FORM |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated Filer | ☐ | |||||||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | |||||||||||||||
Emerging Growth Company |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 | ||||||||
Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 | ||||||||
Note 5 – Derivative Instruments | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
As of | As of | ||||||||||
June 30, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Investments: | |||||||||||
Fixed maturity available-for-sale securities, at fair value | |||||||||||
(amortized cost: 2024 - $ | $ | $ | |||||||||
Trading securities | |||||||||||
Equity securities | |||||||||||
Mortgage loans on real estate, net of allowance for credit losses | |||||||||||
(portion at fair value: 2024 - $ | |||||||||||
Policy loans | |||||||||||
Derivative investments | |||||||||||
Other investments | |||||||||||
Total investments | |||||||||||
Cash and invested cash | |||||||||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | |||||||||||
Reinsurance recoverables, net of allowance for credit losses | |||||||||||
Deposit assets, net of allowance for credit losses | |||||||||||
Market risk benefit assets | |||||||||||
Accrued investment income | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Separate account assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities | |||||||||||
Policyholder account balances | $ | $ | |||||||||
Future contract benefits | |||||||||||
Funds withheld reinsurance liabilities | |||||||||||
Market risk benefit liabilities | |||||||||||
Deferred front-end loads | |||||||||||
Payables for collateral on investments | |||||||||||
Short-term debt | |||||||||||
Long-term debt | |||||||||||
Other liabilities | |||||||||||
Separate account liabilities | |||||||||||
Total liabilities | |||||||||||
Contingencies and Commitments (See Note 14) | |||||||||||
Stockholders’ Equity | |||||||||||
Preferred stock – | |||||||||||
Series C preferred stock – | |||||||||||
as of June 30, 2024, and December 31, 2023 | |||||||||||
Series D preferred stock – | |||||||||||
as of June 30, 2024, and December 31, 2023 | |||||||||||
Common stock – | |||||||||||
issued and outstanding as of June 30, 2024, and December 31, 2023, respectively | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ | |||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Insurance premiums | $ | $ | $ | $ | |||||||||||||||||||
Fee income | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Realized gain (loss) | ( | ( | |||||||||||||||||||||
Amortization of deferred gain (loss) on business sold through | |||||||||||||||||||||||
reinsurance | ( | ( | |||||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Benefits | |||||||||||||||||||||||
Interest credited | |||||||||||||||||||||||
Market risk benefit (gain) loss | ( | ( | ( | ( | |||||||||||||||||||
Policyholder liability remeasurement (gain) loss | ( | ( | ( | ( | |||||||||||||||||||
Commissions and other expenses | |||||||||||||||||||||||
Interest and debt expense | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Income (loss) before taxes | ( | ||||||||||||||||||||||
Federal income tax expense (benefit) | ( | ||||||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Unrealized investment gain (loss) | ( | ( | ( | ||||||||||||||||||||
Market risk benefit non-performance risk gain (loss) | ( | ( | ( | ||||||||||||||||||||
Policyholder liability discount rate remeasurement gain (loss) | ( | ||||||||||||||||||||||
Foreign currency translation adjustment | ( | ||||||||||||||||||||||
Funded status of employee benefit plans | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Net Income (Loss) Available to Common Stockholders | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Preferred stock dividends declared | ( | ( | ( | ( | |||||||||||||||||||
Deferred units of LNC stock in our deferred compensation plans | ( | ||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Net Income (Loss) Per Common Share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted | ( | ||||||||||||||||||||||
Cash Dividends Declared Per Preferred Share | |||||||||||||||||||||||
Series C preferred stock | $ | $ | $ | $ | |||||||||||||||||||
Series D preferred stock | |||||||||||||||||||||||
Cash Dividends Declared Per Common Share | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||
Balance as of beginning-of-period | $ | $ | $ | $ | |||||||||||||||||||
Balance as of end-of-period | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance as of beginning-of-period | |||||||||||||||||||||||
Stock compensation/issued for benefit plans | |||||||||||||||||||||||
Balance as of end-of-period | |||||||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance as of beginning-of-period | |||||||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Preferred stock dividends declared | ( | ( | ( | ( | |||||||||||||||||||
Common stock dividends declared | ( | ( | ( | ( | |||||||||||||||||||
Balance as of end-of-period | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance as of beginning-of-period | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Balance as of end-of-period | ( | ( | ( | ( | |||||||||||||||||||
Total stockholders’ equity as of end-of-period | $ | $ | $ | $ |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) | |||||||||||
operating activities: | |||||||||||
Realized (gain) loss | ( | ||||||||||
Market risk benefit (gain) loss | ( | ( | |||||||||
Sales and maturities (purchases) of trading securities, net | |||||||||||
Amortization of deferred gain (loss) on business sold through reinsurance | ( | ||||||||||
Change in: | |||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements | |||||||||||
and deferred front-end loads | |||||||||||
Accrued investment income | ( | ( | |||||||||
Insurance liabilities and reinsurance-related balances | ( | ( | |||||||||
Accrued expenses | ( | ||||||||||
Federal income tax accruals | ( | ||||||||||
Other | ( | ( | |||||||||
Net cash provided by (used in) operating activities | ( | ( | |||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of available-for-sale securities and equity securities | ( | ( | |||||||||
Sales of available-for-sale securities and equity securities | |||||||||||
Maturities of available-for-sale securities | |||||||||||
Purchases of alternative investments | ( | ( | |||||||||
Sales and repayments of alternative investments | |||||||||||
Issuance of mortgage loans on real estate | ( | ( | |||||||||
Repayment and maturities of mortgage loans on real estate | |||||||||||
Repayment (issuance) of policy loans, net | ( | ( | |||||||||
Net change in collateral on investments, certain derivatives and related settlements | ( | ||||||||||
Cash received from disposition, net of cash transferred | |||||||||||
Other | ( | ( | |||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash Flows from Financing Activities | |||||||||||
Payment of long-term debt, including current maturities | ( | ||||||||||
Issuance of long-term debt, net of issuance costs | |||||||||||
Payment related to sale-leaseback transactions | ( | ( | |||||||||
Proceeds from certain financing arrangements | |||||||||||
Payment related to certain financing arrangements | ( | ( | |||||||||
Deposits of fixed account balances | |||||||||||
Withdrawals of fixed account balances | ( | ( | |||||||||
Transfers from (to) separate accounts, net | ( | ||||||||||
Common stock issued for benefit plans | ( | ( | |||||||||
Dividends paid to preferred stockholders | ( | ( | |||||||||
Dividends paid to common stockholders | ( | ( | |||||||||
Net cash provided by (used in) financing activities | |||||||||||
Net increase (decrease) in cash, invested cash and restricted cash | |||||||||||
Cash, invested cash and restricted cash as of beginning-of-year | |||||||||||
Cash, invested cash and restricted cash as of end-of-period | $ | $ |
Reportable Segment | Level of Aggregation | ||||
Annuities | Variable Annuities | ||||
Fixed Annuities | |||||
Payout Annuities | |||||
Life Insurance | Traditional Life | ||||
UL and Other | |||||
Group Protection | Group Protection | ||||
Retirement Plan Services | Retirement Plan Services |
Standard | Description | Effective Date | Effect on Financial Statements or Other Significant Matters | ||||||||
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures | This ASU aims to enhance reportable segment disclosure requirements. It requires that a public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), disclose and describe other segment items and report additional measures of a segment’s profit or loss if used by the CODM. | January 1, 2024 (Annual Filings) and January 1, 2025 (Quarterly Filings) | We are evaluating the impact of this ASU to our consolidated financial statements. | ||||||||
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | This ASU establishes new income tax disclosure requirements, along with adjusting certain existing requirements. It specifically requires expanded and disaggregated disclosures around the tax rate reconciliation. | January 1, 2025 | We are evaluating the impact of this ASU to our consolidated financial statements. |
As of June 30, 2024 | |||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||||||||
State and municipal bonds | |||||||||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||
Hybrid and redeemable preferred securities | |||||||||||||||||||||||||||||
Total fixed maturity AFS securities | $ | $ | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||||||||
State and municipal bonds | |||||||||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||
Hybrid and redeemable preferred securities | |||||||||||||||||||||||||||||
Total fixed maturity AFS securities | $ | $ | $ | $ | $ |
Amortized Cost | Fair Value | ||||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due after five years through ten years | |||||||||||
Due after ten years | |||||||||||
Subtotal | |||||||||||
Structured securities (RMBS, CMBS, ABS) | |||||||||||
Total fixed maturity AFS securities | $ | $ |
As of June 30, 2024 | |||||||||||||||||||||||||||||||||||
Less Than or Equal to Twelve Months | Greater Than Twelve Months | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses (1) | ||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||||||||||||||
State and municipal bonds | |||||||||||||||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||
Hybrid and redeemable | |||||||||||||||||||||||||||||||||||
preferred securities | |||||||||||||||||||||||||||||||||||
Total fixed maturity AFS securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total number of fixed maturity AFS securities in an unrealized loss position |
As of December 31, 2023 | |||||||||||||||||||||||||||||||||||
Less Than or Equal to Twelve Months | Greater Than Twelve Months | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses (1) | ||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||||||||||||||
State and municipal bonds | |||||||||||||||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||
Hybrid and redeemable | |||||||||||||||||||||||||||||||||||
preferred securities | |||||||||||||||||||||||||||||||||||
Total fixed maturity AFS securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total number of fixed maturity AFS securities in an unrealized loss position |
As of June 30, 2024 | |||||||||||||||||
Fair Value | Gross Unrealized Losses | Number of Securities (1) | |||||||||||||||
Less than six months | $ | $ | |||||||||||||||
Six months or greater, but less than nine months | |||||||||||||||||
Nine months or greater, but less than twelve months | |||||||||||||||||
Twelve months or greater | |||||||||||||||||
Total | $ | $ |
As of December 31, 2023 | |||||||||||||||||
Fair Value | Gross Unrealized Losses | Number of Securities (1) | |||||||||||||||
Less than six months | $ | $ | |||||||||||||||
Six months or greater, but less than nine months | |||||||||||||||||
Nine months or greater, but less than twelve months | |||||||||||||||||
Twelve months or greater | |||||||||||||||||
Total | $ | $ |
For the Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||
Corporate Bonds | RMBS | ABS | Hybrids | Total | |||||||||||||||||||||||||
Balance as of beginning-of-period | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions from purchases of PCD debt securities (1) | |||||||||||||||||||||||||||||
Additions for securities for which credit losses were | |||||||||||||||||||||||||||||
not previously recognized | |||||||||||||||||||||||||||||
Additions (reductions) for securities for which | |||||||||||||||||||||||||||||
credit losses were previously recognized | |||||||||||||||||||||||||||||
Reductions for disposed securities | ( | ( | |||||||||||||||||||||||||||
Reductions for securities charged-off | ( | ( | |||||||||||||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ | $ | $ |
For the Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||
Corporate Bonds | RMBS | ABS | Hybrids | Total | |||||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions from purchases of PCD debt securities (1) | |||||||||||||||||||||||||||||
Additions for securities for which credit losses were | |||||||||||||||||||||||||||||
not previously recognized | |||||||||||||||||||||||||||||
Additions (reductions) for securities for which | |||||||||||||||||||||||||||||
credit losses were previously recognized | |||||||||||||||||||||||||||||
Reductions for disposed securities | ( | ( | |||||||||||||||||||||||||||
Reductions for securities charged-off | ( | ( | |||||||||||||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ | $ | $ |
For the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
Corporate Bonds | RMBS | ABS | Hybrids | Total | |||||||||||||||||||||||||
Balance as of beginning-of-period | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions from purchases of PCD debt securities (1) | |||||||||||||||||||||||||||||
Additions for securities for which credit losses were | |||||||||||||||||||||||||||||
not previously recognized | |||||||||||||||||||||||||||||
Additions (reductions) for securities for which | |||||||||||||||||||||||||||||
credit losses were previously recognized | ( | ( | |||||||||||||||||||||||||||
Reductions for securities charged-off | ( | ( | |||||||||||||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ | $ | $ |
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
Corporate Bonds | RMBS | ABS | Hybrids | Total | |||||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions from purchases of PCD debt securities (1) | |||||||||||||||||||||||||||||
Additions for securities for which credit losses were | . | ||||||||||||||||||||||||||||
not previously recognized | |||||||||||||||||||||||||||||
Additions (reductions) for securities for which | |||||||||||||||||||||||||||||
credit losses were previously recognized | ( | ( | ( | ||||||||||||||||||||||||||
Reductions for disposed securities | ( | ( | |||||||||||||||||||||||||||
Reductions for securities charged-off | ( | ( | |||||||||||||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ | $ | $ |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Commercial | Residential | Total | Commercial | Residential | Total | ||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
30 to 59 days past due | |||||||||||||||||||||||||||||||||||
60 to 89 days past due | |||||||||||||||||||||||||||||||||||
90 or more days past due | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Unamortized premium (discount) | ( | ( | |||||||||||||||||||||||||||||||||
Mark-to-market gains (losses) (1) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Total carrying value | $ | $ | $ | $ | $ | $ |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||
Commercial mortgage loans on real estate | $ | $ | |||||||||
Residential mortgage loans on real estate | |||||||||||
Total | $ | $ |
As of June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
LTV Less Than 65% | Debt-Service Coverage Ratio | LTV 65% to 75% | Debt-Service Coverage Ratio | LTV Greater Than 75% | Debt-Service Coverage Ratio | Total | |||||||||||||||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||||||||
2024 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||
2019 and prior | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
LTV Less Than 65% | Debt-Service Coverage Ratio | LTV 65% to 75% | Debt-Service Coverage Ratio | LTV Greater Than 75% | Debt-Service Coverage Ratio | Total | |||||||||||||||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||||||||
2023 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||||||||
2018 and prior | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of June 30, 2024 | |||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||
Origination Year | |||||||||||||||||
2024 | $ | $ | $ | ||||||||||||||
2023 | |||||||||||||||||
2022 | |||||||||||||||||
2021 | |||||||||||||||||
2020 | |||||||||||||||||
2019 and prior | |||||||||||||||||
Total | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||
Origination Year | |||||||||||||||||
2023 | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
2021 | |||||||||||||||||
2020 | |||||||||||||||||
2019 | |||||||||||||||||
2018 and prior | |||||||||||||||||
Total | $ | $ | $ |
For the Three Months Ended June 30, 2024 | |||||||||||||||||
Commercial | Residential | Total | |||||||||||||||
Balance as of beginning-of-period | $ | $ | $ | ||||||||||||||
Additions (reductions) from provision for credit loss | |||||||||||||||||
expense (1) | |||||||||||||||||
Additions from purchases of PCD mortgage loans on | |||||||||||||||||
real estate | |||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ |
For the Six Months Ended June 30, 2024 | |||||||||||||||||
Commercial | Residential | Total | |||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | ||||||||||||||
Additions (reductions) from provision for credit loss | |||||||||||||||||
expense (1) | |||||||||||||||||
Additions from purchases of PCD mortgage loans on | |||||||||||||||||
real estate | |||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ |
For the Three Months Ended June 30, 2023 | |||||||||||||||||
Commercial | Residential | Total | |||||||||||||||
Balance as of beginning-of-period | $ | $ | $ | ||||||||||||||
Additions (reductions) from provision for credit loss | |||||||||||||||||
expense (1) | ( | ||||||||||||||||
Additions from purchases of PCD mortgage loans on | |||||||||||||||||
real estate | |||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ |
For the Six Months Ended June 30, 2023 | |||||||||||||||||
Commercial | Residential | Total | |||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | ||||||||||||||
Additions (reductions) from provision for credit loss | |||||||||||||||||
expense (1) | ( | ||||||||||||||||
Additions from purchases of PCD mortgage loans on | |||||||||||||||||
real estate | |||||||||||||||||
Balance as of end-of-period (2) | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Intent to Sell Impairments (1) | |||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | $ | ( | |||||||||||||||||
State and municipal bonds | ( | ( | |||||||||||||||||||||
RMBS | ( | ( | |||||||||||||||||||||
CMBS | ( | ( | |||||||||||||||||||||
ABS | ( | ( | |||||||||||||||||||||
Hybrid and redeemable preferred securities | ( | ( | |||||||||||||||||||||
Total intent to sell impairments | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Credit Loss Benefit (Expense) | |||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||
Corporate bonds | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
RMBS | |||||||||||||||||||||||
ABS | ( | ( | |||||||||||||||||||||
Total credit loss benefit (expense) | $ | ( | $ | $ | ( | $ | ( |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Collateral payable for derivative investments (1) | $ | $ | $ | $ | |||||||||||||||||||
Securities pledged under securities lending agreements (2) | |||||||||||||||||||||||
Investments pledged for FHLBI (3) | |||||||||||||||||||||||
Total payables for collateral on investments | $ | $ | $ | $ |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Collateral payable for derivative investments | $ | $ | |||||||||
Securities pledged under securities | |||||||||||
lending agreements | ( | ( | |||||||||
Investments pledged for FHLBI | ( | ||||||||||
Total increase (decrease) in payables for | |||||||||||
collateral on investments | $ | $ |
As of June 30, 2024 | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | |||||||||||||||||||||||||
Securities Lending | |||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||||||||
Total gross secured borrowings | $ | $ | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | |||||||||||||||||||||||||
Securities Lending | |||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Total gross secured borrowings | $ | $ | $ | $ | $ |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Number of Instruments | Notional Amounts | Carrying Value | Number of Instruments | Notional Amounts | Carrying Value | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Total return swap | $ | $ | $ | $ |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Notional Amounts | Fair Value | Notional Amounts | Fair Value | ||||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | ||||||||||||||||||||||||||||||||
Qualifying Hedges | |||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||
Interest rate contracts (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Foreign currency contracts (1) | |||||||||||||||||||||||||||||||||||
Total cash flow hedges | |||||||||||||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||||||||||
Interest rate contracts (1) | |||||||||||||||||||||||||||||||||||
Foreign currency contracts (1) | |||||||||||||||||||||||||||||||||||
Total fair value hedges | |||||||||||||||||||||||||||||||||||
Non-Qualifying Hedges | |||||||||||||||||||||||||||||||||||
Interest rate contracts (1) | |||||||||||||||||||||||||||||||||||
Foreign currency contracts (1) | |||||||||||||||||||||||||||||||||||
Equity market contracts (1) | |||||||||||||||||||||||||||||||||||
Credit contracts (1) | |||||||||||||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||||||||||||
Reinsurance-related (2) | |||||||||||||||||||||||||||||||||||
RILA, fixed indexed annuity and IUL | |||||||||||||||||||||||||||||||||||
contracts (3) | |||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | $ | $ | $ | $ | $ |
Remaining Life as of June 30, 2024 | |||||||||||||||||||||||||||||||||||
Less Than 1 Year | 1 – 5 Years | 6 - 10 Years | 11 - 30 Years | Over 30 Years | Total | ||||||||||||||||||||||||||||||
Interest rate contracts (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Foreign currency contracts (2) | |||||||||||||||||||||||||||||||||||
Equity market contracts | |||||||||||||||||||||||||||||||||||
Credit contracts | |||||||||||||||||||||||||||||||||||
Total derivative instruments with | |||||||||||||||||||||||||||||||||||
notional amounts | $ | $ | $ | $ | $ | $ |
Amortized Cost of the Hedged Assets / (Liabilities) | Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets / (Liabilities) | ||||||||||||||||||||||
As of June 30, 2024 | As of December 31, 2023 | As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||
Line Item in the Consolidated Balance Sheets in | |||||||||||||||||||||||
which the Hedged Item is Included | |||||||||||||||||||||||
Fixed maturity AFS securities, at fair value | $ | $ | $ | $ | |||||||||||||||||||
Long-term debt (1) | ( | ( |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Unrealized Gain (Loss) on Derivative Instruments | |||||||||||
Balance as of beginning-of-year | $ | $ | |||||||||
Other comprehensive income (loss): | |||||||||||
Unrealized holding gains (losses) arising during the period: | |||||||||||
Cash flow hedges: | |||||||||||
Interest rate contracts | |||||||||||
Foreign currency contracts | |||||||||||
Change in foreign currency exchange rate adjustment | ( | ||||||||||
Income tax benefit (expense) | ( | ( | |||||||||
Less: | |||||||||||
Reclassification adjustment for gains (losses) | |||||||||||
included in net income (loss): | |||||||||||
Cash flow hedges: | |||||||||||
Interest rate contracts (1) | ( | ||||||||||
Interest rate contracts (2) | |||||||||||
Foreign currency contracts (1) | |||||||||||
Foreign currency contracts (3) | ( | ||||||||||
Income tax benefit (expense) | ( | ( | |||||||||
Balance as of end-of-period | $ | $ |
Gain (Loss) Recognized in Income For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
Realized Gain (Loss) | Net Investment Income | Interest and Debt Expense | Realized Gain (Loss) | Net Investment Income | Interest and Debt Expense | ||||||||||||||||||||||||||||||
Total Line Items in which the | |||||||||||||||||||||||||||||||||||
Effects of Fair Value or Cash | |||||||||||||||||||||||||||||||||||
Flow Hedges are Recorded | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Qualifying Hedges | |||||||||||||||||||||||||||||||||||
Gain or (loss) on fair value hedging | |||||||||||||||||||||||||||||||||||
relationships: | |||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||
Hedged items | – | ( | – | ( | |||||||||||||||||||||||||||||||
Derivatives designated as hedging | |||||||||||||||||||||||||||||||||||
instruments | – | ( | – | ( | |||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging | |||||||||||||||||||||||||||||||||||
relationships: | |||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified | |||||||||||||||||||||||||||||||||||
from AOCI into income | ( | ||||||||||||||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified | |||||||||||||||||||||||||||||||||||
from AOCI into income | ( | ||||||||||||||||||||||||||||||||||
Non-Qualifying Hedges | |||||||||||||||||||||||||||||||||||
Interest rate contracts | ( | ( | |||||||||||||||||||||||||||||||||
Equity market contracts | |||||||||||||||||||||||||||||||||||
Credit contracts | ( | ||||||||||||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||||||||||||
Reinsurance-related | |||||||||||||||||||||||||||||||||||
RILA, fixed indexed annuity and IUL | |||||||||||||||||||||||||||||||||||
contracts | ( | ( |
Gain (Loss) Recognized in Income For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
Realized Gain (Loss) | Net Investment Income | Interest and Debt Expense | Realized Gain (Loss) | Net Investment Income | Interest and Debt Expense | ||||||||||||||||||||||||||||||
