non-operating | 2 | 30 | (24 | ) | |||||||
Total non-operating adjustments | 40 | (176 | ) | (329 | ) | ||||||
Net income available to Athene Holding Ltd. shareholders | $ | 768 | $ | 562 | $ | 456 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Net investment earnings by segment | |||||||||||
Retirement Services | $ | 2,953 | $ | 2,574 | $ | 2,483 | |||||
Corporate and Other | 77 | 36 | 55 | ||||||||
Total net investment earnings | 3,030 | 2,610 | 2,538 | ||||||||
Adjustments to net investment income | |||||||||||
Reinsurance embedded derivative impacts | (189 | ) | (84 | ) | (67 | ) | |||||
Net VIE earnings | (1 | ) | (67 | ) | (146 | ) | |||||
Alternative income (gains) losses | 39 | 42 | (4 | ) | |||||||
Other | 35 | 9 | 12 | ||||||||
Total adjustments to arrive at net investment income | (116 | ) | (100 | ) | (205 | ) | |||||
Net investment income | $ | 2,914 | $ | 2,510 | $ | 2,333 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Provision for income taxes – operating by segment | |||||||||||
Retirement Services | $ | (46 | ) | $ | 39 | $ | 29 | ||||
Corporate and Other | (4 | ) | 3 | — | |||||||
Total segment income tax expense (benefit) – operating | (50 | ) | 42 | 29 | |||||||
Income tax (expense) benefit – non-operating | (2 | ) | (30 | ) | 24 | ||||||
Income tax expense (benefit) | $ | (52 | ) | $ | 12 | $ | 53 |
December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Total assets by segment | |||||||||||
Retirement Services | $ | 79,298 | $ | 73,702 | $ | 81,633 | |||||
Corporate and Other | 7,401 | 7,144 | 1,104 | ||||||||
Total assets | $ | 86,699 | $ | 80,846 | $ | 82,737 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Fixed indexed annuities | $ | 5,322 | $ | 2,808 | $ | 2,560 | |||||
Fixed rate annuities | 3,565 | 883 | 323 | ||||||||
Payouts without life contingencies | 107 | 166 | 163 | ||||||||
Funding agreements | — | 250 | — | ||||||||
Life and other deposits | 24 | 11 | 15 | ||||||||
Total deposits | 9,018 | 4,118 | 3,061 | ||||||||
Payouts with life contingencies | 21 | 53 | 32 | ||||||||
Life and other premiums | 219 | 142 | 68 | ||||||||
Total premiums | 240 | 195 | 100 | ||||||||
Total premiums and deposits, net of ceded | $ | 9,258 | $ | 4,313 | $ | 3,161 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
United States | $ | 5,617 | $ | 3,097 | $ | 2,810 | |||||
Bermuda | 3,429 | 1,135 | 351 | ||||||||
Germany | 212 | 81 | — | ||||||||
Total premiums and deposits, net of ceded | $ | 9,258 | $ | 4,313 | $ | 3,161 |
Three months ended | |||||||||||||||
(In millions, except per share data) | March 31 | June 30 | September 30 | December 31 | |||||||||||
2016 | |||||||||||||||
Total revenues | $ | 722 | $ | 1,045 | $ | 1,272 | $ | 1,066 | |||||||
Total benefits and expenses | 637 | 837 | 1,234 | 681 | |||||||||||
Net income | 85 | 193 | 126 | 364 | |||||||||||
Net income available to Athene Holding Ltd. shareholders | 85 | 193 | 126 | 364 | |||||||||||
Earnings per share | |||||||||||||||
Basic – Classes A, B and M-11 | $ | 0.46 | $ | 1.04 | $ | 0.68 | $ | 1.92 | |||||||
Diluted – Class A | 0.46 | 1.04 | 0.68 | 1.78 | |||||||||||
Diluted – Class B | 0.46 | 1.04 | 0.68 | 1.92 | |||||||||||
Diluted – Class M-1 | N/A | N/A | N/A | 0.46 | |||||||||||
2015 | |||||||||||||||
Total revenues | $ | 803 | $ | 544 | $ | 224 | $ | 1,047 | |||||||
Total benefits and expenses | 639 | 416 | 148 | 825 | |||||||||||
Net income | 158 | 101 | 76 | 243 | |||||||||||
Net income available to Athene Holding Ltd. shareholders | 142 | 101 | 76 | 243 | |||||||||||
Earnings per share | |||||||||||||||
Basic – Classes A and B | $ | 0.99 | $ | 0.54 | $ | 0.41 | $ | 1.31 | |||||||
Diluted – Class A | 0.99 | 0.54 | 0.41 | 1.31 | |||||||||||
Diluted – Class B | 0.99 | 0.54 | 0.41 | 1.31 | |||||||||||
Diluted – Class M-1 | N/A | N/A | N/A | N/A | |||||||||||
N/A – Not applicable. Refer to Note 13 – Earnings Per Share for further discussion. | |||||||||||||||
1 Basic earnings per Class M-1 share was applicable only for the three months ended December 31, 2016. Refer to Note 13 – Earnings Per Share for further discussion. |
1. | ||
2. | Financial Statement Schedules | |
Any remaining schedules are omitted because they are inapplicable. | ||
3. | Exhibits | |
See the accompanying Exhibit Index. |
December 31, 2016 | ||||||||||||
(In millions) | Cost or Amortized Cost | Fair Value | Amount Shown on Consolidated Balance Sheet | |||||||||
Available-for-sale securities | ||||||||||||
Fixed maturity securities | ||||||||||||
U.S government and agencies | $ | 59 | $ | 60 | $ | 60 | ||||||
U.S. state, municipal, and political subdivisions | 1,024 | 1,140 | 1,140 | |||||||||
Foreign governments | 2,098 | 2,235 | 2,235 | |||||||||
Public utilities | 4,343 | 4,461 | 4,461 | |||||||||
Other corporate | 25,061 | 25,530 | 25,530 | |||||||||
CLO | 4,950 | 4,822 | 4,822 | |||||||||
ABS | 2,980 | 2,936 | 2,936 | |||||||||
CMBS | 1,835 | 1,847 | 1,847 | |||||||||
RMBS | 8,731 | 8,973 | 8,973 | |||||||||
Redeemable preferred stock | 29 | 29 | 29 | |||||||||
Total fixed maturity securities | 51,110 | 52,033 | 52,033 | |||||||||
Equity securities | ||||||||||||
Banks, trust and insurance companies common stock | 70 | 98 | 98 | |||||||||
Industrial, miscellaneous and all other common stock | 187 | 190 | 190 | |||||||||
Nonredeemable preferred stocks | 62 | 65 | 65 | |||||||||
Total equity securities | 319 | 353 | 353 | |||||||||
Total available-for-sale securities | 51,429 | $ | 52,386 | 52,386 | ||||||||
Trading securities, at fair value | 2,480 | 2,581 | ||||||||||
Mortgage loans, net of allowances | 5,468 | 5,470 | ||||||||||
Investment funds | 674 | 689 | ||||||||||
Policy loans | 602 | 602 | ||||||||||
Funds withheld at interest | 6,538 | 6,538 | ||||||||||
Derivative assets | 1,504 | 1,370 | ||||||||||
Real estate | 542 | 542 | ||||||||||
Short-term investments, at fair value | 189 | 189 | ||||||||||
Other investments | 81 | 81 | ||||||||||
Total investments | $ | 69,507 | $ | 70,448 |
December 31, | |||||||
(In millions, except share and per share data) | 2016 | 2015 | |||||
Assets | |||||||
Investments | |||||||
Available-for-sale, fixed maturity securities, at fair value (amortized cost: 2016 – $27 and 2015 – $29) | $ | 28 | $ | 31 | |||
Cash and cash equivalents | 189 | 260 | |||||
Other assets | 15 | 11 | |||||
Note receivable from subsidiary | — | 20 | |||||
Investments in subsidiaries | 6,665 | 5,127 | |||||
Total assets | $ | 6,897 | $ | 5,449 | |||
Liabilities and Equity | |||||||
Liabilities | |||||||
Payables for collateral on derivatives | $ | 6 | $ | — | |||
Other liabilities | 32 | 97 | |||||
Intercompany payable | 1 | — | |||||
Total liabilities | 39 | 97 | |||||
Equity | |||||||
Common stock | |||||||
Class A – par value $0.001 per share; authorized: 2016 and 2015 – 425,000,000 shares; issued and outstanding: 2016 – 77,319,381 and 2015 – 50,151,265 shares | — | — | |||||
Class B – par value $0.001 per share; convertible to Class A; authorized: 2016 and 2015 – 325,000,000 shares; issued and outstanding: 2016 – 111,805,829 and 2015 – 135,963,975 shares | — | — | |||||
Class M-1 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 7,109,560 shares; issued and outstanding: 2016 – 3,474,205 and 2015 – 5,198,273 shares | — | — | |||||
Class M-2 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 5,000,000 shares; issued and outstanding: 2016 – 1,067,747 and 2015 – 3,125,869 shares | — | — | |||||
Class M-3 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 7,500,000 shares; issued and outstanding: 2016 – 1,346,300 and 2015 – 3,110,000 shares | — | — | |||||
Class M-4 – par value $0.001 per share; contingently convertible to Class A; authorized: 2016 and 2015 – 7,500,000 shares; issued and outstanding: 2016 – 5,397,802 and 2015 – 5,038,443 shares | — | — | |||||
Additional paid-in capital | 3,421 | 3,281 | |||||
Retained earnings | 3,070 | 2,308 | |||||
Accumulated other comprehensive income (loss) | 367 | (237 | ) | ||||
Total Athene Holding Ltd. shareholders' equity | 6,858 | 5,352 | |||||
Total liabilities and equity | $ | 6,897 | $ | 5,449 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Revenue | |||||||||||
Net investment income (related party: 2016 – $8, 2015 – $(5), and 2014 – $0) | $ | 10 | $ | — | $ | 8 | |||||
Investment related gains (losses) | 4 | — | — | ||||||||
Total revenues | 14 | — | 8 | ||||||||
Benefits and Expenses | |||||||||||
Other operating expenses (related party: 2016 – $16, 2015 – $16, and 2014 – $253) | 145 | 130 | 450 | ||||||||
Interest expense | — | — | 1 | ||||||||
Total benefits and expenses | 145 | 130 | 451 | ||||||||
Loss before income taxes and equity earnings in subsidiaries | (131 | ) | (130 | ) | (443 | ) | |||||
Provision for income taxes | — | — | — | ||||||||
Equity earnings in subsidiaries | 899 | 692 | 899 | ||||||||
Net income available to Athene Holding Ltd. shareholders | 768 | 562 | 456 | ||||||||
Other comprehensive income (loss), after tax | 604 | (881 | ) | 574 | |||||||
Comprehensive income (loss) available to Athene Holding Ltd. shareholders | $ | 1,372 | $ | (319 | ) | $ | 1,030 |
Years ended December 31, | |||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Net cash (used in) provided by operating activities | $ | (45 | ) | $ | (82 | ) | $ | 319 | |||
Cash flows from investing activities | |||||||||||
Capital contributions to subsidiary | (34 | ) | (506 | ) | (232 | ) | |||||
Acquisition of subsidiaries, net of cash acquired | — | — | 33 | ||||||||
Receipts on loans to subsidiaries | 20 | 188 | — | ||||||||
Issuances of loans to subsidiaries | — | (103 | ) | (100 | ) | ||||||
Investment in note receivable | — | (5 | ) | — | |||||||
Sales, maturities, and repayments of: | |||||||||||
Available-for-sale, fixed maturity securities | 5 | 17 | 9 | ||||||||
Purchases of: | |||||||||||
Available-for-sale, fixed maturity securities (related party: 2016 – $0, 2015 – $0, and 2014 – $(38)) | (3 | ) | (423 | ) | (294 | ) | |||||
Cash settlement of derivatives | 5 | — | — | ||||||||
Other investing activities, net | (5 | ) | — | — | |||||||
Net cash used in investing activities | (12 | ) | (832 | ) | (584 | ) | |||||
Cash flows from financing activities | |||||||||||
Capital contributions | 1 | 1,116 | 305 | ||||||||
Repayment of note payables | — | — | (300 | ) | |||||||
Net change in cash collateral posted for derivative transactions | 6 | — | — | ||||||||
Repurchase of common stock | (21 | ) | (3 | ) | (78 | ) | |||||
Net cash (used in) provided by financing activities | (14 | ) | 1,113 | (73 | ) | ||||||
Net (decrease) increase in cash and cash equivalents | (71 | ) | 199 | (338 | ) | ||||||
Cash and cash equivalents at beginning of year | 260 | 61 | 399 | ||||||||
Cash and cash equivalents at end of year | $ | 189 | $ | 260 | $ | 61 | |||||
Supplementary information | |||||||||||
Cash paid for interest | $ | — | $ | — | $ | 1 | |||||
Non-cash transactions | |||||||||||
Non-cash capital contribution to ALRe | — | 708 | — | ||||||||
Issuance of capital for payment of liabilities | — | 2 | 199 |
Years ended December 31, | ||||||||||||
(In millions) | 2016 | 2015 | 2014 | |||||||||
Athene Life Re Ltd. | $ | — | $ | — | $ | 350 | ||||||
Athene USA | — | — | — | |||||||||
Total | $ | — | $ | — | $ | 350 |
Years ended December 31, | ||||||||||||
(In millions) | 2016 | 2015 | 2014 | |||||||||
Athene IP Holdings Ltd. | $ | 8 | $ | — | $ | — | ||||||
AGER Bermuda Holding Ltd. | 8 | 74 | — | |||||||||
Athene Life Re Ltd. | — | 1,140 | — | |||||||||
Athene USA | 18 | — | 232 | |||||||||
Total | $ | 34 | $ | 1,214 | $ | 232 |
DAC, DSI, and VOBA | Future policy benefits, losses, claims and loss expenses1 | Other policy claims and benefits | Premiums | Net investment income | Benefits, claims, losses, and settlement expenses2 | Amortization of DAC and VOBA | Policy and other operating expenses | |||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||
Retirement Services | $ | 2,940 | $ | 71,810 | $ | 148 | $ | 53 | $ | 2,837 | $ | 2,165 | $ | 318 | $ | 422 | ||||||||||||||||
Corporate and other | — | 4,314 | 69 | 187 | 77 | 266 | — | 196 | ||||||||||||||||||||||||
Total | $ | 2,940 | $ | 76,124 | $ | 217 | $ | 240 | $ | 2,914 | $ | 2,431 | $ | 318 | $ | 618 | ||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
Retirement Services | $ | 2,652 | $ | 67,211 | $ | 167 | $ | 121 | $ | 2,475 | $ | 1,150 | $ | 206 | $ | 386 | ||||||||||||||||
Corporate and other | — | 4,625 | 67 | 74 | 35 | 106 | — | 146 | ||||||||||||||||||||||||
Total | $ | 2,652 | $ | 71,836 | $ | 234 | $ | 195 | $ | 2,510 | $ | 1,256 | $ | 206 | $ | 532 | ||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Retirement Services | $ | 100 | $ | 2,278 | $ | 2,570 | $ | 124 | $ | 380 | ||||||||||||||||||||||
Corporate and other | — | 55 | — | — | 417 | |||||||||||||||||||||||||||
Total | $ | 100 | $ | 2,333 | $ | 2,570 | $ | 124 | $ | 797 | ||||||||||||||||||||||
1 Represents interest sensitive contract liabilities and future policy benefits on the consolidated balance sheets. | ||||||||||||||||||||||||||||||||
2 Represents interest sensitive contract benefits, amortization of deferred sales inducements, future policy and other policy benefits, and dividends to policyholders on the consolidated statements of income. |
(In millions) | Gross amount | Ceded to other companies | Assumed from other companies | Net amount | Percentage of amount assumed to net | |||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||
Life insurance in force at end of year | $ | 56,356 | $ | 65,050 | $ | 9,591 | $ | 897 | 1,069.2 | % | ||||||||
Premiums | 448 | 228 | 20 | 240 | 8.3 | % | ||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||
Life insurance in force at end of year | 77,994 | 83,548 | 10,123 | 4,569 | 221.6 | % | ||||||||||||
Premiums | 445 | 274 | 24 | 195 | 12.3 | % | ||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||
Life insurance in force at end of year | 132,755 | 142,660 | 10,748 | 843 | 1,275.0 | % | ||||||||||||
Premiums | 387 | 315 | 28 | 100 | 28.0 | % |
(In millions) | Additions | ||||||||||||||||||
Description | Balance at beginning of year | Charged to costs and expenses | Assumed through acquisitions1 | Deductions | Balance at end of year | ||||||||||||||
Reserves deducted from assets to which they apply | |||||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||
Valuation allowance on deferred tax assets | $ | 193 | $ | — | $ | — | $ | (121 | ) | $ | 72 | ||||||||
Valuation allowance on mortgage loans | 2 | — | — | — | 2 | ||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||
Valuation allowance on deferred tax assets | 133 | 7 | 66 | (13 | ) | 193 | |||||||||||||
Valuation allowance on mortgage loans | 1 | — | 1 | — | 2 | ||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
Valuation allowance on deferred tax assets | 155 | — | — | (22 | ) | 133 | |||||||||||||
Valuation allowance on mortgage loans | 1 | 1 | — | (1 | ) | 1 | |||||||||||||
1 Assumed through acquisitions represents the valuation allowances recorded related to the acquisition of DLD in October 2015. |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Assets | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities (amortized cost: 2017 – $52,836 and 2016 – $51,110) | $ | 54,211 | $ | 52,033 | |||
Equity securities (cost: 2017 – $381 and 2016 – $319) | 422 | 353 | |||||
Trading securities, at fair value | 2,595 | 2,581 | |||||
Mortgage loans, net of allowances (portion at fair value: 2017 – $44 and 2016 – $44) | 5,453 | 5,470 | |||||
Investment funds (portion at fair value: 2017 – $97 and 2016 – $99) | 689 | 689 | |||||
Policy loans | 583 | 602 | |||||
Funds withheld at interest (portion at fair value: 2017 – $212 and 2016 – $140) | 6,593 | 6,538 | |||||
Derivative assets | 1,708 | 1,370 | |||||
Real estate (portion held for sale: 2017 – $23 and 2016 – $23) | 553 | 542 | |||||
Short-term investments, at fair value (cost: 2017 – $166 and 2016 – $189) | 166 | 189 | |||||
Other investments | 82 | 81 | |||||
Total investments | 73,055 | 70,448 | |||||
Cash and cash equivalents | 2,563 | 2,445 | |||||
Restricted cash | 73 | 57 | |||||
Investments in related parties | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities (amortized cost: 2017 – $359 and 2016 – $341) | 361 | 335 | |||||
Equity securities (cost: 2017 – $0 and 2016 – $20) | — | 20 | |||||
Trading securities, at fair value | 169 | 195 | |||||
Investment funds (portion at fair value: 2017 – $23 and 2016 – $0) | 1,276 | 1,198 | |||||
Short-term investments, at fair value (cost: 2017 – $20 and 2016 – $0) | 20 | — | |||||
Other investments | 238 | 237 | |||||
Accrued investment income (related party: 2017 – $9 and 2016 – $9) | 575 | 554 | |||||
Reinsurance recoverable (portion at fair value: 2017 – $1,738 and 2016 – $1,692) | 5,960 | 6,001 | |||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 2,875 | 2,940 | |||||
Current income tax recoverable | 12 | 107 | |||||
Deferred tax assets | 236 | 372 | |||||
Other assets | 817 | 869 | |||||
Assets of consolidated variable interest entities | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Equity securities – related party (cost: 2017 – $143 and 2016 – $143) | 191 | 161 | |||||
Trading securities, at fair value – related party | 166 | 167 | |||||
Investment funds (related party: 2017 – $588 and 2016 – $562; portion at fair value: 2017 – $567 and 2016 – $562) | 599 | 573 | |||||
Cash and cash equivalents | 2 | 14 | |||||
Other assets | 5 | 6 | |||||
Total assets | $ | 89,193 | $ | 86,699 |
(In millions, except share and per share data) | March 31, 2017 | December 31, 2016 | |||||
Liabilities and Equity | |||||||
Liabilities | |||||||
Interest sensitive contract liabilities (portion at fair value: 2017 – $7,132 and 2016 – $6,574) | $ | 62,634 | $ | 61,532 | |||
Future policy benefits (portion at fair value: 2017 – $2,415 and 2016 – $2,400) | 14,750 | 14,592 | |||||
Other policy claims and benefits | 214 | 217 | |||||
Dividends payable to policyholders | 917 | 974 | |||||
Derivative liabilities | 32 | 40 | |||||
Payables for collateral on derivatives | 1,681 | 1,383 | |||||
Funds withheld liability (portion at fair value: 2017 – $11 and 2016 – $6) | 382 | 380 | |||||
Other liabilities (related party: 2017 – $63 and 2016 – $56) | 985 | 688 | |||||
Liabilities of consolidated variable interest entities | 37 | 34 | |||||
Total liabilities | 81,632 | 79,840 | |||||
Equity | |||||||
Common stock | |||||||
Class A – par value $0.001 per share; authorized: 2017 and 2016 – 425,000,000 shares; issued and outstanding: 2017 – 101,563,650 and 2016 – 77,319,381 shares | — | — | |||||
Class B – par value $0.001 per share; convertible to Class A; authorized: 2017 and 2016 – 325,000,000 shares; issued and outstanding: 2017 – 87,775,578 and 2016 – 111,805,829 shares | — | — | |||||
Class M-1 – par value $0.001 per share; contingently convertible to Class A; authorized: 2017 and 2016 – 7,109,560 shares; issued and outstanding: 2017 – 3,431,547 and 2016 – 3,474,205 shares | — | — | |||||
Class M-2 – par value $0.001 per share; contingently convertible to Class A; authorized: 2017 and 2016 – 5,000,000 shares; issued and outstanding: 2017 – 974,563 and 2016 – 1,067,747 shares | — | — | |||||
Class M-3 – par value $0.001 per share; contingently convertible to Class A; authorized: 2017 and 2016 – 7,500,000 shares; issued and outstanding: 2017 – 1,346,650 and 2016 – 1,346,300 shares | — | — | |||||
Class M-4 – par value $0.001 per share; contingently convertible to Class A; authorized: 2017 and 2016 – 7,500,000 shares; issued and outstanding: 2017 – 5,345,432 and 2016 – 5,397,802 shares | — | — | |||||
Additional paid-in capital | 3,436 | 3,421 | |||||
Retained earnings | 3,452 | 3,070 | |||||
Accumulated other comprehensive income (related party: 2017 – $51 and 2016 – $12) | 673 | 367 | |||||
Total Athene Holding Ltd. shareholders' equity | 7,561 | 6,858 | |||||
Noncontrolling interest | — | 1 | |||||
Total equity | 7,561 | 6,859 | |||||
Total liabilities and equity | $ | 89,193 | $ | 86,699 |
Three months ended March 31, | |||||||
(In millions, except per share data) | 2017 | 2016 | |||||
Revenues | |||||||
Premiums | $ | 52 | $ | 60 | |||
Product charges | 81 | 66 | |||||
Net investment income (related party investment income: 2017 – $56 and 2016 – $45; and related party investment expense: 2017 – $78 and 2016 – $81) | 786 | 694 | |||||
Investment related gains (losses) (related party: 2017 – $(11) and 2016 – $(21)) | 682 | (84 | ) | ||||
Other-than-temporary impairment investment losses | |||||||
Other-than-temporary impairment losses | — | (22 | ) | ||||
Other-than-temporary impairment losses recognized in other comprehensive income | (1 | ) | 12 | ||||
Net other-than-temporary impairment losses | (1 | ) | (10 | ) | |||
Other revenues | 8 | 8 | |||||
Revenues of consolidated variable interest entities | |||||||
Net investment income (related party: 2017 – $10 and 2016 – $3) | 10 | 11 | |||||
Investment related gains (losses) (related party: 2017 – $1 and 2016 – $(14)) | 1 | (23 | ) | ||||
Total revenues | 1,619 | 722 | |||||
Benefits and Expenses | |||||||
Interest sensitive contract benefits | 692 | 255 | |||||
Amortization of deferred sales inducements | 18 | 4 | |||||
Future policy and other policy benefits | 214 | 224 | |||||
Amortization of deferred acquisition costs and value of business acquired | 104 | 29 | |||||
Dividends to policyholders | 32 | 17 | |||||
Policy and other operating expenses (related party: 2017 – $4 and 2016 – $0) | 153 | 104 | |||||
Operating expenses of consolidated variable interest entities | — | 4 | |||||
Total benefits and expenses | 1,213 | 637 | |||||
Income before income taxes | 406 | 85 | |||||
Income tax expense | 22 | — | |||||
Net income | 384 | 85 | |||||
Less: Net income attributable to noncontrolling interests | — | — | |||||
Net income available to Athene Holding Ltd. shareholders | $ | 384 | $ | 85 | |||
Earnings per share | |||||||
Basic – Classes A, B, M-1 and M-21 | $ | 2.00 | $ | 0.46 | |||
Diluted – Class A | 1.92 | 0.46 | |||||
Diluted – Class B | 2.00 | 0.46 | |||||
Diluted – Class M-11 | 2.00 | N/A | |||||
Diluted – Class M-21 | 0.08 | N/A | |||||
N/A – Not applicable | |||||||
1 Basic and diluted earnings per share for Class M-1 and M-2 were applicable only for the three months ended March 31, 2017. Refer to Note 9 – Earnings Per Share for further discussion. |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Net income | $ | 384 | $ | 85 | |||
Other comprehensive income, before tax | |||||||
Change in unrealized investment gains on available for sale securities | 419 | 303 | |||||
Change in noncredit component of other-than-temporary impairment losses, available-for-sale | 1 | (12 | ) | ||||
Comprehensive loss on hedging instruments | (5 | ) | (10 | ) | |||
Comprehensive income (loss) on pension adjustments | — | (1 | ) | ||||
Comprehensive gain on foreign currency translation adjustments | 2 | 3 | |||||
Other comprehensive income, before tax | 417 | 283 | |||||
Income tax expense related to other comprehensive income | 111 | 98 | |||||
Other comprehensive income, after tax | 306 | 185 | |||||
Comprehensive income | 690 | 270 | |||||
Less: comprehensive income attributable to noncontrolling interests | — | — | |||||
Comprehensive income available to Athene Holding Ltd. shareholders | $ | 690 | $ | 270 |
(In millions) | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total Athene Holding Ltd. shareholders' equity | Noncontrolling interest | Total equity | ||||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 3,281 | $ | 2,308 | $ | (237 | ) | $ | 5,352 | $ | 1 | $ | 5,353 | ||||||||||||
Net income | — | — | 85 | — | 85 | — | 85 | ||||||||||||||||||||
Other comprehensive income | — | — | — | 185 | 185 | — | 185 | ||||||||||||||||||||
Issuance of shares, net of expenses | — | 1 | — | — | 1 | — | 1 | ||||||||||||||||||||
Stock-based compensation | — | 3 | — | — | 3 | — | 3 | ||||||||||||||||||||
Balance at March 31, 2016 | $ | — | $ | 3,285 | $ | 2,393 | $ | (52 | ) | $ | 5,626 | $ | 1 | $ | 5,627 | ||||||||||||
Balance at December 31, 2016 | $ | — | $ | 3,421 | $ | 3,070 | $ | 367 | $ | 6,858 | $ | 1 | $ | 6,859 | |||||||||||||
Net income | — | — | 384 | — | 384 | — | 384 | ||||||||||||||||||||
Other comprehensive income | — | — | — | 306 | 306 | — | 306 | ||||||||||||||||||||
Stock-based compensation | — | 15 | — | — | 15 | — | 15 | ||||||||||||||||||||
Retirement or repurchase of shares | — | — | (2 | ) | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Other changes in equity of noncontrolling interests | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Balance at March 31, 2017 | $ | — | $ | 3,436 | $ | 3,452 | $ | 673 | $ | 7,561 | $ | — | $ | 7,561 |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Cash flows from operating activities | |||||||
Net income | $ | 384 | $ | 85 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Amortization of deferred acquisition costs and value of business acquired | 104 | 29 | |||||
Amortization of deferred sales inducements | 18 | 4 | |||||
Amortization (accretion) of net investment premiums, discounts, and other | (54 | ) | (74 | ) | |||
Stock-based compensation | 13 | (15 | ) | ||||
Net investment income (related party: 2017 – $(27) and 2016 – $5) | (30 | ) | 25 | ||||
Net recognized (gains) losses on investments and derivatives (related party: 2017 – $10 and 2016 – $14) | (547 | ) | 111 | ||||
Policy acquisition costs deferred | (105 | ) | (97 | ) | |||
Deferred income tax expense (benefit) | 22 | 6 | |||||
Changes in operating assets and liabilities: | |||||||
Accrued investment income | (21 | ) | 1 | ||||
Interest sensitive contract liabilities | 655 | 312 | |||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | (18 | ) | (77 | ) | |||
Current income tax recoverable | 95 | 39 | |||||
Funds withheld assets and liabilities | (91 | ) | 10 | ||||
Other assets and liabilities | 4 | 7 | |||||
Consolidated variable interest entities related: | |||||||
Net recognized (gains) losses on investments and derivatives (related party: 2017 – $(1) and 2016 – $14) | (1 | ) | 23 | ||||
Change in other assets and liabilities | 1 | (1 | ) | ||||
Net cash provided by operating activities | 429 | 388 | |||||
(Continued) | |||||||
See accompanying notes to the unaudited condensed consolidated financial statements |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Cash flows from investing activities | |||||||
Sales, maturities, and repayments of: | |||||||
Available-for-sale securities | |||||||
Fixed maturity securities (related party: 2017 – $7 and 2016 – $9) | $ | 2,688 | $ | 2,518 | |||
Equity securities (related party: 2017 – $22 and 2016 – $0) | 120 | 5 | |||||
Trading securities (related party: 2017 – $14 and 2016 – $24) | 92 | 235 | |||||
Mortgage loans | 281 | 146 | |||||
Investment funds (related party: 2017 – $23 and 2016 – $37) | 52 | 56 | |||||
Derivative instruments and other invested assets | 360 | 59 | |||||
Short-term investments (related party: 2017 – $0 and 2016 – $55) | 95 | 133 | |||||
Purchases of: | |||||||
Available-for-sale securities | |||||||
Fixed maturity securities (related party: 2017 – $(25) and 2016 – $0) | (4,274 | ) | (1,810 | ) | |||
Equity securities | (157 | ) | (82 | ) | |||
Trading securities (related party: 2017 – $0 and 2016 – $(24)) | (71 | ) | (242 | ) | |||
Mortgage loans | (265 | ) | (344 | ) | |||
Investment funds (related party: 2017 – $(71) and 2016 – $(85)) | (94 | ) | (98 | ) | |||
Derivative instruments and other invested assets | (189 | ) | (157 | ) | |||
Real estate | (7 | ) | (6 | ) | |||
Short-term investments (related party: 2017 – $(20) and 2016 – $0) | (93 | ) | (427 | ) | |||
Consolidated variable interest entities related: | |||||||
Sales, maturities, and repayments of investments (related party: 2017 – $0 and 2016 – $3) | — | 6 | |||||
Purchases of investments (related party: 2017 – $(21) and 2016 – $(10)) | (21 | ) | (10 | ) | |||
Change in restricted cash | — | (4 | ) | ||||
Cash settlement of derivatives | (8 | ) | 9 | ||||
Change in restricted cash | (16 | ) | 43 | ||||
Other investing activities, net | 363 | 85 | |||||
Net cash (used in) provided by investing activities | (1,144 | ) | 115 | ||||
Cash flows from financing activities | |||||||
Capital contributions | — | 1 | |||||
Deposits on investment-type policies and contracts | 1,925 | 784 | |||||
Withdrawals on investment-type policies and contracts | (1,399 | ) | (1,185 | ) | |||
Payments for coinsurance agreements on investment-type contracts, net | (10 | ) | (21 | ) | |||
Net change in cash collateral posted for derivative transactions | 298 | (106 | ) | ||||
Repurchase of common stock | (2 | ) | (1 | ) | |||
Other financing activities, net | 5 | 32 | |||||
Net cash provided by (used in) financing activities | 817 | (496 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 4 | 10 | |||||
Net increase in cash and cash equivalents | 106 | 17 | |||||
Cash and cash equivalents at beginning of year1 | 2,459 | 2,720 | |||||
Cash and cash equivalents at end of period1 | $ | 2,565 | $ | 2,737 | |||
Supplementary information | |||||||
Non-cash transactions | |||||||
Deposits on investment-type policies and contracts through reinsurance agreements | $ | 169 | $ | 899 | |||
Withdrawals on investment-type policies and contracts through reinsurance agreements | 182 | 79 | |||||
Investments received from settlements on reinsurance agreements | 24 | — | |||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
• | Athene Life Re Ltd., a Bermuda exempted company to which AHL's other insurance subsidiaries and third party ceding companies directly and indirectly reinsure a portion of their liabilities (ALRe); |
• | Athene USA Corporation, an Iowa corporation and its subsidiaries (Athene USA); and |
• | Athene Deutschland GmbH & Co. KG, a German partnership and its subsidiaries (ADKG). |
March 31, 2017 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Assets | |||||||||||
Investments | |||||||||||
Available-for-sale securities, at fair value | |||||||||||
Fixed maturity securities | $ | 54,225 | $ | (14 | ) | $ | 54,211 | ||||
Policy loans | 579 | 4 | 583 | ||||||||
Total investments | 73,065 | (10 | ) | 73,055 | |||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 2,895 | (20 | ) | 2,875 | |||||||
Deferred tax assets | 233 | 3 | 236 | ||||||||
Total assets | $ | 89,220 | $ | (27 | ) | $ | 89,193 |
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Future policy benefits | $ | 14,727 | $ | 23 | $ | 14,750 | |||||
Other liabilities | 999 | (14 | ) | 985 | |||||||
Total liabilities | 81,623 | 9 | 81,632 | ||||||||
Equity | |||||||||||
Retained earnings | 3,488 | (36 | ) | 3,452 | |||||||
Total Athene Holding Ltd. shareholders' equity | 7,597 | (36 | ) | 7,561 | |||||||
Total equity | 7,597 | (36 | ) | 7,561 | |||||||
Total liabilities and equity | $ | 89,220 | $ | (27 | ) | $ | 89,193 |
December 31, 2016 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Assets | |||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | $ | 2,964 | $ | (24 | ) | $ | 2,940 | ||||
Deferred tax assets | 369 | 3 | 372 | ||||||||
Total assets | $ | 86,720 | $ | (21 | ) | $ | 86,699 | ||||
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Future policy benefits | $ | 14,569 | $ | 23 | $ | 14,592 | |||||
Other liabilities | 685 | 3 | 688 | ||||||||
Total liabilities | 79,814 | 26 | 79,840 | ||||||||
Equity | |||||||||||
Retained earnings | 3,117 | (47 | ) | 3,070 | |||||||
Accumulated other comprehensive income (loss) | 367 | — | 367 | ||||||||
Total Athene Holding Ltd. shareholders' equity | 6,905 | (47 | ) | 6,858 | |||||||
Noncontrolling interest | 1 | — | 1 | ||||||||
Total equity | 6,906 | (47 | ) | 6,859 | |||||||
Total liabilities and equity | $ | 86,720 | $ | (21 | ) | $ | 86,699 | ||||
Three months ended March 31, 2017 | |||||||||||
(In millions, except per share data) | As Previously Reported | Revisions | As Adjusted | ||||||||
Revenue | |||||||||||
Total revenues | $ | 1,619 | $ | — | $ | 1,619 | |||||
Benefits and Expenses | |||||||||||
Interest sensitive contract benefits | 696 | (4 | ) | 692 | |||||||
Amortization of deferred acquisition costs and value of business acquired | 108 | (4 | ) | 104 | |||||||
Policy and other operating expenses | 156 | (3 | ) | 153 | |||||||
Total benefits and expenses | 1,224 | (11 | ) | 1,213 | |||||||
Income before income taxes | 395 | 11 | 406 | ||||||||
Income tax expense | 22 | — | 22 | ||||||||
Net income | 373 | 11 | 384 | ||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ | 373 | $ | 11 | $ | 384 | |||||
Earnings per share on Class A and B shares | |||||||||||
Basic – Classes A, B, M-1 and M-2 | $ | 1.94 | $ | 0.06 | $ | 2.00 | |||||
Diluted – Class A | 1.87 | 0.05 | 1.92 | ||||||||
Diluted – Class B | 1.94 | 0.06 | 2.00 | ||||||||
Diluted – Class M-1 | 1.94 | 0.06 | 2.00 | ||||||||
Diluted – Class M-2 | 0.08 | — | 0.08 | ||||||||
Three months ended March 31, 2016 | |||||||||||
(In millions, except per share data) | As Previously Reported | Revisions | As Adjusted | ||||||||
Revenue | |||||||||||
Net investment income | $ | 692 | $ | 2 | $ | 694 | |||||
Investment related gains (losses) | (82 | ) | (2 | ) | (84 | ) | |||||
Total revenues | 722 | — | 722 | ||||||||
Benefits and Expenses | |||||||||||
Interest sensitive contract benefits | 253 | 2 | 255 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 28 | 1 | 29 | ||||||||
Total benefits and expenses | 634 | 3 | 637 | ||||||||
Income before income taxes | 88 | (3 | ) | 85 | |||||||
Income tax expense | 1 | (1 | ) | — | |||||||
Net income | 87 | (2 | ) | 85 | |||||||
Less: Net income attributable to noncontrolling interests | — | — | — | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ | 87 | $ | (2 | ) | $ | 85 | ||||
Earnings per share on Class A and B shares | |||||||||||
Basic | $ | 0.47 | $ | (0.01 | ) | $ | 0.46 | ||||
Diluted | $ | 0.47 | $ | (0.01 | ) | $ | 0.46 | ||||
Three months ended March 31, 2017 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 373 | $ | 11 | $ | 384 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of deferred acquisition costs and value of business acquired | 108 | (4 | ) | 104 | |||||||
Stock-based compensation | 16 | (3 | ) | 13 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Interest sensitive contract liabilities | 659 | (4 | ) | 655 | |||||||
Net cash provided by operating activities | 429 | — | 429 | ||||||||
Cash flows from investing activities | |||||||||||
Purchases of: | |||||||||||
Available-for-sale, fixed maturity securities | (4,288 | ) | 14 | (4,274 | ) | ||||||
Other investing activities, net | 381 | (18 | ) | 363 | |||||||
Net cash used in investing activities | (1,140 | ) | (4 | ) | (1,144 | ) | |||||
Cash flows from financing activities | |||||||||||
Withdrawals on investment-type policies and contracts | (1,403 | ) | 4 | (1,399 | ) | ||||||
Net cash provided by financing activities | 813 | 4 | 817 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 4 | — | 4 | ||||||||
Net increase in cash and cash equivalents | 106 | — | 106 | ||||||||
Cash and cash equivalents at beginning of year1 | 2,459 | — | 2,459 | ||||||||
Cash and cash equivalents at end of period1 | $ | 2,565 | $ | — | $ | 2,565 | |||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
Three months ended March 31, 2016 | |||||||||||
(In millions) | As Previously Reported | Revisions | As Adjusted | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 87 | $ | (2 | ) | $ | 85 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of deferred acquisition costs and value of business acquired | 28 | 1 | 29 | ||||||||
Deferred income tax expense | 7 | (1 | ) | 6 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Interest sensitive contract liabilities | 310 | 2 | 312 | ||||||||
Funds withheld assets and liabilities | 8 | 2 | 10 | ||||||||
Other assets and liabilities | 9 | (2 | ) | 7 | |||||||
Net cash provided by operating activities | 388 | — | 388 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash provided by investing activities | 115 | — | 115 | ||||||||
Cash flows from financing activities | |||||||||||
Net cash used in financing activities | (496 | ) | — | (496 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 10 | — | 10 | ||||||||
Net increase in cash and cash equivalents | 17 | — | 17 | ||||||||
Cash and cash equivalents at beginning of year1 | 2,720 | — | 2,720 | ||||||||
Cash and cash equivalents at end of period1 | $ | 2,737 | $ | — | $ | 2,737 | |||||
1 Includes cash and cash equivalents of consolidated variable interest entities |
March 31, 2017 | |||||||||||||||||||
(In millions) | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI | ||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 59 | $ | 1 | $ | — | $ | 60 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,016 | 125 | (1 | ) | 1,140 | — | |||||||||||||
Foreign governments | 1,959 | 87 | (15 | ) | 2,031 | — | |||||||||||||
Corporate | 30,806 | 1,021 | (260 | ) | 31,567 | 2 | |||||||||||||
CLO | 5,025 | 34 | (52 | ) | 5,007 | — | |||||||||||||
ABS | 3,279 | 34 | (53 | ) | 3,260 | — | |||||||||||||
CMBS | 1,835 | 46 | (21 | ) | 1,860 | — | |||||||||||||
RMBS | 8,857 | 458 | (29 | ) | 9,286 | 14 | |||||||||||||
Total fixed maturity securities | 52,836 | 1,806 | (431 | ) | 54,211 | 16 | |||||||||||||
Equity securities | 381 | 42 | (1 | ) | 422 | — | |||||||||||||
Total AFS securities | 53,217 | 1,848 | (432 | ) | 54,633 | 16 | |||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||
CLO | 304 | 3 | (1 | ) | 306 | — | |||||||||||||
ABS | 55 | — | — | 55 | — | ||||||||||||||
Total fixed maturity securities – related party | 359 | 3 | (1 | ) | 361 | — | |||||||||||||
Total AFS securities including related party | $ | 53,576 | $ | 1,851 | $ | (433 | ) | $ | 54,994 | $ | 16 |
December 31, 2016 | |||||||||||||||||||
(In millions) | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI | ||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 59 | $ | 1 | $ | — | $ | 60 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,024 | 117 | (1 | ) | 1,140 | — | |||||||||||||
Foreign governments | 2,098 | 143 | (6 | ) | 2,235 | — | |||||||||||||
Corporate | 29,433 | 901 | (314 | ) | 30,020 | 2 | |||||||||||||
CLO | 4,950 | 14 | (142 | ) | 4,822 | — | |||||||||||||
ABS | 2,980 | 25 | (69 | ) | 2,936 | — | |||||||||||||
CMBS | 1,835 | 38 | (26 | ) | 1,847 | — | |||||||||||||
RMBS | 8,731 | 313 | (71 | ) | 8,973 | 15 | |||||||||||||
Total fixed maturity securities | 51,110 | 1,552 | (629 | ) | 52,033 | 17 | |||||||||||||
Equity securities | 319 | 35 | (1 | ) | 353 | — | |||||||||||||
Total AFS securities | 51,429 | 1,587 | (630 | ) | 52,386 | 17 | |||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||
CLO | 284 | 1 | (6 | ) | 279 | — | |||||||||||||
ABS | 57 | — | (1 | ) | 56 | — | |||||||||||||
Total fixed maturity securities – related party | 341 | 1 | (7 | ) | 335 | — | |||||||||||||
Equity securities – related party | 20 | — | — | 20 | — | ||||||||||||||
Total AFS securities – related party | 361 | 1 | (7 | ) | 355 | — | |||||||||||||
Total AFS securities including related party | $ | 51,790 | $ | 1,588 | $ | (637 | ) | $ | 52,741 | $ | 17 |
March 31, 2017 | |||||||
(In millions) | Amortized Cost | Fair Value | |||||
Due in one year or less | $ | 696 | $ | 698 | |||
Due after one year through five years | 7,408 | 7,564 | |||||
Due after five years through ten years | 11,345 | 11,629 | |||||
Due after ten years | 14,391 | 14,907 | |||||
CLO, ABS, CMBS and RMBS | 18,996 | 19,413 | |||||
Total AFS fixed maturity securities | 52,836 | 54,211 | |||||
Fixed maturity securities – related party, CLO and ABS | 359 | 361 | |||||
Total AFS fixed maturity securities including related party | $ | 53,195 | $ | 54,572 |
March 31, 2017 | |||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||
(In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. government and agencies | $ | 16 | $ | — | $ | — | $ | — | $ | 16 | $ | — | |||||||||||
U.S. state, municipal and political subdivisions | 65 | (1 | ) | 2 | — | 67 | (1 | ) | |||||||||||||||
Foreign governments | 314 | (15 | ) | 10 | — | 324 | (15 | ) | |||||||||||||||
Corporate | 5,565 | (197 | ) | 949 | (63 | ) | 6,514 | (260 | ) | ||||||||||||||
CLO | 318 | (3 | ) | 1,906 | (49 | ) | 2,224 | (52 | ) | ||||||||||||||
ABS | 776 | (7 | ) | 756 | (46 | ) | 1,532 | (53 | ) | ||||||||||||||
CMBS | 410 | (12 | ) | 205 | (9 | ) | 615 | (21 | ) | ||||||||||||||
RMBS | 854 | (16 | ) | 534 | (13 | ) | 1,388 | (29 | ) | ||||||||||||||
Total fixed maturity securities | 8,318 | (251 | ) | 4,362 | (180 | ) | 12,680 | (431 | ) | ||||||||||||||
Equity securities | 240 | (1 | ) | — | — | 240 | (1 | ) | |||||||||||||||
Total AFS securities | 8,558 | (252 | ) | 4,362 | (180 | ) | 12,920 | (432 | ) | ||||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||||||
CLO | 25 | — | 31 | (1 | ) | 56 | (1 | ) | |||||||||||||||
ABS | — | — | 50 | — | 50 | — | |||||||||||||||||
Total fixed maturity securities – related party | 25 | — | 81 | (1 | ) | 106 | (1 | ) | |||||||||||||||
Total AFS securities including related party | $ | 8,583 | $ | (252 | ) | $ | 4,443 | $ | (181 | ) | $ | 13,026 | $ | (433 | ) |
December 31, 2016 | |||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||
(In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
U.S. government and agencies | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | — | |||||||||||
U.S. state, municipal and political subdivisions | 85 | (1 | ) | 2 | — | 87 | (1 | ) | |||||||||||||||
Foreign governments | 137 | (5 | ) | 9 | (1 | ) | 146 | (6 | ) | ||||||||||||||
Corporate | 6,136 | (228 | ) | 1,113 | (86 | ) | 7,249 | (314 | ) | ||||||||||||||
CLO | 388 | (2 | ) | 3,102 | (140 | ) | 3,490 | (142 | ) | ||||||||||||||
ABS | 865 | (17 | ) | 767 | (52 | ) | 1,632 | (69 | ) | ||||||||||||||
CMBS | 576 | (18 | ) | 183 | (8 | ) | 759 | (26 | ) | ||||||||||||||
RMBS | 1,143 | (19 | ) | 1,727 | (52 | ) | 2,870 | (71 | ) | ||||||||||||||
Total fixed maturity securities | 9,331 | (290 | ) | 6,903 | (339 | ) | 16,234 | (629 | ) | ||||||||||||||
Equity securities | 179 | (1 | ) | — | — | 179 | (1 | ) | |||||||||||||||
Total AFS securities | 9,510 | (291 | ) | 6,903 | (339 | ) | 16,413 | (630 | ) | ||||||||||||||
Fixed maturity securities – related party | |||||||||||||||||||||||
CLO | 68 | — | 100 | (6 | ) | 168 | (6 | ) | |||||||||||||||
ABS | — | — | 56 | (1 | ) | 56 | (1 | ) | |||||||||||||||
Total fixed maturity securities – related party | 68 | — | 156 | (7 | ) | 224 | (7 | ) | |||||||||||||||
Equity securities – related party | 14 | — | — | — | 14 | — | |||||||||||||||||
Total AFS securities – related party | 82 | — | 156 | (7 | ) | 238 | (7 | ) | |||||||||||||||
Total AFS securities including related party | $ | 9,592 | $ | (291 | ) | $ | 7,059 | $ | (346 | ) | $ | 16,651 | $ | (637 | ) |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Beginning balance | $ | 16 | $ | 22 | |||
Initial impairments – credit loss OTTI recognized on securities not previously impaired | — | 7 | |||||
Additional impairments – credit loss OTTI recognized on securities previously impaired | — | 2 | |||||
Ending balance | $ | 16 | $ | 31 |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
AFS securities | |||||||
Fixed maturity securities | $ | 620 | $ | 589 | |||
Equity securities | 2 | 2 | |||||
Trading securities | 51 | 63 | |||||
Mortgage loans, net of allowances | 85 | 83 | |||||
Investment funds | 55 | 14 | |||||
Funds withheld at interest | 36 | 13 | |||||
Other | 17 | 12 | |||||
Investment revenue | 866 | 776 | |||||
Investment expenses | (80 | ) | (82 | ) | |||
Net investment income | $ | 786 | $ | 694 |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
AFS fixed maturity securities | |||||||
Gross realized gain on investment activity | $ | 28 | $ | 36 | |||
Gross realized loss on investment activity | (8 | ) | (32 | ) | |||
Net realized investment gains on fixed maturity securities | 20 | 4 | |||||
Net realized investment gains (losses) on trading securities | 2 | 12 | |||||
Derivative gains (losses) | 654 | (94 | ) | ||||
Other gains (losses) | 6 | (6 | ) | ||||
Investment related gains (losses) | $ | 682 | $ | (84 | ) |
Fixed maturity securities | Mortgage loans | ||||||||||||||
(In millions) | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | |||||||||||
Contractually required payments1 | $ | 7,932 | $ | 7,761 | $ | 693 | $ | 424 | |||||||
Less: Cash flows expected to be collected2 | (5,367 | ) | (5,285 | ) | (475 | ) | (286 | ) | |||||||
Non-accretable difference | $ | 2,565 | $ | 2,476 | $ | 218 | $ | 138 | |||||||
Cash flows expected to be collected | $ | 5,367 | $ | 5,285 | $ | 475 | $ | 286 | |||||||
Less: Amortized cost | (3,964 | ) | (3,892 | ) | (362 | ) | (220 | ) | |||||||
Accretable difference | $ | 1,403 | $ | 1,393 | $ | 113 | $ | 66 | |||||||
Fair value | $ | 4,187 | $ | 4,029 | $ | 364 | $ | 221 | |||||||
1 Includes principal and accrued interest. | |||||||||||||||
2 Represents the undiscounted principal and interest cash flows expected. |
Three months ended March 31, 2017 | |||||||
(In millions) | Fixed maturity securities | Mortgage loans | |||||
Contractually required principal and interest | $ | 574 | $ | 298 | |||
Expected cash flows | 364 | 205 | |||||
Estimated fair value | 264 | 147 |
Three months ended March 31, 2017 | |||||||
(In millions) | Fixed maturity securities | Mortgage loans | |||||
Beginning balance at January 1 | $ | 1,393 | $ | 66 | |||
Purchases of PCI investments, net of sales | 58 | 57 | |||||
Accretion | (30 | ) | — | ||||
Changes in expected cash flows | (18 | ) | (10 | ) | |||
Ending balance at March 31 | $ | 1,403 | $ | 113 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Commercial mortgage loans | $ | 4,905 | $ | 5,058 | |||
Commercial mortgage loans under development | 74 | 74 | |||||
Total commercial mortgage loans | 4,979 | 5,132 | |||||
Residential mortgage loans | 474 | 338 | |||||
Mortgage loans, net of allowances | $ | 5,453 | $ | 5,470 |
March 31, 2017 | December 31, 2016 | ||||||||||||
(In millions, except for percentages) | Net Carrying Value | Percentage of Total | Net Carrying Value | Percentage of Total | |||||||||
Property type | |||||||||||||
Hotels | $ | 998 | 20.0 | % | $ | 1,025 | 20.0 | % | |||||
Retail | 1,138 | 22.8 | % | 1,135 | 22.1 | % | |||||||
Office building | 1,139 | 22.9 | % | 1,217 | 23.7 | % | |||||||
Industrial | 682 | 13.7 | % | 742 | 14.5 | % | |||||||
Apartment | 572 | 11.5 | % | 616 | 12.0 | % | |||||||
Other commercial | 450 | 9.1 | % | 397 | 7.7 | % | |||||||
Total commercial mortgage loans | $ | 4,979 | 100.0 | % | $ | 5,132 | 100.0 | % | |||||
U.S. Region | |||||||||||||
East North Central | $ | 405 | 8.1 | % | $ | 450 | 8.8 | % | |||||
East South Central | 148 | 3.0 | % | 158 | 3.1 | % | |||||||
Middle Atlantic | 662 | 13.3 | % | 628 | 12.2 | % | |||||||
Mountain | 538 | 10.8 | % | 543 | 10.6 | % | |||||||
New England | 192 | 3.9 | % | 194 | 3.8 | % | |||||||
Pacific | 810 | 16.3 | % | 833 | 16.2 | % | |||||||
South Atlantic | 1,192 | 23.9 | % | 1,284 | 25.0 | % | |||||||
West North Central | 296 | 5.9 | % | 306 | 6.0 | % | |||||||
West South Central | 663 | 13.3 | % | 662 | 12.9 | % | |||||||
Total U.S. Region | 4,906 | 98.5 | % | 5,058 | 98.6 | % | |||||||
International Region | 73 | 1.5 | % | 74 | 1.4 | % | |||||||
Total commercial mortgage loans | $ | 4,979 | 100.0 | % | $ | 5,132 | 100.0 | % |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Current (less than 30 days past due) | $ | 4,962 | $ | 5,111 | |||
Over 90 days past due | 17 | 21 | |||||
Total commercial mortgage loans | $ | 4,979 | $ | 5,132 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Less than 50% | $ | 1,698 | $ | 1,787 | |||
50% to 60% | 1,333 | 1,337 | |||||
61% to 70% | 1,379 | 1,401 | |||||
71% to 100% | 461 | 492 | |||||
Greater than 100% | 34 | 41 | |||||
Commercial mortgage loans | $ | 4,905 | $ | 5,058 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Greater than 1.20x | $ | 4,345 | $ | 4,378 | |||
1.00x – 1.20x | 246 | 353 | |||||
Less than 1.00x | 314 | 327 | |||||
Commercial mortgage loans | $ | 4,905 | $ | 5,058 |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||
(In millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Derivatives designated as hedges | |||||||||||||||||||||
Foreign currency swaps | 384 | $ | 10 | $ | 8 | 289 | $ | 11 | $ | 4 | |||||||||||
Interest rate swaps | 302 | — | — | 302 | — | 14 | |||||||||||||||
Total derivatives designated as hedges | 10 | 8 | 11 | 18 | |||||||||||||||||
Derivatives not designated as hedges | |||||||||||||||||||||
Equity options | 27,751 | 1,680 | 2 | 26,822 | 1,336 | — | |||||||||||||||
Futures | 8 | 10 | 1 | — | 9 | — | |||||||||||||||
Total return swaps | 110 | — | — | 41 | 2 | — | |||||||||||||||
Foreign currency swaps | 42 | 5 | — | 43 | 5 | — | |||||||||||||||
Interest rate swaps | 469 | 1 | 3 | 568 | 1 | 5 | |||||||||||||||
Credit default swaps | 10 | — | 7 | 10 | — | 7 | |||||||||||||||
Foreign currency forwards | 1,150 | 2 | 11 | 805 | 6 | 10 | |||||||||||||||
Embedded derivatives | |||||||||||||||||||||
Funds withheld | — | 212 | 11 | — | 140 | 6 | |||||||||||||||
Interest sensitive contract liabilities | — | — | 5,793 | — | — | 5,283 | |||||||||||||||
Total derivatives not designated as hedges | 1,910 | 5,828 | 1,499 | 5,311 | |||||||||||||||||
Total derivatives | $ | 1,920 | $ | 5,836 | $ | 1,510 | $ | 5,329 |
(In millions) | Three months ended March 31, 2017 | ||
Loss recognized on derivative | $ | (1 | ) |
Gain recognized on hedged item | 1 | ||
Ineffectiveness recognized on fair value hedges | $ | — |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Equity options | $ | 528 | $ | (121 | ) | ||
Futures | (10 | ) | (3 | ) | |||
Total return swaps | 5 | 1 | |||||
Foreign currency swaps | — | 6 | |||||
Interest rate swaps | — | (3 | ) | ||||
Foreign currency forwards | 1 | — | |||||
Embedded derivatives on funds withheld | 130 | 26 | |||||
Amounts recognized in investment related gains (losses) | 654 | (94 | ) | ||||
Embedded derivatives in indexed annuity products1 | (431 | ) | (15 | ) | |||
Total gains (losses) for derivatives not designated as hedges | $ | 223 | $ | (109 | ) | ||
1 Included in interest sensitive contract benefits. |
Gross amounts not offset on the condensed consolidated balance sheets | |||||||||||||||||||||||
(In millions) | Gross amount recognized1 | Financial instruments2 | Collateral received/pledged | Net amount | Off-balance sheet securities collateral3 | Net amount after securities collateral | |||||||||||||||||
March 31, 2017 | |||||||||||||||||||||||
Derivative assets | $ | 1,708 | $ | (11 | ) | $ | (1,681 | ) | $ | 16 | $ | (22 | ) | $ | (6 | ) | |||||||
Derivative liabilities | (32 | ) | 11 | 11 | (10 | ) | — | (10 | ) | ||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Derivative assets | $ | 1,370 | $ | (8 | ) | $ | (1,383 | ) | $ | (21 | ) | $ | (26 | ) | $ | (47 | ) | ||||||
Derivative liabilities | (40 | ) | 8 | 25 | (7 | ) | — | (7 | ) | ||||||||||||||
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of March 31, 2017 and December 31, 2016, amounts that are not subject to master netting agreements or similar agreements were immaterial. | |||||||||||||||||||||||
2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets. | |||||||||||||||||||||||
3 For securities collateral received, we do not have the right to sell or re-pledge the collateral. As such, we do not record the securities on the condensed consolidated balance sheets. |
March 31, 2017 | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets of consolidated variable interest entities | |||||||||||||||
Investments | |||||||||||||||
AFS securities | |||||||||||||||
Equity securities | $ | 191 | $ | 191 | $ | — | $ | — | |||||||
Trading securities | |||||||||||||||
Fixed maturity securities | 50 | — | — | 50 | |||||||||||
Equity securities | 116 | 84 | — | 32 | |||||||||||
Investment funds | 567 | — | — | 567 | |||||||||||
Cash and cash equivalents | 2 | 2 | — | — | |||||||||||
Total assets of consolidated VIEs measured at fair value | $ | 926 | $ | 277 | $ | — | $ | 649 |
December 31, 2016 | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets of consolidated variable interest entities | |||||||||||||||
Investments | |||||||||||||||
AFS securities | |||||||||||||||
Equity securities | $ | 161 | $ | 161 | $ | — | $ | — | |||||||
Trading securities | |||||||||||||||
Fixed maturity securities | 50 | — | — | 50 | |||||||||||
Equity securities | 117 | 74 | — | 43 | |||||||||||
Investment funds | 562 | — | — | 562 | |||||||||||
Cash and cash equivalents | 14 | 14 | — | — | |||||||||||
Total assets of consolidated VIEs measured at fair value | $ | 904 | $ | 249 | $ | — | $ | 655 |
Three months ended March 31, 2017 | |||||||||||||||||||||||||||||||
(In millions) | Beginning Balance | Total realized and unrealized gains (losses) included in income | Purchases | Sales | Transfers in (out) | Other | Ending Balance | Total gains (losses) included in earnings1 | |||||||||||||||||||||||
Assets of consolidated variable interest entities | |||||||||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50 | $ | — | |||||||||||||||
Equity securities | 43 | (11 | ) | — | — | — | — | 32 | (11 | ) | |||||||||||||||||||||
Investment funds | 562 | 5 | — | — | — | — | 567 | 5 | |||||||||||||||||||||||
Total Level 3 assets of consolidated VIEs | $ | 655 | $ | (6 | ) | $ | — | $ | — | $ | — | $ | — | $ | 649 | $ | (6 | ) | |||||||||||||
1 Related to instruments held at end of period. |
Three months ended March 31, 2016 | |||||||||||||||||||||||||||||||
(In millions) | Beginning Balance | Total realized and unrealized gains (losses) included in income | Purchases | Sales | Transfers in (out) | Other | Ending Balance | Total gains (losses) included in earnings1 | |||||||||||||||||||||||
Assets of consolidated variable interest entities | |||||||||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 53 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 53 | $ | — | |||||||||||||||
Equity securities | 38 | — | 2 | — | — | — | 40 | — | |||||||||||||||||||||||
Investment funds | 516 | 4 | 8 | (3 | ) | — | — | 525 | 4 | ||||||||||||||||||||||
Total Level 3 assets of consolidated VIEs | $ | 607 | $ | 4 | $ | 10 | $ | (3 | ) | $ | — | $ | — | $ | 618 | $ | 4 | ||||||||||||||
1 Related to instruments held at end of period. |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Trading securities, equity securities | $ | (4 | ) | $ | (18 | ) | |
Investment funds | 5 | 4 | |||||
Total gains (losses) | $ | 1 | $ | (14 | ) |
