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Equity
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Common Stock
10. Equity

Preferred Stock—On June 10, 2019, we issued 34,500 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A, par value of $1.00 per share with a liquidation preference of $25,000 per share (Series A). In 2019, we declared and paid dividends of $881.95 per Series A share and $31 million in the aggregate.

On September 19, 2019, we issued 13,800 5.625% Fixed Rate Perpetual Non-Cumulative Preference Shares, Series B, par value of $1.00 per share with a liquidation preference of $25,000 per share (Series B). In 2019, we declared and paid dividends of $394.53 per Series B share and $5 million in the aggregate.

Preferred stock dividends are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the 30th day of March, June, September and December of each year. Preferred stock ranks senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference.

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. In the fourth quarter of 2019, we entered into an agreement with Apollo in which, among other things, we will make certain amendments to our bye-laws to eliminate our current multi-class share structure, subject to the closing of the underlying transaction. See additional information regarding this agreement in Note 14 – Related Parties.

Class A shares collectively represented 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. 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 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.

Class M shares are restricted, non-voting shares previously issued under equity incentive plans. 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, including vesting conditions. As of December 31, 2019, there were 9.1 million outstanding Class M shares with a weighted average conversion price of $18.63.

Repurchase Authorizations

Our board of directors has approved authorizations of $1,567 million for the repurchase of our Class A shares under our repurchase program. We may repurchase shares in open market transactions, in privately negotiated transactions or otherwise. The size and timing of repurchases will depend on legal requirements, market and economic conditions and other factors, and are solely at our discretion. The program has no expiration date, but may be modified, suspended or terminated by the board at any time.

The following summarizes the activity on our share repurchase authorizations:
(In millions)
 
Initial authorization
$
250

Repurchases
(100
)
Remaining authorization at December 31, 2018
150

Additional authorizations
1,317

Repurchases
(827
)
Remaining authorization at December 31, 2019
$
640


Other Share Activities

2018
•
In the first quarter, a total of 21.9 million Class B shares were converted into Class A shares pursuant to a distribution of common shares from AP Alternative Assets, L.P. (AAA) to AAA unitholders.
2017
•
In the fourth quarter, a total of 21.4 million Class B shares were converted into Class A shares pursuant to a distribution of common shares from AP Alternative Assets, L.P. (AAA) to AAA unitholders.
•
As a result of the lockup releases during the year, 1.3 million Class B shares were converted into Class A shares.
•
During the year, we completed two follow-on offerings of our Class A common shares. Shareholders sold 50.3 million existing Class A shares through the offerings. We did not sell any shares in the follow-on offerings. A total of 41.7 million Class B shares were converted into Class A shares on a one-for-one basis in order to participate in the follow-on offerings.

As of December 31, 2019, we had 150 million shares of capital stock authorized which remain undesignated.

The table below shows the changes in each class of shares issued and outstanding:
 
Years ended December 31,
(In millions)
2019
 
2018
 
2017
Class A
 
 
 
 
 
Beginning balance
162.4

 
142.4

 
77.3

Issued shares
0.7

 
0.6

 
0.7

Forfeited shares
(0.1
)
 
—

 
—

Repurchased shares
(19.8
)
 
(2.6
)
 
—

Converted from Class B shares
—

 
22.0

 
64.4

Ending balance
143.2

 
162.4

 
142.4

Class B
 
 
 
 
 
Beginning balance
25.4

 
47.4

 
111.8

Converted to Class A shares
—

 
(22.0
)
 
(64.4
)
Ending balance
25.4

 
25.4

 
47.4

Class M-1
 
 
 
 
 
Beginning balance
3.4

 
3.4

 
3.5

Converted to Class A shares
(0.1
)
 
—

 
(0.1
)
Ending balance
3.3

 
3.4

 
3.4

Class M-2
 
 
 
 
 
Beginning balance
0.8

 
0.9

 
1.1

Converted to Class A shares
—

 
(0.1
)
 
(0.2
)
Ending balance
0.8

 
0.8

 
0.9

Class M-3
 
 
 
 
 
Beginning balance
1.0

 
1.1

 
1.3

Converted to Class A shares
—

 
(0.1
)
 
(0.2
)
Ending balance
1.0

 
1.0

 
1.1

Class M-4
 
 
 
 
 
Beginning balance
4.1

 
4.7

 
5.4

Converted to Class A shares
(0.1
)
 
(0.5
)
 
(0.2
)
Forfeited shares
—

 
—

 
(0.1
)
Repurchased shares
—

 
(0.1
)
 
(0.4
)
Ending balance
4.0

 
4.1

 
4.7



Accumulated Other Comprehensive Income (Loss)—The following provides the details and changes in AOCI:
(In millions)
Unrealized investment gains (losses) on AFS securities
 
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities
 
Noncredit component of OTTI losses on AFS securities
 
Unrealized gains (losses) on hedging instruments
 
Foreign currency translation and other adjustments
 
Accumulated other comprehensive income (loss)
Balance at December 31, 2016
$
684

 
$
(298
)
 
$
(11
)
 
$
6

 
$
(15
)
 
$
366

Adoption of accounting standards
273

 
(72
)
 
(2
)
 
(12
)
 
—

 
187

Other comprehensive income (loss) before reclassifications
1,680

 
(319
)
 
(5
)
 
(105
)
 
19

 
1,270

Less: Reclassification adjustments for gains (losses) realized in net income1
75

 
(26
)
 
(9
)
 
—

 
—

 
40

Less: Income tax expense (benefit)
463

 
(95
)
 
1

 
(35
)
 
—

 
334

Balance at December 31, 2017
2,099

 
(568
)
 
(10
)
 
(76
)
 
4

 
1,449

Adoption of accounting standards
(46
)
 
4

 
—

 
—

 
—

 
(42
)
Other comprehensive income (loss) before reclassifications
(3,291
)
 
852

 
(9
)
 
146

 
(8
)
 
(2,310
)
Less: Reclassification adjustments for gains (losses) realized in net income1
4

 
(1
)
 
(3
)
 
—

 
—

 
—

Less: Income tax expense (benefit)
(629
)
 
168

 
(1
)
 
31

 
—

 
(431
)
Balance at December 31, 2018
(613
)
 
121

 
(15
)
 
39

 
(4
)
 
(472
)
Other comprehensive income (loss) before reclassifications
4,928

 
(1,322
)
 
1

 
29

 
1

 
3,637

Less: Reclassification adjustments for gains (losses) realized in net income1
218

 
(56
)
 
7

 
—

 
—

 
169

Less: Income tax expense (benefit)
959

 
(266
)
 
(1
)
 
6

 
—

 
698

Less: Other comprehensive income attributable to NCI, net of subsidiary issuance of equity interests and tax
16

 
—

 
—

 
1

 
—

 
17

Balance at December 31, 2019
$
3,122

 
$
(879
)
 
$
(20
)
 
$
61

 
$
(3
)
 
$
2,281

 
 
 
 
 
 
 
 
 
 
 
 
1 Recognized in investment related gains (losses) on the consolidated statements of income.