Total Line Items in which the | |||||||||||||||||||||||||||||||||||
Effects of Fair Value or Cash | |||||||||||||||||||||||||||||||||||
Flow Hedges are Recorded | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Qualifying Hedges | |||||||||||||||||||||||||||||||||||
Gain or (loss) on fair value hedging | |||||||||||||||||||||||||||||||||||
relationships: | |||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||
Hedged items | – | ( | – | ( | ( | ||||||||||||||||||||||||||||||
Derivatives designated as hedging | |||||||||||||||||||||||||||||||||||
instruments | – | ( | – | ||||||||||||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||||||||||||||
Hedged items | – | ( | – | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging | |||||||||||||||||||||||||||||||||||
instruments | – | – | |||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging | |||||||||||||||||||||||||||||||||||
relationships: | |||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified | |||||||||||||||||||||||||||||||||||
from AOCI into income | ( | ||||||||||||||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified | |||||||||||||||||||||||||||||||||||
from AOCI into income | ( | ||||||||||||||||||||||||||||||||||
Non-Qualifying Hedges | |||||||||||||||||||||||||||||||||||
Interest rate contracts | ( | ||||||||||||||||||||||||||||||||||
Foreign currency contracts | ( | ||||||||||||||||||||||||||||||||||
Equity market contracts | |||||||||||||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||||||||||
Credit contracts | ( | ||||||||||||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||||||||||||
Reinsurance-related | ( | ||||||||||||||||||||||||||||||||||
RILA, fixed indexed annuity and IUL | |||||||||||||||||||||||||||||||||||
contracts | ( | ( |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||
S&P Credit Rating of Counterparty | Collateral Posted by Counter- Party (Held by LNC) | Collateral Posted by LNC (Held by Counter- Party) | Collateral Posted by Counter- Party (Held by LNC) | Collateral Posted by LNC (Held by Counter- Party) | |||||||||||||||||||
AA- | $ | $ | ( | $ | $ | ( | |||||||||||||||||
A+ | ( | ||||||||||||||||||||||
A | |||||||||||||||||||||||
A- | |||||||||||||||||||||||
$ | $ | ( | $ | $ | ( |
As of June 30, 2024 | |||||||||||||||||
Derivative Instruments | Embedded Derivative Instruments | Total | |||||||||||||||
Financial Assets | |||||||||||||||||
Gross amount of recognized assets | $ | $ | $ | ||||||||||||||
Gross amounts offset | ( | ( | |||||||||||||||
Net amount of assets | |||||||||||||||||
Gross amounts not offset: | |||||||||||||||||
Cash collateral | ( | ( | |||||||||||||||
Non-cash collateral (1) | ( | ( | |||||||||||||||
Net amount | $ | $ | $ | ||||||||||||||
Financial Liabilities | |||||||||||||||||
Gross amount of recognized liabilities | $ | $ | $ | ||||||||||||||
Gross amounts offset | ( | ( | |||||||||||||||
Net amount of liabilities | |||||||||||||||||
Gross amounts not offset: | |||||||||||||||||
Cash collateral | ( | ( | |||||||||||||||
Non-cash collateral (2) | ( | ( | |||||||||||||||
Net amount | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||
Derivative Instruments | Embedded Derivative Instruments | Total | |||||||||||||||
Financial Assets | |||||||||||||||||
Gross amount of recognized assets | $ | $ | $ | ||||||||||||||
Gross amounts offset | ( | ( | |||||||||||||||
Net amount of assets | |||||||||||||||||
Gross amounts not offset: | |||||||||||||||||
Cash collateral | ( | ( | |||||||||||||||
Non-cash collateral (1) | ( | ( | |||||||||||||||
Net amount | $ | $ | $ | ||||||||||||||
Financial Liabilities | |||||||||||||||||
Gross amount of recognized liabilities | $ | $ | $ | ||||||||||||||
Gross amounts offset | ( | ( | |||||||||||||||
Net amount of liabilities | |||||||||||||||||
Gross amounts not offset: | |||||||||||||||||
Cash collateral | ( | ( | |||||||||||||||
Non-cash collateral (2) | ( | ( | |||||||||||||||
Net amount | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
DAC, VOBA and DSI | |||||||||||
Variable Annuities | $ | $ | |||||||||
Fixed Annuities | |||||||||||
Traditional Life | |||||||||||
UL and Other | |||||||||||
Group Protection | |||||||||||
Retirement Plan Services | |||||||||||
Total DAC, VOBA and DSI | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
DFEL | |||||||||||
Variable Annuities | $ | $ | |||||||||
UL and Other (1) | |||||||||||
Other Operations (2) | |||||||||||
Total DFEL | $ | $ |
For the Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Variable Annuities | Fixed Annuities | Traditional Life | UL and Other | Group Protection | Retirement Plan Services | ||||||||||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Deferrals | |||||||||||||||||||||||||||||||||||
Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | $ | $ |
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Variable Annuities | Fixed Annuities | Traditional Life | UL and Other | Group Protection | Retirement Plan Services | ||||||||||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Deferrals | |||||||||||||||||||||||||||||||||||
Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | $ | $ |
For the Six Months Ended June 30, 2024 | |||||||||||||||||
Fixed Annuities | Traditional Life | UL and Other | |||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | ||||||||||||||
Deferrals | |||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||
Balance as of end-of-period | $ | $ | $ |
For the Six Months Ended June 30, 2023 | |||||||||||||||||
Fixed Annuities | Traditional Life | UL and Other | |||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | ||||||||||||||
Deferrals | |||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||
Balance as of end-of-period | $ | $ | $ |
For the Six Months Ended June 30, 2024 | |||||||||||||||||||||||
Variable Annuities | Fixed Annuities | UL and Other | Retirement Plan Services | ||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Deferrals | |||||||||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ |
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Variable Annuities | Fixed Annuities | UL and Other | Retirement Plan Services | ||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Deferrals | |||||||||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ |
For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||
Variable Annuities | UL and Other | Variable Annuities | UL and Other | ||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Deferrals | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Balance as of end-of-period | |||||||||||||||||||||||
Less: ceded DFEL | |||||||||||||||||||||||
Balance as of end-of-period, net of reinsurance | $ | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Fixed maturity AFS securities | $ | $ | |||||||||
Other investments | |||||||||||
Cash and invested cash | |||||||||||
Accrued investment income | |||||||||||
Other assets | |||||||||||
Total | $ | $ |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Assets | Liabilities | Net (Assets) Liabilities | Assets | Liabilities | Net (Assets) Liabilities | ||||||||||||||||||||||||||||||
Variable Annuities | $ | $ | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||
Fixed Annuities | |||||||||||||||||||||||||||||||||||
Retirement Plan Services | ( | ( | |||||||||||||||||||||||||||||||||
Total MRBs | $ | $ | $ | ( | $ | $ | $ | ( |
As of or For the Six Months Ended June 30, 2024 | As of or For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
Variable Annuities | Fixed Annuities | Retirement Plan Services | Variable Annuities | Fixed Annuities | Retirement Plan Services | ||||||||||||||||||||||||||||||
Balance as of beginning-of-year | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Less: Effect of cumulative changes in | |||||||||||||||||||||||||||||||||||
non-performance risk | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balance as of beginning-of-year, before the effect | |||||||||||||||||||||||||||||||||||
of changes in non-performance risk | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||||||||
Attributed fees collected | |||||||||||||||||||||||||||||||||||
Benefit payments | ( | ( | |||||||||||||||||||||||||||||||||
Effect of changes in interest rates | ( | ( | ( | ||||||||||||||||||||||||||||||||
Effect of changes in equity markets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Effect of changes in equity index volatility | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
In-force updates and other changes in MRBs (1) | |||||||||||||||||||||||||||||||||||
Balance as of end-of-period, before the effect of | |||||||||||||||||||||||||||||||||||
changes in non-performance risk | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Effect of cumulative changes in | |||||||||||||||||||||||||||||||||||
non-performance risk | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Balance as of end-of-period | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Less: ceded MRB assets (liabilities) | ( | ( | |||||||||||||||||||||||||||||||||
Balance as of end-of-period, net of reinsurance | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Weighted-average age of policyholders (years) | |||||||||||||||||||||||||||||||||||
Net amount at risk (2) | $ | $ | $ | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Mutual funds and collective investment trusts | $ | $ | |||||||||
Exchange-traded funds | |||||||||||
Fixed maturity AFS securities | |||||||||||
Cash and invested cash | |||||||||||
Other investments | |||||||||||
Total separate account assets | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Variable Annuities | $ | $ | |||||||||
UL and Other | |||||||||||
Retirement Plan Services | |||||||||||
Other Operations (1) | |||||||||||
Total separate account liabilities | $ | $ |
As of or For the Six Months Ended June 30, 2024 | As of or For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
Variable Annuities | UL and Other | Retirement Plan Services | Variable Annuities | UL and Other | Retirement Plan Services | ||||||||||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Gross deposits | |||||||||||||||||||||||||||||||||||
Withdrawals | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Policyholder assessments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Change in market performance | |||||||||||||||||||||||||||||||||||
Net transfers from (to) general account | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Cash surrender value | $ | $ | $ | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Variable Annuities | $ | $ | |||||||||
Fixed Annuities | |||||||||||
UL and Other | |||||||||||
Retirement Plan Services | |||||||||||
Other (1) | |||||||||||
Total policyholder account balances | $ | $ |
As of or For the Six Months Ended June 30, 2024 | |||||||||||||||||||||||
Variable Annuities | Fixed Annuities | UL and Other | Retirement Plan Services | ||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Gross deposits | |||||||||||||||||||||||
Withdrawals | ( | ( | ( | ( | |||||||||||||||||||
Policyholder assessments | ( | ( | ( | ( | |||||||||||||||||||
Net transfers from (to) separate account | ( | ||||||||||||||||||||||
Interest credited | |||||||||||||||||||||||
Change in fair value of embedded derivative | |||||||||||||||||||||||
instruments | |||||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average crediting rate | |||||||||||||||||||||||
Net amount at risk (1)(2) | $ | $ | $ | $ | |||||||||||||||||||
Cash surrender value |
As of or For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Variable Annuities | Fixed Annuities | UL and Other | Retirement Plan Services | ||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Gross deposits | |||||||||||||||||||||||
Withdrawals | ( | ( | ( | ( | |||||||||||||||||||
Policyholder assessments | ( | ( | ( | ( | |||||||||||||||||||
Net transfers from (to) separate account | ( | ( | |||||||||||||||||||||
Interest credited | |||||||||||||||||||||||
Change in fair value of embedded derivative | |||||||||||||||||||||||
instruments | |||||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average crediting rate | % | % | % | % | |||||||||||||||||||
Net amount at risk (1)(2) | $ | $ | $ | $ | |||||||||||||||||||
Cash surrender value |
As of June 30, 2024 | |||||||||||||||||||||||||||||||||||
At Guaranteed Minimum | 1-50 Basis Basis Points Above | 51-100 Basis Points Above | 101-150 Basis Points Above | Greater Than 150 Basis Points Above | Total | ||||||||||||||||||||||||||||||
Range of Guaranteed | |||||||||||||||||||||||||||||||||||
Minimum Crediting Rate | |||||||||||||||||||||||||||||||||||
Variable Annuities | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Fixed Annuities | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
UL and Other | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Retirement Plan Services | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||
At Guaranteed Minimum | 1-50 Basis Basis Points Above | 51-100 Basis Points Above | 101-150 Basis Points Above | Greater Than 150 Basis Points Above | Total | ||||||||||||||||||||||||||||||
Range of Guaranteed | |||||||||||||||||||||||||||||||||||
Minimum Crediting Rate | |||||||||||||||||||||||||||||||||||
Variable Annuities | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Fixed Annuities | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
UL and Other | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Retirement Plan Services | |||||||||||||||||||||||||||||||||||
Up to | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Payout Annuities (1) | $ | $ | |||||||||
Traditional Life (1) | |||||||||||
Group Protection (2) | |||||||||||
UL and Other (3) | |||||||||||
Other Operations (4) | |||||||||||
Other (5) | |||||||||||
Total future contract benefits | $ | $ |
As of or For the Six Months Ended June 30, 2024 | As of or For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||
Payout Annuities | Traditional Life | Payout Annuities | Traditional Life | ||||||||||||||||||||
Present Value of Expected Net Premiums | |||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Less: Effect of cumulative changes in discount | |||||||||||||||||||||||
rate assumptions | ( | ( | |||||||||||||||||||||
Beginning balance at original discount rate | |||||||||||||||||||||||
Effect of actual variances from expected experience | ( | ( | |||||||||||||||||||||
Adjusted balance as of beginning-of-year | |||||||||||||||||||||||
Issuances | |||||||||||||||||||||||
Interest accrual | |||||||||||||||||||||||
Net premiums collected | ( | ( | |||||||||||||||||||||
Flooring impact of LFPB | |||||||||||||||||||||||
Ending balance at original discount rate | |||||||||||||||||||||||
Effect of cumulative changes in discount | |||||||||||||||||||||||
rate assumptions | ( | ( | |||||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | |||||||||||||||||||
Present Value of Expected LFPB | |||||||||||||||||||||||
Balance as of beginning-of-year | $ | $ | $ | $ | |||||||||||||||||||
Less: Effect of cumulative changes in discount | |||||||||||||||||||||||
rate assumptions | ( | ( | ( | ( | |||||||||||||||||||
Beginning balance at original discount rate (1) | |||||||||||||||||||||||
Effect of actual variances from expected experience | ( | ( | ( | ||||||||||||||||||||
Adjusted balance as of beginning-of-year | |||||||||||||||||||||||
Issuances | |||||||||||||||||||||||
Interest accrual | |||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | |||||||||||||||||||
Ending balance at original discount rate (1) | |||||||||||||||||||||||
Effect of cumulative changes in discount | |||||||||||||||||||||||
rate assumptions | ( | ( | ( | ( | |||||||||||||||||||
Balance as of end-of-period | $ | $ | $ | $ | |||||||||||||||||||
Net balance as of end-of-period | $ | $ | $ | $ | |||||||||||||||||||
Less: reinsurance recoverables | |||||||||||||||||||||||
Net balance as of end-of-period, net of reinsurance | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average duration of future policyholder | |||||||||||||||||||||||
benefit liability (years) |
As of June 30, 2024 | As of June 30, 2023 | ||||||||||||||||||||||
Undiscounted | Discounted | Undiscounted | Discounted | ||||||||||||||||||||
Payout Annuities | |||||||||||||||||||||||
Expected future gross premiums | $ | $ | $ | $ | |||||||||||||||||||
Expected future benefit payments | |||||||||||||||||||||||
Traditional Life | |||||||||||||||||||||||
Expected future gross premiums | |||||||||||||||||||||||
Expected future benefit payments |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Payout Annuities | |||||||||||||||||||||||
Gross premiums | $ | $ | $ | $ | |||||||||||||||||||
Interest accretion | |||||||||||||||||||||||
Traditional Life | |||||||||||||||||||||||
Gross premiums | |||||||||||||||||||||||
Interest accretion |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Payout Annuities | |||||||||||
Interest accretion rate | % | % | |||||||||
Current discount rate | % | % | |||||||||
Traditional Life | |||||||||||
Interest accretion rate | % | % | |||||||||
Current discount rate | % | % |
Group Protection | |||||||||||
As of or For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Balance as of beginning-of-year | $ | $ | |||||||||
Less: Effect of cumulative changes in discount | |||||||||||
rate assumptions | ( | ( | |||||||||
Beginning balance at original discount rate | |||||||||||
Effect of actual variances from expected experience | ( | ( | |||||||||
Adjusted beginning-of-year balance | |||||||||||
New incidence | |||||||||||
Interest | |||||||||||
Benefit payments | ( | ( | |||||||||
Ending balance at original discount rate | |||||||||||
Effect of cumulative changes in discount | |||||||||||
rate assumptions | ( | ( | |||||||||
Balance as of end-of-period | |||||||||||
Less: reinsurance recoverables | |||||||||||
Balance as of end-of-period, net of reinsurance | $ | $ | |||||||||
Weighted-average duration of liability for future | |||||||||||
claims (years) |
As of June 30, 2024 | As of June 30, 2023 | ||||||||||||||||||||||
Undiscounted | Discounted | Undiscounted | Discounted | ||||||||||||||||||||
Group Protection | |||||||||||||||||||||||
Expected future benefit payments | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Group Protection | |||||||||||||||||||||||
Gross premiums | $ | $ | $ | $ | |||||||||||||||||||
Interest accretion |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Group Protection | |||||||||||
Interest accretion rate | % | % | |||||||||
Current discount rate | % | % |
UL and Other | |||||||||||
As of or For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Balance as of beginning-of-year | $ | $ | |||||||||
Less: Effect of cumulative changes in shadow | |||||||||||
balance in AOCI | ( | ( | |||||||||
Balance as of beginning-of-year, excluding | |||||||||||
shadow balance in AOCI | |||||||||||
Effect of actual variances from expected experience | |||||||||||
Adjusted beginning-of-year balance | |||||||||||
Interest accrual | |||||||||||
Net assessments collected | |||||||||||
Benefit payments | ( | ( | |||||||||
Balance as of end-of-period, excluding shadow | |||||||||||
balance in AOCI | |||||||||||
Effect of cumulative changes in shadow | |||||||||||
balance in AOCI | ( | ( | |||||||||
Balance as of end-of-period | |||||||||||
Less: reinsurance recoverables (1) | |||||||||||
Balance as of end-of-period, net of reinsurance | $ | $ | |||||||||
Weighted-average duration of additional liabilities | |||||||||||
for other insurance benefits (years) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
UL and Other | |||||||||||||||||||||||
Gross assessments | $ | $ | $ | $ | |||||||||||||||||||
Interest accretion |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
UL and Other | |||||||||||
Interest accretion rate | % | % |
For the Six Months Ended June 30, | |||||
2024 | |||||
Balance as of beginning-of-year | $ | ||||
Issuance of | |||||
Partial repayment of variable-rate term loan, due 2024 (1) | ( | ||||
Unamortized debt issuance costs | ( | ||||
Unamortized adjustments from discontinued hedges | ( | ||||
Fair value hedge on interest rate swap agreements | ( | ||||
Balance as of end-of-period | $ |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity AFS securities | $ | $ | $ | $ | |||||||||||||||||||
Trading securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Mortgage loans on real estate | |||||||||||||||||||||||
Derivative investments | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Cash and invested cash | |||||||||||||||||||||||
MRB assets | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Ceded MRBs | |||||||||||||||||||||||
Indexed annuity ceded embedded derivatives | |||||||||||||||||||||||
Separate account assets | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Policyholder account balances: | |||||||||||||||||||||||
Account balances of certain investment contracts | ( | ( | ( | ( | |||||||||||||||||||
RILA, fixed annuity and IUL contracts | ( | ( | ( | ( | |||||||||||||||||||
Funds withheld reinsurance liabilities – reinsurance-related | |||||||||||||||||||||||
embedded derivatives | ( | ( | ( | ( | |||||||||||||||||||
MRB liabilities | ( | ( | ( | ( | |||||||||||||||||||
Short-term debt | ( | ( | ( | ( | |||||||||||||||||||
Long-term debt | ( | ( | ( | ( | |||||||||||||||||||
Ceded MRBs | ( | ( | ( | ( | |||||||||||||||||||
Derivative liabilities | ( | ( | ( | ( | |||||||||||||||||||
Remaining guaranteed interest and similar contracts | ( | ( | ( | ( |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Fair value | $ | $ | |||||||||
Aggregate contractual principal | |||||||||||
As of June 30, 2024 | |||||||||||||||||||||||
Quoted | |||||||||||||||||||||||
Prices | |||||||||||||||||||||||
in Active | |||||||||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||||||||
Identical | Observable | Unobservable | Total | ||||||||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | |||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||
State and municipal bonds | |||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||
RMBS | |||||||||||||||||||||||
CMBS | |||||||||||||||||||||||
ABS | |||||||||||||||||||||||
Hybrid and redeemable preferred securities | |||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Mortgage loans on real estate | |||||||||||||||||||||||
Derivative investments (1) | |||||||||||||||||||||||
Other investments – short-term investments | |||||||||||||||||||||||
Cash and invested cash | |||||||||||||||||||||||
MRB assets | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Ceded MRBs | |||||||||||||||||||||||
Indexed annuity ceded embedded derivatives | |||||||||||||||||||||||
Separate account assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Policyholder account balances – RILA, fixed annuity | |||||||||||||||||||||||
and IUL contracts | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Funds withheld reinsurance liabilities – reinsurance-related | |||||||||||||||||||||||
embedded derivatives | ( | ( | |||||||||||||||||||||
MRB liabilities | ( | ( | |||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Ceded MRBs | ( | ( | |||||||||||||||||||||
Derivative liabilities (1) | ( | ( | ( | ||||||||||||||||||||
Total liabilities | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
As of December 31, 2023 | |||||||||||||||||||||||
Quoted | |||||||||||||||||||||||
Prices | |||||||||||||||||||||||
in Active | |||||||||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||||||||
Identical | Observable | Unobservable | Total | ||||||||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | |||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||
State and municipal bonds | |||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||
RMBS | |||||||||||||||||||||||
CMBS | |||||||||||||||||||||||
ABS | |||||||||||||||||||||||
Hybrid and redeemable preferred securities | |||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Mortgage loans on real estate | |||||||||||||||||||||||
Derivative investments (1) | |||||||||||||||||||||||
Other investments – short-term investments | |||||||||||||||||||||||
Cash and invested cash | |||||||||||||||||||||||
MRB assets | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Ceded MRBs | |||||||||||||||||||||||
Indexed annuity ceded embedded derivatives | |||||||||||||||||||||||
Separate account assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Policyholder account balances – RILA, fixed annuity | |||||||||||||||||||||||
and IUL contracts | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Funds withheld reinsurance liabilities – reinsurance-related | |||||||||||||||||||||||
embedded derivatives | ( | ( | |||||||||||||||||||||
MRB liabilities | ( | ( | |||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Ceded MRBs | ( | ( | |||||||||||||||||||||
Derivative liabilities (1) | ( | ( | ( | ||||||||||||||||||||
Total liabilities | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
For the Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||||||||||||||||||||||
Items | (Losses) | Sales, | Into or | |||||||||||||||||||||||||||||||||||
Included | in | Maturities, | Out | |||||||||||||||||||||||||||||||||||
Beginning | in | OCI | Settlements, | of | Ending | |||||||||||||||||||||||||||||||||
Fair | Net | and | Calls, | Level 3, | Fair | |||||||||||||||||||||||||||||||||
Value | Income | Other (1) | Net | Net | Value | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Investments: (2) | ||||||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||||||||||||||
CMBS | ||||||||||||||||||||||||||||||||||||||
ABS | ( | |||||||||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | ||||||||||||||||||||||||||||||||||||||
securities | ( | |||||||||||||||||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||||||||||||||
Equity securities | ( | |||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | |||||||||||||||||||||||||||||||||||||
Derivative investments | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||
Ceded MRBs (3) | ||||||||||||||||||||||||||||||||||||||
Indexed annuity ceded embedded | ||||||||||||||||||||||||||||||||||||||
derivatives (4) | ( | |||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances – | ||||||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | ||||||||||||||||||||||||||||||||||||||