March 31, 2017 | December 31, 2016 | ||||||||||||||
(In millions) | Carrying Value | Maximum Loss Exposure | Carrying Value | Maximum Loss Exposure | |||||||||||
Investment funds | $ | 689 | $ | 1,048 | $ | 689 | $ | 1,026 | |||||||
Investment in related parties – investment funds | 1,276 | 1,546 | 1,198 | 1,485 | |||||||||||
Assets of consolidated variable interest entities – investment funds | 599 | 621 | 573 | 593 | |||||||||||
Investment in fixed maturity securities | 19,981 | 19,564 | 19,171 | 19,090 | |||||||||||
Investment in related parties – fixed maturity securities | 530 | 528 | 530 | 536 | |||||||||||
Total non-consolidated VIEs | $ | 23,075 | $ | 23,307 | $ | 22,161 | $ | 22,730 |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||
(In millions, except for percentages and years) | Carrying value | Percent of total | Life of underlying funds in years | Carrying value | Percent of total | Life of underlying funds in years | |||||||||||||||
Investment funds | |||||||||||||||||||||
Private equity | $ | 245 | 35.6 | % | 0 | – | 7 | $ | 268 | 38.9 | % | 0 | – | 7 | |||||||
Mortgage and real estate | 143 | 20.8 | % | 0 | – | 6 | 118 | 17.2 | % | 0 | – | 4 | |||||||||
Natural resources | 5 | 0.7 | % | 0 | – | 1 | 5 | 0.7 | % | 1 | – | 2 | |||||||||
Hedge funds | 69 | 10.0 | % | 0 | – | 3 | 72 | 10.4 | % | 0 | – | 3 | |||||||||
Credit funds | 227 | 32.9 | % | 0 | – | 5 | 226 | 32.8 | % | 0 | – | 5 | |||||||||
Total investment funds | 689 | 100.0 | % | 689 | 100.0 | % | |||||||||||||||
Investment funds – related parties | |||||||||||||||||||||
Private equity – A-A Mortgage1 | 366 | 28.7 | % | 5 | – | 5 | 343 | 28.6 | % | 3 | – | 3 | |||||||||
Private equity – other | 152 | 11.9 | % | 0 | – | 10 | 131 | 11.0 | % | 0 | – | 10 | |||||||||
Mortgage and real estate | 262 | 20.5 | % | 0 | – | 4 | 247 | 20.6 | % | 1 | – | 4 | |||||||||
Natural resources | 76 | 6.0 | % | 5 | – | 5 | 49 | 4.1 | % | 5 | – | 5 | |||||||||
Hedge funds | 180 | 14.1 | % | 9 | – | 9 | 192 | 16.0 | % | 9 | – | 9 | |||||||||
Credit funds | 240 | 18.8 | % | 1 | – | 3 | 236 | 19.7 | % | 2 | – | 3 | |||||||||
Total investment funds – related parties | 1,276 | 100.0 | % | 1,198 | 100.0 | % | |||||||||||||||
Investment funds owned by consolidated VIEs | |||||||||||||||||||||
Private equity – MidCap2 | 528 | 88.1 | % | N/A | 524 | 91.4 | % | N/A | |||||||||||||
Credit funds | 39 | 6.5 | % | 0 | – | 3 | 38 | 6.7 | % | 0 | – | 3 | |||||||||
Mortgage and real assets | 32 | 5.4 | % | 2 | – | 3 | 11 | 1.9 | % | 2 | – | 3 | |||||||||
Total investment funds owned by consolidated VIEs | 599 | 100.0 | % | 573 | 100.0 | % | |||||||||||||||
Total investment funds including related parties and funds owned by consolidated VIEs | $ | 2,564 | $ | 2,460 | |||||||||||||||||
1 A-A Mortgage Opportunities, LP (A-A Mortgage) is a platform to originate residential mortgage loans and mortgage servicing rights. | |||||||||||||||||||||
2 Our total investment in MidCap, including amounts advanced under credit facilities, totaled $766 million and $761 million as of March 31, 2017 and December 31, 2016, respectively, which is greater than 10% of total AHL shareholders' equity at the respective period end dates. |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Ownership Percentage | |||||||
100% | $ | 25 | $ | 27 | |||
50% – 99% | 557 | 478 | |||||
Greater than 3% – 49% | 1,295 | 1,294 | |||||
Equity method investment funds | $ | 1,877 | $ | 1,799 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Ownership Percentage | |||||||
Greater than 3% – 49% | $ | 567 | $ | 562 | |||
3% or less | 120 | 99 | |||||
Fair value option investment funds | $ | 687 | $ | 661 |
• | Quoted prices for similar assets or liabilities in active markets, |
• | Observable inputs other than quoted market prices, and |
• | Observable inputs derived principally from market data through correlation or other means. |
March 31, 2017 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 60 | $ | — | $ | 28 | $ | 32 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,140 | — | — | 1,140 | — | ||||||||||||||
Foreign governments | 2,031 | — | — | 2,018 | 13 | ||||||||||||||
Corporate | 31,567 | — | — | 31,077 | 490 | ||||||||||||||
CLO | 5,007 | — | — | 4,907 | 100 | ||||||||||||||
ABS | 3,260 | — | — | 2,038 | 1,222 | ||||||||||||||
CMBS | 1,860 | — | — | 1,713 | 147 | ||||||||||||||
RMBS | 9,286 | — | — | 9,226 | 60 | ||||||||||||||
Total AFS fixed maturity securities | 54,211 | — | 28 | 52,151 | 2,032 | ||||||||||||||
Equity securities | 422 | — | 83 | 334 | 5 | ||||||||||||||
Total AFS securities | 54,633 | — | 111 | 52,485 | 2,037 | ||||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | 3 | — | 3 | — | — | ||||||||||||||
U.S. state, municipal and political subdivisions | 141 | — | — | 124 | 17 | ||||||||||||||
Corporate | 1,434 | — | — | 1,434 | — | ||||||||||||||
CLO | 27 | — | — | — | 27 | ||||||||||||||
ABS | 84 | — | — | 84 | — | ||||||||||||||
CMBS | 73 | — | — | 73 | — | ||||||||||||||
RMBS | 384 | — | — | 302 | 82 | ||||||||||||||
Total trading fixed maturity securities | 2,146 | — | 3 | 2,017 | 126 | ||||||||||||||
Equity securities | 449 | — | — | 449 | — | ||||||||||||||
Total trading securities | 2,595 | — | 3 | 2,466 | 126 | ||||||||||||||
Mortgage loans | 44 | — | — | — | 44 | ||||||||||||||
Investment funds | 97 | 97 | — | — | — | ||||||||||||||
Funds withheld at interest – embedded derivative | 212 | — | — | — | 212 | ||||||||||||||
Derivative assets | 1,708 | — | 10 | 1,698 | — | ||||||||||||||
Short-term investments | 166 | — | 28 | 138 | — | ||||||||||||||
Cash and cash equivalents | 2,563 | — | 2,563 | — | — | ||||||||||||||
Restricted cash | 73 | — | 73 | — | — | ||||||||||||||
Investments in related parties | |||||||||||||||||||
AFS, fixed maturity securities | |||||||||||||||||||
CLO | 306 | — | — | 306 | — | ||||||||||||||
ABS | 55 | — | — | 55 | — | ||||||||||||||
Total AFS securities – related party | 361 | — | — | 361 | — | ||||||||||||||
Trading securities, CLO | 169 | — | — | 38 | 131 | ||||||||||||||
Investment funds | 23 | 23 | — | — | — | ||||||||||||||
Short-term investments | 20 | — | — | — | 20 | ||||||||||||||
Reinsurance recoverable | 1,738 | — | — | — | 1,738 | ||||||||||||||
Total assets measured at fair value | $ | 64,402 | $ | 120 | $ | 2,788 | $ | 57,186 | $ | 4,308 | |||||||||
(Continued) |
March 31, 2017 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | 5,793 | $ | — | $ | — | $ | — | $ | 5,793 | |||||||||
Universal life benefits | 910 | — | — | — | 910 | ||||||||||||||
Unit-linked contracts | 429 | — | — | 429 | — | ||||||||||||||
Future policy benefits | |||||||||||||||||||
AmerUs Closed Block | 1,602 | — | — | — | 1,602 | ||||||||||||||
ILICO Closed Block and life benefits | 813 | — | — | — | 813 | ||||||||||||||
Derivative liabilities | 32 | — | 1 | 24 | 7 | ||||||||||||||
Funds withheld liability – embedded derivative | 11 | — | — | 11 | — | ||||||||||||||
Total liabilities measured at fair value | $ | 9,590 | $ | — | $ | 1 | $ | 464 | $ | 9,125 | |||||||||
1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. | |||||||||||||||||||
(Concluded) |
December 31, 2016 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | $ | 60 | $ | — | $ | 29 | $ | 31 | $ | — | |||||||||
U.S. state, municipal and political subdivisions | 1,140 | — | — | 1,135 | 5 | ||||||||||||||
Foreign governments | 2,235 | — | — | 2,221 | 14 | ||||||||||||||
Corporate | 30,020 | — | — | 29,650 | 370 | ||||||||||||||
CLO | 4,822 | — | — | 4,664 | 158 | ||||||||||||||
ABS | 2,936 | — | — | 1,776 | 1,160 | ||||||||||||||
CMBS | 1,847 | — | — | 1,695 | 152 | ||||||||||||||
RMBS | 8,973 | — | — | 8,956 | 17 | ||||||||||||||
Total AFS fixed maturity securities | 52,033 | — | 29 | 50,128 | 1,876 | ||||||||||||||
Equity securities | 353 | — | 79 | 269 | 5 | ||||||||||||||
Total AFS securities | 52,386 | — | 108 | 50,397 | 1,881 | ||||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||
U.S. government and agencies | 3 | — | 3 | — | — | ||||||||||||||
U.S. state, municipal and political subdivisions | 137 | — | — | 120 | 17 | ||||||||||||||
Corporate | 1,423 | — | — | 1,423 | — | ||||||||||||||
CLO | 43 | — | — | — | 43 | ||||||||||||||
ABS | 82 | — | — | 82 | — | ||||||||||||||
CMBS | 81 | — | — | 81 | — | ||||||||||||||
RMBS | 387 | — | — | 291 | 96 | ||||||||||||||
Total trading fixed maturity securities | 2,156 | — | 3 | 1,997 | 156 | ||||||||||||||
Equity securities | 425 | — | — | 425 | — | ||||||||||||||
Total trading securities | 2,581 | — | 3 | 2,422 | 156 | ||||||||||||||
(Continued) |
December 31, 2016 | |||||||||||||||||||
(In millions) | Total | NAV1 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mortgage loans | 44 | — | — | — | 44 | ||||||||||||||
Investment funds | 99 | 99 | — | — | — | ||||||||||||||
Funds withheld at interest – embedded derivative | 140 | — | — | — | 140 | ||||||||||||||
Derivative assets | 1,370 | — | 9 | 1,361 | — | ||||||||||||||
Short-term investments | 189 | — | 19 | 170 | — | ||||||||||||||
Cash and cash equivalents | 2,445 | — | 2,445 | — | — | ||||||||||||||
Restricted cash | 57 | — | 57 | — | — | ||||||||||||||
Investments in related parties | |||||||||||||||||||
AFS, fixed maturity securities | |||||||||||||||||||
CLO | 279 | — | — | 279 | — | ||||||||||||||
ABS | 56 | — | — | — | 56 | ||||||||||||||
Total AFS fixed maturity securities | 335 | — | — | 279 | 56 | ||||||||||||||
AFS, equity securities | 20 | — | 20 | — | — | ||||||||||||||
Total AFS securities – related party | 355 | — | 20 | 279 | 56 | ||||||||||||||
Trading securities, CLO | 195 | — | — | — | 195 | ||||||||||||||
Reinsurance recoverable | 1,692 | — | — | — | 1,692 | ||||||||||||||
Total assets measured at fair value | $ | 61,553 | $ | 99 | $ | 2,661 | $ | 54,629 | $ | 4,164 | |||||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | 5,283 | $ | — | $ | — | $ | — | $ | 5,283 | |||||||||
Universal life benefits | 883 | — | — | — | 883 | ||||||||||||||
Unit-linked contracts | 408 | — | — | 408 | — | ||||||||||||||
Future policy benefits | |||||||||||||||||||
AmerUs Closed Block | 1,606 | — | — | — | 1,606 | ||||||||||||||
ILICO Closed Block and life benefits | 794 | — | — | — | 794 | ||||||||||||||
Derivative liabilities | 40 | — | — | 33 | 7 | ||||||||||||||
Funds withheld liability – embedded derivative | 6 | — | — | 6 | — | ||||||||||||||
Total liabilities measured at fair value | $ | 9,020 | $ | — | $ | — | $ | 447 | $ | 8,573 | |||||||||
1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. | |||||||||||||||||||
(Concluded) |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Trading securities | $ | 2 | $ | 12 | |||
Investment funds | 7 | 3 | |||||
Future policy benefits | 4 | (53 | ) | ||||
Total gains (losses) | $ | 13 | $ | (38 | ) |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Unpaid principal balance | $ | 42 | $ | 42 | |||
Mark to fair value | 2 | 2 | |||||
Fair value | $ | 44 | $ | 44 |
Three months ended March 31, 2017 | |||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | Transfers | ||||||||||||||||||||||||||||||
(In millions) | Beginning Balance | Included in income | Included in OCI | Purchases, issuances, sales and settlements, net | In | (Out) | Ending Balance | Total gains (losses) included in earnings1 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | $ | 5 | $ | 16 | $ | (1 | ) | $ | (20 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Foreign governments | 14 | — | — | (1 | ) | — | — | 13 | — | ||||||||||||||||||||||
Corporate | 370 | 1 | 6 | 92 | 21 | — | 490 | — | |||||||||||||||||||||||
CLO | 158 | — | 4 | 3 | 29 | (94 | ) | 100 | — | ||||||||||||||||||||||
ABS | 1,160 | 4 | 14 | 75 | — | (31 | ) | 1,222 | — | ||||||||||||||||||||||
CMBS | 152 | 39 | — | — | — | (44 | ) | 147 | — | ||||||||||||||||||||||
RMBS | 17 | — | 1 | — | 50 | (8 | ) | 60 | — | ||||||||||||||||||||||
Equity securities | 5 | — | — | — | — | — | 5 | — | |||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | 17 | — | — | — | — | — | 17 | — | |||||||||||||||||||||||
CLO | 43 | (1) | — | (15 | ) | — | — | 27 | 1 | ||||||||||||||||||||||
RMBS | 96 | (5 | ) | — | 2 | — | (11 | ) | 82 | (1 | ) | ||||||||||||||||||||
Mortgage loans | 44 | — | — | — | — | — | 44 | — | |||||||||||||||||||||||
Funds withheld at interest – embedded derivative | 140 | 72 | — | — | — | — | 212 | — | |||||||||||||||||||||||
Investments in related parties | |||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||
ABS | 56 | — | 1 | (2 | ) | — | (55 | ) | — | — | |||||||||||||||||||||
Trading securities, CLO | 195 | (12 | ) | — | (14 | ) | — | (38 | ) | 131 | (12 | ) | |||||||||||||||||||
Short-term investments | — | — | — | 20 | — | — | 20 | — | |||||||||||||||||||||||
Reinsurance recoverable | 1,692 | 46 | — | — | — | — | 1,738 | — | |||||||||||||||||||||||
Total Level 3 assets | $ | 4,164 | $ | 160 | $ | 25 | $ | 140 | $ | 100 | $ | (281 | ) | $ | 4,308 | $ | (12 | ) | |||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||
Embedded derivative | $ | (5,283 | ) | $ | (431 | ) | $ | — | $ | (79 | ) | $ | — | $ | — | $ | (5,793 | ) | $ | — | |||||||||||
Universal life liabilities | (883 | ) | (27 | ) | — | — | — | — | (910 | ) | — | ||||||||||||||||||||
Future policy benefits | |||||||||||||||||||||||||||||||
AmerUs Closed Block | (1,606 | ) | 4 | — | — | — | — | (1,602 | ) | — | |||||||||||||||||||||
ILICO Closed Block and life benefits | (794 | ) | (19 | ) | — | — | — | — | (813 | ) | — | ||||||||||||||||||||
Derivative liabilities | (7 | ) | — | — | — | — | — | (7 | ) | — | |||||||||||||||||||||
Total Level 3 liabilities | $ | (8,573 | ) | $ | (473 | ) | $ | — | $ | (79 | ) | $ | — | $ | — | $ | (9,125 | ) | $ | — | |||||||||||
1 Related to instruments held at end of period. |
Three months ended March 31, 2016 | |||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | Transfers | ||||||||||||||||||||||||||||||
(In millions) | Beginning balance | Included in income | Included in OCI | Purchases, issuances, sales and settlements, net | In | Out | Ending balance | Total gains (losses) included in earnings1 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||
Foreign governments | $ | 17 | $ | 1 | $ | — | $ | (1 | ) | $ | — | $ | — | $ | 17 | $ | — | ||||||||||||||
Corporate | 636 | — | 2 | (12 | ) | 11 | (188 | ) | 449 | — | |||||||||||||||||||||
CLO | 517 | 2 | (22 | ) | — | 729 | (189 | ) | 1,037 | — | |||||||||||||||||||||
ABS | 1,813 | 52 | (17 | ) | (510 | ) | 103 | (80 | ) | 1,361 | — | ||||||||||||||||||||
CMBS | 67 | — | — | 29 | 12 | (25 | ) | 83 | — | ||||||||||||||||||||||
RMBS | 758 | 1 | (7 | ) | (63 | ) | — | — | 689 | — | |||||||||||||||||||||
Equity securities | 9 | — | 1 | — | — | — | 10 | — | |||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||
U.S. state, municipal and political subdivisions | 17 | — | — | — | — | — | 17 | — | |||||||||||||||||||||||
Corporate | 16 | (1 | ) | — | (4 | ) | — | (11 | ) | — | 3 | ||||||||||||||||||||
CLO | 108 | (11 | ) | — | — | — | — | 97 | (8 | ) | |||||||||||||||||||||
ABS | 98 | (2 | ) | — | — | — | — | 96 | — | ||||||||||||||||||||||
RMBS | 29 | (1 | ) | — | 48 | — | (5 | ) | 71 | (1 | ) | ||||||||||||||||||||
Mortgage loans | 48 | (1 | ) | — | (2 | ) | — | — | 45 | (1 | ) | ||||||||||||||||||||
Funds withheld at interest – embedded derivative | 36 | 1 | — | — | — | — | 37 | — | |||||||||||||||||||||||
Investments in related parties | |||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||
Fixed maturity | |||||||||||||||||||||||||||||||
CLO | 7 | — | (1 | ) | — | 40 | — | 46 | — | ||||||||||||||||||||||
ABS | 60 | — | — | (1 | ) | — | — | 59 | — | ||||||||||||||||||||||
Trading securities, CLO | 191 | (13 | ) | — | 9 | 26 | — | 213 | 9 | ||||||||||||||||||||||
Reinsurance recoverable | 2,377 | (365 | ) | — | — | — | — | 2,012 | — | ||||||||||||||||||||||
Total Level 3 assets | $ | 6,804 | $ | (337 | ) | $ | (44 | ) | $ | (507 | ) | $ | 921 | $ | (498 | ) | $ | 6,339 | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||
Embedded derivative | $ | (4,464 | ) | $ | (15 | ) | $ | — | $ | (104 | ) | $ | — | $ | — | $ | (4,583 | ) | $ | — | |||||||||||
Universal life liabilities | (1,464 | ) | 345 | — | — | — | — | (1,119 | ) | — | |||||||||||||||||||||
Future policy benefits | |||||||||||||||||||||||||||||||
AmerUs Closed Block | (1,581 | ) | (53 | ) | — | — | — | — | (1,634 | ) | — | ||||||||||||||||||||
ILICO Closed Block and life benefits | (897 | ) | 20 | — | — | — | — | (877 | ) | — | |||||||||||||||||||||
Derivative liabilities | (7 | ) | (1 | ) | — | — | — | — | (8 | ) | — | ||||||||||||||||||||
Total Level 3 liabilities | $ | (8,413 | ) | $ | 296 | $ | — | $ | (104 | ) | $ | — | $ | — | $ | (8,221 | ) | $ | — | ||||||||||||
1 Related to instruments held at end of period. |
Three months ended March 31, 2017 | |||||||||||||||||||
(In millions) | Purchases | Issuances | Sales | Settlements | Purchases, issuances, sales and settlements, net | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
U.S. state, municipal and political subdivisions | $ | — | $ | — | $ | — | $ | (20 | ) | $ | (20 | ) | |||||||
Foreign governments | — | — | — | (1 | ) | (1 | ) | ||||||||||||
Corporate | 94 | — | — | (2 | ) | 92 | |||||||||||||
CLO | 13 | — | (2 | ) | (8 | ) | 3 | ||||||||||||
ABS | 103 | — | — | (28 | ) | 75 | |||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
CLO | — | — | (15 | ) | — | (15 | ) | ||||||||||||
RMBS | 2 | — | — | — | 2 | ||||||||||||||
Investments in related parties | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
ABS | 5 | — | — | (7 | ) | (2 | ) | ||||||||||||
Trading securities, CLO | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Short-term investments | 20 | — | — | — | 20 | ||||||||||||||
Total Level 3 assets | $ | 237 | $ | — | $ | (31 | ) | $ | (66 | ) | $ | 140 | |||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | — | $ | (110 | ) | $ | — | $ | 31 | $ | (79 | ) | |||||||
Total Level 3 liabilities | $ | — | $ | (110 | ) | $ | — | $ | 31 | $ | (79 | ) |
Three months ended March 31, 2016 | |||||||||||||||||||
(In millions) | Purchases | Issuances | Sales | Settlements | Purchases, issuances, sales and settlements, net | ||||||||||||||
Assets | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
Foreign governments | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | |||||||
Corporate | 10 | — | (21 | ) | (1 | ) | (12 | ) | |||||||||||
ABS | 41 | — | — | (551 | ) | (510 | ) | ||||||||||||
CMBS | 29 | — | — | — | 29 | ||||||||||||||
RMBS | 13 | — | — | (76 | ) | (63 | ) | ||||||||||||
Trading securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
Corporate | — | — | (4 | ) | — | (4 | ) | ||||||||||||
RMBS | 48 | — | — | — | 48 | ||||||||||||||
Mortgage loans | — | — | — | (2 | ) | (2 | ) | ||||||||||||
Investments in related parties | |||||||||||||||||||
AFS securities | |||||||||||||||||||
Fixed maturity | |||||||||||||||||||
ABS | — | — | — | (1 | ) | (1 | ) | ||||||||||||
Trading securities, CLO | 25 | — | (16 | ) | — | 9 | |||||||||||||
Total Level 3 assets | $ | 166 | $ | — | $ | (41 | ) | $ | (632 | ) | $ | (507 | ) | ||||||
Liabilities | |||||||||||||||||||
Interest sensitive contract liabilities | |||||||||||||||||||
Embedded derivative | $ | — | $ | (144 | ) | $ | — | $ | 40 | $ | (104 | ) | |||||||
Total Level 3 liabilities | $ | — | $ | (144 | ) | $ | — | $ | 40 | $ | (104 | ) |
1. | Non-performance risk – For contracts we issue, we use the credit spread from the U.S. treasury curve based on our public credit rating as of the valuation date. This represents our credit risk for use in the estimate of the fair value of embedded derivatives. For contracts reinsured through funds withheld reinsurance, the cedant company holds collateral against its exposure; therefore, immaterial non-performance risk is ascribed to these contracts. |
2. | Option budget – We assume future hedge costs in the derivative's fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth. |
3. | Policyholder behavior – We regularly review the lapse and withdrawal assumptions (surrender rate). These are based on our initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products. |
March 31, 2017 | ||||||||||
(In millions, except for percentages) | Fair value | Valuation technique | Unobservable inputs | Input/range of inputs | Impact of an increase in the input on fair value | |||||
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives | $ | 5,793 | Option budget method | Non-performance risk | 0.5 | % | – | 1.5% | Decrease | |
Option budget | 0.8 | % | – | 3.8% | Increase | |||||
Surrender rate | 0.0 | % | – | 15.8% | Decrease |
December 31, 2016 | ||||||||||
(In millions, except for percentages) | Fair value | Valuation technique | Unobservable inputs | Input/range of inputs | Impact of an increase in the input on fair value | |||||
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives | $ | 5,283 | Option budget method | Non-performance risk | 0.7 | % | – | 1.5% | Decrease | |
Option budget | 0.8 | % | – | 3.8% | Increase | |||||
Surrender rate | 0.0 | % | – | 16.3% | Decrease |
March 31, 2017 | December 31, 2016 | ||||||||||||||||
(In millions) | Fair Value Level | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Assets | |||||||||||||||||
Mortgage loans | 3 | $ | 5,409 | $ | 5,555 | $ | 5,426 | $ | 5,560 | ||||||||
Investment funds | NAV1 | 592 | 592 | 590 | 590 | ||||||||||||
Policy loans | 2 | 583 | 583 | 602 | 602 | ||||||||||||
Funds withheld at interest | 3 | 6,381 | 6,381 | 6,398 | 6,398 | ||||||||||||
Other investments | 3 | 82 | 82 | 81 | 81 | ||||||||||||
Investments in related parties | |||||||||||||||||
Investment funds | NAV1 | 1,253 | 1,253 | 1,198 | 1,198 | ||||||||||||
Other investments | 3 | 238 | 265 | 237 | 262 | ||||||||||||
Total assets not carried at fair value | $ | 14,538 | $ | 14,711 | $ | 14,532 | $ | 14,691 | |||||||||
Liabilities | |||||||||||||||||
Interest sensitive contract liabilities | 3 | $ | 28,163 | $ | 27,469 | $ | 27,628 | $ | 26,930 | ||||||||
Funds withheld liability | 2 | 371 | 371 | 374 | 374 | ||||||||||||
Total liabilities not carried at fair value | $ | 28,534 | $ | 27,840 | $ | 28,002 | $ | 27,304 | |||||||||
1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. |
(In millions) | DAC | DSI | VOBA | Total | |||||||||||
Balance at December 31, 2016 | $ | 1,142 | $ | 462 | $ | 1,336 | $ | 2,940 | |||||||
Additions | 105 | 37 | — | 142 | |||||||||||
Amortization | (58 | ) | (18 | ) | (46 | ) | (122 | ) | |||||||
Impact of unrealized investment (gains) losses | (27 | ) | (13 | ) | (45 | ) | (85 | ) | |||||||
Balance at March 31, 2017 | $ | 1,162 | $ | 468 | $ | 1,245 | $ | 2,875 |
(In millions) | DAC | DSI | VOBA | Total | |||||||||||
Balance at December 31, 2015 | $ | 705 | $ | 320 | $ | 1,627 | $ | 2,652 | |||||||
Additions | 97 | 37 | — | 134 | |||||||||||
Amortization | (7 | ) | (4 | ) | (22 | ) | (33 | ) | |||||||
Impact of unrealized investment (gains) losses | (7 | ) | (4 | ) | (38 | ) | (49 | ) | |||||||
Balance at March 31, 2016 | $ | 788 | $ | 349 | $ | 1,567 | $ | 2,704 |
Three months ended March 31, 2017 | |||||||||||||||
(In millions, except share and per share data) | Class A | Class B | Class M-1 | Class M-22 | |||||||||||
Net income available to AHL shareholders | $ | 156 | $ | 221 | $ | 7 | $ | — | |||||||
Basic weighted average shares outstanding | 78,246,213 | 110,772,123 | 3,452,402 | 42,267 | |||||||||||
Dilutive effect of stock compensation plans | 3,051,380 | — | — | 971,427 | |||||||||||
Diluted weighted average shares outstanding | 81,297,593 | 110,772,123 | 3,452,402 | 1,013,694 | |||||||||||
Earnings per share1 | |||||||||||||||
Basic | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | |||||||
Diluted | $ | 1.92 | $ | 2.00 | $ | 2.00 | $ | 0.08 | |||||||
1 Calculated using whole figures. | |||||||||||||||
2 Net income available to AHL shareholders allocated to Class M-2 common shares rounded to $0 million for the three months ended March 31, 2017. However, earnings per share is calculated using whole figures. |
Three months ended March 31, 2016 | |||||||
(In millions, except share and per share data) | Class A | Class B | |||||
Net income available to AHL shareholders | $ | 23 | $ | 62 | |||
Basic weighted average shares outstanding | 50,028,933 | 135,963,975 | |||||
Dilutive effect of stock compensation plans | 52,832 | — | |||||
Diluted weighted average shares outstanding | 50,081,765 | 135,963,975 | |||||
Earnings per share1 | |||||||
Basic | $ | 0.46 | $ | 0.46 | |||
Diluted | $ | 0.46 | $ | 0.46 | |||
1 Calculated using whole figures. |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
AFS securities | $ | 1,473 | $ | 972 | |||
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | (490 | ) | (408 | ) | |||
Noncredit component of OTTI losses on AFS securities | (16 | ) | (17 | ) | |||
Hedging instruments | 5 | 10 | |||||
Pension adjustments | (4 | ) | (4 | ) | |||
Foreign currency translation adjustments | (10 | ) | (12 | ) | |||
Accumulated other comprehensive income, before taxes | 958 | 541 | |||||
Deferred income tax liability | (285 | ) | (174 | ) | |||
Accumulated other comprehensive income | $ | 673 | $ | 367 |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Unrealized gains (losses) on AFS securities | |||||||
Unrealized holding net gains arising during the period | $ | 516 | $ | 545 | |||
Change in DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustment | (82 | ) | (264 | ) | |||
Less: Reclassification adjustment for gains (losses) realized in net income1 | 15 | (22 | ) | ||||
Less: Income tax expense | 113 | 105 | |||||
Change in unrealized net gains on AFS securities | 306 | 198 | |||||
Noncredit component of OTTI losses on AFS securities | |||||||
Noncredit component of OTTI losses on AFS securities recognized during the period | 1 | (12 | ) | ||||
Less: Income tax expense (benefit) | — | (4 | ) | ||||
Change in noncredit component of OTTI losses on AFS securities | 1 | (8 | ) | ||||
Unrealized gains (losses) on hedging instruments | |||||||
Change in hedging instruments during the period | (5 | ) | (10 | ) | |||
Less: Income tax benefit | (2 | ) | (3 | ) | |||
Change in hedging instruments | (3 | ) | (7 | ) | |||
Pension adjustments during the period | — | (1 | ) | ||||
Foreign currency translation adjustments during the period | 2 | 3 | |||||
Change in AOCI | $ | 306 | $ | 185 | |||
1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
(In millions, except for percentages) | March 31, 2017 | December 31, 2016 | |||||
Fixed maturity securities | |||||||
U.S. state, municipal and political subdivisions | $ | — | $ | 5 | |||
Foreign governments | 156 | 149 | |||||
Corporate | 2,279 | 2,032 | |||||
CLO | 4,933 | 4,727 | |||||
ABS | 887 | 911 | |||||
CMBS | 947 | 975 | |||||
Mortgage loans | 1,713 | 1,767 | |||||
Investment funds | 24 | 23 | |||||
Trading securities | 111 | 126 | |||||
Funds withheld at interest | 1,752 | 1,682 | |||||
Other investments | 82 | 81 | |||||
Total assets sub-advised by Apollo affiliates | $ | 12,884 | $ | 12,478 | |||
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets | 19 | % | 19 | % |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Fixed maturity securities | |||||||
Foreign governments | $ | 1,848 | $ | 2,062 | |||
Corporate | 1,475 | 1,567 | |||||
Equity securities | 259 | 187 | |||||
Investment funds | 33 | 34 | |||||
Policy loans | 6 | 6 | |||||
Real estate | 553 | 541 | |||||
Other investments | 154 | 153 | |||||
Cash and cash equivalents | 26 | 25 | |||||
Total assets sub-advised by AAME | $ | 4,354 | $ | 4,575 |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Asset management fees | $ | 62 | $ | 58 | |||
Sub-advisory fees | 16 | 23 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
AFS securities | |||||||
Fixed maturity | $ | 1,505 | $ | 1,535 | |||
Equity | 31 | 40 | |||||
Investment funds | 24 | 25 | |||||
Mortgage loans | 911 | 1,003 | |||||
Short-term investments | 13 | 15 | |||||
Restricted cash | 73 | 57 | |||||
Total restricted assets | $ | 2,557 | $ | 2,675 |
• | Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; |
• | Investment gains (losses), net of offsets; |
• | VIE expenses and noncontrolling interest; and |
• | Other adjustments to revenues. |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Operating revenue by segment | |||||||
Retirement Services | $ | 888 | $ | 788 | |||
Corporate and Other | 68 | 31 | |||||
Total segment operating revenues | 956 | 819 | |||||
Non-operating adjustments | |||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 536 | (120 | ) | ||||
Investment gains (losses), net of offsets | 125 | 18 | |||||
VIE expenses and noncontrolling interest | — | 4 | |||||
Other adjustments to revenues | 2 | 1 | |||||
Total non-operating adjustments | 663 | (97 | ) | ||||
Total revenues | $ | 1,619 | $ | 722 |
• | Investment gains (losses), net of offsets; |
• | Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; |
• | Integration, restructuring and other non-operating expenses; |
• | Stock-based compensation, excluding LTIP; and |
• | Income tax (expense) benefit – non-operating. |
Three months ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Operating income, net of tax by segment | |||||||
Retirement Services | $ | 275 | $ | 197 | |||
Corporate and other | (9 | ) | (45 | ) | |||
Total segment operating income, net of tax | 266 | 152 | |||||
Non-operating adjustments | |||||||
Investment gains (losses), net of offsets | 57 | (21 | ) | ||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 94 | (69 | ) | ||||
Integration, restructuring and other non-operating expenses | (9 | ) | (1 | ) | |||
Stock-based compensation, excluding LTIP | (10 | ) | 15 | ||||
Income tax (expense) benefit – non-operating | (14 | ) | 9 | ||||
Total non-operating adjustments | 118 | (67 | ) | ||||
Net income available to Athene Holding Ltd. shareholders | $ | 384 | $ | 85 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Total assets by segment | |||||||
Retirement Services | $ | 81,800 | $ | 79,298 | |||
Corporate and Other | 7,393 | 7,401 | |||||
Total assets | $ | 89,193 | $ | 86,699 |
Document and Entity Information |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Athene Holding Ltd |
Entity Central Index Key | 0001527469 |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2016 |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Available-for-sale securities | ||
Mortgage loans | $ 5,470 | $ 5,500 |
Investment funds | 2,460 | 2,264 |
Reinsurance recoverable | 6,001 | 7,257 |
Trading securities, at fair value | ||
Accumulated other comprehensive income (loss) | $ 367 | $ (237) |
Common Class A | ||
Trading securities, at fair value | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001000000 |
Common stock authorized (in shares) | 425,000,000 | 425,000,000 |
Common stock issued (in shares) | 77,319,381.000000 | 50,151,265.000000 |
Common stock outstanding (in shares) | 77,319,381.000000 | 50,151,265 |
Common Class B | ||
Trading securities, at fair value | ||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 |
Common stock authorized (in shares) | 325,000,000 | 325,000,000 |
Common stock issued (in shares) | 111,805,829.000000 | 135,963,975.000000 |
Common stock outstanding (in shares) | 111,805,829 | 135,963,975.000000 |
Common Class M-1 | ||
Trading securities, at fair value | ||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 |
Common stock authorized (in shares) | 7,109,560.00000 | 7,109,560.00000 |
Common stock issued (in shares) | 3,474,205.000000 | 5,198,273.000000 |
Common stock outstanding (in shares) | 3,474,205 | 5,198,273.000000 |
Common Class M-2 | ||
Trading securities, at fair value | ||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 |
Common stock authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock issued (in shares) | 1,067,747.000000 | 3,125,869.000000 |
Common stock outstanding (in shares) | 1,067,747 | 3,125,869 |
Common Class M-3 | ||
Trading securities, at fair value | ||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 |
Common stock authorized (in shares) | 7,500,000.0 | 7,500,000.0 |
Common stock issued (in shares) | 1,346,300.0000 | 3,110,000.00 |
Common stock outstanding (in shares) | 1,346,300 | 3,110,000.00 |
Common Class M-4 | ||
Trading securities, at fair value | ||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 |
Common stock authorized (in shares) | 7,500,000.0 | 7,500,000.0 |
Common stock issued (in shares) | 5,397,802.000000 | 5,038,443.000000 |
Common stock outstanding (in shares) | 5,397,802 | 5,038,443 |
Related Party | ||
Trading securities, at fair value | ||
Accumulated other comprehensive income (loss) | $ 12 | $ (24) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Fixed maturity securities, amortized cost | 51,110 | 48,227 |
Equity securities, amortized cost | 319 | 367 |
Mortgage loans | 5,470 | 5,500 |
Investment funds | 689 | 733 |
Funds withheld at interest | 6,538 | 3,482 |
Real Estate Held-for-sale | 23 | 0 |
Short-term investments, cost | 189 | 135 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Fixed maturity securities, amortized cost | 51,451 | |
Accrued investment income | 554 | 520 |
Reinsurance recoverable | 6,001 | 7,257 |
Trading securities, at fair value | ||
Interest sensitive contract liabilities | 61,532 | 57,289 |
Future policy benefits | 14,592 | 14,547 |
Funds withheld liability | 380 | 388 |
Other liabilities | 688 | 778 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Fixed maturity securities, amortized cost | 341 | 332 |
Equity securities, amortized cost | 20 | 0 |
Investment funds | 1,198 | 997 |
Accrued investment income | 9 | 9 |
Trading securities, at fair value | ||
Other liabilities | 56 | 63 |
Variable Interest Entities | ||
Trading securities, at fair value | ||
Fixed maturity securities | 50 | 722 |
Other liabilities | 34 | 17 |
Variable Interest Entities | Related Party | ||
Available-for-sale securities | ||
Equity securities, amortized cost | 143 | 0 |
Investment funds | 573 | 534 |
Trading securities, at fair value | ||
Fixed maturity securities | 50 | 53 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Mortgage loans | 44 | 48 |
Investment funds | 99 | 152 |
Funds withheld at interest | 140 | 36 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Reinsurance recoverable | 1,692 | 2,377 |
Trading securities, at fair value | ||
Interest sensitive contract liabilities | 6,574 | 6,346 |
Future policy benefits | 2,400 | 2,478 |
Funds withheld liability | 6 | 35 |
Fair Value | Variable Interest Entities | Related Party | ||
Available-for-sale securities | ||
Investment funds | $ 562 | $ 516 |
Consolidated Statements of Income - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Revenues | ||||||
Premiums | $ 240 | $ 195 | $ 100 | |||
Net investment income | 2,914 | 2,510 | 2,333 | |||
Other-than-temporary impairment investment losses | ||||||
Other-than-temporary impairment losses recognized in other comprehensive income | 2 | 10 | 1 | |||
Total revenues | 4,105 | 2,618 | 4,101 | |||
Benefits and Expenses | ||||||
Future policy and other policy benefits | 1,059 | 518 | 700 | |||
Total benefits and expenses | 3,389 | 2,028 | 3,577 | |||
Income before income taxes | 716 | 590 | 524 | |||
Income tax expense (benefit) | (52) | 12 | 53 | |||
Net income | 768 | 578 | 471 | |||
Less: Net income attributable to noncontrolling interests | 0 | 16 | 15 | |||
Net income available to Athene Holding Ltd. shareholders | 768 | 562 | 456 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||
Revenues | ||||||
Premiums | 240 | 195 | 100 | |||
Product charges | 281 | 248 | 218 | |||
Net investment income | 2,914 | 2,510 | 2,333 | |||
Investment related gains (losses) | 652 | (430) | 1,211 | |||
Other-than-temporary impairment investment losses | ||||||
Other-than-temporary impairment losses | (32) | (40) | (7) | |||
Other-than-temporary impairment losses recognized in other comprehensive income | 2 | 10 | 1 | |||
Net other-than-temporary impairment losses | (30) | (30) | (6) | |||
Other revenues | 34 | 25 | 20 | |||
Benefits and Expenses | ||||||
Interest sensitive contract benefits | 1,296 | 689 | 1,822 | |||
Amortization of deferred sales inducements | 39 | 21 | 4 | |||
Future policy and other policy benefits | 1,059 | 518 | 700 | |||
Amortization of deferred acquisition costs and value of business acquired | 318 | 206 | 124 | |||
Interest expense | 9 | 17 | 22 | |||
Dividends to policyholders | 37 | 28 | 44 | |||
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 618 | 532 | 797 | |||
Variable Interest Entities | ||||||
Revenues | ||||||
Net investment income | 67 | 67 | 174 | |||
Investment related gains (losses) | (53) | 33 | 51 | |||
Benefits and Expenses | ||||||
Interest expense | 12 | 15 | 17 | |||
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 1 | $ 2 | $ 47 | |||
Common Class A | ||||||
Benefits and Expenses | ||||||
Net income available to Athene Holding Ltd. shareholders | $ 214 | |||||
Earnings per share | ||||||
Basic (in USD per share) | [1] | $ 4.11 | $ 3.21 | $ 3.52 | ||
Diluted (in USD per share) | $ 4.02 | 3.21 | 3.47 | |||
Common Class B | ||||||
Benefits and Expenses | ||||||
Net income available to Athene Holding Ltd. shareholders | $ 553 | |||||
Earnings per share | ||||||
Basic (in USD per share) | $ 4.11 | 3.21 | 3.52 | |||
Diluted (in USD per share) | $ 4.11 | $ 3.21 | $ 3.47 | |||
Common Class M-1 | ||||||
Benefits and Expenses | ||||||
Net income available to Athene Holding Ltd. shareholders | $ 1 | |||||
Earnings per share | ||||||
Basic (in USD per share) | $ 4.11 | |||||
Diluted (in USD per share) | [1] | $ 0.20 | ||||
|
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net investment income | $ 2,914 | $ 2,510 | $ 2,333 |
Related Party | |||
Investment income | 226 | 168 | 77 |
Investment expense | 295 | 268 | 258 |
Investment related gains (losses) | (38) | (19) | (1) |
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 22 | 18 | 240 |
Variable Interest Entities | |||
Investment related gains (losses) | (53) | 33 | 51 |
Net investment income | 67 | 67 | 174 |
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 1 | 2 | 47 |
Variable Interest Entities | Related Party | |||
Investment related gains (losses) | (25) | 46 | 46 |
Net investment income | $ 44 | $ 37 | $ (5) |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 768 | $ 578 | $ 471 |
Other comprehensive income (loss), before tax | |||
Change in unrealized investment gains (losses) on available-for-sale securities, net of offsets | 878 | (1,314) | 899 |
Change in noncredit component of other-than-temporary impairment losses, available-for-sale | (2) | (10) | (1) |
Comprehensive income (loss) on hedging instruments | (5) | 11 | 10 |
Comprehensive income (loss) on pension adjustments | 0 | 12 | (17) |
Comprehensive loss on foreign currency translation adjustments | (8) | (4) | 0 |
Other comprehensive income (loss), before tax | 863 | (1,305) | 891 |
Income tax expense (benefit) related to other comprehensive income | 259 | (424) | 317 |
Other comprehensive income (loss), after tax | 604 | (881) | 574 |
Comprehensive income (loss) | 1,372 | (303) | 1,045 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 16 | 15 |
Comprehensive income (loss) available to Athene Holding Ltd. shareholders | $ 1,372 | $ (319) | $ 1,030 |
Consolidated Statements of Equity - USD ($) $ in Millions |
Total |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total Athene Holding Ltd. shareholders' equity |
Noncontrolling interest |
---|---|---|---|---|---|---|---|
Retained earnings | $ 1,340 | ||||||
Beginning Balance at Dec. 31, 2013 | 2,852 | $ 0 | $ 1,348 | $ 70 | $ 2,758 | $ 94 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 471 | $ 456 | 456 | 15 | |||
Other comprehensive income | 574 | 574 | 574 | ||||
Issuance of shares, net of expenses | 719 | 719 | 719 | ||||
Stock-based compensation | 116 | 116 | 116 | ||||
Retirement or repurchase of shares | (78) | (30) | (48) | (78) | |||
Change in equity of noncontrolling interests | (76) | (76) | |||||
Ending Balance at Dec. 31, 2014 | 4,578 | 0 | 2,153 | 1,748 | 644 | 4,545 | 33 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 578 | 562 | 562 | 16 | |||
Other comprehensive income | (881) | (881) | (881) | ||||
Issuance of shares, net of expenses | 1,112 | 1,112 | 1,112 | ||||
Stock-based compensation | 17 | 17 | 17 | ||||
Retirement or repurchase of shares | (3) | (1) | (2) | (3) | |||
Change in equity of noncontrolling interests | (48) | (48) | |||||
Ending Balance at Dec. 31, 2015 | 5,353 | 0 | 3,281 | 2,308 | (237) | 5,352 | 1 |
Retained earnings | 2,308 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 768 | 768 | 768 | 0 | |||
Other comprehensive income | 604 | 604 | 604 | ||||
Issuance of shares, net of expenses | 1 | 1 | 1 | ||||
Stock-based compensation | 153 | 153 | 153 | ||||
Retirement or repurchase of shares | (20) | (14) | (6) | (20) | |||
Ending Balance at Dec. 31, 2016 | 6,859 | $ 0 | $ 3,421 | $ 3,070 | $ 367 | $ 6,858 | $ 1 |
Retained earnings | $ 3,070 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Cash flows from operating activities | ||||||
Net income | $ 768 | $ 578 | $ 471 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Policy acquisition costs deferred | (601) | (288) | (250) | |||
Deferred income tax expense (benefit) | (19) | 31 | 137 | |||
Changes in operating assets and liabilities: | ||||||
Net cash provided by operating activities | 1,199 | 1,049 | 599 | |||
Available-for-sale securities | ||||||
Net cash (used in) provided by investing activities | (2,602) | (52) | 1,332 | |||
Consolidated variable interest entities related: | ||||||
Net cash provided by (used in) financing activities | 1,155 | (944) | (2,295) | |||
Effect of exchange rate changes on cash and cash equivalents | (13) | (4) | 0 | |||
Net (decrease) increase in cash and cash equivalents | (261) | 49 | (364) | |||
Cash and cash equivalents at beginning of year | [1] | 2,720 | 2,671 | 3,035 | ||
Cash and cash equivalents at end of year | [1] | 2,459 | 2,720 | 2,671 | ||
Supplementary information | ||||||
Cash (refunded) paid for taxes | (31) | (34) | 59 | |||
Cash paid for interest | 9 | 22 | 56 | |||
Non-cash transactions | ||||||
Deposits on investment-type policies and contracts through reinsurance agreements | 3,441 | 1,182 | 418 | |||
Withdrawals on investment-type policies and contracts through reinsurance agreements | 448 | 373 | 219 | |||
Investments received from settlements on reinsurance agreements | 47 | 75 | 6 | |||
Investment funds acquired in exchange for non-cash assets and liabilities | 0 | 473 | 0 | |||
Issuance of capital for payment of liabilities | 0 | 0 | 199 | |||
Reduction in investments and other assets and liabilities relating to reinsurance | 0 | 920 | 0 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Amortization of deferred acquisition costs and value of business acquired | 318 | 206 | 124 | |||
Amortization of deferred sales inducements | 39 | 21 | 4 | |||
Amortization (accretion) of net investment premiums, discounts, and other (related party: 2016 – $(6), 2015 – $(8) and 2014 – $0) | (172) | (77) | 92 | |||
Payment at inception of coinsurance agreement | 0 | (10) | 0 | |||
Stock-based compensation | 84 | 67 | 373 | |||
Net investment (income) loss (related party: 2016 – $(51), 2015 – $(6) and 2014 – $(53)) | (25) | 8 | (134) | |||
Net recognized (gains) losses on investments and derivatives | (342) | 520 | (1,463) | |||
Policy acquisition costs deferred | (601) | (288) | (250) | |||
Deferred income tax expense (benefit) | (19) | 31 | 137 | |||
Changes in operating assets and liabilities: | ||||||
Accrued investment income | (34) | 38 | 4 | |||
Interest sensitive contract liabilities | 925 | 874 | 2,144 | |||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 344 | (573) | (698) | |||
Current income tax recoverable | 8 | 15 | (77) | |||
Funds withheld assets and liabilities | (128) | (278) | (1) | |||
Other assets and liabilities | (22) | (56) | (37) | |||
Sales, maturities, and repayments of: | ||||||
Trading securities (related party: 2016 – $26, 2015 – $72 and 2014 – $271) | 748 | 1,226 | 807 | |||
Mortgage loans | 1,176 | 788 | 1,062 | |||
Investment funds (related party: 2016 – $293, 2015 – $99 and 2014 – $228) | 420 | 343 | 793 | |||
Derivative instruments and other invested assets (related party: 2016 – $8, 2015 – $0 and 2014 – $0) | 468 | 1,151 | 1,863 | |||
Real estate | 36 | 63 | 0 | |||
Short-term investments (related party: 2016 – $55, 2015 – $130 and 2014 – $0) | 870 | 207 | 0 | |||
Available-for-sale securities | ||||||
Fixed maturity securities (related party: 2016 – $(82), 2015 – $(64) and 2014 – $(527)) | (11,797) | (11,069) | (11,000) | |||
Equity securities (related party: 2016 – $(20), 2015 – $0 and 2014 – $0) | (319) | (239) | (51) | |||
Trading securities (related party: 2016 – $(39), 2015 – $(52) and 2014 – $(320)) | (868) | (1,409) | (551) | |||
Mortgage loans | (1,157) | (672) | (908) | |||
Investment funds (related party: 2016 – $(441), 2015 – $(510) and 2014 – $(517)) | (535) | (614) | (676) | |||
Derivative instruments and other invested assets | (686) | (698) | (682) | |||
Real estate | (39) | (6) | 0 | |||
Short-term investments (related party: 2016 – $0, 2015 – $(85) and 2014 – $0) | (873) | (267) | (17) | |||
Change in restricted cash | 59 | (39) | 37 | |||
Acquisition of subsidiaries, net of cash acquired | 0 | 162 | 33 | |||
Cash settlement of derivatives | 34 | 25 | 1 | |||
Other investing activities, net | (185) | 279 | (241) | |||
Cash flows from financing activities | ||||||
Capital contributions | 1 | 1,116 | 305 | |||
Repayment of note payables | 0 | (4) | (300) | |||
Deposits on investment-type policies and contracts | 5,791 | 3,460 | 3,393 | |||
Withdrawals on investment-type policies and contracts | (4,617) | (4,783) | (5,551) | |||
Payments for coinsurance agreements on investment-type contracts, net | (89) | (153) | (320) | |||
Consolidated variable interest entities related: | ||||||
Net change in cash collateral posted for derivative transactions | 516 | (535) | 661 | |||
Repurchase of common stock | (20) | (3) | (78) | |||
Other financing activities, net | 73 | (12) | 75 | |||
Cash and cash equivalents at beginning of year | 2,714 | |||||
Cash and cash equivalents at end of year | 2,445 | 2,714 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fixed Maturity Securities | ||||||
Sales, maturities, and repayments of: | ||||||
Available-for-sale securities | 9,211 | 10,424 | 9,909 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity Securities | ||||||
Sales, maturities, and repayments of: | ||||||
Available-for-sale securities | 350 | 53 | 11 | |||
Variable Interest Entities | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Amortization (accretion) of net investment premiums, discounts, and other (related party: 2016 – $(6), 2015 – $(8) and 2014 – $0) | 3 | 4 | (14) | |||
Net investment (income) loss (related party: 2016 – $(51), 2015 – $(6) and 2014 – $(53)) | 3 | 3 | 1 | |||
Net recognized (gains) losses on investments and derivatives | 25 | (35) | (67) | |||
Changes in operating assets and liabilities: | ||||||
Other assets and liabilities | 25 | 1 | (10) | |||
Available-for-sale securities | ||||||
Sales, maturities, and repayments of investments (related party: 2016 – $22, 2015 – $244 and 2014 – $1,401) | 504 | 257 | 1,410 | |||
Purchases of investments (related party: 2016 – $(19), 2015 – $(17) and 2014 – $(482)) | (19) | (17) | (491) | |||
Change in restricted cash | 0 | 0 | 23 | |||
Consolidated variable interest entities related: | ||||||
Proceeds from borrowings | 0 | 0 | 319 | |||
Repayment on borrowings | (500) | 0 | (723) | |||
Capital contributions from noncontrolling interests | 0 | 0 | 21 | |||
Capital distributions to noncontrolling interests | 0 | (30) | $ (97) | |||
Cash and cash equivalents at beginning of year | 6 | |||||
Cash and cash equivalents at end of year | $ 14 | $ 6 | ||||
|
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Amortization (accretion) of net investment premiums, discounts, and other | $ (172) | $ (77) | $ 92 |
Net investments (income) loss | (25) | 8 | (134) |
Net recognized (gains) losses on investments and derivatives | (342) | 520 | (1,463) |
Sales, maturities, and repayments of: | |||
Trading securities | 748 | 1,226 | 807 |
Investment funds | 420 | 343 | 793 |
Derivative instruments and other invested assets | 468 | 1,151 | 1,863 |
Short-term investments | 870 | 207 | 0 |
Purchases of: | |||
Fixed maturity securities (related party: 2016 – $(82), 2015 – $(64) and 2014 – $(527)) | (11,797) | (11,069) | (11,000) |
Equity securities | (319) | (239) | (51) |
Trading securities | (868) | (1,409) | (551) |
Investment funds | (535) | (614) | (676) |
Short-term investments | (873) | (267) | (17) |
Variable Interest Entities | |||
Amortization (accretion) of net investment premiums, discounts, and other | 3 | 4 | (14) |
Net investments (income) loss | 3 | 3 | 1 |
Net recognized (gains) losses on investments and derivatives | 25 | (35) | (67) |
Purchases of: | |||
Sales, maturities, and repayments of investments | 504 | 257 | 1,410 |
Purchases of investments | (19) | (17) | (491) |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Amortization (accretion) of net investment premiums, discounts, and other | (6) | (8) | 0 |
Net investments (income) loss | (51) | (6) | (53) |
Net recognized (gains) losses on investments and derivatives | 34 | 42 | 0 |
Sales, maturities, and repayments of: | |||
Trading securities | 26 | 72 | 271 |
Investment funds | 293 | 99 | 228 |
Derivative instruments and other invested assets | 8 | 0 | 0 |
Short-term investments | 55 | 130 | 0 |
Purchases of: | |||
Fixed maturity securities (related party: 2016 – $(82), 2015 – $(64) and 2014 – $(527)) | (82) | (64) | (527) |
Equity securities | (20) | 0 | 0 |
Trading securities | (39) | (52) | (320) |
Investment funds | (441) | (510) | (517) |
Short-term investments | 0 | (85) | 0 |
Related Party | Variable Interest Entities | |||
Net recognized (gains) losses on investments and derivatives | 3 | (46) | (46) |
Purchases of: | |||
Sales, maturities, and repayments of investments | 22 | 244 | 1,401 |
Purchases of investments | (19) | (17) | (482) |
Total fixed maturity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Sales, maturities, and repayments of: | |||
Available-for-sale securities | 9,211 | 10,424 | 9,909 |
Total fixed maturity securities | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Sales, maturities, and repayments of: | |||
Available-for-sale securities | $ 78 | $ 65 | $ 259 |
Business, Basis of Presentation, and Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business, Basis of Presentation, and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Athene Holding Ltd. (AHL), a Bermuda exempted company, together with its subsidiaries (collectively, Athene, we, our, us, or the Company), is a leading retirement services company that issues, reinsures and acquires retirement savings products in all U.S. states, the District of Columbia and Germany. We conduct business primarily through the following consolidated subsidiaries:
In addition, we consolidate certain variable interest entities (VIEs), for which we determined we are the primary beneficiary, as discussed in Note 4 – Variable Interest Entities. Consolidation and Basis of Presentation—Our consolidated financial statements include our wholly-owned subsidiaries, investees we control and any VIEs where we are the primary beneficiary. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financing decisions, other than investments for which we have elected the fair value option, are accounted for under the equity method. Intercompany balances and transactions have been eliminated. For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than the Company. We include the aggregate of the income or loss and corresponding equity that is not owned by the Company in noncontrolling interests in the consolidated financial statements. We report investments in related parties and assets and liabilities of consolidated VIEs separately, as further described in the accounting policies that follow. We have prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual experience could materially differ from these estimates and assumptions. Our principal estimates impact:
Additional details around these principal estimates and assumptions are discussed in the significant accounting policies that follow and the related footnote disclosures. Revisions—As part of our continuing initiative to improve controls in our business processes and confirm the accuracy of our data relating to blocks of businesses acquired from Aviva USA as well as deposits since the acquisition, we identified an error in May 2017 relating to the impact of certain inputs used to calculate certain actuarial balances, which had the result of misstating our net investment earned rate used in the amortization calculation of deferred acquisition costs and the change in future policy benefits. We have revised our consolidated financial statements, notes, and schedules for the years ended December 31, 2016, 2015 and 2014, as a result of correcting this error and other immaterial errors. We assessed the materiality of these errors and concluded these errors are not material to the consolidated financial statements as a whole. However, we elected to revise the consolidated financial statements to increase their accuracy, as well as provide consistency and comparability with balances and activities to be reported in future periods. The following is a summary of the only impacts of the revisions on the consolidated balance sheets:
The following is a summary of the only impacts of the revisions on the consolidated statements of income:
For the years ended December 31, 2016, 2015 and 2014, the only impact to the consolidated statements of comprehensive income were the revisions to net income for the corresponding year, as presented above. We revised the consolidated statements of equity for the years ended December 31, 2016, 2015 and 2014, for the changes to net income, as presented above. In addition, the balance of retained earnings was revised from $1,343 million to $1,340 million as of December 31, 2013, as a result of revisions to periods prior to 2014. The following is a summary of the only impacts of the revisions on the consolidated statements of cash flows:
