x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Minnesota | 41-0823832 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1099 Ameriprise Financial Center, Minneapolis, Minnesota | 55474 | |
(Address of principal executive offices) | (Zip Code) |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | ||
Large Accelerated Filer o | Accelerated Filer o | |
Non-Accelerated Filer x (Do not check if a smaller reporting company) | Smaller reporting company o | |
Emerging growth company o | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Class | Outstanding at November 1, 2017 | |
Common Stock (par value $30 per share) | 100,000 Shares |
Part I. Financial Information | |||||
Item 1. Financial Statements (Unaudited) | |||||
Consolidated Balance Sheets — September 30, 2017 and December 31, 2016 | |||||
Consolidated Statements of Income — Three months and nine months ended September 30, 2017 and 2016 | |||||
Consolidated Statements of Comprehensive Income — Three months and nine months ended September 30, 2017 and 2016 | |||||
Consolidated Statements of Shareholder’s Equity — Nine months ended September 30, 2017 and 2016 | |||||
Consolidated Statements of Cash Flows — Nine months ended September 30, 2017 and 2016 | |||||
Notes to Consolidated Financial Statements | |||||
1. Basis of Presentation | |||||
2. Recent Accounting Pronouncements | |||||
3. Variable Interest Entities | |||||
4. Investments | |||||
5. Financing Receivables | |||||
6. Deferred Acquisition Costs and Deferred Sales Inducement Costs | |||||
7. Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |||||
8. Variable Annuity and Insurance Guarantees | |||||
9. Short-term Borrowings | |||||
10. Fair Values of Assets and Liabilities | |||||
11. Offsetting Assets and Liabilities | |||||
12. Derivatives and Hedging Activities | |||||
13. Shareholder’s Equity | |||||
14. Income Taxes | |||||
15. Contingencies | |||||
Item 2. Management’s Narrative Analysis | |||||
Item 4. Controls and Procedures | |||||
Part II. Other Information | |||||
Item 1. Legal Proceedings | |||||
Item 1A. Risk Factors | |||||
Item 6. Exhibits | |||||
Signatures |
September 30, 2017 | December 31, 2016 | ||||||
(in millions, except share amounts) | |||||||
Assets | |||||||
Investments: | |||||||
Available-for-Sale: | |||||||
Fixed maturities, at fair value (amortized cost: 2017, $20,732; 2016, $21,464) | $ | 22,163 | $ | 22,682 | |||
Common stocks, at fair value (cost: 2017 and 2016, $4) | 8 | 10 | |||||
Mortgage loans (net of allowance for loan losses: 2017 and 2016, $19) (portion measured at fair value: 2017, $251; 2016, nil) | 2,880 | 2,874 | |||||
Policy loans | 841 | 830 | |||||
Other investments | 957 | 998 | |||||
Total investments | 26,849 | 27,394 | |||||
Cash and cash equivalents | 734 | 323 | |||||
Reinsurance recoverables | 2,846 | 2,623 | |||||
Other receivables | 213 | 262 | |||||
Accrued investment income | 221 | 237 | |||||
Deferred acquisition costs | 2,624 | 2,611 | |||||
Other assets | 4,130 | 4,305 | |||||
Separate account assets | 80,654 | 76,298 | |||||
Total assets | $ | 118,271 | $ | 114,053 | |||
Liabilities and Shareholder’s Equity | |||||||
Liabilities: | |||||||
Policyholder account balances, future policy benefits and claims | $ | 29,242 | $ | 29,514 | |||
Short-term borrowings | 201 | 200 | |||||
Other liabilities | 4,369 | 4,253 | |||||
Separate account liabilities | 80,654 | 76,298 | |||||
Total liabilities | 114,466 | 110,265 | |||||
Shareholder’s equity: | |||||||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | 3 | 3 | |||||
Additional paid-in capital | 2,466 | 2,466 | |||||
Retained earnings | 848 | 862 | |||||
Accumulated other comprehensive income, net of tax | 488 | 457 | |||||
Total shareholder’s equity | 3,805 | 3,788 | |||||
Total liabilities and shareholder’s equity | $ | 118,271 | $ | 114,053 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Revenues | |||||||||||||||
Premiums | $ | 99 | $ | 104 | $ | 304 | $ | 315 | |||||||
Net investment income | 261 | 276 | 797 | 850 | |||||||||||
Policy and contract charges | 444 | 557 | 1,415 | 1,501 | |||||||||||
Other revenues | 103 | 104 | 308 | 303 | |||||||||||
Net realized investment gains (losses) | — | 1 | 31 | 15 | |||||||||||
Total revenues | 907 | 1,042 | 2,855 | 2,984 | |||||||||||
Benefits and expenses | |||||||||||||||
Benefits, claims, losses and settlement expenses | 236 | 590 | 920 | 1,148 | |||||||||||
Interest credited to fixed accounts | 176 | 161 | 509 | 465 | |||||||||||
Amortization of deferred acquisition costs | 32 | 144 | 142 | 299 | |||||||||||
Other insurance and operating expenses | 176 | 149 | 527 | 505 | |||||||||||
Total benefits and expenses | 620 | 1,044 | 2,098 | 2,417 | |||||||||||
Pretax income (loss) | 287 | (2 | ) | 757 | 567 | ||||||||||
Income tax provision (benefit) | 34 | (38 | ) | 71 | 33 | ||||||||||
Net income | $ | 253 | $ | 36 | $ | 686 | $ | 534 | |||||||
Supplemental Disclosures: | |||||||||||||||
Total other-than-temporary impairment losses on securities | $ | — | $ | — | $ | — | $ | — | |||||||
Portion of loss recognized in other comprehensive income (before taxes) | — | — | — | — | |||||||||||
Net impairment losses recognized in net realized investment gains (losses) | $ | — | $ | — | $ | — | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Net income | $ | 253 | $ | 36 | $ | 686 | $ | 534 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Net unrealized gains (losses) on securities | (7 | ) | (26 | ) | 29 | 340 | |||||||||
Net unrealized gains (losses) on derivatives | 1 | 1 | 3 | 3 | |||||||||||
Other | — | — | (1 | ) | — | ||||||||||
Total other comprehensive income (loss), net of tax | (6 | ) | (25 | ) | 31 | 343 | |||||||||
Total comprehensive income | $ | 247 | $ | 11 | $ | 717 | $ | 877 |
Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Balances at January 1, 2016(1) | $ | 3 | $ | 2,465 | $ | 1,176 | $ | 395 | $ | 4,039 | |||||||||
Comprehensive income: | |||||||||||||||||||
Net income | — | — | 534 | — | 534 | ||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | 343 | 343 | ||||||||||||||
Total comprehensive income | 877 | ||||||||||||||||||
Tax adjustment on share-based incentive compensation plan | — | 2 | — | — | 2 | ||||||||||||||
Cash dividends to Ameriprise Financial, Inc. | — | — | (800 | ) | — | (800 | ) | ||||||||||||
Balances at September 30, 2016(1) | $ | 3 | $ | 2,467 | $ | 910 | $ | 738 | $ | 4,118 | |||||||||
Balances at January 1, 2017 | $ | 3 | $ | 2,466 | $ | 862 | $ | 457 | $ | 3,788 | |||||||||
Comprehensive income: | |||||||||||||||||||
Net income | — | — | 686 | — | 686 | ||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | 31 | 31 | ||||||||||||||
Total comprehensive income | 717 | ||||||||||||||||||
Cash dividends to Ameriprise Financial, Inc. | — | — | (700 | ) | — | (700 | ) | ||||||||||||
Balances at September 30, 2017 | $ | 3 | $ | 2,466 | $ | 848 | $ | 488 | $ | 3,805 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 686 | $ | 534 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation, amortization and accretion, net | 36 | 30 | |||||
Deferred income tax (benefit) expense | (71 | ) | (5 | ) | |||
Contractholder and policyholder charges, non-cash | (268 | ) | (260 | ) | |||
Loss from equity method investments | 44 | 43 | |||||
Net realized investment (gains) losses | (31 | ) | (17 | ) | |||
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains (losses) | — | 2 | |||||
Changes in operating assets and liabilities: | |||||||
Deferred acquisition costs | (31 | ) | 87 | ||||
Policyholder account balances, future policy benefits and claims, net | (118 | ) | 1,389 | ||||
Derivatives, net of collateral | 500 | (658 | ) | ||||
Reinsurance recoverables | (235 | ) | (200 | ) | |||
Other receivables | 50 | (20 | ) | ||||
Accrued investment income | 16 | 11 | |||||
Other, net | (55 | ) | 170 | ||||
Net cash provided by (used in) operating activities | 523 | 1,106 | |||||
Cash Flows from Investing Activities | |||||||
Available-for-Sale securities: | |||||||
Proceeds from sales | 209 | 254 | |||||
Maturities, sinking fund payments and calls | 1,843 | 1,815 | |||||
Purchases | (1,315 | ) | (2,343 | ) | |||
Proceeds from sales, maturities and repayments of mortgage loans | 341 | 679 | |||||
Funding of mortgage loans | (352 | ) | (327 | ) | |||
Proceeds from sales and collections of other investments | 126 | 101 | |||||
Purchase of other investments | (154 | ) | (105 | ) | |||
Purchase of land, buildings, equipment and software | (7 | ) | (7 | ) | |||
Change in policy loans, net | (11 | ) | (12 | ) | |||
Other, net | 31 | 23 | |||||
Net cash provided by (used in) investing activities | 711 | 78 | |||||
See Notes to Consolidated Financial Statements. |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Cash Flows from Financing Activities | |||||||
Policyholder account balances: | |||||||
Deposits and other additions | $ | 1,538 | $ | 1,532 | |||
Net transfers from (to) separate accounts | (120 | ) | 113 | ||||
Surrenders and other benefits | (1,413 | ) | (1,448 | ) | |||
Proceeds from lines of credit with Ameriprise Financial, Inc. | 5 | 10 | |||||
Payments on lines of credit with Ameriprise Financial, Inc. | (5 | ) | (10 | ) | |||
Cash received for purchased options with deferred premiums | 43 | 242 | |||||
Cash paid for purchased options with deferred premiums | (171 | ) | (238 | ) | |||
Cash dividends to Ameriprise Financial, Inc. | (700 | ) | (800 | ) | |||
Net cash provided by (used in) financing activities | (823 | ) | (599 | ) | |||
Net increase (decrease) in cash and cash equivalents | 411 | 585 | |||||
Cash and cash equivalents at beginning of period | 323 | 370 | |||||
Cash and cash equivalents at end of period | $ | 734 | $ | 955 | |||
Supplemental Disclosures: | |||||||
Income taxes paid (received), net | $ | 243 | $ | (31 | ) | ||
Interest paid on borrowings | 1 | 1 | |||||
Non-cash investing activity: | |||||||
Partnership commitments not yet remitted | 9 | 75 | |||||
See Notes to Consolidated Financial Statements. |
• | RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. |
• | RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. |
Description of Securities | September 30, 2017 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Noncredit OTTI (1) | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||
Corporate debt securities | $ | 12,415 | $ | 1,137 | $ | (21 | ) | $ | 13,531 | $ | — | |||||||||
Residential mortgage backed securities | 3,065 | 66 | (18 | ) | 3,113 | — | ||||||||||||||
Commercial mortgage backed securities | 3,148 | 61 | (25 | ) | 3,184 | — | ||||||||||||||
State and municipal obligations | 1,109 | 196 | (9 | ) | 1,296 | — | ||||||||||||||
Asset backed securities | 710 | 30 | (2 | ) | 738 | — | ||||||||||||||
Foreign government bonds and obligations | 284 | 21 | (5 | ) | 300 | — | ||||||||||||||
U.S. government and agencies obligations | 1 | — | — | 1 | — | |||||||||||||||
Total fixed maturities | 20,732 | 1,511 | (80 | ) | 22,163 | — | ||||||||||||||
Common stocks | 4 | 4 | — | 8 | 3 | |||||||||||||||
Total | $ | 20,736 | $ | 1,515 | $ | (80 | ) | $ | 22,171 | $ | 3 |
Description of Securities | December 31, 2016 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Noncredit OTTI (1) | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||
Corporate debt securities | $ | 13,105 | $ | 1,060 | $ | (53 | ) | $ | 14,112 | $ | — | |||||||||
Residential mortgage backed securities | 3,386 | 72 | (43 | ) | 3,415 | (4 | ) | |||||||||||||
Commercial mortgage backed securities | 2,837 | 58 | (38 | ) | 2,857 | — | ||||||||||||||
State and municipal obligations | 1,092 | 161 | (24 | ) | 1,229 | — | ||||||||||||||
Asset backed securities | 790 | 26 | (11 | ) | 805 | — | ||||||||||||||
Foreign government bonds and obligations | 251 | 17 | (7 | ) | 261 | — | ||||||||||||||
U.S. government and agencies obligations | 3 | — | — | 3 | — | |||||||||||||||
Total fixed maturities | 21,464 | 1,394 | (176 | ) | 22,682 | (4 | ) | |||||||||||||
Common stocks | 4 | 6 | — | 10 | 3 | |||||||||||||||
Total | $ | 21,468 | $ | 1,400 | $ | (176 | ) | $ | 22,692 | $ | (1 | ) |
(1) | Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Ratings | September 30, 2017 | December 31, 2016 | ||||||||||||||||||||
Amortized Cost | Fair Value | Percent of Total Fair Value | Amortized Cost | Fair Value | Percent of Total Fair Value | |||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||
AAA | $ | 5,908 | $ | 5,988 | 27 | % | $ | 5,671 | $ | 5,728 | 25 | % | ||||||||||
AA | 1,079 | 1,274 | 6 | 1,013 | 1,177 | 5 | ||||||||||||||||
A | 3,579 | 4,019 | 18 | 3,767 | 4,167 | 19 | ||||||||||||||||
BBB | 8,985 | 9,666 | 44 | 9,584 | 10,190 | 45 | ||||||||||||||||
Below investment grade | 1,181 | 1,216 | 5 | 1,429 | 1,420 | 6 | ||||||||||||||||
Total fixed maturities | $ | 20,732 | $ | 22,163 | 100 | % | $ | 21,464 | $ | 22,682 | 100 | % |
Description of Securities | September 30, 2017 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | |||||||||||||||||||||||||
(in millions, except number of securities) | |||||||||||||||||||||||||||||||||
Corporate debt securities | 53 | $ | 520 | $ | (6 | ) | 21 | $ | 178 | $ | (15 | ) | 74 | $ | 698 | $ | (21 | ) | |||||||||||||||
Residential mortgage backed securities | 43 | 833 | (11 | ) | 26 | 249 | (7 | ) | 69 | 1,082 | (18 | ) | |||||||||||||||||||||
Commercial mortgage backed securities | 67 | 1,172 | (19 | ) | 14 | 180 | (6 | ) | 81 | 1,352 | (25 | ) | |||||||||||||||||||||
State and municipal obligations | 19 | 55 | — | 5 | 123 | (9 | ) | 24 | 178 | (9 | ) | ||||||||||||||||||||||
Asset backed securities | 11 | 113 | (1 | ) | 9 | 63 | (1 | ) | 20 | 176 | (2 | ) | |||||||||||||||||||||
Foreign government bonds and obligations | 8 | 19 | — | 14 | 21 | (5 | ) | 22 | 40 | (5 | ) | ||||||||||||||||||||||
Total | 201 | $ | 2,712 | $ | (37 | ) | 89 | $ | 814 | $ | (43 | ) | 290 | $ | 3,526 | $ | (80 | ) |
Description of Securities | December 31, 2016 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | |||||||||||||||||||||||||
(in millions, except number of securities) | |||||||||||||||||||||||||||||||||
Corporate debt securities | 114 | $ | 1,502 | $ | (26 | ) | 33 | $ | 319 | $ | (27 | ) | 147 | $ | 1,821 | $ | (53 | ) | |||||||||||||||
Residential mortgage backed securities | 56 | 1,282 | (25 | ) | 56 | 324 | (18 | ) | 112 | 1,606 | (43 | ) | |||||||||||||||||||||
Commercial mortgage backed securities | 80 | 1,378 | (37 | ) | 1 | 11 | (1 | ) | 81 | 1,389 | (38 | ) | |||||||||||||||||||||
State and municipal obligations | 18 | 66 | (3 | ) | 2 | 105 | (21 | ) | 20 | 171 | (24 | ) | |||||||||||||||||||||
Asset backed securities | 23 | 231 | (6 | ) | 12 | 114 | (5 | ) | 35 | 345 | (11 | ) | |||||||||||||||||||||
Foreign government bonds and obligations | 7 | 30 | (1 | ) | 15 | 23 | (6 | ) | 22 | 53 | (7 | ) | |||||||||||||||||||||
Total | 298 | $ | 4,489 | $ | (98 | ) | 119 | $ | 896 | $ | (78 | ) | 417 | $ | 5,385 | $ | (176 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Beginning balance | $ | — | $ | 33 | $ | 21 | $ | 33 | |||||||
Reductions for securities sold during the period (realized) | — | — | (21 | ) | — | ||||||||||
Ending balance | $ | — | $ | 33 | $ | — | $ | 33 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Gross realized investment gains | $ | 5 | $ | 5 | $ | 38 | $ | 18 | |||||||
Gross realized investment losses | (2 | ) | (3 | ) | (4 | ) | (11 | ) | |||||||
Total | $ | 3 | $ | 2 | $ | 34 | $ | 7 |
Amortized Cost | Fair Value | ||||||
(in millions) | |||||||
Due within one year | $ | 1,560 | $ | 1,588 | |||
Due after one year through five years | 5,213 | 5,466 | |||||
Due after five years through 10 years | 3,314 | 3,460 | |||||
Due after 10 years | 3,722 | 4,614 | |||||
13,809 | 15,128 | ||||||
Residential mortgage backed securities | 3,065 | 3,113 | |||||
Commercial mortgage backed securities | 3,148 | 3,184 | |||||
Asset backed securities | 710 | 738 | |||||
Common stocks | 4 | 8 | |||||
Total | $ | 20,736 | $ | 22,171 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Fixed maturities | $ | 237 | $ | 249 | $ | 717 | $ | 751 | |||||||
Mortgage loans | 34 | 38 | 103 | 115 | |||||||||||
Other investments | (4 | ) | (4 | ) | (4 | ) | 4 | ||||||||
267 | 283 | 816 | 870 | ||||||||||||
Less: investment expenses | 6 | 7 | 19 | 20 | |||||||||||
Total | $ | 261 | $ | 276 | $ | 797 | $ | 850 |
September 30, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Beginning balance | $ | 25 | $ | 25 | |||
Charge-offs | — | (1 | ) | ||||
Provisions | — | 1 | |||||
Ending balance | $ | 25 | $ | 25 | |||
Individually evaluated for impairment | $ | 3 | $ | 2 | |||