IUL contracts (4) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Funds withheld reinsurance | ||||||||||||||||||||||||||||||||||||||
liabilities – reinsurance-related | ||||||||||||||||||||||||||||||||||||||
embedded derivatives (4) | ( | ( | ||||||||||||||||||||||||||||||||||||
Other liabilities – ceded MRBs (3) | ( | ( | ||||||||||||||||||||||||||||||||||||
Total, net | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( |
For the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Gains | Issuances, | Transfers | |||||||||||||||||||||||||||||||||
Items | (Losses) | Sales, | Into or | ||||||||||||||||||||||||||||||||
Included | in | Maturities, | Out | ||||||||||||||||||||||||||||||||
Beginning | in | OCI | Settlements, | of | Ending | ||||||||||||||||||||||||||||||
Fair | Net | and | Calls, | Level 3, | Fair | ||||||||||||||||||||||||||||||
Value | Income | Other (1) | Net | Net | Value | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Investments: (2) | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||
State and municipal bonds | ( | ||||||||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
ABS | ( | ( | |||||||||||||||||||||||||||||||||
CMBS | ( | ||||||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | |||||||||||||||||||||||||||||||||||
securities | ( | ||||||||||||||||||||||||||||||||||
Trading securities | ( | ( | |||||||||||||||||||||||||||||||||
Equity securities | ( | ||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ( | |||||||||||||||||||||||||||||||||
Derivative investments | ( | ||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||
Ceded MRBs (3) | ( | ||||||||||||||||||||||||||||||||||
Indexed annuity ceded embedded | |||||||||||||||||||||||||||||||||||
derivatives (4) | |||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts (4) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other liabilities – ceded MRBs (3) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total, net | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( |
For the Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Gains | Issuances, | Transfers | |||||||||||||||||||||||||||||||||
Items | (Losses) | Sales, | Into or | ||||||||||||||||||||||||||||||||
Included | in | Maturities, | Out | ||||||||||||||||||||||||||||||||
Beginning | in | OCI | Settlements, | of | Ending | ||||||||||||||||||||||||||||||
Fair | Net | and | Calls, | Level 3, | Fair | ||||||||||||||||||||||||||||||
Value | Income | Other (1) | Net | Net | Value | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Investments: (2) | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
State and municipal bonds | ( | ||||||||||||||||||||||||||||||||||
RMBS | ( | ||||||||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||
ABS | ( | ||||||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | |||||||||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||||||||
Trading securities | ( | ||||||||||||||||||||||||||||||||||
Equity securities | ( | ( | |||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ||||||||||||||||||||||||||||||||||
Derivative investments | ( | ( | |||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||
Ceded MRBs (3) | |||||||||||||||||||||||||||||||||||
Indexed annuity ceded embedded | |||||||||||||||||||||||||||||||||||
derivatives (4) | ( | ||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts (4) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Funds withheld reinsurance | |||||||||||||||||||||||||||||||||||
liabilities – reinsurance-related | |||||||||||||||||||||||||||||||||||
embedded derivatives (4) | ( | ( | |||||||||||||||||||||||||||||||||
Other liabilities – ceded MRBs (3) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total, net | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | ( |
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Gains | Issuances, | Transfers | |||||||||||||||||||||||||||||||||
Items | (Losses) | Sales, | Into or | ||||||||||||||||||||||||||||||||
Included | in | Maturities, | Out | ||||||||||||||||||||||||||||||||
Beginning | in | OCI | Settlements, | of | Ending | ||||||||||||||||||||||||||||||
Fair | Net | and | Calls, | Level 3, | Fair | ||||||||||||||||||||||||||||||
Value | Income | Other (1) | Net | Net | Value | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Investments: (2) | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
State and municipal bonds | ( | ||||||||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | ( | ||||||||||||||||||||||||||||||||||
ABS | ( | ||||||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | |||||||||||||||||||||||||||||||||||
securities | ( | ( | |||||||||||||||||||||||||||||||||
Trading securities | ( | ||||||||||||||||||||||||||||||||||
Equity securities | ( | ||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ( | |||||||||||||||||||||||||||||||||
Derivative investments | ( | ||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||
Ceded MRBs (3) | ( | ||||||||||||||||||||||||||||||||||
Indexed annuity ceded embedded | |||||||||||||||||||||||||||||||||||
derivatives (4) | |||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts (4) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other liabilities – ceded MRBs (3) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | $ | ( | $ | ( | $ | ( |
For the Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | ||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||
ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||
Trading securities | ( | ||||||||||||||||||||||||||||||||||
Equity securities | ( | ( | |||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ( | ( | ||||||||||||||||||||||||||||||||
Derivative investments | ( | ( | |||||||||||||||||||||||||||||||||
Other assets – indexed annuity ceded | |||||||||||||||||||||||||||||||||||
embedded derivatives | ( | ( | |||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts | ( | ( | |||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | $ | ( | $ | ( | $ |
For the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | ||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | ( | ( | |||||||||||||||||||||||||||||||||
ABS | ( | ||||||||||||||||||||||||||||||||||
State and municipal bonds | ( | ( | |||||||||||||||||||||||||||||||||
Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ( | |||||||||||||||||||||||||||||||||
Other assets – indexed annuity ceded | |||||||||||||||||||||||||||||||||||
embedded derivatives | |||||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts | ( | ( | |||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
For the Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | ||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||
ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||
Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Equity securities | ( | ( | |||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ( | ( | ||||||||||||||||||||||||||||||||
Derivative investments | ( | ||||||||||||||||||||||||||||||||||
Other assets – indexed annuity ceded | |||||||||||||||||||||||||||||||||||
embedded derivatives | ( | ( | |||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts | ( | ( | |||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ |
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | ||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
State and municipal bonds | ( | ( | |||||||||||||||||||||||||||||||||
RMBS | |||||||||||||||||||||||||||||||||||
CMBS | ( | ( | |||||||||||||||||||||||||||||||||
ABS | ( | ( | |||||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | |||||||||||||||||||||||||||||||||||
securities | ( | ( | |||||||||||||||||||||||||||||||||
Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | ( | ( | |||||||||||||||||||||||||||||||||
Other assets – indexed annuity ceded | |||||||||||||||||||||||||||||||||||
embedded derivatives | ( | ||||||||||||||||||||||||||||||||||
Policyholder account balances – | |||||||||||||||||||||||||||||||||||
RILA, fixed annuity and | |||||||||||||||||||||||||||||||||||
IUL contracts | ( | ( | |||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
Trading securities (1) | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Equity securities (1) | ( | ( | ( | ( | |||||||||||||||||||||||||
Mortgage loans on real estate (1) | ( | ( | ( | ( | |||||||||||||||||||||||||
Derivative investments (1) | ( | ( | |||||||||||||||||||||||||||
MRBs (2) | |||||||||||||||||||||||||||||
Funds withheld reinsurance liabilities – | |||||||||||||||||||||||||||||
reinsurance-related embedded derivatives (1) | |||||||||||||||||||||||||||||
Embedded derivatives – indexed annuity | |||||||||||||||||||||||||||||
and IUL contracts (1) | ( | ( | |||||||||||||||||||||||||||
Total, net | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||||||||||
Corporate bonds | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
State and municipal bonds | ||||||||||||||||||||||||||
ABS | ( | ( | ( | |||||||||||||||||||||||
Hybrid and redeemable preferred | ||||||||||||||||||||||||||
securities | ( | ( | ( | |||||||||||||||||||||||
Mortgage loans on real estate | ||||||||||||||||||||||||||
Total, net | $ | ( | $ | ( | $ | ( | $ |
For the Three Months Ended June 30, 2024 | For the Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers | Transfers | Transfers | Transfers | ||||||||||||||||||||||||||||||||||||||||||||||||||
Into | Out of | Into | Out of | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 | Level 3 | Total | Level 3 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | |||||||||||||||||||||||||||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | ( | $ | $ | ( | $ |
For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
Transfers | Transfers | Transfers | Transfers | ||||||||||||||||||||||||||||||||
Into | Out of | Into | Out of | ||||||||||||||||||||||||||||||||
Level 3 | Level 3 | Total | Level 3 | Level 3 | Total | ||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||||||||
State and municipal bonds | ( | ( | |||||||||||||||||||||||||||||||||
ABS | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Hybrid and redeemable preferred | |||||||||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||||||||
Derivative investments | ( | ( | |||||||||||||||||||||||||||||||||
Total, net | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( |
Weighted | |||||||||||||||||||||||||||||||||||||||||
Fair | Valuation | Significant | Assumption or | Average Input | |||||||||||||||||||||||||||||||||||||
Value | Technique | Unobservable Inputs | Input Ranges | Range (1) | |||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity AFS | |||||||||||||||||||||||||||||||||||||||||
securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | ||||||||||||||||||||||||||||||||||
ABS | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
CMBS | Discounted cash flow | Liquidity/duration adjustment (2) | % | — | % | % | |||||||||||||||||||||||||||||||||||
Hybrid and redeemable | |||||||||||||||||||||||||||||||||||||||||
preferred securities | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
Equity securities | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
MRB assets | |||||||||||||||||||||||||||||||||||||||||
Other assets – ceded MRBs | Discounted cash flow | Lapse (3) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||
Utilization of GLB withdrawals (4) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Claims utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Premiums utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Non-performance risk (6) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
Volatility (8) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Other assets – indexed | |||||||||||||||||||||||||||||||||||||||||
annuity ceded embedded | |||||||||||||||||||||||||||||||||||||||||
derivatives | Discounted cash flow | Lapse (3) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account | |||||||||||||||||||||||||||||||||||||||||
balances – indexed annuity | |||||||||||||||||||||||||||||||||||||||||
contracts embedded | |||||||||||||||||||||||||||||||||||||||||
derivatives | $ | ( | Discounted cash flow | Lapse (3) | % | – | % | (10) | |||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
MRB liabilities | ( | ||||||||||||||||||||||||||||||||||||||||
Other liabilities – ceded | |||||||||||||||||||||||||||||||||||||||||
MRBs | ( | Discounted cash flow | Lapse (3) | % | – | % | (10) | ||||||||||||||||||||||||||||||||||
Utilization of GLB withdrawals (4) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Claims utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Premiums utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Non-performance risk (6) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
Volatility (8) | % | – | % | % |
Weighted | |||||||||||||||||||||||||||||||||||||||||
Fair | Valuation | Significant | Assumption or | Average Input | |||||||||||||||||||||||||||||||||||||
Value | Technique | Unobservable Inputs | Input Ranges | Range (1) | |||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity AFS | |||||||||||||||||||||||||||||||||||||||||
securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | Discounted cash flow | Liquidity/duration adjustment (2) | ( | % | – | % | % | |||||||||||||||||||||||||||||||||
State and municipal | |||||||||||||||||||||||||||||||||||||||||
bonds | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
CMBS | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
ABS | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
Hybrid and redeemable | |||||||||||||||||||||||||||||||||||||||||
preferred securities | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
Equity securities | Discounted cash flow | Liquidity/duration adjustment (2) | % | – | % | % | |||||||||||||||||||||||||||||||||||
MRB assets | |||||||||||||||||||||||||||||||||||||||||
Other assets – ceded MRBs | Discounted cash flow | Lapse (3) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||
Utilization of GLB withdrawals (4) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Claims utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Premiums utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Non-performance risk (6) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
Volatility (8) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Other assets – indexed | |||||||||||||||||||||||||||||||||||||||||
annuity ceded embedded | |||||||||||||||||||||||||||||||||||||||||
derivatives | Discounted cash flow | Lapse (3) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account | |||||||||||||||||||||||||||||||||||||||||
balances – indexed annuity | |||||||||||||||||||||||||||||||||||||||||
contracts embedded | |||||||||||||||||||||||||||||||||||||||||
derivatives | $ | ( | Discounted cash flow | Lapse (3) | % | – | % | (10) | |||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
MRB liabilities | ( | ||||||||||||||||||||||||||||||||||||||||
Other liabilities – ceded | |||||||||||||||||||||||||||||||||||||||||
MRBs | ( | Discounted cash flow | Lapse (3) | % | – | % | (10) | ||||||||||||||||||||||||||||||||||
Utilization of GLB withdrawals (4) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Claims utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Premiums utilization factor (5) | % | – | % | (10) | |||||||||||||||||||||||||||||||||||||
Non-performance risk (6) | % | – | % | % | |||||||||||||||||||||||||||||||||||||
Mortality (7) | (9) | (10) | |||||||||||||||||||||||||||||||||||||||
Volatility (8) | % | – | % | % |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Shares Authorized | Shares Issued | Shares Outstanding | Shares Authorized | Shares Issued | Shares Outstanding | ||||||||||||||||||||||||||||||
Preferred Stock, Series C | |||||||||||||||||||||||||||||||||||
Series D | |||||||||||||||||||||||||||||||||||
Not designated | |||||||||||||||||||||||||||||||||||
Total preferred shares |
For the Three Months Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Dividend | Aggregate | Dividend | Aggregate | ||||||||||||||||||||
Series | Per Share | Dividend | Per Share | Dividend | |||||||||||||||||||
Series C | $ | $ | $ | $ | |||||||||||||||||||
Series D | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Dividend | Aggregate | Dividend | Aggregate | |||||||||||||||||||||||
Series | Per Share | Dividend | Per Share | Dividend | ||||||||||||||||||||||
Series C | $ | $ | $ | $ | ||||||||||||||||||||||
Series D | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance as of beginning-of-period | |||||||||||||||||||||||
Stock compensation/issued for benefit plans | |||||||||||||||||||||||
Balance as of end-of-period | |||||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (loss) available to common stockholders – basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Net income (loss) available to common stockholders – diluted | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted-average shares, as used in basic calculation | |||||||||||||||||||||||
Incremental common shares from assumed exercise or | |||||||||||||||||||||||
issuance of stock-based incentive compensation awards | |||||||||||||||||||||||
Average deferred compensation shares | |||||||||||||||||||||||
Weighted-average shares, as used in diluted calculation (1) | |||||||||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted | ( |
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain | |||||||||||
Other Investments | |||||||||||
Balance as of beginning-of-year | $ | ( | $ | ( | |||||||
Unrealized holding gains (losses) arising during the period | ( | ||||||||||
Change in foreign currency exchange rate adjustment | ( | ||||||||||
Change in future contract benefits and policyholder account balances, | |||||||||||
net of reinsurance | ( | ||||||||||
Income tax benefit (expense) | ( | ||||||||||
Less: | |||||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | ( | ( | |||||||||
Income tax benefit (expense) | |||||||||||
Balance as of end-of-period | $ | ( | $ | ( | |||||||
Unrealized Gain (Loss) on Derivative Instruments | |||||||||||
Balance as of beginning-of-year | $ | $ | |||||||||
Unrealized holding gains (losses) arising during the period | |||||||||||
Change in foreign currency exchange rate adjustment | ( | ||||||||||
Income tax benefit (expense) | ( | ( | |||||||||
Less: | |||||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | |||||||||||
Income tax benefit (expense) | ( | ( | |||||||||
Balance as of end-of-period | $ | $ | |||||||||
Market Risk Benefit Non-Performance Risk Gain (Loss) | |||||||||||
Balance as of beginning-of-year | $ | $ | |||||||||
Adjustment arising during the period | ( | ||||||||||
Income tax benefit (expense) | ( | ||||||||||
Balance as of end-of-period | $ | $ | |||||||||
Policyholder Liability Discount Rate Remeasurement Gain (Loss) | |||||||||||
Balance as of beginning-of-year | $ | $ | |||||||||
Adjustment arising during the period | ( | ||||||||||
Income tax benefit (expense) | ( | ||||||||||
Balance as of end-of-period | $ | $ | |||||||||
Foreign Currency Translation Adjustment | |||||||||||
Balance as of beginning-of-year | $ | ( | $ | ( | |||||||
Foreign currency translation adjustment arising during the period | ( | ||||||||||
Balance as of end-of-period | $ | ( | $ | ( | |||||||
Funded Status of Employee Benefit Plans | |||||||||||
Balance as of beginning-of-year | $ | ( | $ | ( | |||||||
Adjustment arising during the period | ( | ||||||||||
Balance as of end-of-period | $ | ( | $ | ( |
For the Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Unrealized Gain (Loss) on Fixed Maturity AFS | ||||||||||||||
Securities and Certain Other Investments | ||||||||||||||
Reclassification | $ | ( | $ | ( | Realized gain (loss) | |||||||||
Associated change in future contract benefits | Benefits | |||||||||||||
Reclassification before income tax benefit (expense) | ( | ( | Income (loss) before taxes | |||||||||||
Income tax benefit (expense) | Federal income tax expense (benefit) | |||||||||||||
Reclassification, net of income tax | $ | ( | $ | ( | Net income (loss) | |||||||||
Unrealized Gain (Loss) on Derivative Instruments | ||||||||||||||
Interest rate contracts | ( | Net investment income | ||||||||||||
Interest rate contracts | Interest and debt expense | |||||||||||||
Foreign currency contracts | Net investment income | |||||||||||||
Foreign currency contracts | ( | Realized gain (loss) | ||||||||||||
Reclassifications before income tax benefit (expense) | Income (loss) before taxes | |||||||||||||
Income tax benefit (expense) | ( | ( | Federal income tax expense (benefit) | |||||||||||
Reclassifications, net of income tax | $ | $ | Net income (loss) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Annuities | $ | $ | $ | $ | |||||||||||||||||||
Life Insurance | |||||||||||||||||||||||
Group Protection | |||||||||||||||||||||||
Retirement Plan Services | |||||||||||||||||||||||
Other Operations | |||||||||||||||||||||||
Revenue adjustments from annuity and life insurance product features | ( | ( | ( | ||||||||||||||||||||
Credit loss-related adjustments | ( | ( | ( | ( | |||||||||||||||||||
Investment gains (losses) (1) | ( | ( | ( | ( | |||||||||||||||||||
Changes in the fair value of reinsurance-related embedded derivatives, | |||||||||||||||||||||||
trading securities and certain mortgage loans (2) | ( | ||||||||||||||||||||||
Gains (losses) on other non-financial assets – sale of | |||||||||||||||||||||||
subsidiaries/businesses (3) | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Income (Loss) | |||||||||||||||||||||||
Income (loss) from operations: | |||||||||||||||||||||||
Annuities | $ | $ | $ | $ | |||||||||||||||||||
Life Insurance | ( | ( | |||||||||||||||||||||
Group Protection | |||||||||||||||||||||||
Retirement Plan Services | |||||||||||||||||||||||
Other Operations | ( | ( | ( | ( | |||||||||||||||||||
Net annuity product features, after-tax | ( | ||||||||||||||||||||||
Net life insurance product features, after-tax | ( | ( | ( | ||||||||||||||||||||
Credit loss-related adjustments, after-tax | ( | ( | ( | ( | |||||||||||||||||||
Investment gains (losses), after-tax (1) | ( | ( | ( | ( | |||||||||||||||||||
Changes in the fair value of reinsurance-related embedded derivatives, | |||||||||||||||||||||||
trading securities and certain mortgage loans, after-tax (2) | ( | ||||||||||||||||||||||
Transaction and integration costs related to mergers, | |||||||||||||||||||||||
acquisitions and divestitures, after-tax (4) | ( | ( | ( | ( | |||||||||||||||||||
Gains (losses) on other non-financial assets – sale of | |||||||||||||||||||||||
subsidiaries/businesses, after-tax (3) | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( |
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Assets | |||||||||||
Annuities | $ | $ | |||||||||
Life Insurance | |||||||||||
Group Protection | |||||||||||
Retirement Plan Services | |||||||||||
Other Operations | |||||||||||
Total assets | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||||||
Gross gains | $ | $ | $ | $ | |||||||||||||||||||
Gross losses | ( | ( | ( | ( | |||||||||||||||||||
Credit loss benefit (expense) (1) | ( | ( | ( | ||||||||||||||||||||
Intent to sell impairments (2) | ( | ( | |||||||||||||||||||||
Realized gain (loss) on equity securities (3) | ( | ( | |||||||||||||||||||||
Credit loss benefit (expense) on mortgage loans on real estate | ( | ( | ( | ( | |||||||||||||||||||
Credit loss benefit (expense) on reinsurance-related assets | ( | ( | |||||||||||||||||||||
Realized gain (loss) on the mark-to-market on certain | |||||||||||||||||||||||
instruments (4)(5) | ( | ( | |||||||||||||||||||||
Indexed product derivative results (6) | ( | ( | |||||||||||||||||||||
Derivative results (7) | ( | ( | ( | ||||||||||||||||||||
Realized gain (loss) on subsidiaries/businesses (8) | |||||||||||||||||||||||
Other realized gain (loss) | ( | ( | ( | ||||||||||||||||||||
Total realized gain (loss) | $ | $ | ( | $ | $ | ( |
Page | |||||
Quoted | |||||||||||||||||||||||
Prices | |||||||||||||||||||||||
in Active | |||||||||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||||
Assets | Inputs | Inputs | Total | ||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||||||
Priced by third-party pricing services | $ | 419 | $ | 75,927 | $ | 139 | $ | 76,485 | |||||||||||||||
Priced by independent broker quotations | – | – | 4,884 | 4,884 | |||||||||||||||||||
Priced by matrices | – | 16,985 | – | 16,985 | |||||||||||||||||||
Priced by other methods (1) | – | – | 207 | 207 | |||||||||||||||||||
Total | $ | 419 | $ | 92,912 | $ | 5,230 | $ | 98,561 | |||||||||||||||
Percent of total | 0% | 95% | 5% | 100% |
Annuities | Retirement Plan Services | ||||||||||||||||||||||
As of June 30, | As of June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
GLB NAR | $ | 1,564 | $ | 2,461 | $ | 1 | $ | 2 | |||||||||||||||
GDB NAR | 817 | 2,641 | 2 | 4 | |||||||||||||||||||
Total NAR | 2,278 | 4,861 | 3 | 6 |
Hypothetical | Hypothetical | |||||||||||||||||||||||||
Effect | Effect | |||||||||||||||||||||||||
Assumption / Input | Actual Experience | to MRB Liability | to Net Income | Description of Assumption / Input | ||||||||||||||||||||||
Equity market return | Increase / (Decrease) | (Decrease) / Increase | Increase / (Decrease) | Equity market return input represents impact based on movements in equity markets. | ||||||||||||||||||||||
Interest rate | Higher / Lower | (Decrease) / Increase | Increase / (Decrease) | Interest rate input represents impact based on movements in interest rates and impact to fixed-income assets. | ||||||||||||||||||||||
Volatility | Increase / (Decrease) | Increase / (Decrease) | (Decrease) / Increase | Volatility assumption represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of difference indices. | ||||||||||||||||||||||
Mortality | Increase / (Decrease) | (Decrease) / Increase | Increase / (Decrease) | Mortality represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. | ||||||||||||||||||||||
Mortality contracts with only GDB rider | Increase / (Decrease) | Increase / (Decrease) | (Decrease) / Increase | Mortality represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. | ||||||||||||||||||||||
Lapse | Higher / Lower | (Decrease) / Increase | Increase / (Decrease) | Lapse assumption represents the estimated probability of a contract surrendering during a year, thereby forgoing any future benefits. | ||||||||||||||||||||||