Summary of Significant Accounting Policies Investments Fixed Maturity and Equity Securities – Fixed maturity securities includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and redeemable preferred stock. Equity securities includes common stock, mutual funds and non-redeemable preferred stock. We classify fixed maturity and equity securities as available-for-sale (AFS) or trading at the time of purchase and subsequently carry them at fair value. Fair value hierarchy and valuation methodologies are discussed in Note 5 – Fair Value. Classification is dependent on a variety of factors including our expected holding period, election of the fair value option and asset and liability matching. AFS Securities – Unrealized gains and losses on AFS securities, net of tax and adjustments to DAC, DSI, VOBA and future policy benefits, if applicable, are generally reflected in accumulated other comprehensive income (loss) (AOCI) on the consolidated balance sheets. Unrealized gains or losses relating to identified risks within AFS securities in fair value hedging relationships are reflected in investment related gains (losses) on the consolidated statements of income. Trading Securities – We elected the fair value option for certain fixed maturity securities. These fixed maturity securities are classified as trading, with changes to fair value included in investment related gains (losses) on the consolidated statements of income. Although the securities are classified as trading, the trading activity related to these investments is primarily focused on asset and liability matching activities and is not intended to be an income strategy based on active trading. As such, the activity related to these investments on the consolidated statements of cash flows is classified as investing activities. Trading securities include mutual funds supporting unit-linked investment contracts. We generally record security transactions on a trade date basis, with any unsettled trades recorded in other assets or other liabilities on the consolidated balance sheets. For those security transactions not recorded on a trade date basis, such as private placement and investment fund purchases, we record on a settlement date basis. Purchased Credit Impaired (PCI) Investments – We purchase certain structured securities, primarily RMBS and re-performing mortgage loans, having deterioration in credit quality since their issuance which meet the definition of PCI investments. We determined, based on our expectations as to the timing and amount of cash flows expected to be received, that it was probable at acquisition that we would not collect all contractually required payments, including both principal and interest, while also considering the effects of any prepayments for these PCI investments. Based on these assumptions, the difference between the undiscounted expected future cash flows of the PCI investments and the recorded investment represents the initial accretable yield, which is accreted into investment income, net of related expenses, over their remaining lives on a level-yield basis. The difference between the contractually required payments on the PCI investment and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. Over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, the accretable yield and the non-accretable difference can change. Quarterly, we evaluate the undiscounted expected future cash flows associated with PCI investments based on updates to key assumptions. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI investments will change the accretable yield prospectively. Declines in undiscounted expected future cash flows due to further credit deterioration, as well as changes in the expected timing of the cash flows, can result in the recognition of an other-than-temporary impairment (OTTI) charge for PCI securities or a valuation allowance for PCI loans. Significant increases in undiscounted expected future cash flows are recognized prospectively as an adjustment to the accretable yield. Mortgage Loans – Mortgage loans are primarily stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on its contractual interest rate. We record amortization of premiums and discounts using the effective yield method and contractual cash flows on the underlying loan. We accrue interest on loans until it is probable we will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums and discounts and prepayment fees are reported in net investment income on the consolidated statements of income. We have also elected the fair value option on a portion of our mortgage loans. Investment Funds – We invest in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (investment funds). For investment funds in which we have determined we are not the primary beneficiary, and therefore not required to consolidate, we typically record these investments using the equity method of accounting, where the cost is recorded as an investment in the fund. Adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (NAV) in the investment fund financial statements, which can be on a lag of up to three months when investee information is not received in a timely manner. We record our proportionate share of investment fund income within net investment income on the consolidated statements of income. Contributions paid or distributions received by us are recorded directly to the investment fund balance as an increase to carrying value or as a return of capital, thus reducing our carrying value. Policy Loans – Policy loans are funds provided to policyholders in return for a claim on the policy's account value. The funds provided are limited to a specified percentage of the account balance. The majority of policy loans do not have a stated maturity and the balances and accrued interest are repaid with proceeds from the policy account balance. Policy loans are reported at the unpaid principal balance. Interest income is recorded as earned using the contract interest rate and is reported in net investment income on the consolidated statements of income. Funds Withheld at Interest – Funds withheld at interest represents a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements in which we act as reinsurer. Assets equal to statutory reserves are withheld and legally owned by the ceding company. We periodically settle interest accruing to those assets at rates defined by the terms of the agreement. The underlying agreements contain embedded derivatives as discussed below. Real Estate – Real estate investments are stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset, which is typically 40 years, and is included in net investment income on the consolidated statements of income. We periodically review our real estate investments for impairment and test for recoverability when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. We recognize an impairment to fair value if the carrying amount of a property exceeds the expected undiscounted cash flows. Real estate investments we commit to a plan to sell within one year and actively market are classified as held for sale. Real estate held for sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. Short-term Investments – Short-term investments consists of financial instruments with maturities of greater than three months but less than twelve months when purchased. Short-term debt securities are accounted for as trading or AFS consistent with our policies for those investments. Short-term loans are carried at amortized cost. Fair values are determined consistent with policies described in Note 5 – Fair Value for the respective investment type. Investment Income – We recognize investment income as it accrues or is legally due, net of investment management and custody fees. Investment income on fixed maturity securities includes coupon interest, as well as the amortization of any premiums and the accretion of any discount. Investment income on equity securities represents dividend income and preferred coupons. Realized gains and losses on sales of investments are included on the consolidated statements of income in investment related gains (losses). Realized gains and losses on investments sold are determined based on a first-in first-out method. Other-Than-Temporary Impairment – We identify fixed maturity and equity securities that could potentially have impairments that are other-than-temporary by monitoring market events for changes in market interest rates, credit issues, changes in business climate, management changes, litigation, government actions and other similar factors. Indicators of impairment may include changes in the issuers' credit ratings and outlook, frequency of late payments, pricing levels, key financial ratios, financial statements, revenue forecasts and cash flow projections. We review all securities on a case-by-case basis to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in fair value; (3) the issuer's financial position and access to capital; and (4) for fixed maturity securities, our ability and intent to sell a security or whether it is more likely than not that we will be required to sell the security before the recovery of its cost or amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value. To the extent we determine that a security is other-than-temporarily impaired, an impairment loss is recognized. The recognition of impairment losses on fixed maturity securities is dependent upon the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its cost or amortized cost less any recorded credit loss, we recognize an OTTI in other-than-temporary impairment losses on the consolidated statements of income for the difference between amortized cost and fair value. If neither of these two conditions exists, then the recognition of the OTTI is bifurcated and we recognize the credit loss portion in income and the non-credit loss portion in AOCI on the consolidated balance sheets. We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the estimated cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The techniques and assumptions for establishing the estimated cash flows vary depending on the type of security. The structured security's cash flow estimates are based on security-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayments and structural support, including subordination and guarantees. The non-structured security's cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using security-specific facts and circumstances including timing, security interests and loss severity. In periods after an OTTI is recognized on a fixed maturity security, we report the impaired security as if it had been purchased on the date it was impaired and continue to estimate the present value of the estimated cash flows of the security. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. For equity method investments, we consider financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. Declines in value of equity method investments not expected to be recovered are reflected through impairment in other-than-temporary impairment losses on the consolidated statements of income. We impair a mortgage loan when it is probable we will not collect all amounts due under the agreement. We establish a general valuation allowance on mortgage loans based on loss history. Additionally, we establish a valuation allowance on individual loans based on expected losses from future dispositions or settlement, including foreclosures. We calculate the allowance based on how much the carrying value exceeds one of these values:
We first apply any interest accrued or received on the net carrying amount of the impaired loan to the principal of the loan, and once the principal is repaid, we include amounts received in net investment income. We limit accrued interest income on impaired loans to 90 days of interest. Once accrued interest on the impaired loan is received, we recognize interest income on a cash basis. Loans deemed uncollectible or in foreclosure are charged off against the valuation allowances, and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in investment related gains (losses) on the consolidated statements of income. The cost of other invested assets is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These impairments are included within other-than-temporary impairment losses, and the cost basis of the investment securities is reduced accordingly. We do not change the revised cost basis for subsequent recoveries in value. Derivative Instruments—We invest in derivatives to hedge the risks experienced in our ongoing operations, such as equity risk, interest rate risk, cash flow risks or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. We elect to present any derivatives subject to master netting provisions as a gross asset or liability and gross of collateral. Disclosures regarding balance sheet presentation of derivatives subject to master netting agreements are discussed in Note 3 – Derivative Instruments. We may designate derivatives as cash flow or fair value hedges. Hedge Documentation and Hedge Effectiveness – To qualify for hedge accounting, at the inception of the hedging relationship, we formally document our risk management objective and strategy for undertaking the hedging transaction, as well as our designation of the hedge as a cash flow or fair value hedge. In this documentation, we identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method which will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. For a cash flow hedge, changes in the fair value of the hedging derivative measured as effective are reported within AOCI, and the related gains or losses on the derivative are reclassified into the consolidated statements of income when the cash flows of the hedged item affect earnings. Any ineffectiveness is reported in investment related gains (losses) on the consolidated statements of income each reporting period as effectiveness is assessed. For a fair value hedge, changes in the fair value of the hedging derivative, including any amounts measured as ineffective, and changes in the fair value of the hedged item related to the designated risk being hedged, are reported on the consolidated statements of income according to the nature of the risk being hedged. We discontinue hedge accounting prospectively when: (1) we determine the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative expires, is sold, terminated, or exercised; or (3) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued, the derivative continues to be carried on the consolidated balance sheets at fair value, with changes in fair value recognized in investment related gains (losses) on the consolidated statements of income. For a derivative not designated as a hedge, changes in the derivative's fair value and any income received or paid on derivatives at the settlement date are included in investment related gains (losses) on the consolidated statements of income. Embedded Derivatives – We issue and reinsure products, primarily fixed indexed annuity products, or purchase investments that contain embedded derivatives. If we determine the embedded derivative has economic characteristics not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract and accounted for separately. Embedded derivatives are carried on the consolidated balance sheets at fair value in the same line item as the host contract. Changes in the fair value of embedded derivatives associated with fixed indexed annuities are reflected in interest sensitive contract benefits on the consolidated statements of income. Embedded derivatives that are not clearly and closely related to the host contract within a financial asset are required to be bifurcated and recorded at fair value unless the fair value option is elected on the host contract. Under the fair value option, bifurcation of the embedded derivative is not necessary as all related gains and losses on the host contract and derivative will be reflected within investment related gains (losses) on the consolidated statements of income. Fixed indexed annuity and indexed universal life insurance contracts allow the policyholder to elect a fixed interest rate return or an equity market component where interest credited is based on the performance of common stock market indices. The equity market option is an embedded derivative, similar to a call option. The benefit reserve is equal to the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of embedded derivatives is computed as the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth, which include assumptions for expected index credits on the next policy anniversary date, future equity option costs, volatility, interest rates and policyholder behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as were used to project policy contract values. For contracts we issue to policyholders, the embedded derivative cash flows are discounted using a rate that reflects our credit rating. For funds withheld reinsurance contracts, we do not use a credit spread as the funds are backed by the cedant's collateral. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy's life. The host contract accretion rate is updated each quarter so that the present value of actual and expected guaranteed cash flows is equal to the initial host value. Additionally, reinsurance agreements written on a modified coinsurance (modco) or funds withheld coinsurance (funds withheld) basis contain embedded derivatives. The right to receive or obligation to pay the total return on the assets supporting the funds withheld at interest or funds withheld liability, respectively, represent a total return swap with a floating rate leg. The fair value of embedded derivatives on modco and funds withheld agreements is computed as the unrealized gain (loss) on the underlying assets and is included in the funds withheld at interest and funds withheld liability lines on the consolidated balance sheets for assumed and ceded agreements, respectively. The change in the fair value of the embedded derivatives is recorded in investment related gains (losses) on the consolidated statements of income. Assumed and ceded earnings from funds withheld at interest, funds withheld liability and changes in the fair value of embedded derivatives are reported in operating activities on the consolidated statements of cash flows. Contributions to and withdrawals from funds withheld at interest and funds withheld liability are reported in operating activities on the consolidated statements of cash flows. Variable Interest Entities—An entity that does not have sufficient equity to finance its activities without additional financial support, or in which the equity investors, as a group, do not have the characteristics of a controlling financial interest is a VIE. The determination as to whether an entity qualifies as a VIE depends on the facts and circumstances surrounding each entity and may require significant judgment. Our investment funds generally qualify as VIEs and are evaluated for consolidation under the VIE model. We are required to consolidate a VIE if we are the primary beneficiary, defined as the variable interest holder with both the power to direct the activities that most significantly impact the VIE's economic performance and rights to receive benefits or obligations to absorb losses that could be potentially significant to the VIE. We determine whether we are the primary beneficiary of an entity based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and our relative exposure to the related risks of the VIE. Since affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo), a related party, are the decision makers in certain of the investment funds, we and a member of our related party group may together have the characteristics of the primary beneficiary of an investment fund. In this situation, we have concluded we are not under common control, as defined by GAAP, with the related party, and therefore consolidate in the circumstances when substantially all of the activities of the VIE are conducted on our behalf. We reassess the VIE and primary beneficiary determinations on an ongoing basis. If we are not the primary beneficiary, but are able to exert significant influence over the VIE’s operations, we record the VIE as an equity method investment. If we are not able to exercise significant influence, generally on investment funds in which we own a less than a 3% interest, we elect the fair value option. See Note 4 – Variable Interest Entities for discussion of our interest in entities that meet the definition of a VIE. Business Combinations and Goodwill—Business combination transactions are accounted for under the acquisition method. Accordingly, the purchase consideration is allocated to assets and liabilities based on their estimated fair value at the acquisition date. The consideration for the net assets acquired is determined prior to the assessment of the fair value of the net assets at the acquisition date. We have identified several intangible assets acquired in business combinations including VOBA, acquired distribution channels and state licenses. We value VOBA as described below under Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired. We value distribution channels using the multi-period excess earnings method under the income approach and the state licenses using the market approach. Distribution channels and state licenses are included in other assets on the consolidated balance sheets. Goodwill represents the excess of purchase consideration over the acquisition date fair value of net assets acquired and is included in the other assets on the consolidated balance sheets. Goodwill is not amortized but reviewed for impairment annually or more frequently if events occur or circumstances change indicating potential impairment has occurred. If the acquisition date fair value of the net assets acquired exceeds the purchase consideration in a business combination, a bargain purchase gain is recorded on the consolidated statements of income. See Note 6 – Business Combinations for details of business combination transactions. Reinsurance—We assume and cede insurance and investment contracts under coinsurance, funds withheld and modco. We follow reinsurance accounting for transactions that provide indemnification against loss or liability relating to insurance risk (risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk consisting of underwriting, investment, timing risk and any other significant risks. Cessions under reinsurance do not discharge our obligations as the primary insurer, unless the requirements of assumption reinsurance have been met. We generally have the right of offset on reinsurance contracts, but have elected to present reinsurance settlement amounts due to and from the Company on a gross basis. For investment contracts, assets and liabilities assumed or ceded under coinsurance, funds withheld, or modco are presented gross on the consolidated balance sheets. The change in assumed and ceded reserves, deposits and withdrawals are presented net in the interest sensitive contract benefits line on the consolidated statements of income. For insurance contracts, assets and liabilities assumed or ceded are presented gross on the consolidated balance sheets. The change in assumed and ceded reserves and benefits are presented net in the future policy and other policy benefits line on the consolidated statements of income. Assumed or ceded premiums are included in the premiums line of the consolidated statements of income. Accounting for reinsurance requires the use of assumptions upon agreement inception, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. We attempt to minimize our counterparty credit risk through the structuring of the terms of our reinsurance agreements, including the use of trusts, and we monitor credit ratings of counterparties for signs of declining credit quality. When a ceding company does not report information on a timely basis, we record accruals based on the best available information at the time, which includes the reinsurance agreement terms and historical experience. We periodically compare actual and anticipated experience to the assumptions used to establish reinsurance assets and liabilities. Refer to Note 7 – Reinsurance for more information. Funds Withheld – For business assumed or ceded on a funds withheld basis, a funds withheld segregated portfolio comprised of invested assets and other assets is maintained by the ceding entity, which are sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. The fair value of the funds withheld account is recorded as a funds withheld asset or liability and accrues interest payable at rates defined by the agreement terms and is settled periodically. Modco – Modco is similar to funds withheld, except that the policy benefit liabilities are also not transferred to the assuming entity. For business assumed or ceded on a modco basis, the fair value of the funds withheld is accounted for under the same method described for funds withheld reinsurance above. Assumed policy benefit liabilities are included in interest sensitive contract benefits and ceded policy benefit liabilities are included in reinsurance recoverable on the consolidated balance sheets. Cash and Cash Equivalents—Cash and cash equivalents include deposits and short-term highly liquid investments with a maturity of less than 90 days from the date of acquisition. Amounts included are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value. Restricted Cash—Restricted cash primarily consists of cash and cash equivalents held in funds in trust as part of certain coinsurance agreements to secure statutory reserves and liabilities of the coinsured parties. Restricted cash is reported separately on the consolidated balance sheets. Changes in the restricted cash balance are reported in investing activities on the consolidated statements of cash flows. Investments in Related Parties—Investments in related parties and associated earnings, other comprehensive income and cash flows are separately identified on the consolidated financial statements and accounted for consistently with the policies described above for each category of investment. Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired Deferred Acquisition Costs and Deferred Sales Inducements – Costs related to direct and successful efforts of acquiring new business are deferred to the extent they are recoverable from future premiums or gross profits. These costs consist of commissions and policy issuance costs, as well as sales inducements credited to policyholder account balances, and are included in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. We adjust the DAC and DSI balances due to the effects of net unrealized investment gains and losses on AFS securities. We perform periodic tests to determine if the deferred costs remain recoverable, including at issue. If financial performance significantly deteriorates to the point where a premium deficiency exists, then we record a cumulative charge to the current period. Each reporting period, we update estimated gross profits with actual gross profits as part of the amortization process for the interest sensitive policies. We also periodically revise the key assumptions used in the calculation of the amortization of DAC and DSI which results in revisions to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. Deferred costs related to interest sensitive life and investment-type policies, with significant revenue streams from sources other than investment of the policyholder funds, are amortized over the lives of the policies, in relation to the present value of gross profits including investment spread margins, surrender charge income, policy administration, changes in the guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) reserves and realized gains and losses on investments. Current period gross profits for fixed indexed annuities also include the impact of amounts for the change in fair value of the derivatives and the change in fair value of the embedded derivatives. Estimates of the future gross profits are based on assumptions using accepted actuarial methods. Deferred costs related to contracts with only investment related sources of revenues are amortized using the effective interest method. The effective interest method amortizes the deferred costs by discounting the future liability cash flows at a break-even rate. The break-even rate is solved such that the present value of future liability cash flows is equal to the net liability at the inception of the contract. Value of Business Acquired – We establish VOBA for insurance contract blocks assumed with the acquisition of insurance entities. We record the fair value of the liabilities assumed in two components: reserves and VOBA. Reserves are established using our best estimate assumptions, and are further described in future policy benefits and interest sensitive contract liabilities. VOBA is the difference between the fair value and the reserves. VOBA can be either positive or negative. For interest sensitive life and investment-type contracts, any negative VOBA is recorded in interest sensitive contract liabilities on the consolidated balance sheets. For long duration and insurance contracts, any negative VOBA is recorded as part of future policy benefits on the consolidated balance sheets. Positive VOBA is recorded in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. VOBA associated with funding agreements and immediate annuity contracts classified as investment contracts is amortized using the interest method. VOBA associated with immediate annuity contracts classified as long duration contracts is amortized at a constant rate in relation to net policyholder liabilities. For accumulation products, which include interest sensitive life and investment-type contracts with significant non-investment sources of revenue, VOBA is amortized in relation to the present value of estimated gross profits using methods consistent with those used to amortize DAC. Negative VOBA is amortized at a constant rate in relation to applicable net policyholder liabilities. We adjust the VOBA balance due to the OCI effects of unrealized investment gains or losses on AFS securities. We perform periodic tests to determine if the VOBA remains recoverable. If financial performance significantly deteriorates to the point where a premium deficiency exists, then we record a cumulative charge to the current period. Each reporting period, we update estimated gross profits with actual gross profits as part of the amortization process for the interest sensitive policies. We also periodically revise the key assumptions used in the calculation of the amortization of the VOBA which results in updates to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. See Note 8 – Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired for further discussion. Interest Sensitive Contract Liabilities—Interest sensitive life and investment-type contracts include fixed indexed and traditional fixed annuities in the accumulation phase, funding agreements, universal life insurance, fixed indexed universal life insurance, unit-linked contracts and immediate annuities without significant mortality risk. We carry liabilities for fixed annuities, universal life insurance, unit-linked contracts and funding agreements at the account balances without reduction for potential surrender or withdrawal charges, except for a block of universal life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, Global Atlantic) which we carry at fair value. Liabilities for immediate annuities without significant mortality risk are calculated as a present value of future liability cash flows at contractual interest rates. Changes in the interest sensitive contract liabilities, excluding deposits and withdrawals, are recorded in interest sensitive contract benefits or product charges on the consolidated statements of income. Interest sensitive contract liabilities are not reduced for amounts ceded under reinsurance agreements which are reported as reinsurance recoverable on the consolidated balance sheets. See Note 7 – Reinsurance for more information on reinsurance. Future Policy Benefits—We issue contracts classified as long-duration, which includes endowments, term and whole life, accident and health, disability, and deferred and immediate annuit ies with life contingencies. Liabilities for non-participating long-duration contracts are established using accepted actuarial valuation methods which require the use of assumptions related to expenses, investment yields, mortality, morbidity and persistency, with a provision for adverse deviation, at the date of issue or acquisition. As of December 31, 2016, the reserve investment yield assumptions for non-participating contracts range from 3.31% to 5.44% and are specific to our expected earned rate on the asset portfolio supporting the reserves. Liabilities for participating long-duration contracts are established using accepted actuarial valuation methods, which require the use of guaranteed interest and mortality assumptions. As of December 31, 2016, the reserve guaranteed interest assumptions for participating contracts range from 1.25% to 4.00% and are based on interest rates guaranteed to our policyholders. We base other key assumptions, such as mortality and morbidity, on industry standard data adjusted to align with actual company experience, if necessary. For long-duration contracts, the assumptions are locked in at contract inception and only modified if we deem the reserves to be inadequate. We periodically review actual and anticipated experience compared to the assumptions used to establish policy benefits. If the net GAAP liability (gross reserves less DAC, DSI and VOBA) is less than the gross premium liability, impairment is deemed to have occurred, and the DAC, DSI and VOBA asset balances are reduced until the net GAAP liability is equal to the gross premium liability. If the DAC, DSI and VOBA asset balances are completely written off and the net GAAP liability is still less than the gross premium liability, then an additional liability is posted to arrive at the gross premium liability. We issue and reinsure deferred annuity contracts which contain GLWB and GMDB riders. We establish future policy benefits for GLWB and GMDB by estimating the expected value of withdrawal and death benefits in excess of the projected account balance. We recognize the excess proportionally over the accumulation period based on total expected assessments. The methods we use to estimate the liabilities have assumptions about policyholder behavior, mortality and market conditions affecting the account balance growth. Future policy benefits includes liabilities for no-lapse guarantees on universal life insurance and fixed indexed universal life insurance. We establish future policy benefits for no-lapse guarantees by estimating the expected value of death benefits paid after policyholder account balances have been exhausted. We recognize these benefits proportionally over the life of the contracts based on total expected assessments. The methods we use to estimate the liabilities have assumptions about policyholder behavior, mortality and market conditions affecting the account balance growth. Changes in future policy benefits are recorded in future policy and other policy benefits on the consolidated statements of income. Future policy benefits are not reduced for amounts ceded under reinsurance agreements which are reported as reinsurance recoverable on the consolidated balance sheets. See Note 7 – Reinsurance for more information on reinsurance. Closed Block Business—Two closed blocks of policies were established in connection with the reorganization of two predecessor subsidiaries from mutual companies to stock companies, collectively referred to as the Closed Blocks, and individually referred to as the AmerUs Life Insurance Company (AmerUs) closed block (AmerUs Closed Block) and the Indianapolis Life Insurance Company (ILICO) closed block (ILICO Closed Block). Insurance policies which had a dividend scale in effect as of each closed block establishment date were included in the respective closed block. The Closed Blocks were designed to give reasonable assurance to owners of insurance policies included therein that, after the reorganization, assets would be available to maintain the dividend scales and interest credits in effect prior to the reorganization, if the experience underlying such scales and crediting continued. The assets, including related revenue, allocated to the Closed Blocks will accrue solely to the benefit of the policyholders included in the Closed Blocks until they no longer exist. A policyholder dividend obligation is required to be established for earnings in the Closed Blocks that are not available to the shareholders. See Note 9 – Closed Block for more information on the Closed Blocks. Other Policy Claims and Benefits—Other policy claims and benefits include amounts payable relating to in course of settlements (ICOS) and incurred but not reported (IBNR) liabilities associated with interest sensitive contract liabilities and future policy benefits. For traditional life and universal life policies, ICOS claim liabilities are established when we are notified of the death of the policyholder but the claim has not been paid as of the reporting date. For immediate annuities and supplemental contracts, ICOS claim liabilities are established to accrue suspended benefit payments between the date of notification of death and the date of verification of death. We determine IBNR claim liabilities using studies of past experience. The time that elapses from the death or claim date to when the claim is reported to us can vary significantly by product type, but generally ranges between one to six months for life business. We estimate IBNR claims on an undiscounted basis, using actuarial estimates of historical claims expense, adjusted for current trends and conditions. These estimates are continually reviewed and the ultimate liability may vary significantly from the amount recognized. Dividends Payable to Policyholders—Participating policies entitle the policyholders to receive dividends based on actual interest, mortality, morbidity and expense experience for the year. Dividends are distributed to the policyholders through annual or terminal dividends which the Board of Directors of the applicable insurance subsidiary approves. As of December 31, 2016 and 2015, 88% and 78%, respectively, of traditional life policies inclusive of ceded policies were paying dividends, and the related liability is recorded in dividends payable to policyholders on the consolidated balance sheets. Premiums related to policies paying dividends represented 45%, 22% and 11% of total life insurance direct premiums and deposits for the years ended December 31, 2016, 2015 and 2014, respectively. Traditional life policies inclusive of ceded policies represented 81% and 78% of the Company's individual life policies in force as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, all of the non-separate account unit-linked policies were paying dividends, and the related liability is recorded in dividends payable to policyholders on the consolidated balance sheets. There were no material deposits related to non-separate account unit-linked policies paying dividends for the years ended December 31, 2016 and 2015. Non-separate account unit-linked policies represented an insignificant percentage of our interest sensitive contracts in force as of December 31, 2016 and 2015. Policyholder dividend liabilities are recorded in dividends payable to policyholders on the consolidated balance sheets and policyholder dividends are recorded in dividends to policyholders on the consolidated statements of income. For participating policies issued by our German subsidiaries, dividends payable to policyholders includes an adjustment to recognize timing differences between GAAP and local statutory earnings that reverse and enter into future calculations of dividends to policyholders. Except for changes due to unrealized gains or losses on AFS securities, the change in this adjustment is recorded in dividends to policyholders on the consolidated statements of income. Changes in this adjustment due to unrealized gains or losses on AFS securities are recorded in OCI. Stock-Based Compensation—We have stock-based compensation plans under which restricted, incentive compensation share awards may be granted to our employees and directors and employees of Athene Asset Management, L.P. (AAM) as described in Note 12 – Stock-based Compensation. We recognize the fair value of stock-based compensation over a participant's requisite service period through a charge to compensation expense and a corresponding entry to equity or a liability based on vesting criteria and other pertinent terms of the awards. Stock-based awards are accounted for as equity awards in instances where the awards' vesting are linked to a market, performance or service condition. Equity awards to employees are generally expensed based on the grant date fair value. For equity awards issued to non-employees, the fair value is remeasured through completion of counterparty performance. Employee and non-employee stock-based awards are accounted for as liabilities in instances where the awards' vesting criteria are linked to a factor other than a market, performance or service condition. Liability awards are remeasured each reporting period until settlement. In the event that awards are reclassified from liability to equity due to modification or other changes in circumstances, they are remeasured at fair value through the date of reclassification. Earnings Per Share—We compute basic earnings per share (EPS) by dividing unrounded net income available to Athene Holding Ltd. shareholders by the weighted average number of common shares eligible for earnings and outstanding for the period. As a result, it may not be possible to recalculate EPS as presented in our consolidated financial statements. Diluted earnings per share includes the effect of all potentially dilutive common shares, options and restricted stock units (RSUs) outstanding during the period. See Note 13 – Earnings Per Share for further information. Foreign Currency—The accounts of foreign-based subsidiaries are measured using the functional currency of the subsidiary. Revenue and expenses of these businesses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. The resulting translation adjustments are included in equity as a component of AOCI. Gains or losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in net income. Recognition of Revenues and Related Expenses—Revenues for annuity and universal life-type products, including surrender and market value adjustments, costs of insurance, policy administration, GMDB, GLWB and no-lapse guarantee charges, are earned when assessed against policyholder account balances during the period. Interest sensitive contract benefits related to annuity products include interest credited to policyholder account balances. In addition, the change in fair value of embedded derivatives within fixed indexed annuity contracts is included in interest sensitive contract benefits on the consolidated statements of income. For certain assumed reinsurance transactions involving in force blocks of business, the ceding company may pay a premium equal to the initial required reserve (future policy benefit). In such transactions, we net the expense associated with the establishment of the reserve against the premiums from the transaction in interest sensitive contract benefits on the consolidated statements of income. Premiums for traditional life insurance products, including products with fixed and guaranteed premiums and benefits, are recognized as revenues when due from policyholders. All insurance related revenue is reported net of reinsurance ceded. Income Taxes—We compute income taxes using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities using estimated tax rates expected to be in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities attributable to changes in enacted income tax rates are recorded in the period of enactment. Such temporary differences are primarily due to the tax basis of reserves, DAC, unrealized investment gains/losses, reinsurance related differences, embedded derivatives and net operating loss carryforwards. Changes in deferred income tax assets and liabilities associated with components of OCI are recorded directly to OCI. We evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that it is more likely than not that some portion of the tax benefit will not be realized. We adjust the valuation allowance if, based on our evaluation, there is a change in the amount of deferred income tax assets that are deemed more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of our position. We recognize any income tax interest and penalties in income tax expense. See Note 15 – Income Taxes for discussion on withholding taxes for undistributed earnings of subsidiaries. Adopted Accounting Pronouncements Fair Value Measurement – Net Asset Value (ASU 2015-07) This update has a disclosure-only impact for entities that measure investments using NAV per share under the practical expedient in the fair value measurement guidance. We adopted this standard effective January 1, 2016, and have removed investments that are measured at NAV as a practical expedient from the fair value hierarchy in all periods presented in the notes to the consolidated financial statements. Cloud Computing Arrangements (ASU 2015-05) This update clarifies whether a cloud computing arrangement is an intangible asset or a service contract. We adopted this standard effective January 1, 2016, and the adoption of this update did not have a material effect on our consolidated financial statements. Stock-Based Compensation (ASU 2014-12) This update requires a performance target in a share-based payment arrangement that affects vesting and that could be achieved after the requisite service period to be treated as a performance condition. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. We adopted this standard effective January 1, 2016, and the adoption of this update did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Gains and Losses from the Derecognition of Nonfinancial Assets (ASU 2017-05) The amendments in this update clarify the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. We will be required to adopt this standard on a retrospective or modified retrospective basis effective January 1, 2018. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Intangibles – Simplifying the Test for Goodwill Impairment (ASU 2017-04) The amendments in this update simplify the subsequent measurement of goodwill by eliminating the comparison of the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill to determine the goodwill impairment loss. With the adoption of this guidance, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We will be required to adopt this standard prospectively effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Business Combinations – Clarifying the Definition of a Business (ASU 2017-01) The amendments in this update clarify the definition of a business with the objective of assisting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. We will be required to adopt this standard effective January 1, 2018. We are currently evaluating the impact of this guidance on our consolidated financial statements. Statement of Cash Flows – Restricted Cash (ASU 2016-18) This update requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. We will be required to adopt this standard retrospectively for each period presented effective January 1, 2018. Early adoption is permitted. The adoption of this update will require us to change the presentation on the consolidated statements of cash flows for restricted cash or restricted cash equivalents; however, we do not expect the adoption of this update to have a material effect on our consolidated financial statements. Consolidation – Interest Held through Related Parties under Common Control (ASU 2016-17) This update amends the consolidation guidance to change how indirect interests in VIEs are evaluated by a reporting entity when determining whether or not it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Currently, if a single decision maker and its related parties are under common control, the single decision maker is required to consider indirect interests held through related parties to be the equivalent of direct interests in their entirety. The amendments change the evaluation of indirect interests to be considered on a proportionate basis. We will be required to adopt this standard retrospectively for each period presented effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Income Taxes – Intra-Entity Transfers (ASU 2016-16) This update requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets, other than inventory. Currently, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. We will be required to adopt this standard on a modified retrospective basis effective January 1, 2018. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Statement of Cash Flows (ASU 2016-15) This update provides specific guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update also clarifies the application of the predominance principle when cash receipts and cash payments have aspects of more than one class of cash flows. We will be required to adopt this standard effective January 1, 2018. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Financial Instruments – Credit Losses (ASU 2016-13) This update is designed to reduce complexity by limiting the number of credit impairment models used for different assets. The model will result in accelerated credit loss recognition on assets held at amortized cost, which includes our commercial and residential mortgage investments. The identification of credit-deteriorated securities will include all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, any changes in the expected cash flows of credit-deteriorated securities will be recognized immediately in the income statement. Available-for-sale fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. We will be required to adopt this standard effective January 1, 2020. Early adoption is permitted effective January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. Revenue Recognition (ASU 2016-20, ASU 2016-12, ASU 2016-11, ASU 2016-10, ASU 2016-08, ASU 2015-14 and ASU 2014-09) ASU 2014-09 indicates an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 provided for a one-year deferral of the effective date, which will require us to adopt this standard effective January 1, 2018. ASU 2016-08 amends the principal-versus-agent implementation guidance and illustrations in ASU 2014-09. ASU 2016-10 clarifies the identification of performance obligations as well as licensing implementation guidance. ASU 2016-11 brings existing Securities and Exchange Commission (SEC) guidance into conformity with revenue recognition accounting guidance of ASU 2014-09 discussed above. ASU 2016-12 provides clarification on assessing collectability, presentation of sales tax, non-cash consideration and transition. ASU 2016-20 addresses necessary technical corrections and improvements to clarify codification amended by ASU 2014-09 within Topic 606. The revenue recognition updates replace all general and most industry-specific revenue recognition guidance, excluding insurance contracts, leases, financial instruments and guarantees, which have been scoped out of the update. Since the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards, only a portion of our revenues are impacted by this guidance. Our evaluation process includes, but is not limited to, identifying contracts within the scope of the guidance, reviewing and documenting our accounting for these contracts, and identifying and determining the accounting for any related contract costs. Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) This update simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, forfeitures and classification on the statement of cash flows. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Equity Method and Joint Ventures (ASU 2016-07) This update eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Derivatives and Hedging – Contingent Put and Call Options (ASU 2016-06) This update is intended to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to debt hosts. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Derivatives and Hedging – Effects of Derivative Contract Novation (ASU 2016-05) This update is intended to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require a de-designation of that hedging relationship provided all other hedge accounting criteria continue to be met. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Leases (ASU 2016-02) This update is intended to increase transparency and comparability for lease transactions. A lessee is required to recognize an asset and a liability for all lease arrangements longer than 12 months. Lessor accounting is largely unchanged. We will be required to adopt this standard on a modified retrospective basis effective January 1, 2019. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Financial Instruments – Recognition and Measurement (ASU 2016-01) This update retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. We currently recognize changes in fair value related to AFS equity securities in AOCI on the consolidated balance sheets. We will be required to adopt this standard with a cumulative-effect adjustment to beginning retained earnings effective January 1, 2018. Refer to Note 2 – Investments for further information on the unrealized gains and losses of our AFS equity securities. |
Investments |
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Investments Schedule [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | 2. Investments Available-for-sale Securities—The following table represents the cost or amortized cost, gross unrealized gains and losses, fair value and OTTI in AOCI of our AFS investments by asset type. Our AFS investment portfolio includes direct investments in affiliates of Apollo where Apollo can exercise significant influence over the affiliates. These investments are presented as investments in related parties on the consolidated balance sheets, and are separately disclosed below.