Collectively evaluated for impairment | 22 | 23 |
September 30, 2017 | December 31, 2016 | ||||||
(in millions) | |||||||
Individually evaluated for impairment | $ | 18 | $ | 10 | |||
Collectively evaluated for impairment | 3,271 | 3,275 | |||||
Total | $ | 3,289 | $ | 3,285 |
Loans | Percentage | ||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||
(in millions) | |||||||||||||
South Atlantic | $ | 738 | $ | 753 | 28 | % | 29 | % | |||||
Pacific | 754 | 722 | 28 | 28 | |||||||||
Mountain | 242 | 234 | 9 | 9 | |||||||||
West North Central | 205 | 212 | 8 | 8 | |||||||||
Middle Atlantic | 186 | 191 | 7 | 7 | |||||||||
East North Central | 231 | 195 | 9 | 8 | |||||||||
West South Central | 128 | 122 | 5 | 5 | |||||||||
New England | 79 | 84 | 3 | 3 | |||||||||
East South Central | 85 | 80 | 3 | 3 | |||||||||
2,648 | 2,593 | 100 | % | 100 | % | ||||||||
Less: allowance for loan losses | 19 | 19 | |||||||||||
Total | $ | 2,629 | $ | 2,574 |
Loans | Percentage | ||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||
(in millions) | |||||||||||||
Retail | $ | 896 | $ | 916 | 34 | % | 35 | % | |||||
Office | 485 | 473 | 18 | 18 | |||||||||
Apartments | 540 | 483 | 20 | 19 | |||||||||
Industrial | 442 | 430 | 17 | 17 | |||||||||
Mixed use | 42 | 42 | 2 | 2 | |||||||||
Hotel | 40 | 41 | 1 | 1 | |||||||||
Other | 203 | 208 | 8 | 8 | |||||||||
2,648 | 2,593 | 100 | % | 100 | % | ||||||||
Less: allowance for loan losses | 19 | 19 | |||||||||||
Total | $ | 2,629 | $ | 2,574 |
2017 | 2016 | |||||||
(in millions) | ||||||||
Balance at January 1 | $ | 2,611 | $ | 2,693 | (1) | |||
Capitalization of acquisition costs | 173 | 212 | (2) | |||||
Amortization, excluding the impact of valuation assumptions review | (154 | ) | (218 | ) | ||||
Amortization, impact of valuation assumptions review | 12 | (81 | ) | |||||
Impact of change in net unrealized securities (gains) losses | (18 | ) | (105 | ) | ||||
Balance at September 30 | $ | 2,624 | $ | 2,501 | (1) |
(1) | DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K. |
(2) | Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. |
2017 | 2016 | ||||||
(in millions) | |||||||
Balance at January 1 | $ | 301 | $ | 334 | |||
Capitalization of sales inducement costs | 3 | 4 | |||||
Amortization, excluding the impact of valuation assumptions review | (27 | ) | (32 | ) | |||
Amortization, impact of valuation assumptions review | (1 | ) | 4 | ||||
Impact of change in net unrealized securities (gains) losses | 1 | (14 | ) | ||||
Balance at September 30 | $ | 277 | $ | 296 |
September 30, 2017 | December 31, 2016 | |||||||
(in millions) | ||||||||
Policyholder account balances | ||||||||
Fixed annuities (1) | $ | 10,100 | $ | 10,588 | ||||
Variable annuity fixed sub-accounts | 5,187 | 5,211 | ||||||
Variable universal life (“VUL”)/universal life (“UL”) insurance | 3,028 | 3,007 | ||||||
Indexed universal life (“IUL”) insurance | 1,290 | 1,054 | ||||||
Other life insurance | 731 | 758 | ||||||
Total policyholder account balances | 20,336 | 20,618 | ||||||
Future policy benefits | ||||||||
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) | 539 | 1,017 | ||||||
Variable annuity guaranteed minimum accumulation benefits (“GMAB”) | (73 | ) | (2) | (24 | ) | (2) | ||
Other annuity liabilities | 85 | 66 | ||||||
Fixed annuity life contingent liabilities | 1,482 | 1,497 | ||||||
Life, disability income and long term care insurance | 6,027 | 5,556 | ||||||
VUL/UL and other life insurance additional liabilities | 674 | 588 | ||||||
Total future policy benefits | 8,734 | 8,700 | ||||||
Policy claims and other policyholders’ funds | 172 | 196 | ||||||
Total policyholder account balances, future policy benefits and claims | $ | 29,242 | $ | 29,514 |
(1) | Includes fixed deferred annuities, non-life contingent fixed payout annuities and equity indexed annuity (“EIA”) host contracts. |
(2) | Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017 and December 31, 2016 reported as a contra liability. |
September 30, 2017 | December 31, 2016 | ||||||
(in millions) | |||||||
Variable annuity | $ | 73,467 | $ | 69,606 | |||
VUL insurance | 7,154 | 6,659 | |||||
Other insurance | 33 | 33 | |||||
Total | $ | 80,654 | $ | 76,298 |
Variable Annuity Guarantees by Benefit Type (1) | September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||
Total Contract Value | Contract Value in Separate Accounts | Net Amount at Risk | Weighted Average Attained Age | Total Contract Value | Contract Value in Separate Accounts | Net Amount at Risk | Weighted Average Attained Age | |||||||||||||||||||||
(in millions, except age) | ||||||||||||||||||||||||||||
GMDB: | ||||||||||||||||||||||||||||
Return of premium | $ | 59,806 | $ | 57,840 | $ | 11 | 66 | $ | 56,143 | $ | 54,145 | $ | 208 | 65 | ||||||||||||||
Five/six-year reset | 8,869 | 6,141 | 13 | 66 | 8,878 | 6,170 | 22 | 66 | ||||||||||||||||||||
One-year ratchet | 6,502 | 6,139 | 12 | 69 | 6,426 | 6,050 | 110 | 68 | ||||||||||||||||||||
Five-year ratchet | 1,562 | 1,504 | 1 | 65 | 1,542 | 1,483 | 7 | 64 | ||||||||||||||||||||
Other | 1,057 | 1,034 | 58 | 72 | 965 | 942 | 86 | 71 | ||||||||||||||||||||
Total — GMDB | $ | 77,796 | $ | 72,658 | $ | 95 | 66 | $ | 73,954 | $ | 68,790 | $ | 433 | 65 | ||||||||||||||
GGU death benefit | $ | 1,103 | $ | 1,052 | $ | 126 | 69 | $ | 1,047 | $ | 996 | $ | 108 | 68 | ||||||||||||||
GMIB | $ | 236 | $ | 219 | $ | 8 | 69 | $ | 245 | $ | 227 | $ | 13 | 68 | ||||||||||||||
GMWB: | ||||||||||||||||||||||||||||
GMWB | $ | 2,525 | $ | 2,517 | $ | 2 | 71 | $ | 2,650 | $ | 2,642 | $ | 2 | 70 | ||||||||||||||
GMWB for life | 42,933 | 42,813 | 160 | 67 | 39,436 | 39,282 | 289 | (2) | 66 | |||||||||||||||||||
Total — GMWB | $ | 45,458 | $ | 45,330 | $ | 162 | 67 | $ | 42,086 | $ | 41,924 | $ | 291 | 66 | ||||||||||||||
GMAB | $ | 3,157 | $ | 3,153 | $ | — | 59 | $ | 3,484 | $ | 3,476 | $ | 21 | 59 |
(1) | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
September 30, 2017 | December 31, 2016 | ||||||||||
Net Amount at Risk | Weighted Average Attained Age | Net Amount at Risk | Weighted Average Attained Age | ||||||||
(in millions, except age) | |||||||||||
UL secondary guarantees | $ | 6,443 | 65 | $ | 6,376 | 64 |
GMDB & GGU | GMIB | GMWB (1) | GMAB (1) | UL | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance at January 1, 2016 | $ | 14 | $ | 8 | $ | 1,057 | $ | — | $ | 332 | |||||||||
Incurred claims | 10 | — | 1,056 | 9 | 99 | ||||||||||||||
Paid claims | (7 | ) | — | — | (1 | ) | (18 | ) | |||||||||||
Balance at September 30, 2016 | $ | 17 | $ | 8 | $ | 2,113 | $ | 8 | $ | 413 | |||||||||
Balance at January 1, 2017 | $ | 16 | $ | 8 | $ | 1,017 | $ | (24 | ) | $ | 434 | ||||||||
Incurred claims | 3 | — | (478 | ) | (49 | ) | 59 | ||||||||||||
Paid claims | (3 | ) | (1 | ) | — | — | (22 | ) | |||||||||||
Balance at September 30, 2017 | $ | 16 | $ | 7 | $ | 539 | $ | (73 | ) | $ | 471 |
(1) | The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. |
September 30, 2017 | December 31, 2016 | ||||||
(in millions) | |||||||
Mutual funds: | |||||||
Equity | $ | 44,365 | $ | 40,622 | |||
Bond | 23,481 | 23,142 | |||||
Other | 5,117 | 5,326 | |||||
Total mutual funds | $ | 72,963 | $ | 69,090 |
Level 1 | Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. |
Level 2 | Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. |
Level 3 | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |
September 30, 2017 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Available-for-Sale securities: Fixed maturities: | ||||||||||||||||
Corporate debt securities | $ | — | $ | 12,385 | $ | 1,146 | $ | 13,531 | ||||||||
Residential mortgage backed securities | — | 3,024 | 89 | 3,113 | ||||||||||||
Commercial mortgage backed securities | — | 3,149 | 35 | 3,184 | ||||||||||||
State and municipal obligations | — | 1,296 | — | 1,296 | ||||||||||||
Asset backed securities | — | 738 | — | 738 | ||||||||||||
Foreign government bonds and obligations | — | 300 | — | 300 | ||||||||||||
U.S. government and agencies obligations | 1 | — | — | 1 | ||||||||||||
Total Available-for-Sale securities: Fixed maturities | 1 | 20,892 | 1,270 | 22,163 | ||||||||||||
Common stocks | 3 | 4 | 1 | 8 | ||||||||||||
Cash equivalents | — | 722 | — | 722 | ||||||||||||
Other assets: | ||||||||||||||||
Interest rate derivative contracts | 2 | 1,169 | — | 1,171 | ||||||||||||
Equity derivative contracts | 48 | 1,845 | — | 1,893 | ||||||||||||
Credit derivative contracts | — | 4 | — | 4 | ||||||||||||
Foreign exchange derivative contracts | — | 42 | — | 42 | ||||||||||||
Total other assets | 50 | 3,060 | — | 3,110 | ||||||||||||
Separate account assets measured at net asset value (“NAV”) | 80,654 | (1) | ||||||||||||||
Total assets at fair value | $ | 54 | $ | 24,678 | $ | 1,271 | $ | 106,657 |
Liabilities | ||||||||||||||||
Policyholder account balances, future policy benefits and claims: | ||||||||||||||||
EIA embedded derivatives | $ | — | $ | 4 | $ | — | $ | 4 | ||||||||
IUL embedded derivatives | — | — | 577 | 577 | ||||||||||||
GMWB and GMAB embedded derivatives | — | — | 45 | 45 | (2) | |||||||||||
Total policyholder account balances, future policy benefits and claims | — | 4 | 622 | 626 | (3) | |||||||||||
Other liabilities: | ||||||||||||||||
Interest rate derivative contracts | — | 416 | — | 416 | ||||||||||||
Equity derivative contracts | 5 | 2,474 | — | 2,479 | ||||||||||||
Foreign exchange derivative contracts | — | 27 | — | 27 | ||||||||||||
Total other liabilities | 5 | 2,917 | — | 2,922 | ||||||||||||
Total liabilities at fair value | $ | 5 | $ | 2,921 | $ | 622 | $ | 3,548 |
December 31, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Available-for-Sale securities: Fixed maturities: | ||||||||||||||||
Corporate debt securities | $ | — | $ | 12,955 | $ | 1,157 | $ | 14,112 | ||||||||
Residential mortgage backed securities | — | 3,300 | 115 | 3,415 | ||||||||||||
Commercial mortgage backed securities | — | 2,857 | — | 2,857 | ||||||||||||
State and municipal obligations | — | 1,229 | — | 1,229 | ||||||||||||
Asset backed securities | — | 792 | 13 | 805 | ||||||||||||
Foreign government bonds and obligations | — | 261 | — | 261 | ||||||||||||
U.S. government and agencies obligations | 3 | — | — | 3 | ||||||||||||
Total Available-for-Sale securities: Fixed maturities | 3 | 21,394 | 1,285 | 22,682 | ||||||||||||
Common stocks | 6 | 4 | — | 10 | ||||||||||||
Cash equivalents | — | 302 | — | 302 | ||||||||||||
Other assets: | ||||||||||||||||
Interest rate derivative contracts | — | 1,735 | — | 1,735 | ||||||||||||
Equity derivative contracts | 43 | 1,487 | — | 1,530 | ||||||||||||
Credit derivative contracts | — | 1 | — | 1 | ||||||||||||
Foreign exchange derivative contracts | — | 80 | — | 80 | ||||||||||||
Total other assets | 43 | 3,303 | — | 3,346 | ||||||||||||
Separate account assets measured at NAV | 76,298 | (1) | ||||||||||||||
Total assets at fair value | $ | 52 | $ | 25,003 | $ | 1,285 | $ | 102,638 |
Liabilities | ||||||||||||||||
Policyholder account balances, future policy benefits and claims: | ||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||
IUL embedded derivatives | — | — | 464 | 464 | ||||||||||||
GMWB and GMAB embedded derivatives | — | — | 614 | 614 | (4) | |||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | 1,078 | 1,083 | (5) | |||||||||||
Other liabilities: | ||||||||||||||||
Interest rate derivative contracts | 1 | 964 | — | 965 | ||||||||||||
Equity derivative contracts | 2 | 1,987 | — | 1,989 | ||||||||||||
Foreign exchange derivative contracts | 2 | 45 | — | 47 | ||||||||||||
Total other liabilities | 5 | 2,996 | — | 3,001 | ||||||||||||
Total liabilities at fair value | $ | 5 | $ | 3,001 | $ | 1,078 | $ | 4,084 |
(1) | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. |
(2) | The fair value of the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017. |
(3) | The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017. |
(4) | The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016. |
(5) | The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016. |
Available-for-Sale Securities: Fixed Maturities | ||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance, July 1, 2017 | $ | 1,190 | $ | 89 | $ | — | $ | 11 | $ | — | $ | 1,290 | ||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||
Net income | 1 | — | — | — | — | 1 | (1) | |||||||||||||||||
Other comprehensive income | (1 | ) | 1 | — | — | — | — | |||||||||||||||||
Purchases | 38 | — | 35 | — | — | 73 | ||||||||||||||||||
Settlements | (82 | ) | (1 | ) | — | — | — | (83 | ) | |||||||||||||||
Transfers into Level 3 | — | — | — | — | 1 | 1 | ||||||||||||||||||
Transfers out of Level 3 | — | — | — | (11 | ) | — | (11 | ) | ||||||||||||||||
Balance, September 30, 2017 | $ | 1,146 | $ | 89 | $ | 35 | $ | — | $ | 1 | $ | 1,271 | ||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2017 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 1 | (1) |
Policyholder Account Balances, Future Policy Benefits and Claims | |||||||||||
IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | |||||||||
(in millions) | |||||||||||
Balance, July 1, 2017 | $ | 527 | $ | 272 | $ | 799 | |||||
Total (gains) losses included in: | |||||||||||
Net income | 35 | (2) | (309 | ) | (3) | (274 | ) | ||||
Issues | 26 | 84 | 110 | ||||||||
Settlements | (11 | ) | (2 | ) | (13 | ) | |||||
Balance, September 30, 2017 | $ | 577 | $ | 45 | $ | 622 | |||||
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017 | $ | 35 | (2) | $ | (307 | ) | (3) | $ | (272 | ) |
Available-for-Sale Securities: Fixed Maturities | ||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Total | Other Derivative Contracts | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance, July 1, 2016 | $ | 1,197 | $ | 15 | $ | — | $ | 130 | $ | 1,342 | $ | 2 | ||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||
Net income | (1 | ) | — | — | 1 | — | (1) | (2 | ) | (3) | ||||||||||||||
Other comprehensive income | (2 | ) | — | — | — | (2 | ) | — | ||||||||||||||||
Purchases | 20 | 106 | 33 | — | 159 | — | ||||||||||||||||||
Settlements | (21 | ) | (1 | ) | — | (1 | ) | (23 | ) | — | ||||||||||||||
Transfers out of Level 3 | — | — | — | (12 | ) | (12 | ) | — | ||||||||||||||||
Balance, September 30, 2016 | $ | 1,193 | $ | 120 | $ | 33 | $ | 118 | $ | 1,464 | $ | — | ||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2016 | $ | (1 | ) | $ | — | $ | — | $ | 1 | $ | — | (1) | $ | (2 | ) | (3) |
Policyholder Account Balances, Future Policy Benefits and Claims | |||||||||||
IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | |||||||||
(in millions) | |||||||||||
Balance, July 1, 2016 | $ | 408 | $ | 1,965 | $ | 2,373 | |||||
Total (gains) losses included in: | |||||||||||
Net income | 12 | (2) | (280 | ) | (3) | (268 | ) | ||||
Issues | 25 | 77 | 102 | ||||||||
Settlements | (7 | ) | (6 | ) | (13 | ) | |||||
Balance, September 30, 2016 | $ | 438 | $ | 1,756 | $ | 2,194 | |||||
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016 | $ | 12 | (2) | $ | (267 | ) | (3) | $ | (255 | ) |
Available-for-Sale Securities: Fixed Maturities | ||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance, January 1, 2017 | $ | 1,157 | $ | 115 | $ | — | $ | 13 | $ | — | $ | 1,285 | ||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||
Net income | 1 | — | — | — | — | 1 | (1) | |||||||||||||||||
Other comprehensive income | 1 | 1 | — | — | — | 2 | ||||||||||||||||||
Purchases | 96 | 67 | 35 | 49 | — | 247 | ||||||||||||||||||
Settlements | (109 | ) | (5 | ) | — | (13 | ) | — | (127 | ) | ||||||||||||||
Transfers into Level 3 | — | — | — | 11 | 5 | 16 | ||||||||||||||||||
Transfers out of Level 3 | — | (89 | ) | — | (60 | ) | (4 | ) | (153 | ) | ||||||||||||||
Balance, September 30, 2017 | $ | 1,146 | $ | 89 | $ | 35 | $ | — | $ | 1 | $ | 1,271 | ||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2017 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 1 | (1) |
Policyholder Account Balances, Future Policy Benefits and Claims | |||||||||||
IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | |||||||||
(in millions) | |||||||||||
Balance, January 1, 2017 | $ | 464 | $ | 614 | $ | 1,078 | |||||
Total (gains) losses included in: | |||||||||||
Net income | 75 | (2) | (798 | ) | (3) | (723 | ) | ||||
Issues | 70 | 238 | 308 | ||||||||
Settlements | (32 | ) | (9 | ) | (41 | ) | |||||
Balance, September 30, 2017 | $ | 577 | $ | 45 | $ | 622 | |||||
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017 | $ | 75 | (2) | $ | (771 | ) | (3) | $ | (696 | ) |