Benefit utilization | Higher / Lower | Increase / (Decrease) | (Decrease) / Increase | Benefit utilization assumption of guaranteed withdrawals represents the estimated percentage of policyholders that utilize the guaranteed withdrawal feature. |
In-Force Sensitivities | ||||||||||||||
Equity Market Return | -10% | +10% | ||||||||||||
Hypothetical effect to net income | $ | (950) | $ | 775 | ||||||||||
Interest Rates | -25 bps | +25 bps | ||||||||||||
Hypothetical effect to net income | $ | (425) | $ | 400 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Income (Loss) | |||||||||||||||||||||||
Income (loss) from operations: | |||||||||||||||||||||||
Annuities | $ | 297 | $ | 271 | $ | 556 | $ | 545 | |||||||||||||||
Life Insurance | (35) | 33 | (70) | 20 | |||||||||||||||||||
Group Protection | 130 | 109 | 210 | 180 | |||||||||||||||||||
Retirement Plan Services | 40 | 47 | 76 | 90 | |||||||||||||||||||
Other Operations | (102) | (106) | (336) | (193) | |||||||||||||||||||
Net annuity product features, after-tax | 198 | 822 | 1,337 | (195) | |||||||||||||||||||
Net life insurance product features, after-tax | 3 | (123) | (102) | (218) | |||||||||||||||||||
Credit loss-related adjustments, after-tax | (28) | (3) | (28) | (21) | |||||||||||||||||||
Investment gains (losses), after-tax (1) | (181) | (528) | (246) | (574) | |||||||||||||||||||
Changes in the fair value of reinsurance-related | |||||||||||||||||||||||
embedded derivatives, trading securities and | |||||||||||||||||||||||
certain mortgage loans, after-tax (2) | 158 | (4) | 312 | 3 | |||||||||||||||||||
Transaction and integration costs related to mergers, | |||||||||||||||||||||||
acquisitions and divestitures, after-tax (3) | (21) | (7) | (29) | (7) | |||||||||||||||||||
Gains (losses) on other non-financial assets – sale of | |||||||||||||||||||||||
subsidiaries/businesses, after-tax (4) | 436 | – | 436 | – | |||||||||||||||||||
Net income (loss) | $ | 895 | $ | 511 | $ | 2,116 | $ | (370) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Insurance premiums (1) | $ | 34 | $ | 54 | $ | 60 | $ | 92 | |||||||||||||||
Fee income | 587 | 546 | 1,167 | 1,086 | |||||||||||||||||||
Net investment income | 435 | 437 | 855 | 858 | |||||||||||||||||||
Amortization of deferred gain (loss) on business sold | |||||||||||||||||||||||
through reinsurance | 5 | 5 | 10 | 11 | |||||||||||||||||||
Other revenues (2) | 148 | 148 | 385 | 284 | |||||||||||||||||||
Total operating revenues | 1,209 | 1,190 | 2,477 | 2,331 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Benefits (1) | 38 | 69 | 64 | 132 | |||||||||||||||||||
Interest credited | 377 | 306 | 729 | 584 | |||||||||||||||||||
Policyholder liability remeasurement (gain) loss | 2 | (1) | 3 | (2) | |||||||||||||||||||
Commissions and other expenses | 441 | 506 | 1,012 | 1,007 | |||||||||||||||||||
Total operating expenses | 858 | 880 | 1,808 | 1,721 | |||||||||||||||||||
Income (loss) from operations before taxes | 351 | 310 | 669 | 610 | |||||||||||||||||||
Federal income tax expense (benefit) | 54 | 39 | 113 | 65 | |||||||||||||||||||
Income (loss) from operations | $ | 297 | $ | 271 | $ | 556 | $ | 545 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Fee Income | |||||||||||||||||||||||
Mortality, expense and other assessments (1) | $ | 569 | $ | 534 | $ | 1,131 | $ | 1,062 | |||||||||||||||
Surrender charges | 17 | 10 | 32 | 20 | |||||||||||||||||||
DFEL: | |||||||||||||||||||||||
Deferrals | (5) | (5) | (9) | (10) | |||||||||||||||||||
Amortization | 6 | 7 | 13 | 14 | |||||||||||||||||||
Total fee income | $ | 587 | $ | 546 | $ | 1,167 | $ | 1,086 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||
Fixed maturity AFS securities, mortgage loans on real | |||||||||||||||||||||||
estate and other, net of investment expenses | $ | 395 | $ | 402 | $ | 778 | $ | 791 | |||||||||||||||
Commercial mortgage loan prepayment and bond | |||||||||||||||||||||||
make-whole premiums (1) | – | – | 1 | 1 | |||||||||||||||||||
Surplus investments (2) | 36 | 34 | 67 | 64 | |||||||||||||||||||
Net investment income pertaining to broker-dealer services | 4 | 1 | 9 | 2 | |||||||||||||||||||
Total net investment income | $ | 435 | $ | 437 | $ | 855 | $ | 858 | |||||||||||||||
Interest Credited | |||||||||||||||||||||||
Amount provided to policyholders | $ | 374 | $ | 303 | $ | 723 | $ | 578 | |||||||||||||||
DSI deferrals | – | (1) | (1) | (2) | |||||||||||||||||||
Interest credited before DSI amortization | 374 | 302 | 722 | 576 | |||||||||||||||||||
DSI amortization | 3 | 4 | 7 | 8 | |||||||||||||||||||
Total interest credited | $ | 377 | $ | 306 | $ | 729 | $ | 584 |
As of or For the Three Months Ended June 30, | As of or For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Variable Annuity Account Balance Information (1) | |||||||||||||||||||||||
Variable annuity deposits | $ | 1,021 | $ | 743 | $ | 1,925 | $ | 1,368 | |||||||||||||||
Variable annuity net flows | (2,375) | (1,736) | (4,679) | (3,548) | |||||||||||||||||||
Variable annuity account balances | 116,770 | 110,998 | 116,770 | 110,998 | |||||||||||||||||||
Average daily variable annuity account balances | 116,437 | 108,607 | 115,440 | 108,369 | |||||||||||||||||||
Average daily S&P 500® Index (2) | 5,253 | 4,207 | 5,125 | 4,108 | |||||||||||||||||||
Fixed Annuity Account Balance Information (3) | |||||||||||||||||||||||
Fixed annuity deposits | $ | 2,802 | $ | 1,817 | $ | 4,747 | $ | 4,356 | |||||||||||||||
Fixed annuity net flows | 1,421 | 628 | 1,733 | 2,109 | |||||||||||||||||||
Fixed annuity account balances (4) | 43,099 | 41,078 | 43,099 | 41,078 | |||||||||||||||||||
Average fixed annuity account balances (4) | 41,933 | 39,653 | 41,091 | 38,945 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Commissions and Other Expenses | |||||||||||||||||||||||
Commissions: | |||||||||||||||||||||||
Deferrable | $ | 101 | $ | 87 | $ | 185 | $ | 172 | |||||||||||||||
Non-deferrable | 168 | 153 | 338 | 308 | |||||||||||||||||||
General and administrative expenses | 116 | 120 | 236 | 229 | |||||||||||||||||||
Expenses associated with reserve financing | |||||||||||||||||||||||
and LOC expenses | 4 | 3 | 10 | 6 | |||||||||||||||||||
Taxes, licenses and fees | 10 | 6 | 23 | 19 | |||||||||||||||||||
Total expenses incurred, excluding broker-dealer | 399 | 369 | 792 | 734 | |||||||||||||||||||
DAC deferrals | (115) | (100) | (213) | (199) | |||||||||||||||||||
Total pre-broker-dealer expenses incurred, | |||||||||||||||||||||||
excluding amortization | 284 | 269 | 579 | 535 | |||||||||||||||||||
DAC and VOBA amortization | 107 | 109 | 213 | 216 | |||||||||||||||||||
Broker-dealer expenses incurred | 50 | 128 | 220 | 256 | |||||||||||||||||||
Total commissions and other expenses | $ | 441 | $ | 506 | $ | 1,012 | $ | 1,007 | |||||||||||||||
DAC Deferrals | |||||||||||||||||||||||
As a percentage of sales/deposits | 3.0 | % | 3.9 | % | 3.2 | % | 3.5 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Insurance premiums (1) | $ | 293 | $ | 293 | $ | 580 | $ | 579 | |||||||||||||||
Fee income | 677 | 753 | 1,349 | 1,529 | |||||||||||||||||||
Net investment income | 533 | 707 | 1,114 | 1,394 | |||||||||||||||||||
Operating realized gain (loss) | (2) | (2) | (3) | (3) | |||||||||||||||||||
Amortization of deferred gain (loss) on | |||||||||||||||||||||||
business sold through reinsurance | (19) | 4 | (38) | 8 | |||||||||||||||||||
Other revenues | 29 | 5 | 50 | 10 | |||||||||||||||||||
Total operating revenues | 1,511 | 1,760 | 3,052 | 3,517 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Benefits | 948 | 1,073 | 1,876 | 2,225 | |||||||||||||||||||
Interest credited | 299 | 325 | 592 | 653 | |||||||||||||||||||
Policyholder liability remeasurement (gain) loss | 16 | 14 | 75 | 1 | |||||||||||||||||||
Commissions and other expenses | 299 | 313 | 610 | 626 | |||||||||||||||||||
Total operating expenses | 1,562 | 1,725 | 3,153 | 3,505 | |||||||||||||||||||
Income (loss) from operations before taxes | (51) | 35 | (101) | 12 | |||||||||||||||||||
Federal income tax expense (benefit) | (16) | 2 | (31) | (8) | |||||||||||||||||||
Income (loss) from operations | $ | (35) | $ | 33 | $ | (70) | $ | 20 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Fee Income | |||||||||||||||||||||||
Cost of insurance assessments | $ | 528 | $ | 577 | $ | 1,052 | $ | 1,177 | |||||||||||||||
Expense assessments | 348 | 372 | 686 | 740 | |||||||||||||||||||
Surrender charges | 7 | 6 | 17 | 15 | |||||||||||||||||||
DFEL: | |||||||||||||||||||||||
Deferrals | (277) | (266) | (544) | (528) | |||||||||||||||||||
Amortization | 71 | 64 | 138 | 125 | |||||||||||||||||||
Total fee income | $ | 677 | $ | 753 | $ | 1,349 | $ | 1,529 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Sales by Product | |||||||||||||||||||||||
IUL/UL | $ | 25 | $ | 28 | $ | 43 | $ | 62 | |||||||||||||||
MoneyGuard® | 34 | 23 | 58 | 44 | |||||||||||||||||||
VUL | 19 | 34 | 43 | 64 | |||||||||||||||||||
Term | 18 | 26 | 37 | 56 | |||||||||||||||||||
Executive Benefits | 9 | 12 | 16 | 27 | |||||||||||||||||||
Total sales | $ | 105 | $ | 123 | $ | 197 | $ | 253 | |||||||||||||||
Net Flows | |||||||||||||||||||||||
Deposits | $ | 1,229 | $ | 1,333 | $ | 2,438 | $ | 2,655 | |||||||||||||||
Withdrawals and deaths | (479) | (401) | (945) | (871) | |||||||||||||||||||
Net flows | $ | 750 | $ | 932 | $ | 1,493 | $ | 1,784 | |||||||||||||||
Policyholder Assessments | $ | 1,377 | $ | 1,358 | $ | 2,747 | $ | 2,724 |
As of June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Account Balances (1) | |||||||||||||||||||||||
General account | $ | 21,381 | $ | 31,931 | |||||||||||||||||||
Separate account | 22,010 | 18,604 | |||||||||||||||||||||
Total account balances | $ | 43,391 | $ | 50,535 | |||||||||||||||||||
In-Force Face Amount | |||||||||||||||||||||||
UL and other | $ | 365,030 | $ | 364,633 | |||||||||||||||||||
Term insurance | 719,485 | 719,361 | |||||||||||||||||||||
Total in-force face amount | $ | 1,084,515 | $ | 1,083,994 | |||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Average General Account Balances (1) | $ | 21,390 | $ | 31,970 | $ | 21,396 | $ | 32,021 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||
Fixed maturity AFS securities, mortgage loans on real estate | |||||||||||||||||||||||
and other, net of investment expenses | $ | 460 | $ | 596 | $ | 935 | $ | 1,194 | |||||||||||||||
Commercial mortgage loan prepayment and bond | |||||||||||||||||||||||
make-whole premiums (1) | 2 | 1 | 2 | 3 | |||||||||||||||||||
Alternative investments (2) | 32 | 68 | 106 | 114 | |||||||||||||||||||
Surplus investments (3) | 39 | 42 | 71 | 83 | |||||||||||||||||||
Total net investment income | $ | 533 | $ | 707 | $ | 1,114 | $ | 1,394 | |||||||||||||||
Interest Credited | $ | 299 | $ | 325 | $ | 592 | $ | 653 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Benefits and Policyholder Remeasurement (Gain) Loss | |||||||||||||||||||||||
Death claims direct and assumed | $ | 1,414 | $ | 1,321 | $ | 2,983 | $ | 2,789 | |||||||||||||||
Death claims ceded | (608) | (521) | (1,366) | (1,104) | |||||||||||||||||||
Reserves released on death | (163) | (141) | (308) | (313) | |||||||||||||||||||
Net death benefits | 643 | 659 | 1,309 | 1,372 | |||||||||||||||||||
Change in secondary guarantee life insurance product | |||||||||||||||||||||||
reserves | 96 | 186 | 194 | 390 | |||||||||||||||||||
Change in MoneyGuard® reserves | 129 | 127 | 269 | 249 | |||||||||||||||||||
Change in traditional product reserves | 51 | 74 | 88 | 117 | |||||||||||||||||||
Other benefits (1) | 45 | 41 | 91 | 98 | |||||||||||||||||||
Total benefits and policyholder remeasurement | |||||||||||||||||||||||
(gain) loss | $ | 964 | $ | 1,087 | $ | 1,951 | $ | 2,226 | |||||||||||||||
Death claims per $1,000 of in-force | 2.37 | 2.44 | 2.41 | 2.54 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Commissions and Other Expenses | |||||||||||||||||||||||
Commissions | $ | 113 | $ | 143 | $ | 226 | $ | 291 | |||||||||||||||
General and administrative expenses | 139 | 153 | 282 | 304 | |||||||||||||||||||
Expenses associated with reserve financing | 23 | 25 | 48 | 51 | |||||||||||||||||||
Taxes, licenses and fees | 31 | 38 | 68 | 76 | |||||||||||||||||||
Total expenses incurred | 306 | 359 | 624 | 722 | |||||||||||||||||||
DAC and VOBA deferrals | (133) | (170) | (266) | (343) | |||||||||||||||||||
Total expenses recognized before amortization | 173 | 189 | 358 | 379 | |||||||||||||||||||
DAC and VOBA amortization | 125 | 123 | 250 | 246 | |||||||||||||||||||
Other intangible amortization | 1 | 1 | 2 | 1 | |||||||||||||||||||
Total commissions and other expenses | $ | 299 | $ | 313 | $ | 610 | $ | 626 | |||||||||||||||
DAC and VOBA Deferrals | |||||||||||||||||||||||
As a percentage of sales | 126.7 | % | 138.2 | % | 135.0 | % | 135.6 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Insurance premiums | $ | 1,298 | $ | 1,263 | $ | 2,583 | $ | 2,514 | |||||||||||||||
Net investment income | 88 | 85 | 173 | 170 | |||||||||||||||||||
Other revenues (1) | 55 | 52 | 111 | 104 | |||||||||||||||||||
Total operating revenues | 1,441 | 1,400 | 2,867 | 2,788 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Benefits | 1,032 | 1,019 | 2,062 | 2,057 | |||||||||||||||||||
Interest credited | 1 | 1 | 2 | 2 | |||||||||||||||||||
Policyholder liability remeasurement (gain) loss | (124) | (121) | (191) | (220) | |||||||||||||||||||
Commissions and other expenses | 367 | 363 | 728 | 722 | |||||||||||||||||||
Total operating expenses | 1,276 | 1,262 | 2,601 | 2,561 | |||||||||||||||||||
Income (loss) from operations before taxes | 165 | 138 | 266 | 227 | |||||||||||||||||||
Federal income tax expense (benefit) | 35 | 29 | 56 | 47 | |||||||||||||||||||
Income (loss) from operations | $ | 130 | $ | 109 | $ | 210 | $ | 180 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Income (Loss) from Operations by Product Line | |||||||||||||||||||||||
Life | $ | 10 | $ | 23 | $ | 19 | $ | 20 | |||||||||||||||
Disability | 122 | 88 | 194 | 164 | |||||||||||||||||||
Dental | (2) | (2) | (3) | (4) | |||||||||||||||||||
Income (loss) from operations | $ | 130 | $ | 109 | $ | 210 | $ | 180 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Insurance Premiums by Product Line | |||||||||||||||||||||||
Life | $ | 502 | $ | 485 | $ | 1,001 | $ | 965 | |||||||||||||||
Disability | 750 | 731 | 1,490 | 1,457 | |||||||||||||||||||
Dental | 46 | 47 | 92 | 92 | |||||||||||||||||||
Total insurance premiums | $ | 1,298 | $ | 1,263 | $ | 2,583 | $ | 2,514 | |||||||||||||||
Sales by Product Line | |||||||||||||||||||||||
Life | 81 | 54 | $ | 167 | $ | 137 | |||||||||||||||||
Disability | 74 | 36 | 125 | 75 | |||||||||||||||||||
Dental | 6 | 6 | 14 | 12 | |||||||||||||||||||
Total sales | $ | 161 | $ | 96 | $ | 306 | $ | 224 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||
Fixed maturity AFS securities, mortgage loans on real estate | |||||||||||||||||||||||
and other, net of investment expenses | $ | 69 | $ | 67 | $ | 138 | $ | 134 | |||||||||||||||
Commercial mortgage loan prepayment and bond | |||||||||||||||||||||||
make-whole premiums (1) | – | – | – | 1 | |||||||||||||||||||
Surplus investments (2) | 19 | 18 | 35 | 35 | |||||||||||||||||||
Total net investment income | $ | 88 | $ | 85 | $ | 173 | $ | 170 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Benefits, Interest Credited and Policyholder | |||||||||||||||||||||||
Liability Remeasurement (Gain) Loss by | |||||||||||||||||||||||
Product Line | |||||||||||||||||||||||
Life | $ | 379 | $ | 347 | $ | 758 | $ | 733 | |||||||||||||||
Disability | 495 | 517 | 1,044 | 1,035 | |||||||||||||||||||
Dental | 35 | 35 | 71 | 71 | |||||||||||||||||||
Total benefits, interest credited and policyholder | |||||||||||||||||||||||
liability remeasurement (gain) loss | $ | 909 | $ | 899 | $ | 1,873 | $ | 1,839 | |||||||||||||||
Loss Ratios by Product Line | |||||||||||||||||||||||
Life | 75.6 | % | 71.6 | % | 75.8 | % | 76.0 | % | |||||||||||||||
Disability | 65.9 | % | 70.7 | % | 70.0 | % | 71.1 | % | |||||||||||||||
Dental | 78.9 | % | 76.9 | % | 77.7 | % | 76.6 | % | |||||||||||||||
Total | 70.1 | % | 71.3 | % | 72.5 | % | 73.1 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Commissions and Other Expenses | |||||||||||||||||||||||
Commissions | $ | 113 | $ | 112 | $ | 222 | $ | 218 | |||||||||||||||
General and administrative expenses | 227 | 213 | 437 | 423 | |||||||||||||||||||
Taxes, licenses and fees | 33 | 33 | 70 | 69 | |||||||||||||||||||
Total expenses incurred | 373 | 358 | 729 | 710 | |||||||||||||||||||
DAC deferrals | (42) | (28) | (71) | (53) | |||||||||||||||||||
Total expenses recognized before amortization | 331 | 330 | 658 | 657 | |||||||||||||||||||
DAC amortization | 28 | 25 | 54 | 49 | |||||||||||||||||||
Other intangible amortization | 8 | 8 | 16 | 16 | |||||||||||||||||||
Total commissions and other expenses | $ | 367 | $ | 363 | $ | 728 | $ | 722 | |||||||||||||||
DAC Deferrals | |||||||||||||||||||||||
As a percentage of insurance premiums | 3.2 | % | 2.2 | % | 2.7 | % | 2.1 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Fee income | $ | 72 | $ | 65 | $ | 142 | $ | 129 | |||||||||||||||
Net investment income | 247 | 259 | 491 | 514 | |||||||||||||||||||
Other revenues (1) | 8 | 10 | 16 | 18 | |||||||||||||||||||
Total operating revenues | 327 | 334 | 649 | 661 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Interest credited | 168 | 168 | 335 | 336 | |||||||||||||||||||
Commissions and other expenses | 113 | 111 | 226 | 219 | |||||||||||||||||||
Total operating expenses | 281 | 279 | 561 | 555 | |||||||||||||||||||
Income (loss) from operations before taxes | 46 | 55 | 88 | 106 | |||||||||||||||||||
Federal income tax expense (benefit) | 6 | 8 | 12 | 16 | |||||||||||||||||||
Income (loss) from operations | $ | 40 | $ | 47 | $ | 76 | $ | 90 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Fee Income | |||||||||||||||||||||||
Annuity expense assessments | $ | 53 | $ | 47 | $ | 104 | $ | 94 | |||||||||||||||
Mutual fund fees | 18 | 18 | 37 | 35 | |||||||||||||||||||
Total expense assessments | 71 | 65 | 141 | 129 | |||||||||||||||||||
Surrender charges | 1 | – | 1 | – | |||||||||||||||||||
Total fee income | $ | 72 | $ | 65 | $ | 142 | $ | 129 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||
Fixed maturity AFS securities, mortgage loans on real estate | |||||||||||||||||||||||
and other, net of investment expenses | $ | 228 | $ | 239 | $ | 454 | $ | 476 | |||||||||||||||
Commercial mortgage loan prepayment and | |||||||||||||||||||||||
bond make-whole premiums (1) | – | – | 1 | 1 | |||||||||||||||||||
Surplus investments (2) | 19 | 20 | 36 | 37 | |||||||||||||||||||
Total net investment income | $ | 247 | $ | 259 | $ | 491 | $ | 514 | |||||||||||||||
Interest Credited | $ | 168 | $ | 168 | $ | 335 | $ | 336 |
As of or For the Three Months Ended June 30, | As of or For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Variable Account Balance Information (1) | |||||||||||||||||||||||
Variable annuity deposits | $ | 504 | $ | 643 | $ | 1,055 | $ | 1,178 | |||||||||||||||
Variable annuity net flows | (270) | 107 | (447) | 63 | |||||||||||||||||||
Variable annuity account balances | 20,946 | 18,793 | 20,946 | 18,793 | |||||||||||||||||||
Average daily variable annuity account balances | 20,797 | 18,095 | 20,391 | 17,821 | |||||||||||||||||||
Average daily S&P 500® Index (2) | 5,253 | 4,207 | 5,125 | 4,108 | |||||||||||||||||||
Fixed Account Balance Information (3) | |||||||||||||||||||||||
Fixed annuity deposits | $ | 846 | $ | 616 | $ | 1,636 | $ | 1,317 | |||||||||||||||
Fixed annuity net flows | (226) | (365) | (639) | (777) | |||||||||||||||||||
Fixed annuity account balances | 23,598 | 24,430 | 23,598 | 24,430 | |||||||||||||||||||
Average fixed account balances | 23,550 | 24,810 | 23,605 | 24,925 | |||||||||||||||||||
Mutual Fund Account Balance Information | |||||||||||||||||||||||
Mutual fund deposits | $ | 1,932 | $ | 1,638 | $ | 4,393 | $ | 3,611 | |||||||||||||||
Mutual fund net flows | 299 | 459 | 1,280 | 1,450 | |||||||||||||||||||
Mutual fund account balances (4) | 63,328 | 53,363 | 63,328 | 53,363 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Flows By Market | |||||||||||||||||||||||
Small market | $ | 43 | $ | 99 | $ | 11 | $ | 246 | |||||||||||||||
Mid – large market | 206 | 408 | 1,053 | 1,119 | |||||||||||||||||||
Multi-Fund® and other | (446) | (306) | (870) | (629) | |||||||||||||||||||
Total net flows | $ | (197) | $ | 201 | $ | 194 | $ | 736 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Commissions and Other Expenses | |||||||||||||||||||||||
Commissions: | |||||||||||||||||||||||
Deferrable | $ | 1 | $ | 1 | $ | 2 | $ | 2 | |||||||||||||||
Non-deferrable | 25 | 20 | 47 | 41 | |||||||||||||||||||
General and administrative expenses | 83 | 85 | 168 | 167 | |||||||||||||||||||
Taxes, licenses and fees | 4 | 4 | 10 | 10 | |||||||||||||||||||
Total expenses incurred | 113 | 110 | 227 | 220 | |||||||||||||||||||
DAC deferrals | (5) | (5) | (10) | (10) | |||||||||||||||||||
Total expenses recognized before amortization | 108 | 105 | 217 | 210 | |||||||||||||||||||
DAC amortization | 5 | 6 | 9 | 9 | |||||||||||||||||||
Total commissions and other expenses | $ | 113 | $ | 111 | $ | 226 | $ | 219 | |||||||||||||||
DAC Deferrals | |||||||||||||||||||||||
As a percentage of annuity sales/deposits | 0.4% | 0.4% | 0.4% | 0.4% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Insurance premiums (1) | $ | 1 | $ | 2 | $ | 3 | $ | 7 | |||||||||||||||
Net investment income (2) | 27 | 38 | 43 | 73 | |||||||||||||||||||
Amortization of deferred gain (loss) on | |||||||||||||||||||||||
business sold through reinsurance | 2 | – | 3 | – | |||||||||||||||||||
Other revenues (3) | 9 | 6 | 17 | 10 | |||||||||||||||||||
Total operating revenues | 39 | 46 | 66 | 90 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Benefits | 4 | 14 | 11 | 36 | |||||||||||||||||||
Interest credited | 8 | 9 | 17 | 18 | |||||||||||||||||||
Policyholder liability remeasurement (gain) loss | 1 | 1 | – | – | |||||||||||||||||||
Other expenses | 69 | 73 | 295 | 112 | |||||||||||||||||||
Interest and debt expense | 86 | 84 | 167 | 166 | |||||||||||||||||||
Total operating expenses | 168 | 181 | 490 | 332 | |||||||||||||||||||
Income (loss) from operations before taxes | (129) | (135) | (424) | (242) | |||||||||||||||||||
Federal income tax expense (benefit) | (27) | (29) | (88) | (49) | |||||||||||||||||||
Income (loss) from operations | $ | (102) | $ | (106) | $ | (336) | $ | (193) | |||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
General and administrative expenses: | |||||||||||||||||||||||
Legal | $ | 1 | $ | – | $ | 116 | $ | (5) | |||||||||||||||
Branding | 11 | 11 | 23 | 24 | |||||||||||||||||||
Other (1) | 59 | 64 | 160 | 95 | |||||||||||||||||||
Total general and administrative expenses | 71 | 75 | 299 | 114 | |||||||||||||||||||
Taxes, licenses and fees (2) | (1) | (1) | (2) | (1) | |||||||||||||||||||
Other (3) | (1) | (1) | (2) | (1) | |||||||||||||||||||
Total other expenses | $ | 69 | $ | 73 | $ | 295 | $ | 112 |
Percentage of | |||||||||||||||||||||||
Total Investments | |||||||||||||||||||||||
As of June 30, | As of December 31, | As of June 30, | As of December 31, | ||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Investments | |||||||||||||||||||||||
Fixed maturity AFS securities | $ | 87,174 | $ | 88,738 | 68.9 | % | 71.4 | % | |||||||||||||||
Trading securities | 2,201 | 2,359 | 1.7 | % | 1.9 | % | |||||||||||||||||
Equity securities | 295 | 306 | 0.2 | % | 0.2 | % | |||||||||||||||||
Mortgage loans on real estate | 20,152 | 18,963 | 15.9 | % | 15.3 | % | |||||||||||||||||
Policy loans | 2,513 | 2,476 | 2.0 | % | 2.0 | % | |||||||||||||||||
Derivative investments | 8,608 | 6,474 | 6.8 | % | 5.2 | % | |||||||||||||||||
Alternative investments | 3,563 | 3,377 | 2.8 | % | 2.7 | % | |||||||||||||||||
Other investments | 2,089 | 1,638 | 1.7 | % | 1.3 | % | |||||||||||||||||
Total investments | $ | 126,595 | $ | 124,331 | 100.0 | % | 100.0 | % |
As of June 30, 2024 | |||||||||||||||||||||||||||||
Net | % | ||||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | Fair | ||||||||||||||||||||||||||
Cost (1) | Gains | Losses | Value | Value | |||||||||||||||||||||||||
Fixed Maturity AFS Securities | |||||||||||||||||||||||||||||
Industry corporate bonds: | |||||||||||||||||||||||||||||
Financial services | $ | 14,159 | $ | 97 | $ | 1,526 | $ | 12,730 | 14.6 | % | |||||||||||||||||||
Basic industry | 3,485 | 40 | 389 | 3,136 | 3.6 | % | |||||||||||||||||||||||
Capital goods | 6,244 | 51 | 757 | 5,538 | 6.4 | % | |||||||||||||||||||||||
Communications | 3,327 | 44 | 439 | 2,932 | 3.4 | % | |||||||||||||||||||||||
Consumer cyclical | 5,818 | 39 | 595 | 5,262 | 6.0 | % | |||||||||||||||||||||||
Consumer non-cyclical | 15,400 | 118 | 2,275 | 13,243 | 15.2 | % | |||||||||||||||||||||||
Energy | 3,140 | 25 | 347 | 2,818 | 3.2 | % | |||||||||||||||||||||||
Technology | 4,979 | 19 | 617 | 4,381 | 5.0 | % | |||||||||||||||||||||||
Transportation | 3,475 | 24 | 383 | 3,116 | 3.6 | % | |||||||||||||||||||||||
Industrial other | 2,419 | 4 | 420 | 2,003 | 2.3 | % | |||||||||||||||||||||||
Utilities | 12,657 | 73 | 1,786 | 10,944 | 12.6 | % | |||||||||||||||||||||||
Government-related entities | 1,403 | 17 | 210 | 1,210 | 1.4 | % | |||||||||||||||||||||||
Collateralized mortgage and other obligations (“CMOs”): | |||||||||||||||||||||||||||||
Agency backed | 1,224 | 2 | 165 | 1,061 | 1.2 | % | |||||||||||||||||||||||
Non-agency backed | 323 | 17 | 8 | 332 | 0.4 | % | |||||||||||||||||||||||
Mortgage pass through securities (“MPTS”): | |||||||||||||||||||||||||||||
Agency backed | 447 | 1 | 46 | 402 | 0.5 | % | |||||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”): | |||||||||||||||||||||||||||||
Non-agency backed | 1,722 | 2 | 182 | 1,542 | 1.8 | % | |||||||||||||||||||||||
Asset-backed securities (“ABS”): | |||||||||||||||||||||||||||||
Collateralized loan obligations (“CLOs”) | 8,490 | 20 | 370 | 8,140 | 9.3 | % | |||||||||||||||||||||||
Credit card | 123 | 5 | 1 | 127 | 0.1 | % | |||||||||||||||||||||||
Home equity | 167 | 27 | 2 | 192 | 0.2 | % | |||||||||||||||||||||||
Other | 4,764 | 23 | 174 | 4,613 | 5.3 | % | |||||||||||||||||||||||
Municipals: | |||||||||||||||||||||||||||||