The amortized cost and fair value of fixed maturity AFS securities, including related party, are shown by contractual maturity below:
Actual maturities can differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Unrealized Losses on AFS Securities—The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by class of security and length of time the fair value has remained below cost or amortized cost:
As of December 31, 2016, we held 2,117 AFS securities that were in an unrealized loss position. Of this total, 899 were in an unrealized loss position longer than 12 months. As of December 31, 2016, we held 14 related party AFS securities that were in an unrealized loss position. Of this total, 10 were in an unrealized loss position longer than 12 months. The unrealized losses on AFS securities can primarily be attributed to changes in market interest rates since acquisition. We did not recognize the unrealized losses in income as we intend to hold these securities and it is not more likely than not we will be required to sell a security before the recovery of its amortized cost. Other-Than-Temporary Impairments—For the year ended December 31, 2016, we incurred $30 million of net OTTI, of which $5 million related to intent-to-sell impairments. These securities were impaired to fair value as of the impairment date. The remainder of net OTTI of $25 million related to credit impairments, of which $14 million related to credit loss impairments that we impaired to fair value and did not bifurcate a portion of the impairment in AOCI. The credit loss impairments not bifurcated in AOCI are excluded from the rollforward below. The following table represents a rollforward of the cumulative amounts recognized on the consolidated statements of income for OTTI related to pre-tax credit loss impairments on AFS fixed maturity securities, for which a portion of the securities' total OTTI was recognized in AOCI:
Net Investment Income—Net investment income by asset type consists of the following:
Investment Related Gains (Losses)—Investment related gains (losses) by asset type consist of the following:
Proceeds from sales of AFS securities were $4,662 million, $6,899 million and $6,391 million for the years ended December 31, 2016, 2015 and 2014, respectively. Included in net realized investment gains (losses) on trading securities are gains of $38 million, losses of $133 million and gains of $258 million resulting from the change in unrealized gains or losses for the underlying securities we still held as of December 31, 2016, 2015 and 2014, respectively. Also included in net realized investment gains (losses) on trading securities are related party losses of $10 million, losses of $10 million and gains of $13 million resulting from the change in unrealized gains or losses for the underlying securities we still held as of December 31, 2016, 2015 and 2014, respectively. PCI Investments—The following table summarizes our PCI investments:
During the respective year, we acquired PCI investments with the following amounts at the time of purchase:
The following tables summarize the activity for the accretable yield on PCI investments:
Mortgage Loans—Mortgage loans, net of allowances, consist of the following:
We primarily make commercial mortgage loans on income producing properties including hotels, industrial properties and retail and office buildings. We diversify the commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. We evaluate mortgage loans based on relevant current information to confirm if properties are performing at a consistent and acceptable level to secure the related debt. The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows:
Our residential mortgage loan portfolio includes first lien residential mortgage loans, collateralized by properties located in the U.S. As of December 31, 2016, California, Florida and New York represented 38.9%, 9.1% and 5.1%, respectively, of the portfolio. The remaining 46.9% represented all other states, with each individual state comprising less than 5% of the portfolio. As of December 31, 2015, California, Texas and Washington represented 64.8%, 10.1% and 5.6%, respectively, of the portfolio, and the remaining 19.5% represented all other states, with each individual state comprising less than 5% of the portfolio. Mortgage Loan Valuation Allowance—The assessment of mortgage loan impairments and valuation allowances is substantially the same for residential and commercial mortgage loans. The valuation allowance was $2 million as of December 31, 2016 and 2015. We did not record any material impairments or significant activity in the valuation allowance during the years ended December 31, 2016, 2015 or 2014. Residential mortgage loans – The primary credit quality indicator of residential mortgage loans is loan performance. Nonperforming residential mortgage loans are 90 days or more past due and/or are in non-accrual status. All of our residential mortgage loans were performing as of December 31, 2016 and 2015. Commercial mortgage loans – The following provides the aging of our commercial mortgage loan portfolio, including those under development, net of valuation allowances:
Loan-to-value and debt service coverage ratios are measures we use to assess the risk and quality of commercial mortgage loans other than those under development. Loans under development are not evaluated using these ratios as they are generally not yet income-producing and the value of the underlying property significantly fluctuates based on the progress of construction. Therefore, the risk and quality of loans under development are evaluated based on the aging and geographical distribution of such loans as shown above. The loan-to-value ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances:
The debt service coverage ratio, based upon the most recent financial statements, is expressed as a percentage of a property's net income to its debt service payments. A debt service ratio of less than 1.0 indicates a property's operations do not generate enough income to cover debt payments. The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances:
Real Estate—Depreciation expense on invested real estate was $9 million and $2 million during the years ended December 31, 2016 and 2015, respectively. Accumulated depreciation was $11 million and $2 million as of December 31, 2016 and 2015, respectively. Investment Funds—Our investment fund portfolio consists of funds that employ various strategies and include investments in mortgage and real estate, credit, private equity, natural resources and hedge funds. Investment funds meet the definition of variable interest entities and are discussed further in Note 4 – Variable Interest Entities. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | 3. Derivative Instruments We use a variety of derivative instruments to manage risks, primarily equity, interest rate, credit, foreign currency and market volatility. See Note 1 – Business, Basis of Presentation and Significant Accounting Policies for a description of our accounting policies for derivatives and Note 5 – Fair Value for information about the fair value hierarchy for derivatives. The following table presents the notional amount and fair value of derivative instruments:
Derivatives Designated as Hedges Foreign currency swaps – We use foreign currency swaps to convert foreign currency denominated cash flows of an investment to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Certain of these swaps are designated and accounted for as cash flow hedges, which will expire by June 2043. During the years ended December 31, 2016, 2015 and 2014, we had foreign currency swap losses of $5 million, gains of $9 million and losses of $7 million, respectively, recorded in AOCI. There were no amounts reclassified to income and no amounts deemed ineffective for the years ended December 31, 2016, 2015 and 2014. Interest rate swaps – We use interest rate swaps to reduce market risks from interest rate changes and to alter interest rate exposure arising from duration mismatches between assets and liabilities. Certain of these swaps entered into during the year ended December 31, 2016 are designated as fair value hedges. With an interest rate swap, we agree with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed-upon notional principal amount at specified intervals. The following table represents the gains and losses on derivatives and the related hedged items in fair value hedge relationships, recorded in interest sensitive contract benefits on the consolidated statements of income:
Derivatives Not Designated as Hedges Equity options – We use equity indexed options to economically hedge fixed indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specified market index, primarily the S&P 500. To hedge against adverse changes in equity indices, we enter into contracts to buy the equity indexed options within a limited time at a contracted price. The contracts are net settled in cash based on differentials in the indices at the time of exercise and the strike price. Futures – Futures contracts are purchased to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. We enter into exchange-traded futures with regulated futures commission clearing brokers who are members of a trading exchange. Under exchange-traded futures contracts, we agree to purchase a specified number of contracts with other parties and to post variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts. Total return swaps – We purchase total rate of return swaps to gain exposure and benefit from a reference asset without ownership. Total rate of return swaps are contracts in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of the underlying asset, which includes both the income it generates and any capital gains. Credit default swaps – Credit default swaps provide a measure of protection against the default of an issuer or allow us to gain credit exposure to an issuer or traded index. We use credit default swaps coupled with a bond to synthetically create the characteristics of a reference bond. These transactions have a lower cost and are more liquid relative to the cash market. We receive a periodic premium for these transactions as compensation for accepting credit risk. Hedging credit risk involves buying protection for existing credit risk. The exposure resulting from the agreements, which is usually the notional amount, is equal to the maximum proceeds that must be paid by a counterparty for a defaulted security. If a credit event occurs on a reference entity, then a counterparty who sold protection is required to pay the buyer the trade notional amount less any recovery value of the security. Variance swaps – We have variance swaps to hedge the growth in interest credited to the customer as a direct result of changes in the volatility of the specified market index, primarily the S&P 500. In a variance swap transaction, we agree to exchange future realized volatility for current implied volatility. This type of contract pays the difference between the realized variance and a predefined strike multiplied by a notional value. Foreign currency forwards – We use foreign currency forward contracts to hedge certain exposures to foreign currency risk. The price is agreed upon at the time of the contract and payment is made at a specified future date. Embedded derivatives – We have embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Host contracts include reinsurance agreements structured on a modco or funds withheld basis and indexed annuity products. The following is a summary of the gains (losses) related to derivatives not designated as hedges:
Credit Risk—We may be exposed to credit-related losses in the event of counterparty nonperformance on derivative financial instruments. Generally, the current credit exposure of our derivative contracts is the fair value at the reporting date less any collateral received from the counterparty. We manage credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties. Where possible, we maintain collateral arrangements and use master netting agreements that provide for a single net payment from one counterparty to another at each due date and upon termination. We have also established counterparty exposure limits, where possible, in order to evaluate if there is sufficient collateral to support the net exposure. Collateral arrangements typically require the posting of collateral in connection with its derivative instruments. Collateral agreements often contain posting thresholds, some of which may vary depending on the posting party's financial strength ratings. Additionally, a decrease in our financial strength rating to a specified level can result in settlement of the derivative position. As of December 31, 2016 and 2015, we had $25 million and $9 million, respectively, of collateral pledged to counterparties. The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows:
Certain derivative instruments contain provisions for credit-related events, such as downgrades in our credit ratings or for a negative credit event of a credit default swap's reference entity. If a credit event were to occur, we may be required to settle an outstanding liability. The following is a summary of our exposure to credit-related events:
As of December 31, 2016 or 2015, no additional collateral would be required if a default or termination event were to occur. |
Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | 4. Variable Interest Entities Our investment funds meet the definition of a VIE, and in certain cases these investment funds are consolidated in our financial statements because we meet the criteria of the primary beneficiary. Consolidated VIEs—We consolidate AAA Investments (Co-Invest VI), L.P. (CoInvest VI), AAA Investments (Co-Invest VII), L.P. (CoInvest VII), AAA Investments (Other). L.P. (CoInvest Other), London Prime Apartments Guernsey Holdings Limited (London Prime) and NCL Athene, LLC (NCL LLC), which are investment funds. We are the only limited partner in these investment funds and receive all of the economic benefits and losses, other than management fees and carried interest, as applicable, paid to the general partner in each entity, which are related parties. We do not have any voting rights as limited partner and do not solely satisfy the power criteria to direct the activities that significantly impact the economics of the VIE. However, the criteria for the primary beneficiary are satisfied by our related party group and because substantially all of the activities are conducted on our behalf, we consolidate the investment funds. No arrangement exists requiring us to provide additional funding in excess of our committed capital investment, liquidity, or the funding of losses or an increase to our loss exposure in excess of our investment in the VIEs. We elected the fair value option for certain fixed maturity and equity securities and investment funds, which are reported in the consolidated variable interest entity sections on the consolidated balance sheets. CoInvest VI, CoInvest VII and CoInvest Other were formed to make investments, including co-investments alongside private equity funds sponsored by Apollo. We received our interests in CoInvest VI, CoInvest VII and CoInvest Other as part of a contribution agreement in 2012 with AAA Guarantor – Athene, L.P. and its subsidiary, Apollo Life Re Ltd., in order to provide a capital base to support future acquisitions. London Prime was formed for the purpose of investing in Prime London Ventures Limited, a Guernsey limited company, which purchases rental residential assets across prime central London. During the year ended December 31, 2014, we consolidated MidCap Financial Holdings LLC (MidCap Financial) through our investment in CoInvest VII. MidCap Financial was determined to be a VIE and CoInvest VII was the primary beneficiary. In January 2015, CoInvest VII contributed MidCap Financial to a newly formed entity, MidCap FinCo Limited (MidCap) in exchange for subordinated notes issued by MidCap and shares in MidCap's parent company. As a result of this restructuring, CoInvest VII owns the MidCap Financial investment indirectly through MidCap. The significant investment by new, unrelated investors and a qualitative assessment of the impact of the restructuring resulted in a determination that CoInvest VII is not the primary beneficiary of MidCap. Therefore, since the completion of the restructuring, CoInvest VII has accounted for MidCap as an equity method investment, and thereafter, MidCap Financial has not been consolidated in our financial statements. During 2016, we purchased a pool of loans sourced by MidCap and contemporaneously sold subordinated participation interests in the loans to a subsidiary of MidCap. As of December 31, 2016, the $14 million due to MidCap under the subordinated participation agreement is reflected as a secured borrowing in other liabilities on the consolidated balance sheets. During the third quarter of 2016, CoInvest VI contributed its largest investment, Norwegian Cruise Line Holdings Ltd. (NCLH) shares, to a newly formed entity, NCL LLC, in exchange for 100% of the membership interests in this entity. Subsequent to this contribution, CoInvest VI distributed its Class A membership interests in NCL LLC to us and the Class B membership interests in NCL LLC to the general partner of CoInvest VI. NCL LLC is subject to the same management fees, selling restrictions and carried interest calculation as CoInvest VI. NCL LLC classifies its NCLH shares as AFS equity securities. We are the primary beneficiary and consolidate NCL LLC, as substantially all of its activities are conducted on our behalf. We previously consolidated the 2012 CMBS-I Fund L.P., a Delaware limited partnership, and 2012 CMBS-II Fund L.P., a Delaware limited partnership (collectively, CMBS Funds). The CMBS Funds were originally formed with the objective of generating high risk-adjusted investment returns by investing primarily in a portfolio of eligible CMBS and using leverage through repurchase agreements treated as collateralized financing. During the third quarter of 2016, the CMBS Funds each sold investments to fully settle the borrowings under their respective repurchase agreements of $500 million. The remaining investments of $167 million were distributed directly to us. During the fourth quarter of 2016, the CMBS Funds were fully dissolved. Borrowings – As of December 31, 2015, the CMBS Funds had borrowings outstanding under repurchase agreements with UBS totaling $500 million at a weighted average interest rate of 3.2%. Trading securities – including related party – Trading securities represents investments in fixed maturity and equity securities with changes in fair value recognized in investment related gains (losses) within revenues of consolidated variable interest entities on the consolidated statements of income. For the years ended December 31, 2016, 2015 and 2014, investment related gains (losses) included losses of $78 million, $33 million and $74 million, respectively, resulting from the change in unrealized gains and losses underlying trading securities we still held as of the respective period end date. Trading securities held by CoInvest VI, CoInvest VII and CoInvest Other are considered related party investments because Apollo affiliates exercise significant influence over the operations of these investees. Investment funds – including related party – Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures that meet the definition of VIEs; however, our consolidated VIEs are not considered the primary beneficiary of these investment funds. Changes in fair value of these investment funds are included in investment related gains (losses) within revenues of consolidated variable interest entities on the consolidated statements of income. Investment funds held by CoInvest VII and CoInvest Other are considered related party investments as they are sponsored or managed by Apollo affiliates. Fair Value – See Note 5 – Fair Value for a description of the levels of our fair value hierarchy and our process for determining the level we assign our assets and liabilities carried at fair value. The following represents the hierarchy for assets and liabilities of our consolidated VIEs measured at fair value on a recurring basis:
Fair Value Valuation Methods—Refer to Note 5 – Fair Value for the valuation methods used to determine the fair value of trading securities, investment funds, and cash and cash equivalents. Level 3 Financial Instruments – The following is a reconciliation for all VIE Level 3 assets and liabilities measured at fair value on a recurring basis:
There were no transfers between Level 1 or Level 2 during the years ended December 31, 2016 and 2015. Significant Unobservable Inputs – For certain Level 3 trading securities and investment funds, the valuations have significant unobservable inputs for comparable multiples and weighed average cost of capital rates applied in the valuation models. These inputs in isolation can cause significant increases or decreases in fair value. Specifically, the comparable multiples are multiplied by the underlying investment's earnings before interest, tax, depreciation and amortization to establish the total enterprise value of the underlying investments. We use a comparable multiple consistent with the implied trading multiple of public industry peers. For other Level 3 trading securities, loans held for investment and borrowings, valuations are performed using a discounted cash flow model. For a discounted cash flow model, the significant input is the discount rate applied to present value the projected cash flows. An increase in the discount rate can significantly lower the fair value; a decrease in the discount rate can significantly increase the fair value. The discount rate is determined by considering the weighted average cost of capital calculation of companies in similar industries with comparable debt to equity ratios. We applied a discount to the values reported by the investment funds for certain Level 3 trading securities and investment funds held within consolidated VIEs related to the lack of marketability of the underlying investment as of December 31, 2015. The weighted average of the discount rates applied to each individual investment was 34% as of December 31, 2015. Due to changing market conditions and the timing of liquidity events, we determined the liquidity discounts related to marketability assumptions used in the valuation of certain investments reported by the consolidated VIEs were no longer required. Fair Value Option – The following represents the gains (losses) recorded for instruments within the consolidated VIEs for which we have elected the fair value option:
For fair value option loans held for investment, we record interest income in net investment income within revenues of consolidated variable interest entities on the consolidated statements of income. Gains or losses from initial measurement and subsequent changes in fair value are recorded in investment related gains (losses) within revenues of consolidated variable interest entities on the consolidated statements of income. Fair Value of Financial Instruments Not Held at Fair Value – Assets of consolidated variable interest entities includes $11 million and $18 million of investment funds accounted for under the equity method and, therefore, not carried at fair value as of December 31, 2016 and 2015, respectively; however, the carrying amount approximates fair value. Liabilities of consolidated variable interest entities included $500 million of borrowings held at cost as of December 31, 2015 and the unpaid principal balance of borrowings approximated fair value. Commitments and Contingencies – Included in assets of CoInvest VI are equity investments in publicly traded shares of Caesars Entertainment Corporation (CEC) and Caesars Acquisition Company (CAC). We received the CEC and CAC shares as part of a contribution agreement in 2012 with AAA Guarantor - Athene, L.P. and its subsidiary, Apollo Life Re Ltd., in order to provide a capital base to support future acquisitions. There are pending claims against CEC, CAC and/or others, related to certain guaranties issued for debt of Caesars Entertainment Operating Company, Inc. (CEOC) and/or certain transactions involving CEOC and certain of its subsidiaries (collectively, Debtors), CEC, CAC and others. CEC and the Debtors announced on or about September 26, 2016, that CEC and CEOC had received confirmations from representatives of CEOC's major creditor groups of those groups’ support for a term sheet that describes the key economic terms of a proposed consensual chapter 11 plan for the Debtors. The plan, containing such terms and further including such other terms respecting, among other things, the merger of CAC into CEC, that CoInvest VI and others will not retain their pre-merger CEC shares, that CoInvest VI and others will retain the value of their CAC shares when receiving shares in the merged CEC, and that CoInvest VI and others will receive releases to the fullest extent permitted by law, was confirmed by the Bankruptcy Court by order dated January 17, 2017. Conditions precedent to the effective date of the plan include regulatory approvals from the various gaming regulators, CEC and CAC shareholders approval of the proposed merger, and securing required financings. As a result, CoInvest VI has recorded a liability of $27 million for the entire carrying value of the CEC shares. As of December 31, 2016, CoInvest VI's investment in CAC is carried at its fair value of $45 million. Non-Consolidated VIEs—We invest in other entities meeting the definition of a VIE. We do not consolidate these investments because we do not meet the criteria of primary beneficiary as described below. Fixed Maturity Securities – We invest in securitization entities as a debt holder or an investor in the residual interest of the securitization vehicle, which are included in fixed maturity securities on the consolidated balance sheets. These entities are deemed VIEs due to insufficient equity within the structure and lack of control by the equity investors over the activities that significantly impact the economics of the entity. In general, we are a debt investor within these entities and, as such, hold a variable interest; however, due to the debt holders' lack of ability to control the decisions within the trust that significantly impact the entity, and the fact the debt holders are protected from losses due to the subordination by the equity tranche, the debt holders are not deemed the primary beneficiary. Securitization vehicles in which we hold the residual tranche are not consolidated because we do not unilaterally have substantive rights to remove the general partner, or when assessing related party interests, we are not under common control, as defined by GAAP, with the related party, nor are substantially all of the activities conducted on our behalf; therefore, we are not deemed the primary beneficiary. Debt investments and investments in the residual tranche of securitization entities are considered debt instruments and are held at fair value on the balance sheet and classified as AFS or trading. Investment funds – Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures that meet the definition of VIEs. A portion of these investment funds are sponsored and managed by unrelated parties in which we, as limited partner, do not have the power to direct the activities that most significantly impact the economic performance of the fund, nor do we unilaterally have substantive rights to remove the general partner or dissolve the entity without cause. As a result, we do not meet the power criterion to be considered the primary beneficiary and do not consolidate these VIEs in our financial statements. We also have equity interests in investment funds where the general partner or investment manager is a related party. We have determined we are not under common control, as defined by GAAP, with the related party, nor are we deemed to be the primary beneficiary. As a result, investments in these VIEs are not consolidated. We account for non-consolidated investment funds where we are able to exercise significant influence over the entity under the equity method or by electing the fair value option. For non-consolidated investment funds where we are not able to exercise significant influence, we elect the fair value option. NAV is used as a practical expedient for fair value when the fair value option is elected. Our investments in investment funds are generally passive in nature as we do not take an active role in the investment fund's management. Our risk of loss associated with our non-consolidated VIEs is limited and depends on the investment as follows: (1) investment funds accounted for under the equity method are limited to our initial investment plus unfunded commitments; (2) investment funds under the fair value option are limited to the fair value plus unfunded commitments; (3) AFS securities and other investments are limited to cost or amortized cost; and (4) trading securities are limited to carrying value. The following summarizes the carrying value and maximum loss exposure of these non-consolidated VIEs:
The following summarizes our investment funds, including related party investment funds and investment funds owned by consolidated VIEs:
Summarized Ownership of Investment Funds—The following is the aggregated summarized financial information of equity method investees, including those where we elected the fair value option, and may be presented on a lag due to the availability of financial information from the investee:
The following table presents the carrying value by ownership percentage of equity method investment funds, including related party investment funds and investment funds owned by consolidated VIEs:
The following table presents the carrying value by ownership percentage of investment funds where we elected the fair value option, including related party investment funds and investment funds owned by consolidated VIEs:
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | 5. Fair Value Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. We determine fair value based on the following fair value hierarchy: Level 1 – Unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 – Quoted prices for inactive markets or valuation techniques that require observable direct or indirect inputs for substantially the full term of the asset or liability. Level 2 inputs include the following:
Level 3 – Prices or valuation techniques with unobservable inputs significant to the overall fair value estimate. These valuations use critical assumptions not readily available to market participants. Level 3 valuations are based on market standard valuation methodologies, including discounted cash flows, matrix pricing or other similar techniques. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the instrument's fair value measurement. We use a number of valuation sources to determine fair values. Valuation sources can include quoted market prices; third-party commercial pricing services; third-party brokers; industry-standard, vendor modeling software that uses market observable inputs; and other internal modeling techniques based on projected cash flows. We periodically review the assumptions and inputs of third-party commercial pricing services through internal valuation price variance reviews, comparisons to internal pricing models, back testing to recent trades, or monitoring trading volumes. The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis:
Refer to Note 4 – Variable Interest Entities for fair value disclosures associated with consolidated VIEs. Fair Value Valuation Methods—We used the following valuation methods and assumptions to estimate fair value: AFS and trading securities Fixed maturity – We obtain the fair value for most marketable bonds without an active market from several commercial pricing services. These are classified as Level 2 assets. The pricing services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data. This category typically includes U.S. and non-U.S. corporate bonds, U.S. agency and government guaranteed securities, ABS, CMBS and RMBS. We value privately placed fixed maturity securities based on the credit quality and duration of comparable marketable securities, which may be securities of another issuer with similar characteristics. In some instances, we use a matrix-based pricing model. These models consider the current level of risk-free interest rates, corporate spreads, credit quality of the issuer and cash flow characteristics of the security. We also consider additional factors such as net worth of the borrower, value of collateral, capital structure of the borrower, presence of guarantees and our evaluation of the borrower's ability to compete in its relevant market. Privately placed fixed maturity securities are classified as Level 2 or 3. Equity securities – Fair values of publicly traded equity securities are based on quoted market prices and classified as Level 1. Other equity securities, typically private equities or equity securities not traded on an exchange, we value based on other sources, such as commercial pricing services or brokers and are classified as Level 2 or 3. Mortgage loans – Mortgage loans for which we have elected the fair value option or those held for sale are carried at fair value. We estimate fair value on a monthly basis using discounted cash flow analysis and rates being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. The discounted cash flow model uses unobservable inputs, including estimates of discount rates and loan prepayments. Mortgage loans are classified as Level 3. Funds withheld (embedded derivative) – We estimate the fair value of the embedded derivative based on the change in the fair value of the assets supporting the funds withheld payable under the combined coinsurance, modco and coinsurance funds withheld reinsurance agreements. As a result, the fair value of the embedded derivative is classified as Level 2 or 3 based on the valuation methods used for the assets held in trust supporting the reinsurance agreements. Derivatives – Derivative contracts can be exchange traded or over-the-counter. Exchange-traded derivatives typically fall within Level 1 of the fair value hierarchy depending on trading activity. Over-the-counter derivatives are valued using valuation models or an income approach using third-party broker valuations. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates and correlation of the inputs. We consider and incorporate counterparty credit risk in the valuation process through counterparty credit rating requirements and monitoring of overall exposure. We also evaluate and include our own nonperformance risk in valuing derivatives. The majority of our derivatives trade in liquid markets; therefore, we can verify model inputs and model selection does not involve significant management judgment. These are typically classified within Level 2 of the fair value hierarchy. Cash and cash equivalents – The carrying amount for cash equals fair value. We estimate the fair value for cash equivalents based on quoted market prices. These assets are classified as Level 1. Interest sensitive contract liabilities (embedded derivative) – Embedded derivatives related to interest sensitive contract liabilities with fixed indexed annuity products are classified as Level 3. The valuations include significant unobservable inputs associated with economic assumptions and actuarial assumptions for policyholder behavior. Unit-linked contracts – Unit-linked contracts are valued based on the fair value of the investments supporting the contract. The underlying investments are trading securities comprised primarily of mutual funds. The valuations of these are based on quoted market prices for similar assets and are classified in Level 2, resulting in a corresponding classification for the unit-linked contracts. AmerUs Closed Block – We elected the fair value option for the future policy benefits liability in the AmerUs Closed Block. Our valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block's cost to hold capital in excess of existing liabilities on the closed block. This component uses a present value of future cash flows, which includes investment earnings and policyholder liability movements. Unobservable inputs include estimates for these items. The target surplus as a percentage of statutory reserves is 3.85% based on the statutory risk-based capital ratio applicable to this block of business. The AmerUs Closed Block policyholder liabilities and any corresponding reinsurance recoverable are classified as Level 3. ILICO Closed Block – We elected the fair value option for the ILICO Closed Block. Our valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block's obligations to the closed block business. This component uses the present value of future cash flows. The cash flows include commissions, administrative expenses, reinsurance premiums and benefits, and an explicit cost of capital. Unobservable inputs include estimates for these items. The explicit cost of capital assumption is 9% of required capital, post tax. A margin of 9.42% is included in the discount rates to reflect the business risk. An additional 0.26% is included to reflect non-performance risk. The ILICO Closed Block policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3. Universal life liabilities and other life benefits – We elected the fair value option for certain blocks of universal and other life business ceded to Global Atlantic. We use a present value of liability cash flows. Unobservable inputs include estimates of mortality, persistency, expenses, premium payments and a risk margin used in the discount rates that reflects the riskiness of the business. The risk margin was 0.09%. These universal life policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3. Fair Value Option—The following represents the gains (losses) recorded for instruments for which we have elected the fair value option:
For fair value option mortgage loans, we record interest income in net investment income and subsequent changes in fair value in investment related gains (losses) on the consolidated statements of income. Gains and losses related to investment funds, including related party investment funds, are recorded in net investment income on the consolidated statements of income. We record the change in fair value of future policy benefits to future policy and other policy benefits on the consolidated statements of income. The following summarizes information for fair value option mortgage loans:
There were no fair value option mortgage loans 90 days or more past due as of December 31, 2016 and 2015. Transfers Between Levels—Transfers into Level 3 generally represent securities that were valued using pricing sources which, due to changing market conditions, were less observable than in prior periods as indicated by the increased volatility, which was reflected in vendor prices obtained for individual securities. Additionally, changes in pricing sources also led to securities transferring into Level 3. Transfers out of Level 3 generally represent securities that were valued using pricing sources which, due to changing market conditions, were more observable than in prior periods as indicated by decreased volatility, which was reflected in vendor prices obtained for individual securities. Additionally, changes in pricing sources also led to securities transferring into Level 2. Transfers into or out of any level are assumed to occur at the end of the period. For the years ended December 31, 2016 and 2015, there were no transfers between Level 1 and Level 2. Level 3 Financial Instruments—The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis:
The following represents the gross components of purchases, issuances, sales and settlements, net, shown above:
Significant Unobservable Inputs—Significant unobservable inputs occur when we could not obtain or corroborate the quantitative detail of the inputs. This applies to AFS securities, trading securities, mortgage loans and credit default swaps. Additional significant unobservable inputs are described below. Fixed maturity securities – For certain fixed maturity securities, internal models are used to calculate the fair value. We use a discounted cash flow approach. The discount rate is the significant unobservable input due to the determined credit spread being internally developed, illiquid, or as a result of other adjustments made to the base rate. The base rate represents a market comparable rate for securities with similar characteristics. Discounts ranged from 4% to 8%. This excludes assets for which significant unobservable inputs are not developed internally, primarily consisting of broker quotes. Interest sensitive contract liabilities – embedded derivative – Significant unobservable inputs we use in the fixed indexed annuities embedded derivative of the interest sensitive contract liabilities valuation include:
The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities:
Fair Value of Financial Instruments Not Carried at Fair Value—The following represents our financial instruments not carried at fair value on the consolidated balance sheets:
We estimate the fair value for financial instruments not carried at fair value using the same methods and assumptions as those we do carry at fair value. The financial instruments presented above are reported at carrying value on the consolidated balance sheets; however, in the case of policy loans, funds withheld at interest and liability, other investments and related party short-term investments, the carrying amount approximates fair value. Investment in related parties – Other investments – The fair value of related party other investments is determined using a discounted cash flow model using discount rates for similar investments. Interest sensitive contract liabilities – The carrying and fair value of interest sensitive contract liabilities above includes fixed indexed and traditional fixed annuities without mortality or morbidity risks, funding agreements and payout annuities without life contingencies. The embedded derivatives within fixed indexed annuities without mortality or morbidity risks are excluded, as they are carried at fair value. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates, adding a spread to reflect our nonperformance risk and subtracting a risk margin to reflect uncertainty inherent in the projected cash flows. |
Business Combinations |
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Business Combinations | 6. Business Combinations Delta Lloyd Deutschland AG (DLD)—Effective October 1, 2015, we acquired 100% of the voting equity interests of DLD and $50 million of intercompany loans from Delta Lloyd N.V. for a cash purchase price of $74 million. DLD was a Germany-domiciled insurance group with an in force book of business primarily made up of participating long-duration savings products. We acquired DLD to strategically expand our core business into Germany. Following the acquisition, DLD was renamed Athene Deutschland GmbH. The following summarizes the fair values of the assets acquired and liabilities assumed in the DLD acquisition:
DLD contributed $129 million of revenue and $6 million of net income during the year ended December 31, 2015. Transaction costs incurred during the years ended December 31, 2015 and 2014 for this acquisition was $15 million and $7 million, respectively, and are included in policy and other operating expenses on the consolidated statements of income. The following unaudited pro forma revenue and net income assumes a January 1, 2014 acquisition date for DLD:
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance | 7. Reinsurance The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the consolidated statements of income:
Reinsurance typically provides for recapture rights on the part of the ceding company for certain events of default. Additionally, some agreements require us to place assets in trust accounts for the benefit of the ceding entity. As of December 31, 2016 and 2015, we held assets in trusts of $1,148 million and $1,314 million, respectively. Although we own the assets placed in trust, their use is restricted based on the trust agreement terms. If the statutory book value of the assets, or in certain cases fair value, in a trust declines because of impairments or other reasons, we may be required to contribute additional assets to the trust. In addition, the assets within a trust may be subject to a pledge in favor of the applicable reinsurance company. Global Atlantic ceded reinsurance transactions—We have a 100% coinsurance and assumption agreement with Global Atlantic. The agreement ceded all existing open block life insurance business issued by Athene Annuity and Life Company (AAIA), with the exception of enhanced guarantee universal life insurance products. We also entered into a 100% coinsurance agreement with Global Atlantic to cede all policy liabilities of the ILICO Closed Block. The ILICO Closed Block consists primarily of participating whole life insurance policies. We also have an excess of loss arrangement with Global Atlantic to reimburse us for any payments required from our general assets to meet the contractual obligations of the AmerUs Closed Block not covered by existing reinsurance through Athene Re USA IV. The AmerUs Closed Block consists primarily of participating whole life insurance policies. Since all liabilities were covered by the existing reinsurance at close, no reinsurance premiums were ceded. The assets backing the AmerUs Closed Block are managed, on AAIA's behalf, by Goldman Sachs Asset Management, an affiliate of Global Atlantic. During the years ended December 31, 2016 and 2015, we novated certain open blocks of business ceded to Global Atlantic, in accordance with the terms of the coinsurance and assumption agreement. The following summarizes the decreases in amounts on the consolidated balance sheets as a result of the novations:
During the third quarter of 2015, portions of the reinsurance agreements between us and Global Atlantic were amended to change the reinsurance agreements from funds withheld to coinsurance, which resulted in a $930 million decrease to funds withheld liability and a corresponding decrease to assets, primarily consisting of investments. As of December 31, 2016 and 2015, Global Atlantic maintained a series of trust and custody accounts under the terms of these agreements with with assets equal to or greater than a required aggregate statutory balance of $4,122 million and $4,614 million, respectively. Protective Life Insurance Company (Protective) ceded reinsurance transactions—We reinsured substantially all of the existing life and health business of Athene Annuity & Life Assurance Company (AADE) to Protective under a coinsurance agreement in 2011. As of December 31, 2016 and 2015, Protective maintained a trust for our benefit with assets having a fair value of $1,664 million and $1,616 million, respectively. Ceded Reinsurance Transactions—The following summarizes our reinsurance recoverable from the following:
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Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired |
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Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 8. Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired The following represents a rollforward of DAC, DSI and VOBA:
The expected amortization of VOBA for the next five years is as follows:
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed Block | 9. Closed Block We pay guaranteed benefits under all policies included in the Closed Blocks. In the event the Closed Blocks' assets are insufficient to meet the benefits of the Closed Blocks' guaranteed benefits, we would use general assets to meet the contractual benefits of the Closed Blocks' policyholders. We ceded the ILICO Closed Block of policies to Global Atlantic. In addition, Global Atlantic is responsible for managing the dividend scale of the AmerUs Closed Block. We elected the fair value option for the AmerUs Closed Block. The fair value of liabilities of the AmerUs Closed Block was derived at election as the sum of the fair value of the AmerUs Closed Block assets plus our cost of capital in the AmerUs Closed Block. The cost of capital was then determined to be the present value of the projected future after tax earnings on the required capital of the AmerUs Closed Block, discounted at a rate which represents a market participant's required rate of return. At each reporting period, we record the fair value of the AmerUs Closed Block by adjusting the change in liabilities, exclusive of the cost of capital, to equal the change in assets. We do not record additional policyholder dividend obligations, as there are no future GAAP earnings available to the policyholders. The excess of the fair value of the liabilities over the fair value of the assets represents our cost of capital in the AmerUs Closed Block. The maximum amount of future earnings from the assets and liabilities of the AmerUs Closed Block is represented by the reduction in the cost of capital in future years based on the operations of the AmerUs Closed Block and recalculation of the cost of capital each reporting period. Summarized financial information of the AmerUs Closed Block is presented below.
The following represents the contribution from AmerUs Closed Block.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||
Debt | 10. Debt Credit Facility—In 2016, AHL, ALRe and Athene USA entered into a five-year revolving credit agreement (Credit Facility) with Citibank, N.A., as administrative agent. The borrowing capacity under the Credit Facility is $1 billion. In connection with the Credit Facility, AHL and Athene USA guaranteed all of the obligations of AHL, ALRe and Athene USA under this facility, and ALRe guaranteed certain of the obligations of AHL and Athene USA under this facility. The Credit Facility contains various standard covenants with which we must comply, including the following:
As of December 31, 2016, we had no amounts outstanding under the Credit Facility and were in compliance with all covenants under this facility. Interest accrues on outstanding borrowings at the London Interbank Offered Rate (LIBOR) plus a margin or a base rate plus a margin, with the applicable margin varying based on AHL's issuer credit rating. The Credit Facility has a commitment fee that is determined by reference to AHL's issuer credit rating, and ranges from 0.15% to 0.50% of the unused commitment. As of December 31, 2016, the commitment fee was equal to 0.225% of the unused commitment. |
Common Stock |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | 11. Common Stock We have six classes of common stock: Class A, Class B, Class M-1, Class M-2, Class M-3 and Class M-4. The Class M-1, Class M-2, Class M-3 and Class M-4 shares are collectively referred to as Class M shares. Class A shares collectively represent 55% of the total voting power of the Company. Class B shares collectively represent the remaining 45% of the total voting power of the Company, and are beneficially owned by shareholders who are members of the Apollo Group, as defined in our bye-laws. Class B shares can be converted to Class A shares on a one-to-one basis at any time upon notice to us. Class M shares are restricted, non-voting shares issued under equity incentive plans. Our bye-laws place certain restrictions on Class A shares such that (1) a holder of Class A shares, including its affiliates, cannot control greater than 9.9% of the total outstanding vote and if a holder of Class A shares were to control greater than 9.9%, then a holder's voting power is automatically reduced to 9.9% and the other holders of Class A shares would vote the remainder on a prorated basis, (2) the total voting power held by members of our management and employees of the Apollo Group is limited to 3% and (3) Class A shares may be deemed non-voting when owned by a shareholder who owns Class B shares, has an equity interest in certain Apollo entities, or is a member of the Apollo Group. Share Activities 2016
2015
2014
The table below shows the changes in each class of shares issued and outstanding:
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | 12. Stock-based Compensation We adopted share incentive plans in 2009, 2012 and 2014. The 2009 and 2012 share incentive plans were amended and restated in 2014 (2014 Modification), along with the adoption of the 2014 share incentive plan (2014 Plan). In 2016, we modified certain share agreements (2016 Modification) and adopted the 2016 share incentive plan (2016 Plan). With the adoption of the 2016 Plan, the 2009, 2012 and 2014 share incentive plans were frozen and no additional awards may be granted under those plans. The purpose of our share incentive plans is to provide an incentive to achieve long-term company goals and align the interests of our employees, our directors and AAM employees with those of our shareholders. See Note 17 – Related Parties regarding our relationship with AAM. Under the share incentive plans, we may issue nonqualified stock options, incentive stock options, rights to purchase shares, restricted shares, RSUs and other awards which may be settled in, or based upon, our common shares. The aggregate number of shares authorized for issuance under the 2016 Plan is 3,500,000 Class A shares. Shares issued upon settlement of an award are newly issued shares. Through the share incentive plans, we have issued the following three categories of stock-based compensation: long-term incentive plan (LTIP) awards, Class M awards and Class A awards. LTIP awards—During the second quarter of 2016, we issued awards consisting of time and performance-based RSUs and time-based stock options for Class A shares. RSUs represent a contractual right to receive Class A shares and may be settled in shares or cash at our election. Stock options represent a right to purchase Class A shares at a specified exercise price. Vesting – Time-based RSUs and stock options vest in one-third increments on the first through third anniversaries of the vesting inception date. The performance-based RSUs have three-year cliff vesting based on meeting company-specific performance thresholds. Contractual terms – Stock options expire on the tenth anniversary of the date of grant. Stock Options – A rollforward of activity for the year ended December 31, 2016 for stock options is as follows:
The weighted average grant date fair value of stock options granted during the year ended December 31, 2016 was $5.83. As of December 31, 2016, no stock options were exercisable. Valuation Assumptions – We determine the fair value at grant date for stock options using the Black-Scholes option pricing model. The following represents the assumptions used for the fair value at grant date:
The risk-free interest rate is derived from U.S. Constant Maturity Treasury yield at the valuation date, with maturity corresponding to weighted-average expected term. The dividend yield is based on our historical and expected dividend payments, which have been zero to date. Absent an established history in a public market for our shares, we have estimated volatility of our share price based on the published historical volatilities of comparable publicly-traded companies over a period consistent with the expected life of the award being valued. The expected term represents the weighted average period of time that awards granted are expected to be outstanding as determined at the grant date of the award. RSUs – The following represents the activity of nonvested LTIP RSUs for the year ended December 31, 2016:
The fair value of the award is determined based on the fair value of our Class A shares on the grant date. As of December 31, 2016, no LTIP RSUs were vested. Class M awards—We have issued Class M shares and RSUs concurrently with the timing of capital raises, in order to align management incentives with shareholder investments. Class M shares function similar to options in that they are exchangeable into Class A shares upon payment of a conversion price and other conditions being met. The settlement value of the RSUs is based upon the value of the Class A shares at the time of settlement after deducting the conversion price of the RSUs. RSUs may be settled either in cash or Class A shares at our election. A portion of the Class M shares and RSUs is subject to time vesting conditions (Tranche 1), and the remainder is subject to certain performance-based vesting conditions (Tranche 2). Both Tranche 1 and Tranche 2 RSUs required an IPO as an additional vesting condition. Vesting conditions are further described below. The nature and terms of the Class M shares are generally consistent across each class. In October 2015, we issued Class M-4 shares with a different Tranche 2 performance condition than the original Class M-4 award. These shares are referred to as Class M-4 Prime. This vesting condition and any other significant differences between classes are separately identified in the following discussion. Class M share vesting – Tranche 1 shares generally vest in 20% increments on the first through fifth anniversaries of the earlier of the date of grant or vesting inception date. Tranche 1 shares also automatically vest upon the sale of the Company or change in control, prior to the participant's termination or within six months following a qualifying termination. Unvested Tranche 1 shares are forfeited upon a participant's termination. Tranche 2 awards vest if certain performance hurdles are met, described as follows:
Contractual Terms – Unvested Class M-4 shares are forfeited as of 5.25 years following an IPO. Although the Class M shares function similar to options, they are equity shares, and have dividend rights upon satisfaction of certain conditions and no expiration date once vested. Prior to vesting, if Class M shares are eligible for dividends, any dividends paid would accrue on the unvested M shares; however, if the M share is forfeited, the accrued dividend would also be forfeited. Conversion to Class A shares – Vested Class M shares became eligible for conversion to Class A shares at IPO or as a result of the 2016 Modification, subject to the conversion rate for each Class M share. A holder of vested Class M shares may elect to exchange vested shares for an equivalent number of Class A shares upon payment, in cash or shares, of the conversion price less the amount of any dividends paid by the Company on Class A shares subsequent to the granting of Class M shares. Following a conversion to Class A shares, shares can be sold subject to contractual transfer or legal restrictions, such as lockups, blackout periods or affiliate sale volume caps. 2014 Modification – During 2014, we adopted amendments to the terms of the existing Class M-1 and M-2 shares to conform the vesting and repurchase terms of the Class M-1 and M-2 shares to those of the Class M-3 and M-4 shares, described above. The modification impacted 29 individuals. Under the terms of the original plans for the Class M-1 and M-2 shares, we had the right to repurchase vested shares at the lower of purchase cost or fair value if an employee resigned without good reason, either before an IPO or under other conditions as defined in the original plans. As a result of this repurchase option, the expense associated with vested incentive shares would not be recognized on the consolidated statements of income until the date on which such shares would have been converted to Class A shares. Therefore, no expense had been recorded related to the Class M-1 or M-2 shares prior to the 2014 Modification, which revised the terms to generally call for a repurchase price equal to the fair market value of a Class A share less the conversion price of the respective Class M share. Upon modification of a share award, the share awards are revalued and remeasured as if a new share award was issued. The 2014 Modification of the Class M-1 and M-2 shares resulted in non-recurring additional stock based compensation expense of $81 million. 2016 Modification – On September 30, 2016, we modified Class M-1, M-2 and M-3 share agreements to vest all Tranche 2 performance-based shares. The compensation committee approved the modification given that vesting of the shares in the near future was probable. We also amended the conversion option, which previously allowed conversion of vested shares only subsequent to an IPO. Under the modified conversion terms, individuals with certain limited exceptions were able elect up to three conversion options including conversion at a specified date prior to an IPO, on the date of an IPO, or ratably each month for six months after an IPO. The modifications impacted 27 individuals. As a result of the modifications, we recorded an $83 million increase to additional paid-in capital, due to the reclassification of the Tranche 2 shares from liability awards to equity awards. We also recorded a $42 million charge to stock-based compensation expense and additional paid-in capital for the vesting of Tranche 2 shares, primarily related to the acceleration of previously unrecognized compensation expense. Valuation Assumptions for Class M Shares—The fair value of the Class M shares is determined using the Black-Scholes option pricing model, with application of a Monte-Carlo simulation to determine the value of the Tranche 2 Class M shares. Grant date assumptions used for valuation of Class M share awards are as follows:
The fair value of the Class A shares subsequent to our IPO is determined based on the publicly traded closing price on the New York Stock Exchange. During 2016 and 2015, prior to our IPO, the fair value was determined based on a GAAP book value multiple approach. Under this approach we used a comparable peer set of public companies and their share price to book value ratio, less applicable discounts for lack of marketability of AHL in order to determine the AHL Class A share price. The fair value of Class A shares during 2014 was determined using the embedded value method, which is based on the present value of the future expected regulatory distributable income generated by the net assets plus the excess capital. The expected term represents the weighted average period of time that awards granted are expected to be outstanding. The expected term is determined from the modification date, the grant date or the period end date, depending on the accounting treatment for each award. In addition, the Tranche 2 Class M share assumptions include an estimate of the probability of the vesting conditions being met. This assumption is developed by using a Monte-Carlo simulation to generate the possible future value of the Company's equity at a liquidity event to determine the percentage of Tranche 2 Class M shares that vest for each simulated path. The fair value of the Tranche 2 Class M shares is then estimated by averaging the value for all simulated paths and discounting the results at the risk-free interest rate to the valuation date. The basis for determining the remaining assumptions is consistent with those discussed for LTIP awards above. Award activity for Class M Shares—A rollforward of award activity for the year ended December 31, 2016 of the Class M shares is as follows:
The following represents the activity of nonvested Class M shares for the year ended December 31, 2016:
The weighted average grant date fair value of Class M share awards granted during the years ended December 31, 2015 and 2014, was $8.66 and $9.31, respectively. The total fair value of vested Tranche 1 Class M shares was $92 million, $98 million and $49 million during the years ended December 31, 2016, 2015 and 2014, respectively. The total fair value of vested Tranche 2 Class M shares was $122 million, $28 million and $17 million during the years ended December 31, 2016, 2015 and 2014, respectively. No shares were converted or convertible during the years ended December 31, 2015 and 2014. The total intrinsic value of M shares converted during the year ended December 31, 2016 was $117 million. We paid $14 million to repurchase vested Class M shares during the year ended December 31, 2016. Class A awards—The 2014 Plan allowed for the purchase of Class A shares by certain employees and directors of the Company and its affiliates. In 2015, we issued an aggregate of 442,590 fully-paid Class A shares for total proceeds of $12 million. In April 2014, we issued an aggregate of 3,693,730 fully-paid Class A shares for total proceeds of $50 million. For the years ended December 31, 2015 and 2014, we recognized $2 million and $46 million, respectively, of stock-based compensation expense associated with the Class A shares to the extent shares were purchased at a discounted price from fair value on the issuance date. Additionally, we may issue restricted Class A shares under our share incentive plans. In 2016, we issued 238,972 restricted Class A shares at a weighted average grant date fair value of $33.41 per share. In 2015, we issued 160,754 restricted Class A shares at a weighted average grant date fair value of $26.02 per share. The restricted Class A shares issued in 2016 and 2015 had a service commencement date of January 1, 2015. All restricted Class A awards issued vest on a ratable basis over three years from the service commencement date. The restricted Class A shares are classified as equity awards measured using fair value of Class A shares on grant date. Compensation expense—Compensation expense is recognized based on the number of awards expected to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Class M shares with Tranche 1 vesting requirements are accounted for as equity awards and related compensation expense is recognized ratably over the vesting period. The expense for Tranche 1 shares issued to employees is calculated based on grant date fair value multiplied by the number of shares awarded. The expense for Tranche 1 shares issued to non-employees (i.e. AAM participants) is recognized initially at the grant date fair value multiplied by the number of shares. However, the fair value of the awards are revalued each reporting period through completion of counterparty performance to coincide with the fair value of the services provided by the non-employees. The result of the revaluation is recognized in the period in which the revaluation occurs. Employee and non-employee Tranche 2 shares, excluding M-4 Prime, are accounted for as liability awards. Compensation expense for all participants is remeasured each reporting period through settlement at the fair value of the awards, factoring in the probability of achieving the vesting targets described above. Upon vesting of Tranche 2 shares, the liability is reclassified to equity because the vesting condition which resulted in liability classification is no longer present, and is measured at fair value on the date of reclassification. Tranche 2 M-4 Prime shares are accounted for as equity awards with expense recognition having commenced upon completion of our IPO. Compensation expense is calculated based on the grant date fair value of such awards multiplied by the number of shares awarded. Class A shares are accounted for as equity awards and related compensation expense is recognized ratably over the vesting period, if any. The compensation expense for Class A shares is calculated based on the grant date fair value of the Class A common shares, less the purchase price, multiplied by the number of shares awarded. LTIP awards are accounted for as equity awards. Expense for time-based RSUs and options is recognized ratably over the vesting period based on the number of shares expected to vest. Expense for performance-based RSUs is further adjusted by the performance factor most likely to be achieved, as estimated by management at the end of the performance period. Components of stock compensation expense recorded on the consolidated statements of income are as follows:
As of December 31, 2016, the Class M shares had unrecognized compensation cost of $16 million for Tranche 1 and $24 million for Tranche 2. The cost is expected to be recognized over a weighted-average period of 1.6 years and 1.1 years, respectively. Unrecognized compensation cost of $4 million for LTIP awards is expected to be recognized over a weighted-average period of 1.1 years. In 2014, we issued 6,184,948 of our Class B shares to Apollo in satisfaction of settlement amounts earned in 2014 by Apollo under the TASA discussed in Note 17 – Related Parties. In 2014, we also settled the equity swap transaction related to the TASA through the issuance of 5,241,935 Class B shares to Apollo. |
Earnings Per Share |
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Earnings Per Share | 13. Earnings Per Share The following represents our basic and diluted EPS calculations:
We use the two-class method for allocating net income available to AHL shareholders to each class of our common stock. Our Class M shares do not become eligible to participate in dividends until a return of investment (ROI) condition has been met for each class. Once eligible, each class of our common stock has equal dividend rights. Prior to the fourth quarter of 2016, the ROI condition had not been met for any of our Class M shares and as a result, no earnings were attributable to those classes. In conjunction with our IPO, the ROI condition for Class M-1 was met, while Class M-2, Class M-3 and Class M-4 shares remain ineligible for dividends as of December 31, 2016. Therefore, the basic EPS calculations above reflect only those classes of stock eligible to participate in earnings during each respective period. For the years ended December 31, 2015 and 2014, Class A and B had the same basic and dilutive EPS, and as such are presented together for those years. Dilutive shares are calculated using the treasury stock method. For Class A common shares, this method takes into account shares that can be settled into Class A common shares, net of a conversion price. The diluted EPS calculation for Class A shares excluded 116,031,381 shares, RSUs and options outstanding as of December 31, 2016. The excluded shares were comprised of 113,497,613 shares considered antidilutive and 2,533,768 shares for which a performance condition had not been met. The diluted EPS calculation excluded 16,653,624 and 11,674,141 outstanding shares as of December 31, 2015 and 2014, respectively, as the issuance restrictions had not been satisfied as of each year end. |
Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | 14. Accumulated Other Comprehensive Income The following is a detail of AOCI:
Changes in AOCI are presented below:
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Income Taxes Income Taxes |
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Income Taxes | 15. Income Taxes Income tax expense consists of the following:
Income tax expense was calculated based on the following components of income before income taxes:
The expected tax provision computed on pre-tax income at the weighted average tax rate has been calculated as the sum of the pre-tax income in each jurisdiction multiplied by that jurisdiction's applicable statutory tax rate. Statutory tax rates of 0%, 31% and 35% have been used for Bermuda, Germany and the United States, respectively. A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:
Total income taxes were as follows:
Deferred income tax assets and liabilities consisted of the following:
As of December 31, 2016, we have gross deferred tax assets associated with U.S. federal and state net operating losses of $632 million, which will begin to expire in 2022. The valuation allowance consists of the following:
During the third quarter of 2016, we identified a tax plan that, when implemented, will allow us to use a significant portion of the U.S. non-life insurance companies’ net operating losses, which are scheduled to expire beginning in 2022, and other deductible temporary differences. As a result, we released the corresponding deferred tax valuation allowance of $102 million, as it is more likely than not that these attributes will be realized. AHL and its Bermuda subsidiaries file protective U.S. income tax returns and its U.S. subsidiaries file income tax returns with the U.S. federal government and various U.S. state governments. AADE is not subject to U.S. federal and state examinations by tax authorities for years prior to 2007, while Athene Annuity & Life Assurance Company of New York (AANY) and Athene Life Insurance Company (ALIC) are not subject to examinations for years prior to 2011 and 2013, respectively. See discussion of ongoing tax examinations relating to Aviva USA and subsidiaries at Note 18 – Commitments and Contingencies. Under current Bermuda law, we are not required to pay any taxes in Bermuda on either income or capital gains. We have received an undertaking from the Bermuda Minister of Finance that, in the event of any such taxes being imposed, the Company will be exempted from taxation until the year 2035. Withholding taxes have not been provided on undistributed earnings of AHL's U.S. and German subsidiaries as of December 31, 2016 or 2015. Although withholding taxes may apply in the event a dividend is paid by AHL's U.S. or German subsidiaries, we have not accrued withholding taxes as we do not intend to remit these earnings. The cumulative amount subject to withholding tax, if distributed, as well as the determination of the associated tax liability, is not practicable to compute; however, it may be material to the Company's financial position and results of operations. Any dividends remitted to AHL from ALRe are not subject to withholding tax. |
Statutory Requirements |
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Statutory Requirements | 16. Statutory Requirements AHL's insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate including Bermuda, all U.S. states, the District of Columbia and Germany. Certain regulations include restrictions that limit the dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities. The differences between financial statements prepared for insurance regulatory authorities and GAAP financial statements vary by jurisdiction. Bermuda statutory requirements—ALRe is licensed by the Bermuda Monetary Authority (BMA) as a long term insurer and is subject to the Insurance Act 1978, as amended (Bermuda Insurance Act) and regulations promulgated thereunder. Effective January 1, 2016 the BMA implemented the Economic Balance Sheet (EBS) framework into the Bermuda Solvency and Capital Requirement (BSCR) which was granted equivalency to the European Union’s Directive (2009/138/EC) (Solvency II). Under the Bermuda Insurance Act, ALRe is required to maintain minimum statutory capital and surplus to meet the minimum margin of solvency (MMS) and the Enhanced Capital Requirement (ECR). The MMS is equal to the greater of $8 million or 2% of the first $500 million of statutory assets plus 1.5% of statutory assets above $500 million. The ECR is calculated based on a risk-based capital model where risk factor charges are applied to the EBS. As of December 31, 2016, the MMS and ECR were $798 million and $1,932 million, respectively, and ALRe was in excess of these required minimums. Under the EBS framework, statutory financial statements are generally equivalent to GAAP financial statements, with the exception of permitted practices granted by the BMA. ALRe has permission in the statutory financial statements to use amortized cost instead of fair value as the basis for certain investments. Additionally, ALRe uses U.S. statutory reserving principles for the calculation of insurance reserves instead of GAAP, subject to the reserves being proved adequate based on cash flow testing. The impact to the statutory financial statements of these permitted practices is an increase of $1,254 million to capital and surplus as of December 31, 2016 and a decrease of $1,005 million to statutory net income for the year ended December 31, 2016. Under the regime in effect prior to January 1, 2016, the BMA had granted ALRe permission to use amortized cost instead of fair value as the basis for non-equity securities, including investments underlying funds withheld and modco reinsurance agreements. As a result of this permitted practice $162 million of unrealized losses were excluded from ALRe's statutory return as of December 31, 2015. Under the Bermuda Insurance Act, ALRe is prohibited from paying a dividend in an amount exceeding 25% of the prior year's statutory capital and surplus, unless at least two members of ALRe's board of directors and its principal representative in Bermuda sign and submit to the BMA, an affidavit attesting that a dividend in excess of this amount would not cause ALRe to fail to meet its relevant margins. In certain instances, ALRe would also be required to provide prior notice to the BMA in advance of the payment of dividends. In the event that such an affidavit is submitted to the BMA in accordance with the Bermuda Insurance Act, and further subject to ALRe meeting its MMS and ECR, ALRe is permitted to distribute up to the sum of 100% of statutory surplus and an amount less than 15% of statutory capital. Distributions in excess of this amount require the approval of the BMA. As of December 31, 2016 and 2015, the maximum distribution ALRe was permitted to pay AHL without the need for prior approval was $2,479 million and $3,529 million, respectively. Germany statutory requirements—Our primary German insurance entity, Athene Lebensversicherung AG (ALV), is regulated by the Federal Financial Supervisory Authority of Germany as a private insurance undertaking and is subject to the Insurance Supervision Act and regulations promulgated thereunder. Effective January 1, 2016, ALV became subject to Solvency II minimum capital requirements (MCR) and solvency capital requirements (SCR) interpreted by the relevant regulatory authorities. ALV is obliged to meet these requirements in order to be able to fulfill, subject to a certain confidence level of 99.5% for SCR, or 85% for MCR, over a one-year period, all obligations arising from existing business, as well as the new business expected to be written over the following 12 months. Failure to maintain adequate capital levels may result in regulatory action. As of December 31, 2016, statutory capital and surplus as calculated under Solvency II was $570 million, while MCR and SCR were $121 million and $268 million, respectively. Prior to 2016, ALV was subject to regulations under Solvency I, which required ALV to maintain minimum statutory capital as calculated against reserves. As of December 31, 2015, statutory capital and surplus as calculated under SI was $325 million, while required capital under SI was $195 million. Under both the SI and SII regimes, ALV is permitted to use dividend payable balances held for policyholder participation in determining the total capital of the entity. ALV is restricted as to the payment of dividends pursuant to calculations, which are based upon the analysis of current euro swap rates against existing policyholder guarantees. As of December 31, 2016, ALV did not exceed this threshold and no amounts were available for distribution. U.S. statutory requirements—AHL's regulated U.S. subsidiaries and the corresponding insurance regulatory authorities are as follows:
Each entity's statutory statements are presented on the basis of accounting practices determined by the respective regulatory authority. The regulatory authority recognizes only statutory accounting practices prescribed or permitted by the corresponding state for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under insurance law. The maximum dividend these subsidiaries can pay to shareholders, without prior approval of the respective state insurance department, is subject to restrictions relating to statutory surplus or net gain from operations. The maximum dividend payment over a twelve-month period may not, without prior approval, be paid from a source other than earned surplus and may not exceed the greater of (1) the prior year's net gain from operations or (2) 10% of policyholders' surplus. Based on these restrictions, the maximum dividend AADE could pay to Athene USA, and ultimately to AHL's shareholders, absent regulatory approval was $127 million and $125 million as of December 31, 2016 and 2015, respectively. Other requirements limit the amount that could be withdrawn from AADE and the maximum AADE could dividend while staying in compliance with these state regulations, which was $80 million and $65 million as of December 31, 2016 and 2015, respectively. Any dividends from AHL's other U.S. statutory entities in excess of the amounts allowed for AADE would not be able to be remitted to AHL without regulatory approval from the Delaware Department of Insurance. Additionally, we have agreed with the Iowa Insurance Division not to cause AAIA to pay dividends until August 15, 2018; therefore, we currently consider AAIA's dividend capacity as zero. As of December 31, 2016, AHL's U.S. subsidiaries' solvency, liquidity and risk-based capital amounts were significantly in excess of the minimum levels required. In some instances, the states of domicile of our U.S. subsidiaries have adopted prescribed accounting practices that differ from the required accounting outlined in National Association of Insurance Commissioners (NAIC) Statutory Accounting Principles (SAP). These subsidiaries also have certain accounting practices permitted by the states of domicile that differ from those found in NAIC SAP. These prescribed and permitted practices are described as follows: AAIA – Among the products issued by AAIA are indexed universal life insurance and fixed indexed annuities. These products allow a portion of the premium to earn interest based on certain indices, primarily the S&P 500. We purchase call options, futures and variance swaps to hedge the growth in interest credited to the customer as a direct result of increases in the related index. The Iowa Insurance Division allows an insurer to elect (1) to use an amortized cost method to account for certain derivative instruments, such as call options, purchased to hedge the growth in interest credited to the customer on indexed insurance products and (2) to use an indexed annuity reserve calculation methodology under which call options associated with the current index interest crediting term are valued at zero. AAIA has elected to apply this option to its over-the-counter call options and reserve liabilities. As a result, AAIA's statutory surplus decreased by $17 million and increased by $14 million as of December 31, 2016 and 2015, respectively. Athene Re USA IV – AAIA has ceded the AmerUs Closed Block to Athene Re USA IV on a 100% funds withheld basis. A permitted practice in the State of Vermont allows Athene Re USA IV to include as admitted assets the face amount of all issued and outstanding letters of credit used to fund its reinsurance obligations to AAIA in its statutory financial statements. If Athene Re USA IV had not followed this permitted practice, then it would not have exceeded authorized control level risk based capital requirements. As of December 31, 2016 and 2015, the face amount of the letters of credit was $153 million. Statutory reinsurance agreement – We have an agreement with Hannover Life Reassurance Company of America, which is treated as reinsurance under statutory accounting practices and as a financing arrangement under GAAP. The statutory surplus benefit under this agreement is eliminated under GAAP and the associated charges are recorded as risk charges and included in policy and other operating expenses on the consolidated statements of income. The transaction became effective October 1, 2016 and is a coinsurance agreement for statutory purposes covering 80% of the GLWB rider on 2016 and 2017 sales of certain fixed indexed annuity products, with an option to extend reinsurance to 2018 sales. The reserve credit recorded on a statutory basis was $91 million as of December 31, 2016. Statutory capital and surplus and net income (loss)—The following table presents, for each of our insurance subsidiaries, the statutory capital and surplus and the statutory net income (loss), based on the most recently filed statutory financial statements filed with insurance regulators:
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Related Parties |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Parties | 17. Related Parties Athene Asset Management Investment related expenses – Substantially all of our investments, with the exception of the investments of ADKG, are managed by AAM, a subsidiary of AGM. AAM provides direct investment management, asset allocation, mergers and acquisition asset diligence and certain operational support services for our investment portfolio, including investment compliance, tax, legal and risk management support. As of December 31, 2016, AAM directly managed $53,368 million of our investment portfolio assets, of which 84% are rated one or two by the NAIC. For certain assets which require specialized sourcing and underwriting capabilities, AAM has chosen to mandate sub-advisors rather than building out in-house capabilities. For the services related to these investments, AAM earns a fee of 0.40% per year, subject to certain discounts, on all assets managed in accounts owned by or related to us, including sub-advised assets, but excluding assets of ADKG and certain other limited exceptions. Additionally, AAM recharges the sub-advisory fees it incurs with respect to our sub-advised assets to us. AAM has entered into a Master Sub-Advisory Agreement (MSAA) with certain Apollo affiliates to sub-advise AAM with respect to a portion of our assets, with the fees recharged to us, in addition to the gross fee of 0.40% per year paid to AAM as described above. The MSAA covers services rendered by Apollo-affiliated sub-advisors relating to the following investments:
Apollo Asset Management Europe ADKG has an investment advisory agreement with Apollo Asset Management Europe (together with certain of its affiliates, AAME), also a subsidiary of AGM. AAME provides advisory services for all of ADKG's investment portfolio other than operating cash, mortgage loans secured by residential and commercial properties that are not identified and advised by AAME, and assets related to unit-linked policies. Also excluded are assets held in German special investment funds managed or advised by Apollo, AAM and any of the respective affiliates of Apollo, AAM or AAME, to the extent the entity receives a management or advisory fee in connection with the fund. In providing these services, AAME has access to Apollo's European expertise and capabilities. The ADKG investments sub-advised by AAME consist primarily of corporate and sovereign bonds, as compared to the more diverse range of assets managed by AAM or those held in the German special investment funds. As compensation for the investment advisory services rendered, AAME receives a fee of 0.10% per year on the assets it sub-advises. Affiliates of AAME receive an advisory fee of 0.35% per year on certain German special investment funds and our investment in a sub-fund of Apollo Capital Efficient Fund I (ACE fund), as well as a pro rata share of operating expenses up to 0.30% on the ACE fund. As of December 31, 2016, these investment funds totaled $258 million and $84 million, respectively. These fees are included in sub-advisory fees in the table below. The following represents the assets sub-advised by AAME:
The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM, AAME and other Apollo affiliates:
The management and sub-advisory fees are included within net investment income on the consolidated statements of income. The management fees payable as of December 31, 2016 and 2015, were $28 million and $35 million, respectively. The sub-advisory fees payable as of December 31, 2016 and 2015, were $11 million and $24 million, respectively. Both the management and sub-advisory fees payables are included in other liabilities on the consolidated balance sheets. The investment management or advisory agreements with AAM or AAME have no stated term and any party can terminate upon notice. However, our bye-laws provide that we will not exercise our termination rights under the agreements, except that any agreement may only be terminated on October 31, 2018, or any third anniversary thereafter. Any termination on that date without cause requires (1) approval of our board of directors and the holders of our common shares that hold a majority of total voting power (giving effect to the voting allocation provisions set forth in our bye-laws) and (2) six months' prior written notice to AAM or AAME of termination. We may terminate the investment management or advisory agreements for cause, with the approval of our board of directors. We have a management investment committee, which includes members of our senior management and reports to the risk committee of our board of directors. The committee focuses on strategic decisions involving our investment portfolio, such as approving investment limits, new asset classes and our allocation strategy, reviewing large asset transactions, as well as monitoring our credit risk, and the management of our assets and liabilities. Also, because the Apollo Group has a significant voting interest in us, in order to protect against potential conflicts of interest resulting from transactions into which we have entered and will continue to enter into with the Apollo Group, our board of directors has formed a conflicts committee consisting of three of our directors who are not officers or employees of any member of the Apollo Group. The conflicts committee reviews and a majority of the committee members must approve material transactions between us and the Apollo Group, subject to certain exceptions. Service fees – We have entered into shared services agreements with AAM. Under these agreements, we and AAM make available to each other certain personnel and services. Expenses for the services are based on the amount of time spent on the affairs of the other party, in addition to actual expenses incurred and certain cost reimbursements. For the years ended December 31, 2016, 2015 and 2014, net expenses allocated from (to) AAM under these agreements were $6 million, $2 million and $(13) million, respectively. Other AGM Affiliates TASA – Since our founding, Apollo has provided a diverse array of services in order to grow our balance sheet, source, underwrite, and integrate transactions and has provided us access to their infrastructure. Through October 30, 2012, we had a standard 10-year monitoring contract with Apollo Alternative Assets, L.P., Apollo Management Holdings, L.P. and Apollo Global Securities, LLC (collectively, the Apollo TASA Parties) for these services that required cash payment of a quarterly monitoring fee of 0.50% of our capital and surplus, as defined, plus out of pocket expenses, with a termination date of July 15, 2019. As we began to implement public company readiness initiatives in late 2012, both parties voluntarily agreed to an early termination of the monitoring contract. In exchange for early termination of the monitoring contract, Apollo received settlement fees on a quarterly basis from January 1, 2013, to December 31, 2014. Also, to promote alignment between Apollo and Athene’s shareholders and to preserve cash to support Athene’s growth plan, Apollo elected to receive its settlement fees under the agreement in shares of Athene rather than cash. On January 1, 2013, we entered into an equity swap transaction with Apollo in connection with the termination of the quarterly monitoring fee discussed above. Pursuant to this swap, a quarterly settlement amount continued to accrue to Apollo, but the payment of those amounts (whether in stock or cash) would not be made to Apollo until the earlier of the time when Apollo was no longer deemed to control the Company, within the meaning of the derivative instrument delivered pursuant to the TASA and October 31, 2017. In April 2014, as a result of the external capital raise, Apollo was no longer deemed to control the Company (as defined under the swap) and, as a result, the swap was settled in stock for settlement amounts owed through that date. Additionally, in April 2014, we further amended the TASA to exclude from capital and surplus, on which the quarterly monitoring fee was calculated, the capital received in the April 2014 capital raise, and any capital raised in connection with certain potential future acquisitions as defined in the amended TASA. The total costs incurred pursuant to the TASA, including direct expenses, were $228 million for the year ended December 31, 2014 and are recorded in policy and other operating expenses on the consolidated statement of income. The outstanding liability was settled during 2014, and no additional fees accrue under the TASA. Other related party transactions—In 2015, we entered into a loan purchase agreement with AmeriHome Mortgage Company, LLC (AmeriHome), an investee of A-A Mortgage, an equity method investee. The agreement allows us to purchase residential mortgage loans which they have purchased from correspondent sellers and pooled for sale in the secondary market. AmeriHome retains the servicing rights to the sold loans. We have purchased $22 million and $83 million of residential mortgage loans under this agreement during the years ended December 31, 2016 and 2015, respectively. During the third quarter of 2016, we completed a series of transactions with Apollo Commercial Real Estate Finance, Inc. (ARI), a related party managed by an affiliate of Apollo. Pursuant to an agreement between ARI and Apollo Residential Mortgage, Inc. (AMTG), another related party managed by an Apollo affiliate, AMTG merged with and into ARI. In accordance with an Asset Purchase and Sale Agreement between us and ARI, we purchased $1,090 million of primarily non-agency RMBS from ARI subsequent to its merger with AMTG. We also provided ARI with a secured short-term $175 million loan to consummate the merger, which was subsequently repaid with the proceeds of the sale of such RMBS. Finally, subsequent to the merger, we purchased $20 million of ARI shares of common stock pursuant to a stock purchase agreement that required such purchase if ARI’s common stock price fell below a specified price, which was the per share value used in determining the purchase price under the merger agreement between ARI and AMTG, during the 30 trading days following the closing of the merger. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | 18. Commitments and Contingencies Contingent Commitments—We had commitments to make investments, primarily capital contributions to investment funds, of $962 million and $825 million as of December 31, 2016 and 2015, respectively. We expect most of our current commitments will be invested over the next five years; however, these commitments could become due any time upon counterparty request. Funding Agreements—We are a member of the Federal Home Loan Bank (FHLB) of Indianapolis and Des Moines. Through membership, we have issued funding agreements with a carrying value of $691 million and $1,112 million as of December 31, 2016 and 2015, respectively, to the FHLB in exchange for cash advances. We are required to provide collateral in excess of the funding agreements, considering any discounts to the securities posted and prepayment penalties. We have a funding agreement backed notes (FABN) program, which allows Athene Global Funding, a special purpose, non-affiliated statutory-trust to offer up to $5 billion of its senior secured medium-term notes. Athene Global Funding uses the net proceeds from each sale to purchase one or more funding agreements from us. Funding agreements issued under this program have a carrying value of $246 million and $250 million as of December 31, 2016 and 2015, respectively. In the first quarter of 2017, we issued an additional $650 million in funding agreements under this program. Pledged Assets and Funds in Trust (Restricted Assets)—The total restricted assets included on the consolidated balance sheets are as follows:
The restricted assets are primarily a result of the FHLB funding agreements described above. Additionally, we have established reinsurance trusts of assets equal to statutory reserves, plus an additional amount of assets, as a result of coinsurance agreements with Transamerica Life Insurance Corporation. Litigation, Claims and Assessments—On June 12, 2015, a putative class action complaint was filed in the United States District Court, Northern District of California against us. The complaint, which is similar to complaints recently filed against other large insurance companies, primarily alleges that captive reinsurance and other transactions had the effect of misrepresenting the financial condition of AAIA. The complaint purports to be brought on behalf of a class of purchasers of annuity products issued by AAIA between 2007 and the present. There are also various allegations related to the purchase of Aviva USA and concerning entry into a modco transaction with ALRe in October 2013. The suit asserts claims of violation of the Racketeer Influenced and Corrupt Organizations Act and seeks compensatory damages, trebled, in an amount to be determined, costs and attorneys' fees. On March 25, 2016, the matter was transferred to the United States District Court, Southern District of Iowa. On May 25, 2016, the court granted plaintiff’s motion to file an amended complaint dropping plaintiff Silva and defendant Aviva plc. We moved to dismiss that complaint on June 30, 2016, and the motion was fully briefed as of September 8, 2016. On November 4, 2016 and November 14, 2016, the court stayed consideration of the motion to dismiss pending a ruling from the United States Court of Appeals for the Eighth Circuit in a similar case which will likely affect the disposition of our motion. See Ludwick v. Harbinger Grp., Inc., 161 F. Supp. 3d 769 (W.D. Mo. 2016), appeal docketed, No. 16-1561 (8th Cir.). We believe we have meritorious defenses to the claims set forth in the amended complaint and intend to vigorously defend the litigation and seek dismissal of the amended complaint. In light of the inherent uncertainties involved in this matter, reasonably possible losses, if any, cannot be estimated at this time. On July 27, 2015, a putative class action complaint was filed in the United States District Court, District of Massachusetts, against us. An amended complaint was filed on December 18, 2015. The complaint alleges a putative class action on behalf of all persons who are the beneficial owners of assets which were used to purchase structured settlement annuities that Aviva London Assignment Corporation, Aviva Life Insurance Company and CGU International Insurance, plc (Aviva Entities) or their predecessors, as applicable, delivered to purchasers on or after April 1, 2003. The complaint alleges that the Aviva Entities sold structured settlement annuities to the public on the basis that such products were backed by a capital maintenance agreement by CGU International Insurance, plc, which was alleged as a source of great financial strength. The complaint further alleges that the Aviva Entities used this capital maintenance agreement to enhance the sales volume and raise the price of the annuities. The complaint claims that, as a result of Aviva USA’s sale to AHL, the capital maintenance agreement terminated. According to the complaint, no notice was provided to the owners of the structured settlement annuities and the termination of the capital maintenance agreement constituted a breach of contract and the plaintiff further asserts other causes of action. AHL is a named defendant due to its purchase of Aviva USA, and AAIA and Athene London Assignment are named as successors to Aviva Life Insurance Company and Aviva London Assignment Corporation, respectively. The defendants have answered and are engaged in the discovery process. We believe that we have meritorious defenses to the claims set forth in the complaint and intend to vigorously defend the litigation. In light of the inherent uncertainties involved in this matter, reasonably possible losses, if any, cannot be estimated at this time. The Internal Revenue Service (IRS) has completed its examinations of the 2006 through 2010 Aviva USA tax years. Aviva USA agreed to all adjustments that were proposed with respect to those tax years with two exceptions: (1) AAIA’s treatment of call options used to hedge fixed indexed annuity (FIA) liabilities for the tax years 2008–2010 and (2) the disallowance of offsetting tax deductions taken by AAIA and taxable income reported by the non-life subgroup with respect to unpaid independent marketing organization commissions. The first adjustment to which Aviva USA did not agree would disallow deductions of $191 million, $154 million and $76 million for 2008, 2009 and 2010, respectively. The second adjustment to which Aviva USA did not agree would increase non-life net operating losses and decrease AAIA net operating losses by $16 million in each of 2009 and 2010. Taxes, penalties and interest with respect to these two issues for the years under audit are potentially subject to indemnification by Aviva plc. Athene USA has been unable to negotiate a favorable settlement of this issue with the IRS, and has reserved its right to contest the adjustment in federal court. If the IRS position is upheld in federal court, Athene USA expects that it would owe tax of $120 million, plus interest, for tax years ending on or before October 2, 2013, which are subject to indemnification by Aviva plc as described above. The treatment of FIA hedges is a recurring issue as to the timing of the related deductions and could affect the current income tax incurred in periods after October 2, 2013, which are not subject to indemnification by Aviva plc. Given that the disallowance of a deduction in one period results in an increased deduction in a future period, AHL does not expect that there will be any material impact to its financial condition resulting from this issue. In 2000 and 2001, two insurance companies which were subsequently merged into AAIA purchased from American General Life Insurance Company (American General) broad based variable corporate-owned life insurance (COLI) policies that, as of December 31, 2016, had an asset value of $327 million, and is included in other assets on the consolidated balance sheets. In January 2012, the COLI policy administrator delivered to AAIA a supplement to the existing COLI policies and advised that American General and ZC Resource Investment Trust (ZC Trust) had unilaterally implemented changes set forth in the supplement that if effective, would: (1) potentially negatively impact the crediting rate for the policies and (2) change the exit and surrender protocols set forth in the policies. In March 2013, AAIA filed suit against American General, ZC Trust, and ZC Resource LLC in Chancery Court in Delaware, seeking, among other relief, a declaration that the changes set forth in the supplement were ineffectual and in breach of the parties’ agreement. The parties filed cross motions for judgment as a matter of law, and the court granted defendants’ motion and dismissed without prejudice on ripeness grounds. The issue that negatively impacts the crediting rate for one of the COLI policies has been triggered and we will pursue further adjudication. If the supplement is ultimately deemed to be effective, the purported changes to the policies could impair AAIA’s ability to access the value of guarantees associated with the policies. The value of the guarantees included within the asset value reflected above are $159 million as of December 31, 2016. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 19. Segment Information We operate our core business strategies out of one reportable segment, Retirement Services. In addition to Retirement Services, we report certain other operations in Corporate and Other. Retirement Services—Retirement Services is comprised of our United States and Bermuda operations which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to our policyholders. Retirement Services also has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one-year guarantee fixed deferred annuities, immediate annuities and institutional products from our reinsurance partners. In addition, our FABN program is included in our Retirement Services segment. Corporate and Other—Corporate and Other includes certain other operations related to our corporate activities and our German operations, which is primarily comprised of participating long-duration savings products. In addition to our German operations, included in Corporate and Other are corporate allocated expenses, merger and acquisition costs, debt costs, certain integration and restructuring costs, certain stock-based compensation and intersegment eliminations. In Corporate and Other we also hold capital in excess of the level of capital we hold in Retirement Services to support our operating strategy. Financial Measures—Segment operating income, net of tax, and net investment income are internal measures used by the chief operating decision maker to evaluate and assess the results of our segments. Operating revenue is a component of operating income, net of tax, and excludes market volatility and adjustments for other non-operating activity. Our operating revenue equals our total revenue, adjusted to eliminate the impact of the following non-operating adjustments:
The table below reconciles segment operating revenues to total revenues presented on the consolidated statements of income:
Operating income, net of tax, is an internal measure used to evaluate our financial performance excluding market volatility and expenses related to integration, restructuring, stock compensation and other expenses. Our operating income, net of tax, equals net income available to AHL's shareholders adjusted to eliminate the impact of the following non-operating adjustments:
The table below reconciles segment operating income, net of tax, to net income available to Athene Holding Ltd. shareholders presented on the consolidated statements of income:
Net investment income used to evaluate the performance of our segments is an internal measure that does not correspond to GAAP net investment income. Adjustments are made to GAAP net investment income to arrive at a net investment income measure that reflects the profitability of our core deferred annuities business. Accordingly, we adjust net investment income to include earnings from our consolidated VIEs and earnings on certain alternative investments (primarily CLOs) classified in investment related gains (losses) on the consolidated statements of income. Additionally, impacts of reinsurance embedded derivatives on net investment income are removed. The table below reconciles segment net investment income to net investment income presented on the consolidated statements of income:
Operating income, net of tax, excludes the tax impact of the taxable non-operating adjustments presented above. The tax impact of non-operating income adjustments is 35% of the non-operating adjustments subject to income tax. The table below reconciles segment provision for income taxes – operating to income tax expense presented on the consolidated statements of income:
The following represents total assets by segment:
We market annuity products, primarily fixed rate and fixed indexed annuities. Deposits, which are generally not included in revenues on the consolidated statements of income, and premiums collected are as follows:
Deposits and premiums collected by the geographical location are as follows:
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Quarterly Results of Operations (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) | 20. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below and have been adjusted for the impacts of revision discussed in Note 1 – Business, Basis of Presentation and Significant Accounting Policies:
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events (Unaudited) In connection with the reissuance of the consolidated financial statements, we have evaluated subsequent events through June 13, 2017, the date the consolidated financial statements were available to be reissued. Events Subsequent to the Original Issuance of the Consolidated Financial Statements (Unaudited) Employee Stock Purchase Plan – On June 7, 2017, the shareholders voted to approve our 2017 Employee Stock Purchase Plan (ESPP) and the reservation of 3,800,000 shares for issuance under the ESPP. The purpose of the ESPP is to allow us to provide our eligible employees and employees of our participating affiliates with the opportunity to purchase our Class A common shares at a discount from the then current market price through payroll deductions. Pursuant to the plan, employees are permitted to purchase shares at a price equal to 85% of fair value for such shares as determined by reference to the closing price of our Class A common shares on the New York Stock Exchange on the last day of such offering period. As of the date the consolidated financial statements were available to be reissued, no shares have yet been offered under the ESPP. Hudson Litigation – On May 11, 2017, the putative class action complaint filed by Don Hudson, on behalf of himself and others similarly situated, against us was dismissed in a written decision by the S.D. IA Court. Although plaintiff has a right to appeal the dismissal, in a similar case on April 13, 2017, the Eight Circuit affirmed the district court’s dismissal of the claims in Ludwick v. Harbinger Grp., Inc. We believe we have meritorious defenses to the claims set forth in the amended complaint and intend to vigorously defend any appeal and the litigation. AGER Offering – On April 14, 2017, in connection with a private offering, AGER Bermuda Holding Ltd. (AGER), a Bermuda domiciled holding company and the holding company of ADKG, entered into subscription agreements with AHL, certain affiliates of AGM and a number of other third-party investors pursuant to which AGER secured commitments from such parties to purchase new common shares in AGER (AGER Offering). AHL's capital commitment includes the valuation of the AGER Group (comprised of our European operations which includes ADKG) at approximately €90 million, which also approximates our invested capital in the AGER Group. Additionally, AHL has committed to purchase an additional €285 million of common shares (which may be reduced to €260 million if certain conditions are met), as well as an additional profits interest in securities which, upon meeting certain vesting triggers, will be convertible into additional common shares. Upon closing of the AGER Offering, the aggregate voting power held by AHL in AGER will be reduced to 10%. The completion of the AGER Offering is conditioned upon obtaining certain regulatory approvals, and other customary terms and conditions. We expect that AGER's initial material capital call will result in the issuance by AGER of new common shares to affiliates of Apollo and other third-party investors, such that our interest in the AGER Group will be reduced so the AGER Group will be held as an investment rather than a consolidated subsidiary of AHL. The valuation of the AGER Group was fixed at €90 million as of April 14, 2017, and is unaffected by any profit or loss or other increase or decrease in value of the AGER Group during the period between April 14, 2017 and the date on which the AGER Group is deconsolidated, which we expect to be nine months or longer. As a result, to the extent that our invested capital and/or the fair value of our AGER Group increases or decreases during such time period, we may incur a gain or loss upon deconsolidation. We also expect AAME to continue to act as investment adviser in regards to the investment portfolio of the AGER Group, though the services provided and fees charged may differ from the existing arrangement. Investment Management and Advisory Agreements – In the first quarter 2017, we announced an agreement to amend certain fee arrangements we have in place with AAM and Apollo relating to investment management fees and sub-advisory fees that are paid by us to AAM and Apollo. Following shareholder approval of an amendment to our bye-laws, on June 8, 2017, we and AAM entered into a Fifth Amended and Restated Fee agreement effective January 1, 2017, which provides for, among other things, a fee of 0.30% per year (reduced from 0.40% per year) on all assets that Apollo manages in accounts owned by us in the U.S. and Bermuda or in accounts supporting reinsurance ceded to our U.S. and Bermuda subsidiaries by third-party insurers (North American Accounts) in excess of $65,846 million (the level of assets in the North American Accounts as of December 31, 2016). The fee to be paid by us to Apollo on the first $65,846 million of assets in the North American Accounts remains 0.40% per year, subject to certain discounts and exceptions. In addition, AAM entered into certain amendments of the MSAA that are in place with Apollo, whereby, with limited exceptions, Apollo will earn 0.40% per year on all assets in the North American Accounts explicitly sub-advised by Apollo up to $10,000 million, 0.35% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $10,000 million up to $12,441 million (the level of fee-paying sub-advised assets in the North American Accounts at December 31, 2016), 0.40% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $12,441 million up to $16,000 million and 0.35% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $16,000 million. |
Schedule I Summary of Investments - Other Than Investments in Related Parties (Notes) |
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Summary of Investments, Other than Investments in Related Parties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule I Summary of Investments - Other Than Investments in Related Parties |
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Schedule II Condensed Financial Information of Registrant |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II Condensed Financial Information of Registrant |
See accompanying notes to the condensed financial information of registrant – parent company only
See accompanying notes to the condensed financial information of registrant – parent company only.
See accompanying notes to the condensed financial information of registrant – parent company only 1. Basis of Presentation The accompanying condensed financial statements of Athene Holding Ltd. (AHL) should be read in conjunction with the consolidated financial statements and the notes thereto (Consolidated Financial Statements) of AHL and its subsidiaries. For purposes of these condensed financial statements, AHL’s wholly owned and majority owned subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in subsidiaries are recorded on the condensed balance sheets. The income from subsidiaries is reported on a net basis as equity earnings of subsidiaries on the condensed statements of income. As discussed in Note 1 – Business, Basis of Presentation and Significant Accounting Policies to the Consolidated Financial Statements, these condensed financial statements have been revised. 2. Intercompany Transactions On December 15, 2014, Athene USA Corporation (Athene USA) entered into an unsecured revolving note with AHL. In 2014, Athene USA borrowed $100 million under the unsecured revolving note, with the balance due in June 2015, or earlier at AHL’s request. The proceeds were used by Athene USA to fund the restructuring of a wholly owned investment fund and carries an interest rate of 0.35% per annum. Interest was payable on a quarterly basis. In June 2015, the unsecured revolving note was amended to extend the due date to June 1, 2020, or earlier at AHL’s request. During 2015, $80 million was repaid by Athene USA. The unsecured revolving note was fully repaid by Athene USA in 2016. On January 14, 2015, AHL entered into a facility agreement with DLD whereby AHL agreed to make available to DLD a loan facility without a fixed term in the maximum principal amount of EUR 5 million. Interest accrues under the facility at a rate of 6-month Euribor. DLD withdrew EUR 5 million prior to the October 1, 2015 acquisition of DLD by AHL, and full payment was made on October 9, 2015. DLD's withdrawal of the facility was not eliminated upon consolidation since it was prior to the acquisition, but the repayment of the loan was an intercompany transaction that eliminated upon consolidation. On September 22, 2015, AHL entered into a loan agreement with ADKG, whereby AHL agreed to lend ADKG EUR 51 million to be used for the DLD acquisition. Interest accrued at a fixed rate of 1.5%, which was due and payable on the maturity date of the loan. The loan and interest accrued were due and fully repaid on October 9, 2015. 3. Debt and Guarantees In the first quarter of 2016, AHL (along with subsidiaries ALRe and Athene USA) entered into a five-year revolving credit agreement (Credit Facility) with Citibank, N.A., as administrative agent. The amount available under the Credit Facility is $1 billion. In connection with the Credit Facility, AHL and Athene USA guaranteed all of the obligations of AHL, ALRe, and Athene USA under this facility, and ALRe guaranteed certain of the obligations of AHL and Athene USA under this facility. See Note 10 – Debt to our Consolidated Financial Statements for further information about the Credit Facility. 4. Related Parties AHL pays investment management fees to Athene Asset Management (AAM), a related party, in relation to its portfolio of assets managed by AAM and assets held in certain subsidiary portfolios. In addition, AHL also pays service fees pursuant to a shared service agreement between AAM and AHL for various internal expenses AAM allocates to AHL. See Note 17 – Related Parties of the Consolidated Financial Statements for further information. 5. Dividends, Return of Capital and Capital Contributions AHL received cash dividends and returns of capital from the following subsidiaries:
AHL contributed cash and non-cash capital to the following subsidiaries:
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Schedule III Supplementary Insurance Information |
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Supplementary Insurance Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule III Schedule III Supplementary Insurance Information |
As discussed in Note 1 – Business, Basis of Presentation and Significant Accounting Policies to the consolidated financial statements, the above financial statement schedule has been revised. |
Schedule IV Reinsurance |
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Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule IV Reinsurance |
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Schedule V Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule V Valuation and Qualifying Accounts |
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Business, Basis of Presentation, and Significant Accounting Policies (Policies) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Consolidation | Our consolidated financial statements include our wholly-owned subsidiaries, investees we control and any VIEs where we are the primary beneficiary. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financing decisions, other than investments for which we have elected the fair value option, are accounted for under the equity method. Intercompany balances and transactions have been eliminated. For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than the Company. We include the aggregate of the income or loss and corresponding equity that is not owned by the Company in noncontrolling interests in the consolidated financial statements. We report investments in related parties and assets and liabilities of consolidated VIEs separately, as further described in the accounting policies that follow. |
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Basis of Presentation | We have prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual experience could materially differ from these estimates and assumptions. Our principal estimates impact:
Additional details around these principal estimates and assumptions are discussed in the significant accounting policies that follow and the related footnote disclosures. |
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Investments | Fixed Maturity and Equity Securities – Fixed maturity securities includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and redeemable preferred stock. Equity securities includes common stock, mutual funds and non-redeemable preferred stock. We classify fixed maturity and equity securities as available-for-sale (AFS) or trading at the time of purchase and subsequently carry them at fair value. Fair value hierarchy and valuation methodologies are discussed in Note 5 – Fair Value. Classification is dependent on a variety of factors including our expected holding period, election of the fair value option and asset and liability matching. AFS Securities – Unrealized gains and losses on AFS securities, net of tax and adjustments to DAC, DSI, VOBA and future policy benefits, if applicable, are generally reflected in accumulated other comprehensive income (loss) (AOCI) on the consolidated balance sheets. Unrealized gains or losses relating to identified risks within AFS securities in fair value hedging relationships are reflected in investment related gains (losses) on the consolidated statements of income. Trading Securities – We elected the fair value option for certain fixed maturity securities. These fixed maturity securities are classified as trading, with changes to fair value included in investment related gains (losses) on the consolidated statements of income. Although the securities are classified as trading, the trading activity related to these investments is primarily focused on asset and liability matching activities and is not intended to be an income strategy based on active trading. As such, the activity related to these investments on the consolidated statements of cash flows is classified as investing activities. Trading securities include mutual funds supporting unit-linked investment contracts. We generally record security transactions on a trade date basis, with any unsettled trades recorded in other assets or other liabilities on the consolidated balance sheets. For those security transactions not recorded on a trade date basis, such as private placement and investment fund purchases, we record on a settlement date basis. Purchased Credit Impaired (PCI) Investments – We purchase certain structured securities, primarily RMBS and re-performing mortgage loans, having deterioration in credit quality since their issuance which meet the definition of PCI investments. We determined, based on our expectations as to the timing and amount of cash flows expected to be received, that it was probable at acquisition that we would not collect all contractually required payments, including both principal and interest, while also considering the effects of any prepayments for these PCI investments. Based on these assumptions, the difference between the undiscounted expected future cash flows of the PCI investments and the recorded investment represents the initial accretable yield, which is accreted into investment income, net of related expenses, over their remaining lives on a level-yield basis. The difference between the contractually required payments on the PCI investment and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. Over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, the accretable yield and the non-accretable difference can change. Quarterly, we evaluate the undiscounted expected future cash flows associated with PCI investments based on updates to key assumptions. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI investments will change the accretable yield prospectively. Declines in undiscounted expected future cash flows due to further credit deterioration, as well as changes in the expected timing of the cash flows, can result in the recognition of an other-than-temporary impairment (OTTI) charge for PCI securities or a valuation allowance for PCI loans. Significant increases in undiscounted expected future cash flows are recognized prospectively as an adjustment to the accretable yield. Mortgage Loans – Mortgage loans are primarily stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on its contractual interest rate. We record amortization of premiums and discounts using the effective yield method and contractual cash flows on the underlying loan. We accrue interest on loans until it is probable we will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums and discounts and prepayment fees are reported in net investment income on the consolidated statements of income. We have also elected the fair value option on a portion of our mortgage loans. Investment Funds – We invest in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (investment funds). For investment funds in which we have determined we are not the primary beneficiary, and therefore not required to consolidate, we typically record these investments using the equity method of accounting, where the cost is recorded as an investment in the fund. Adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (NAV) in the investment fund financial statements, which can be on a lag of up to three months when investee information is not received in a timely manner. We record our proportionate share of investment fund income within net investment income on the consolidated statements of income. Contributions paid or distributions received by us are recorded directly to the investment fund balance as an increase to carrying value or as a return of capital, thus reducing our carrying value. Policy Loans – Policy loans are funds provided to policyholders in return for a claim on the policy's account value. The funds provided are limited to a specified percentage of the account balance. The majority of policy loans do not have a stated maturity and the balances and accrued interest are repaid with proceeds from the policy account balance. Policy loans are reported at the unpaid principal balance. Interest income is recorded as earned using the contract interest rate and is reported in net investment income on the consolidated statements of income. Funds Withheld at Interest – Funds withheld at interest represents a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements in which we act as reinsurer. Assets equal to statutory reserves are withheld and legally owned by the ceding company. We periodically settle interest accruing to those assets at rates defined by the terms of the agreement. The underlying agreements contain embedded derivatives as discussed below. Real Estate – Real estate investments are stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset, which is typically 40 years, and is included in net investment income on the consolidated statements of income. We periodically review our real estate investments for impairment and test for recoverability when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. We recognize an impairment to fair value if the carrying amount of a property exceeds the expected undiscounted cash flows. Real estate investments we commit to a plan to sell within one year and actively market are classified as held for sale. Real estate held for sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. Short-term Investments – Short-term investments consists of financial instruments with maturities of greater than three months but less than twelve months when purchased. Short-term debt securities are accounted for as trading or AFS consistent with our policies for those investments. Short-term loans are carried at amortized cost. Fair values are determined consistent with policies described in Note 5 – Fair Value for the respective investment type. Investment Income – We recognize investment income as it accrues or is legally due, net of investment management and custody fees. Investment income on fixed maturity securities includes coupon interest, as well as the amortization of any premiums and the accretion of any discount. Investment income on equity securities represents dividend income and preferred coupons. Realized gains and losses on sales of investments are included on the consolidated statements of income in investment related gains (losses). Realized gains and losses on investments sold are determined based on a first-in first-out method. Other-Than-Temporary Impairment – We identify fixed maturity and equity securities that could potentially have impairments that are other-than-temporary by monitoring market events for changes in market interest rates, credit issues, changes in business climate, management changes, litigation, government actions and other similar factors. Indicators of impairment may include changes in the issuers' credit ratings and outlook, frequency of late payments, pricing levels, key financial ratios, financial statements, revenue forecasts and cash flow projections. We review all securities on a case-by-case basis to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in fair value; (3) the issuer's financial position and access to capital; and (4) for fixed maturity securities, our ability and intent to sell a security or whether it is more likely than not that we will be required to sell the security before the recovery of its cost or amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value. To the extent we determine that a security is other-than-temporarily impaired, an impairment loss is recognized. The recognition of impairment losses on fixed maturity securities is dependent upon the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its cost or amortized cost less any recorded credit loss, we recognize an OTTI in other-than-temporary impairment losses on the consolidated statements of income for the difference between amortized cost and fair value. If neither of these two conditions exists, then the recognition of the OTTI is bifurcated and we recognize the credit loss portion in income and the non-credit loss portion in AOCI on the consolidated balance sheets. We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the estimated cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The techniques and assumptions for establishing the estimated cash flows vary depending on the type of security. The structured security's cash flow estimates are based on security-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayments and structural support, including subordination and guarantees. The non-structured security's cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using security-specific facts and circumstances including timing, security interests and loss severity. In periods after an OTTI is recognized on a fixed maturity security, we report the impaired security as if it had been purchased on the date it was impaired and continue to estimate the present value of the estimated cash flows of the security. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. For equity method investments, we consider financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. Declines in value of equity method investments not expected to be recovered are reflected through impairment in other-than-temporary impairment losses on the consolidated statements of income. We impair a mortgage loan when it is probable we will not collect all amounts due under the agreement. We establish a general valuation allowance on mortgage loans based on loss history. Additionally, we establish a valuation allowance on individual loans based on expected losses from future dispositions or settlement, including foreclosures. We calculate the allowance based on how much the carrying value exceeds one of these values:
We first apply any interest accrued or received on the net carrying amount of the impaired loan to the principal of the loan, and once the principal is repaid, we include amounts received in net investment income. We limit accrued interest income on impaired loans to 90 days of interest. Once accrued interest on the impaired loan is received, we recognize interest income on a cash basis. Loans deemed uncollectible or in foreclosure are charged off against the valuation allowances, and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in investment related gains (losses) on the consolidated statements of income. The cost of other invested assets is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These impairments are included within other-than-temporary impairment losses, and the cost basis of the investment securities is reduced accordingly. We do not change the revised cost basis for subsequent recoveries in value |
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Derivative Instruments | —We invest in derivatives to hedge the risks experienced in our ongoing operations, such as equity risk, interest rate risk, cash flow risks or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. We elect to present any derivatives subject to master netting provisions as a gross asset or liability and gross of collateral. Disclosures regarding balance sheet presentation of derivatives subject to master netting agreements are discussed in Note 3 – Derivative Instruments. We may designate derivatives as cash flow or fair value hedges. Hedge Documentation and Hedge Effectiveness – To qualify for hedge accounting, at the inception of the hedging relationship, we formally document our risk management objective and strategy for undertaking the hedging transaction, as well as our designation of the hedge as a cash flow or fair value hedge. In this documentation, we identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method which will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. For a cash flow hedge, changes in the fair value of the hedging derivative measured as effective are reported within AOCI, and the related gains or losses on the derivative are reclassified into the consolidated statements of income when the cash flows of the hedged item affect earnings. Any ineffectiveness is reported in investment related gains (losses) on the consolidated statements of income each reporting period as effectiveness is assessed. For a fair value hedge, changes in the fair value of the hedging derivative, including any amounts measured as ineffective, and changes in the fair value of the hedged item related to the designated risk being hedged, are reported on the consolidated statements of income according to the nature of the risk being hedged. We discontinue hedge accounting prospectively when: (1) we determine the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative expires, is sold, terminated, or exercised; or (3) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued, the derivative continues to be carried on the consolidated balance sheets at fair value, with changes in fair value recognized in investment related gains (losses) on the consolidated statements of income. For a derivative not designated as a hedge, changes in the derivative's fair value and any income received or paid on derivatives at the settlement date are included in investment related gains (losses) on the consolidated statements of income. Embedded Derivatives – We issue and reinsure products, primarily fixed indexed annuity products, or purchase investments that contain embedded derivatives. If we determine the embedded derivative has economic characteristics not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract and accounted for separately. Embedded derivatives are carried on the consolidated balance sheets at fair value in the same line item as the host contract. Changes in the fair value of embedded derivatives associated with fixed indexed annuities are reflected in interest sensitive contract benefits on the consolidated statements of income. Embedded derivatives that are not clearly and closely related to the host contract within a financial asset are required to be bifurcated and recorded at fair value unless the fair value option is elected on the host contract. Under the fair value option, bifurcation of the embedded derivative is not necessary as all related gains and losses on the host contract and derivative will be reflected within investment related gains (losses) on the consolidated statements of income. Fixed indexed annuity and indexed universal life insurance contracts allow the policyholder to elect a fixed interest rate return or an equity market component where interest credited is based on the performance of common stock market indices. The equity market option is an embedded derivative, similar to a call option. The benefit reserve is equal to the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of embedded derivatives is computed as the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth, which include assumptions for expected index credits on the next policy anniversary date, future equity option costs, volatility, interest rates and policyholder behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as were used to project policy contract values. For contracts we issue to policyholders, the embedded derivative cash flows are discounted using a rate that reflects our credit rating. For funds withheld reinsurance contracts, we do not use a credit spread as the funds are backed by the cedant's collateral. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy's life. The host contract accretion rate is updated each quarter so that the present value of actual and expected guaranteed cash flows is equal to the initial host value. Additionally, reinsurance agreements written on a modified coinsurance (modco) or funds withheld coinsurance (funds withheld) basis contain embedded derivatives. The right to receive or obligation to pay the total return on the assets supporting the funds withheld at interest or funds withheld liability, respectively, represent a total return swap with a floating rate leg. The fair value of embedded derivatives on modco and funds withheld agreements is computed as the unrealized gain (loss) on the underlying assets and is included in the funds withheld at interest and funds withheld liability lines on the consolidated balance sheets for assumed and ceded agreements, respectively. The change in the fair value of the embedded derivatives is recorded in investment related gains (losses) on the consolidated statements of income. Assumed and ceded earnings from funds withheld at interest, funds withheld liability and changes in the fair value of embedded derivatives are reported in operating activities on the consolidated statements of cash flows. Contributions to and withdrawals from funds withheld at interest and funds withheld liability are reported in operating activities on the consolidated statements of cash flows |
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Variable Interest Entities | —An entity that does not have sufficient equity to finance its activities without additional financial support, or in which the equity investors, as a group, do not have the characteristics of a controlling financial interest is a VIE. The determination as to whether an entity qualifies as a VIE depends on the facts and circumstances surrounding each entity and may require significant judgment. Our investment funds generally qualify as VIEs and are evaluated for consolidation under the VIE model. We are required to consolidate a VIE if we are the primary beneficiary, defined as the variable interest holder with both the power to direct the activities that most significantly impact the VIE's economic performance and rights to receive benefits or obligations to absorb losses that could be potentially significant to the VIE. We determine whether we are the primary beneficiary of an entity based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and our relative exposure to the related risks of the VIE. Since affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo), a related party, are the decision makers in certain of the investment funds, we and a member of our related party group may together have the characteristics of the primary beneficiary of an investment fund. In this situation, we have concluded we are not under common control, as defined by GAAP, with the related party, and therefore consolidate in the circumstances when substantially all of the activities of the VIE are conducted on our behalf. We reassess the VIE and primary beneficiary determinations on an ongoing basis. If we are not the primary beneficiary, but are able to exert significant influence over the VIE’s operations, we record the VIE as an equity method investment. If we are not able to exercise significant influence, generally on investment funds in which we own a less than a 3% interest, we elect the fair value option. |
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Business Combinations | —Business combination transactions are accounted for under the acquisition method. Accordingly, the purchase consideration is allocated to assets and liabilities based on their estimated fair value at the acquisition date. The consideration for the net assets acquired is determined prior to the assessment of the fair value of the net assets at the acquisition date. We have identified several intangible assets acquired in business combinations including VOBA, acquired distribution channels and state licenses. We value VOBA as described below under Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired. We value distribution channels using the multi-period excess earnings method under the income approach and the state licenses using the market approach. Distribution channels and state licenses are included in other assets on the consolidated balance sheets. |
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Goodwill | Goodwill represents the excess of purchase consideration over the acquisition date fair value of net assets acquired and is included in the other assets on the consolidated balance sheets. Goodwill is not amortized but reviewed for impairment annually or more frequently if events occur or circumstances change indicating potential impairment has occurred. If the acquisition date fair value of the net assets acquired exceeds the purchase consideration in a business combination, a bargain purchase gain is recorded on the consolidated statements of income |
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Reinsurance | —We assume and cede insurance and investment contracts under coinsurance, funds withheld and modco. We follow reinsurance accounting for transactions that provide indemnification against loss or liability relating to insurance risk (risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk consisting of underwriting, investment, timing risk and any other significant risks. Cessions under reinsurance do not discharge our obligations as the primary insurer, unless the requirements of assumption reinsurance have been met. We generally have the right of offset on reinsurance contracts, but have elected to present reinsurance settlement amounts due to and from the Company on a gross basis. For investment contracts, assets and liabilities assumed or ceded under coinsurance, funds withheld, or modco are presented gross on the consolidated balance sheets. The change in assumed and ceded reserves, deposits and withdrawals are presented net in the interest sensitive contract benefits line on the consolidated statements of income. For insurance contracts, assets and liabilities assumed or ceded are presented gross on the consolidated balance sheets. The change in assumed and ceded reserves and benefits are presented net in the future policy and other policy benefits line on the consolidated statements of income. Assumed or ceded premiums are included in the premiums line of the consolidated statements of income. Accounting for reinsurance requires the use of assumptions upon agreement inception, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. We attempt to minimize our counterparty credit risk through the structuring of the terms of our reinsurance agreements, including the use of trusts, and we monitor credit ratings of counterparties for signs of declining credit quality. When a ceding company does not report information on a timely basis, we record accruals based on the best available information at the time, which includes the reinsurance agreement terms and historical experience. We periodically compare actual and anticipated experience to the assumptions used to establish reinsurance assets and liabilities. Refer to Note 7 – Reinsurance for more information. Funds Withheld – For business assumed or ceded on a funds withheld basis, a funds withheld segregated portfolio comprised of invested assets and other assets is maintained by the ceding entity, which are sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. The fair value of the funds withheld account is recorded as a funds withheld asset or liability and accrues interest payable at rates defined by the agreement terms and is settled periodically. Modco – Modco is similar to funds withheld, except that the policy benefit liabilities are also not transferred to the assuming entity. For business assumed or ceded on a modco basis, the fair value of the funds withheld is accounted for under the same method described for funds withheld reinsurance above. Assumed policy benefit liabilities are included in interest sensitive contract benefits and ceded policy benefit liabilities are included in reinsurance recoverable on the consolidated balance sheets |
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Cash and Cash Equivalents | —Cash and cash equivalents include deposits and short-term highly liquid investments with a maturity of less than 90 days from the date of acquisition. Amounts included are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value |
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Restricted Cash | —Restricted cash primarily consists of cash and cash equivalents held in funds in trust as part of certain coinsurance agreements to secure statutory reserves and liabilities of the coinsured parties. Restricted cash is reported separately on the consolidated balance sheets. Changes in the restricted cash balance are reported in investing activities on the consolidated statements of cash flows |
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Investments in Related Parties | —Investments in related parties and associated earnings, other comprehensive income and cash flows are separately identified on the consolidated financial statements and accounted for consistently with the policies described above for each category of investment |
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Deferred Acquisition Costs | Costs related to direct and successful efforts of acquiring new business are deferred to the extent they are recoverable from future premiums or gross profits. These costs consist of commissions and policy issuance costs, as well as sales inducements credited to policyholder account balances, and are included in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. We adjust the DAC and DSI balances due to the effects of net unrealized investment gains and losses on AFS securities. We perform periodic tests to determine if the deferred costs remain recoverable, including at issue. If financial performance significantly deteriorates to the point where a premium deficiency exists, then we record a cumulative charge to the current period. Each reporting period, we update estimated gross profits with actual gross profits as part of the amortization process for the interest sensitive policies. We also periodically revise the key assumptions used in the calculation of the amortization of DAC and DSI which results in revisions to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. |
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Deferred Sales Inducements | Deferred costs related to interest sensitive life and investment-type policies, with significant revenue streams from sources other than investment of the policyholder funds, are amortized over the lives of the policies, in relation to the present value of gross profits including investment spread margins, surrender charge income, policy administration, changes in the guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) reserves and realized gains and losses on investments. Current period gross profits for fixed indexed annuities also include the impact of amounts for the change in fair value of the derivatives and the change in fair value of the embedded derivatives. Estimates of the future gross profits are based on assumptions using accepted actuarial methods. Deferred costs related to contracts with only investment related sources of revenues are amortized using the effective interest method. The effective interest method amortizes the deferred costs by discounting the future liability cash flows at a break-even rate. The break-even rate is solved such that the present value of future liability cash flows is equal to the net liability at the inception of the contract |
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Value of Business Acquired | We establish VOBA for insurance contract blocks assumed with the acquisition of insurance entities. We record the fair value of the liabilities assumed in two components: reserves and VOBA. Reserves are established using our best estimate assumptions, and are further described in future policy benefits and interest sensitive contract liabilities. VOBA is the difference between the fair value and the reserves. VOBA can be either positive or negative. For interest sensitive life and investment-type contracts, any negative VOBA is recorded in interest sensitive contract liabilities on the consolidated balance sheets. For long duration and insurance contracts, any negative VOBA is recorded as part of future policy benefits on the consolidated balance sheets. Positive VOBA is recorded in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. VOBA associated with funding agreements and immediate annuity contracts classified as investment contracts is amortized using the interest method. VOBA associated with immediate annuity contracts classified as long duration contracts is amortized at a constant rate in relation to net policyholder liabilities. For accumulation products, which include interest sensitive life and investment-type contracts with significant non-investment sources of revenue, VOBA is amortized in relation to the present value of estimated gross profits using methods consistent with those used to amortize DAC. Negative VOBA is amortized at a constant rate in relation to applicable net policyholder liabilities. We adjust the VOBA balance due to the OCI effects of unrealized investment gains or losses on AFS securities. We perform periodic tests to determine if the VOBA remains recoverable. If financial performance significantly deteriorates to the point where a premium deficiency exists, then we record a cumulative charge to the current period. Each reporting period, we update estimated gross profits with actual gross profits as part of the amortization process for the interest sensitive policies. We also periodically revise the key assumptions used in the calculation of the amortization of the VOBA which results in updates to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made |
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Interest Sensitive Contract Liabilities | —Interest sensitive life and investment-type contracts include fixed indexed and traditional fixed annuities in the accumulation phase, funding agreements, universal life insurance, fixed indexed universal life insurance, unit-linked contracts and immediate annuities without significant mortality risk. We carry liabilities for fixed annuities, universal life insurance, unit-linked contracts and funding agreements at the account balances without reduction for potential surrender or withdrawal charges, except for a block of universal life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, Global Atlantic) which we carry at fair value. Liabilities for immediate annuities without significant mortality risk are calculated as a present value of future liability cash flows at contractual interest rates. Changes in the interest sensitive contract liabilities, excluding deposits and withdrawals, are recorded in interest sensitive contract benefits or product charges on the consolidated statements of income. Interest sensitive contract liabilities are not reduced for amounts ceded under reinsurance agreements which are reported as reinsurance recoverable on the consolidated balance sheets. See Note 7 – Reinsurance for more information on reinsurance. |
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Future Policy Benefits | —We issue contracts classified as long-duration, which includes endowments, term and whole life, accident and health, disability, and deferred and immediate annuit ies with life contingencies. Liabilities for non-participating long-duration contracts are established using accepted actuarial valuation methods which require the use of assumptions related to expenses, investment yields, mortality, morbidity and persistency, with a provision for adverse deviation, at the date of issue or acquisition. As of December 31, 2016, the reserve investment yield assumptions for non-participating contracts range from 3.31% to 5.44% and are specific to our expected earned rate on the asset portfolio supporting the reserves. Liabilities for participating long-duration contracts are established using accepted actuarial valuation methods, which require the use of guaranteed interest and mortality assumptions. As of December 31, 2016, the reserve guaranteed interest assumptions for participating contracts range from 1.25% to 4.00% and are based on interest rates guaranteed to our policyholders. We base other key assumptions, such as mortality and morbidity, on industry standard data adjusted to align with actual company experience, if necessary. For long-duration contracts, the assumptions are locked in at contract inception and only modified if we deem the reserves to be inadequate. We periodically review actual and anticipated experience compared to the assumptions used to establish policy benefits. If the net GAAP liability (gross reserves less DAC, DSI and VOBA) is less than the gross premium liability, impairment is deemed to have occurred, and the DAC, DSI and VOBA asset balances are reduced until the net GAAP liability is equal to the gross premium liability. If the DAC, DSI and VOBA asset balances are completely written off and the net GAAP liability is still less than the gross premium liability, then an additional liability is posted to arrive at the gross premium liability. We issue and reinsure deferred annuity contracts which contain GLWB and GMDB riders. We establish future policy benefits for GLWB and GMDB by estimating the expected value of withdrawal and death benefits in excess of the projected account balance. We recognize the excess proportionally over the accumulation period based on total expected assessments. The methods we use to estimate the liabilities have assumptions about policyholder behavior, mortality and market conditions affecting the account balance growth. Future policy benefits includes liabilities for no-lapse guarantees on universal life insurance and fixed indexed universal life insurance. We establish future policy benefits for no-lapse guarantees by estimating the expected value of death benefits paid after policyholder account balances have been exhausted. We recognize these benefits proportionally over the life of the contracts based on total expected assessments. The methods we use to estimate the liabilities have assumptions about policyholder behavior, mortality and market conditions affecting the account balance growth. Changes in future policy benefits are recorded in future policy and other policy benefits on the consolidated statements of income. Future policy benefits are not reduced for amounts ceded under reinsurance agreements which are reported as reinsurance recoverable on the consolidated balance sheets |
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Closed Block Business | —Two closed blocks of policies were established in connection with the reorganization of two predecessor subsidiaries from mutual companies to stock companies, collectively referred to as the Closed Blocks, and individually referred to as the AmerUs Life Insurance Company (AmerUs) closed block (AmerUs Closed Block) and the Indianapolis Life Insurance Company (ILICO) closed block (ILICO Closed Block). Insurance policies which had a dividend scale in effect as of each closed block establishment date were included in the respective closed block. The Closed Blocks were designed to give reasonable assurance to owners of insurance policies included therein that, after the reorganization, assets would be available to maintain the dividend scales and interest credits in effect prior to the reorganization, if the experience underlying such scales and crediting continued. The assets, including related revenue, allocated to the Closed Blocks will accrue solely to the benefit of the policyholders included in the Closed Blocks until they no longer exist. A policyholder dividend obligation is required to be established for earnings in the Closed Blocks that are not available to the shareholders |
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Other Policy Claims and Benefits | —Other policy claims and benefits include amounts payable relating to in course of settlements (ICOS) and incurred but not reported (IBNR) liabilities associated with interest sensitive contract liabilities and future policy benefits. For traditional life and universal life policies, ICOS claim liabilities are established when we are notified of the death of the policyholder but the claim has not been paid as of the reporting date. For immediate annuities and supplemental contracts, ICOS claim liabilities are established to accrue suspended benefit payments between the date of notification of death and the date of verification of death. We determine IBNR claim liabilities using studies of past experience. The time that elapses from the death or claim date to when the claim is reported to us can vary significantly by product type, but generally ranges between one to six months for life business. We estimate IBNR claims on an undiscounted basis, using actuarial estimates of historical claims expense, adjusted for current trends and conditions. These estimates are continually reviewed and the ultimate liability may vary significantly from the amount recognized. |
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Dividends Payable to Policyholders | —Participating policies entitle the policyholders to receive dividends based on actual interest, mortality, morbidity and expense experience for the year. Dividends are distributed to the policyholders through annual or terminal dividends which the Board of Directors of the applicable insurance subsidiary approves. As of December 31, 2016 and 2015, 88% and 78%, respectively, of traditional life policies inclusive of ceded policies were paying dividends, and the related liability is recorded in dividends payable to policyholders on the consolidated balance sheets. Premiums related to policies paying dividends represented 45%, 22% and 11% of total life insurance direct premiums and deposits for the years ended December 31, 2016, 2015 and 2014, respectively. Traditional life policies inclusive of ceded policies represented 81% and 78% of the Company's individual life policies in force as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, all of the non-separate account unit-linked policies were paying dividends, and the related liability is recorded in dividends payable to policyholders on the consolidated balance sheets. There were no material deposits related to non-separate account unit-linked policies paying dividends for the years ended December 31, 2016 and 2015. Non-separate account unit-linked policies represented an insignificant percentage of our interest sensitive contracts in force as of December 31, 2016 and 2015. Policyholder dividend liabilities are recorded in dividends payable to policyholders on the consolidated balance sheets and policyholder dividends are recorded in dividends to policyholders on the consolidated statements of income. For participating policies issued by our German subsidiaries, dividends payable to policyholders includes an adjustment to recognize timing differences between GAAP and local statutory earnings that reverse and enter into future calculations of dividends to policyholders. Except for changes due to unrealized gains or losses on AFS securities, the change in this adjustment is recorded in dividends to policyholders on the consolidated statements of income. Changes in this adjustment due to unrealized gains or losses on AFS securities are recorded in OCI. |
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Stock-Based Compensation | —We have stock-based compensation plans under which restricted, incentive compensation share awards may be granted to our employees and directors and employees of Athene Asset Management, L.P. (AAM) as described in Note 12 – Stock-based Compensation. We recognize the fair value of stock-based compensation over a participant's requisite service period through a charge to compensation expense and a corresponding entry to equity or a liability based on vesting criteria and other pertinent terms of the awards. Stock-based awards are accounted for as equity awards in instances where the awards' vesting are linked to a market, performance or service condition. Equity awards to employees are generally expensed based on the grant date fair value. For equity awards issued to non-employees, the fair value is remeasured through completion of counterparty performance. Employee and non-employee stock-based awards are accounted for as liabilities in instances where the awards' vesting criteria are linked to a factor other than a market, performance or service condition. Liability awards are remeasured each reporting period until settlement. In the event that awards are reclassified from liability to equity due to modification or other changes in circumstances, they are remeasured at fair value through the date of reclassification |
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Earnings Per Share | —We compute basic earnings per share (EPS) by dividing unrounded net income available to Athene Holding Ltd. shareholders by the weighted average number of common shares eligible for earnings and outstanding for the period. As a result, it may not be possible to recalculate EPS as presented in our consolidated financial statements. Diluted earnings per share includes the effect of all potentially dilutive common shares, options and restricted stock units (RSUs) outstanding during the period |
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Foreign Currency | —The accounts of foreign-based subsidiaries are measured using the functional currency of the subsidiary. Revenue and expenses of these businesses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. The resulting translation adjustments are included in equity as a component of AOCI. Gains or losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in net income |
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Recognition of Revenues and Related Expenses | —Revenues for annuity and universal life-type products, including surrender and market value adjustments, costs of insurance, policy administration, GMDB, GLWB and no-lapse guarantee charges, are earned when assessed against policyholder account balances during the period. Interest sensitive contract benefits related to annuity products include interest credited to policyholder account balances. In addition, the change in fair value of embedded derivatives within fixed indexed annuity contracts is included in interest sensitive contract benefits on the consolidated statements of income. For certain assumed reinsurance transactions involving in force blocks of business, the ceding company may pay a premium equal to the initial required reserve (future policy benefit). In such transactions, we net the expense associated with the establishment of the reserve against the premiums from the transaction in interest sensitive contract benefits on the consolidated statements of income. Premiums for traditional life insurance products, including products with fixed and guaranteed premiums and benefits, are recognized as revenues when due from policyholders. All insurance related revenue is reported net of reinsurance ceded |
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Income Taxes | —We compute income taxes using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities using estimated tax rates expected to be in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities attributable to changes in enacted income tax rates are recorded in the period of enactment. Such temporary differences are primarily due to the tax basis of reserves, DAC, unrealized investment gains/losses, reinsurance related differences, embedded derivatives and net operating loss carryforwards. Changes in deferred income tax assets and liabilities associated with components of OCI are recorded directly to OCI. We evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that it is more likely than not that some portion of the tax benefit will not be realized. We adjust the valuation allowance if, based on our evaluation, there is a change in the amount of deferred income tax assets that are deemed more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of our position. We recognize any income tax interest and penalties in income tax expense |
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Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Adopted Accounting Pronouncements Fair Value Measurement – Net Asset Value (ASU 2015-07) This update has a disclosure-only impact for entities that measure investments using NAV per share under the practical expedient in the fair value measurement guidance. We adopted this standard effective January 1, 2016, and have removed investments that are measured at NAV as a practical expedient from the fair value hierarchy in all periods presented in the notes to the consolidated financial statements. Cloud Computing Arrangements (ASU 2015-05) This update clarifies whether a cloud computing arrangement is an intangible asset or a service contract. We adopted this standard effective January 1, 2016, and the adoption of this update did not have a material effect on our consolidated financial statements. Stock-Based Compensation (ASU 2014-12) This update requires a performance target in a share-based payment arrangement that affects vesting and that could be achieved after the requisite service period to be treated as a performance condition. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. We adopted this standard effective January 1, 2016, and the adoption of this update did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Gains and Losses from the Derecognition of Nonfinancial Assets (ASU 2017-05) The amendments in this update clarify the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. We will be required to adopt this standard on a retrospective or modified retrospective basis effective January 1, 2018. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Intangibles – Simplifying the Test for Goodwill Impairment (ASU 2017-04) The amendments in this update simplify the subsequent measurement of goodwill by eliminating the comparison of the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill to determine the goodwill impairment loss. With the adoption of this guidance, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We will be required to adopt this standard prospectively effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Business Combinations – Clarifying the Definition of a Business (ASU 2017-01) The amendments in this update clarify the definition of a business with the objective of assisting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. We will be required to adopt this standard effective January 1, 2018. We are currently evaluating the impact of this guidance on our consolidated financial statements. Statement of Cash Flows – Restricted Cash (ASU 2016-18) This update requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. We will be required to adopt this standard retrospectively for each period presented effective January 1, 2018. Early adoption is permitted. The adoption of this update will require us to change the presentation on the consolidated statements of cash flows for restricted cash or restricted cash equivalents; however, we do not expect the adoption of this update to have a material effect on our consolidated financial statements. Consolidation – Interest Held through Related Parties under Common Control (ASU 2016-17) This update amends the consolidation guidance to change how indirect interests in VIEs are evaluated by a reporting entity when determining whether or not it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Currently, if a single decision maker and its related parties are under common control, the single decision maker is required to consider indirect interests held through related parties to be the equivalent of direct interests in their entirety. The amendments change the evaluation of indirect interests to be considered on a proportionate basis. We will be required to adopt this standard retrospectively for each period presented effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Income Taxes – Intra-Entity Transfers (ASU 2016-16) This update requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets, other than inventory. Currently, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. We will be required to adopt this standard on a modified retrospective basis effective January 1, 2018. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Statement of Cash Flows (ASU 2016-15) This update provides specific guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update also clarifies the application of the predominance principle when cash receipts and cash payments have aspects of more than one class of cash flows. We will be required to adopt this standard effective January 1, 2018. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Financial Instruments – Credit Losses (ASU 2016-13) This update is designed to reduce complexity by limiting the number of credit impairment models used for different assets. The model will result in accelerated credit loss recognition on assets held at amortized cost, which includes our commercial and residential mortgage investments. The identification of credit-deteriorated securities will include all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, any changes in the expected cash flows of credit-deteriorated securities will be recognized immediately in the income statement. Available-for-sale fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. We will be required to adopt this standard effective January 1, 2020. Early adoption is permitted effective January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. Revenue Recognition (ASU 2016-20, ASU 2016-12, ASU 2016-11, ASU 2016-10, ASU 2016-08, ASU 2015-14 and ASU 2014-09) ASU 2014-09 indicates an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 provided for a one-year deferral of the effective date, which will require us to adopt this standard effective January 1, 2018. ASU 2016-08 amends the principal-versus-agent implementation guidance and illustrations in ASU 2014-09. ASU 2016-10 clarifies the identification of performance obligations as well as licensing implementation guidance. ASU 2016-11 brings existing Securities and Exchange Commission (SEC) guidance into conformity with revenue recognition accounting guidance of ASU 2014-09 discussed above. ASU 2016-12 provides clarification on assessing collectability, presentation of sales tax, non-cash consideration and transition. ASU 2016-20 addresses necessary technical corrections and improvements to clarify codification amended by ASU 2014-09 within Topic 606. The revenue recognition updates replace all general and most industry-specific revenue recognition guidance, excluding insurance contracts, leases, financial instruments and guarantees, which have been scoped out of the update. Since the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards, only a portion of our revenues are impacted by this guidance. Our evaluation process includes, but is not limited to, identifying contracts within the scope of the guidance, reviewing and documenting our accounting for these contracts, and identifying and determining the accounting for any related contract costs. Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) This update simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, forfeitures and classification on the statement of cash flows. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Equity Method and Joint Ventures (ASU 2016-07) This update eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Derivatives and Hedging – Contingent Put and Call Options (ASU 2016-06) This update is intended to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to debt hosts. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Derivatives and Hedging – Effects of Derivative Contract Novation (ASU 2016-05) This update is intended to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require a de-designation of that hedging relationship provided all other hedge accounting criteria continue to be met. We will be required to adopt this standard effective January 1, 2017. We do not expect the adoption of this update to have a material effect on our consolidated financial statements. Leases (ASU 2016-02) This update is intended to increase transparency and comparability for lease transactions. A lessee is required to recognize an asset and a liability for all lease arrangements longer than 12 months. Lessor accounting is largely unchanged. We will be required to adopt this standard on a modified retrospective basis effective January 1, 2019. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Financial Instruments – Recognition and Measurement (ASU 2016-01) This update retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. We currently recognize changes in fair value related to AFS equity securities in AOCI on the consolidated balance sheets. We will be required to adopt this standard with a cumulative-effect adjustment to beginning retained earnings effective January 1, 2018. Refer to Note 2 – Investments for further information on the unrealized gains and losses of our AFS equity securities. |
Business, Basis of Presentation, and Significant Accounting Policies - Revisions (Tables) |
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Schedule of Error Corrections and Prior Period Adjustments | Revisions—As part of our continuing initiative to improve controls in our business processes and confirm the accuracy of our data relating to blocks of businesses acquired from Aviva USA as well as deposits since the acquisition, we identified an error in May 2017 relating to the impact of certain inputs used to calculate certain actuarial balances, which had the result of misstating our net investment earned rate used in the amortization calculation of deferred acquisition costs and the change in future policy benefits. We have revised our consolidated financial statements, notes, and schedules for the years ended December 31, 2016, 2015 and 2014, as a result of correcting this error and other immaterial errors. We assessed the materiality of these errors and concluded these errors are not material to the consolidated financial statements as a whole. However, we elected to revise the consolidated financial statements to increase their accuracy, as well as provide consistency and comparability with balances and activities to be reported in future periods. The following is a summary of the only impacts of the revisions on the consolidated balance sheets:
The following is a summary of the only impacts of the revisions on the consolidated statements of income:
For the years ended December 31, 2016, 2015 and 2014, the only impact to the consolidated statements of comprehensive income were the revisions to net income for the corresponding year, as presented above. We revised the consolidated statements of equity for the years ended December 31, 2016, 2015 and 2014, for the changes to net income, as presented above. In addition, the balance of retained earnings was revised from $1,343 million to $1,340 million as of December 31, 2013, as a result of revisions to periods prior to 2014. The following is a summary of the only impacts of the revisions on the consolidated statements of cash flows:
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Investments (Tables) |
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Investments Schedule [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | The following table represents the cost or amortized cost, gross unrealized gains and losses, fair value and OTTI in AOCI of our AFS investments by asset type. Our AFS investment portfolio includes direct investments in affiliates of Apollo where Apollo can exercise significant influence over the affiliates. These investments are presented as investments in related parties on the consolidated balance sheets, and are separately disclosed below.