Available-for-Sale Securities: Fixed Maturities | ||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Total | Other Derivative Contracts | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance, January 1, 2016 | $ | 1,235 | $ | 21 | $ | 3 | $ | 133 | $ | 1,392 | $ | — | ||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||
Net income | (1 | ) | — | — | 1 | — | (1) | (2 | ) | (3) | ||||||||||||||
Other comprehensive income | 26 | — | — | — | 26 | — | ||||||||||||||||||
Purchases | 34 | 106 | 42 | — | 182 | 2 | ||||||||||||||||||
Settlements | (101 | ) | (7 | ) | (3 | ) | (1 | ) | (112 | ) | — | |||||||||||||
Transfers into Level 3 | — | — | — | 12 | 12 | — | ||||||||||||||||||
Transfers out of Level 3 | — | — | (9 | ) | (27 | ) | (36 | ) | — | |||||||||||||||
Balance, September 30, 2016 | $ | 1,193 | $ | 120 | $ | 33 | $ | 118 | $ | 1,464 | $ | — | ||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2016 | $ | (1 | ) | $ | — | $ | — | $ | 1 | $ | — | (1) | $ | (2 | ) | (3) |
Policyholder Account Balances, Future Policy Benefits and Claims | |||||||||||
IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | |||||||||
(in millions) | |||||||||||
Balance, January 1, 2016 | $ | 364 | $ | 851 | $ | 1,215 | |||||
Total (gains) losses included in: | |||||||||||
Net income | 8 | (2) | 708 | (3) | 716 | ||||||
Issues | 86 | 215 | 301 | ||||||||
Settlements | (20 | ) | (18 | ) | (38 | ) | |||||
Balance, September 30, 2016 | $ | 438 | $ | 1,756 | $ | 2,194 | |||||
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016 | $ | 8 | (2) | $ | 830 | (3) | $ | 838 |
(1) | Included in net investment income in the Consolidated Statements of Income. |
(2) | Included in interest credited to fixed accounts in the Consolidated Statements of Income. |
(3) | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
September 30, 2017 | |||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||
(in millions) | |||||||||||||||
Corporate debt securities (private placements) | $ | 1,144 | Discounted cash flow | Yield/spread to U.S. Treasuries | 0.8 | % | - | 2.3% | 1.2 | % | |||||
IUL embedded derivatives | $ | 577 | Discounted cash flow | Nonperformance risk (1) | 67 bps | ||||||||||
GMWB and GMAB embedded derivatives | $ | 45 | Discounted cash flow | Utilization of guaranteed withdrawals (2) | 0.0 | % | - | 42.0% | |||||||
Surrender rate | 0.1 | % | - | 74.7% | |||||||||||
Market volatility (3) | 4.3 | % | - | 15.9% | |||||||||||
Nonperformance risk (1) | 67 bps |
December 31, 2016 | |||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||
(in millions) | |||||||||||||||
Corporate debt securities (private placements) | $ | 1,154 | Discounted cash flow | Yield/spread to U.S. Treasuries | 0.9 | % | - | 2.5% | 1.3 | % | |||||
IUL embedded derivatives | $ | 464 | Discounted cash flow | Nonperformance risk (1) | 82 bps | ||||||||||
GMWB and GMAB embedded derivatives | $ | 614 | Discounted cash flow | Utilization of guaranteed withdrawals (2) | 0.0 | % | - | 75.6% | |||||||
Surrender rate | 0.1 | % | - | 66.4% | |||||||||||
Market volatility (3) | 5.3 | % | - | 21.2% | |||||||||||
Nonperformance risk (1) | 82 bps |
(1) | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. |
(2) | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. |
(3) | Market volatility is implied volatility of fund of funds and managed volatility funds. |
September 30, 2017 | ||||||||||||||||||||
Carrying Value | Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Mortgage loans, net | $ | 2,629 | $ | — | $ | — | $ | 2,648 | $ | 2,648 | ||||||||||
Policy loans | 841 | — | — | 797 | 797 | |||||||||||||||
Other investments | 401 | — | 352 | 51 | 403 | |||||||||||||||
Financial Liabilities | ||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 10,415 | $ | — | $ | — | $ | 11,052 | $ | 11,052 | ||||||||||
Short-term borrowings | 201 | — | 201 | — | 201 | |||||||||||||||
Other liabilities | 145 | — | — | 140 | 140 | |||||||||||||||
Separate account liabilities measured at NAV | 356 | 356 | (1) |
December 31, 2016 | ||||||||||||||||||||
Carrying Value | Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Mortgage loans, net | $ | 2,874 | $ | — | $ | — | $ | 2,865 | $ | 2,865 | ||||||||||
Policy loans | 830 | — | — | 807 | 807 | |||||||||||||||
Other investments | 402 | — | 364 | 43 | 407 | |||||||||||||||
Financial Liabilities | ||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 10,906 | $ | — | $ | — | $ | 11,417 | $ | 11,417 | ||||||||||
Short-term borrowings | 200 | — | 200 | — | 200 | |||||||||||||||
Other liabilities | 177 | — | — | 169 | 169 | |||||||||||||||
Separate account liabilities measured at NAV | 341 | 341 | (1) |
(1) | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. |
September 30, 2017 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | ||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 3,079 | $ | — | $ | 3,079 | $ | (2,327 | ) | $ | (636 | ) | $ | (109 | ) | $ | 7 | |||||||||||
OTC cleared (2) | 13 | — | 13 | (12 | ) | — | — | 1 | ||||||||||||||||||||
Exchange-traded | 18 | — | 18 | (2 | ) | — | — | 16 | ||||||||||||||||||||
Total derivatives | $ | 3,110 | $ | — | $ | 3,110 | $ | (2,341 | ) | $ | (636 | ) | $ | (109 | ) | $ | 24 |
December 31, 2016 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | ||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 2,822 | $ | — | $ | 2,822 | $ | (2,161 | ) | $ | (374 | ) | $ | (235 | ) | $ | 52 | |||||||||||
OTC cleared | 510 | — | 510 | (507 | ) | (3 | ) | — | — | |||||||||||||||||||
Exchange-traded | 14 | — | 14 | (2 | ) | — | — | 12 | ||||||||||||||||||||
Total derivatives | $ | 3,346 | $ | — | $ | 3,346 | $ | (2,670 | ) | $ | (377 | ) | $ | (235 | ) | $ | 64 |
(1) | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
(2) | The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. |
September 30, 2017 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | ||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 2,908 | $ | — | $ | 2,908 | $ | (2,327 | ) | $ | (1 | ) | $ | (578 | ) | $ | 2 | |||||||||||
OTC cleared (2) | 12 | — | 12 | (12 | ) | — | — | — | ||||||||||||||||||||
Exchange-traded | 2 | — | 2 | (2 | ) | — | — | — | ||||||||||||||||||||
Total derivatives | 2,922 | — | 2,922 | (2,341 | ) | (1 | ) | (578 | ) | 2 | ||||||||||||||||||
Repurchase agreements | 50 | — | 50 | — | — | (48 | ) | 2 | ||||||||||||||||||||
Total | $ | 2,972 | $ | — | $ | 2,972 | $ | (2,341 | ) | $ | (1 | ) | $ | (626 | ) | $ | 4 |
December 31, 2016 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | ||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 2,481 | $ | — | $ | 2,481 | $ | (2,161 | ) | $ | — | $ | (312 | ) | $ | 8 | ||||||||||||
OTC cleared | 515 | — | 515 | (507 | ) | (8 | ) | — | — | |||||||||||||||||||
Exchange-traded | 5 | — | 5 | (2 | ) | — | — | 3 | ||||||||||||||||||||
Total derivatives | 3,001 | — | 3,001 | (2,670 | ) | (8 | ) | (312 | ) | 11 | ||||||||||||||||||
Repurchase agreements | 50 | — | 50 | — | — | (50 | ) | — | ||||||||||||||||||||
Total | $ | 3,051 | $ | — | $ | 3,051 | $ | (2,670 | ) | $ | (8 | ) | $ | (362 | ) | $ | 11 |
(1) | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Notional | Gross Fair Value | Notional | Gross Fair Value | ||||||||||||||||||||
Assets (1) | Liabilities (2) | Assets (1) | Liabilities (2) | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Interest rate contracts | $ | 65,248 | $ | 1,171 | $ | 416 | $ | 71,019 | $ | 1,735 | $ | 965 | |||||||||||
Equity contracts | 58,359 | 1,893 | 2,479 | 60,419 | 1,530 | 1,989 | |||||||||||||||||
Credit contracts | 718 | 4 | — | 1,039 | 1 | — | |||||||||||||||||
Foreign exchange contracts | 4,314 | 42 | 27 | 4,494 | 80 | 47 | |||||||||||||||||
Other contracts | 450 | — | — | 240 | — | — | |||||||||||||||||
Total non-designated hedges | 129,089 | 3,110 | 2,922 | 137,211 | 3,346 | 3,001 | |||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||
GMWB and GMAB (3) | N/A | — | 45 | N/A | — | 614 | |||||||||||||||||
IUL | N/A | — | 577 | N/A | — | 464 | |||||||||||||||||
EIA | N/A | — | 4 | N/A | — | 5 | |||||||||||||||||
Total embedded derivatives | N/A | — | 626 | N/A | — | 1,083 | |||||||||||||||||
Total derivatives | $ | 129,089 | $ | 3,110 | $ | 3,548 | $ | 137,211 | $ | 3,346 | $ | 4,084 |
Interest Credited to Fixed Accounts | Benefits, Claims, Losses and Settlement Expenses | ||||||
(in millions) | |||||||
Three Months Ended September 30, 2017 | |||||||
Interest rate contracts | $ | — | $ | 15 | |||
Equity contracts | 18 | (241 | ) | ||||
Credit contracts | — | (3 | ) | ||||
Foreign exchange contracts | — | 1 | |||||
Other contracts | — | (2 | ) | ||||
GMWB and GMAB embedded derivatives | — | 227 | |||||
IUL embedded derivatives | (24 | ) | — | ||||
Total gain (loss) | $ | (6 | ) | $ | (3 | ) |
Nine Months Ended September 30, 2017 | |||||||
Interest rate contracts | $ | — | $ | 63 | |||
Equity contracts | 50 | (859 | ) | ||||
Credit contracts | — | (22 | ) | ||||
Foreign exchange contracts | — | (27 | ) | ||||
Other contracts | — | (2 | ) | ||||
GMWB and GMAB embedded derivatives | — | 569 | |||||
IUL embedded derivatives | (43 | ) | — | ||||
Total gain (loss) | $ | 7 | $ | (278 | ) |
Interest Credited to Fixed Accounts | Benefits, Claims, Losses and Settlement Expenses | ||||||
(in millions) | |||||||
Three Months Ended September 30, 2016 | |||||||
Interest rate contracts | $ | — | $ | (13 | ) | ||
Equity contracts | 12 | (364 | ) | ||||
Credit contracts | — | (3 | ) | ||||
Foreign exchange contracts | — | (12 | ) | ||||
Other contracts | — | (2 | ) | ||||
GMWB and GMAB embedded derivatives | — | 209 | |||||
IUL embedded derivatives | (5 | ) | — | ||||
Total gain (loss) | $ | 7 | $ | (185 | ) |
Nine Months Ended September 30, 2016 | |||||||
Interest rate contracts | $ | — | $ | 1,191 | |||
Equity contracts | 10 | (525 | ) | ||||
Credit contracts | — | (34 | ) | ||||
Foreign exchange contracts | — | (66 | ) | ||||
Other contracts | — | (2 | ) | ||||
GMWB and GMAB embedded derivatives | — | (905 | ) | ||||
IUL embedded derivatives | 12 | — | |||||
Total gain (loss) | $ | 22 | $ | (341 | ) |
Premiums Payable | Premiums Receivable | |||||||
(in millions) | ||||||||
2017 | (1) | $ | 95 | $ | 25 | |||
2018 | 213 | 129 | ||||||
2019 | 275 | 170 | ||||||
2020 | 197 | 98 | ||||||
2021 | 168 | 107 | ||||||
2022-2026 | 669 | 182 | ||||||
Total | $ | 1,617 | $ | 711 |
Three Months Ended September 30, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Pretax | Income Tax Benefit (Expense) | Net of Tax | Pretax | Income Tax Benefit (Expense) | Net of Tax | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net unrealized securities gains (losses): | |||||||||||||||||||||||
Net unrealized securities gains (losses) arising during the period (1) | $ | 52 | $ | (18 | ) | $ | 34 | $ | 75 | $ | (25 | ) | $ | 50 | |||||||||
Reclassification of net securities (gains) losses included in net income (2) | (3 | ) | 1 | (2 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables | (61 | ) | 22 | (39 | ) | (114 | ) | 39 | (75 | ) | |||||||||||||
Net unrealized securities gains (losses) | (12 | ) | 5 | (7 | ) | (40 | ) | 14 | (26 | ) | |||||||||||||
Net unrealized derivatives gains (losses): | |||||||||||||||||||||||
Reclassification of net derivative (gains) losses included in net income (3) | 1 | — | 1 | 1 | — | 1 | |||||||||||||||||
Net unrealized derivatives gains (losses) | 1 | — | 1 | 1 | — | 1 | |||||||||||||||||
Other comprehensive income (loss) | $ | (11 | ) | $ | 5 | $ | (6 | ) | $ | (39 | ) | $ | 14 | $ | (25 | ) |
Nine Months Ended September 30, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Pretax | Income Tax Benefit (Expense) | Net of Tax | Pretax | Income Tax Benefit (Expense) | Net of Tax | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net unrealized securities gains (losses): | |||||||||||||||||||||||
Net unrealized securities gains (losses) arising during the period (1) | $ | 245 | $ | (85 | ) | $ | 160 | $ | 1,067 | $ | (375 | ) | $ | 692 | |||||||||
Reclassification of net securities (gains) losses included in net income (2) | (34 | ) | 12 | (22 | ) | (7 | ) | 2 | (5 | ) | |||||||||||||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables | (168 | ) | 59 | (109 | ) | (533 | ) | 186 | (347 | ) | |||||||||||||
Net unrealized securities gains (losses) | 43 | (14 | ) | 29 | 527 | (187 | ) | 340 | |||||||||||||||
Net unrealized derivatives gains (losses): | |||||||||||||||||||||||
Reclassification of net derivative (gains) losses included in net income (3) | 4 | (1 | ) | 3 | 4 | (1 | ) | 3 | |||||||||||||||
Net unrealized derivatives gains (losses) | 4 | (1 | ) | 3 | 4 | (1 | ) | 3 | |||||||||||||||
Other | (1 | ) | — | (1 | ) | — | — | — | |||||||||||||||
Other comprehensive income (loss) | $ | 46 | $ | (15 | ) | $ | 31 | $ | 531 | $ | (188 | ) | $ | 343 |
Net Unrealized Securities Gains | Net Unrealized Derivatives Gains | Other | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance, July 1, 2017 | $ | 497 | $ | (2 | ) | $ | (1 | ) | $ | 494 | |||||
OCI before reclassifications | (5 | ) | — | — | (5 | ) | |||||||||
Amounts reclassified from AOCI | (2 | ) | 1 | — | (1 | ) | |||||||||
Total OCI | (7 | ) | 1 | — | (6 | ) | |||||||||
Balance, September 30, 2017 | $ | 490 | (1) | $ | (1 | ) | $ | (1 | ) | $ | 488 | ||||
Balance, January 1, 2017 | $ | 461 | $ | (4 | ) | $ | — | $ | 457 | ||||||
OCI before reclassifications | 51 | — | (1 | ) | 50 | ||||||||||
Amounts reclassified from AOCI | (22 | ) | 3 | — | (19 | ) | |||||||||
Total OCI | 29 | 3 | (1 | ) | 31 | ||||||||||
Balance, September 30, 2017 | $ | 490 | (1) | $ | (1 | ) | $ | (1 | ) | $ | 488 |
Net Unrealized Securities Gains | Net Unrealized Derivatives Gains | Total | |||||||||
(in millions) | |||||||||||
Balance, July 1, 2016 | $ | 769 | $ | (6 | ) | $ | 763 | ||||
OCI before reclassifications | (25 | ) | — | (25 | ) | ||||||
Amounts reclassified from AOCI | (1 | ) | 1 | — | |||||||
Total OCI | (26 | ) | 1 | (25 | ) | ||||||
Balance, September 30, 2016 | $ | 743 | (1) | $ | (5 | ) | $ | 738 | |||
Balance, January 1, 2016 | $ | 403 | $ | (8 | ) | $ | 395 | ||||
OCI before reclassifications | 345 | — | 345 | ||||||||
Amounts reclassified from AOCI | (5 | ) | 3 | (2 | ) | ||||||
Total OCI | 340 | 3 | 343 | ||||||||
Balance, September 30, 2016 | $ | 743 | (1) | $ | (5 | ) | $ | 738 |
Nine Months Ended September 30, | Change | |||||||||||||
2017 | 2016 | |||||||||||||
(in millions) | ||||||||||||||
Revenues | ||||||||||||||
Premiums | $ | 304 | $ | 315 | $ | (11 | ) | (3 | )% | |||||
Net investment income | 797 | 850 | (53 | ) | (6 | ) | ||||||||
Policy and contract charges | 1,415 | 1,501 | (86 | ) | (6 | ) | ||||||||
Other revenues | 308 | 303 | 5 | 2 | ||||||||||
Net realized investment gains | 31 | 15 | 16 | NM | ||||||||||
Total revenues | 2,855 | 2,984 | (129 | ) | (4 | ) | ||||||||
Benefits and expenses | ||||||||||||||
Benefits, claims, losses and settlement expenses | 920 | 1,148 | (228 | ) | (20 | ) | ||||||||
Interest credited to fixed accounts | 509 | 465 | 44 | 9 | ||||||||||
Amortization of deferred acquisition costs | 142 | 299 | (157 | ) | (53 | ) | ||||||||
Other insurance and operating expenses | 527 | 505 | 22 | 4 | ||||||||||
Total benefits and expenses | 2,098 | 2,417 | (319 | ) | (13 | ) | ||||||||
Pretax income | 757 | 567 | 190 | 34 | ||||||||||
Income tax provision | 71 | 33 | 38 | NM | ||||||||||
Net income | $ | 686 | $ | 534 | $ | 152 | 28 | % | ||||||
NM Not Meaningful. |
Pretax Increase (Decrease) | 2017 | 2016 | ||||||
(in millions) | ||||||||
Policy and contract charges | $ | (47 | ) | $ | 64 | |||
Total revenues | (47 | ) | 64 | |||||
Benefits, claims, losses and settlement expenses | (139 | ) | 229 | |||||
Amortization of deferred acquisition costs | (12 | ) | 81 | |||||
Other insurance and operating expenses | — | (27 | ) | |||||
Total benefits and expenses | (151 | ) | 283 | |||||
Total | $ | 104 | $ | (219 | ) |
• | The market impact on variable annuity guaranteed benefits (net of hedges and the related deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization) was an expense of $142 million for the nine months ended September 30, 2017 compared to an expense of $55 million for the prior year period. |
• | The market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual) was an expense of $16 million for the nine months ended September 30, 2017 compared to a benefit of $31 million for the prior year period. |