Taxable | 2,928 | 27 | 422 | 2,533 | 2.9 | % | |||||||||||||||||||||||
Tax-exempt | 33 | – | 2 | 31 | 0.0 | % | |||||||||||||||||||||||
Government: | |||||||||||||||||||||||||||||
United States | 423 | 4 | 38 | 389 | 0.4 | % | |||||||||||||||||||||||
Foreign | 303 | 12 | 55 | 260 | 0.3 | % | |||||||||||||||||||||||
Hybrid and redeemable preferred securities | 231 | 21 | 13 | 239 | 0.3 | % | |||||||||||||||||||||||
Total fixed maturity AFS securities | 97,684 | 712 | 11,222 | 87,174 | 100.0 | % | |||||||||||||||||||||||
Trading Securities (2) | 2,356 | 39 | 194 | 2,201 | |||||||||||||||||||||||||
Equity Securities | 318 | 5 | 28 | 295 | |||||||||||||||||||||||||
Total fixed maturity AFS, trading and equity securities | $ | 100,358 | $ | 756 | $ | 11,444 | $ | 89,670 |
As of December 31, 2023 | |||||||||||||||||||||||||||||
Net | % | ||||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | Fair | ||||||||||||||||||||||||||
Cost (1) | Gains | Losses | Value | Value | |||||||||||||||||||||||||
Fixed Maturity AFS Securities | |||||||||||||||||||||||||||||
Industry corporate bonds: | |||||||||||||||||||||||||||||
Financial services | $ | 14,767 | $ | 133 | $ | 1,412 | $ | 13,488 | 15.2 | % | |||||||||||||||||||
Basic industry | 3,426 | 58 | 325 | 3,159 | 3.6 | % | |||||||||||||||||||||||
Capital goods | 6,143 | 83 | 591 | 5,635 | 6.4 | % | |||||||||||||||||||||||
Communications | 3,509 | 63 | 375 | 3,197 | 3.6 | % | |||||||||||||||||||||||
Consumer cyclical | 5,660 | 60 | 495 | 5,225 | 5.9 | % | |||||||||||||||||||||||
Consumer non-cyclical | 15,356 | 196 | 1,908 | 13,644 | 15.4 | % | |||||||||||||||||||||||
Energy | 3,331 | 38 | 309 | 3,060 | 3.4 | % | |||||||||||||||||||||||
Technology | 4,994 | 32 | 500 | 4,526 | 5.1 | % | |||||||||||||||||||||||
Transportation | 3,487 | 35 | 317 | 3,205 | 3.6 | % | |||||||||||||||||||||||
Industrial other | 2,296 | 7 | 370 | 1,933 | 2.2 | % | |||||||||||||||||||||||
Utilities | 12,683 | 121 | 1,484 | 11,320 | 12.8 | % | |||||||||||||||||||||||
Government-related entities | 1,425 | 26 | 186 | 1,265 | 1.4 | % | |||||||||||||||||||||||
CMOs: | |||||||||||||||||||||||||||||
Agency backed | 1,245 | 8 | 149 | 1,104 | 1.2 | % | |||||||||||||||||||||||
Non-agency backed | 332 | 19 | 10 | 341 | 0.4 | % | |||||||||||||||||||||||
MPTS: | |||||||||||||||||||||||||||||
Agency backed | 365 | 1 | 38 | 328 | 0.4 | % | |||||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||||||
Agency backed | 2 | – | – | 2 | 0.0 | % | |||||||||||||||||||||||
Non-agency backed | 1,620 | 5 | 203 | 1,422 | 1.6 | % | |||||||||||||||||||||||
ABS: | |||||||||||||||||||||||||||||
CLOs | 8,452 | 9 | 389 | 8,072 | 9.1 | % | |||||||||||||||||||||||
Credit card | 113 | 7 | 1 | 119 | 0.1 | % | |||||||||||||||||||||||
Home equity | 175 | 28 | 2 | 201 | 0.2 | % | |||||||||||||||||||||||
Other | 3,954 | 18 | 193 | 3,779 | 4.3 | % | |||||||||||||||||||||||
Municipals: | |||||||||||||||||||||||||||||
Taxable | 3,072 | 100 | 415 | 2,757 | 3.1 | % | |||||||||||||||||||||||
Tax-exempt | 34 | 1 | 2 | 33 | 0.0 | % | |||||||||||||||||||||||
Government: | |||||||||||||||||||||||||||||
United States | 416 | 6 | 29 | 393 | 0.4 | % | |||||||||||||||||||||||
Foreign | 314 | 16 | 47 | 283 | 0.3 | % | |||||||||||||||||||||||
Hybrid and redeemable preferred securities | 243 | 21 | 17 | 247 | 0.3 | % | |||||||||||||||||||||||
Total fixed maturity AFS securities | 97,414 | 1,091 | 9,767 | 88,738 | 100.0 | % | |||||||||||||||||||||||
Trading Securities (2) | 2,515 | 55 | 211 | 2,359 | |||||||||||||||||||||||||
Equity Securities | 340 | 8 | 42 | 306 | |||||||||||||||||||||||||
Total fixed maturity AFS, trading and equity securities | $ | 100,269 | $ | 1,154 | $ | 10,020 | $ | 91,403 |
As of June 30, 2024 | As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||
Rating Agency | Net | Net | ||||||||||||||||||||||||||||||||||||||||||
NAIC | Equivalent | Amortized | Fair | % of | Amortized | Fair | % of | |||||||||||||||||||||||||||||||||||||
Designation (1) | Designation (1) | Cost | Value | Total | Cost | Value | Total | |||||||||||||||||||||||||||||||||||||
Investment Grade Securities | ||||||||||||||||||||||||||||||||||||||||||||
1 | AAA / AA / A | $ | 57,915 | $ | 51,310 | 58.9 | % | $ | 56,557 | $ | 51,234 | 57.7 | % | |||||||||||||||||||||||||||||||
2 | BBB | 36,831 | 33,051 | 37.9 | % | 37,832 | 34,614 | 39.0 | % | |||||||||||||||||||||||||||||||||||
Total investment grade securities | 94,746 | 84,361 | 96.8 | % | 94,389 | 85,848 | 96.7 | % | ||||||||||||||||||||||||||||||||||||
Below Investment Grade Securities | ||||||||||||||||||||||||||||||||||||||||||||
3 | BB | 1,100 | 1,027 | 1.2 | % | 1,176 | 1,090 | 1.2 | % | |||||||||||||||||||||||||||||||||||
4 | B | 1,768 | 1,720 | 2.0 | % | 1,760 | 1,719 | 2.0 | % | |||||||||||||||||||||||||||||||||||
5 | CCC and lower | 65 | 61 | 0.0 | % | 86 | 78 | 0.1 | % | |||||||||||||||||||||||||||||||||||
6 | In or near default | 5 | 5 | 0.0 | % | 3 | 3 | 0.0 | % | |||||||||||||||||||||||||||||||||||
Total below investment grade securities | 2,938 | 2,813 | 3.2 | % | 3,025 | 2,890 | 3.3 | % | ||||||||||||||||||||||||||||||||||||
Total fixed maturity AFS securities | $ | 97,684 | $ | 87,174 | 100.0 | % | $ | 97,414 | $ | 88,738 | 100.0 | % |
Total securities below investment | ||||||||||||||||||||||||||||||||||||||||||||
grade as a percentage of total | ||||||||||||||||||||||||||||||||||||||||||||
fixed maturity AFS securities | 3.0 | % | 3.2 | % | 3.1 | % | 3.3 | % |
Agency | Prime | Alt-A | Subprime/ Option ARM (1) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Amortized Cost | Fair Value | Net Amortized Cost | Fair Value | Net Amortized Cost | Fair Value | Net Amortized Cost | Fair Value | Net Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Type | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 1,671 | $ | 1,462 | $ | 178 | $ | 176 | $ | 55 | $ | 60 | $ | 90 | $ | 97 | $ | 1,994 | $ | 1,795 | |||||||||||||||||||||||||||||||||||||||
ABS home equity | – | – | 16 | 16 | 12 | 18 | 139 | 158 | 167 | 192 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total by type (2)(3) | $ | 1,671 | $ | 1,462 | $ | 194 | $ | 192 | $ | 67 | $ | 78 | $ | 229 | $ | 255 | $ | 2,161 | $ | 1,987 | |||||||||||||||||||||||||||||||||||||||
Rating | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | $ | – | $ | – | $ | 102 | $ | 100 | $ | 2 | $ | 1 | $ | 5 | $ | 5 | $ | 109 | $ | 106 | |||||||||||||||||||||||||||||||||||||||
AA | 1,671 | 1,462 | 8 | 8 | 1 | 1 | 4 | 4 | 1,684 | 1,475 | |||||||||||||||||||||||||||||||||||||||||||||||||
A | – | – | 21 | 21 | 1 | 1 | 1 | 1 | 23 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||
BBB | – | – | 10 | 10 | 1 | 1 | 6 | 6 | 17 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||
BB and below | – | – | 53 | 53 | 62 | 74 | 213 | 239 | 328 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total by rating (2)(3)(4) | $ | 1,671 | $ | 1,462 | $ | 194 | $ | 192 | $ | 67 | $ | 78 | $ | 229 | $ | 255 | $ | 2,161 | $ | 1,987 | |||||||||||||||||||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 and prior | $ | 368 | $ | 347 | $ | 68 | $ | 69 | $ | 67 | $ | 78 | $ | 229 | $ | 255 | $ | 732 | $ | 749 | |||||||||||||||||||||||||||||||||||||||
2015 | 129 | 112 | 15 | 14 | – | – | – | – | 144 | 126 | |||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 381 | 312 | – | – | – | – | – | – | 381 | 312 | |||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 157 | 133 | – | – | – | – | – | – | 157 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 144 | 132 | – | – | – | – | – | – | 144 | 132 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 153 | 122 | – | – | – | – | – | – | 153 | 122 | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 90 | 77 | 3 | 3 | – | – | – | – | 93 | 80 | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 122 | 102 | 2 | 2 | – | – | – | – | 124 | 104 | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 82 | 80 | 58 | 56 | – | – | – | – | 140 | 136 | |||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 45 | 45 | 16 | 16 | – | – | – | – | 61 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | – | – | 32 | 32 | – | – | – | – | 32 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total by origination year (2)(3) | $ | 1,671 | $ | 1,462 | $ | 194 | $ | 192 | $ | 67 | $ | 78 | $ | 229 | $ | 255 | $ | 2,161 | $ | 1,987 |
Total fixed maturity AFS securities backed by pools of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
residential mortgages as a percentage of total fixed maturity AFS securities | 2.2 | % | 2.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total prime, Alt-A and subprime/option ARM as a percentage of total fixed maturity AFS securities | 0.5 | % | 0.6 | % |
Multiple Property | Single Property | Total | |||||||||||||||||||||||||||||||||
Net Amortized Cost | Fair Value | Net Amortized Cost | Fair Value | Net Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Type | |||||||||||||||||||||||||||||||||||
CMBS (1)(2) | $ | 1,609 | $ | 1,438 | $ | 113 | $ | 104 | $ | 1,722 | $ | 1,542 | |||||||||||||||||||||||
Rating | |||||||||||||||||||||||||||||||||||
AAA | $ | 1,065 | $ | 970 | $ | 50 | $ | 48 | $ | 1,115 | $ | 1,018 | |||||||||||||||||||||||
AA | 536 | 460 | 40 | 33 | 576 | 493 | |||||||||||||||||||||||||||||
A | 6 | 6 | 23 | 23 | 29 | 29 | |||||||||||||||||||||||||||||
BBB | – | – | – | – | – | – | |||||||||||||||||||||||||||||
BB and below | 2 | 2 | – | – | 2 | 2 | |||||||||||||||||||||||||||||
Total by rating (1)(2)(3) | $ | 1,609 | $ | 1,438 | $ | 113 | $ | 104 | $ | 1,722 | $ | 1,542 | |||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||
2014 and prior | $ | 24 | $ | 23 | $ | 9 | $ | 8 | $ | 33 | $ | 31 | |||||||||||||||||||||||
2015 | 22 | 21 | 4 | 4 | 26 | 25 | |||||||||||||||||||||||||||||
2016 | 72 | 66 | 1 | 1 | 73 | 67 | |||||||||||||||||||||||||||||
2017 | 191 | 179 | 8 | 7 | 199 | 186 | |||||||||||||||||||||||||||||
2018 | 140 | 134 | – | – | 140 | 134 | |||||||||||||||||||||||||||||
2019 | 322 | 290 | – | – | 322 | 290 | |||||||||||||||||||||||||||||
2020 | 254 | 210 | 3 | 3 | 257 | 213 | |||||||||||||||||||||||||||||
2021 | 258 | 206 | 28 | 23 | 286 | 229 | |||||||||||||||||||||||||||||
2022 | 153 | 137 | 26 | 24 | 179 | 161 | |||||||||||||||||||||||||||||
2023 | 108 | 107 | 14 | 14 | 122 | 121 | |||||||||||||||||||||||||||||
2024 | 65 | 65 | 20 | 20 | 85 | 85 | |||||||||||||||||||||||||||||
Total by origination year (1)(2) | $ | 1,609 | $ | 1,438 | $ | 113 | $ | 104 | $ | 1,722 | $ | 1,542 |
Total fixed maturity AFS securities backed by pools of | |||||||||||||||||||||||||||||||||||
commercial mortgages as a percentage of total fixed maturity AFS securities | 1.8 | % | 1.8 | % |
Net Amortized Cost | % Net Amortized Cost | Gross Unrealized Losses | % Gross Unrealized Losses | Fair Value | % Fair Value | ||||||||||||||||||||||||||||||
Electric | $ | 7,428 | 9.1 | % | $ | 1,212 | 10.8 | % | $ | 6,216 | 8.8 | % | |||||||||||||||||||||||
Healthcare | 6,009 | 7.4 | % | 1,186 | 10.6 | % | 4,823 | 6.9 | % | ||||||||||||||||||||||||||
Technology | 4,427 | 5.4 | % | 617 | 5.5 | % | 3,810 | 5.4 | % | ||||||||||||||||||||||||||
Food and beverage | 3,855 | 4.7 | % | 565 | 5.0 | % | 3,290 | 4.8 | % | ||||||||||||||||||||||||||
ABS | 7,864 | 9.6 | % | 529 | 4.7 | % | 7,335 | 10.4 | % | ||||||||||||||||||||||||||
Banking | 5,302 | 6.5 | % | 489 | 4.4 | % | 4,813 | 6.8 | % | ||||||||||||||||||||||||||
Local authorities | 2,281 | 2.8 | % | 430 | 3.8 | % | 1,851 | 2.6 | % | ||||||||||||||||||||||||||
Industrial – other | 2,184 | 2.7 | % | 425 | 3.8 | % | 1,759 | 2.5 | % | ||||||||||||||||||||||||||
Diversified manufacturing | 2,292 | 2.8 | % | 326 | 2.9 | % | 1,966 | 2.8 | % | ||||||||||||||||||||||||||
Pharmaceuticals | 2,350 | 2.9 | % | 320 | 2.8 | % | 2,030 | 2.9 | % | ||||||||||||||||||||||||||
Natural gas | 1,621 | 2.0 | % | 291 | 2.6 | % | 1,330 | 1.9 | % | ||||||||||||||||||||||||||
Brokerage asset management | 1,697 | 2.1 | % | 260 | 2.3 | % | 1,437 | 2.0 | % | ||||||||||||||||||||||||||
Retail | 1,697 | 2.1 | % | 258 | 2.3 | % | 1,439 | 2.0 | % | ||||||||||||||||||||||||||
Chemicals | 1,948 | 2.4 | % | 251 | 2.2 | % | 1,697 | 2.4 | % | ||||||||||||||||||||||||||
Transportation services | 2,007 | 2.5 | % | 233 | 2.1 | % | 1,774 | 2.5 | % | ||||||||||||||||||||||||||
Life insurance | 1,298 | 1.6 | % | 218 | 1.9 | % | 1,080 | 1.5 | % | ||||||||||||||||||||||||||
Aerospace and defense | 1,438 | 1.8 | % | 214 | 1.9 | % | 1,224 | 1.7 | % | ||||||||||||||||||||||||||
Property and casualty | 1,373 | 1.7 | % | 213 | 1.9 | % | 1,160 | 1.6 | % | ||||||||||||||||||||||||||
Utility – other | 1,131 | 1.4 | % | 189 | 1.7 | % | 942 | 1.3 | % | ||||||||||||||||||||||||||
Non-agency CMBS | 1,522 | 1.9 | % | 181 | 1.6 | % | 1,341 | 1.9 | % | ||||||||||||||||||||||||||
Consumer products | 1,101 | 1.3 | % | 171 | 1.5 | % | 930 | 1.3 | % | ||||||||||||||||||||||||||
Midstream | 1,491 | 1.8 | % | 165 | 1.5 | % | 1,326 | 1.9 | % | ||||||||||||||||||||||||||
Wirelines | 919 | 1.1 | % | 144 | 1.3 | % | 775 | 1.1 | % | ||||||||||||||||||||||||||
Railroads | 895 | 1.1 | % | 143 | 1.3 | % | 752 | 1.1 | % | ||||||||||||||||||||||||||
Government-sponsored | 483 | 0.6 | % | 135 | 1.2 | % | 348 | 0.5 | % | ||||||||||||||||||||||||||
Automotive | 1,580 | 1.9 | % | 133 | 1.2 | % | 1,447 | 2.1 | % | ||||||||||||||||||||||||||
Integrated | 689 | 0.8 | % | 121 | 1.1 | % | 568 | 0.8 | % | ||||||||||||||||||||||||||
Wireless | 746 | 0.9 | % | 119 | 1.1 | % | 627 | 0.9 | % | ||||||||||||||||||||||||||
Industries with unrealized losses | |||||||||||||||||||||||||||||||||||
less than $100 million | 13,998 | 17.1 | % | 1,684 | 15.0 | % | 12,314 | 17.6 | % | ||||||||||||||||||||||||||
Total by industry | $ | 81,626 | 100.0 | % | $ | 11,222 | 100.0 | % | $ | 70,404 | 100.0 | % |
Total by industry as a percentage of | |||||||||||||||||||||||||||||||||||
total fixed maturity AFS securities | 83.6 | % | 100.0 | % | 80.8 | % |
As of June 30, 2024 | |||||||||||||||||||||||
Commercial | Residential | Total | % | ||||||||||||||||||||
Credit Quality Indicator | |||||||||||||||||||||||
Current | $ | 17,492 | $ | 2,686 | $ | 20,178 | 99.5 | % | |||||||||||||||
Delinquent | 25 | 18 | 43 | 0.2 | % | ||||||||||||||||||
Foreclosure | 22 | 42 | 64 | 0.3 | % | ||||||||||||||||||
Total mortgage loans on real estate before allowance | 17,539 | 2,746 | 20,285 | 100.0 | % | ||||||||||||||||||
Allowance for credit losses | (93) | (40) | (133) | ||||||||||||||||||||
Total mortgage loans on real estate | $ | 17,446 | $ | 2,706 | $ | 20,152 |
As of December 31, 2023 | |||||||||||||||||||||||
Commercial | Residential | Total | % | ||||||||||||||||||||
Credit Quality Indicator | |||||||||||||||||||||||
Current | $ | 17,273 | $ | 1,742 | $ | 19,015 | 99.7 | % | |||||||||||||||
Delinquent | – | 21 | 21 | 0.1 | % | ||||||||||||||||||
Foreclosure | – | 41 | 41 | 0.2 | % | ||||||||||||||||||
Total mortgage loans on real estate before allowance | 17,273 | 1,804 | 19,077 | 100.0 | % | ||||||||||||||||||
Allowance for credit losses | (86) | (28) | (114) | ||||||||||||||||||||
Total mortgage loans on real estate | $ | 17,187 | $ | 1,776 | $ | 18,963 |
As of June 30, 2024 | As of December 31, 2023 | ||||||||||
Segment | |||||||||||
Annuities | $ | 7,875 | $ | 7,362 | |||||||
Life Insurance | 3,603 | 3,675 | |||||||||
Group Protection | 1,584 | 1,550 | |||||||||
Retirement Plan Services | 5,373 | 4,813 | |||||||||
Other Operations | 1,717 | 1,563 | |||||||||
Total mortgage loans on real estate | $ | 20,152 | $ | 18,963 |
Carrying Value | % | Carrying Value | % | ||||||||||||||||||||||||||
Property Type | State | ||||||||||||||||||||||||||||
Apartment | $ | 5,591 | 32.1 | % | CA | $ | 4,611 | 26.4 | % | ||||||||||||||||||||
Industrial | 4,795 | 27.5 | % | TX | 1,678 | 9.6 | % | ||||||||||||||||||||||
Office building | 3,284 | 18.8 | % | FL | 1,014 | 5.8 | % | ||||||||||||||||||||||
Retail | 2,689 | 15.4 | % | NY | 881 | 5.0 | % | ||||||||||||||||||||||
Other commercial | 788 | 4.5 | % | AZ | 880 | 5.0 | % | ||||||||||||||||||||||
Mixed use | 161 | 0.9 | % | PA | 796 | 4.6 | % | ||||||||||||||||||||||
Hotel/motel | 138 | 0.8 | % | WA | 704 | 4.0 | % | ||||||||||||||||||||||
Total | $ | 17,446 | 100.0 | % | MD | 687 | 4.0 | % | |||||||||||||||||||||
Geographic Region | GA | 654 | 3.7 | % | |||||||||||||||||||||||||
Pacific | 5,638 | 32.3 | % | TN | 533 | 3.1 | % | ||||||||||||||||||||||
South Atlantic | 3,762 | 21.6 | % | NC | 478 | 2.7 | % | ||||||||||||||||||||||
Middle Atlantic | 2,056 | 11.8 | % | VA | 425 | 2.4 | % | ||||||||||||||||||||||
West South Central | 1,817 | 10.4 | % | NJ | 379 | 2.2 | % | ||||||||||||||||||||||
Mountain | 1,511 | 8.7 | % | OH | 369 | 2.1 | % | ||||||||||||||||||||||
East North Central | 1,173 | 6.7 | % | WI | 351 | 2.0 | % | ||||||||||||||||||||||
East South Central | 658 | 3.8 | % | OR | 323 | 1.9 | % | ||||||||||||||||||||||
West North Central | 450 | 2.6 | % | UT | 306 | 1.8 | % | ||||||||||||||||||||||
New England | 352 | 2.0 | % | Non U.S. | 29 | 0.2 | % | ||||||||||||||||||||||
Non U.S. | 29 | 0.1 | % | All other states | 2,348 | 13.5 | % | ||||||||||||||||||||||
Total | $ | 17,446 | 100.0 | % | Total | $ | 17,446 | 100.0 | % |
As of June 30, 2024 | |||||||||||||||||||||||
Commercial | Residential | Total | % | ||||||||||||||||||||
Principal Repayment Year | |||||||||||||||||||||||
2024 | $ | 447 | $ | 28 | $ | 475 | 2.3 | % | |||||||||||||||
2025 | 1,042 | 224 | 1,266 | 6.2 | % | ||||||||||||||||||
2026 | 1,393 | 35 | 1,428 | 7.1 | % | ||||||||||||||||||
2027 | 1,868 | 35 | 1,903 | 9.4 | % | ||||||||||||||||||
2028 | 2,160 | 36 | 2,196 | 10.9 | % | ||||||||||||||||||
2029 and thereafter | 10,668 | 2,327 | 12,995 | 64.1 | % | ||||||||||||||||||
Total | $ | 17,578 | $ | 2,685 | $ | 20,263 | 100.0 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Annuities | $ | 1 | $ | 6 | $ | 3 | $ | 8 | |||||||||||||||
Life Insurance | 32 | 68 | 106 | 114 | |||||||||||||||||||
Group Protection | 1 | 3 | 2 | 5 | |||||||||||||||||||
Retirement Plan Services | 1 | 3 | 2 | 5 | |||||||||||||||||||
Other Operations | 1 | – | 1 | – | |||||||||||||||||||
Total (1) | $ | 36 | $ | 80 | $ | 114 | $ | 132 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||
Fixed maturity AFS securities | $ | 1,050 | $ | 1,217 | $ | 2,101 | $ | 2,423 | |||||||||||||||
Trading securities | 30 | 39 | 62 | 83 | |||||||||||||||||||
Equity securities | 10 | 2 | 14 | 6 | |||||||||||||||||||
Mortgage loans on real estate | 215 | 184 | 412 | 364 | |||||||||||||||||||
Policy loans | 24 | 26 | 49 | 52 | |||||||||||||||||||
Cash and invested cash | 42 | 36 | 79 | 62 | |||||||||||||||||||
Commercial mortgage loan prepayment | |||||||||||||||||||||||
and bond make-whole premiums (1) | 3 | 2 | 4 | 5 | |||||||||||||||||||
Alternative investments (2) | 36 | 80 | 114 | 132 | |||||||||||||||||||
Consent fees | – | 2 | – | 3 | |||||||||||||||||||
Other investments | 3 | (9) | 19 | (10) | |||||||||||||||||||
Investment income | 1,413 | 1,579 | 2,854 | 3,120 | |||||||||||||||||||
Investment expense | (81) | (71) | (175) | (146) | |||||||||||||||||||
Net investment income | $ | 1,332 | $ | 1,508 | $ | 2,679 | $ | 2,974 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Interest Rate Yield | |||||||||||||||||||||||
Fixed maturity AFS securities, mortgage loans on | |||||||||||||||||||||||
real estate and other, net of investment expenses | 4.05 | % | 4.07 | % | 4.02 | % | 4.05 | % | |||||||||||||||
Commercial mortgage loan prepayment and | |||||||||||||||||||||||
bond make-whole premiums | 0.00 | % | 0.01 | % | 0.00 | % | 0.01 | % | |||||||||||||||
Alternative investments | 0.11 | % | 0.23 | % | 0.18 | % | 0.19 | % | |||||||||||||||
Net investment income yield on invested assets | 4.16 | % | 4.31 | % | 4.20 | % | 4.25 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash Dividends from Subsidiaries | |||||||||||||||||||||||
The Lincoln National Life Insurance Company | $ | 15 | $ | 155 | $ | 195 | $ | 260 | |||||||||||||||
Lincoln National Reinsurance Company (Barbados) Limited | – | – | – | 100 | |||||||||||||||||||
Total cash dividends from subsidiaries | $ | 15 | $ | 155 | $ | 195 | $ | 360 | |||||||||||||||
Interest from Subsidiaries | |||||||||||||||||||||||
Interest on inter-company notes | $ | 37 | $ | 36 | $ | 77 | $ | 72 |
Beginning Balance | Issuance | Maturities, Repayments and Refinancing | Change in Fair Value Hedges | Other Changes (1) | Ending Balance | ||||||||||||||||||||||||||||||
Short-Term Debt | |||||||||||||||||||||||||||||||||||
Current maturities of long-term debt (2) | $ | 250 | $ | – | $ | (100) | $ | – | $ | 300 | $ | 450 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||
Senior notes | 4,491 | 350 | – | (23) | (310) | 4,508 | |||||||||||||||||||||||||||||
Subordinated notes (3) | 995 | – | – | – | – | 995 | |||||||||||||||||||||||||||||
Capital securities (3) | 213 | – | – | – | – | 213 | |||||||||||||||||||||||||||||
Total long-term debt | $ | 5,699 | $ | 350 | $ | – | $ | (23) | $ | (310) | $ | 5,716 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Series C preferred stock dividends | $ | – | $ | – | $ | 23 | $ | 13 | |||||||||||||||
Series D preferred stock dividends | 11 | 11 | 23 | 23 | |||||||||||||||||||
Total preferred stock dividends | $ | 11 | $ | 11 | $ | 46 | $ | 36 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Dividends to common stockholders | $ | 77 | $ | 76 | $ | 153 | $ | 152 | |||||||||||||||
Total cash returned to common stockholders | $ | 77 | $ | 76 | $ | 153 | $ | 152 | |||||||||||||||
(c) Total Number | (d) Approximate Dollar | |||||||||||||||||||||||||
(a) Total | of Shares | Value of Shares | ||||||||||||||||||||||||
Number | (b) Average | Purchased as Part of | that May Yet Be | |||||||||||||||||||||||
of Shares | Price Paid | Publicly Announced | Purchased Under the | |||||||||||||||||||||||
Period | Purchased | per Share | Plans or Programs (1) | Plans or Programs (1) | ||||||||||||||||||||||
4/1/24 – 4/30/24 | - | $ | – | - | $ | 714 | ||||||||||||||||||||
5/1/24 – 5/31/24 | - | - | - | 714 | ||||||||||||||||||||||
6/1/24 – 6/30/24 | - | - | - | 714 |
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
LINCOLN NATIONAL CORPORATION | ||||||||
By: | /s/ Christopher Neczypor | |||||||
Christopher Neczypor Executive Vice President and Chief Financial Officer | ||||||||
By: | /s/ Adam Cohen | |||||||
Adam Cohen Senior Vice President, Chief Accounting Officer and Treasurer | ||||||||
Dated: August 1, 2024 |
Dated: August 1, 2024 | /s/ Ellen G. Cooper | ||||
Name: Ellen G. Cooper | |||||
Title: President and Chief Executive Officer |
Dated: August 1, 2024 | /s/ Christopher Neczypor | ||||
Name: Christopher Neczypor | |||||
Title: Executive Vice President and Chief Financial Officer |
Dated: August 1, 2024 | /s/ Ellen G. Cooper | ||||
Name: Ellen G. Cooper | |||||
Title: President and Chief Executive Officer |
Dated: August 1, 2024 | /s/ Christopher Neczypor | ||||
Name: Christopher Neczypor | |||||
Title: Executive Vice President and Chief Financial Officer |
Nature of Operations and Basis of Presentation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations Lincoln National Corporation and its subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments: Annuities, Life Insurance, Group Protection and Retirement Plan Services. In addition, we include financial data for operations that are not directly related to our business segments in Other Operations. The collective group of businesses uses “Lincoln Financial Group” as its marketing identity. Through our business segments, we sell a wide range of wealth accumulation, wealth protection, group protection and retirement income products and solutions. These products primarily include variable annuities, fixed annuities (including indexed), registered index-linked annuities (“RILA”), universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, group life, disability and dental and employer-sponsored retirement plans and services. For more information on our segments and the products and solutions we provide, see Note 16. Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2023 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Interim results for the six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. All material inter-company accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the presentation adopted in the current period. We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by reportable segment as follows:
The variable annuities level of aggregation includes RILA products, which are indexed variable annuities. The fixed annuities level of aggregation represents deferred fixed annuities. We have excluded amounts reported in Other Operations from our disaggregated disclosures that are attributable to the indemnity reinsurance agreements with Protective Life Insurance Company (“Protective”) and Swiss Re Life & Health America, Inc (“Swiss Re”) as these contracts are fully reinsured, run-off institutional pension business in the form of group annuity and the results of certain disability income business and are not reflected in the results of the reportable segments listed above. Sale of Wealth Management Business On May 6, 2024, we closed the previously announced sale of all of the ownership interests in the subsidiaries of the Company that comprise the Company’s wealth management business to Osaic Holdings, Inc., a Delaware corporation (“Osaic”), pursuant to the Stock Purchase Agreement entered into between LNC and Osaic on December 14, 2023 (the “Agreement”). Pursuant to the Agreement, the Company sold its ownership interests in the following subsidiaries: Lincoln Financial Securities Corporation, Lincoln Financial Advisors Corporation, California Fringe Benefit and Insurance Marketing Corporation, LFA, Limited Liability Company and LFA Management Corporation (collectively, the “Wealth Management Business”). We received $725 million in cash upon closing, subject to customary post-close adjustments that are not expected to be material, and recognized a $558 million pre-tax realized gain for the three months ended June 30, 2024, net of transaction expenses. Transaction expenses for the three and six months ended June 30, 2024, of $26 million and $35 million, respectively, were reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). The sale provided approximately $650 million of statutory capital benefit. For more information, see Note 17.