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Available-for-sale Securities by Contractual Maturity | The amortized cost and fair value of fixed maturity AFS securities, including related party, are shown by contractual maturity below:
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Fair Values and Unrealized Losses on Available-for-sale Securities | The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by class of security and length of time the fair value has remained below cost or amortized cost:
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Other-than-temporary Impairments on Available-for-sale Securities | The following table represents a rollforward of the cumulative amounts recognized on the consolidated statements of income for OTTI related to pre-tax credit loss impairments on AFS fixed maturity securities, for which a portion of the securities' total OTTI was recognized in AOCI:
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Net Investment Income | Net investment income by asset type consists of the following:
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Investment Related Gains (Losses) | Investment related gains (losses) by asset type consist of the following:
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Purchased Credit Impaired (PCI) Investments | The following table summarizes our PCI investments:
During the respective year, we acquired PCI investments with the following amounts at the time of purchase:
The following tables summarize the activity for the accretable yield on PCI investments:
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Mortgage Loans, Net | The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows:
Mortgage loans, net of allowances, consist of the following:
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Aging of the Commercial Mortgage Loan Portfolio | The following provides the aging of our commercial mortgage loan portfolio, including those under development, net of valuation allowances:
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Credit Quality Indicators of the Commercial Mortgage Portfolio | The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances:
The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances:
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Derivative Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount and Fair Value of Derivative Instruments | The following table presents the notional amount and fair value of derivative instruments:
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Gains (Losses) on Derivatives and Related Hedged Items | The following table represents the gains and losses on derivatives and the related hedged items in fair value hedge relationships, recorded in interest sensitive contract benefits on the consolidated statements of income:
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Gains (Losses) Related to Derivatives Not Designated as Hedges | The following is a summary of the gains (losses) related to derivatives not designated as hedges:
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Estimated Fair Value of Net Derivative and Other Financial Assets | The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows:
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Estimated Fair Value of Net Derivative and Other Financial Liabilities | The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows:
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Exposure to Credit Related Events | The following is a summary of our exposure to credit-related events:
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Variable Interest Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of VIE | The following summarizes our investment funds, including related party investment funds and investment funds owned by consolidated VIEs:
The following represents the gains (losses) recorded for instruments within the consolidated VIEs for which we have elected the fair value option:
The following table presents the carrying value by ownership percentage of investment funds where we elected the fair value option, including related party investment funds and investment funds owned by consolidated VIEs:
The following summarizes the carrying value and maximum loss exposure of these non-consolidated VIEs:
The following represents the hierarchy for assets and liabilities of our consolidated VIEs measured at fair value on a recurring basis:
The following table presents the carrying value by ownership percentage of equity method investment funds, including related party investment funds and investment funds owned by consolidated VIEs:
The following is a reconciliation for all VIE Level 3 assets and liabilities measured at fair value on a recurring basis:
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Equity Method Investments | The following is the aggregated summarized financial information of equity method investees, including those where we elected the fair value option, and may be presented on a lag due to the availability of financial information from the investee:
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Fair Value (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis:
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Summary of Fair Value Option | The following represents the gains (losses) recorded for instruments for which we have elected the fair value option:
The following summarizes information for fair value option mortgage loans:
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Reconciliation of Level 3 Assets Measured on a Recurring Basis | The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis:
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Reconciliation of Level 3 Liabilities Measured on a Recurring Basis | The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis:
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Gross Components of Purchases, Sales, Issuances and Settlements, net | The following represents the gross components of purchases, issuances, sales and settlements, net, shown above:
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Summary of the Unobservable Inputs for the Embedded Derivative of Fixed Indexed Annuities | The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities:
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Summary of Financial Instruments Not Carried at Fair Value on the Balance Sheet | The following represents our financial instruments not carried at fair value on the consolidated balance sheets:
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Business Combinations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the assets acquired and liabilities assumed in the DLD acquisition:
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Pro Forma Revenue and Net Income | The following unaudited pro forma revenue and net income assumes a January 1, 2014 acquisition date for DLD:
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Reinsurance (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Reinsurance | The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the consolidated statements of income:
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Schedule of Novated Balances | The following summarizes the decreases in amounts on the consolidated balance sheets as a result of the novations:
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Ceded Reinsurance Transactions | The following summarizes our reinsurance recoverable from the following:
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Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Acquisition Costs | The following represents a rollforward of DAC, DSI and VOBA:
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Deferred Sales Inducements | The following represents a rollforward of DAC, DSI and VOBA:
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Expected Amortization of Value of Business Acquired | The expected amortization of VOBA for the next five years is as follows:
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Closed Block (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Closed Block Assets and Liabilities | Summarized financial information of the AmerUs Closed Block is presented below.
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Closed Block Operations, Net Results | The following represents the contribution from AmerUs Closed Block.
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Common Stock (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Each Class of Shares Issued and Outstanding | The table below shows the changes in each class of shares issued and outstanding:
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Stock-based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Award Activity | A rollforward of activity for the year ended December 31, 2016 for stock options is as follows:
A rollforward of award activity for the year ended December 31, 2016 of the Class M shares is as follows:
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Fair Value Assumptions | The following represents the assumptions used for the fair value at grant date:
Grant date assumptions used for valuation of Class M share awards are as follows:
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Nonvested Share Activity | The following represents the activity of nonvested LTIP RSUs for the year ended December 31, 2016:
The following represents the activity of nonvested Class M shares for the year ended December 31, 2016:
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Components of Stock Compensation Expense | Components of stock compensation expense recorded on the consolidated statements of income are as follows:
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | The following represents our basic and diluted EPS calculations:
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Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Changes in AOCI are presented below:
The following is a detail of AOCI:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense | Income tax expense consists of the following:
Total income taxes were as follows:
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Components of Income Before Income Taxes | Income tax expense was calculated based on the following components of income before income taxes:
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Provision for Income Taxes and Expected Tax Provision Reconciliation | A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:
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Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following:
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Valuation Allowance | The valuation allowance consists of the following:
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Statutory Requirements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Capital and Surplus and Net Income (Loss) | The following table presents, for each of our insurance subsidiaries, the statutory capital and surplus and the statutory net income (loss), based on the most recently filed statutory financial statements filed with insurance regulators:
AHL's regulated U.S. subsidiaries and the corresponding insurance regulatory authorities are as follows:
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Related Parties (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM, AAME and other Apollo affiliates:
The following represents the assets sub-advised by AAME:
The MSAA covers services rendered by Apollo-affiliated sub-advisors relating to the following investments:
|
Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Pledged Assets and Funds in Trust | The total restricted assets included on the consolidated balance sheets are as follows:
|
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Segment Operating Revenues to Consolidation | The table below reconciles segment operating revenues to total revenues presented on the consolidated statements of income:
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Reconciliation of Segment Operating Income to Consolidation | The table below reconciles segment operating income, net of tax, to net income available to Athene Holding Ltd. shareholders presented on the consolidated statements of income:
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Reconciliation of Segment Net Investment Income to Consolidation | The table below reconciles segment net investment income to net investment income presented on the consolidated statements of income:
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Reconciliation of Segment Income Tax Provision to Consolidation | The table below reconciles segment provision for income taxes – operating to income tax expense presented on the consolidated statements of income:
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Total Assets by Segment | The following represents total assets by segment:
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Premiums and Deposit Revenues | Deposits, which are generally not included in revenues on the consolidated statements of income, and premiums collected are as follows:
Deposits and premiums collected by the geographical location are as follows:
|
Quarterly Results of Operations (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below and have been adjusted for the impacts of revision discussed in Note 1 – Business, Basis of Presentation and Significant Accounting Policies:
|
Business, Basis of Presentation, and Significant Accounting Policies - Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
reorganization
closed_block_policy
component
|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Number of days past due before nonaccrual status | 90 days | ||
Useful life of real estate investment | 40 years | ||
Period interest is accrued for loans past due | 90 days | ||
Ownership percentage for election of fair value option, less than | 3.00% | ||
Number of components for acquired insurance blocks | component | 2 | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Number of closed blocks of policies | closed_block_policy | 2 | ||
Number of predecessor entities reorganized | reorganization | 2 | ||
Participating policies as a percent of life premiums | 45.00% | 22.00% | 11.00% |
Nonparticipating Contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Reserve interest assumptions for future policy benefits | 3.31% | ||
Nonparticipating Contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Reserve interest assumptions for future policy benefits | 5.44% | ||
Participating Contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Reserve interest assumptions for future policy benefits | 1.25% | ||
Participating Contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Reserve interest assumptions for future policy benefits | 4.00% | ||
Life and other deposits | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Traditional life policies paying dividends, inclusive of ceded policies | 88.00% | 78.00% | |
Percent of policies participating in dividends | 81.00% | 78.00% | |
Life and other deposits | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Period for reporting liability | 1 month | ||
Life and other deposits | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Period for reporting liability | 6 months |
Business, Basis of Presentation, and Significant Accounting Policies - Balance Sheet Revision (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|---|
Assets | ||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | $ 2,940 | $ 2,652 | $ 2,222 | $ 2,133 |
Total assets | 86,699 | 80,846 | 82,737 | |
Liabilities | ||||
Total liabilities | 79,840 | 75,493 | ||
Equity [Abstract] | ||||
Retained earnings | 3,070 | 2,308 | 1,340 | |
Total Athene Holding Ltd. shareholders' equity | 6,858 | 5,352 | ||
Noncontrolling interest | 1 | 1 | ||
Total equity | 6,859 | 5,353 | $ 4,578 | 2,852 |
Total liabilities and equity | 86,699 | 80,846 | ||
Scenario, Previously Reported | ||||
Assets | ||||
Total assets | 86,720 | 80,854 | ||
Liabilities | ||||
Total liabilities | 79,814 | 75,491 | ||
Equity [Abstract] | ||||
Retained earnings | 3,117 | 2,318 | $ 1,343 | |
Total Athene Holding Ltd. shareholders' equity | 6,905 | 5,362 | ||
Noncontrolling interest | 1 | 1 | ||
Total equity | 6,906 | 5,363 | ||
Total liabilities and equity | 86,720 | 80,854 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Assets | ||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 2,940 | 2,652 | ||
Deferred tax assets | 372 | 609 | ||
Liabilities | ||||
Interest sensitive contract liabilities | 61,532 | 57,289 | ||
Future policy benefits | 14,592 | 14,547 | ||
Other liabilities | 688 | 778 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Scenario, Previously Reported | ||||
Assets | ||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 2,964 | 2,663 | ||
Deferred tax assets | 369 | 606 | ||
Liabilities | ||||
Interest sensitive contract liabilities | 57,296 | |||
Future policy benefits | 14,569 | 14,540 | ||
Other liabilities | 685 | 776 | ||
Prior Period Immaterial Revisions | Revisions | ||||
Assets | ||||
Total assets | (21) | (8) | ||
Liabilities | ||||
Total liabilities | 26 | 2 | ||
Equity [Abstract] | ||||
Retained earnings | (47) | (10) | ||
Total Athene Holding Ltd. shareholders' equity | (47) | (10) | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | (47) | (10) | ||
Total liabilities and equity | (21) | (8) | ||
Prior Period Immaterial Revisions | Consolidated Entity Excluding Variable Interest Entities (VIE) | Revisions | ||||
Assets | ||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | (24) | (11) | ||
Deferred tax assets | 3 | 3 | ||
Liabilities | ||||
Interest sensitive contract liabilities | (7) | |||
Future policy benefits | 23 | 7 | ||
Other liabilities | $ 3 | $ 2 |
Business, Basis of Presentation, and Significant Accounting Policies - Income Statement Revision (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
Revenues | |||||||||||||||||
Net investment income | $ 2,914 | $ 2,510 | $ 2,333 | ||||||||||||||
Total revenues | $ 1,066 | $ 1,272 | $ 1,045 | $ 722 | $ 1,047 | $ 224 | $ 544 | $ 803 | 4,105 | 2,618 | 4,101 | ||||||
Benefits and Expenses | |||||||||||||||||
Future policy and other policy benefits | 1,059 | 518 | 700 | ||||||||||||||
Total benefits and expenses | 681 | 1,234 | 837 | 637 | 825 | 148 | 416 | 639 | 3,389 | 2,028 | 3,577 | ||||||
Income before income taxes | 716 | 590 | 524 | ||||||||||||||
Income tax expense (benefit) | (52) | 12 | 53 | ||||||||||||||
Net income | 364 | 126 | 193 | 85 | 243 | 76 | 101 | 158 | 768 | 578 | 471 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 16 | 15 | ||||||||||||||
Net income available to Athene Holding Ltd. shareholders | $ 364 | $ 126 | $ 193 | $ 85 | $ 243 | $ 76 | $ 101 | $ 142 | 768 | 562 | 456 | ||||||
Scenario, Previously Reported | |||||||||||||||||
Revenues | |||||||||||||||||
Total revenues | 4,107 | 2,616 | 4,100 | ||||||||||||||
Benefits and Expenses | |||||||||||||||||
Total benefits and expenses | 3,354 | 2,024 | 3,568 | ||||||||||||||
Income before income taxes | 753 | 592 | 532 | ||||||||||||||
Income tax expense (benefit) | (52) | 14 | 54 | ||||||||||||||
Net income | 805 | 578 | 478 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 16 | 15 | ||||||||||||||
Net income available to Athene Holding Ltd. shareholders | 805 | 562 | 463 | ||||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||||||||||||||||
Revenues | |||||||||||||||||
Net investment income | 2,914 | 2,510 | 2,333 | ||||||||||||||
Investment related gains (losses) | 652 | (430) | 1,211 | ||||||||||||||
Benefits and Expenses | |||||||||||||||||
Interest sensitive contract benefits | 1,296 | 689 | 1,822 | ||||||||||||||
Amortization of deferred sales inducements | 39 | 21 | 4 | ||||||||||||||
Amortization of deferred acquisition costs and value of business acquired | 318 | 206 | 124 | ||||||||||||||
Dividends to policyholders | 37 | 28 | 44 | ||||||||||||||
Future policy and other policy benefits | 1,059 | 518 | 700 | ||||||||||||||
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 618 | 532 | 797 | ||||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Scenario, Previously Reported | |||||||||||||||||
Revenues | |||||||||||||||||
Net investment income | 2,916 | 2,508 | |||||||||||||||
Investment related gains (losses) | 1,210 | ||||||||||||||||
Benefits and Expenses | |||||||||||||||||
Interest sensitive contract benefits | 1,293 | 690 | |||||||||||||||
Amortization of deferred sales inducements | 40 | 20 | |||||||||||||||
Amortization of deferred acquisition costs and value of business acquired | 304 | 203 | 119 | ||||||||||||||
Future policy and other policy benefits | 1,043 | 517 | 696 | ||||||||||||||
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 615 | ||||||||||||||||
Prior Period Immaterial Revisions | Revisions | |||||||||||||||||
Revenues | |||||||||||||||||
Total revenues | (2) | 2 | 1 | ||||||||||||||
Benefits and Expenses | |||||||||||||||||
Total benefits and expenses | 35 | 4 | 9 | ||||||||||||||
Income before income taxes | (37) | (2) | (8) | ||||||||||||||
Income tax expense (benefit) | 0 | (2) | (1) | ||||||||||||||
Net income | (37) | 0 | (7) | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||
Net income available to Athene Holding Ltd. shareholders | (37) | 0 | (7) | ||||||||||||||
Prior Period Immaterial Revisions | Consolidated Entity Excluding Variable Interest Entities (VIE) | Revisions | |||||||||||||||||
Revenues | |||||||||||||||||
Net investment income | (2) | 2 | |||||||||||||||
Investment related gains (losses) | 1 | ||||||||||||||||
Benefits and Expenses | |||||||||||||||||
Interest sensitive contract benefits | 3 | (1) | |||||||||||||||
Amortization of deferred sales inducements | (1) | 1 | |||||||||||||||
Amortization of deferred acquisition costs and value of business acquired | 14 | 3 | 5 | ||||||||||||||
Future policy and other policy benefits | 16 | $ 1 | $ 4 | ||||||||||||||
Policy and other operating expenses (related party: 2016 – $22, 2015 – $18 and 2014 – $240) | 3 | ||||||||||||||||
Common Class A | |||||||||||||||||
Benefits and Expenses | |||||||||||||||||
Net income available to Athene Holding Ltd. shareholders | $ 214 | ||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Basic (in USD per share) | $ 1.92 | $ 0.68 | $ 1.04 | $ 0.46 | $ 1.31 | $ 0.41 | $ 0.54 | $ 0.99 | $ 4.11 | [1] | $ 3.21 | [1] | $ 3.52 | [1] | |||
Diluted (in USD per share) | 1.78 | 0.68 | 1.04 | 0.46 | 1.31 | 0.41 | 0.54 | 0.99 | 4.02 | 3.21 | 3.47 | ||||||
Common Class A | Scenario, Previously Reported | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Basic (in USD per share) | [1] | 4.31 | 3.21 | 3.58 | |||||||||||||
Diluted (in USD per share) | 4.21 | 3.21 | 3.52 | ||||||||||||||
Common Class A | Prior Period Immaterial Revisions | Revisions | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Basic (in USD per share) | [1] | (0.20) | 0.00 | (0.06) | |||||||||||||
Diluted (in USD per share) | $ (0.19) | 0.00 | (0.05) | ||||||||||||||
Common Class B | |||||||||||||||||
Benefits and Expenses | |||||||||||||||||
Net income available to Athene Holding Ltd. shareholders | $ 553 | ||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Basic (in USD per share) | 1.94 | 0.85 | 1.03 | 0.47 | 1.30 | 0.39 | 0.56 | 1.01 | $ 4.11 | 3.21 | 3.52 | ||||||
Diluted (in USD per share) | 1.92 | $ 0.68 | $ 1.04 | $ 0.46 | $ 1.31 | $ 0.41 | $ 0.54 | $ 0.99 | 4.11 | 3.21 | 3.47 | ||||||
Common Class B | Scenario, Previously Reported | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Diluted (in USD per share) | 4.31 | 3.21 | 3.52 | ||||||||||||||
Common Class B | Prior Period Immaterial Revisions | Revisions | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Diluted (in USD per share) | $ (0.20) | $ 0.00 | $ (0.05) | ||||||||||||||
Common Class M-1 | |||||||||||||||||
Benefits and Expenses | |||||||||||||||||
Net income available to Athene Holding Ltd. shareholders | $ 1 | ||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Basic (in USD per share) | 1.94 | $ 4.11 | |||||||||||||||
Diluted (in USD per share) | $ 0.46 | 0.20 | [1] | ||||||||||||||
Common Class M-1 | Scenario, Previously Reported | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Diluted (in USD per share) | [1] | 0.21 | |||||||||||||||
Common Class M-1 | Prior Period Immaterial Revisions | Revisions | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Diluted (in USD per share) | [1] | $ (0.01) | |||||||||||||||
|
Business, Basis of Presentation, and Significant Accounting Policies - Cash Flow Revision (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Cash flows from operating activities | ||||||||||||||
Net income | $ 364 | $ 126 | $ 193 | $ 85 | $ 243 | $ 76 | $ 101 | $ 158 | $ 768 | $ 578 | $ 471 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Deferred income tax expense (benefit) | (19) | 31 | 137 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Net cash provided by operating activities | 1,199 | 1,049 | 599 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net cash (used in) provided by investing activities | (2,602) | (52) | 1,332 | |||||||||||
Cash flows from financing activities | ||||||||||||||
Net cash provided by (used in) financing activities | 1,155 | (944) | (2,295) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (13) | (4) | 0 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (261) | 49 | (364) | |||||||||||
Cash and cash equivalents at beginning of year | [1] | 2,720 | 2,671 | 2,720 | 2,671 | 3,035 | ||||||||
Cash and cash equivalents at end of year | [1] | 2,459 | 2,720 | 2,459 | 2,720 | 2,671 | ||||||||
Scenario, Previously Reported | ||||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | 805 | 578 | 478 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Net cash provided by operating activities | 1,199 | 1,049 | 599 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net cash (used in) provided by investing activities | (2,602) | (52) | 1,332 | |||||||||||
Cash flows from financing activities | ||||||||||||||
Net cash provided by (used in) financing activities | 1,155 | (911) | (2,328) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (13) | (4) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (261) | 82 | (397) | |||||||||||
Cash and cash equivalents at beginning of year | [1] | 2,720 | 2,638 | 2,720 | 2,638 | 3,035 | ||||||||
Cash and cash equivalents at end of year | [1] | 2,459 | 2,720 | 2,459 | 2,720 | 2,638 | ||||||||
Prior Period Immaterial Revisions | Revisions | ||||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | (37) | 0 | (7) | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Net cash provided by operating activities | 0 | 0 | 0 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net cash (used in) provided by investing activities | 0 | 0 | 0 | |||||||||||
Cash flows from financing activities | ||||||||||||||
Net cash provided by (used in) financing activities | 0 | (33) | 33 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | 0 | (33) | 33 | |||||||||||
Cash and cash equivalents at beginning of year | [1] | 0 | $ 33 | 0 | 33 | 0 | ||||||||
Cash and cash equivalents at end of year | [1] | 0 | 0 | 0 | 0 | 33 | ||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Amortization of deferred acquisition costs and value of business acquired | 318 | 206 | 124 | |||||||||||
Amortization of deferred sales inducements | 39 | 21 | 4 | |||||||||||
Deferred income tax expense (benefit) | (19) | 31 | 137 | |||||||||||
Stock-based compensation | 84 | 67 | 373 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Interest sensitive contract liabilities | 925 | 874 | 2,144 | |||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 344 | (573) | (698) | |||||||||||
Funds withheld assets and liabilities | (128) | (278) | (1) | |||||||||||
Other assets and liabilities | (22) | (56) | (37) | |||||||||||
Cash flows from financing activities | ||||||||||||||
Other financing activities, net | 73 | (12) | 75 | |||||||||||
Cash and cash equivalents at beginning of year | $ 2,714 | 2,714 | ||||||||||||
Cash and cash equivalents at end of year | $ 2,445 | $ 2,714 | 2,445 | 2,714 | ||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Scenario, Previously Reported | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Amortization of deferred acquisition costs and value of business acquired | 304 | 203 | 119 | |||||||||||
Amortization of deferred sales inducements | 40 | 20 | ||||||||||||
Deferred income tax expense (benefit) | 33 | 138 | ||||||||||||
Stock-based compensation | 81 | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Interest sensitive contract liabilities | 918 | 879 | ||||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 328 | (574) | (702) | |||||||||||
Funds withheld assets and liabilities | 0 | |||||||||||||
Other assets and liabilities | (20) | (58) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Other financing activities, net | 21 | 42 | ||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Prior Period Immaterial Revisions | Revisions | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Amortization of deferred acquisition costs and value of business acquired | 14 | 3 | 5 | |||||||||||
Amortization of deferred sales inducements | (1) | 1 | ||||||||||||
Deferred income tax expense (benefit) | (2) | (1) | ||||||||||||
Stock-based compensation | 3 | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Interest sensitive contract liabilities | 7 | (5) | ||||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 16 | 1 | 4 | |||||||||||
Funds withheld assets and liabilities | (1) | |||||||||||||
Other assets and liabilities | $ (2) | 2 | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Other financing activities, net | $ (33) | $ 33 | ||||||||||||
|
Investments - Schedule of AFS Securities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Fixed maturity securities | ||
Cost or Amortized Cost | $ 51,110 | $ 48,227 |
Gross Unrealized Gains | 1,552 | 839 |
Gross Unrealized Losses | (629) | (1,250) |
Fair Value | 52,033 | 47,816 |
OTTI in AOCI | 17 | 15 |
Equity securities | ||
Cost or Amortized Cost | 319 | 367 |
Gross Unrealized Gains | 35 | 40 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 353 | 407 |
Total AFS securities | ||
Cost or Amortized Cost | 51,429 | 48,594 |
Gross Unrealized Gains | 1,587 | 879 |
Gross Unrealized Losses | (630) | (1,250) |
Fair Value | 52,386 | 48,223 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 59 | 44 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 60 | 45 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 1,024 | 1,075 |
Gross Unrealized Gains | 117 | 100 |
Gross Unrealized Losses | (1) | (10) |
Fair Value | 1,140 | 1,165 |
OTTI in AOCI | 0 | 7 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 2,098 | 2,467 |
Gross Unrealized Gains | 143 | 17 |
Gross Unrealized Losses | (6) | (20) |
Fair Value | 2,235 | 2,464 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 29,433 | 26,979 |
Gross Unrealized Gains | 901 | 523 |
Gross Unrealized Losses | (314) | (566) |
Fair Value | 30,020 | 26,936 |
OTTI in AOCI | 2 | 2 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 4,950 | 4,943 |
Gross Unrealized Gains | 14 | 4 |
Gross Unrealized Losses | (142) | (392) |
Fair Value | 4,822 | 4,555 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 2,980 | 2,944 |
Gross Unrealized Gains | 25 | 33 |
Gross Unrealized Losses | (69) | (59) |
Fair Value | 2,936 | 2,918 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 1,835 | 1,725 |
Gross Unrealized Gains | 38 | 33 |
Gross Unrealized Losses | (26) | (20) |
Fair Value | 1,847 | 1,738 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 8,731 | 8,050 |
Gross Unrealized Gains | 313 | 128 |
Gross Unrealized Losses | (71) | (183) |
Fair Value | 8,973 | 7,995 |
OTTI in AOCI | 15 | 6 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 51,451 | |
Fair Value | 52,368 | |
OTTI in AOCI | 17 | 15 |
Total AFS securities | ||
Cost or Amortized Cost | 51,790 | 48,926 |
Gross Unrealized Gains | 1,588 | 879 |
Gross Unrealized Losses | (637) | (1,274) |
Fair Value | 52,741 | 48,531 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 341 | 332 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (7) | |
Fair Value | 335 | 308 |
OTTI in AOCI | 0 | 0 |
Equity securities | ||
Cost or Amortized Cost | 20 | 0 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 20 | 0 |
Total AFS securities | ||
Cost or Amortized Cost | 361 | 332 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (7) | (24) |
Fair Value | 355 | 308 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 284 | 271 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (6) | (23) |
Fair Value | 279 | 248 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Fixed maturity securities | ||
Cost or Amortized Cost | 57 | 61 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 56 | 60 |
OTTI in AOCI | $ 0 | $ 0 |
Investments - Maturities of AFS Securities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Amortized Cost | ||
Due in one year or less | $ 831 | |
Due after one year through five years | 6,958 | |
Due after five years through ten years | 11,299 | |
Due after ten years | 13,526 | |
CLO, ABS, CMBS and RMBS | 18,496 | |
Cost or Amortized Cost | 51,110 | $ 48,227 |
Fair Value | ||
Due in one year or less | 835 | |
Due after one year through five years | 7,092 | |
Due after five years through ten years | 11,520 | |
Due after ten years | 14,008 | |
CLO, ABS, CMBS and RMBS | 18,578 | |
Total AFS fixed maturity securities | 52,033 | 47,816 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Amortized Cost | ||
Cost or Amortized Cost | 51,451 | |
Fair Value | ||
Total AFS fixed maturity securities | 52,368 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Amortized Cost | ||
CLO, ABS, CMBS and RMBS | 341 | |
Cost or Amortized Cost | 341 | 332 |
Fair Value | ||
CLO, ABS, CMBS and RMBS | 335 | |
Total AFS fixed maturity securities | $ 335 | $ 308 |
Investments - Unrealized Losses on AFS Securities (Details) $ in Millions |
Dec. 31, 2016
USD ($)
security
|
Dec. 31, 2015
USD ($)
|
---|---|---|
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Fair Value | ||
Less than 12 months | $ 9,510 | $ 18,255 |
12 months or greater | 6,903 | 3,604 |
Total | 16,413 | 21,859 |
Gross Unrealized Losses | ||
Less than 12 months | (291) | (824) |
12 months or greater | (339) | (426) |
Total | $ (630) | (1,250) |
Securities in unrealized loss position | security | 2,117 | |
Securities in unrealized loss position, great than 12 months | security | 899 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Fair Value | ||
Less than 12 months | $ 1 | 4 |
12 months or greater | 0 | 2 |
Total | 1 | 6 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or greater | 0 | 0 |
Total | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Fair Value | ||
Less than 12 months | 85 | 63 |
12 months or greater | 2 | 8 |
Total | 87 | 71 |
Gross Unrealized Losses | ||
Less than 12 months | (1) | (9) |
12 months or greater | 0 | (1) |
Total | (1) | (10) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Fair Value | ||
Less than 12 months | 137 | 711 |
12 months or greater | 9 | 0 |
Total | 146 | 711 |
Gross Unrealized Losses | ||
Less than 12 months | (5) | (20) |
12 months or greater | (1) | 0 |
Total | (6) | (20) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Fair Value | ||
Less than 12 months | 6,136 | 7,810 |
12 months or greater | 1,113 | 554 |
Total | 7,249 | 8,364 |
Gross Unrealized Losses | ||
Less than 12 months | (228) | (450) |
12 months or greater | (86) | (116) |
Total | (314) | (566) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Fair Value | ||
Less than 12 months | 388 | 2,934 |
12 months or greater | 3,102 | 1,555 |
Total | 3,490 | 4,489 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | (169) |
12 months or greater | (140) | (223) |
Total | (142) | (392) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Fair Value | ||
Less than 12 months | 865 | 1,484 |
12 months or greater | 767 | 371 |
Total | 1,632 | 1,855 |
Gross Unrealized Losses | ||
Less than 12 months | (17) | (37) |
12 months or greater | (52) | (22) |
Total | (69) | (59) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Fair Value | ||
Less than 12 months | 576 | 577 |
12 months or greater | 183 | 119 |
Total | 759 | 696 |
Gross Unrealized Losses | ||
Less than 12 months | (18) | (11) |
12 months or greater | (8) | (9) |
Total | (26) | (20) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Fair Value | ||
Less than 12 months | 1,143 | 4,672 |
12 months or greater | 1,727 | 995 |
Total | 2,870 | 5,667 |
Gross Unrealized Losses | ||
Less than 12 months | (19) | (128) |
12 months or greater | (52) | (55) |
Total | (71) | (183) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Total fixed maturity securities | ||
Fair Value | ||
Less than 12 months | 9,331 | |
12 months or greater | 6,903 | |
Total | 16,234 | |
Gross Unrealized Losses | ||
Less than 12 months | (290) | |
12 months or greater | (339) | |
Total | (629) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Equity securities | ||
Fair Value | ||
Less than 12 months | 179 | |
12 months or greater | 0 | |
Total | 179 | |
Gross Unrealized Losses | ||
Less than 12 months | (1) | |
12 months or greater | 0 | |
Total | (1) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value | ||
Less than 12 months | 9,592 | 18,454 |
12 months or greater | 7,059 | 3,676 |
Total | 16,651 | 22,130 |
Gross Unrealized Losses | ||
Less than 12 months | (291) | (839) |
12 months or greater | (346) | (435) |
Total | (637) | (1,274) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Fair Value | ||
Less than 12 months | 82 | 199 |
12 months or greater | 156 | 72 |
Total | 238 | 271 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | (15) |
12 months or greater | (7) | (9) |
Total | $ (7) | (24) |
Securities in unrealized loss position | security | 14 | |
Securities in unrealized loss position, great than 12 months | security | 10 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Fair Value | ||
Less than 12 months | $ 68 | 139 |
12 months or greater | 100 | 72 |
Total | 168 | 211 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | (14) |
12 months or greater | (6) | (9) |
Total | (6) | (23) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Fair Value | ||
Less than 12 months | 0 | 60 |
12 months or greater | 56 | 0 |
Total | 56 | 60 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | (1) |
12 months or greater | (1) | 0 |
Total | (1) | $ (1) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Total fixed maturity securities | ||
Fair Value | ||
Less than 12 months | 68 | |
12 months or greater | 156 | |
Total | 224 | |
Gross Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or greater | (7) | |
Total | (7) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Equity securities | ||
Fair Value | ||
Less than 12 months | 14 | |
12 months or greater | 0 | |
Total | 14 | |
Gross Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or greater | 0 | |
Total | $ 0 |
Investments - OTTI AFS Securities (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Net other-than-temporary impairment losses | $ 30 | $ 30 | $ 6 |
Net other-than-temporary impairment losses, intent to sell | 5 | ||
Net other-than-temporary impairment losses, credit-related | 25 | ||
Net other-than-temporary impairment losses, credit-related not bifurcated in AOCI | 14 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Beginning balance | 22 | 8 | 3 |
Initial impairments – credit loss OTTI recognized on securities not previously impaired | 8 | 19 | 3 |
Additional impairments – credit loss OTTI recognized on securities previously impaired | 3 | 1 | 2 |
Reduction in impairments from securities sold | (9) | (2) | 0 |
Reduction for credit loss that no longer has a portion of the OTTI loss recognized in AOCI | (8) | (4) | 0 |
Ending balance | $ 16 | $ 22 | $ 8 |
Investments - Net Investment Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net Investment Income [Line Items] | |||
Net investment income | $ 2,914 | $ 2,510 | $ 2,333 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Net Investment Income [Line Items] | |||
Investment revenue | 3,217 | 2,783 | 2,604 |
Investment expenses | (303) | (273) | (271) |
Net investment income | 2,914 | 2,510 | 2,333 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | Total fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Investment revenue | 2,293 | 2,051 | 1,868 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | Equity securities | |||
Net Investment Income [Line Items] | |||
Investment revenue | 9 | 7 | 6 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | |||
Net Investment Income [Line Items] | |||
Investment revenue | 238 | 196 | 136 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans, net of allowances | |||
Net Investment Income [Line Items] | |||
Investment revenue | 355 | 320 | 347 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | |||
Net Investment Income [Line Items] | |||
Investment revenue | 178 | 111 | 177 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Funds withheld at interest | |||
Net Investment Income [Line Items] | |||
Investment revenue | 82 | 54 | 46 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Other | |||
Net Investment Income [Line Items] | |||
Investment revenue | $ 62 | $ 44 | $ 24 |
Investments - Investment Related Gains (Losses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Related Party | |||
AFS fixed maturity securities | |||
Investment related gains (losses) | $ (38) | $ (19) | $ (1) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
AFS fixed maturity securities | |||
Net realized investment gains (losses) on trading securities | (33) | (228) | 242 |
Derivative gains (losses) | 596 | (277) | 793 |
Other gains (losses) | 5 | 11 | (5) |
Investment related gains (losses) | 652 | (430) | 1,211 |
Proceeds from sale of available-for-sale securities | 4,662 | 6,899 | 6,391 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Total fixed maturity securities | |||
AFS fixed maturity securities | |||
Gross realized gain on investment activity | 138 | 150 | 203 |
Gross realized loss on investment activity | (54) | (86) | (22) |
Net realized investment gains on fixed maturity securities | 84 | 64 | 181 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | |||
AFS fixed maturity securities | |||
Trading securities, unrealized holding gain (loss) | (10) | (10) | 13 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | |||
AFS fixed maturity securities | |||
Trading securities, unrealized holding gain (loss) | $ 38 | $ (133) | $ 258 |
Investments - Purchase Credit Impaired (PCI) Investments (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Fixed maturity securities | |||
Contractually required payments | $ 7,761 | $ 7,291 | |
Less: Cash flows expected to be collected | (5,285) | (4,986) | |
Non-accretable difference | 2,476 | 2,305 | |
Cash flows expected to be collected | 5,285 | 4,986 | |
Less: Amortized cost | (3,892) | (3,673) | |
Accretable difference | 1,393 | 1,313 | $ 1,330 |
Fair value | 4,029 | 3,647 | |
Mortgage loans | |||
Contractually required payments | 424 | ||
Less: Cash flows expected to be collected | (286) | ||
Non-accretable difference | 138 | ||
Cash flows expected to be collected | 286 | ||
Less: Amortized cost | (220) | ||
Accretable difference | 66 | $ 0 | |
Fair value | $ 221 |
Investments - PCI Securities Acquired During the Period (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fixed maturity securities | ||
Contractually required principal and interest | $ 1,631 | $ 1,999 |
Expected cash flows | 1,027 | 1,277 |
Estimated fair value | 761 | $ 937 |
Mortgage loans | ||
Contractually required principal and interest | 425 | |
Expected cash flows | 287 | |
Estimated fair value | $ 221 |
Investments - PCI Securities Accretable Yield (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fixed Maturity Securities Accretable Yield Activity | ||
Beginning balance at January 1 | $ 1,313 | $ 1,330 |
Purchases of PCI investments, net of sales | 231 | 243 |
Accretion | (112) | (113) |
Changes in expected cash flows | (39) | (147) |
Ending balance at December 31 | 1,393 | 1,313 |
Mortgage Loans Accretable Yield Activity | ||
Beginning balance at January 1 | 0 | |
Purchases of PCI investments, net of sales | 66 | |
Accretion | (1) | |
Changes in expected cash flows | 1 | |
Ending balance at December 31 | $ 66 | $ 0 |
Investments - Mortgage Loans, Net (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 5,470 | $ 5,500 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 5,132 | 5,400 |
Commercial mortgage loans | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 5,058 | 5,178 |
Commercial mortgage loans | Commercial mortgage loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 74 | 222 |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 338 | $ 100 |
Investments - Mortgage Loans, Net by Property Type and Geographic Region (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 5,470 | $ 5,500 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 5,132 | $ 5,400 |
Commercial mortgage loans | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans | Total U.S. Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 5,058 | $ 5,292 |
Commercial mortgage loans | Total U.S. Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 98.60% | 98.00% |
Commercial mortgage loans | East North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 450 | $ 443 |
Commercial mortgage loans | East North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 8.80% | 8.20% |
Commercial mortgage loans | East South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 158 | $ 129 |
Commercial mortgage loans | East South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 3.10% | 2.40% |
Commercial mortgage loans | Middle Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 628 | $ 804 |
Commercial mortgage loans | Middle Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 12.20% | 14.90% |
Commercial mortgage loans | Mountain | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 543 | $ 583 |
Commercial mortgage loans | Mountain | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 10.60% | 10.80% |
Commercial mortgage loans | New England | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 194 | $ 181 |
Commercial mortgage loans | New England | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 3.80% | 3.30% |
Commercial mortgage loans | Pacific | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 833 | $ 838 |
Commercial mortgage loans | Pacific | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 16.20% | 15.50% |
Commercial mortgage loans | South Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,284 | $ 1,231 |
Commercial mortgage loans | South Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 25.00% | 22.80% |
Commercial mortgage loans | West North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 306 | $ 291 |
Commercial mortgage loans | West North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 6.00% | 5.40% |
Commercial mortgage loans | West South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 662 | $ 792 |
Commercial mortgage loans | West South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 12.90% | 14.70% |
Commercial mortgage loans | International Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 74 | $ 108 |
Commercial mortgage loans | International Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 1.40% | 2.00% |
Commercial mortgage loans | Hotels | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,025 | $ 877 |
Commercial mortgage loans | Hotels | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 20.00% | 16.20% |
Commercial mortgage loans | Retail | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,135 | $ 1,230 |
Commercial mortgage loans | Retail | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 22.10% | 22.80% |
Commercial mortgage loans | Office building | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,217 | $ 1,274 |
Commercial mortgage loans | Office building | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 23.70% | 23.60% |
Commercial mortgage loans | Industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 742 | $ 821 |
Commercial mortgage loans | Industrial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 14.50% | 15.20% |
Commercial mortgage loans | Apartment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 616 | $ 907 |
Commercial mortgage loans | Apartment | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 12.00% | 16.80% |
Commercial mortgage loans | Other commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 397 | $ 291 |
Commercial mortgage loans | Other commercial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 7.70% | 5.40% |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 338 | $ 100 |
Residential mortgage loans | California | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 38.90% | 64.80% |
Residential mortgage loans | Florida | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 9.10% | |
Residential mortgage loans | New York | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 5.10% | |
Residential mortgage loans | Texas | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 10.10% | |
Residential mortgage loans | Washington | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 5.60% | |
Residential mortgage loans | Other U.S. States | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 46.90% | 19.50% |
Investments - Mortgage Loans, Net Past Due (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Investments Schedule [Abstract] | ||
Mortgage loan valuation allowance | $ 2 | $ 2 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Mortgage loans, net of allowances | 5,470 | 5,500 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current (less than 30 days past due) | 5,111 | 5,360 |
Mortgage loans, net of allowances | 5,132 | 5,400 |
Commercial mortgage loans | 30 to 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 1 |
Commercial mortgage loans | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 21 | $ 39 |
Investments - Mortgage Loans, Loan to Value Ratio (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 5,470 | $ 5,500 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 5,132 | 5,400 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 5,058 | 5,178 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 50% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,787 | 2,087 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 50% to 60% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,337 | 1,024 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 61% to 70% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,401 | 1,299 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 71% to 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 492 | 697 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Greater than 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 41 | $ 71 |
Investments - Mortgage Loans, Debt Service Coverage Ratio (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 5,470 | $ 5,500 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 5,132 | 5,400 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 5,058 | 5,178 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Greater than 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 4,378 | 4,455 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 1.00x – 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 353 | 471 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 1.00x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 327 | $ 252 |
Investments - Real Estate (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Real Estate Properties [Line Items] | ||
Invested real estate, accumulated depreciation | $ 11 | $ 2 |
Real Estate Investment | ||
Real Estate Properties [Line Items] | ||
Depreciation expense | $ 9 | $ 2 |
Derivative Instruments - Summary of Notional and Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative [Line Items] | ||
Total derivative assets, including embedded derivatives, fair value | $ 1,510 | $ 907 |
Total derivative liabilities, including embedded derivatives, fair value | 5,329 | 4,516 |
Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 11 | 14 |
Derivative liabilities, fair value | 18 | 0 |
Derivatives designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 289 | 177 |
Derivative assets, fair value | 11 | 14 |
Derivative liabilities, fair value | 4 | 0 |
Derivatives designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 302 | 0 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 14 | 0 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Total derivative assets, including embedded derivatives, fair value | 1,499 | 893 |
Total derivative liabilities, including embedded derivatives, fair value | 5,311 | 4,516 |
Derivatives not designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 43 | 47 |
Derivative assets, fair value | 5 | 5 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 568 | 859 |
Derivative assets, fair value | 1 | 2 |
Derivative liabilities, fair value | 5 | 8 |
Derivatives not designated as hedges | Equity options | ||
Derivative [Line Items] | ||
Notional Amount | 26,822 | 25,176 |
Derivative assets, fair value | 1,336 | 831 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | Futures | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative assets, fair value | 9 | 9 |
Derivative liabilities, fair value | 0 | 1 |
Derivatives not designated as hedges | Total return swaps | ||
Derivative [Line Items] | ||
Notional Amount | 41 | 54 |
Derivative assets, fair value | 2 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | Credit default swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10 | 10 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 7 | 7 |
Derivatives not designated as hedges | Variance swaps | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative assets, fair value | 0 | 5 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 805 | 367 |
Derivative assets, fair value | 6 | 5 |
Derivative liabilities, fair value | 10 | 1 |
Derivatives not designated as hedges | Embedded derivatives | Funds withheld | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Embedded derivative assets, fair value | 140 | 36 |
Embedded derivative liabilities, fair value | 6 | 35 |
Derivatives not designated as hedges | Embedded derivatives | Interest sensitive contract liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Embedded derivative assets, fair value | 0 | 0 |
Embedded derivative liabilities, fair value | $ 5,283 | $ 4,464 |
Derivative Instruments - Fair value hedging (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Loss recognized on derivative | $ (14) |
Gain recognized on hedged item | 14 |
Ineffectiveness recognized on fair value hedges | $ 0 |
Derivative Instruments - Gains (Losses) on Derivatives Not Designated as Hedging (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | $ 272 | $ (106) | $ (183) |
Investment related gains (losses) | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | 596 | (277) | 793 |
Investment related gains (losses) | Equity options | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | 325 | (372) | 955 |
Investment related gains (losses) | Futures | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | (19) | (3) | 52 |
Investment related gains (losses) | Total return swaps | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | 5 | 0 | 11 |
Investment related gains (losses) | Foreign currency swaps | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | 14 | 12 | 3 |
Investment related gains (losses) | Interest rate swaps | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | (1) | (4) | (4) |
Investment related gains (losses) | Foreign currency forwards | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | (2) | 21 | 21 |
Investment related gains (losses) | Embedded Derivatives | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | 274 | 69 | (245) |
Interest sensitive contract benefits | Embedded Derivatives | |||
Derivative [Line Items] | |||
Total gains (losses) for derivatives not designated as hedges | $ (324) | $ 171 | $ (976) |
Derivative Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Offsetting Derivative Assets | ||
Gross amount recognized | $ 1,370 | $ 871 |
Gross amounts not offset on the consolidated balance sheets, financial instruments | (8) | (7) |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | (1,383) | (867) |
Net amount | (21) | (3) |
Off-balance sheet securities collateral | (26) | (57) |
Net amount after securities collateral | (47) | (60) |
Offsetting Derivative Liabilities | ||
Gross amount recognized | (40) | (17) |
Gross amounts not offset on the consolidated balance sheets, financial instruments | 8 | 7 |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | 25 | 9 |
Net amount | (7) | (1) |
Off-balance sheet securities collateral | 0 | 0 |
Net amount after securities collateral | $ (7) | $ (1) |
Derivative Instruments - Credit Swaps (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of derivative liabilities with credit related provisions | $ 7 | $ 7 |
Maximum exposure for credit default swaps | $ 10 | $ 10 |
Derivative Instruments - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative [Line Items] | |||
Collateral pledged | $ 25,000,000 | $ 9,000,000 | |
Additional collateral required | 0 | 0 | |
Cash flow hedges | Derivatives designated as hedges | Foreign currency swaps | |||
Derivative [Line Items] | |||
Foreign currency swap gains (losses) | (5,000,000) | 9,000,000 | $ (7,000,000) |
Foreign currency swap gain (loss) reclassified to income | 0 | 0 | 0 |
Gain (loss) on cash flow hedge ineffectiveness | $ 0 | $ 0 | $ 0 |
Variable Interest Entities - Fair Value Hierarchy of Consolidated VIEs (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Trading securities | ||
Investment funds | $ 2,460 | $ 2,264 |
Recurring | Variable Interest Entities | Level 1 | ||
Available-for-sale securities | ||
Equity securities | 161 | |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Equity securities | 74 | 271 |
Investment funds | 0 | 0 |
Cash and cash equivalents | 14 | 6 |
Total assets not carried at fair value | 249 | 277 |
Recurring | Variable Interest Entities | Level 2 | ||
Available-for-sale securities | ||
Equity securities | 0 | |
Trading securities | ||
Fixed maturity securities | 0 | 669 |
Equity securities | 0 | 0 |
Investment funds | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Total assets not carried at fair value | 0 | 669 |
Recurring | Variable Interest Entities | Level 3 | ||
Available-for-sale securities | ||
Equity securities | 0 | |
Trading securities | ||
Fixed maturity securities | 50 | 53 |
Equity securities | 43 | 38 |
Investment funds | 562 | 516 |
Cash and cash equivalents | 0 | 0 |
Total assets not carried at fair value | 655 | 607 |
Recurring | Variable Interest Entities | Fair Value | ||
Available-for-sale securities | ||
Equity securities | 161 | |
Trading securities | ||
Fixed maturity securities | 50 | 722 |
Equity securities | 117 | 309 |
Investment funds | 562 | 516 |
Cash and cash equivalents | 14 | 6 |
Total assets not carried at fair value | $ 904 | $ 1,553 |
Variable Interest Entities - Rollforward of Level 3 Fair Value (Details) - Variable Interest Entities - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 607 | $ 2,230 |
Total realized and unrealized gains (losses) included in income | 51 | (18) |
Purchases/Borrowings | 19 | 17 |
Sales/Repayments | (22) | (15) |
Transfers in (out) | 0 | 0 |
Other | 0 | (1,607) |
Ending Balance | 655 | 607 |
Total gains (losses) included in earnings | 51 | (28) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | (1,517) |
Total realized and unrealized gains (losses) included in income | 0 | |
Purchases/Borrowings | 0 | |
Sales/Repayments | 0 | |
Transfers in (out) | 0 | |
Other | 1,517 | |
Ending Balance | 0 | |
Total gains (losses) included in earnings | 0 | |