• | The impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on the Company’s view of bond and equity performance was a benefit of $63 million ($27 million for DAC, $6 million for DSIC and $30 million for insurance features in non-traditional long-duration contracts) for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $5 million ($3 million for DAC, $1 million for DSIC and $1 million for insurance features in non-traditional long-duration contracts) for the prior year period. |
• | The nine months ended September 30, 2017 included a $139 million benefit from unlocking compared to a $229 million expense in the prior year period. The unlocking impact for the third quarter of 2017 primarily reflected a benefit from updates to market-related inputs to the living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs to the living benefit valuation. |
• | A $29 million increase in LTC reserves from a correction related to the claim utilization assumption in the third quarter of 2016. |
• | A $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017 primarily due to unfavorable morbidity experience partially offset by premium increases. |
• | A $24 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date. |
• | A $21 million negative impact for the nine months ended September 30, 2017 from changes in assumptions in the prior year unlocking process that result in ongoing increases to living benefit reserves. |
• | The impact on DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on the Company’s view of bond and equity performance was a benefit of $36 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $2 million for the prior year period. |
• | A $459 million increase in expense compared to the prior year period from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. As the embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread is favorable (unfavorable) to expense. The unfavorable impact of the nonperformance credit spread was $122 million for the nine months ended September 30, 2017 compared to a favorable impact of $337 million for the prior year period. |
• | A $345 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $1.7 billion change in the market impact on variable annuity guaranteed living benefits reserves, an unfavorable $1.4 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits and a favorable $2 million change in the DSIC offset. The main market drivers contributing to these changes are summarized below: |
• | Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2017 compared to the prior year period. |
• | Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2017 compared to an expense in the prior year period. |
• | Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the nine months ended September 30, 2017 compared to the prior year period. |
• | Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net favorable impact compared to the prior year period. |
• | The impact of unlocking was a benefit of $12 million for the nine months ended September 30, 2017 compared to an expense of $81 million for the prior year period. The impact of unlocking in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a $10 million benefit from a correction related to a variable annuity |
• | The impact on DAC from actual versus expected market performance based on the Company’s view of bond and equity performance was a benefit of $27 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $3 million for the prior year period. |
• | The DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) was a benefit of $18 million for the nine months ended September 30, 2017 compared to an expense of $9 million for the prior year period. |
Equity Price Decline 10% | Equity Price Exposure to Pretax Income | |||||||||||
Before Hedge Impact | Hedge Impact | Net Impact | ||||||||||
(in millions) | ||||||||||||
Asset-based fees and expenses | $ | (89 | ) | $ | — | $ | (89 | ) | ||||
DAC and DSIC amortization (1) (2) | (129 | ) | — | (129 | ) | |||||||
Variable annuity riders: | ||||||||||||
GMDB and GMIB (2) | (29 | ) | — | (29 | ) | |||||||
GMWB | (379 | ) | 233 | (146 | ) | |||||||
GMAB | (25 | ) | 26 | 1 | ||||||||
DAC and DSIC amortization (3) | N/A | N/A | (3 | ) | ||||||||
Total variable annuity riders | (433 | ) | 259 | (177 | ) | |||||||
Macro hedge program (4) | — | 27 | 27 | |||||||||
Equity indexed annuities | 1 | (1 | ) | — | ||||||||
Indexed universal life insurance | 66 | (49 | ) | 17 | ||||||||
Total | $ | (584 | ) | $ | 236 | $ | (351 | ) |
Interest Rate Increase 100 Basis Points | Interest Rate Exposure to Pretax Income | |||||||||||
Before Hedge Impact | Hedge Impact | Net Impact | ||||||||||
(in millions) | ||||||||||||
Asset-based fees and expenses | $ | (28 | ) | $ | — | $ | (28 | ) | ||||
Variable annuity riders: | ||||||||||||
GMDB and GMIB | — | — | — | |||||||||
GMWB | 983 | (1,089 | ) | (106 | ) | |||||||
GMAB | 21 | (23 | ) | (2 | ) | |||||||
DAC and DSIC amortization (3) | N/A | N/A | 18 | |||||||||
Total variable annuity riders | 1,004 | (1,112 | ) | (90 | ) | |||||||
Macro hedge program(4) | — | (1 | ) | (1 | ) | |||||||
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products | 99 | — | 99 | |||||||||
Indexed universal life insurance | 93 | 2 | 95 | |||||||||
Total | $ | 1,168 | $ | (1,111 | ) | $ | 75 |
(1) | Market impact on DAC and DSIC amortization resulting from lower projected profits. |
(2) | In estimating the impact on DAC and DSIC amortization resulting from lower projected profits, the Company has not changed its assumed equity asset growth rates. This is a significantly more conservative estimate than if the Company assumed management follows its mean reversion guideline and increased near-term rates to recover the drop in equity values over a five-year period. The Company makes this same conservative assumption in estimating the impact from GMDB and GMIB riders and the life contingent benefits associated with GMWB. |
(3) | Market impact on DAC and DSIC amortization related to variable annuity riders is modeled net of hedge impact. |
(4) | The market impact of the macro hedge program is modeled net of any related impact to DAC and DSIC amortization. |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Cash dividends paid to Ameriprise Financial | $ | 700 | $ | 800 | |||
Cash dividends received from RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”) | 50 | 50 | |||||
Cash dividends received from RiverSource Tax Advantaged Investments, Inc. | 20 | 15 |
Actual Capital(1) | Regulatory Capital Requirements(2) | ||||||||||
September 30, 2017 | December 31, 2016 | December 31, 2016 | |||||||||
(in millions) | |||||||||||
RiverSource Life Insurance Company | $ | 2,737 | $ | 3,052 | $ | 606 | |||||
RiverSource Life Insurance Co. of NY | 306 | 323 | 38 |
• | statements of the Company’s plans, intentions, expectations, objectives, or goals, including those related to the introduction, cessation, terms or pricing of new or existing products and services and the consolidated tax rate; |
• | other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and |
• | statements of assumptions underlying such statements. |
• | conditions in the interest rate, credit default, equity market and foreign exchange environments, including changes in valuations, liquidity and volatility; |
• | changes in and the adoption of relevant accounting standards and securities rating agency standards and processes, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the rules and regulations implemented or that may be implemented or modified in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or in light of the U.S. Department of Labor rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plans, plan sponsors, plan participants and the holders of individual retirement or health savings accounts; |
• | the Company’s investment management performance and consumer acceptance of the Company’s products; |
• | effects of competition in the financial services industry, including pricing pressure, the introduction of new products and services and changes in product distribution mix and distribution channels; |
• | changes to the Company’s reputation that may arise from employee or Ameriprise Financial Services, Inc. advisor misconduct, legal or regulatory actions, improper management of conflicts of interest or otherwise; |
• | the Company’s capital structure as a subsidiary of Ameriprise Financial, including the ability of its parent to support its financial strength and ratings, as well as the opinions of rating agencies and other analysts or the Company’s regulators, distributors or policyholders and contractholders in response to any change or prospect of change in any such opinion; |
• | risks of default, capacity constraint or repricing by issuers or guarantors of investments the Company owns or by counterparties to hedge derivative, insurance or reinsurance arrangements, experience deviations from the Company’s assumptions regarding such risks, the evaluations or the prospect of changes in evaluations of any such third parties published by rating agencies or other analysts and the reactions of other market participants or the Company’s regulators, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation; |
• | experience deviations from the Company’s assumptions regarding morbidity, mortality and persistency in certain annuity and insurance products, or from assumptions regarding market returns assumed in valuing or unlocking DAC and DSIC or market volatility underlying the Company’s valuation and hedging of guaranteed benefit annuity riders, or from assumptions regarding interest rates assumed in the Company’s loss recognition testing of its long term care business; |
• | successfully cross-selling insurance and annuity products and services to Ameriprise Financial’s customer base; |
• | the Company’s ability to effectively hedge risks relating to guaranteed benefit riders and certain other products; |
• | the impact of intercompany allocations to the Company from Ameriprise Financial and its affiliates; |
• | Ameriprise Financial’s ability to attract, recruit and retain qualified advisors and employees and its ability to distribute the Company’s products through current and future distribution channels; |
• | changes in capital requirements that may be indicated, required or advised by regulators or rating agencies; |
• | the impacts of Ameriprise Financial’s efforts to improve distribution economics and realize benefits from re-engineering and tax planning; |
• | interruptions or other failures in the Company’s communications, technology and other operating systems, including errors or failures caused by third-party service providers, interference or failures caused by third-party attacks on the Company’s systems, or the failure to safeguard the privacy or confidentiality of sensitive information and data on such systems; and |
• | general economic and political factors, including consumer confidence in the economy, the ability and inclination of consumers generally to invest, as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the Company consumes in the conduct of its business, and applicable legislation and regulation and changes therein, (such as the uncertain regulatory environment in the U.S. after the recent U.S. election), including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and regulatory rulings and pronouncements. |
Exhibit | Description |
Copy of Certificate of Incorporation of IDS Life Insurance Company, filed as Exhibit 3.1 to Post-Effective Amendment No. 5 to Registration Statement No. 33-28976, is incorporated by reference. | |
Copy of Certificate of Amendment of Certificate of Incorporation of IDS Life Insurance Company dated June 22, 2006, filed as Exhibit 3.1 to Form 8-K filed on January 5, 2007, is incorporated by reference. | |
Copy of Amended and Restated By-Laws of RiverSource Life Insurance Company dated June 22, 2006, filed as Exhibit 27(f)(2) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777, is incorporated by reference. | |
Certification of John R. Woerner, Chairman and President, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. | |
Certification of Brian J. McGrane, Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. | |
Certification of John R. Woerner, Chairman and President, and Brian J. McGrane, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101* | The following materials from RiverSource Life Insurance Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2017, formatted in XBRL: (i) Consolidated Balance Sheets at September 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Income for the three months and nine months ended September 30, 2017 and 2016; (iii) Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 2017 and 2016; (iv) Consolidated Statements of Shareholder’s Equity for the nine months ended September 30, 2017 and 2016; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016; and (vi) Notes to the Consolidated Financial Statements. |
* Filed electronically herewithin. |
RIVERSOURCE LIFE INSURANCE COMPANY | |||
(Registrant) | |||
Date: | November 1, 2017 | By | /s/ John R. Woerner |
John R. Woerner | |||
Chairman and President | |||
Date: | November 1, 2017 | By | /s/ Brian J. McGrane |
Brian J. McGrane | |||
Executive Vice President and | |||
Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of RiverSource Life Insurance Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ John R. Woerner | ||
Name: | John R. Woerner | |
Title: | Chairman and President |
1. | I have reviewed this Quarterly Report on Form 10-Q of RiverSource Life Insurance Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Brian J. McGrane | ||
Name: | Brian J. McGrane | |
Title: | Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ John R. Woerner | ||
Name: | John R. Woerner | |
Title: | Chairman and President | |
Date: | November 1, 2017 | |
/s/ Brian J. McGrane | ||
Name: | Brian J. McGrane | |
Title: | Chief Financial Officer | |
Date: | November 1, 2017 |
Document and Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2017 |
Nov. 01, 2017 |
|
Document and Entity Information | ||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE CO | |
Entity Central Index Key | 0000727892 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100,000 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 20,732 | $ 21,464 |
Common stocks, cost | 4 | 4 |
Mortgage loans, allowance for loan losses | 19 | 19 |
Mortgage loans, portion measured at fair value | $ 251 | $ 0 |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 253 | $ 36 | $ 686 | $ 534 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on securities | (7) | (26) | 29 | 340 |
Net unrealized gains (losses) on derivatives | 1 | 1 | 3 | 3 |
Other | 0 | 0 | (1) | 0 |
Total other comprehensive income (loss), net of tax | (6) | (25) | 31 | 343 |
Total comprehensive income | $ 247 | $ 11 | $ 717 | $ 877 |
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions |
Total |
Common shares [Member] |
Additional paid-in capital [Member] |
Retained earnings [Member] |
Accumulated other comprehensive income [Member] |
|||
---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2015 | [1] | $ 4,039 | $ 3 | $ 2,465 | $ 1,176 | $ 395 | ||
Comprehensive income: | ||||||||
Net Income | 534 | 534 | ||||||
Other comprehensive income (loss), net of tax | 343 | 343 | ||||||
Total comprehensive income | 877 | |||||||
Tax adjustment on share-based incentive compensation plan | 2 | 2 | ||||||
Cash dividends to Ameriprise Financial, Inc. | (800) | (800) | ||||||
Ending balance at Sep. 30, 2016 | [1] | 4,118 | 3 | 2,467 | 910 | 738 | ||
Beginning balance at Dec. 31, 2016 | 3,788 | 3 | 2,466 | 862 | 457 | |||
Comprehensive income: | ||||||||
Net Income | 686 | 686 | ||||||
Other comprehensive income (loss), net of tax | 31 | 31 | ||||||
Total comprehensive income | 717 | |||||||
Cash dividends to Ameriprise Financial, Inc. | (700) | (700) | ||||||
Ending balance at Sep. 30, 2017 | $ 3,805 | $ 3 | $ 2,466 | $ 848 | $ 488 | |||
|
Basis of Presentation |
9 Months Ended | ||||||||
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Sep. 30, 2017 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Basis of Presentation | Basis of Presentation RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”).
RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated financial position and results of operations for the interim periods have been made. Except for the adjustment described below, all adjustments made were of a normal recurring nature. In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve. In the third quarter of 2017, the Company recorded a $14 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $10 million and decreased benefits, claims, losses and settlement expenses by $4 million. The impact to prior period financial statements of these out-of-period corrections was not material. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on February 23, 2017 (“2016 10-K”). The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified. |
Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In August 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. The adoption of the standard did not have a material impact on the Company’s operating, investing or financing cash flows. Future Adoption of New Accounting Standards Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Receivables - Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial condition or results of operations. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Financial Instruments – Measurement of Credit Losses In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Leases – Recognition of Lease Assets and Liabilities on Balance Sheet In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The update is not expected to have a material impact on the consolidated financial condition or results of operations. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Subsequent related updates provide clarification on certain revenue recognition guidance in the new standard. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company plans to adopt the revenue recognition guidance on a retrospective basis in the first quarter of 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity products or financial instruments as these revenues are in the scope of other standards. Therefore, the Company does not expect the update to have an impact on these revenues. The Company’s implementation efforts include the identification of revenue within the guidance and the review of the customer contracts to determine the Company’s performance obligation and the associated timing of each performance obligation. The update is not expected to have a material impact on the consolidated financial condition and results of operations. The Company continues to evaluate the impact on disclosures. |
Variable Interest Entities Variable Interest Entities |
9 Months Ended |
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Sep. 30, 2017 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities [Text Block] | Variable Interest Entities The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships. A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $455 million and $482 million as of September 30, 2017 and December 31, 2016, respectively. The Company had a $114 million and $135 million liability recorded as of September 30, 2017 and December 31, 2016, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments. The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its carrying value. The carrying value is included in Available-for-Sale fixed maturities on the Consolidated Balance Sheets. The Company has no obligation to provide financial or other support to the structured investments beyond its investment nor has the Company provided any support to the structured investments. See Note 4 for additional information on these structured investments. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Text Block] | Investments Available-for-Sale securities distributed by type were as follows:
As of September 30, 2017 and December 31, 2016, investment securities with a fair value of $1.6 billion and $1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $697 million and $428 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of both September 30, 2017 and December 31, 2016, fixed maturity securities comprised approximately 83% of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of September 30, 2017 and December 31, 2016, approximately $962 million and $944 million, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC, an affiliate of the Company, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
As of September 30, 2017 and December 31, 2016, approximately 37% and 40%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:
As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is attributable to a decline in interest rates on the long end of the interest rate curve and tighter credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”):
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows:
See Note 13 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of September 30, 2017 were as follows:
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. The following is a summary of net investment income:
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Financing Receivables |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments. Allowance for Loan Losses Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company does not currently have an allowance for loan losses for residential mortgage loans. The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method:
The recorded investment in financing receivables by impairment method was as follows:
As of September 30, 2017 and December 31, 2016, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 million and $5 million, respectively. During the three months ended September 30, 2017 and 2016, the Company purchased $14 million and $17 million, respectively, and sold $9 million and nil, respectively, of syndicated loans. During the nine months ended September 30, 2017 and 2016, the Company purchased $121 million and $54 million, respectively, of syndicated loans, and sold $12 million and $250 million, respectively, of loans. The $250 million (amortized cost, net of unamortized discount) of loans sold during the nine months ended September 30, 2016 consisted of residential mortgage loans sold on March 30, 2016 to an unaffiliated third party. The Company received cash proceeds of $260 million and recognized a gain of $10 million. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $2 million as of both September 30, 2017 and December 31, 2016. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 1% and nil of total commercial mortgage loans as of September 30, 2017 and December 31, 2016, respectively. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
Residential Mortgage Loans The recorded investment in residential mortgage loans as of September 30, 2017 and December 31, 2016 was $251 million and $300 million, respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration to determine when an amount for an allowance for loan losses for residential mortgage loans is appropriate. At a minimum, management updates FICO scores and LTV ratios semiannually. As of September 30, 2017 and December 31, 2016, no allowance for loan losses was recorded. As of September 30, 2017 and December 31, 2016, approximately 1% and 2%, respectively, of residential mortgage loans had FICO scores below 640. As of both September 30, 2017 and December 31, 2016, none of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant geographic concentrations for residential mortgage loans are in California representing 52% of the portfolio as of both September 30, 2017 and December 31, 2016. Colorado and Washington represent 18% and 13%, respectively, of the portfolio as of both September 30, 2017 and December 31, 2016. No other state represents more than 10% of the total residential mortgage loan portfolio. During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell its remaining $255 million of residential mortgage loans and recorded a $4 million loss to reflect the loans at fair value. Syndicated Loans The recorded investment in syndicated loans as of September 30, 2017 and December 31, 2016 was $390 million and $392 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans as of September 30, 2017 and December 31, 2016 were $2 million and $1 million, respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of September 30, 2017 and December 31, 2016. The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and nine months ended September 30, 2017 and 2016. There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred Acquisition Costs and Deferred Sales Inducement Costs |
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Deferred Acquisition Costs and Deferred Sales Inducement Costs | Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management updated market-related inputs and implemented model changes related to our living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC in the third quarter of 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year period resulted in the write-off of DAC, which was included in the impact of unlocking. The balances of and changes in DAC were as follows:
The balances of and changes in DSIC, which is included in other assets, were as follows:
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Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities |
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Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following:
Separate account liabilities consisted of the following:
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Variable Annuity and Insurance Guarantees |
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Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Annuity and Insurance Guarantees | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:
(2) Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016. The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The following table provides information related to insurance guarantees for which the Company has established additional liabilities:
The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance. Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:
The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
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Short-term Borrowings |
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Short-term Debt [Abstract] | |
Short-term Borrowings [Text Block] | Short-term Borrowings The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of September 30, 2017 and December 31, 2016, the Company has pledged $32 million and $33 million of agency residential mortgage backed securities and $16 million and $19 million of commercial mortgage backed securities, respectively. The amount of the Company’s liability including accrued interest as of both September 30, 2017 and December 31, 2016 was $50 million. The remaining maturity of outstanding repurchase agreements was less than one month as of September 30, 2017 and less than three months as of December 31, 2016. The weighted average annualized interest rate on the repurchase agreements held as of September 30, 2017 and December 31, 2016 was 1.4% and 0.9%, respectively. RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $764 million and $771 million as of September 30, 2017 and December 31, 2016, respectively. The amount of the Company’s liability including accrued interest was $151 million and $150 million as of September 30, 2017 and December 31, 2016, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2017 and less than four months as of December 31, 2016. The weighted average annualized interest rate on the FHLB advances held as of September 30, 2017 and December 31, 2016 was 1.3% and 0.8%, respectively. |
Fair Values of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities [Table Text Block] | Fair Values of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:
The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:
The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(37) million and $8 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended September 30, 2017 and 2016, respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(91) million and $295 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the nine months ended September 30, 2017 and 2016, respectively. Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:
Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. The Company’s cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities primarily include U.S. Treasuries. Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy. Other Assets Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of September 30, 2017 and December 31, 2016. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. Other Liabilities Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of September 30, 2017 and December 31, 2016. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. Loans held for sale are required to be recorded at the lower of cost or fair value. During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell $255 million of residential mortgage loans at a $4 million loss. The loans are measured at fair value on a nonrecurring basis. The fair value of the loans, which reflects the selling price negotiated with the third party, was $251 million as of September 30, 2017, and is classified as Level 3 as the valuation includes unobservable inputs. During the reporting periods, there were no other material assets or liabilities measured at fair value on a nonrecurring basis. The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:
Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. The fair value of residential mortgage loans as of December 31, 2016 is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. Given the significant unobservable inputs to the valuation of mortgage loans as of December 31, 2016, these measurements are classified as Level 3. Policy Loans Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. Other Investments Other investments primarily consist of syndicated loans and an investment in FHLB. The fair value of syndicated loans is obtained from a third-party pricing service or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for this asset. Policyholder Account Balances, Future Policy Benefits and Claims The fair value of fixed annuities in deferral status is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIA host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3. Short-term Borrowings The fair value of short-term borrowings is obtained from a third-party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2. Other Liabilities Other liabilities consist of future funding commitments to affordable housing partnerships and other real estate partnerships. The fair value of these future funding commitments is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input. Separate Account Liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets is used as a practical expedient for fair value and represents the exit price for the separate account liabilities. Separate account liabilities are excluded from classification in the fair value hierarchy. |
Offsetting Assets and Liabilities |
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets and Liabilities [Text Block] | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and repurchase agreements are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:
The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:
(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. Freestanding derivative instruments are reflected in other assets and other liabilities. Cash collateral pledged by the Company is reflected in other assets and cash collateral accepted by the Company is reflected in other liabilities. Repurchase agreements are reflected in short-term borrowings. See Note 12 for additional disclosures related to the Company’s derivative instruments and Note 9 for additional disclosures related to the Company’s repurchase agreements. |
Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 11 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:
N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. (3) The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017 included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. See Note 10 for additional information regarding the Company’s fair value measurement of derivative instruments. As of September 30, 2017 and December 31, 2016, investment securities with a fair value of $122 million and $235 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $122 million and $118 million, respectively, may be sold, pledged or rehypothecated by the Company. As of September 30, 2017 and December 31, 2016, the Company had sold, pledged, or rehypothecated $12 million and $19 million, respectively, of these securities. In addition, as of September 30, 2017 and December 31, 2016, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:
The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2017:
(1) 2017 amounts represent the amounts payable and receivable for the period from October 1, 2017 to December 31, 2017. Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses futures, options, swaps and swaptions. Certain of the macro hedge derivatives contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates are shown in Other contracts in the tables above. EIA and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA and IUL products will positively or negatively impact earnings over the life of these products. The equity component of the EIA and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. Cash Flow Hedges During the nine months ended September 30, 2017, the Company held no derivatives that were designated as cash flow hedges. As of September 30, 2017, the Company expects to reclassify $3 million of deferred losses on derivative instruments from AOCI to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the nine months ended September 30, 2017 and 2016, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the nine months ended September 30, 2017 and 2016, amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 13 for a summary of net unrealized gains included in AOCI related to previously designated cash flow hedges. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is one year and relates to interest credited on forecasted fixed premium product sales. Credit Risk Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 11 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of September 30, 2017 and December 31, 2016, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $368 million and $206 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2017 and December 31, 2016 was $366 million and $198 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2017 and December 31, 2016 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $2 million and $8 million, respectively. |
Shareholder's Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder's Equity [Text Block] | Shareholder’s Equity The following tables provide the amounts related to each component of OCI:
(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. (2) Reclassification amounts are recorded in net realized investment gains (losses). (3) Reclassification amounts are recorded in net investment income. Other comprehensive income (loss) related to net unrealized securities gains (losses) includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following tables present the changes in the balances of each component of AOCI, net of tax:
(1) Includes $2 million and $1 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively. |
Income Taxes |
9 Months Ended |
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Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 11.8% and 1,900.0% for the three months ended September 30, 2017 and 2016, respectively. The Company’s effective tax rate was 9.4% and 5.8% for the nine months ended September 30, 2017 and 2016, respectively. The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. The decrease in the effective tax rate for the three months ended September 30, 2017 compared to the prior year period is primarily due to pretax income in the third quarter of 2017 compared to a pretax loss in the third quarter of 2016. The increase in the effective tax rate for the nine months ended September 30, 2017 compared to the prior year period is primarily due to an increase in pretax income. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2017. The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. The valuation allowance for state deferred tax assets and state net operating losses was $10 million and $8 million as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017 and December 31, 2016, the Company had $62 million and $59 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $6 million, net of federal tax benefits, of unrecognized tax benefits as of both September 30, 2017 and December 31, 2016, would affect the effective tax rate. The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase (decrease) of $(1) million and $1 million in interest and penalties for the three months and nine months ended September 30, 2017, respectively. The Company recognized a net increase (decrease) of nil and $(39) million for the three months and nine months ended September 30, 2016, respectively. As of September 30, 2017 and December 31, 2016, the Company had a payable of $3 million and $2 million, respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. In the third quarter, the Company received final cash settlements for resolution of the 2006 and 2011 audits. The Internal Revenue Service (“IRS”) has completed its examination of the 2008 through 2010 tax returns, and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 through 2015. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2005 through 2015. |
Contingencies |
9 Months Ended |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of September 30, 2017 and December 31, 2016, the estimated liability was $15 million and $16 million, respectively, and the related premium tax asset was $12 million and $14 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. The Company has cooperated and will continue to cooperate with the applicable regulators. The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally. |
Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows:
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Fixed Maturity Securities by Rating Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows:
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Available-for-Sale Securities Continuous Unrealized Loss Disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:
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Credit Losses on Available-for-Sale Securities Disclosure [Table Text Block] | The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”):
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Net Realized Gains and Losses on Available-for-Sale Securities Disclosure [Table Text Block] | Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows:
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Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity as of September 30, 2017 were as follows:
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Schedule of Net Investment Income [Table Text Block] | The following is a summary of net investment income:
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Financing Receivables (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of the Allowance for Loan Losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method:
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Schedule of Recorded Investment in Financing Receivables by Impairment Method [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows:
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Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
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Schedule of Commercial Mortgage Loans by Property Type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows:
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Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of balances of and changes in DAC | The balances of and changes in DAC were as follows:
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Schedule of balances of and changes in DSIC | The balances of and changes in DSIC, which is included in other assets, were as follows:
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Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder Account Balances, Future Policy Benefits and Claims Disclosure | Policyholder account balances, future policy benefits and claims consisted of the following:
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Schedule of Separate Account Liabilities by Policy Type | Separate account liabilities consisted of the following:
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Variable Annuity and Insurance Guarantees (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Annuity Guarantees [Table Text Block] | The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:
(2) Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016. |
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Schedule of UL Secondary Guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities:
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Schedule of Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees [Table Text Block] | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:
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Schedule of Separate Account Balances By Asset Type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
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Fair Values of Assets and Liabilities (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of balances of assets and liabilities measured at fair value on a recurring basis [Table Text Block] | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:
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Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis [Table Text Block] | The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:
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Significant unobservable inputs used in the fair value measurements [Table Text Block] | The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:
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Schedule of carrying value and the estimated fair value of financial instruments that are not reported at fair value [Table Text Block] | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:
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Offsetting Assets and Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross and Net Information About the Company's Assets Subject to Master Netting Arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:
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Schedule of Gross and Net Information About the Company's Liabilities Subject to Master Netting Arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:
(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. |
Derivatives and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Fair Value of Derivative Instruments, Including Embedded Derivatives [Table Text Block] | The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:
N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. (3) The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017 included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. |
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Schedule of Gain (Loss) on Derivative Instruments, Including Embedded Derivatives [Table Text Block] | The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:
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Schedule of Payments to Make and Receive for Options [Table Text Block] | The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2017:
(1) 2017 amounts represent the amounts payable and receivable for the period from October 1, 2017 to December 31, 2017. |
Shareholder's Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of OCI [Table Text Block] | The following tables provide the amounts related to each component of OCI:
(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. (2) Reclassification amounts are recorded in net realized investment gains (losses). (3) Reclassification amounts are recorded in net investment income. |
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Schedule of amounts reclassified from AOCI [Table Text Block] | The following tables present the changes in the balances of each component of AOCI, net of tax:
(1) Includes $2 million and $1 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively. |
Variable Interest Entities Variable Interest Entities (Details) - VIEs, not primary beneficiary [Member] - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
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Total fixed maturities [Member] | ||
Variable Interest Entity [Line Items] | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
RiverSource Tax Advantaged Investments Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying value of investments reflected in other investments | 455 | $ 482 |
Carrying value of liability of other investments | 114 | $ 135 |
Obligation to provide financial or other support to VIEs | $ 0 |
Investments (Rating info) (Details) $ in Millions |
Sep. 30, 2017
USD ($)
item
|
Dec. 31, 2016
USD ($)
item
|
---|---|---|
Investments | ||
Amortized cost | $ 20,732 | $ 21,464 |
Fair value | $ 22,163 | $ 22,682 |
Percentage of securities rated AAA that were GNMA, FNMA and FHLMC | 37.00% | 40.00% |
Number of holdings of other than GNMA, FNMA and FHLMC that are greater than 10% of total equity | item | 0 | 0 |
AAA [Member] | ||
Investments | ||
Amortized cost | $ 5,908 | $ 5,671 |
Fair value | $ 5,988 | $ 5,728 |
Percent of total fair value | 27.00% | 25.00% |
AA [Member] | ||
Investments | ||
Amortized cost | $ 1,079 | $ 1,013 |
Fair value | $ 1,274 | $ 1,177 |
Percent of total fair value | 6.00% | 5.00% |
A [Member] | ||
Investments | ||
Amortized cost | $ 3,579 | $ 3,767 |
Fair value | $ 4,019 | $ 4,167 |
Percent of total fair value | 18.00% | 19.00% |
BBB [Member] | ||
Investments | ||
Amortized cost | $ 8,985 | $ 9,584 |
Fair value | $ 9,666 | $ 10,190 |
Percent of total fair value | 44.00% | 45.00% |
Below investment grade [Member] | ||
Investments | ||
Amortized cost | $ 1,181 | $ 1,429 |
Fair value | $ 1,216 | $ 1,420 |
Percent of total fair value | 5.00% | 6.00% |
Total fixed maturities [Member] | ||
Investments | ||
Amortized cost | $ 20,732 | $ 21,464 |
Fair value | $ 22,163 | $ 22,682 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Details) $ in Millions |
Sep. 30, 2017
USD ($)
item
|
Dec. 31, 2016
USD ($)
item
|
---|---|---|
Number of Securities | ||
Less than 12 months | item | 201 | 298 |
12 months or more | item | 89 | 119 |
Total | item | 290 | 417 |
Fair Value | ||
Less than 12 months | $ 2,712 | $ 4,489 |
12 months or more | 814 | 896 |
Total | 3,526 | 5,385 |
Unrealized Losses | ||
Less than 12 months | (37) | (98) |
12 months or more | (43) | (78) |
Total | $ (80) | $ (176) |
Corporate debt securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 53 | 114 |
12 months or more | item | 21 | 33 |
Total | item | 74 | 147 |
Fair Value | ||
Less than 12 months | $ 520 | $ 1,502 |
12 months or more | 178 | 319 |
Total | 698 | 1,821 |
Unrealized Losses | ||
Less than 12 months | (6) | (26) |
12 months or more | (15) | (27) |
Total | $ (21) | $ (53) |
Residential mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 43 | 56 |
12 months or more | item | 26 | 56 |
Total | item | 69 | 112 |
Fair Value | ||
Less than 12 months | $ 833 | $ 1,282 |
12 months or more | 249 | 324 |
Total | 1,082 | 1,606 |
Unrealized Losses | ||
Less than 12 months | (11) | (25) |
12 months or more | (7) | (18) |
Total | $ (18) | $ (43) |
Commercial mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 67 | 80 |
12 months or more | item | 14 | 1 |
Total | item | 81 | 81 |
Fair Value | ||
Less than 12 months | $ 1,172 | $ 1,378 |
12 months or more | 180 | 11 |
Total | 1,352 | 1,389 |
Unrealized Losses | ||
Less than 12 months | (19) | (37) |
12 months or more | (6) | (1) |
Total | $ (25) | $ (38) |
State and municipal obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 19 | 18 |
12 months or more | item | 5 | 2 |
Total | item | 24 | 20 |
Fair Value | ||
Less than 12 months | $ 55 | $ 66 |
12 months or more | 123 | 105 |
Total | 178 | 171 |
Unrealized Losses | ||
Less than 12 months | 0 | (3) |
12 months or more | (9) | (21) |
Total | $ (9) | $ (24) |
Asset backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 11 | 23 |
12 months or more | item | 9 | 12 |
Total | item | 20 | 35 |
Fair Value | ||
Less than 12 months | $ 113 | $ 231 |
12 months or more | 63 | 114 |
Total | 176 | 345 |
Unrealized Losses | ||
Less than 12 months | (1) | (6) |
12 months or more | (1) | (5) |
Total | $ (2) | $ (11) |
Foreign government bonds and obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 8 | 7 |
12 months or more | item | 14 | 15 |
Total | item | 22 | 22 |
Fair Value | ||
Less than 12 months | $ 19 | $ 30 |
12 months or more | 21 | 23 |
Total | 40 | 53 |
Unrealized Losses | ||
Less than 12 months | 0 | (1) |
12 months or more | (5) | (6) |
Total | $ (5) | $ (7) |
Investments Investments (OTTI rollforward) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities | ||||
Beginning balance | $ 0 | $ 33 | $ 21 | $ 33 |