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New Accounting Standards |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards In the current period, we did not adopt any new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board that were material in presentation or amount. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new ASUs that may have an impact on our consolidated financial statements when adopted. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.
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Investments |
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Investments | Investments Fixed Maturity AFS Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:
The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2024, were as follows:
Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
(1) As of June 30, 2024, and December 31, 2023, we recognized $18 million and $8 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:
(1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $1.5 billion for the six months ended June 30, 2024. As discussed further below, we do not believe the unrealized loss position as of June 30, 2024, required an impairment recognized in earnings as: (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of June 30, 2024, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of June 30, 2024, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to rising interest rates and widening credit spreads since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of June 30, 2024, and December 31, 2023, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of June 30, 2024, and December 31, 2023, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $2.9 billion and $3.0 billion, respectively, and a fair value of $2.8 billion. Based upon the analysis discussed above, we believe that as of June 30, 2024, and December 31, 2023, we would have recovered the amortized cost of each corporate bond. As of June 30, 2024, the unrealized losses associated with our mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) were attributable primarily to rising interest rates and widening credit spreads since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security. As of June 30, 2024, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:
(1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of June 30, 2024 and 2023, accrued investment income on fixed maturity AFS securities totaled $906 million and $1.1 billion, respectively, and was excluded from the estimate of credit losses. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions):
(1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of June 30, 2024, and December 31, 2023, $30 million and less than $1 million, respectively, of such mortgage loans on real estate were 90 or more days past due. See Note 13 for additional information. Losses from loan modifications were $3 million and less than $1 million for the three months ended June 30, 2024 and 2023, respectively, and $3 million and less than $1 million for the six months ended June 30, 2024 and 2023, respectively, reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers:
We use loan-to-value (“LTV”) and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:
We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:
Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:
(1) We recognized less than $1 million and $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2024 and 2023, respectively, and $1 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $81 million and $53 million as of June 30, 2024 and 2023, respectively, and was excluded from the estimate of credit losses. Alternative Investments As of June 30, 2024, and December 31, 2023, alternative investments included investments in 362 and 352 different partnerships, respectively, and represented approximately 3% of total investments. Impairments on Fixed Maturity AFS Securities Details underlying intent to sell impairments and credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:
(1) The three and six months ended June 30, 2023, include impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company's intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction. Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:
(1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash or fixed maturity AFS securities. This also includes interest payable on collateral. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of June 30, 2024, and December 31, 2023, we were not participating in any open repurchase agreements. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:
We have elected not to offset our securities lending transactions in the consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:
We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of June 30, 2024, the fair value of this collateral received that we are permitted to sell or re-pledge was $25 million, and we had not re-pledged any of this collateral to cover our collateral requirements. We also accept collateral from derivative counterparties in the form of securities that we are permitted to sell or re-pledge. As of June 30, 2024, the fair value of this collateral received that we are permitted to sell or re-pledge was $1.0 billion, and we had re-pledged $60 million of this collateral to cover our collateral requirements. We have also pledged fixed maturity AFS securities to derivative counterparties with a fair value of $36 million as of June 30, 2024. Investment Commitments As of June 30, 2024, our investment commitments were $4.1 billion, which included $3.1 billion of limited partnerships (“LPs”), $595 million of mortgage loans on real estate and $401 million of private placement securities. Concentrations of Financial Instruments As of June 30, 2024, and December 31, 2023, our most significant investments in one issuer were our investments in securities issued by the Federal National Mortgage Association with a fair value of $793 million and $739 million, respectively, or 1% of total investments, and our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $559 million and $570 million, respectively, or less than 1% and 1%, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of June 30, 2024, our most significant investments in one industry were our investments in securities in the consumer non-cyclical industry and financial services industry with a fair value of $13.4 billion and $13.2 billion, respectively, or 11% and 10%, respectively, of total investments. As of December 31, 2023, our most significant investments in one industry were our investments in securities in the financial services industry and consumer non-cyclical industry with a fair value of $14.0 billion and $13.8 billion, respectively, or 11% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.
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Variable Interest Entities | Variable Interest Entities Consolidated VIEs Asset information (dollars in millions) for the consolidated variable interest entities (“VIEs”) included on the Consolidated Balance Sheets was as follows:
There were no gains or losses for consolidated VIEs recognized on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023. Unconsolidated VIEs Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on the Consolidated Balance Sheets. For information about these structured securities, see Note 3. Limited Partnerships and Limited Liability Companies We invest in certain LPs and limited liability companies (“LLCs”) that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on the Consolidated Balance Sheets and were $4.7 billion and $4.2 billion as of June 30, 2024, and December 31, 2023, respectively.
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 13 for additional disclosures related to the fair value of our derivative instruments. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps to hedge the interest rate exposure within our annuity and life insurance products. Interest Rate Cap Corridors We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain annuity contracts and life insurance products. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments on certain variable-rate long-term debt and other variable-rate bonds held by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed-rate long-term debt and fixed maturity securities due to interest rate risks. Bond Forwards and Treasury and Reverse Treasury Locks We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use bond forwards and reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate. We also use foreign currency swaps designated and qualifying as cash flow and fair value hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. Foreign Currency Forwards We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate. Equity Market Contracts We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: Call Options Based on the S&P 500® Index and Other Indices We use call options to hedge the liability exposure on certain options in variable annuity, RILA, fixed indexed annuity, IUL and VUL products. Our RILA, fixed indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index or other indices. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity, RILA and VUL products. Put options are contracts that require the buyers to pay at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps We use total return swaps to hedge the liability exposure on certain options in variable annuity, RILA and VUL products. In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Commodity Contracts We use commodity contracts to economically hedge certain investments that are closely tied to the changes in commodity values. The commodity contract is an over-the-counter contract that combines a purchase put/sold call to lock in a commodity price within a predetermined range in exchange for a net premium. Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Buying Protection We use credit default swaps (“CDSs”) to hedge the liability exposure on certain options in variable annuity products. We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. CDSs – Selling Protection We use CDSs to hedge the liability exposure on certain options in variable annuity products. We sell CDSs to offer credit protection to policyholders and investors. The CDSs hedge the policyholders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Embedded Derivatives We have embedded derivatives that include: RILA, Fixed Indexed Annuity and IUL Contracts Embedded Derivatives Our RILA, fixed indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500® Index or other indices. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance-Related Embedded Derivatives We have certain modified coinsurance and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. Primary Risks Managed by Derivatives We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows:
(1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements. (2) Reported in funds withheld reinsurance liabilities on the Consolidated Balance Sheets. (3) Reported in policyholder account balances and deposit assets on the Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows:
(1) As of June 30, 2024, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067. (2) As of June 30, 2024, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061. The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:
(1) Includes $(318) million and $(326) million of unamortized adjustments from discontinued hedges as of June 30, 2024, and December 31, 2023, respectively. The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows:
(1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss). (3) The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:
As of June 30, 2024, $101 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the six months ended June 30, 2024 and 2023, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. As of June 30, 2024 and December 31, 2023, we did not have any exposure related to CDSs for which we are the seller. Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk. The non-performance risk is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of June 30, 2024, the non-performance risk adjustment was zero. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under nearly all ISDA agreements, our insurance subsidiaries have agreed to maintain certain financial strength ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of June 30, 2024, or December 31, 2023. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows:
Balance Sheet Offsetting Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows:
(1) Excludes excess non-cash collateral received of $1.3 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $51 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.
(1) Excludes excess non-cash collateral received of $1.3 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $82 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.
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DAC, VOBA, DSI and DFEL |
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Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL The following table reconciles deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets:
The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets:
(1) We reported $257 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023. (2) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $47 million and $44 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023, respectively. The following tables summarize the changes in DAC (in millions):
DAC amortization expense of $252 million and $501 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, respectively, and $247 million and $492 million, respectively, for the corresponding periods in 2023. The following tables summarize the changes in VOBA (in millions):
VOBA amortization expense of $12 million and $25 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, respectively, and $14 million and $28 million, respectively, for the corresponding periods in 2023. No additions or write-offs were recorded for each respective period. The following tables summarize the changes in DSI (in millions):
DSI amortization expense of $4 million and $8 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, respectively, and $4 million and $9 million, respectively, for the corresponding periods in 2023. The following tables summarize the changes in DFEL (in millions):
DFEL amortization of $77 million and $151 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, respectively, and $71 million and $140 million, respectively, for the corresponding periods in 2023.
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Reinsurance |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance | Reinsurance Fortitude Re Effective October 1, 2023, we entered into two reinsurance agreements with Fortitude Reinsurance Company Ltd. (“Fortitude Re”), an authorized Bermuda reinsurer with reciprocal jurisdiction reinsurer status in Indiana, to reinsure certain blocks of in-force UL with secondary guarantees (“ULSG”), MoneyGuard® and fixed annuity products, including group pension annuities. Fortitude Re represents our largest reinsurance exposure as of June 30, 2024, and December 31, 2023. The first agreement was structured as a coinsurance treaty between us and Fortitude Re for the ULSG and fixed annuities blocks. As significant insurance risk was transferred for ULSG products and life-contingent annuities, amounts recoverable from Fortitude Re were $10.5 billion as of June 30, 2024, and December 31, 2023. We reported a deferred loss on the transaction of $2.6 billion and $2.7 billion as of June 30, 2024, and December 31, 2023, respectively. We amortized $22 million and $44 million of the deferred loss during the three and six months ended June 30, 2024, respectively. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we reported deposit assets for these contracts of $3.7 billion and $4.2 billion as of June 30, 2024, and December 31, 2023, respectively. The second agreement was structured as coinsurance with funds withheld for the MoneyGuard block; however, as we retained significant insurance risk under the agreement, we reported deposit assets of $7.9 billion and $7.8 billion as of June 30, 2024, and December 31, 2023, respectively. In this coinsurance with funds withheld reinsurance agreement, we as the ceding company withhold, and therefore retain, the assets backing the deposit assets. We held investments with a carrying value of $9.3 billion and $9.9 billion in support of reserves associated with the Fortitude Re transaction in a funds withheld arrangement as of June 30, 2024, and December 31, 2023, respectively, which consisted of the following (in millions):
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MRBs |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MRBs | MRBs The following table reconciles market risk benefits (“MRBs”) (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets:
The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions):
(1) Consists primarily of changes in MRB assets and liabilities related to differences between separate account fund performance and modeled indices and other changes such as actual to expected policyholder behavior. (2) Net amount at risk (“NAR”) is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For guaranteed living benefits (“GLBs”), the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. See “MRBs” in Note 13 for details related to our fair value judgments, assumptions, inputs and valuation methodology.
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Separate Accounts |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Separate Accounts Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Separate Accounts | Separate Accounts The following table presents the fair value of separate account assets (in millions) reported on the Consolidated Balance Sheets by major investment category:
The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets:
(1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($48 million and $46 million as of June 30, 2024, and December 31, 2023, respectively) that are excluded from the following tables. The following table summarizes the balances of and changes in separate account liabilities (in millions):
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Policyholder Account Balances |
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Policyholder Account Balance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder Account Balance | Policyholder Account Balances The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets:
(1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.6 billion and $4.9 billion as of June 30, 2024, and December 31, 2023, respectively) that are excluded from the following tables. The following table summarizes the balances and changes in policyholder account balances (in millions):
(1) NAR is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit rider exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. (2) Calculation is based on total account balances and includes both policyholder account balances and separate account balances. The following table presents policyholder account balances (in millions) by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between the interest being credited to policyholders and the respective guaranteed contract minimums:
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Future Contract Benefits |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Contract Benefits | Future Contract Benefits The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:
(1) See liability for future policy benefits (“LFPB”) below for further information. (2) See “Liability for Future Claims” below for further information. (3) See “Additional Liabilities for Other Insurance Benefits” below for further information. (4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.4 billion and $5.6 billion as of June 30, 2024, and December 31, 2023, respectively) and Swiss Re ($2.1 billion and $2.2 billion as of June 30, 2024, and December 31, 2023, respectively) that are excluded from the following tables. (5) Represents other miscellaneous reserves that are not representative of long-duration contracts and are excluded from the following tables. LFPB The following table summarizes the balances of and changes in the present values of expected net premiums and LFPB (in millions, except years):
(1) Includes deferred profit liability within Payout Annuities of $61 million and $53 million as of June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024 and 2023, Traditional Life and Payout Annuities did not have any significantly different actual experience compared to expected. The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):
The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
The following table summarizes the weighted-average interest rates:
Liability for Future Claims The following table summarizes the balances of and changes in liability for future claims (in millions, except years):
For the six months ended June 30, 2024, we experienced more favorable claim terminations and reported incidence than assumed. For the six months ended June 30, 2023, we experienced more favorable reported incidence and claim terminations than assumed. The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):
The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
The following table summarizes the weighted-average interest rates:
Additional Liabilities for Other Insurance Benefits The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):
(1) Increase in reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023, for certain blocks of in-force ULSG. See Note 7 for more information on the transaction. For the six months ended June 30, 2024, we had unfavorable actual mortality experience compared to expected. For the six months ended June 30, 2023, we did not have any significantly different actual experience compared to expected. The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
The following table summarizes the weighted-average interest rates:
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Debt |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Changes in debt (in millions) were as follows:
(1) Term loan uses a Secured Overnight Financing Rate (“SOFR”)-based interest rate, plus transition spread of 10 basis points and credit spread of 112.5 basis points.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows:
Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on the Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy. Separate Account Assets Separate account assets are primarily carried at fair value. A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy. Policyholder Account Balances Policyholder account balances include account balances of certain investment contracts. The fair value of the account balances of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of these policyholder account balances are classified as Level 3 within the fair value hierarchy. Other Liabilities Other liabilities include remaining guaranteed interest and similar contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of June 30, 2024, and December 31, 2023, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The inputs used to measure the fair value of these other liabilities are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Fair Value Option Mortgage loans on real estate, net of allowance for credit losses, as reported on the Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on the Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy. The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:
As of June 30, 2024, and December 31, 2023, no loans for which the fair value option was elected were in non-accrual status, and none were more than 90 days past due and still accruing interest. Financial Instruments Carried at Fair Value We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2024, or December 31, 2023. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:
(1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 8.
(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:
The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
(1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:
Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and six months ended June 30, 2024 and 2023, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2024:
The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2023:
(1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period. (4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal. (6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. (7) The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index. (9) The mortality is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. The embedded derivative liability associated with Fortitude Re was excluded from the above table. As discussed in Note 7, this embedded derivative liability was created through a coinsurance with funds withheld reinsurance agreement where the investments supporting the reinsurance agreement were withheld by and continue to be reported on the Consolidated Balance Sheet. This reinsurance-related embedded derivative is valued as a total return swap with reference to the fair value of the investments held by us. Accordingly, the unobservable inputs utilized in the valuation of the reinsurance-related embedded derivative are a component of the investments supporting the reinsurance agreement that are reported on the Consolidated Balance Sheet. Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows: •Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement. •Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse or mortality inputs would have resulted in a decrease in the fair value measurement. •MRBs – Assuming our MRBs are in a liability position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in a decrease in the fair value measurement, except for policies with guaranteed death benefit (“GDB”) riders only, in which case an increase in mortality inputs would have resulted in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary.