Borrowings | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | (1,517) |
Total realized and unrealized gains (losses) included in income | 0 | |
Purchases/Borrowings | 0 | |
Sales/Repayments | 0 | |
Transfers in (out) | 0 | |
Other | 1,517 | |
Ending Balance | 0 | |
Total gains (losses) included in earnings | 0 | |
Investment funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 516 | 40 |
Total realized and unrealized gains (losses) included in income | 49 | 3 |
Purchases/Borrowings | 17 | 15 |
Sales/Repayments | (20) | (15) |
Transfers in (out) | 0 | 0 |
Other | 0 | 473 |
Ending Balance | 562 | 516 |
Total gains (losses) included in earnings | 49 | (7) |
Loans held for investment | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 2,071 |
Total realized and unrealized gains (losses) included in income | 0 | |
Purchases/Borrowings | 0 | |
Sales/Repayments | 0 | |
Transfers in (out) | 0 | |
Other | (2,071) | |
Ending Balance | 0 | |
Total gains (losses) included in earnings | 0 | |
Total fixed maturity securities | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 53 | 57 |
Total realized and unrealized gains (losses) included in income | (1) | (6) |
Purchases/Borrowings | 0 | 2 |
Sales/Repayments | (2) | 0 |
Transfers in (out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | 50 | 53 |
Total gains (losses) included in earnings | (1) | (6) |
Equity securities | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 38 | 62 |
Total realized and unrealized gains (losses) included in income | 3 | (15) |
Purchases/Borrowings | 2 | 0 |
Sales/Repayments | 0 | 0 |
Transfers in (out) | 0 | 0 |
Other | 0 | (9) |
Ending Balance | 43 | 38 |
Total gains (losses) included in earnings | $ 3 | $ (15) |
Variable Interest Entities - Assets for Which Fair Value Option Was Elected (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Variable Interest Entity [Line Items] | |||
Total gains (losses) | $ (53) | $ (187) | $ 188 |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Total gains (losses) | (30) | 3 | 49 |
Variable Interest Entities | Trading securities | Total fixed maturity securities | |||
Variable Interest Entity [Line Items] | |||
Total gains (losses) | (1) | (5) | (2) |
Variable Interest Entities | Trading securities | Equity securities | |||
Variable Interest Entity [Line Items] | |||
Total gains (losses) | (78) | (4) | 27 |
Variable Interest Entities | Investment funds | |||
Variable Interest Entity [Line Items] | |||
Total gains (losses) | 49 | 12 | 20 |
Variable Interest Entities | Loans held for investment | |||
Variable Interest Entity [Line Items] | |||
Total gains (losses) | $ 0 | $ 0 | $ 4 |
Variable Interest Entities - Carrying Value and Exposure of Non-Consolidated VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Carrying Value | $ 22,161 | $ 20,462 |
Maximum Loss Exposure | 22,730 | 21,568 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Total fixed maturity securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 19,171 | 17,673 |
Maximum Loss Exposure | 19,090 | 18,129 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Total fixed maturity securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 530 | 525 |
Maximum Loss Exposure | 536 | 549 |
Investment funds | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 689 | 733 |
Maximum Loss Exposure | 1,026 | 878 |
Investment funds | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 1,198 | 997 |
Maximum Loss Exposure | 1,485 | 1,454 |
Investment funds | Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 573 | 534 |
Maximum Loss Exposure | $ 593 | $ 558 |
Variable Interest Entities - Summary of Consolidated VIE Investment Funds (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Variable Interest Entity [Line Items] | ||
Investment funds | $ 2,460 | $ 2,264 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 689 | $ 733 |
Percent of total | 100.00% | 100.00% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Private equity | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 268 | $ 263 |
Percent of total | 38.90% | 35.90% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Mortgage and real estate | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 118 | $ 101 |
Percent of total | 17.20% | 13.80% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Natural resources | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 5 | $ 6 |
Percent of total | 0.70% | 0.80% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 72 | $ 86 |
Percent of total | 10.40% | 11.70% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 226 | $ 277 |
Percent of total | 32.80% | 37.80% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 1,198 | $ 997 |
Percent of total | 100.00% | 100.00% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 343 | $ 225 |
Percent of total | 28.60% | 22.60% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity – other | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 131 | $ 36 |
Percent of total | 11.00% | 3.60% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage and real estate | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 247 | $ 234 |
Percent of total | 20.60% | 23.50% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Natural resources | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 49 | $ 46 |
Percent of total | 4.10% | 4.60% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Hedge funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 192 | $ 256 |
Percent of total | 16.00% | 25.60% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 236 | $ 200 |
Percent of total | 19.70% | 20.10% |
Variable Interest Entities | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 573 | $ 534 |
Percent of total | 100.00% | 100.00% |
Variable Interest Entities | Private equity | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 524 | $ 482 |
Percent of total | 91.40% | 90.30% |
Variable Interest Entities | Mortgage and real estate | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 11 | $ 18 |
Percent of total | 1.90% | 3.40% |
Variable Interest Entities | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 38 | $ 34 |
Percent of total | 6.70% | 6.30% |
CoInvest VII | Related Party | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | $ 761 | $ 782 |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Private equity | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Mortgage and real estate | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Natural resources | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 1 year | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 6 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity – other | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 6 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage and real estate | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 1 year | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Natural resources | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 5 years | 3 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Hedge funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 9 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 2 years | 3 years |
Minimum | Variable Interest Entities | Mortgage and real estate | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 2 years | 3 years |
Minimum | Variable Interest Entities | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Private equity | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 7 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Mortgage and real estate | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 4 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Natural resources | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 2 years | 1 year |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 4 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 5 years | 5 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity – other | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 10 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage and real estate | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 4 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Natural resources | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 5 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Hedge funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 9 years | 1 year |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 10 years |
Maximum | Variable Interest Entities | Mortgage and real estate | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 4 years |
Maximum | Variable Interest Entities | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 4 years |
Variable Interest Entities - Summarized Financial Information of Equity Method Investees (Details) - Investment funds - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 40,120 | $ 52,637 | |
Liabilities | 5,886 | 7,167 | |
Equity | 34,234 | 45,470 | |
Net income | $ 1,686 | $ 5,966 | $ 8,418 |
Variable Interest Entities - Investments by Ownership Percentage (Details) - Investment funds - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Equity method investment funds | $ 1,799 | $ 1,596 |
100% | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | 27 | 49 |
50% – 99% | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | 478 | 322 |
Greater than 3% – 49% | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | $ 1,294 | $ 1,225 |
Variable Interest Entities - Investments by Ownership Percentage with Fair Value Election (Details) - Investment funds - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | $ 661 | $ 668 |
Greater than 3% – 49% | ||
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | 562 | 516 |
3% or less | ||
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | $ 99 | $ 152 |
Variable Interest Entities - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Variable Interest Entity [Line Items] | ||||
Participation interest liability | $ 14,000,000 | |||
Assets, Level 1 to Level 2 transfers | 0 | $ 0 | ||
Liabilities, Level 1 to Level 2 transfers | 0 | 0 | ||
Assets, Level 2 to Level 1 transfers | 0 | 0 | ||
Liabilities, Level 2 to Level 1 transfers | 0 | 0 | ||
Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Trading securities, unrealized holding loss included in income statement | 78,000,000 | 33,000,000 | $ 74,000,000 | |
Assets, Level 1 to Level 2 transfers | 0 | 0 | ||
Liabilities, Level 1 to Level 2 transfers | 0 | 0 | ||
Assets, Level 2 to Level 1 transfers | 0 | 0 | ||
Liabilities, Level 2 to Level 1 transfers | 0 | 0 | ||
NCL LLC | Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Membership interest in NCL LLC | 100.00% | |||
CMBS-I and CMBS-II | Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Repayments of borrowings under repurchase agreements | $ 500,000,000 | |||
CMBS return of capital | $ 167,000,000 | |||
Borrowings outstanding under repurchase agreements | $ 500,000,000 | |||
Weighted average interest rate | 3.20% | |||
Weighted Average | Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Discount rate | 34.00% | |||
Caesars Entertainment Corporation | CoInvest VI | Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
CEC shares owed to debtors | 27,000,000 | |||
Caesars Acquisition Company | CoInvest VI | Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Equity investments | 45,000,000 | |||
Carrying Value | Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Borrowings outstanding under repurchase agreements | $ 500,000,000 | |||
Investment Funds | ||||
Variable Interest Entity [Line Items] | ||||
Investment funds | $ 11,000,000 | $ 18,000,000 |
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Trading securities | ||
Mortgage loans | $ 5,470 | $ 5,500 |
Investment funds | 2,460 | 2,264 |
Reinsurance recoverable | 6,001 | 7,257 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 52,033 | 47,816 |
Equity securities | 353 | 407 |
Fair Value | 52,386 | 48,223 |
Trading securities | ||
Total trading securities | 2,581 | 2,468 |
Mortgage loans | 5,470 | 5,500 |
Investment funds | 689 | 733 |
Funds withheld at interest | 6,538 | 3,482 |
Derivative assets | 1,370 | 871 |
Short-term investments | 189 | 135 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 60 | 45 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,140 | 1,165 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 2,235 | 2,464 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 30,020 | 26,936 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 4,822 | 4,555 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 2,936 | 2,918 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,847 | 1,738 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 8,973 | 7,995 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Fair Value | ||
Trading securities | ||
Mortgage loans | 44 | 48 |
Investment funds | 99 | 152 |
Alternative investments | 590 | 581 |
Funds withheld at interest | 140 | 36 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Fair Value | Level 3 | ||
Trading securities | ||
Mortgage loans | 5,560 | 5,567 |
Funds withheld at interest | 6,398 | 3,446 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Investment funds | ||
Trading securities | ||
Alternative investments | 99 | 152 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 29 | 41 |
Equity securities | 79 | 82 |
Fair Value | 108 | 123 |
Trading securities | ||
Fixed maturity securities | 3 | 1 |
Equity securities | 0 | 0 |
Total trading securities | 3 | 1 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 9 | 9 |
Short-term investments | 19 | 4 |
Cash and cash equivalents | 2,445 | 2,714 |
Restricted cash | 57 | 116 |
Reinsurance recoverable | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | Embedded Derivatives | ||
Trading securities | ||
Funds withheld at interest | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | U.S. government and agencies | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 29 | 41 |
Trading securities | ||
Fixed maturity securities | 3 | 1 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | U.S. state, municipal and political subdivisions | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | Foreign governments | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | Corporate | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | CLO | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | ABS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | CMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 1 | RMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 50,128 | 43,967 |
Equity securities | 269 | 316 |
Fair Value | 50,397 | 44,283 |
Trading securities | ||
Fixed maturity securities | 1,997 | 1,781 |
Equity securities | 425 | 418 |
Total trading securities | 2,422 | 2,199 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 1,361 | 862 |
Short-term investments | 170 | 131 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | Embedded Derivatives | ||
Trading securities | ||
Funds withheld at interest | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | U.S. government and agencies | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 31 | 4 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | U.S. state, municipal and political subdivisions | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,135 | 1,165 |
Trading securities | ||
Fixed maturity securities | 120 | 116 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | Foreign governments | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 2,221 | 2,447 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | Corporate | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 29,650 | 26,300 |
Trading securities | ||
Fixed maturity securities | 1,423 | 1,434 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | CLO | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 4,664 | 4,038 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | ABS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,776 | 1,105 |
Trading securities | ||
Fixed maturity securities | 82 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | CMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,695 | 1,671 |
Trading securities | ||
Fixed maturity securities | 81 | 99 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 2 | RMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 8,956 | 7,237 |
Trading securities | ||
Fixed maturity securities | 291 | 132 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,876 | 3,808 |
Equity securities | 5 | 9 |
Fair Value | 1,881 | 3,817 |
Trading securities | ||
Fixed maturity securities | 156 | 268 |
Equity securities | 0 | 0 |
Total trading securities | 156 | 268 |
Mortgage loans | 44 | 48 |
Investment funds | 0 | 0 |
Derivative assets | 0 | 0 |
Short-term investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 1,692 | 2,377 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | Embedded Derivatives | ||
Trading securities | ||
Funds withheld at interest | 140 | 36 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | U.S. government and agencies | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | U.S. state, municipal and political subdivisions | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 5 | 0 |
Trading securities | ||
Fixed maturity securities | 17 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | Foreign governments | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 14 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | Corporate | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 370 | 636 |
Trading securities | ||
Fixed maturity securities | 0 | 16 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | CLO | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 158 | 517 |
Trading securities | ||
Fixed maturity securities | 43 | 108 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | ABS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,160 | 1,813 |
Trading securities | ||
Fixed maturity securities | 0 | 98 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | CMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 152 | 67 |
Trading securities | ||
Fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Level 3 | RMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 17 | 758 |
Trading securities | ||
Fixed maturity securities | 96 | 29 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 52,033 | 47,816 |
Equity securities | 353 | 407 |
Fair Value | 52,386 | 48,223 |
Trading securities | ||
Fixed maturity securities | 2,156 | 2,050 |
Equity securities | 425 | 418 |
Total trading securities | 2,581 | 2,468 |
Mortgage loans | 44 | 48 |
Investment funds | 99 | 152 |
Derivative assets | 1,370 | 871 |
Short-term investments | 189 | 135 |
Cash and cash equivalents | 2,445 | 2,714 |
Restricted cash | 57 | 116 |
Reinsurance recoverable | 1,692 | 2,377 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | Embedded Derivatives | ||
Trading securities | ||
Funds withheld at interest | 140 | 36 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | U.S. government and agencies | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 60 | 45 |
Trading securities | ||
Fixed maturity securities | 3 | 1 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | U.S. state, municipal and political subdivisions | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,140 | 1,165 |
Trading securities | ||
Fixed maturity securities | 137 | 133 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | Foreign governments | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 2,235 | 2,464 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | Corporate | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 30,020 | 26,936 |
Trading securities | ||
Fixed maturity securities | 1,423 | 1,450 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | CLO | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 4,822 | 4,555 |
Trading securities | ||
Fixed maturity securities | 43 | 108 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | ABS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 2,936 | 2,918 |
Trading securities | ||
Fixed maturity securities | 82 | 98 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | CMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 1,847 | 1,738 |
Trading securities | ||
Fixed maturity securities | 81 | 99 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Recurring | Fair Value | RMBS | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 8,973 | 7,995 |
Trading securities | ||
Fixed maturity securities | 387 | 161 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 52,368 | |
Fair Value | 52,741 | 48,531 |
Trading securities | ||
Restricted cash | 57 | 116 |
Reinsurance recoverable | 6,001 | 7,257 |
Liabilities | ||
Interest sensitive contract liabilities | 61,532 | 57,289 |
Future policy benefits | 14,592 | 14,547 |
Derivative liabilities | 40 | 17 |
Funds withheld liability | 380 | 388 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 335 | 308 |
Equity securities | 20 | 0 |
Fair Value | 355 | 308 |
Trading securities | ||
Total trading securities | 195 | 217 |
Investment funds | 1,198 | 997 |
Short-term investments | 0 | 55 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 279 | 248 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 56 | 60 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | ||
Trading securities | ||
Reinsurance recoverable | 1,692 | 2,377 |
Total assets not carried at fair value | 14,691 | 11,627 |
Liabilities | ||
Interest sensitive contract liabilities | 6,574 | 6,346 |
Future policy benefits | 2,400 | 2,478 |
Funds withheld liability | 6 | 35 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | Related Party | ||
Trading securities | ||
Alternative investments | 1,198 | 997 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | Level 2 | ||
Liabilities | ||
Funds withheld liability | 374 | 353 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | Level 2 | Related Party | ||
Trading securities | ||
Short-term investments | 0 | 55 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | Level 3 | ||
Liabilities | ||
Interest sensitive contract liabilities | 26,930 | 22,971 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Trading securities | ||
Alternative investments | 99 | 152 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ||
Trading securities | ||
Total assets not carried at fair value | 2,661 | 2,967 |
Liabilities | ||
Derivative liabilities | 0 | 1 |
Total liabilities measured at fair value | 0 | 1 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Equity securities | 20 | |
Fair Value | 20 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Embedded Derivatives | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Trading securities | ||
Total trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ||
Trading securities | ||
Total assets not carried at fair value | 54,629 | 47,742 |
Liabilities | ||
Derivative liabilities | 33 | 9 |
Total liabilities measured at fair value | 447 | 462 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 279 | 241 |
Equity securities | 0 | |
Fair Value | 279 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 408 | 418 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Embedded Derivatives | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 6 | 35 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 279 | 241 |
Trading securities | ||
Total trading securities | 0 | 26 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ||
Trading securities | ||
Total assets not carried at fair value | 4,164 | 6,804 |
Liabilities | ||
Derivative liabilities | 7 | 7 |
Total liabilities measured at fair value | 8,573 | 8,413 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 56 | 67 |
Equity securities | 0 | |
Fair Value | 56 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 883 | 1,464 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,606 | 1,581 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 794 | 897 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded Derivatives | ||
Liabilities | ||
Interest sensitive contract liabilities | 5,283 | 4,464 |
Funds withheld liability | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 0 | 7 |
Trading securities | ||
Total trading securities | 195 | 191 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 56 | 60 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | ||
Trading securities | ||
Total assets not carried at fair value | 61,553 | 57,665 |
Liabilities | ||
Derivative liabilities | 40 | 17 |
Total liabilities measured at fair value | 9,020 | 8,876 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 335 | 308 |
Equity securities | 20 | |
Fair Value | 355 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 883 | 1,464 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 408 | 418 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,606 | 1,581 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 794 | 897 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | Embedded Derivatives | ||
Liabilities | ||
Interest sensitive contract liabilities | 5,283 | 4,464 |
Funds withheld liability | 6 | 35 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | CLO | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | 279 | 248 |
Trading securities | ||
Total trading securities | 195 | 217 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Fair Value | ABS | Related Party | ||
Available-for-sale securities | ||
Total AFS fixed maturity securities | $ 56 | $ 60 |
Fair Value - Fair Value Option (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | $ (53) | $ (187) | $ 188 |
Trading securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | (33) | (313) | 254 |
Mortgage loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | 0 | 0 | 5 |
Unpaid principal balance | 42 | 46 | |
Mark to fair value | 2 | 2 | |
Fair value | 44 | 48 | |
Investment funds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | 5 | (8) | 31 |
Future policy benefits | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | $ (25) | $ 134 | $ (102) |
Fair Value - Reconciliation of Level 3 Financial Instruments (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 9 | $ 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (4) | 10 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | (1) |
Ending Balance | 5 | 9 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | U.S. state, municipal and political subdivisions | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 52 |
Total realized and unrealized gains (losses) included in income | 0 | (1) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 |
Purchases, (Sales), Issuances, (Settlements) | 0 | (35) |
Transfer In | 5 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | (17) |
Ending Balance | 5 | 0 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | Foreign governments | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 17 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses), Included in OCI | (1) | 0 |
Purchases, (Sales), Issuances, (Settlements) | (2) | 0 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 17 |
Ending Balance | 14 | 17 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | Corporate | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 636 | 208 |
Total realized and unrealized gains (losses) included in income | 0 | (1) |
Total realized and unrealized gains (losses), Included in OCI | 20 | (13) |
Purchases, (Sales), Issuances, (Settlements) | (36) | 230 |
Transfer In | 0 | 225 |
Transfers (Out) | (250) | (13) |
Other | 0 | 0 |
Ending Balance | 370 | 636 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | CLO | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 517 | 182 |
Total realized and unrealized gains (losses) included in income | 4 | 3 |
Total realized and unrealized gains (losses), Included in OCI | 55 | (9) |
Purchases, (Sales), Issuances, (Settlements) | (46) | 112 |
Transfer In | 72 | 337 |
Transfers (Out) | (444) | (108) |
Other | 0 | 0 |
Ending Balance | 158 | 517 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ABS | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,813 | 924 |
Total realized and unrealized gains (losses) included in income | 81 | 18 |
Total realized and unrealized gains (losses), Included in OCI | (12) | (35) |
Purchases, (Sales), Issuances, (Settlements) | (635) | 221 |
Transfer In | 104 | 703 |
Transfers (Out) | (191) | (18) |
Other | 0 | 0 |
Ending Balance | 1,160 | 1,813 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | CMBS | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 67 | 69 |
Total realized and unrealized gains (losses) included in income | 1 | 1 |
Total realized and unrealized gains (losses), Included in OCI | 0 | (2) |
Purchases, (Sales), Issuances, (Settlements) | 39 | 23 |
Transfer In | 91 | 23 |
Transfers (Out) | (46) | (47) |
Other | 0 | 0 |
Ending Balance | 152 | 67 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | RMBS | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 758 | 654 |
Total realized and unrealized gains (losses) included in income | 3 | 11 |
Total realized and unrealized gains (losses), Included in OCI | 19 | (15) |
Purchases, (Sales), Issuances, (Settlements) | (297) | (47) |
Transfer In | 0 | 155 |
Transfers (Out) | (466) | 0 |
Other | 0 | 0 |
Ending Balance | 17 | 758 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | U.S. state, municipal and political subdivisions | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 17 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 17 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | 17 | 17 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | Corporate | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 16 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (4) | 0 |
Transfer In | 0 | 16 |
Transfers (Out) | (12) | 0 |
Other | 0 | 0 |
Ending Balance | 0 | 16 |
Total gains (losses) included in earnings | 4 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | CLO | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 108 | 146 |
Total realized and unrealized gains (losses) included in income | (2) | (16) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (63) | (22) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | 43 | 108 |
Total gains (losses) included in earnings | 11 | (15) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | ABS | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 98 | 0 |
Total realized and unrealized gains (losses) included in income | (16) | (2) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 100 |
Transfer In | 0 | 0 |
Transfers (Out) | (82) | 0 |
Other | 0 | 0 |
Ending Balance | 0 | 98 |
Total gains (losses) included in earnings | 0 | (1) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | RMBS | Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 29 | 0 |
Total realized and unrealized gains (losses) included in income | (23) | (1) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 144 | 30 |
Transfer In | 0 | 0 |
Transfers (Out) | (54) | 0 |
Other | 0 | 0 |
Ending Balance | 96 | 29 |
Total gains (losses) included in earnings | (9) | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Mortgage loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 48 | 73 |
Total realized and unrealized gains (losses) included in income | 0 | (3) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (4) | (4) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | (18) |
Ending Balance | 44 | 48 |
Total gains (losses) included in earnings | 0 | (3) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Reinsurance recoverable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 2,377 | 2,460 |
Total realized and unrealized gains (losses) included in income | (685) | (83) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | 1,692 | 2,377 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Embedded derivatives | Funds withheld at interest | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 36 | 127 |
Total realized and unrealized gains (losses) included in income | 104 | (91) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | 140 | 36 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 6,804 | 5,244 |
Total realized and unrealized gains (losses) included in income | (566) | (195) |
Total realized and unrealized gains (losses), Included in OCI | 82 | (76) |
Purchases, (Sales), Issuances, (Settlements) | (905) | 592 |
Transfer In | 302 | 1,476 |
Transfers (Out) | (1,553) | (218) |
Other | 0 | (19) |
Ending Balance | 4,164 | 6,804 |
Total gains (losses) included in earnings | 29 | (36) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (8,413) | (8,603) |
Total realized and unrealized gains (losses), Included in income | 335 | 388 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (495) | (198) |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | (8,573) | (8,413) |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | CLO | Fixed Maturity Securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 7 | 15 |
Total realized and unrealized gains (losses) included in income | 0 | (1) |
Total realized and unrealized gains (losses), Included in OCI | 1 | (2) |
Purchases, (Sales), Issuances, (Settlements) | 0 | 1 |
Transfer In | 0 | 0 |
Transfers (Out) | (8) | (6) |
Other | 0 | 0 |
Ending Balance | 0 | 7 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ABS | Fixed Maturity Securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 60 | 66 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | (1) |
Purchases, (Sales), Issuances, (Settlements) | (4) | (5) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | 56 | 60 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | CLO | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 191 | 268 |
Total realized and unrealized gains (losses) included in income | (33) | (29) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 7 | (22) |
Transfer In | 30 | 0 |
Transfers (Out) | 0 | (26) |
Other | 0 | 0 |
Ending Balance | 195 | 191 |
Total gains (losses) included in earnings | 23 | (17) |
Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Universal life | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (1,464) | (1,417) |
Total realized and unrealized gains (losses), Included in income | 581 | (47) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | (883) | (1,464) |
Total gains (losses) included in earnings | 0 | 0 |
Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (4,464) | (4,437) |
Total realized and unrealized gains (losses), Included in income | (324) | 171 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (495) | (198) |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | (5,283) | (4,464) |
Total gains (losses) included in earnings | 0 | 0 |
Future policy benefits | Consolidated Entity Excluding Variable Interest Entities (VIE) | AmerUs Closed Block | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (1,581) | (1,715) |
Total realized and unrealized gains (losses), Included in income | (25) | 134 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | (1,606) | (1,581) |
Total gains (losses) included in earnings | 0 | 0 |
Future policy benefits | Consolidated Entity Excluding Variable Interest Entities (VIE) | ILICO Closed Block and life benefits | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (897) | (1,026) |
Total realized and unrealized gains (losses), Included in income | 103 | 129 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | (794) | (897) |
Total gains (losses) included in earnings | 0 | 0 |
Derivative liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (7) | (8) |
Total realized and unrealized gains (losses), Included in income | 0 | 1 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Other | 0 | 0 |
Ending Balance | (7) | (7) |
Total gains (losses) included in earnings | $ 0 | $ 0 |
Fair Value - Gross Components of Purchases, Sales, Issuances and Settlements, net (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | $ 0 | $ 0 |
Sales | 0 | 0 |
Settlements | (4) | (4) |
Purchases, (Sales), Issuances, (Settlements) | (4) | (4) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 609 | 1,132 |
Sales | (194) | (87) |
Settlements | (1,320) | (453) |
Purchases, (Sales), Issuances, (Settlements) | (905) | 592 |
Purchases | 0 | 0 |
Issuances | (641) | (341) |
Sales | 0 | 0 |
Settlements | 146 | 143 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (495) | (198) |
Fixed Maturity Securities | Foreign governments | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | 0 | |
Settlements | (2) | |
Purchases, (Sales), Issuances, (Settlements) | (2) | 0 |
Fixed Maturity Securities | U.S. state, municipal and political subdivisions | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | 0 | |
Settlements | (35) | |
Purchases, (Sales), Issuances, (Settlements) | 0 | (35) |
Fixed Maturity Securities | U.S. state, municipal and political subdivisions | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Fixed Maturity Securities | Corporate | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 95 | 311 |
Sales | (68) | 0 |
Settlements | (63) | (81) |
Purchases, (Sales), Issuances, (Settlements) | (36) | 230 |
Fixed Maturity Securities | Corporate | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | 0 | |
Settlements | (4) | |
Purchases, (Sales), Issuances, (Settlements) | (4) | 0 |
Fixed Maturity Securities | CLO | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 24 | 112 |
Sales | (29) | 0 |
Settlements | (41) | 0 |
Purchases, (Sales), Issuances, (Settlements) | (46) | 112 |
Fixed Maturity Securities | CLO | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 4 | 26 |
Sales | (67) | (20) |
Settlements | 0 | (28) |
Purchases, (Sales), Issuances, (Settlements) | (63) | (22) |
Fixed Maturity Securities | ABS | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 261 | 367 |
Sales | 0 | (15) |
Settlements | (896) | (131) |
Purchases, (Sales), Issuances, (Settlements) | (635) | 221 |
Fixed Maturity Securities | ABS | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 100 | |
Sales | 0 | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 0 | 100 |
Fixed Maturity Securities | CMBS | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 40 | 25 |
Sales | 0 | (1) |
Settlements | (1) | (1) |
Purchases, (Sales), Issuances, (Settlements) | 39 | 23 |
Fixed Maturity Securities | RMBS | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 8 | 91 |
Sales | 0 | 0 |
Settlements | (305) | (138) |
Purchases, (Sales), Issuances, (Settlements) | (297) | (47) |
Fixed Maturity Securities | RMBS | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 144 | 30 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 144 | 30 |
Equity Securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 10 |
Sales | (4) | 0 |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (4) | 10 |
Interest sensitive contract liabilities | Embedded derivatives | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 0 |
Issuances | (641) | (341) |
Sales | 0 | 0 |
Settlements | 146 | 143 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (495) | (198) |
Related Party | CLO | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 33 | 51 |
Sales | (26) | (49) |
Settlements | 0 | (24) |
Purchases, (Sales), Issuances, (Settlements) | 7 | (22) |
Related Party | Fixed Maturity Securities | CLO | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 9 | |
Sales | (2) | |
Settlements | (6) | |
Purchases, (Sales), Issuances, (Settlements) | 0 | 1 |
Related Party | Fixed Maturity Securities | ABS | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (4) | (5) |
Purchases, (Sales), Issuances, (Settlements) | $ (4) | $ (5) |
Fair Value - Summary of Unobservable Inputs for the Embedded Derivatives of Interest Sensitive Contract Liabilities (Details) - Interest Sensitive Contract Liabilities - Embedded Derivatives - Level 3 - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total liabilities measured at fair value | $ 5,283 | $ 4,464 |
Income Approach Valuation Technique | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Non-performance risk | 0.70% | 0.60% |
Option budget | 0.80% | 0.80% |
Surrender rate | 0.00% | 0.00% |
Income Approach Valuation Technique | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Non-performance risk | 1.50% | 1.80% |
Option budget | 3.80% | 3.80% |
Surrender rate | 16.30% | 10.70% |
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets | ||
Mortgage loans | $ 5,470 | $ 5,500 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Assets | ||
Mortgage loans | 5,470 | 5,500 |
Policy loans | 602 | 642 |
Funds withheld at interest | 6,538 | 3,482 |
Other investments | 81 | 83 |
Short-term investments | 189 | 135 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Carrying Value | ||
Assets | ||
Investment funds | 590 | 581 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Fair Value | ||
Assets | ||
Mortgage loans | 44 | 48 |
Investment funds | 590 | 581 |
Funds withheld at interest | 140 | 36 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Level 3 | Carrying Value | ||
Assets | ||
Mortgage loans | 5,426 | 5,452 |
Funds withheld at interest | 6,398 | 3,446 |
Other investments | 81 | 83 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Level 3 | Fair Value | ||
Assets | ||
Mortgage loans | 5,560 | 5,567 |
Funds withheld at interest | 6,398 | 3,446 |
Other investments | 81 | 83 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Level 2 | Carrying Value | ||
Assets | ||
Policy loans | 602 | 642 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Level 2 | Fair Value | ||
Assets | ||
Policy loans | 602 | 642 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Liabilities | ||
Interest sensitive contract liabilities | 61,532 | 57,289 |
Funds withheld liability | 380 | 388 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Carrying Value | ||
Assets | ||
Total assets not carried at fair value | 14,532 | 11,501 |
Liabilities | ||
Total liabilities not carried at fair value | 28,002 | 24,006 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | ||
Assets | ||
Total assets not carried at fair value | 14,691 | 11,627 |
Liabilities | ||
Interest sensitive contract liabilities | 6,574 | 6,346 |
Funds withheld liability | 6 | 35 |
Total liabilities not carried at fair value | 27,304 | 23,324 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Carrying Value | ||
Liabilities | ||
Interest sensitive contract liabilities | 27,628 | 23,653 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Fair Value | ||
Liabilities | ||
Interest sensitive contract liabilities | 26,930 | 22,971 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Carrying Value | ||
Liabilities | ||
Funds withheld liability | 374 | 353 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Fair Value | ||
Liabilities | ||
Funds withheld liability | 374 | 353 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Other investments | 237 | 245 |
Short-term investments | 0 | 55 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Carrying Value | ||
Assets | ||
Investment funds | 1,198 | 997 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Fair Value | ||
Assets | ||
Investment funds | 1,198 | 997 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 3 | Carrying Value | ||
Assets | ||
Other investments | 237 | 245 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 3 | Fair Value | ||
Assets | ||
Other investments | 262 | 256 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 2 | Carrying Value | ||
Assets | ||
Short-term investments | 0 | 55 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 2 | Fair Value | ||
Assets | ||
Short-term investments | $ 0 | $ 55 |
Fair Value - Narrative (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Level 1 to Level 2 transfers | $ 0 | $ 0 |
Assets, Level 2 to Level 1 transfers | 0 | 0 |
Liabilities, Level 1 to Level 2 transfers | 0 | 0 |
Liabilities, Level 2 to Level 1 transfers | $ 0 | 0 |
Fixed Maturity Securities | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 4.00% | |
Fixed Maturity Securities | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 8.00% | |
Future Policy Benefits | AmerUs Closed Block | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Target surplus, percentage of statutory reserves | 3.85% | |
Future Policy Benefits | ILICO Closed Block and Life Benefits | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cost of capital assumption, percentage of required capital | 9.00% | |
Discount rate, margin | 9.42% | |
Discount rate, non-performance risk | 0.26% | |
Interest Sensitive Contract Liabilities | Universal Life | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Risk margin | 0.09% | |
Mortgage Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value option, loans, 90 days or more past due | $ 0 | $ 0 |
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - Delta Lloyd Deutschland $ in Millions |
Oct. 01, 2015
USD ($)
|
---|---|
Business Combination, Recognized Identifiable Assets Acquired | |
Investments | $ 5,539 |
Cash and cash equivalents | 236 |
Accrued investment income | 67 |
Reinsurance recoverable | 4 |
Other assets | 83 |
Total identifiable assets acquired | 5,929 |
Business Combination, Recognized Identifiable Liabilities Assumed | |
Interest sensitive contract liabilities | 403 |
Future policy benefits | 4,519 |
Other policy claims and benefits | 55 |
Dividends payable to policyholders | 771 |
Other liabilities | 107 |
Total identifiable liabilities assumed | 5,855 |
Net assets acquired | $ 74 |
Business Combinations - Pro Forma (Details) - Delta Lloyd Deutschland - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Pro Forma Information | ||
Revenue | $ 3,004 | $ 4,623 |
Net income | $ 579 | $ 466 |
Business Combinations - Narrative (Details) - Delta Lloyd Deutschland - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Oct. 01, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Business Acquisition [Line Items] | |||
Percent of company acquired | 100.00% | ||
Acquired intercompany loans | $ 50 | ||
Cash purchase price | $ 74 | ||
Revenue of the acquiree | $ 129 | ||
Net income of the acquiree | 6 | ||
Transaction costs | $ 15 | $ 7 |
Reinsurance - Summary of Reinsuance Effect on the Statements of Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Premiums | |||
Direct | $ 448 | $ 445 | $ 387 |
Reinsurance assumed | 20 | 24 | 28 |
Reinsurance ceded | (228) | (274) | (315) |
Net amount | 240 | 195 | 100 |
Future policy and other policy benefits | |||
Direct | 1,434 | 1,030 | 1,311 |
Reinsurance assumed | 82 | 42 | (121) |
Reinsurance ceded | (457) | (554) | (490) |
Total future policy and other policy benefits | $ 1,059 | $ 518 | $ 700 |
Reinsurance - Summary of Novation (Details) - Global Atlantic - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Schedule of Novated Balances [Line Items] | ||
Decrease to interest sensitive contract liabilities | $ 1,006 | $ 4,179 |
Decrease to future policy benefits | 188 | 67 |
Decrease to policy loans | 33 | 129 |
Decrease to reinsurance recoverable | $ 1,161 | $ 4,117 |
Reinsurance - Summary of Reinsurance Recoverable (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | $ 6,001 | $ 7,257 |
Global Atlantic | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | 3,914 | 5,090 |
Protective Life | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | 1,723 | 1,760 |
Other Reinsurer | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | $ 364 | $ 407 |
Reinsurance - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Assets held in trust for reinsurance | $ 1,148 | $ 1,314 | |
Global Atlantic | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Decrease to funds withheld liability | $ 930 | ||
Assets held in trust for reinsurance | 4,122 | 4,614 | |
Protective Life | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Assets held in trust for reinsurance | $ 1,664 | $ 1,616 |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired - Roll Forward of DAC, DSI, and VOBA (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
DAC | |||
Beginning balance | $ 705 | $ 424 | $ 210 |
Additions | 601 | 288 | 250 |
Unlocking | (12) | (6) | 2 |
Amortization | (114) | (35) | (21) |
Impact of unrealized investment (gains) losses | (38) | 34 | (17) |
Ending balance | 1,142 | 705 | 424 |
DSI | |||
Beginning balance | 320 | 188 | 91 |
Additions | 200 | 136 | 113 |
Unlocking | (3) | (2) | 6 |
Amortization | (36) | (19) | (10) |
Impact of unrealized investment (gains) losses | (19) | 17 | (12) |
Ending balance | 462 | 320 | 188 |
VOBA | |||
Beginning balance | 1,627 | 1,610 | 1,832 |
Additions | 0 | 0 | 0 |
Unlocking | (23) | (27) | 28 |
Amortization | (169) | (138) | (133) |
Impact of unrealized investment (gains) losses | (99) | 182 | (117) |
Ending balance | 1,336 | 1,627 | 1,610 |
Total | |||
Beginning balance | 2,652 | 2,222 | 2,133 |
Additions | 801 | 424 | 363 |
Unlocking | (38) | (35) | 36 |
Amortization | (319) | (192) | (164) |
Impact of unrealized investment (gains) losses | (156) | 233 | (146) |
Ending balance | $ 2,940 | $ 2,652 | $ 2,222 |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired - Expected Amortization of VOBA (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Expected Amortization of VOBA | |
2017 | $ 139 |
2018 | 128 |
2019 | 114 |
2020 | 105 |
2021 | $ 96 |
Closed Block - Closed Block of Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Liabilities | ||
Future policy benefits | $ 1,607 | $ 1,581 |
Other policy claims and benefits | 25 | 12 |
Dividends payable to policyholders | 96 | 94 |
Other liabilities | 23 | 10 |
Total liabilities | 1,751 | 1,697 |
Assets | ||
Trading securities | 1,380 | 1,316 |
Mortgage loans, net of allowances | 44 | 48 |
Policy loans | 183 | 181 |
Total investments | 1,607 | 1,545 |
Cash and cash equivalents | 23 | 45 |
Accrued investment income | 27 | 18 |
Reinsurance recoverable | 29 | 22 |
Other assets | 1 | 3 |
Total assets | 1,687 | 1,633 |
Maximum future earnings to be recognized from AmerUs Closed Block | $ 64 | $ 64 |
Closed Block - Results of Operations (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues | |||
Premiums | $ 24 | $ 58 | $ 64 |
Net investment income | 84 | 86 | 86 |
Investment related gains (losses) | 42 | (124) | 110 |
Total revenues | 150 | 20 | 260 |
Benefits and Expenses | |||
Future policy and other policy benefits | 107 | (24) | 212 |
Dividends to policyholders | 40 | 45 | 45 |
Total benefits and expenses | 147 | 21 | 257 |
Contribution from (to) AmerUs Closed Block before income taxes | 3 | (1) | 3 |
Federal income taxes funded by the Closed Block | 3 | 1 | 6 |
Contribution to AmerUs Closed Block, net of income taxes | $ 0 | $ (2) | $ (3) |
Debt (Details) - Line of Credit - Revolving Credit Agreement |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Line of Credit Facility [Line Items] | |
Debt instrument term | 5 years |
Maximum borrowing capacity | $ 1,000,000,000 |
Covenant terms, maximum consolidated debt to capitalization ratio | 35.00% |
Covenant terms, consolidated net worth requirement, percentage of net worth on date of requirement | $ 3,700,000,000 |
Covenant terms, consolidated net worth requirement, percentage of cash received from subsequent equity issuances | 50.00% |
Amounts outstanding | $ 0 |
Commitment fee percentage | 0.225% |
Minimum | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.15% |
Maximum | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.50% |
Common Stock - Changes in Common Stock During the Period (Details) - shares |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 14, 2016 |
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Common Class A | |||||
Increase (Decrease) in Shares Outstanding | |||||
Beginning balance (in shares) | 50,151,265 | 15,752,736 | 494,200 | ||
Issued shares (in shares) | 3,098,946 | 3,360,471 | 34,498,220 | 11,950,844 | |
Forfeited shares (in shares) | (37,188) | 0 | 0 | ||
Repurchased shares (in shares) | (313,313) | (99,691) | 0 | ||
Converted shares (in shares) | 24,158,146 | 24,158,146 | 0 | 3,307,692 | |
Ending balance (in shares) | 77,319,381.000000 | 77,319,381.000000 | 50,151,265 | 15,752,736 | |
Common Class B | |||||
Increase (Decrease) in Shares Outstanding | |||||
Beginning balance (in shares) | 135,963,975.000000 | 125,282,892 | 114,605,747 | ||
Issued shares (in shares) | 0 | 10,681,083 | 16,981,664 | ||
Repurchased shares (in shares) | 0 | 0 | (2,996,827) | ||
Converted shares (in shares) | (24,158,146) | (24,158,146) | 0 | (3,307,692) | |
Ending balance (in shares) | 111,805,829 | 111,805,829 | 135,963,975.000000 | 125,282,892 | |
Common Class M-1 | |||||
Increase (Decrease) in Shares Outstanding | |||||
Beginning balance (in shares) | 5,198,273.000000 | 5,198,273 | 5,198,273 | ||
Forfeited shares (in shares) | (270,543) | 0 | 0 | ||
Repurchased shares (in shares) | (298,222) | 0 | 0 | ||
Converted shares (in shares) | (1,155,303) | 0 | 0 | ||
Ending balance (in shares) | 3,474,205 | 3,474,205 | 5,198,273.000000 | 5,198,273 | |
Common Class M-2 | |||||
Increase (Decrease) in Shares Outstanding | |||||
Beginning balance (in shares) | 3,125,869 | 3,125,869 | 3,226,792 | ||
Forfeited shares (in shares) | (161,474) | 0 | (80,738) | ||
Repurchased shares (in shares) | (107,650) | 0 | (20,185) | ||
Converted shares (in shares) | (1,788,998) | 0 | 0 | ||
Ending balance (in shares) | 1,067,747 | 1,067,747 | 3,125,869 | 3,125,869 | |
Common Class M-3 | |||||
Increase (Decrease) in Shares Outstanding | |||||
Beginning balance (in shares) | 3,110,000.00 | 3,350,000 | 0 | ||
Issued shares (in shares) | 0 | 0 | 3,390,000 | ||
Forfeited shares (in shares) | (224,000) | (216,000) | (32,000) | ||
Repurchased shares (in shares) | (96,000) | (24,000) | (8,000) | ||
Converted shares (in shares) | (1,443,700) | 0 | 0 | ||
Ending balance (in shares) | 1,346,300 | 1,346,300 | 3,110,000.00 | 3,350,000 | |
Common Class M-4 | |||||
Increase (Decrease) in Shares Outstanding | |||||
Beginning balance (in shares) | 5,038,443 | 0 | 0 | ||
Issued shares (in shares) | 990,650 | 5,316,751 | 0 | ||
Forfeited shares (in shares) | (452,528) | (242,050) | 0 | ||
Repurchased shares (in shares) | (99,732) | (36,258) | 0 | ||
Converted shares (in shares) | (79,031) | 0 | 0 | ||
Ending balance (in shares) | 5,397,802 | 5,397,802 | 5,038,443 | 0 |
Common Stock - Narrative (Details) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Dec. 14, 2016
shares
|
Apr. 30, 2014
$ / shares
shares
|
Dec. 31, 2016
$ / shares
shares
|
Dec. 31, 2016
class_stock
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2014
incentive_class
$ / shares
shares
|
Dec. 31, 2013
shares
|
|
Class of Stock [Line Items] | |||||||
Number of classes of common stock | class_stock | 6 | ||||||
Maximum voting rights per investor, percentage of total | 9.90% | ||||||
Maximum voting rights per Apollo Shareholder Group, percentage of total | 3.00% | ||||||
Shares sold by existing shareholders through IPO | 31,050,000 | ||||||
Conversion of stock, conversion ratio | 1 | ||||||
Shares committed for purchase (in shares) | 39,945,877 | ||||||
Percent drawdown on committed capital | 20.00% | ||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.001 | ||||||
Additional shares authorized (in shares) | 149,998,898 | ||||||
Number of new classes of incentive compensation authorized | incentive_class | 2 | ||||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Voting rights, percentage of total | 55.00% | ||||||
Shares issued from conversion (in shares) | (24,158,146) | (24,158,146) | 0 | (3,307,692) | |||
Issued shares (in shares) | 3,098,946 | 3,360,471 | 34,498,220 | 11,950,844 | |||
Shares committed for purchase (in shares) | 41,201,578 | ||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001000000 | $ 0.001 | |||
Additional shares authorized (in shares) | 87,110,662 | ||||||
Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Voting rights, percentage of total | 45.00% | ||||||
Shares issued from conversion (in shares) | 24,158,146 | 24,158,146 | 0 | 3,307,692 | |||
Issued shares (in shares) | 0 | 10,681,083 | 16,981,664 | ||||
Shares committed for purchase (in shares) | 8,730,769 | ||||||
Common stock, par value (in USD per share) | $ / shares | 0.001000000 | $ 0.001000000 | $ 0.001000000 | $ 0.001 | |||
Additional shares authorized (in shares) | 175,000,000 | ||||||
Common Class M-3 | |||||||
Class of Stock [Line Items] | |||||||
Shares issued from conversion (in shares) | 1,443,700 | 0 | 0 | ||||
Issued shares (in shares) | 0 | 0 | 3,390,000 | ||||
Common stock, par value (in USD per share) | $ / shares | 0.001000000 | $ 0.001000000 | $ 0.001000000 | $ 0.001 | |||
Additional shares authorized (in shares) | 7,500,000 | ||||||
Common Class M-4 | |||||||
Class of Stock [Line Items] | |||||||
Shares issued from conversion (in shares) | 79,031 | 0 | 0 | ||||
Issued shares (in shares) | 990,650 | 5,316,751 | 0 | ||||
Common stock, par value (in USD per share) | $ / shares | $ 0.001000000 | $ 0.001000000 | $ 0.001000000 | $ 0.001 | |||
Additional shares authorized (in shares) | 7,500,000 | ||||||
Second Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ | $ 60 | ||||||
Second Private Placement | Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Issued shares (in shares) | 2,315,113 | ||||||
Price per share issued (in dollars per share) | $ / shares | $ 26.02 | ||||||
Employee Stock | |||||||
Class of Stock [Line Items] | |||||||
Price per share issued (in dollars per share) | $ / shares | $ 13.46 | ||||||
Employee Stock | Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Issued shares (in shares) | 3,693,730 | ||||||
Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ | $ 1,038 | ||||||
Private Placement | Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Issued shares (in shares) | 8,240,316 | 31,564,339 | |||||
Price per share issued (in dollars per share) | $ / shares | $ 26.00 | ||||||
Private Placement | Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Issued shares (in shares) | 1,746,154 | 8,369,230 | |||||
Price per share issued (in dollars per share) | $ / shares | $ 26.00 | $ 26.00 | |||||
Repayment of the Contribution Agreement Promissory Note [Member] | Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Shares issued from conversion (in shares) | (3,808,626) | ||||||
Related Party | Transaction Advisory Services Agreement | Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Issued shares (in shares) | 2,311,853 | 11,426,883 |
Stock-based Compensation - LTIP Stock Options Activity (Details) - Common Class A $ / shares in Units, $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
$ / shares
shares
| |
Options | |
Outstanding at beginning of period (shares) | shares | 0 |
Granted (shares) | shares | 470,644 |
Outstanding at end of period (shares) | shares | 470,644 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 0.00 |
Granted (in dollars per share) | $ / shares | 33.95 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 33.95 |
Vested and Expected to Vest | |
Options (shares) | shares | 462,643 |
Weighted average conversion price (in dollars per share) | $ / shares | $ 33.95 |
Aggregate intrinsic value | $ | $ 6 |
Stock-based Compensation - LTIP Valuation Assumptions (Details) - Common Class A |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.00% |
Dividend yield | 0.00% |
Expected volatility | 25.00% |
Expected term | 2 years 7 months 18 days |
Stock-based Compensation - LTIP RSUs Nonvested Award Activity (Details) - Restricted Stock Units (RSUs) |
12 Months Ended |
---|---|
Dec. 31, 2016
$ / shares
shares
| |
RSU | |
Nonvested at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 329,159 |
Forfeited (in shares) | shares | (1,032) |
Nonvested at end of period (in shares) | shares | 328,127 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 0.00 |
Granted (in dollars per share) | $ / shares | 33.95 |
Forfeited (in dollars per share) | $ / shares | 33.95 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 33.95 |
Stock-based Compensation - M Share Valuation Assumptions (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share value (in dollars per share) | $ 32.9 | $ 34.23 | $ 26.02 |
Risk-free interest rate | 1.00% | ||
Dividend yield | 0.00% | ||
Expected volatility | 25.00% | ||