Reductions for securities sold during the period (realized) | 0 | 0 | 21 | 0 |
Ending balance | $ 0 | $ 33 | $ 0 | $ 33 |
Investments Investments (Realized GL info) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Gross realized investment gains | $ 5 | $ 5 | $ 38 | $ 18 |
Gross realized investment losses | (2) | (3) | (4) | (11) |
Total | $ 3 | $ 2 | $ 34 | $ 7 |
Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Amortized Cost | ||
Due within one year | $ 1,560 | |
Due after one year through five years | 5,213 | |
Due after five years through 10 years | 3,314 | |
Due after 10 years | 3,722 | |
Total having single maturity dates | 13,809 | |
Total amortized cost | 20,736 | $ 21,468 |
Fair Value | ||
Due within one year | 1,588 | |
Due after one year through five years | 5,466 | |
Due after five years through 10 years | 3,460 | |
Due after 10 years | 4,614 | |
Total having single maturity dates | 15,128 | |
Total fair value | 22,171 | 22,692 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,065 | |
Total amortized cost | 3,065 | 3,386 |
Fair Value | ||
Without single maturity dates | 3,113 | |
Total fair value | 3,113 | 3,415 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,148 | |
Total amortized cost | 3,148 | 2,837 |
Fair Value | ||
Without single maturity dates | 3,184 | |
Total fair value | 3,184 | 2,857 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 710 | |
Total amortized cost | 710 | 790 |
Fair Value | ||
Without single maturity dates | 738 | |
Total fair value | 738 | 805 |
Common stocks [Member] | ||
Amortized Cost | ||
Without single maturity dates | 4 | |
Total amortized cost | 4 | 4 |
Fair Value | ||
Without single maturity dates | 8 | |
Total fair value | $ 8 | $ 10 |
Investments (Net Inv Inc summary) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Net Investment Income [Line Items] | ||||
Gross investment income | $ 267 | $ 283 | $ 816 | $ 870 |
Less: investment expenses | 6 | 7 | 19 | 20 |
Total | 261 | 276 | 797 | 850 |
Fixed maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 237 | 249 | 717 | 751 |
Mortgage loans [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 34 | 38 | 103 | 115 |
Other investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ (4) | $ (4) | $ (4) | $ 4 |
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Rollforward of the allowance for loan losses | |||||
Beginning balance | $ 25 | $ 25 | |||
Charge-offs | 0 | (1) | |||
Provisions | 0 | 1 | |||
Ending balance | $ 25 | $ 25 | 25 | 25 | |
Individually evaluated for impairment | 3 | 2 | 3 | 2 | |
Collectively evaluated for impairment | 22 | 23 | 22 | 23 | |
Recorded investment in financing receivables by impairment method | |||||
Individually evaluated for impairment | 18 | 18 | $ 10 | ||
Collectively evaluated for impairment | 3,271 | 3,271 | 3,275 | ||
Total | 3,289 | 3,289 | 3,285 | ||
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 13 | 13 | 5 | ||
Syndicated loans [Member] | |||||
Recorded investment in financing receivables by impairment method | |||||
Total | 390 | 390 | 392 | ||
Loans purchased | 14 | 17 | 121 | 54 | |
Loans sold | 9 | $ 0 | 12 | ||
Residential mortgage loans [Member] | |||||
Recorded investment in financing receivables by impairment method | |||||
Total | $ 251 | $ 251 | $ 300 | ||
Loans sold | 250 | ||||
Proceeds from sale of loans | 260 | ||||
Gain from sale of loans | $ 10 |
Financing Receivables (Credit Quality Information Text) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
item
|
Dec. 31, 2016
USD ($)
|
|
Credit quality information [Line Items] | ||
Total recorded investment, gross | $ 3,289 | $ 3,285 |
90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 2 | $ 2 |
Commercial mortgage loans [Member] | ||
Credit quality information [Line Items] | ||
Percent of commercial mortgage loans with highest risk rating | 1.00% | 0.00% |
Total recorded investment, gross | $ 2,648 | $ 2,593 |
Residential mortgage loans [Member] | ||
Credit quality information [Line Items] | ||
Total recorded investment, gross | 251 | 300 |
Allowance for loan losses for residential mortgage loans | $ 0 | $ 0 |
Percentage of residential mortgage loans below specific FICO score | 1.00% | 2.00% |
FICO Score | item | 640 | |
Percentage of residential mortgage loans above specific LTV ratio | 0.00% | 0.00% |
LTV Ratio | 90.00% | |
Percentage of residential mortgage loan portfolio represented by state of California | 52.00% | 52.00% |
Percentage of residential mortgage loan portfolio represented by state of Colorado | 18.00% | 18.00% |
Percentage of residential mortgage loan portfolio represented by state of Washington | 13.00% | 13.00% |
Residential mortgage loans, at cost | $ 255 | |
Loss on residential mortgage loans | 4 | |
Syndicated loans [Member] | ||
Credit quality information [Line Items] | ||
Total recorded investment, gross | 390 | $ 392 |
Syndicated loans [Member] | 90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 2 | $ 1 |
Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 3,289 | $ 3,285 | ||
Less: allowance for loan losses | 25 | 25 | $ 25 | $ 25 |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | 2,648 | 2,593 | ||
Less: allowance for loan losses | 19 | 19 | ||
Total loans, net | $ 2,629 | $ 2,574 | ||
Percentage of commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 896 | $ 916 | ||
Percentage of commercial mortgage loans | 34.00% | 35.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 485 | $ 473 | ||
Percentage of commercial mortgage loans | 18.00% | 18.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 540 | $ 483 | ||
Percentage of commercial mortgage loans | 20.00% | 19.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 442 | $ 430 | ||
Percentage of commercial mortgage loans | 17.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 42 | $ 42 | ||
Percentage of commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 40 | $ 41 | ||
Percentage of commercial mortgage loans | 1.00% | 1.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 203 | $ 208 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 738 | $ 753 | ||
Percentage of commercial mortgage loans | 28.00% | 29.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 754 | $ 722 | ||
Percentage of commercial mortgage loans | 28.00% | 28.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 242 | $ 234 | ||
Percentage of commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 205 | $ 212 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 186 | $ 191 | ||
Percentage of commercial mortgage loans | 7.00% | 7.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 231 | $ 195 | ||
Percentage of commercial mortgage loans | 9.00% | 8.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 128 | $ 122 | ||
Percentage of commercial mortgage loans | 5.00% | 5.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 79 | $ 84 | ||
Percentage of commercial mortgage loans | 3.00% | 3.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 85 | $ 80 | ||
Percentage of commercial mortgage loans | 3.00% | 3.00% |
Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($) |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Receivables [Abstract] | ||
Commitments to lend additional funds to borrowers for restructured loans | $ 0 | $ 0 |
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||
Balances of and changes in DAC | |||||||
Balance at the beginning of the period | $ 2,611 | $ 2,693 | [1] | ||||
Capitalization of acquisition costs | 173 | 212 | [2] | ||||
Amortization, excluding the impact of valuation assumptions review | (154) | (218) | |||||
Amortization, impact of valuation assumptions review | 12 | (81) | |||||
Impact of change in net unrealized securities (gains) losses | (18) | (105) | |||||
Balance at the end of the period | 2,624 | 2,501 | [1] | ||||
Benefit related to the write-off of the deferred reinsurance liability | 27 | ||||||
Balances of and changes in DSIC | |||||||
Balance at the beginning of the period | 301 | 334 | |||||
Capitalization of sales inducement costs | 3 | 4 | |||||
Amortization, excluding the impact of valuation assumptions review | (27) | (32) | |||||
Amortization, impact of valuation assumptions review | (1) | 4 | |||||
Impact of change in net unrealized securities (gains) losses | 1 | (14) | |||||
Balance at the end of the period | $ 277 | $ 296 | |||||
|
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Policyholder account balances | $ 20,336 | $ 20,618 | |||||
Future policy benefits | 8,734 | 8,700 | |||||
Policy claims and other policyholders’ funds | 172 | 196 | |||||
Total Policyholder account balances, future policy benefits and claims | 29,242 | 29,514 | |||||
Fixed annuities [Member] | |||||||
Policyholder account balances | [1] | 10,100 | 10,588 | ||||
Variable annuity fixed sub-accounts [Member] | |||||||
Policyholder account balances | 5,187 | 5,211 | |||||
VUL/UL insurance [Member] | |||||||
Policyholder account balances | 3,028 | 3,007 | |||||
IUL [Member] | |||||||
Policyholder account balances | 1,290 | 1,054 | |||||
Other life Insurance [Member] | |||||||
Policyholder account balances | 731 | 758 | |||||
Variable annuity GMWB [Member] | |||||||
Future policy benefits | 539 | 1,017 | |||||
Variable annuity GMAB [Member] | |||||||
Future policy benefits | [2] | (73) | (24) | ||||
Other annuity liabilities [Member] | |||||||
Future policy benefits | 85 | 66 | |||||
Fixed annuity life contingent liabilities [Member] | |||||||
Future policy benefits | 1,482 | 1,497 | |||||
Llife, disability income and long term care insurance [Member] | |||||||
Future policy benefits | 6,027 | 5,556 | |||||
VUL/UL and other life insurance additional liabilities [Member] | |||||||
Future policy benefits | $ 674 | $ 588 | |||||
|
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 2) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Separate Accounts Disclosure [Abstract] | ||
Variable annuity | $ 73,467 | $ 69,606 |
VUL insurance | 7,154 | 6,659 |
Other insurance | 33 | 33 |
Total | $ 80,654 | $ 76,298 |
Variable Annuity and Insurance Guarantees (VA guarantee details) (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|||||||
GMDB [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 77,796 | $ 73,954 | |||||
Contract value in separate accounts | [1] | 72,658 | 68,790 | |||||
Net amount at risk | [1] | $ 95 | $ 433 | |||||
Weighted average attained age | [1] | 66 years | 65 years | |||||
GMDB [Member] | Return of premium [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 59,806 | $ 56,143 | |||||
Contract value in separate accounts | [1] | 57,840 | 54,145 | |||||
Net amount at risk | [1] | $ 11 | $ 208 | |||||
Weighted average attained age | [1] | 66 years | 65 years | |||||
GMDB [Member] | Five/six-year reset [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 8,869 | $ 8,878 | |||||
Contract value in separate accounts | [1] | 6,141 | 6,170 | |||||
Net amount at risk | [1] | $ 13 | $ 22 | |||||
Weighted average attained age | [1] | 66 years | 66 years | |||||
GMDB [Member] | One-year ratchet [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 6,502 | $ 6,426 | |||||
Contract value in separate accounts | [1] | 6,139 | 6,050 | |||||
Net amount at risk | [1] | $ 12 | $ 110 | |||||
Weighted average attained age | [1] | 69 years | 68 years | |||||
GMDB [Member] | Five-year ratchet [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 1,562 | $ 1,542 | |||||
Contract value in separate accounts | [1] | 1,504 | 1,483 | |||||
Net amount at risk | [1] | $ 1 | $ 7 | |||||
Weighted average attained age | [1] | 65 years | 64 years | |||||
GMDB [Member] | Other [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 1,057 | $ 965 | |||||
Contract value in separate accounts | [1] | 1,034 | 942 | |||||
Net amount at risk | [1] | $ 58 | $ 86 | |||||
Weighted average attained age | [1] | 72 years | 71 years | |||||
GGU death benefit [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 1,103 | $ 1,047 | |||||
Contract value in separate accounts | [1] | 1,052 | 996 | |||||
Net amount at risk | [1] | $ 126 | $ 108 | |||||
Weighted average attained age | [1] | 69 years | 68 years | |||||
GMIB [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 236 | $ 245 | |||||
Contract value in separate accounts | [1] | 219 | 227 | |||||
Net amount at risk | [1] | $ 8 | $ 13 | |||||
Weighted average attained age | [1] | 69 years | 68 years | |||||
GMWB [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 45,458 | $ 42,086 | |||||
Contract value in separate accounts | [1] | 45,330 | 41,924 | |||||
Net amount at risk | [1] | $ 162 | $ 291 | |||||
Weighted average attained age | [1] | 67 years | 66 years | |||||
GMWB [Member] | GMWB standard benefit [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 2,525 | $ 2,650 | |||||
Contract value in separate accounts | [1] | 2,517 | 2,642 | |||||
Net amount at risk | [1] | $ 2 | $ 2 | |||||
Weighted average attained age | [1] | 71 years | 70 years | |||||
GMWB [Member] | GMWB for life [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 42,933 | $ 39,436 | |||||
Contract value in separate accounts | [1] | 42,813 | 39,282 | |||||
Net amount at risk | [1] | $ 160 | $ 289 | [2] | ||||
Weighted average attained age | [1] | 67 years | 66 years | |||||
GMAB [Member] | ||||||||
Variable Annuity Guarantees by Benefit Type | ||||||||
Total contract value | [1] | $ 3,157 | $ 3,484 | |||||
Contract value in separate accounts | [1] | 3,153 | 3,476 | |||||
Net amount at risk | [1] | $ 0 | $ 21 | |||||
Weighted average attained age | [1] | 59 years | 59 years | |||||
|
Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,443 | $ 6,376 |
Weighted average attained age | 65 years | 64 years |
Variable Annuity and Insurance Guarantees (Liability rollforward) (Details) - USD ($) $ in Millions |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
||||
GMDB & GGU [Member] | |||||
Changes in additional liabilities for variable annuity and insurance guarantees | |||||
Balance at the beginning of the period | $ 16 | $ 14 | |||
Incurred claims | 3 | 10 | |||
Paid claims | (3) | (7) | |||
Balance at the end of the period | 16 | 17 | |||
GMIB [Member] | |||||
Changes in additional liabilities for variable annuity and insurance guarantees | |||||
Balance at the beginning of the period | 8 | 8 | |||
Paid claims | (1) | ||||
Balance at the end of the period | 7 | 8 | |||
GMWB [Member] | |||||
Changes in additional liabilities for variable annuity and insurance guarantees | |||||
Balance at the beginning of the period | [1] | 1,017 | 1,057 | ||
Incurred claims | [1] | (478) | 1,056 | ||
Balance at the end of the period | [1] | 539 | 2,113 | ||
GMAB [Member] | |||||
Changes in additional liabilities for variable annuity and insurance guarantees | |||||
Balance at the beginning of the period | [1] | (24) | 0 | ||
Incurred claims | [1] | (49) | 9 | ||
Paid claims | [1] | (1) | |||
Balance at the end of the period | [1] | (73) | 8 | ||
UL [Member] | |||||
Changes in additional liabilities for variable annuity and insurance guarantees | |||||
Balance at the beginning of the period | 434 | 332 | |||
Incurred claims | 59 | 99 | |||
Paid claims | (22) | (18) | |||
Balance at the end of the period | $ 471 | $ 413 | |||
|
Variable Annuity and Insurance Guarantees (Separate account balance by type) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 72,963 | $ 69,090 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 44,365 | 40,622 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 23,481 | 23,142 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 5,117 | $ 5,326 |
Short-term Borrowings (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Borrowings | ||
Amount of the liability including accrued interest | $ 201 | $ 200 |
Repurchase agreements [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 50 | $ 50 |
Remaining maturity of outstanding amount for short-term borrowings | 1 month | 3 months |
Weighted average annualized interest rate | 1.40% | 0.90% |
Federal Home Loan Bank [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 151 | $ 150 |
Remaining maturity of outstanding amount for short-term borrowings | 3 months | 4 months |
Weighted average annualized interest rate | 1.30% | 0.80% |
Residential mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 32 | $ 33 |
Commercial mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Fair value of securities pledged | 16 | 19 |
Commercial mortgage backed securities [Member] | Federal Home Loan Bank [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 764 | $ 771 |