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Contingencies and Commitments |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Contingencies Reinsurance Disputes Certain reinsurers have sought rate increases on certain yearly renewable term agreements. We are disputing the requested rate increases under these agreements. We may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, legal proceedings against us. While this may impact the Life Insurance segment, we believe it is unlikely the outcome of these disputes would have a material impact on the consolidated financial statements. Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, the Financial Industry Regulatory Authority, tax authorities and other regulatory bodies regularly make inquiries and conduct examinations, investigations or audits concerning our compliance with, among other things, insurance laws, securities laws, tax laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. Tax-related matters can include disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto. LNC is involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNC in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of June 30, 2024. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of June 30, 2024, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $150 million, after-tax. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters. For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates (“Cost of Insurance and Other Litigation”), as described below. No accrual has been made for some of these matters. Although a loss is believed to be reasonably possible for these matters, for some of these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on the consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact. Cost of Insurance and Other Litigation Cost of Insurance Litigation Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company, filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on The Lincoln National Life Insurance Company (“LNL”) on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed plaintiff’s complaint in its entirety. In response, plaintiff filed a motion for leave to amend the complaint, which, on September 25, 2023, the court granted in part and denied in part. Plaintiff filed an amended complaint on October 10, 2023. On March 7, 2024, the parties entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in the Glover case, which also includes all policies in the lawsuits captioned Iwanski v. First Penn-Pacific Life Insurance Company, TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, each of which are described below. The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and a hearing on the motion was held on July 30, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). As of March 31, 2024, we had accrued the total provisional settlement amount of $147.5 million, pre-tax. Iwanski v. First Penn-Pacific Life Insurance Company (“FPP”), No. 2:18-cv-01573 filed in the U.S. District Court for the Eastern District of Pennsylvania is a putative class action that was filed on April 13, 2018. Plaintiff alleges that defendant FPP breached the terms of his life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued by FPP containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuits captioned TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York (both discussed below). The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and a hearing on the motion was held on July 30, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). A motion has been filed to stay the proceedings in this matter pending the completion of the settlement approval process in Glover. TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company, filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuits captioned Iwanski v. First Penn-Pacific Life Insurance Company (discussed above) and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York (discussed below). The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and a hearing on the motion was held on July 30, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). A motion has been filed to stay the proceedings in this matter pending the completion of the settlement approval process in Glover. Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that Lincoln Life & Annuity Company of New York (“LLANY”) charged more for non-guaranteed cost of insurance than was permitted by the policies. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. On April 19, 2023, LLANY filed a motion for summary judgment. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuits captioned Iwanski v. First Penn-Pacific Life Insurance Company and TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company (both discussed above). The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and a hearing on the motion was held on July 30, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). On March 29, 2024, the court issued its summary judgment decision, granting LLANY’s motion in part and denying it in part, and entering summary judgment against twenty-two policyholders that the court determined were not economically harmed. On June 25, 2024, the court granted LLANY’s April 12, 2024, motion to stay proceedings in this matter pending the completion of the approval process in Glover. Angus v. The Lincoln National Life Insurance Company, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:22-cv-01878, is a putative class action filed on May 13, 2022. Plaintiff alleges that defendant LNL breached the terms of her life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued or insured by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. On August 26, 2022, LNL filed a motion to dismiss. We are vigorously defending this matter. On May 7, 2024, the U.S. District Court for the Eastern District of Pennsylvania consolidated for all purposes four previously disclosed civil actions: EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company, No. 17-cv-02592-GJP (E.D. Pa.) filed on February 1, 2017; LSH CO, et al. v. Lincoln National Corp., et al., No. 18-cv-05529-GJP (E.D. Pa.), filed on December 21, 2018; Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company, No. 2:23-cv-2251-GJP (E.D. Pa.), filed on April 20, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on June 12, 2023); and Ryan K. Crayne, on behalf of and as trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company, No. 2:24-cv-00053-GJP, filed on November 17, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on January 4, 2024), and one additional pending civil action, Conestoga Trust, et al. v. Lincoln National Corp., et al., No. 18-cv-02379-GJP (E.D. Pa.), filed on June 6, 2018. In each case other than Crayne, plaintiffs purport to own universal life insurance policies or interests in universal life insurance policies originally issued by Jefferson-Pilot (now LNL). In Crayne, plaintiffs purport to own litigation claims concerning universal life policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs in each case allege that LNL (or, in LSH Co. and Conestoga, LNL and LNC) breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016 (or, in Brighton Trustees and LSH Co., in 2016 and 2017). We are vigorously defending these consolidated matters. Other Litigation Andrew Nitkewicz v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:20-cv-06805, is a putative class action that was filed on August 24, 2020. Plaintiff Andrew Nitkewicz, as trustee of the Joan C. Lupe Trust, seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and for which planned annual, semi-annual, or quarterly premiums were paid for any period beyond the end of the policy month of the insured’s death. Plaintiff alleges LLANY failed to refund unearned premium in violation of New York Insurance Law Section 3203(a)(2) in connection with the payment of death benefit claims for certain insurance policies. Plaintiff seeks compensatory damages and pre-judgment interest on behalf of the various classes and sub-class. On July 2, 2021, the court granted, with prejudice, LLANY’s November 2020 motion to dismiss this matter. Plaintiff filed a notice of appeal on July 28, 2021, and on September 26, 2022, the U.S. Court of Appeals for the Second Circuit reserved its decision and certified a question to the New York Court of Appeals. On October 20, 2022, the New York Court of Appeals accepted the question. On October 19, 2023, the New York Court of Appeals answered the question in LLANY’s favor and transmitted the decision to the U.S. Court of Appeals for the Second Circuit. Plaintiff sought, and was granted, supplemental briefing before the U.S. Court of Appeals for the Second Circuit with respect to certain aspects of the New York Court of Appeals’ decision. The supplemental briefing was completed January 23, 2024. We are vigorously defending this matter. Henry Morgan et al. v. Lincoln National Corporation d/b/a Lincoln Financial Group, et al, filed in the District Court of the 14th Judicial District of Dallas County, Texas, No. DC-23-02492, is a putative class action that was filed on February 22, 2023. Plaintiffs Henry Morgan, Susan Smith, Charles Smith, Laura Seale, Terri Cogburn, Laura Baesel, Kathleen Walton, Terry Warner, and Toni Hale (“Plaintiffs”) allege on behalf of a putative class that Lincoln National Corporation d/b/a Lincoln Financial Group, LNL and LLANY (together, “Lincoln”), FMR, LLC, and Fidelity Product Services, LLC (“Fidelity”) created and marketed misleading and deceptive insurance products with attributes of investment products. The putative class comprises all individuals and entities who purchased Lincoln OptiBlend products that allocated account monies to the 1-Year Fidelity AIM Dividend Participation Account, between January 1, 2020, to December 31, 2022. Plaintiffs assert the following claims individually and on behalf of the class, (1) violations of the Texas Deceptive Trade Practices Act against Lincoln; (2) common-law fraud against Lincoln; (3) negligent misrepresentation against Lincoln and Fidelity; and (4) aiding and abetting fraud against Fidelity. Plaintiffs allege they suffered damages from “a missed investment return of approximately 5-6%” and mitigation damages. They seek actual, consequential and punitive damages, as well as pre-judgment and post-judgment interest, attorney’s fees, and litigation costs. On March 31, 2023, the Lincoln defendants filed a notice of removal removing the action from the 14th Judicial District of Dallas County, Texas, to the United States District Court for the Northern District of Texas, Dallas Division. On May 8, 2023, the Lincoln defendants and the Fidelity defendants filed motions to dismiss, which remain pending. We are vigorously defending this matter. Donald C. Meade v. Lincoln National Corporation, Ellen Cooper, Dennis Glass, and Randal Freitag (“Defendants”), No. 2:24-cv-01704, pending in the U.S. District Court for the Eastern District of Pennsylvania, is a putative class action that was filed on April 23, 2024. On June 24, 2024, Local 295 IBT Employer Group Pension Trust Fund (“Local 295”) filed a motion for appointment as lead plaintiff. Local 295 seeks to represent persons and entities that purchased or otherwise acquired Lincoln National securities between November 4, 2020, and November 2, 2022, inclusive. Plaintiff alleges claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, and under SEC Rule 10b-5. Plaintiff alleges that, throughout the putative class period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects. Plaintiff alleges that Defendants failed to disclose to investors: (i) that the Company was experiencing a decline in its VUL business; (ii) that, as a result, the goodwill associated with the life insurance business was overstated; (iii) that, as a result, the Company’s policy lapse assumptions were outdated; (iv) that, as a result, the Company’s reserves were overstated; (v) that, as a result, the Company’s reported financial results and financial statements were misstated; and (vi) that, as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. The action seeks unspecified compensatory damages and attorney’s fees and costs. We are vigorously defending this matter. Lawrence Hollin, derivatively on behalf of Nominal Defendant Lincoln National Corporation v. Ellen G. Cooper, Dennis R. Glass, Randal J. Freitag, Deirdre P Connelly, William H. Cunningham, Reginald E. Davis, Eric G. Johnson, Gary C. Kelly, M. Leanne Lachman, Dale Lefebvre, Janet Liang, Michael F. Mee, Lynn M. Utter and Patrick S. Pittard (“Individual Defendants”) and Lincoln National Corporation (“Nominal Defendant”), No. 2:24-cv-02713, pending in the U.S. District Court for the Eastern District of Pennsylvania, is a complaint that was filed on June 20, 2024. Plaintiff Lawrence Hollin brings this verified stockholder derivative complaint purportedly on behalf of Nominal Defendant Lincoln National Corporation against the Individual Defendants, inter alia, for alleged breaches of fiduciary duties between at least November 4, 2020, and November 2, 2022 inclusive, and for alleged violations of the federal securities laws caused by the issuance of allegedly materially false and misleading statements issued, or caused to be issued, by the Individual Defendants in the Company’s SEC filings and other public statements. Plaintiff Hollin alleges claims against the Individual Defendants for violations of section 14(a) of the Exchange Act, 15 U.S.C. section 78n(a) and Rule 14a-9 (17 C.F.R. section 240.14a-9); for breach of fiduciary duties; for aiding and abetting breach of fiduciary duty; for unjust enrichment; and for waste of corporate assets. Plaintiff Hollin alleges that the Individual Defendants failed to disclose to investors: (i) that the Company was experiencing a decline in its VUL business; (ii) that, as a result, the goodwill associated with the life insurance business was overstated; (iii) that, as a result, the Company’s policy lapse assumptions were outdated; (iv) that, as a result, the Company’s reserves were overstated; (v) that, as a result, the Company’s reported financial results and financial statements were misstated; and (vi) that, as a result, the Individual Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. Plaintiff Hollin alleges that the Company thereby suffered loss, injury, and damage. Among other relief, the action seeks, in favor of the Company, damages sustained by the Company, punitive damages and attorney’s fees and costs. The Individual Defendants are vigorously defending this matter. Robert R. Wiersum, derivatively on behalf of Lincoln National Corporation v. Ellen G. Cooper, Dennis R. Glass, Randal J. Freitag, Deirdre P Connelly, William H. Cunningham, Reginald E. Davis, Eric G. Johnson, Gary C. Kelly, M. Leanne Lachman, Dale Lefebvre, Janet Liang, Michael F. Mee, Lynn M. Utter and Patrick S. Pittard (“Individual Defendants”) and Lincoln National Corporation (“Nominal Defendant”), No. 2:24-cv-03251, pending in the U.S. District Court for the Eastern District of Pennsylvania, is a complaint that was filed on July 23, 2024. Plaintiff Robert R. Wiersum brings this verified stockholder derivative complaint purportedly on behalf of Nominal Defendant Lincoln National Corporation against the Individual Defendants, inter alia, for alleged breaches of fiduciary duties between at least November 4, 2020, and the date of the filing, inclusive, and for alleged violations of the federal securities laws caused by the issuance of allegedly materially false and misleading statements issued, or caused to be issued, by the Individual Defendants in the Company’s SEC filings and other public statements. Plaintiff Wiersum alleges claims against the Individual Defendants for violations of section 14(a) of the Exchange Act, 15 U.S.C. section 78n(a) and Rule 14a-9 (17 C.F.R. section 240.14a-9); for breach of fiduciary duties; for unjust enrichment; and for waste of corporate assets. Plaintiff Wiersum alleges that the Individual Defendants failed to disclose to investors: (i) that the Company was experiencing a decline in its VUL business; (ii) that, as a result, the goodwill associated with the life insurance business was overstated; (iii) that, as a result, the Company’s policy lapse assumptions were outdated; (iv) that, as a result, the Company’s reserves were overstated; (v) that, as a result, the Company’s reported financial results and financial statements were misstated; and (vi) that, as a result, the Individual Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. Plaintiff Wiersum alleges that the Company thereby suffered loss, injury, and damage. Among other relief, the action seeks, in favor of the Company, damages sustained by the Company and attorney’s fees and costs. The Individual Defendants will vigorously defend this matter. Tax Assessment Proceeding Lincoln National Life Insurance Company v. Township of Radnor, pending in the Court of Common Pleas of Delaware County, Pennsylvania Civil Division, No. 2022-001894, is a de novo appeal filed by LNL on March 21, 2022, regarding a September 30, 2021, Notice of Tax Assessment issued by the Township of Radnor to LNL for additional business privilege tax (“BPT”) for the years 2014-2019/2020 estimate. The assessment was based on an audit undertaken by a third-party auditor and consultant to the Township of Radnor, following a periodic business review of LNL undertaken by the same individual in 2018. The assessment is comprised of taxes, interest and penalties for the period in question. LNL filed a motion for summary judgment, that was denied by the court and trial has been scheduled for October 2024. We are vigorously defending this matter.
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares and Stockholders' Equity | Shares and Stockholders’ Equity Preferred Shares Preferred stock authorized, issued and outstanding (number of shares) was as follows:
The per share and aggregate dividends declared for preferred stock by series (in millions except per share data) was as follows:
Common Shares The changes in our common stock (number of shares) were as follows:
Our common stock is without par value. Earnings Per Share The calculation of earnings per share (“EPS”) was as follows (in millions except per share data):
(1) Due to reporting a net loss for the six months ended June 30, 2023, basic shares were used in the diluted EPS calculation for this period as the use of diluted shares would have resulted in a lower loss per share. In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above. We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to all or a portion of their deferral amounts. This obligation is settled in either cash or LNC stock pursuant to the applicable plan document. We exclude deferred units of LNC stock that are antidilutive from our diluted EPS calculation. The mark-to-market adjustment of these deferred units excluded from our diluted EPS calculation was less than $1 million and $(2) million for the three months ended June 30, 2024 and 2023, respectively, and $(3) million and $2 million for the six months ended June 30, 2024 and 2023, respectively. AOCI The following summarizes the components and changes in AOCI (in millions):
The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss):
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Segment Information |
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Segment Information | Segment Information We provide products and services and report results through our Annuities, Life Insurance, Group Protection and Retirement Plan Services segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our CODMs view and manage the business. A discussion of these segments and Other Operations is found in Note 20 to the Consolidated Financial Statements in our 2023 Form 10-K. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: •Items related to annuity product features, which include changes in MRBs, including gains and losses and benefit payments, changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with the hedge program (collectively, “net annuity product features”); •Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”); •Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”); •Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”); •Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”); •Income (loss) from the initial adoption of new accounting standards, regulations and policy changes; •Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; •Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; •Gains (losses) on modification or early extinguishment of debt; •Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and •Income (loss) from discontinued operations. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: •Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts and the associated index options we hold to hedge them (collectively, “revenue adjustments from annuity and life insurance product features”); •Credit loss-related adjustments; •Investment gains (losses); •Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans; •Revenue adjustments from the initial adoption of new accounting standards; •Amortization of deferred gains arising from reserve changes on business sold through reinsurance; and •Gains (losses) on other non-financial assets. We use our prevailing corporate federal income tax rate of 21%, where applicable, net of the impacts related to dividends-received deduction and foreign tax credits and any other permanent differences for events recognized differently in our consolidated financial statements and federal income tax returns. The tables below reconcile our segment measures of performance to the GAAP measures presented on the Consolidated Statements of Comprehensive Income (Loss) (in millions):
(1) The three and six months ended June 30, 2023, include impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction. See Notes 3 and 7 for additional information. (2) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7. (3) For information on the sale of our wealth management business, including the statutory capital benefit, see Note 1. (4) Includes costs pertaining to the sale of our wealth management business and the fourth quarter 2023 reinsurance transaction. For more information, see Notes 1 and 7, respectively. Other segment information (in millions) was as follows:
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Realized Gain (Loss) |
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Realized Gain (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, VUL derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance-related embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is also net of allocations of investment gains and losses to certain policyholders, certain funds withheld on reinsurance arrangements and certain modified coinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows:
(1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) The three and six months ended June 30, 2023, include impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction. See Notes 3 and 7 for additional information. (3) Includes mark-to-market adjustments on equity securities still held of $4 million and $(13) million for the three months ended June 30, 2024 and 2023, respectively, and $16 million and $(27) million for the six months ended June 30, 2024 and 2023, respectively. (4) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. (5) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of less than $3 million and $(3) million for the three months ended June 30, 2024 and 2023, respectively, and $3 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (6) Represents the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts, and the associated index options to hedge policyholder index allocations applicable to future reset periods for our indexed annuity products. (7) Includes the change in the fair value of the derivative instruments we own to support capital needs associated with our GLB and GDB riders net of fee income allocated to support the cost of purchasing the hedging instruments. (8) See “Sale of Wealth Management Business” in Note 1.
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Federal Income Taxes |
6 Months Ended |
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Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 18% and 19% for the three and six months ended June 30, 2024, respectively, compared to 15% and 35%, respectively, for the corresponding periods in 2023. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21% due to benefits from preferential tax items including the separate account dividends-received deduction and tax credits. For the three and six months ended June 30, 2024, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of preferential tax items. For the three months ended June 30, 2023, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of preferential tax items. For the six months ended June 30, 2023, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to a tax benefit at 21% from pre-tax losses in addition to the effects of preferential tax items.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net income (loss) | $ 895 | $ 511 | $ 2,116 | $ (370) |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Basis of Presentation (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements.
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Segment Reporting | We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by reportable segment as follows:
The variable annuities level of aggregation includes RILA products, which are indexed variable annuities. The fixed annuities level of aggregation represents deferred fixed annuities. We have excluded amounts reported in Other Operations from our disaggregated disclosures that are attributable to the indemnity reinsurance agreements with Protective Life Insurance Company (“Protective”) and Swiss Re Life & Health America, Inc (“Swiss Re”) as these contracts are fully reinsured, run-off institutional pension business in the form of group annuity and the results of certain disability income business and are not reflected in the results of the reportable segments listed above.
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New Accounting Standards | Adoption of New Accounting Standards In the current period, we did not adopt any new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board that were material in presentation or amount. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new ASUs that may have an impact on our consolidated financial statements when adopted. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.
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Nature of Operations and Basis of Presentation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by reportable segment as follows:
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New Accounting Standards (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | The following table provides a description of future adoptions of new ASUs that may have an impact on our consolidated financial statements when adopted. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.
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Investments (Tables) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-Sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:
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Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2024, were as follows:
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Schedule of Available-for-Sale Securities Unrealized Loss Position | The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
(1) As of June 30, 2024, and December 31, 2023, we recognized $18 million and $8 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:
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Debt Securities, Available-for-Sale | Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:
(1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of June 30, 2024 and 2023, accrued investment income on fixed maturity AFS securities totaled $906 million and $1.1 billion, respectively, and was excluded from the estimate of credit losses.
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Composition of Current and Past Due Mortgage Loans on Real Estate | The following provides the current and past due composition of our mortgage loans on real estate (in millions):
(1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of June 30, 2024, and December 31, 2023, $30 million and less than $1 million, respectively, of such mortgage loans on real estate were 90 or more days past due. See Note 13 for additional information.
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Amortized Cost of Mortgage Loans on Real Estate on Nonaccrual Status | The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers:
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Financing Receivable Credit Quality Indicators | The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:
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Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate | Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:
(1) We recognized less than $1 million and $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2024 and 2023, respectively, and $1 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $81 million and $53 million as of June 30, 2024 and 2023, respectively, and was excluded from the estimate of credit losses.
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Credit Loss Expense Incurred | Details underlying intent to sell impairments and credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:
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Payables for Collateral on Investments | The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:
(1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash or fixed maturity AFS securities. This also includes interest payable on collateral. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.
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Schedule of Increase (Decrease) in Payables for Collateral on Investments | Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:
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Schedule of Securities Pledged by Contractual Maturity | The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:
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Variable Interest Entities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | Asset information (dollars in millions) for the consolidated variable interest entities (“VIEs”) included on the Consolidated Balance Sheets was as follows:
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows:
(1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements. (2) Reported in funds withheld reinsurance liabilities on the Consolidated Balance Sheets. (3) Reported in policyholder account balances and deposit assets on the Consolidated Balance Sheets.
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Schedule of Derivative Instruments | The maturity of the notional amounts of derivative instruments (in millions) was as follows:
(1) As of June 30, 2024, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067. (2) As of June 30, 2024, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.
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Cumulative Basis Adjustments for Fair Value Hedges | The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:
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Change in Our Unrealized Gain on Derivative Instruments in AOCI | The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows:
(1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss). (3) The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).
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Effects of Qualifying and Non-Qualifying Hedges | The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:
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Schedule of Collateral Amounts With Rights to Reclaim or Obligation to Return Cash | The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows:
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Schedule of Offsetting Assets | Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows:
(1) Excludes excess non-cash collateral received of $1.3 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $51 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.
(1) Excludes excess non-cash collateral received of $1.3 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $82 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.
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Schedule of Offsetting Liabilities | Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows:
(1) Excludes excess non-cash collateral received of $1.3 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $51 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.
(1) Excludes excess non-cash collateral received of $1.3 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $82 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.
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DAC, VOBA, DSI and DFEL (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of DAC, VOBA and DSI | The following table reconciles deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets:
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Reconciliation of DFEL | The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets:
(1) We reported $257 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023. (2) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $47 million and $44 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023, respectively.
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DAC | The following tables summarize the changes in DAC (in millions):
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VOBA | The following tables summarize the changes in VOBA (in millions):
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DSI | The following tables summarize the changes in DSI (in millions):
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DFEL | The following tables summarize the changes in DFEL (in millions):
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Reinsurance (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets in Support of Reserves | We held investments with a carrying value of $9.3 billion and $9.9 billion in support of reserves associated with the Fortitude Re transaction in a funds withheld arrangement as of June 30, 2024, and December 31, 2023, respectively, which consisted of the following (in millions):
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MRBs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciles of MRBs Assets and Liabilities | The following table reconciles market risk benefits (“MRBs”) (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets:
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Summary of Balances of Changes in Net MRB (Assets) Liabilities | The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions):
(1) Consists primarily of changes in MRB assets and liabilities related to differences between separate account fund performance and modeled indices and other changes such as actual to expected policyholder behavior. (2) Net amount at risk (“NAR”) is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For guaranteed living benefits (“GLBs”), the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation.
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Separate Accounts (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Separate Accounts Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Separate Account Assets | The following table presents the fair value of separate account assets (in millions) reported on the Consolidated Balance Sheets by major investment category:
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Schedule of Reconciliation of Separate Account Liabilities | The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets:
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Summary of Balances and changes in Separate Account Liabilities | The following table summarizes the balances of and changes in separate account liabilities (in millions):
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Policyholder Account Balances (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Policyholder Account Balance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Policyholder Account Balances | The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets:
(1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.6 billion and $4.9 billion as of June 30, 2024, and December 31, 2023, respectively) that are excluded from the following tables.
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Summary of Balances and Changes in Policyholder Account Balances | The following table summarizes the balances and changes in policyholder account balances (in millions):
(1) NAR is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit rider exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. (2) Calculation is based on total account balances and includes both policyholder account balances and separate account balances.
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Summary of Policyholder Account Balances by Range | The following table presents policyholder account balances (in millions) by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between the interest being credited to policyholders and the respective guaranteed contract minimums:
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Future Contract Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reconciliation of Future Contract Benefits | The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:
(1) See liability for future policy benefits (“LFPB”) below for further information. (2) See “Liability for Future Claims” below for further information. (3) See “Additional Liabilities for Other Insurance Benefits” below for further information. (4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.4 billion and $5.6 billion as of June 30, 2024, and December 31, 2023, respectively) and Swiss Re ($2.1 billion and $2.2 billion as of June 30, 2024, and December 31, 2023, respectively) that are excluded from the following tables. (5) Represents other miscellaneous reserves that are not representative of long-duration contracts and are excluded from the following tables.
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Liability for Future Policy Benefit, Activity | The following table summarizes the balances of and changes in the present values of expected net premiums and LFPB (in millions, except years):
(1) Includes deferred profit liability within Payout Annuities of $61 million and $53 million as of June 30, 2024 and 2023, respectively. The following table summarizes the balances of and changes in liability for future claims (in millions, except years):
The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):
(1) Increase in reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023, for certain blocks of in-force ULSG. See Note 7 for more information on the transaction.