Expected term | 2 years 7 months 18 days | ||
Class M | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.50% | 0.90% | |
Risk-free interest rate, maximum | 1.80% | 1.10% | |
Risk-free interest rate | 0.60% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 30.00% | 25.90% | 17.50% |
Expected term | 3 years | 2 years 5 months | 2 years 4 months 20 days |
Stock-based Compensation - M Share Award Activity Rollforward (Details) - Class M - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Class M Shares | |||
Outstanding at beginning of period (shares) | 15,959,724 | ||
Granted (shares) | 969,900 | ||
Converted (shares) | (4,467,032) | 0 | 0 |
Forfeited (shares) | (1,064,528) | ||
Repurchased (shares) | (581,647) | ||
Outstanding at end of period (shares) | 10,816,417 | 15,959,724 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 15.71 | ||
Granted (in dollars per share) | 33.90 | ||
Converted (in dollars per share) | 11.71 | ||
Forfeited (in dollars per share) | 17.09 | ||
Repurchased (in dollars per share) | 12.95 | ||
Outstanding at end of period (in dollars per share) | $ 19.00 | $ 15.71 | |
Vested and Expected to Vest | |||
Class M shares, convertible (shares) | 0 | ||
Tranche 1 | |||
Class M Shares | |||
Outstanding at beginning of period (shares) | 6,815,504 | ||
Granted (shares) | 323,297 | ||
Converted (shares) | (1,993,576) | ||
Forfeited (shares) | (230,655) | ||
Repurchased (shares) | (445,985) | ||
Outstanding at end of period (shares) | 4,468,585 | 6,815,504 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 15.44 | ||
Granted (in dollars per share) | 33.90 | ||
Converted (in dollars per share) | 12.03 | ||
Forfeited (in dollars per share) | 19.58 | ||
Repurchased (in dollars per share) | 13.56 | ||
Outstanding at end of period (in dollars per share) | $ 18.27 | $ 15.44 | |
Vested and Expected to Vest | |||
Class M shares (shares) | 4,437,356 | ||
Weighted average conversion price (in dollars per share) | $ 18.22 | ||
Aggregate intrinsic value | $ 132 | ||
Class M shares, convertible (shares) | 2,631,542 | ||
Weighted average conversion price, convertible (in dollars per share) | $ 12.97 | ||
Aggregate intrinsic value, convertible | $ 92 | ||
Tranche 2 | |||
Class M Shares | |||
Outstanding at beginning of period (shares) | 9,144,220 | ||
Granted (shares) | 646,603 | ||
Converted (shares) | (2,473,456) | ||
Forfeited (shares) | (833,873) | ||
Repurchased (shares) | (135,662) | ||
Outstanding at end of period (shares) | 6,347,832 | 9,144,220 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 15.91 | ||
Granted (in dollars per share) | 33.90 | ||
Converted (in dollars per share) | 11.46 | ||
Forfeited (in dollars per share) | 16.40 | ||
Repurchased (in dollars per share) | 10.95 | ||
Outstanding at end of period (in dollars per share) | $ 19.52 | $ 15.91 | |
Vested and Expected to Vest | |||
Class M shares (shares) | 6,297,187 | ||
Weighted average conversion price (in dollars per share) | $ 19.45 | ||
Aggregate intrinsic value | $ 180 | ||
Class M shares, convertible (shares) | 3,307,697 | ||
Weighted average conversion price, convertible (in dollars per share) | $ 10.93 | ||
Aggregate intrinsic value, convertible | $ 123 |
Stock-based Compensation - M Share Nonvested Award Activity (Details) - Class M - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Class M Shares | |||
Nonvested at the beginning of the year (shares) | 10,697,845 | ||
Granted (shares) | 969,900 | ||
Vested (shares) | (5,726,039) | ||
Forfeited (shares) | (1,064,528) | ||
Nonvested at the end of the year (shares) | 4,877,178 | 10,697,845 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the year (in dollars per share) | $ 5.59 | ||
Granted (in dollars per share) | 10.43 | $ 8.66 | $ 9.31 |
Vested (in dollars per share) | 2.87 | ||
Forfeited (in dollars per share) | 2.89 | ||
Nonvested at the end of the year (in dollars per share) | $ 10.34 | $ 5.59 | |
Tranche 1 | |||
Class M Shares | |||
Nonvested at the beginning of the year (shares) | 2,661,291 | ||
Granted (shares) | 323,297 | ||
Vested (shares) | (916,890) | ||
Forfeited (shares) | (230,655) | ||
Nonvested at the end of the year (shares) | 1,837,043 | 2,661,291 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the year (in dollars per share) | $ 7.74 | ||
Granted (in dollars per share) | 8.45 | ||
Vested (in dollars per share) | 6.67 | ||
Forfeited (in dollars per share) | 5.62 | ||
Nonvested at the end of the year (in dollars per share) | $ 8.67 | $ 7.74 | |
Tranche 2 | |||
Class M Shares | |||
Nonvested at the beginning of the year (shares) | 8,036,554 | ||
Granted (shares) | 646,603 | ||
Vested (shares) | (4,809,149) | ||
Forfeited (shares) | (833,873) | ||
Nonvested at the end of the year (shares) | 3,040,135 | 8,036,554 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the year (in dollars per share) | $ 4.88 | ||
Granted (in dollars per share) | 11.42 | ||
Vested (in dollars per share) | 2.14 | ||
Forfeited (in dollars per share) | 2.14 | ||
Nonvested at the end of the year (in dollars per share) | $ 11.36 | $ 4.88 |
Stock-based Compensation - Stock Compensation Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 84 | $ 67 | $ 148 |
Class A common shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2 | 5 | 47 |
Tranche 1 | Class M | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 11 | 12 | 54 |
Tranche 2 | Class M | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 69 | 50 | 47 |
Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 2 | $ 0 | $ 0 |
Stock-based Compensation - Narrative (Details) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
individual
|
Apr. 30, 2014
USD ($)
shares
|
Dec. 31, 2016
USD ($)
award_type
$ / shares
shares
|
Dec. 31, 2016
USD ($)
award_type
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2014
USD ($)
individual
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock-based compensation categories | award_type | 3 | 3 | ||||
Increase to additional paid-in capital, stock-based compensation | $ | $ 153 | $ 17 | $ 116 | |||
Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, options (in dollars per share) | $ / shares | $ 5.83 | |||||
Exercisable stock options (in shares) | 0 | 0 | ||||
Issued shares (in shares) | 3,098,946 | 3,360,471 | 34,498,220 | 11,950,844 | ||
Class M | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, options (in dollars per share) | $ / shares | $ 10.43 | $ 8.66 | $ 9.31 | |||
Performance criteria, period following sale of shares prior to or during an IPO | 15 months | |||||
Performance criteria, period following initial public offering, period one | 7 years 6 months | |||||
Performance criteria, period following initial public offering, period two | 12 months | |||||
Performance criteria, period following initial public offering, period three | 15 months | |||||
Performance criteria, trading days used to determine vesting | 90 days | |||||
Converted (shares) | (4,467,032) | 0 | 0 | |||
Class M shares, convertible (shares) | 0 | 0 | ||||
Intrinsic value of shares converted | $ | $ 117 | |||||
Cash paid to settle awards | $ | $ 14 | |||||
Class M | Tranche 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, options (in dollars per share) | $ / shares | $ 11.42 | |||||
Eligible award vesting period following termination | 18 months | |||||
Fair value of vested awards | $ | $ 122 | $ 28 | $ 17 | |||
Converted (shares) | (2,473,456) | |||||
Class M shares, convertible (shares) | 3,307,697 | 3,307,697 | ||||
Unrecognized compensation expense, period to be recognized | 1 year 1 month | |||||
Unrecognized compensation expense | $ | $ 24 | $ 24 | ||||
Class M | Tranche 1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, options (in dollars per share) | $ / shares | $ 8.45 | |||||
Eligible award vesting period following termination | 6 months | |||||
Fair value of vested awards | $ | $ 92 | $ 98 | $ 49 | |||
Converted (shares) | (1,993,576) | |||||
Class M shares, convertible (shares) | 2,631,542 | 2,631,542 | ||||
Unrecognized compensation expense, period to be recognized | 1 year 7 months | |||||
Unrecognized compensation expense | $ | $ 16 | $ 16 | ||||
Class M | Tranche One, Period One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 20.00% | |||||
Class M | Tranche One, Period Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 20.00% | |||||
Class M | Tranche One, Period Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 20.00% | |||||
Class M | Tranche One, Period Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 20.00% | |||||
Class M | Tranche One, Period Five | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 20.00% | |||||
Class M | Minimum | Tranche 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 0.00% | |||||
Class M | Maximum | Tranche 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights | 100.00% | |||||
Common Class M-4 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period following an IPO | 5 years 3 months | |||||
Issued shares (in shares) | 990,650 | 5,316,751 | 0 | |||
Common Class B | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issued shares (in shares) | 0 | 10,681,083 | 16,981,664 | |||
Performance-based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted Stock | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Shares issued during period, other than options (in shares) | 238,972 | 160,754 | ||||
Weighted average grant date fair value, awards other than options (in dollars per share) | $ / shares | $ 33.41 | $ 33.41 | $ 26.02 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards vested in period (in shares) | 0 | |||||
Shares issued during period, other than options (in shares) | 329,159 | |||||
Weighted average grant date fair value, awards other than options (in dollars per share) | $ / shares | $ 33.95 | $ 33.95 | $ 0.00 | |||
2016 Share Incentive Plan | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance | 3,500,000 | 3,500,000 | ||||
2014 Modification | Class M | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of individuals affected by plan modification | individual | 29 | |||||
Incremental stock-based compensation expense | $ | $ 81 | |||||
2016 Modification | Class M | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of individuals affected by plan modification | individual | 27 | |||||
Incremental stock-based compensation expense | $ | $ 42 | |||||
Increase to additional paid-in capital, stock-based compensation | $ | $ 83 | |||||
2014 Plan | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued in period (in shares) | 3,693,730 | 442,590 | ||||
Proceeds from issuance of common stock | $ | $ 50 | $ 12 | ||||
Compensation cost associated with shares purchased at discount | $ | $ 2 | $ 46 | ||||
Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense, period to be recognized | 1 year 1 month | |||||
Unrecognized compensation expense | $ | $ 4 | $ 4 | ||||
Shares Issued in Satisfaction of Settlement Amounts Under Transaction Advisory Services Agreement | Common Class B | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issued shares (in shares) | 6,184,948 | |||||
Shares Issued in Settlement of Equity Swap Transaction Under Transaction Advisory Services Agreement | Common Class B | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issued shares (in shares) | 5,241,935 |
Earnings Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 364 | $ 126 | $ 193 | $ 85 | $ 243 | $ 76 | $ 101 | $ 142 | $ 768 | $ 562 | $ 456 | |||||
Common Class A and B | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 562 | $ 456 | ||||||||||||||
Basic weighted average shares outstanding (in shares) | 175,091,802 | 129,519,108 | ||||||||||||||
Dilutive effect of stock compensation plans (in shares) | 86,846 | 11 | ||||||||||||||
Dilutive effect of equity swap (in shares) | 0 | 2,089,345 | ||||||||||||||
Diluted weighted average shares outstanding (in shares) | 175,178,648 | 131,608,464 | ||||||||||||||
Common Class A | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | 214 | |||||||||||||||
Effect of stock compensation plans on allocated net income | 1 | |||||||||||||||
Net income available to AHL shareholders – diluted | $ 215 | |||||||||||||||
Basic weighted average shares outstanding (in shares) | 52,086,945 | |||||||||||||||
Dilutive effect of stock compensation plans (in shares) | 1,443,531 | |||||||||||||||
Diluted weighted average shares outstanding (in shares) | 53,530,476 | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic (in USD per share) | $ 1.92 | $ 0.68 | $ 1.04 | $ 0.46 | $ 1.31 | $ 0.41 | $ 0.54 | $ 0.99 | $ 4.11 | [1] | $ 3.21 | [1] | $ 3.52 | [1] | ||
Diluted (in USD per share) | 1.78 | 0.68 | 1.04 | 0.46 | 1.31 | 0.41 | 0.54 | 0.99 | $ 4.02 | 3.21 | 3.47 | |||||
Common Class B | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 553 | |||||||||||||||
Effect of stock compensation plans on allocated net income | 0 | |||||||||||||||
Net income available to AHL shareholders – diluted | $ 553 | |||||||||||||||
Basic weighted average shares outstanding (in shares) | 134,445,840 | |||||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0 | |||||||||||||||
Diluted weighted average shares outstanding (in shares) | 134,445,840 | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic (in USD per share) | 1.94 | 0.85 | 1.03 | 0.47 | 1.30 | 0.39 | 0.56 | 1.01 | $ 4.11 | 3.21 | 3.52 | |||||
Diluted (in USD per share) | 1.92 | $ 0.68 | $ 1.04 | $ 0.46 | $ 1.31 | $ 0.41 | $ 0.54 | $ 0.99 | $ 4.11 | $ 3.21 | $ 3.47 | |||||
Common Class M-1 | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 1 | |||||||||||||||
Effect of stock compensation plans on allocated net income | 0 | |||||||||||||||
Net income available to AHL shareholders – diluted | $ 1 | |||||||||||||||
Basic weighted average shares outstanding (in shares) | 218,324 | |||||||||||||||
Dilutive effect of stock compensation plans (in shares) | 4,246,074 | |||||||||||||||
Diluted weighted average shares outstanding (in shares) | 4,464,398 | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic (in USD per share) | 1.94 | $ 4.11 | ||||||||||||||
Diluted (in USD per share) | $ 0.46 | $ 0.20 | [1] | |||||||||||||
|
Earnings Per Share - Narrative (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Shares excluded from dilutive shares outstanding due to restrictions (in shares) | 16,653,624 | 11,674,141 | |
Common Class A | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Shares excluded from dilutive shares outstanding (in shares) | 116,031,381 | ||
Antidilutive shares (in shares) | 113,497,613 | ||
Shares excluded from dilutive shares outstanding due to performance conditions (in shares) | 2,533,768 |
Accumulated Other Comprehensive Income - Detail of AOCI (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ 541 | $ (322) |
Deferred income tax asset (liability) | (174) | 85 |
Accumulated other comprehensive income (loss) | 367 | (237) |
AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 972 | (405) |
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (408) | 91 |
Noncredit component of OTTI losses on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (17) | (15) |
Hedging instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 10 | 15 |
Pension adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (4) | (4) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ (12) | $ (4) |
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax expense (benefit) | $ (259) | $ 424 | $ (317) |
Other comprehensive income (loss), after tax | 604 | (881) | 574 |
Unrealized gains (losses) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | 1,397 | (1,661) | 1,225 |
DAC, DSI, VOBA, and future policy benefit adjustment on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (499) | 419 | (317) |
Unrealized gains (losses) on AFS securities, including DAC, DSI, VOBA, and future policy benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustment for gains (losses) realized in net income | 20 | 72 | 9 |
Income tax expense (benefit) | 261 | (428) | 318 |
Other comprehensive income (loss), after tax | 617 | (886) | 581 |
Noncredit component of OTTI losses on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (9) | (13) | (1) |
Reclassification adjustment for gains (losses) realized in net income | (7) | (3) | 0 |
Income tax expense (benefit) | 0 | (4) | 1 |
Other comprehensive income (loss), after tax | (2) | (6) | (2) |
Unrealized gains (losses) on hedging instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (5) | 11 | 10 |
Income tax expense (benefit) | (2) | 4 | 4 |
Other comprehensive income (loss), after tax | (3) | 7 | 6 |
Pension adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | 0 | 12 | (17) |
Income tax expense (benefit) | 0 | 4 | (6) |
Other comprehensive income (loss), after tax | 0 | 8 | (11) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), after tax | $ (8) | $ (4) | $ 0 |
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Current | $ (33) | $ (19) | $ (84) |
Deferred | (19) | 31 | 137 |
Income tax expense (benefit) | $ (52) | $ 12 | $ 53 |
Income Taxes - Schedule of Income Before Income Tax (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Holiday [Line Items] | |||
Income before income taxes | $ 716 | $ 590 | $ 524 |
Domestic Tax Authority | Office of the Tax Commissioner, Bermuda | |||
Income Tax Holiday [Line Items] | |||
Income before income taxes | 565 | 508 | 263 |
Foreign Tax Authority | Federal Ministry of Finance, Germany | |||
Income Tax Holiday [Line Items] | |||
Income before income taxes | 16 | 8 | 0 |
Foreign Tax Authority | Internal Revenue Service (IRS) | |||
Income Tax Holiday [Line Items] | |||
Income before income taxes | $ 135 | $ 74 | $ 261 |
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Taxes [Line Items] | |||
Statutory tax rate | 35.00% | ||
Effective Income Tax Rate Reconciliation, Amount | |||
Expected tax provision computed on pre-tax income at weighted average income tax rate | $ 52 | $ 28 | $ 91 |
(Decrease) increase in income taxes resulting from: | |||
Deferred tax valuation allowance | (116) | (6) | (22) |
Prior year true-up | 8 | 2 | (12) |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | (7) | (7) | (6) |
Stock compensation expense | 5 | 0 | 0 |
State taxes and other | 6 | (5) | 2 |
Income tax expense (benefit) | $ (52) | $ 12 | $ 53 |
Effective tax rate | (7.00%) | 2.00% | 10.00% |
Office of the Tax Commissioner, Bermuda | Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Statutory tax rate | 0.00% | ||
Federal Ministry of Finance, Germany | Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Statutory tax rate | 31.23% | ||
Internal Revenue Service (IRS) | Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Statutory tax rate | 35.00% |
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (52) | $ 12 | $ 53 |
Income tax expense (benefit) from OCI | 259 | (424) | 317 |
Total income taxes | $ 207 | $ (412) | $ 370 |
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets | ||
Insurance liabilities | $ 1,483 | $ 1,354 |
Net unrealized losses on AFS | 0 | 84 |
Net operating and capital loss carryforwards | 221 | 170 |
Tax credits | 18 | 0 |
VOBA | 69 | 72 |
Employee benefits | 52 | 57 |
Other | 27 | 20 |
Total deferred tax assets | 1,870 | 1,757 |
Valuation allowance | (72) | (193) |
Deferred tax asset, after valuation allowance | 1,798 | 1,564 |
Deferred tax liabilities | ||
Investments, including derivatives | 668 | 429 |
Net unrealized gains on AFS | 178 | 0 |
VOBA | 346 | 375 |
DAC | 232 | 109 |
Other | 6 | 42 |
Total deferred tax liability | 1,430 | 955 |
Net deferred tax asset | $ 368 | $ 609 |
Income Taxes - Summary of Allowance Valuation (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Valuation Allowance [Line Items] | ||
Total valuation allowance | $ 72 | $ 193 |
U.S. federal and state net operating losses | ||
Valuation Allowance [Line Items] | ||
Total valuation allowance | 22 | 100 |
U.S. other deferred tax assets | ||
Valuation Allowance [Line Items] | ||
Total valuation allowance | 0 | 27 |
German other deferred tax assets | ||
Valuation Allowance [Line Items] | ||
Total valuation allowance | $ 50 | $ 66 |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 632 | |
Valuation Allowance, Operating Loss Carryforwards | ||
Valuation Allowance [Line Items] | ||
Valuation allowance released | $ 102 |
Statutory Requirements - Narrative (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statutory Accounting Practices [Line Items] | ||
Reinsurance reserve credit | $ 91,000,000 | |
ALRe | Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Minimum solvency margin required | $ 8,000,000 | |
Minimum solvency margin, percentage of assets threshold | 2.00% | |
Minimum solvency margin, assets threshold | $ 500,000,000 | |
Minimum solvency margin, percentage of assets in excess of threshold | 1.50% | |
Minimum solvency margin | $ 798,000,000 | |
Enhanced capital requirement | 1,932,000,000 | |
Increase to capital and surplus from permitted practices | 1,254,000,000 | |
Decrease to statutory net income from permitted practices | (1,005,000,000) | |
Unrealized loss on securities, excluded from statutory returns | $ 162,000,000 | |
Amount available for dividends payments, without regulatory approval | 2,479,000,000 | 3,529,000,000 |
Statutory capital and surplus | 6,124,000,000 | 5,650,000,000 |
ALV | Germany | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 570,000,000 | 325,000,000 |
Solvency II minimum capital requirement | 121,000,000 | |
Solvency II solvency capital requirement | 268,000,000 | |
Solvency I required capital | 195,000,000 | |
Dividends available | 0 | |
AADE | Delaware | ||
Statutory Accounting Practices [Line Items] | ||
Amount available for dividends payments, without regulatory approval | 127,000,000 | 125,000,000 |
Statutory capital and surplus | 1,272,000,000 | 1,251,000,000 |
Dividends available | 80,000,000 | 65,000,000 |
AAIA | Iowa | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 1,113,000,000 | 1,109,000,000 |
Permitted practice, amount | (17,000,000) | 14,000,000 |
Athene Re USA IV | Vermont | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 50,000,000 | 38,000,000 |
Athene Re USA IV | Vermont | Letters of Credit | ||
Statutory Accounting Practices [Line Items] | ||
Permitted practice, amount | $ 153,000,000 | $ 153,000,000 |
Statutory Requirements - Statutory Capital and Surplus and Net Income (Loss) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Bermuda | ALRe | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | $ 6,124 | $ 5,650 | |
Statutory Net Income (Loss) | 460 | 461 | $ 632 |
Delaware | AADE | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 1,272 | 1,251 | |
Statutory Net Income (Loss) | 71 | 68 | 116 |
Delaware | ALIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 79 | 77 | |
Statutory Net Income (Loss) | 1 | 1 | 1 |
New York | AANY | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 231 | 208 | |
Statutory Net Income (Loss) | 1 | 8 | 7 |
New York | ALICNY | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 78 | 73 | |
Statutory Net Income (Loss) | 10 | 14 | 88 |
Iowa | AAIA | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 1,113 | 1,109 | |
Statutory Net Income (Loss) | 100 | 597 | 263 |
Iowa | STAR | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 80 | 76 | |
Statutory Net Income (Loss) | 17 | 4 | 35 |
Vermont | Athene Re USA IV | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital & Surplus | 50 | 38 | |
Statutory Net Income (Loss) | $ 7 | $ 1 | $ 6 |
Related Parties - Narrative (Details) - Related Party $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Oct. 30, 2012 |
Dec. 31, 2016
USD ($)
director
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Related Party Transaction [Line Items] | ||||
Number of directors on the conflicts committee | director | 3 | |||
Portfolio Management Agreement | ||||
Related Party Transaction [Line Items] | ||||
Termination notice period | 6 months | |||
Apollo Asset Management Europe sub-advisory agreement | ||||
Related Party Transaction [Line Items] | ||||
Management fee payable, percentage | 0.10% | |||
German Special Investment Fund Advisory Fee | ||||
Related Party Transaction [Line Items] | ||||
Investment portfolio assets managed by affiliates | $ 258 | |||
Management fee payable, percentage | 0.35% | |||
Apollo Capital Efficient Fund I Advisory Fee | ||||
Related Party Transaction [Line Items] | ||||
Investment portfolio assets managed by affiliates | $ 84 | |||
Management fee payable, percentage | 0.35% | |||
Pro rata share of operating expenses | 0.30% | |||
Management fees associated with investment funds | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 28 | $ 35 | ||
Expenses from transactions with related parties | 229 | 226 | $ 222 | |
Sub-advisory fees associated with investment funds management | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 11 | 24 | ||
Expenses from transactions with related parties | 66 | 42 | 36 | |
Transaction Advisory Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related parties | 228 | |||
Term of monitoring contract | 10 years | |||
Quarterly monitoring fee | 0.50% | |||
Athene Asset Management | Portfolio Management Agreement | ||||
Related Party Transaction [Line Items] | ||||
Investment portfolio assets managed by affiliates | $ 53,368 | |||
Investment portfolio assets, percentage rated at one or two by the NAIC | 84.00% | |||
Athene Asset Management | Service Fees | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related parties | $ 6 | $ 2 | $ (13) |
Related Parties - Summary of Assets Sub-Advised by Affiliates (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||
---|---|---|---|---|---|---|
Related Party Transaction [Line Items] | ||||||
Mortgage loans | $ 5,470 | $ 5,500 | ||||
Investment funds | 2,460 | 2,264 | ||||
Cash and cash equivalents | [1] | 2,459 | 2,720 | $ 2,671 | $ 3,035 | |
Total assets | 86,699 | 80,846 | $ 82,737 | |||
Apollo affiliates | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Mortgage loans | 1,767 | 1,594 | ||||
Investment funds | 23 | 21 | ||||
Trading securities | 126 | 207 | ||||
Funds withheld at interest | 1,682 | 1,182 | ||||
Other investments | 81 | 83 | ||||
Total assets | $ 12,478 | $ 11,755 | ||||
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets | 19.00% | 20.00% | ||||
Apollo affiliates | U.S. state, municipal and political subdivisions | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | $ 5 | $ 10 | ||||
Apollo affiliates | Foreign governments | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 149 | 107 | ||||
Apollo affiliates | Corporate | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 2,032 | 1,435 | ||||
Apollo affiliates | CLO | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 4,727 | 4,339 | ||||
Apollo affiliates | ABS | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 911 | 1,746 | ||||
Apollo affiliates | CMBS | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 975 | 1,010 | ||||
Apollo affiliates | RMBS | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 0 | 21 | ||||
Apollo Asset Management Europe | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Equity securities | 187 | 220 | ||||
Mortgage loans | 0 | 139 | ||||
Investment funds | 34 | 41 | ||||
Policy loans | 6 | 9 | ||||
Real estate | 541 | 566 | ||||
Other investments | 153 | 125 | ||||
Cash and cash equivalents | 25 | 0 | ||||
Total assets | 4,575 | 5,056 | ||||
Apollo Asset Management Europe | Foreign governments | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | 2,062 | 2,349 | ||||
Apollo Asset Management Europe | Corporate | Related party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Fixed maturity securities | $ 1,567 | $ 1,607 | ||||
|
Related Parties - Management Fees Incurred (Details) - Related party - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Asset management fees | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 229 | $ 226 | $ 222 |
Sub-advisory fees | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 66 | $ 42 | $ 36 |
Related Parties - Other Related Party Transactions (Details) - Related Party - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Purchase of Residential Mortgage Loans Under Agreement | |||
Related Party Transaction [Line Items] | |||
Related party purchases | $ 22 | $ 83 | |
Purchased Assets from Apollo Residential Mortgage Inc. | |||
Related Party Transaction [Line Items] | |||
Related party purchases | $ 1,090 | ||
Short-term Loan to Consummate Merger | |||
Related Party Transaction [Line Items] | |||
Related party loans receivable | 175 | ||
Purchased Apollo Residential Mortgage Inc. Shares | |||
Related Party Transaction [Line Items] | |||
Related party purchases | $ 20 | ||
Commitment to Purchase Apollo Commercial Real Estate Finance Inc. Stock | |||
Related Party Transaction [Line Items] | |||
Period following acquisition | 30 days |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 17, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Commitments [Line Items] | |||
Advances from FHLB | $ 691 | $ 1,112 | |
COLI asset value | 327 | ||
Value of guarantees on COLI | 159 | ||
Capital Contributions | |||
Other Commitments [Line Items] | |||
Investment commitment | 962 | 825 | |
Athene Global Funding | Funding Agreements [Member] | |||
Other Commitments [Line Items] | |||
Interest sensitive contract liabilities | 246 | $ 250 | |
Internal Revenue Service (IRS) | |||
Other Commitments [Line Items] | |||
Income tax examination, estimate of possible loss | 120 | ||
Tax Year 2008 | Internal Revenue Service (IRS) | |||
Other Commitments [Line Items] | |||
Proposed disallowance of income tax deduction | 191 | ||
Tax Year 2009 | Internal Revenue Service (IRS) | |||
Other Commitments [Line Items] | |||
Proposed disallowance of income tax deduction | 154 | ||
Proposed decrease in net operating loss | 16 | ||
Tax Year 2010 | Internal Revenue Service (IRS) | |||
Other Commitments [Line Items] | |||
Proposed disallowance of income tax deduction | 76 | ||
Proposed decrease in net operating loss | 16 | ||
Athene Global Funding | Senior Notes | |||
Other Commitments [Line Items] | |||
Total purchase commitment of senior secured medium term notes | $ 5,000 | ||
Subsequent Event | Athene Global Funding | Funding Agreements [Member] | |||
Other Commitments [Line Items] | |||
Funding agreements issued | $ 650 |
Commitments and Contingencies - Pledged Assets and Funds in Trust (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment funds | $ 25 | $ 27 |
Mortgage loans | 1,003 | 1,134 |
Short-term Investments | 15 | 0 |
Total restricted assets | 2,675 | 3,198 |
Fixed Maturity Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities | 1,535 | 1,865 |
Equity Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities | 40 | 56 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 57 | $ 116 |
Segment Information - Reconciliation of Segment Operating Revenues to Consolidation (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 1,066 | $ 1,272 | $ 1,045 | $ 722 | $ 1,047 | $ 224 | $ 544 | $ 803 | $ 4,105 | $ 2,618 | $ 4,101 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 3,598 | 3,091 | 2,889 | ||||||||
Operating Segments | Retirement Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 3,330 | 2,979 | 2,834 | ||||||||
Operating Segments | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 268 | 112 | 55 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 507 | (473) | 1,212 | ||||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 324 | (390) | 814 | ||||||||
Investment gains (losses), net of offsets | 164 | (132) | 299 | ||||||||
VIE expenses and noncontrolling interest | 13 | 33 | 79 | ||||||||
Other adjustments to revenues | $ 6 | $ 16 | $ 20 |
Segment Information - Reconciliation of Segment Operating Income to Consolidation (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Income tax (expense) benefit – non-operating | $ 52 | $ (12) | $ (53) | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ 364 | $ 126 | $ 193 | $ 85 | $ 243 | $ 76 | $ 101 | $ 142 | 768 | 562 | 456 |
Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Income tax (expense) benefit – non-operating | 50 | (42) | (29) | ||||||||
Net income available to Athene Holding Ltd. shareholders | 728 | 738 | 785 | ||||||||
Operating Segments | Retirement Services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Income tax (expense) benefit – non-operating | 46 | (29) | |||||||||
Net income available to Athene Holding Ltd. shareholders | 777 | 767 | 756 | ||||||||
Operating Segments | Corporate and Other | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Income tax (expense) benefit – non-operating | 4 | (3) | 0 | ||||||||
Net income available to Athene Holding Ltd. shareholders | (49) | (29) | 29 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Investment gains (losses), net of offsets | 47 | (56) | 152 | ||||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 95 | (25) | (30) | ||||||||
Integration, restructuring and other non-operating expenses | (22) | (58) | (279) | ||||||||
Stock-based compensation, excluding LTIP | (82) | (67) | (148) | ||||||||
Income tax (expense) benefit – non-operating | 2 | 30 | (24) | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ 40 | $ (176) | $ (329) |
Segment Information - Reconciliation of Investment Income to Segment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||
Net investment income | $ 2,914 | $ 2,510 | $ 2,333 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 3,030 | 2,610 | 2,538 |
Operating Segments | Retirement Services | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 2,953 | 2,574 | 2,483 |
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 77 | 36 | 55 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Reinsurance embedded derivative impacts | (189) | (84) | (67) |
Net VIE earnings | (1) | (67) | (146) |
Alternative income (gains) losses | 39 | 42 | (4) |
Other | 35 | 9 | 12 |
Net investment income | $ (116) | $ (100) | $ (205) |
Segment Information - Income Tax Provision by Segment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | $ (52) | $ 12 | $ 53 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | (50) | 42 | 29 |
Operating Segments | Retirement Services | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | (46) | 29 | |
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | (4) | 3 | 0 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | $ (2) | $ (30) | $ 24 |
Segment Information - Assets by Segment (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | $ 86,699 | $ 80,846 | $ 82,737 |
Retirement Services | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | 79,298 | 73,702 | 81,633 |
Corporate and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | $ 7,401 | $ 7,144 | $ 1,104 |
Segment Information - Premiums and Deposits by Product (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||
Total deposits | $ 9,018 | $ 4,118 | $ 3,061 |
Premiums | 240 | 195 | 100 |
Total premiums and deposits, net of ceded | 9,258 | 4,313 | 3,161 |
Fixed indexed annuities | |||
Segment Reporting Information [Line Items] | |||
Total deposits | 5,322 | 2,808 | 2,560 |
Fixed rate annuities | |||
Segment Reporting Information [Line Items] | |||
Total deposits | 3,565 | 883 | 323 |
Payouts without life contingencies | |||
Segment Reporting Information [Line Items] | |||
Total deposits | 107 | 166 | 163 |
Funding agreements | |||
Segment Reporting Information [Line Items] | |||
Total deposits | 0 | 250 | 0 |
Life and other deposits | |||
Segment Reporting Information [Line Items] | |||
Total deposits | 24 | 11 | 15 |
Premiums | 219 | 142 | 68 |
Payouts with life contingencies | |||
Segment Reporting Information [Line Items] | |||
Premiums | $ 21 | $ 53 | $ 32 |
Segment Information - Premiums and Deposits by Geographic Location (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | $ 9,258 | $ 4,313 | $ 3,161 |
United States | |||
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | 5,617 | 3,097 | 2,810 |
Bermuda | |||
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | 3,429 | 1,135 | 351 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | $ 212 | $ 81 | $ 0 |
Segment Information - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Tax rate | 35.00% |
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Total revenues | $ 1,066 | $ 1,272 | $ 1,045 | $ 722 | $ 1,047 | $ 224 | $ 544 | $ 803 | $ 4,105 | $ 2,618 | $ 4,101 | |||||
Total benefits and expenses | 681 | 1,234 | 837 | 637 | 825 | 148 | 416 | 639 | 3,389 | 2,028 | 3,577 | |||||
Net income | 364 | 126 | 193 | 85 | 243 | 76 | 101 | 158 | 768 | 578 | 471 | |||||
Net income available to AHL shareholders – basic | $ 364 | $ 126 | $ 193 | $ 85 | $ 243 | $ 76 | $ 101 | $ 142 | 768 | $ 562 | $ 456 | |||||
Common Class A | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 214 | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic (in USD per share) | $ 1.92 | $ 0.68 | $ 1.04 | $ 0.46 | $ 1.31 | $ 0.41 | $ 0.54 | $ 0.99 | $ 4.11 | [1] | $ 3.21 | [1] | $ 3.52 | [1] | ||
Diluted (in USD per share) | 1.78 | 0.68 | 1.04 | 0.46 | 1.31 | 0.41 | 0.54 | 0.99 | $ 4.02 | 3.21 | 3.47 | |||||
Common Class B | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 553 | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic (in USD per share) | 1.94 | 0.85 | 1.03 | 0.47 | 1.30 | 0.39 | 0.56 | 1.01 | $ 4.11 | 3.21 | 3.52 | |||||
Diluted (in USD per share) | 1.92 | $ 0.68 | $ 1.04 | $ 0.46 | $ 1.31 | $ 0.41 | $ 0.54 | $ 0.99 | $ 4.11 | $ 3.21 | $ 3.47 | |||||
Common Class M-1 | ||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||
Net income available to AHL shareholders – basic | $ 1 | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic (in USD per share) | 1.94 | $ 4.11 | ||||||||||||||
Diluted (in USD per share) | $ 0.46 | $ 0.20 | [1] | |||||||||||||
|
Subsequent Events - Narrative (Details) - Subsequent Event $ in Millions |
Jun. 07, 2017
shares
|
Apr. 14, 2017
EUR (€)
|
Mar. 31, 2017
USD ($)
|
---|---|---|---|
Subsequent Event [Line Items] | |||
Valuation of German Group Companies | € | € 90,000,000 | ||
AGER Offering, Percent of Voting Power on Closing | 10.00% | ||
Maximum | AGER Offering | |||
Subsequent Event [Line Items] | |||
Investment commitment | € | € 285,000,000 | ||
Minimum | AGER Offering | |||
Subsequent Event [Line Items] | |||
Investment commitment | € | € 260,000,000 | ||
Portfolio Management Agreement | Related Party | Athene Asset Management | |||
Subsequent Event [Line Items] | |||
Management fee payable, percentage | 0.40% | ||
Amended Management Fee, Percentage, Assets up to $65,846 million | 0.40% | ||
Amended Management Fee, Percentage, Assets in Excess of $65,846 million | 0.30% | ||
Amended Management Fee, Threshold | $ 65,846 | ||
Sub-advisory fees associated with investment funds management | Related Party | Apollo affiliates | |||
Subsequent Event [Line Items] | |||
Amended Sub-Advisory Fee, Percentage, Assets up to $10,000 million | 0.40% | ||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $10,000 million up to $12,441 million | 0.35% | ||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $12,441 million up to $16,000 million | 0.40% | ||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $16,000 million | 0.35% | ||
Amended Sub-Advisory Fee, Threshold One | $ 10,000 | ||
Amended Sub-Advisory Fee, Threshold Two | 12,441 | ||
Amended Sub-Advisory Fee, Threshold Three | $ 16,000 | ||
Common Class A | 2017 Employee Stock Purchase Plan | |||
Subsequent Event [Line Items] | |||
Shares authorized for issuance | shares | 3,800,000 | ||
Share purchase price, Employee Stock Purchase Plan | 85.00% |
Schedule I Summary of Investments - Other Than Investments in Related Parties (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | $ 69,507 |
Amount Shown on Consolidated Balance Sheet | 70,448 |
Mortgage loans, net of allowances | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 5,468 |
Amount Shown on Consolidated Balance Sheet | 5,470 |
Investment funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 674 |
Amount Shown on Consolidated Balance Sheet | 689 |
Policy loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 602 |
Amount Shown on Consolidated Balance Sheet | 602 |
Funds withheld at interest | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 6,538 |
Amount Shown on Consolidated Balance Sheet | 6,538 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,504 |
Amount Shown on Consolidated Balance Sheet | 1,370 |
Real estate | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 542 |
Amount Shown on Consolidated Balance Sheet | 542 |
Short-term investments, at fair value | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 189 |
Amount Shown on Consolidated Balance Sheet | 189 |
Other investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 81 |
Amount Shown on Consolidated Balance Sheet | 81 |
AFS securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 51,429 |
Fair Value | 52,386 |
Amount Shown on Consolidated Balance Sheet | 52,386 |
AFS securities | U.S. government and agencies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 59 |
Fair Value | 60 |
Amount Shown on Consolidated Balance Sheet | 60 |
AFS securities | U.S. state, municipal and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,024 |
Fair Value | 1,140 |
Amount Shown on Consolidated Balance Sheet | 1,140 |
AFS securities | Foreign governments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 2,098 |
Fair Value | 2,235 |
Amount Shown on Consolidated Balance Sheet | 2,235 |
AFS securities | Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 4,343 |
Fair Value | 4,461 |
Amount Shown on Consolidated Balance Sheet | 4,461 |
AFS securities | Other corporate | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 25,061 |
Fair Value | 25,530 |
Amount Shown on Consolidated Balance Sheet | 25,530 |
AFS securities | CLO | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 4,950 |
Fair Value | 4,822 |
Amount Shown on Consolidated Balance Sheet | 4,822 |
AFS securities | ABS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 2,980 |
Fair Value | 2,936 |
Amount Shown on Consolidated Balance Sheet | 2,936 |
AFS securities | CMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,835 |
Fair Value | 1,847 |
Amount Shown on Consolidated Balance Sheet | 1,847 |
AFS securities | RMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 8,731 |
Fair Value | 8,973 |
Amount Shown on Consolidated Balance Sheet | 8,973 |
AFS securities | Redeemable preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 29 |
Fair Value | 29 |
Amount Shown on Consolidated Balance Sheet | 29 |
AFS securities | Total fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 51,110 |
Fair Value | 52,033 |
Amount Shown on Consolidated Balance Sheet | 52,033 |
AFS securities | Banks, trust and insurance companies common stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 70 |
Fair Value | 98 |
Amount Shown on Consolidated Balance Sheet | 98 |
AFS securities | Industrial, miscellaneous and all other common stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 187 |
Fair Value | 190 |
Amount Shown on Consolidated Balance Sheet | 190 |
AFS securities | Nonredeemable preferred stocks | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 62 |
Fair Value | 65 |
Amount Shown on Consolidated Balance Sheet | 65 |
AFS securities | Total equity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 319 |
Fair Value | 353 |
Amount Shown on Consolidated Balance Sheet | 353 |
Trading securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 2,480 |
Amount Shown on Consolidated Balance Sheet | $ 2,581 |
Schedule II Condensed Financial Information of Registrant - Condensed Balance Sheet (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||
---|---|---|---|---|---|---|
Investments | ||||||
Cash and cash equivalents | [1] | $ 2,459 | $ 2,720 | $ 2,671 | $ 3,035 | |
Total assets | 86,699 | 80,846 | 82,737 | |||
Liabilities | ||||||
Total liabilities | 79,840 | 75,493 | ||||
Equity | ||||||
Additional paid-in capital | 3,421 | 3,281 | ||||
Retained earnings | 3,070 | 2,308 | 1,340 | |||
Accumulated other comprehensive income (loss) (related party: 2016 – $12 and 2015 – $(24)) | 367 | (237) | ||||
Total equity | 6,859 | 5,353 | 4,578 | 2,852 | ||
Total liabilities and equity | 86,699 | 80,846 | ||||
Parent Company | ||||||
Investments | ||||||
Fixed maturity securities | 28 | 31 | ||||
Cash and cash equivalents | 189 | 260 | $ 61 | $ 399 | ||
Other assets | 15 | 11 | ||||
Note receivable from subsidiary | 0 | 20 | ||||
Investments in subsidiaries | 6,665 | 5,127 | ||||
Total assets | 6,897 | 5,449 | ||||
Liabilities | ||||||
Payables for collateral on derivatives | 6 | 0 | ||||
Other Liabilities | 32 | 97 | ||||
Intercompany Payable | 1 | 0 | ||||
Total liabilities | 39 | 97 | ||||
Equity | ||||||
Additional paid-in capital | 3,421 | 3,281 | ||||
Retained earnings | 3,070 | 2,308 | ||||
Accumulated other comprehensive income (loss) (related party: 2016 – $12 and 2015 – $(24)) | 367 | (237) | ||||
Total equity | 6,858 | 5,352 | ||||
Total liabilities and equity | 6,897 | 5,449 | ||||
Common Class A | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class A | Parent Company | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class B | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class B | Parent Company | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-1 | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-1 | Parent Company | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-2 | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-2 | Parent Company | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-3 | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-3 | Parent Company | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-4 | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Common Class M-4 | Parent Company | ||||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Related Party | ||||||
Equity | ||||||
Accumulated other comprehensive income (loss) (related party: 2016 – $12 and 2015 – $(24)) | $ 12 | $ (24) | ||||
|
Schedule II Condensed Financial Information of Registrant - Condensed Balance Sheet (Parenthetical) - USD ($) $ / shares in Units, $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001 | |||
Common Class A | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001000000 | $ 0.001 | |
Common stock authorized (in shares) | 425,000,000 | 425,000,000 | ||
Common stock issued (in shares) | 77,319,381.000000 | 50,151,265.000000 | ||
Common stock outstanding (in shares) | 77,319,381.000000 | 50,151,265 | 15,752,736 | 494,200 |
Common Class B | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | $ 0.001 | |
Common stock authorized (in shares) | 325,000,000 | 325,000,000 | ||
Common stock issued (in shares) | 111,805,829.000000 | 135,963,975.000000 | ||
Common stock outstanding (in shares) | 111,805,829 | 135,963,975.000000 | 125,282,892 | 114,605,747 |
Common Class M-1 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 7,109,560.00000 | 7,109,560.00000 | ||
Common stock issued (in shares) | 3,474,205.000000 | 5,198,273.000000 | ||
Common stock outstanding (in shares) | 3,474,205 | 5,198,273.000000 | 5,198,273 | 5,198,273 |
Common Class M-2 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 5,000,000 | 5,000,000 | ||
Common stock issued (in shares) | 1,067,747.000000 | 3,125,869.000000 | ||
Common stock outstanding (in shares) | 1,067,747 | 3,125,869 | 3,125,869 | 3,226,792 |
Common Class M-3 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | $ 0.001 | |
Common stock authorized (in shares) | 7,500,000.0 | 7,500,000.0 | ||
Common stock issued (in shares) | 1,346,300.0000 | 3,110,000.00 | ||
Common stock outstanding (in shares) | 1,346,300 | 3,110,000.00 | 3,350,000 | 0 |
Common Class M-4 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | $ 0.001 | |
Common stock authorized (in shares) | 7,500,000.0 | 7,500,000.0 | ||
Common stock issued (in shares) | 5,397,802.000000 | 5,038,443.000000 | ||
Common stock outstanding (in shares) | 5,397,802 | 5,038,443 | 0 | 0 |
Parent Company | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Available-for-sale securities, fixed maturity, amortized cost | $ 27 | $ 29 | ||
Parent Company | Common Class A | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock authorized (in shares) | 425,000,000 | 425,000,000 | ||
Common stock issued (in shares) | 77,319,381.000000 | 50,151,265.000000 | ||
Common stock outstanding (in shares) | 77,319,381.000000 | 50,151,265.000000 | ||
Parent Company | Common Class B | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 325,000,000 | 325,000,000 | ||
Common stock issued (in shares) | 111,805,829.000000 | 135,963,975.000000 | ||
Common stock outstanding (in shares) | 111,805,829.000000 | 135,963,975.000000 | ||
Parent Company | Common Class M-1 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 7,109,560.00000 | 7,109,560.00000 | ||
Common stock issued (in shares) | 3,474,205.000000 | 5,198,273.000000 | ||
Common stock outstanding (in shares) | 3,474,205.000000 | 5,198,273.000000 | ||
Parent Company | Common Class M-2 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 5,000,000 | 5,000,000 | ||
Common stock issued (in shares) | 1,067,747.000000 | 3,125,869.000000 | ||
Common stock outstanding (in shares) | 1,067,747.000000 | 3,125,869.000000 | ||
Parent Company | Common Class M-3 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 7,500,000.0 | 7,500,000.0 | ||
Common stock issued (in shares) | 1,346,300.000000 | 3,110,000.00 | ||
Common stock outstanding (in shares) | 1,346,300.000000 | 3,110,000.00 | ||
Parent Company | Common Class M-4 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in USD per share) | $ 0.001000000 | $ 0.001000000 | ||
Common stock authorized (in shares) | 7,500,000.0 | 7,500,000.0 | ||
Common stock issued (in shares) | 5,397,802.000000 | 5,038,443.000000 | ||
Common stock outstanding (in shares) | 5,397,802.000000 | 5,038,443.000000 |
Schedule II Condensed Financial Information of Registrant - Condensed Income Statement - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues | |||||||||||
Net investment income | $ 2,914 | $ 2,510 | $ 2,333 | ||||||||
Total revenues | $ 1,066 | $ 1,272 | $ 1,045 | $ 722 | $ 1,047 | $ 224 | $ 544 | $ 803 | 4,105 | 2,618 | 4,101 |
Benefits and Expenses | |||||||||||
Total benefits and expenses | 681 | 1,234 | 837 | 637 | 825 | 148 | 416 | 639 | 3,389 | 2,028 | 3,577 |
Income tax expense (benefit) | (52) | 12 | 53 | ||||||||
Net income available to Athene Holding Ltd. shareholders | $ 364 | $ 126 | $ 193 | $ 85 | $ 243 | $ 76 | $ 101 | $ 142 | 768 | 562 | 456 |
Comprehensive income (loss) available to Athene Holding Ltd. shareholders | 1,372 | (319) | 1,030 | ||||||||
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income | 10 | 0 | 8 | ||||||||
Investment related gains (losses) | 4 | 0 | 0 | ||||||||
Total revenues | 14 | 0 | 8 | ||||||||
Benefits and Expenses | |||||||||||
Other operating expenses (related party: 2016 – $16, 2015 – $16, and 2014 – $253) | 145 | 130 | 450 | ||||||||
Interest expense | 0 | 0 | 1 | ||||||||
Total benefits and expenses | 145 | 130 | 451 | ||||||||
Loss before income taxes and equity earnings in subsidiaries | (131) | (130) | (443) | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Equity earnings in subsidiaries | 899 | 692 | 899 | ||||||||
Net income available to Athene Holding Ltd. shareholders | 768 | 562 | 456 | ||||||||
Other comprehensive income (loss), after tax | 604 | (881) | 574 | ||||||||
Comprehensive income (loss) available to Athene Holding Ltd. shareholders | $ 1,372 | $ (319) | $ 1,030 |
Schedule II Condensed Financial Information of Registrant - Condensed Income Statement (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Other operating expenses (related party: 2016 – $16, 2015 – $16, and 2014 – $253) | $ 145 | $ 130 | $ 450 |
Related Party | |||
Condensed Income Statements, Captions [Line Items] | |||
Investment income | 226 | 168 | 77 |
Other operating expenses (related party: 2016 – $16, 2015 – $16, and 2014 – $253) | 22 | 18 | 240 |
Related Party | Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Investment income | 8 | (5) | 0 |
Other operating expenses (related party: 2016 – $16, 2015 – $16, and 2014 – $253) | $ 16 | $ 16 | $ 253 |
Schedule II Condensed Financial Information of Registrant - Condensed Cash Flow € in Millions, $ in Millions |
9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2015
EUR (€)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||
Net cash (used in) provided by operating activities | $ 1,199 | $ 1,049 | $ 599 | ||||
Cash flows from investing activities | |||||||
Investment in note receivable | € | € (5) | ||||||
Purchases of: | |||||||
Net cash (used in) provided by investing activities | (2,602) | (52) | 1,332 | ||||
Cash flows from financing activities | |||||||
Net cash provided by (used in) financing activities | 1,155 | (944) | (2,295) | ||||
Net (decrease) increase in cash and cash equivalents | (261) | 49 | (364) | ||||
Cash and cash equivalents at beginning of year | [1] | 2,720 | 2,671 | 3,035 | |||
Cash and cash equivalents at end of year | [1] | 2,459 | 2,720 | 2,671 | |||
Supplementary information | |||||||
Cash paid for interest | 9 | 22 | 56 | ||||
Non-cash transactions | |||||||
Issuance of capital for payment of liabilities | 0 | 0 | 199 | ||||
Parent Company | |||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||
Net cash (used in) provided by operating activities | (45) | (82) | 319 | ||||
Cash flows from investing activities | |||||||
Capital contributions to subsidiary | (34) | (506) | (232) | ||||
Acquisition of subsidiaries, net of cash acquired | 0 | 0 | 33 | ||||
Receipts on loans to subsidiaries | 20 | 188 | 0 | ||||
Issuances of loans to subsidiaries | 0 | (103) | (100) | ||||
Investment in note receivable | 0 | (5) | 0 | ||||
Sales, maturities, and repayments of: | |||||||
Available-for-sale, fixed maturity securities | 5 | 17 | 9 | ||||
Purchases of: | |||||||
Available-for-sale, fixed maturity securities (related party: 2016 – $0, 2015 – $0, and 2014 – $(38)) | (3) | (423) | (294) | ||||
Cash settlement of derivatives | 5 | 0 | 0 | ||||
Other investing activities, net | (5) | 0 | 0 | ||||
Net cash (used in) provided by investing activities | (12) | (832) | (584) | ||||
Cash flows from financing activities | |||||||
Capital contributions | 1 | 1,116 | 305 | ||||
Repayment of note payables | 0 | 0 | (300) | ||||
Net change in cash collateral posted for derivative transactions | 6 | 0 | 0 | ||||
Repurchase of common stock | (21) | (3) | (78) | ||||
Net cash provided by (used in) financing activities | (14) | 1,113 | (73) | ||||
Net (decrease) increase in cash and cash equivalents | (71) | 199 | (338) | ||||
Cash and cash equivalents at beginning of year | 260 | 61 | 399 | ||||
Cash and cash equivalents at end of year | 189 | 260 | 61 | ||||
Supplementary information | |||||||
Cash paid for interest | 0 | 0 | 1 | ||||
Non-cash transactions | |||||||
Non-cash capital contribution to ALRe | 0 | 708 | 0 | ||||
Issuance of capital for payment of liabilities | $ 0 | $ 2 | $ 199 | ||||
|
Schedule II Condensed Financial Information of Registrant - Condensed Cash Flow (Parenthetical) - Parent Company - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Purchases of: | |||
Available-for-sale, fixed maturity securities (related party: 2016 – $0, 2015 – $0, and 2014 – $(38)) | $ (3) | $ (423) | $ (294) |
Related Party | |||
Purchases of: | |||
Available-for-sale, fixed maturity securities (related party: 2016 – $0, 2015 – $0, and 2014 – $(38)) | $ 0 | $ 0 | $ (38) |
Schedule II Condensed Financial Information of Registrant - Dividends and Return of Capital - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Condensed Financial Statements, Captions [Line Items] | |||
Cash payments to parent company | $ 0 | $ 0 | $ 350 |
Cash and non-cash capital contributions | 34 | 1,214 | 232 |
Athene IP Holdings Ltd. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and non-cash capital contributions | 8 | 0 | 0 |
AGER Bermuda Holding Ltd. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and non-cash capital contributions | 8 | 74 | 0 |
ALRe | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash payments to parent company | 0 | 0 | 350 |
Cash and non-cash capital contributions | 0 | 1,140 | 0 |
Athene USA | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash payments to parent company | 0 | 0 | 0 |
Cash and non-cash capital contributions | $ 18 | $ 0 | $ 232 |
Schedule II Condensed Financial Information of Registrant - Narrative (Details) € in Millions |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2015
EUR (€)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Sep. 22, 2015
EUR (€)
|
Jan. 14, 2015
EUR (€)
|
|
Condensed Financial Statements, Captions [Line Items] | ||||||
Investment in note receivable | € | € 5 | |||||
Subsidiaries | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Intercompany note payable | $ 100,000,000 | |||||
Debt instrument, interest rate | 0.35% | |||||
Repayments of debt | $ 80,000,000 | |||||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument, interest rate | 1.50% | |||||
Commitment to lend to related party | € | € 51 | € 5 | ||||
Investment in note receivable | $ 0 | $ 5,000,000 | $ 0 | |||
Line of Credit | Revolving Credit Agreement | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Maximum borrowing capacity | $ 1,000,000,000 |
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC, DSI, and VOBA | $ 2,940 | $ 2,652 | |
Future policy benefits, losses, claims and loss expenses1 | 76,124 | 71,836 | |
Other policy claims and benefits | 217 | 234 | |
Premiums | 240 | 195 | $ 100 |
Net investment income | 2,914 | 2,510 | 2,333 |
Benefits, claims, losses, and settlement expenses2 | 2,431 | 1,256 | 2,570 |
Amortization of DAC and VOBA | 318 | 206 | 124 |
Policy and other operating expenses | 618 | 532 | 797 |
Retirement Services | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC, DSI, and VOBA | 2,940 | 2,652 | |
Future policy benefits, losses, claims and loss expenses1 | 71,810 | 67,211 | |
Other policy claims and benefits | 148 | 167 | |
Premiums | 53 | 121 | 100 |
Net investment income | 2,837 | 2,475 | 2,278 |
Benefits, claims, losses, and settlement expenses2 | 2,165 | 1,150 | 2,570 |
Amortization of DAC and VOBA | 318 | 206 | 124 |
Policy and other operating expenses | 422 | 386 | 380 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC, DSI, and VOBA | 0 | 0 | |
Future policy benefits, losses, claims and loss expenses1 | 4,314 | 4,625 | |
Other policy claims and benefits | 69 | 67 | |
Premiums | 187 | 74 | 0 |
Net investment income | 77 | 35 | 55 |
Benefits, claims, losses, and settlement expenses2 | 266 | 106 | 0 |
Amortization of DAC and VOBA | 0 | 0 | 0 |
Policy and other operating expenses | $ 196 | $ 146 | $ 417 |
Schedule IV Reinsurance (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Life insurance in force at end of year | |||
Gross amount | $ 56,356 | $ 77,994 | $ 132,755 |
Ceded to other companies | 65,050 | 83,548 | 142,660 |
Assumed from other companies | 9,591 | 10,123 | 10,748 |
Net amount | $ 897 | $ 4,569 | $ 843 |
Percentage of amount assumed to net | 1069.20% | 221.60% | 1275.00% |
Premiums | |||
Gross amount | $ 448 | $ 445 | $ 387 |
Ceded to other companies | 228 | 274 | 315 |
Assumed from other companies | 20 | 24 | 28 |
Net amount | $ 240 | $ 195 | $ 100 |
Percentage of amount assumed to net | 8.30% | 12.30% | 28.00% |
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Valuation allowance on deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 193 | $ 133 | $ 155 |
Additions: Charged to costs and expenses | 0 | 7 | 0 |
Additions: Assumed through acquisitions | 0 | 66 | 0 |
Deductions | (121) | (13) | (22) |
Balance at end of year | 72 | 193 | 133 |
Valuation allowance on mortgage loans | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 2 | 1 | 1 |
Additions: Charged to costs and expenses | 0 | 0 | 1 |
Additions: Assumed through acquisitions | 0 | 1 | 0 |
Deductions | 0 | 0 | (1) |
Balance at end of year | $ 2 | $ 2 | $ 1 |
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