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Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments | The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):
The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):
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Summary of Gross Premiums and Interest Accretion | The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
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Summary of Weighted-Average Interest Rates | The following table summarizes the weighted-average interest rates:
The following table summarizes the weighted-average interest rates:
The following table summarizes the weighted-average interest rates:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Debt | Changes in debt (in millions) were as follows:
(1) Term loan uses a Secured Overnight Financing Rate (“SOFR”)-based interest rate, plus transition spread of 10 basis points and credit spread of 112.5 basis points.
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The carrying values and estimated fair values of our financial instruments (in millions) were as follows:
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Fair Value Option, Disclosures | The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:
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Fair Value of Assets and Liabilities on a Recurring Basis | The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:
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Fair Value Measured on a Recurring Basis Reconciliation | The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 8.
(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).
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Schedule of Investment Holdings Movements | The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:
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Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
(1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).
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Changes in Unrealized Gains (Losses) Included in OCI | The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
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Components of the Transfers In and Out of Level 3 | The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:
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Fair Value Inputs Quantitative Information | The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2024:
The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2023:
(1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period. (4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal. (6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. (7) The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index. (9) The mortality is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality.
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Shares and Stockholders’ Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Preferred | Preferred stock authorized, issued and outstanding (number of shares) was as follows:
The per share and aggregate dividends declared for preferred stock by series (in millions except per share data) was as follows:
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Schedule of Common Stock Outstanding Roll Forward | The changes in our common stock (number of shares) were as follows:
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Reconciliation of the Denominator Calculations of Basic and Diluted Earnings per Share | The calculation of earnings per share (“EPS”) was as follows (in millions except per share data):
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Components and Changes in AOCI | The following summarizes the components and changes in AOCI (in millions):
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Schedule of Reclassifications Out of AOCI | The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss):
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The tables below reconcile our segment measures of performance to the GAAP measures presented on the Consolidated Statements of Comprehensive Income (Loss) (in millions):
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Reconciliation of Income (Loss) from Operations by Segment to Consolidated Net Income (Loss) |
(1) The three and six months ended June 30, 2023, include impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction. See Notes 3 and 7 for additional information. (2) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7. (3) For information on the sale of our wealth management business, including the statutory capital benefit, see Note 1.
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Reconciliation of Assets from Segment to Consolidated | Other segment information (in millions) was as follows:
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Realized Gain (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gain (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Realized Gain (Loss) | Details underlying realized gain (loss) (in millions) were as follows:
(1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) The three and six months ended June 30, 2023, include impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction. See Notes 3 and 7 for additional information. (3) Includes mark-to-market adjustments on equity securities still held of $4 million and $(13) million for the three months ended June 30, 2024 and 2023, respectively, and $16 million and $(27) million for the six months ended June 30, 2024 and 2023, respectively. (4) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. (5) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of less than $3 million and $(3) million for the three months ended June 30, 2024 and 2023, respectively, and $3 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (6) Represents the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts, and the associated index options to hedge policyholder index allocations applicable to future reset periods for our indexed annuity products. (7) Includes the change in the fair value of the derivative instruments we own to support capital needs associated with our GLB and GDB riders net of fee income allocated to support the cost of purchasing the hedging instruments. (8) See “Sale of Wealth Management Business” in Note 1.
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Nature of Operations and Basis of Presentation (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 06, 2024
USD ($)
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Jun. 30, 2024
USD ($)
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Jun. 30, 2023
USD ($)
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Jun. 30, 2024
USD ($)
segment
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Jun. 30, 2023
USD ($)
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of operating segments | segment | 4 | ||||
Gain on disposition of business | $ 584 | $ 0 | $ 584 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wealth Management Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 725 | ||||
Gain on disposition of business | 558 | ||||
Transaction expenses | $ 26 | $ 35 | |||
Disposition of business, statutory capital benefit | $ 650 |
Investments - Available-for-Sale Securities by Contractual Maturities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost | ||
Amortized Cost | $ 97,723 | $ 97,433 |
Fair Value | ||
Total fixed maturity AFS securities | 87,174 | $ 88,738 |
Fixed maturity AFS securities other than structured securities | ||
Amortized Cost | ||
Due in one year or less | 4,780 | |
Due after one year through five years | 17,654 | |
Due after five years through ten years | 13,904 | |
Due after ten years | 44,100 | |
Amortized Cost | 80,438 | |
Fair Value | ||
Due in one year or less | 4,729 | |
Due after one year through five years | 16,949 | |
Due after five years through ten years | 12,645 | |
Due after ten years | 36,442 | |
Total fixed maturity AFS securities | 70,765 | |
Structured securities (RMBS, CMBS, ABS) | ||
Amortized Cost | ||
Amortized Cost | 17,285 | |
Fair Value | ||
Total fixed maturity AFS securities | $ 16,409 |
Investments - Amortized Cost of Mortgage Loans on Real Estate on Nonaccrual Status (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Nonaccrual [Line Items] | ||
As of June 30, 2024 | $ 86 | $ 0 |
Commercial mortgage loans on real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
As of June 30, 2024 | 26 | 0 |
Residential mortgage loans on real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
As of June 30, 2024 | $ 60 | $ 0 |
Investments - Residential Mortgage Loans by Year of Origination (Details) - Residential - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 957 | $ 517 |
Year two | 560 | 555 |
Year three | 536 | 483 |
Year four | 463 | 81 |
Year five | 76 | 112 |
Year six and prior | 155 | 57 |
Total | 2,747 | 1,805 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 957 | 515 |
Year two | 556 | 533 |
Year three | 512 | 465 |
Year four | 448 | 78 |
Year five | 73 | 99 |
Year six and prior | 141 | 53 |
Total | 2,687 | 1,743 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 2 |
Year two | 4 | 22 |
Year three | 24 | 18 |
Year four | 15 | 3 |
Year five | 3 | 13 |
Year six and prior | 14 | 4 |
Total | $ 60 | $ 62 |
Investments - Schedule of Increase (Decrease) in Payables for Collateral on Investments (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Investments [Abstract] | ||
Collateral payable for derivative investments | $ 2,462 | $ 1,338 |
Securities pledged under securities lending agreements | (3) | (8) |
Investments pledged for FHLBI | 550 | (980) |
Total increase (decrease) in payables for collateral on investments | $ 3,009 | $ 350 |
Variable Interest Entities - Consolidated Variable Interest Entity Asset and Liability Information (Details) $ in Millions |
Jun. 30, 2024
USD ($)
instrument
|
Dec. 31, 2023
USD ($)
instrument
|
---|---|---|
Disclosure of Variable Interest Entities Assets and Liabilities [Line Items] | ||
Carrying Value | $ 8,608 | $ 6,474 |
Variable Interest Entity, Primary Beneficiary | ||
Disclosure of Variable Interest Entities Assets and Liabilities [Line Items] | ||
Number of Instruments | instrument | 1 | 1 |
Notional Amounts | $ 526 | $ 544 |
Carrying Value | $ 0 | $ 0 |
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Variable Interest Entity [Line Items] | |||||
Other comprehensive income (loss), net of tax | $ (418) | $ (1,350) | $ (893) | $ 1,248 | |
Other investments | 5,652 | 5,652 | $ 5,015 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Other comprehensive income (loss), net of tax | 0 | $ 0 | 0 | $ 0 | |
Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Other investments | $ 4,700 | $ 4,700 | $ 4,200 |
Derivative Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged assets | $ 500 | $ 534 |
Amortized cost of the hedged liabilities | (680) | (703) |
Cumulative fair value hedging adjustment included in the amortized cost of the hedged assets | 14 | 39 |
Cumulative fair value hedging adjustment included in the amortized cost of the hedged assets (liabilities) | 195 | 172 |
Discontinued Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Cumulative fair value hedging adjustment included in the amortized cost of the hedged assets (liabilities) | $ (318) | $ (326) |
Derivative Instruments - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 101 |
Derivative Instruments - Schedule of Collateral Amounts With Rights to Reclaim or Obligation to Return Cash (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNC) | $ 7,683 | $ 5,229 |
Collateral Posted by LNC (Held by Counter- Party) | (49) | (188) |
AA- | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNC) | 3,170 | 2,378 |
Collateral Posted by LNC (Held by Counter- Party) | (49) | (63) |
A+ | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNC) | 3,767 | 2,496 |
Collateral Posted by LNC (Held by Counter- Party) | 0 | (125) |
A | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNC) | 70 | 82 |
Collateral Posted by LNC (Held by Counter- Party) | 0 | 0 |
A- | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNC) | 676 | 273 |
Collateral Posted by LNC (Held by Counter- Party) | $ 0 | $ 0 |
DAC, VOBA, DSI, and DFEL - Reconciliation of DEFL (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred front-end loads | $ 6,306 | $ 5,901 | ||
Other Operations | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred front-end loads | 47 | 44 | ||
Ceded deferred front end loads | 47 | 44 | ||
UL and Other | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred front-end loads | 5,984 | 5,579 | $ 5,168 | $ 4,766 |
Ceded deferred front end loads | 257 | 257 | 0 | |
Variable Annuities | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred front-end loads | 275 | $ 278 | 282 | $ 286 |
Ceded deferred front end loads | $ 0 | $ 0 |
DAC, VOBA, DSI and DFEL - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | ||||
Deferred policy acquisition costs, amortization expense | $ 252 | $ 247 | $ 501 | $ 492 |
Value of future insurance profits, amortization expense | 12 | 14 | 25 | 28 |
Deferred sales inducements, amortization expense | 4 | 4 | 8 | 9 |
Deferred front end loads, amortization expense | $ 77 | $ 71 | $ 151 | $ 140 |
DAC, VOBA, DSI, and DFEL - VOBA (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Amortization | $ (12) | $ (14) | $ (25) | $ (28) |
Traditional Life | ||||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Balance as of beginning-of-year | 42 | 50 | ||
Deferrals | 0 | 0 | ||
Amortization | (4) | (4) | ||
Balance as of end-of-period | 38 | 46 | 38 | 46 |
UL and Other | ||||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Balance as of beginning-of-year | 413 | 465 | ||
Deferrals | 1 | 1 | ||
Amortization | (20) | (23) | ||
Balance as of end-of-period | 394 | 443 | 394 | 443 |
Fixed Annuities | ||||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Balance as of beginning-of-year | 15 | 17 | ||
Deferrals | 0 | 0 | ||
Amortization | (1) | (1) | ||
Balance as of end-of-period | $ 14 | $ 16 | $ 14 | $ 16 |
DAC, VOBA, DSI, and DFEL - DSI (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Amortization | $ (4) | $ (4) | $ (8) | $ (9) |
UL and Other | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 28 | 30 | ||
Deferrals | 0 | 0 | ||
Amortization | (1) | (1) | ||
Balance as of end-of-period | 27 | 29 | 27 | 29 |
Retirement Plan Services | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 26 | 17 | ||
Deferrals | 12 | 2 | ||
Amortization | 0 | 0 | ||
Balance as of end-of-period | 38 | 19 | 38 | 19 |
Variable Annuities | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 122 | 128 | ||
Deferrals | 1 | 2 | ||
Amortization | (6) | (6) | ||
Balance as of end-of-period | 117 | 124 | 117 | 124 |
Fixed Annuities | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 19 | 23 | ||
Deferrals | 0 | 0 | ||
Amortization | (1) | (2) | ||
Balance as of end-of-period | $ 18 | $ 21 | $ 18 | $ 21 |
DAC, VOBA, DSI, and DFEL - DFEL (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Changes in DFEL [Roll Forward] | |||||
Balance as of beginning-of-year | $ 5,901 | ||||
Amortization | $ (77) | $ (71) | (151) | $ (140) | |
Balance as of end-of-period | 6,306 | 6,306 | |||
UL and Other | |||||
Changes in DFEL [Roll Forward] | |||||
Balance as of beginning-of-year | 5,579 | 4,766 | |||
Deferrals | 544 | 528 | |||
Amortization | (139) | (126) | |||
Balance as of end-of-period | 5,984 | 5,168 | 5,984 | 5,168 | |
Less: ceded DFEL | 257 | 0 | 257 | 0 | $ 257 |
Balance as of end-of-period, net of reinsurance | 5,727 | 5,168 | 5,727 | 5,168 | |
Variable Annuities | |||||
Changes in DFEL [Roll Forward] | |||||
Balance as of beginning-of-year | 278 | 286 | |||
Deferrals | 9 | 10 | |||
Amortization | (12) | (14) | |||
Balance as of end-of-period | 275 | 282 | 275 | 282 | |
Less: ceded DFEL | 0 | 0 | 0 | 0 | |
Balance as of end-of-period, net of reinsurance | $ 275 | $ 282 | $ 275 | $ 282 |
Reinsurance - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Oct. 01, 2023
agreement
|
|
Ceded Credit Risk [Line Items] | ||||
Number of reinsurance recoverable agreements | agreement | 2 | |||
Deposit assets, net of allowance for credit losses | $ 29,888 | $ 29,888 | $ 28,789 | |
Investments | 126,595 | 126,595 | 124,331 | |
Fortitude Re | ||||
Ceded Credit Risk [Line Items] | ||||
Deposits assets | 7,900 | 7,900 | 7,800 | |
Investments | 9,300 | 9,300 | 9,900 | |
Fixed Annuities | Fortitude Re | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverables | 10,500 | 10,500 | 10,500 | |
Reinsurance recoverables on unpaid losses | 2,600 | 2,600 | 2,700 | |
Reinsurance recoverable amortization | 22 | 44 | ||
Deposit assets, net of allowance for credit losses | $ 3,700 | $ 3,700 | $ 4,200 |
Reinsurance - Schedule of Assets in Support of Reserves (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | $ 87,174 | $ 88,738 | ||
Other investments | 5,652 | 5,015 | ||
Cash and invested cash | 5,475 | 3,365 | $ 3,768 | $ 3,343 |
Accrued investment income | 1,135 | 1,082 | ||
Other assets | 8,782 | 9,311 | ||
Fortitude Re | ||||
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | 8,093 | 8,867 | ||
Other investments | 1,099 | 759 | ||
Cash and invested cash | 14 | 141 | ||
Accrued investment income | 98 | 103 | ||
Other assets | 2 | 1 | ||
Total | $ 9,306 | $ 9,871 |
MRBs - Reconciles of MRBs Assets and Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Market Risk Benefit [Line Items] | ||||
Assets | $ 4,754 | $ 3,894 | ||
Liabilities | 1,275 | 1,716 | ||
Net (Assets) Liabilities | (3,479) | (2,178) | ||
Variable Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 4,620 | 3,763 | ||
Liabilities | 1,152 | 1,583 | ||
Net (Assets) Liabilities | (3,468) | (2,180) | $ (2,296) | $ (662) |
Fixed Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 95 | 96 | ||
Liabilities | 119 | 128 | ||
Net (Assets) Liabilities | 24 | 32 | (34) | (45) |
Retirement Plan Services | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 39 | 35 | ||
Liabilities | 4 | 5 | ||
Net (Assets) Liabilities | $ (35) | $ (30) | $ (28) | $ (22) |
Separate Accounts - Schedule of Fair Value of Separate Account Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 165,199 | $ 158,257 |
Mutual funds and collective investment trusts | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 164,537 | 157,578 |
Exchange-traded funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 345 | 350 |
Fixed maturity AFS securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 162 | 167 |
Cash and invested cash | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 4 | 25 |
Other investments | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 151 | $ 137 |
Separate Accounts - Summary of Balances and Changes in Separate Account Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | $ 165,199 | $ 158,257 | ||
Reinsurance Agreement | Protective | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 48 | 46 | ||
Variable Annuities | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 116,770 | 113,356 | $ 110,998 | $ 105,573 |
UL and Other | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 27,381 | 25,150 | 23,409 | 20,920 |
Retirement Plan Services | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 20,993 | 19,699 | $ 18,789 | $ 16,996 |
Other | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | $ 55 | $ 52 |
Policyholder Account Balances - Schedule of Policyholder Account Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 124,113 | $ 120,737 | ||
Variable Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 32,853 | 29,141 | $ 26,257 | $ 22,184 |
Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 25,837 | 25,355 | 23,813 | 23,365 |
UL and Other | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 36,848 | 37,180 | 37,458 | 37,694 |
Retirement Plan Services | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 23,598 | 23,784 | $ 24,430 | $ 25,138 |
Other | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,977 | 5,277 | ||
Other | Reinsurance Agreement | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 4,600 | $ 4,900 |
Future Contract Benefits - Summary of Discounted and Undiscounted Expected Future Gross Premiums and Expected Future Benefit Payments (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Jun. 30, 2023 |
---|---|---|
Payout Annuities | ||
Undiscounted | ||
Expected future gross premiums | $ 0 | $ 0 |
Expected future benefit payments | 3,437 | 3,501 |
Discounted | ||
Expected future gross premiums | 0 | 0 |
Expected future benefit payments | 2,002 | 2,048 |
Traditional Life | ||
Undiscounted | ||
Expected future gross premiums | 13,762 | 14,009 |
Expected future benefit payments | 14,526 | 14,548 |
Discounted | ||
Expected future gross premiums | 9,360 | 9,583 |
Expected future benefit payments | $ 9,700 | $ 9,763 |
Future Contract Benefit - Summary of Gross Premiums and Interest Accretion (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Payout Annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 24 | $ 44 | $ 45 | $ 72 |
Interest accretion | 22 | 22 | 43 | 43 |
Traditional Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | 316 | 314 | 631 | 627 |
Interest accretion | $ 37 | $ 36 | $ 74 | $ 71 |
Future Contract Benefit - Summary of Weighted-Average Interest Rates (Details) |
Jun. 30, 2024 |
Jun. 30, 2023 |
---|---|---|
Payout Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.00% | 3.90% |
Current discount rate | 5.40% | 5.20% |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.00% | 5.10% |
Current discount rate | 5.20% | 5.10% |
Future Contract Benefits - Summary of Changes in Present Values of LFPB (Group Protection) (Details) - Group Protection - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | $ 5,689 | $ 5,462 | ||
Effect of cumulative changes in discount rate assumptions | $ (490) | $ (597) | ||
Beginning balance at original discount rate | 6,179 | 6,059 | ||
Effect of actual variances from expected experience | $ (191) | $ (220) | ||
Adjusted balance as of beginning-of-year | 5,988 | 5,839 | ||
Issuances | 838 | 882 | ||
Interest accrual | 93 | 83 | ||
Benefit payments | (757) | (734) | ||
Ending balance at original discount rate | 6,162 | 6,070 | ||
Effect of cumulative changes in discount rate assumptions | (592) | (577) | ||
Balance as of end-of-period | 5,570 | 5,493 | ||
Less: reinsurance recoverables | 118 | 121 | ||
Net balance as of end-of-period, net of reinsurance | $ 5,452 | $ 5,372 | ||
Weighted-average duration of future policyholder benefit liability | 5 years | 4 years |
Future Contract Benefits - Summary of Discounted and Undiscounted Expected Future Benefit Payments (Group Protection) (Details) - Group Protection - USD ($) $ in Millions |
Jun. 30, 2024 |
Jun. 30, 2023 |
---|---|---|
Undiscounted | ||
Expected future benefit payments | $ 7,290 | $ 7,111 |
Discounted | ||
Expected future benefit payments | $ 5,570 | $ 5,493 |
Future Contract Benefit - Summary of Gross Premiums and Interest Accretion (Group Protection) (Details) - Group Protection - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 893 | $ 885 | $ 1,789 | $ 1,770 |
Interest accretion | $ 45 | $ 41 | $ 93 | $ 83 |
Future Contract Benefit - Summary of Weighted-Average Interest Rates (Group Protection) (Details) - Group Protection |
Jun. 30, 2024 |
Jun. 30, 2023 |
---|---|---|
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3.20% | 2.90% |
Current discount rate | 5.20% | 5.10% |
Future Contract Benefits - Summary of Changes in Present Values of LFPB (UL and Other) (Details) - UL and Other - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | $ 15,000 | $ 14,818 | ||
Effect of cumulative changes in discount rate assumptions | (3,332) | (829) | $ (2,222) | $ (905) |
Balance as of beginning-of-year, excluding shadow balance in AOCI | 17,222 | 15,723 | ||
Effect of actual variances from expected experience | $ 136 | $ 6 | ||
Adjusted balance as of beginning-of-year | 17,358 | 15,729 | ||
Interest accrual | 421 | 376 | ||
Net assessments collected | 575 | 609 | ||
Benefit payments | (521) | (360) | ||
Balance as of end-of-year, excluding shadow balance in AOCI | 17,833 | 16,354 | ||
Balance as of end-of-period | 14,501 | 15,525 | ||
Less: reinsurance recoverables | 4,880 | 870 | ||
Net balance as of end-of-period, net of reinsurance | $ 9,621 | $ 14,655 | ||
Weighted-average duration of future policyholder benefit liability | 16 years | 18 years |
Future Contract Benefit - Summary of Gross Premiums and Interest Accretion (UL and Other) (Details) - UL and Other - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 678 | $ 542 | $ 1,444 | $ 1,457 |
Interest accretion | $ 212 | $ 190 | $ 421 | $ 376 |
Future Contract Benefit - Summary of Weighted-Average Interest Rates (UL and Other) (Details) |
Jun. 30, 2024 |
Jun. 30, 2023 |
---|---|---|
UL and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.40% | 4.90% |
Fair Value of Financial Instruments - Schedule of Mortgage Loans With Election of Fair Value Option (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | $ 258 | $ 288 |
Commercial | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | 258 | 288 |
Aggregate contractual principal | $ 292 | $ 326 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | $ 282,213,000,000 | $ 269,878,000,000 |
Liabilities | 20,446,000,000 | 16,962,000,000 |
Fair Value, Nonrecurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Commercial | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans with fair value option in non-accrual | 0 | 0 |
Loans with fair value option, 90 days past due and still accruing | $ 0 | $ 0 |
Contingencies and Commitments (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 08, 2024 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency, estimate | $ 150.0 | |
Loss contingency accrual | $ 147.5 |
Shares and Stockholders' Equity - Schedule of Preferred Stock Dividends (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Class of Stock [Line Items] | ||||
Dividend Per Share (in dollars per share) | $ 562.50 | $ 562.50 | $ 2,281.25 | $ 1,817.19 |
Aggregate Dividend | $ 11 | $ 11 | $ 46 | $ 36 |
Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividend Per Share (in dollars per share) | $ 0 | $ 0 | $ 1,156.25 | $ 635.94 |
Aggregate Dividend | $ 0 | $ 0 | $ 23 | $ 13 |
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividend Per Share (in dollars per share) | $ 562.50 | $ 562.50 | $ 1,125 | $ 1,181.25 |
Aggregate Dividend | $ 11 | $ 11 | $ 23 | $ 23 |
Shares and Stockholders' Equity - Changes in Common Stock (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning-of-year (in shares) | 170,016,887 | 169,537,759 | 169,666,137 | 169,220,511 |
Stock compensation/issued for benefit plans (in shares) | 171,600 | 93,121 | 522,350 | 410,369 |
Balance as of end-of-year (in shares) | 170,188,487 | 169,630,880 | 170,188,487 | 169,630,880 |
Shares and Stockholders' Equity - Reconciliation of the Denominator Calculations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Stockholders' Equity Note [Abstract] | ||||
Net income (loss) available to common stockholders – basic | $ 884 | $ 500 | $ 2,070 | $ (406) |
Net income (loss) available to common stockholders – diluted | $ 884 | $ 502 | $ 2,073 | $ (408) |
Weighted-average shares, as used in basic calculation (in shares) | 170,620,161 | 169,581,636 | 170,335,077 | 169,470,359 |
Incremental common shares from assumed exercise or issuance of stock-based incentive compensation awards (in shares) | 1,553,402 | 326,870 | 1,324,837 | 450,109 |
Average deferred compensation shares (in shares) | 719,003 | 589,001 | 703,742 | 571,484 |
Weighted-average shares, as used in diluted calculation (in shares) | 172,892,566 | 170,497,507 | 172,363,656 | 170,491,952 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 5.18 | $ 2.95 | $ 12.16 | $ (2.40) |
Diluted (in dollars per share) | $ 5.11 | $ 2.94 | $ 12.03 | $ (2.41) |
Shares and Stockholders’ Equity - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Stockholders' Equity Note [Abstract] | ||||
Deferred compensation plan mark to market adjustment | $ 1 | $ (2) | $ (3) | $ 2 |
Segment Information - Reconciliation of Assets from Segments to Consolidated (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total assets | $ 384,533 | $ 372,413 |
Other Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 19,214 | 21,375 |
Annuities | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 196,687 | 185,599 |
Life Insurance | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 111,292 | 108,932 |
Group Protection | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,626 | 9,714 |
Retirement Plan Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 47,714 | $ 46,793 |
Federal Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 18.00% | 15.00% | 19.00% | 35.00% |
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