Fair Values of Assets and Liabilities (Recurring) (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
||||||||||||||||||
Assets and liabilities measured at fair value | |||||||||||||||||||
Individual contracts in a liability position | [1] | $ 3,548 | $ 4,084 | ||||||||||||||||
Individual contracts in an asset position | [2] | 3,110 | 3,346 | ||||||||||||||||
Cumulative increase (decrease) in embedded derivatives due to nonperformance | (376) | (498) | |||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 22,163 | 22,682 | |||||||||||||||||
Common stocks | 8 | 10 | |||||||||||||||||
Separate account assets measured at NAV | 80,654 | 76,298 | |||||||||||||||||
GMWB and GMAB embedded derivatives [Member] | |||||||||||||||||||
Assets and liabilities measured at fair value | |||||||||||||||||||
Individual contracts in a liability position | 494 | 880 | |||||||||||||||||
Individual contracts in an asset position | 449 | 266 | |||||||||||||||||
Recurring basis [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 22,163 | 22,682 | |||||||||||||||||
Common stocks | 8 | 10 | |||||||||||||||||
Cash equivalents | 722 | 302 | |||||||||||||||||
Other assets | 3,110 | 3,346 | |||||||||||||||||
Separate account assets measured at NAV | [3] | 80,654 | 76,298 | ||||||||||||||||
Total assets at fair value | 106,657 | 102,638 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 626 | [4] | 1,083 | [5] | |||||||||||||||
Other liabilities | 2,922 | 3,001 | |||||||||||||||||
Total liabilities at fair value | 3,548 | 4,084 | |||||||||||||||||
Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 1,171 | 1,735 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 416 | 965 | |||||||||||||||||
Recurring basis [Member] | Equity derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 1,893 | 1,530 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 2,479 | 1,989 | |||||||||||||||||
Recurring basis [Member] | Credit derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 4 | 1 | |||||||||||||||||
Recurring basis [Member] | Foreign exchange derivatives contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 42 | 80 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 27 | 47 | |||||||||||||||||
Recurring basis [Member] | EIA embedded derivatives [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||||||||||||||||
Recurring basis [Member] | IUL embedded derivatives [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 577 | 464 | |||||||||||||||||
Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 45 | [6] | 614 | [7] | |||||||||||||||
Recurring basis [Member] | Corporate debt securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 13,531 | 14,112 | |||||||||||||||||
Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 3,113 | 3,415 | |||||||||||||||||
Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 3,184 | 2,857 | |||||||||||||||||
Recurring basis [Member] | State and municipal obligations [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1,296 | 1,229 | |||||||||||||||||
Recurring basis [Member] | Asset backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 738 | 805 | |||||||||||||||||
Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 300 | 261 | |||||||||||||||||
Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1 | 3 | |||||||||||||||||
Recurring basis [Member] | Level 1 [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1 | 3 | |||||||||||||||||
Common stocks | 3 | 6 | |||||||||||||||||
Other assets | 50 | 43 | |||||||||||||||||
Total assets at fair value | 54 | 52 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 5 | 5 | |||||||||||||||||
Total liabilities at fair value | 5 | 5 | |||||||||||||||||
Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 2 | ||||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 1 | ||||||||||||||||||
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 48 | 43 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 5 | 2 | |||||||||||||||||
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivatives contracts [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 2 | ||||||||||||||||||
Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1 | 3 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 20,892 | 21,394 | |||||||||||||||||
Common stocks | 4 | 4 | |||||||||||||||||
Cash equivalents | 722 | 302 | |||||||||||||||||
Other assets | 3,060 | 3,303 | |||||||||||||||||
Total assets at fair value | 24,678 | 25,003 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||||||||||||||||
Other liabilities | 2,917 | 2,996 | |||||||||||||||||
Total liabilities at fair value | 2,921 | 3,001 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 1,169 | 1,735 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 416 | 964 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 1,845 | 1,487 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 2,474 | 1,987 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 4 | 1 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivatives contracts [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Other assets | 42 | 80 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Other liabilities | 27 | 45 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | EIA embedded derivatives [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 12,385 | 12,955 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 3,024 | 3,300 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 3,149 | 2,857 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1,296 | 1,229 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 738 | 792 | |||||||||||||||||
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 300 | 261 | |||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1,270 | 1,285 | |||||||||||||||||
Common stocks | 1 | ||||||||||||||||||
Total assets at fair value | 1,271 | 1,285 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 622 | 1,078 | |||||||||||||||||
Total liabilities at fair value | 622 | 1,078 | |||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 577 | 464 | |||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Policyholder account balances, future policy benefits and claims | 45 | 614 | |||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 1,146 | 1,157 | |||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | 89 | 115 | |||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | $ 35 | ||||||||||||||||||
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||||||||||||||||
Assets | |||||||||||||||||||
Available-for-sale securities: fixed maturities | $ 13 | ||||||||||||||||||
|
Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Transfers from Level 1 to Level 2, assets | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Transfers from Level 2 to Level 1, assets | 0 | 0 | 0 | 0 | |||||
Corporate debt securities [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 1,190 | 1,197 | 1,157 | 1,235 | |||||
Total gaines (losses) included in net income | 1 | (1) | 1 | (1) | |||||
Total gains (losses) included in other comprehensive income | (1) | (2) | 1 | 26 | |||||
Purchases | 38 | 20 | 96 | 34 | |||||
Settlements | (82) | (21) | (109) | (101) | |||||
Balance, at the end of the period | 1,146 | 1,193 | 1,146 | 1,193 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized gains (losses) relating to assets held at end of period | 1 | (1) | 1 | (1) | |||||
Residential mortgage backed securities [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 89 | 15 | 115 | 21 | |||||
Total gains (losses) included in other comprehensive income | 1 | 1 | |||||||
Purchases | 106 | 67 | 106 | ||||||
Settlements | (1) | (1) | (5) | (7) | |||||
Transfers out of Level 3 | (89) | ||||||||
Balance, at the end of the period | 89 | 120 | 89 | 120 | |||||
Commercial mortgage backed securities [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 0 | 0 | 0 | 3 | |||||
Purchases | 35 | 33 | 35 | 42 | |||||
Settlements | (3) | ||||||||
Transfers out of Level 3 | (9) | ||||||||
Balance, at the end of the period | 35 | 33 | 35 | 33 | |||||
Asset backed securities [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 11 | 130 | 13 | 133 | |||||
Total gaines (losses) included in net income | 1 | 1 | |||||||
Purchases | 49 | ||||||||
Settlements | (1) | (13) | (1) | ||||||
Transfers into Level 3 | 11 | 12 | |||||||
Transfers out of Level 3 | (11) | (12) | (60) | (27) | |||||
Balance, at the end of the period | 0 | 118 | 0 | 118 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized gains (losses) relating to assets held at end of period | 1 | 1 | |||||||
Common stocks [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 0 | 0 | |||||||
Transfers into Level 3 | 1 | 5 | |||||||
Transfers out of Level 3 | (4) | ||||||||
Balance, at the end of the period | 1 | 1 | |||||||
Available-for-sale securities: fixed maturities [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 1,290 | 1,342 | 1,285 | 1,392 | |||||
Total gaines (losses) included in net income | [1] | 1 | 0 | 1 | 0 | ||||
Total gains (losses) included in other comprehensive income | 0 | (2) | 2 | 26 | |||||
Purchases | 73 | 159 | 247 | 182 | |||||
Settlements | (83) | (23) | (127) | (112) | |||||
Transfers into Level 3 | 1 | 16 | 12 | ||||||
Transfers out of Level 3 | (11) | (12) | (153) | (36) | |||||
Balance, at the end of the period | 1,271 | 1,464 | 1,271 | 1,464 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized gains (losses) relating to assets held at end of period | [1] | $ 1 | 0 | $ 1 | 0 | ||||
Other derivative contracts [Member] | |||||||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance, at the beginning of the period | 2 | 0 | |||||||
Total gaines (losses) included in net income | [2] | (2) | (2) | ||||||
Purchases | 2 | ||||||||
Balance, at the end of the period | 0 | 0 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized gains (losses) relating to assets held at end of period | [2] | $ (2) | $ (2) | ||||||
|
Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Transfers from Level 2 to Level 1, liabilities | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Transfers from Level 1 to Level 2, liabilities | 0 | 0 | 0 | 0 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Net increase (decrease) to pretax income from embedded derivative liability | (37) | 8 | (91) | 295 | |||||
IUL embedded derivatives [Member] | |||||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance at the beginning of the period | 527 | 408 | 464 | 364 | |||||
Total (gains) losses included in net income | [1] | 35 | 12 | 75 | 8 | ||||
Issues | 26 | 25 | 70 | 86 | |||||
Settlements | (11) | (7) | (32) | (20) | |||||
Balance at the end of the period | 577 | 438 | 577 | 438 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | [1] | 35 | 12 | 75 | 8 | ||||
GMWB and GMAB embedded derivatives [Member] | |||||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance at the beginning of the period | 272 | 1,965 | 614 | 851 | |||||
Total (gains) losses included in net income | [2] | (309) | (280) | (798) | 708 | ||||
Issues | 84 | 77 | 238 | 215 | |||||
Settlements | (2) | (6) | (9) | (18) | |||||
Balance at the end of the period | 45 | 1,756 | 45 | 1,756 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | [2] | (307) | (267) | (771) | 830 | ||||
Total [Member] | |||||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||||||
Balance at the beginning of the period | 799 | 2,373 | 1,078 | 1,215 | |||||
Total (gains) losses included in net income | (274) | (268) | (723) | 716 | |||||
Issues | 110 | 102 | 308 | 301 | |||||
Settlements | (13) | (13) | (41) | (38) | |||||
Balance at the end of the period | 622 | 2,194 | 622 | 2,194 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract] | |||||||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | $ (272) | $ (255) | $ (696) | $ 838 | |||||
|
Fair Values of Assets and Liabilities (Unobservable inputs) (Details) - Discounted cash flow [Member] - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
||||||||
IUL embedded derivatives [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Liabilities at fair value | $ 577 | $ 464 | |||||||
Nonperformance risk (as a percent) | [1] | 0.67% | 0.82% | ||||||
GMWB and GMAB embedded derivatives [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Liabilities at fair value | $ 45 | $ 614 | |||||||
Nonperformance risk (as a percent) | [1] | 0.67% | 0.82% | ||||||
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Utilization of guaranteed withdrawals (as a percent) | [2] | 0.00% | 0.00% | ||||||
Surrender rate (as a percent) | 0.10% | 0.10% | |||||||
Market volatility rate (as a percent) | [3] | 4.30% | 5.30% | ||||||
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Utilization of guaranteed withdrawals (as a percent) | [2] | 42.00% | 75.60% | ||||||
Surrender rate (as a percent) | 74.70% | 66.40% | |||||||
Market volatility rate (as a percent) | [3] | 15.90% | 21.20% | ||||||
Corporate debt securities [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Assets at fair value | $ 1,144 | $ 1,154 | |||||||
Corporate debt securities [Member] | Minimum [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Yield/spread to U.S. Treasuries (as a percent) | 0.80% | 0.90% | |||||||
Corporate debt securities [Member] | Maximum [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Yield/spread to U.S. Treasuries (as a percent) | 2.30% | 2.50% | |||||||
Corporate debt securities [Member] | Weighted average [Member] | |||||||||
Fair values of assets and liabilities | |||||||||
Yield/spread to U.S. Treasuries (as a percent) | 1.20% | 1.30% | |||||||
|
Fair Values of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Residential mortgage loans | |
Assets and liabilities measured at fair value | |
Loss on residential mortgage loans | $ 4 |
Non-Recurring basis [Member] | Level 3 [Member] | |
Assets and liabilities measured at fair value | |
Residential mortgage loans, at cost | 255 |
Residential mortgage loans, at fair value | $ 251 |
Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Financial Assets | ||||
Mortgage loans, net | $ 2,880 | $ 2,874 | ||
Policy loans | 841 | 830 | ||
Other investments | 957 | 998 | ||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 29,242 | 29,514 | ||
Short-term borrowings | 201 | 200 | ||
Other liabilities | 4,369 | 4,253 | ||
Separate account liabilities measured at NAV | 80,654 | 76,298 | ||
Carrying value [Member] | ||||
Financial Assets | ||||
Mortgage loans, net | 2,629 | 2,874 | ||
Policy loans | 841 | 830 | ||
Other investments | 401 | 402 | ||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 10,415 | 10,906 | ||
Short-term borrowings | 201 | 200 | ||
Other liabilities | 145 | 177 | ||
Separate account liabilities measured at NAV | 356 | 341 | ||
Recurring basis [Member] | ||||
Financial Assets | ||||
Mortgage loans, net | 2,648 | 2,865 | ||
Policy loans | 797 | 807 | ||
Other investments | 403 | 407 | ||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 11,052 | 11,417 | ||
Short-term borrowings | 201 | 200 | ||
Other liabilities | 140 | 169 | ||
Separate account liabilities measured at NAV | [1] | 356 | 341 | |
Recurring basis [Member] | Level 2 [Member] | ||||
Financial Assets | ||||
Other investments | 352 | 364 | ||
Financial Liabilities | ||||
Short-term borrowings | 201 | 200 | ||
Recurring basis [Member] | Level 3 [Member] | ||||
Financial Assets | ||||
Mortgage loans, net | 2,648 | 2,865 | ||
Policy loans | 797 | 807 | ||
Other investments | 51 | 43 | ||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 11,052 | 11,417 | ||
Other liabilities | $ 140 | $ 169 | ||
|
Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Derivatives: | ||||||||||
Gross amounts of recognized assets | [1] | $ 3,110 | $ 3,346 | |||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2,341) | (2,670) | |||||||
Cash collateral | (636) | (377) | ||||||||
Securities collateral | (109) | (235) | ||||||||
Net amount | 24 | 64 | ||||||||
OTC derivatives [Member] | ||||||||||
Derivatives: | ||||||||||
Gross amounts of recognized assets | 3,079 | 2,822 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2,327) | (2,161) | |||||||
Cash collateral | (636) | (374) | ||||||||
Securities collateral | (109) | (235) | ||||||||
Net amount | 7 | 52 | ||||||||
OTC cleared derivatives [Member] | ||||||||||
Derivatives: | ||||||||||
Gross amounts of recognized assets | 13 | [3] | 510 | |||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (12) | [3] | (507) | ||||||
Cash collateral | (3) | |||||||||
Net amount | 1 | [3] | 0 | |||||||
Exchange-traded derivatives [Member] | ||||||||||
Derivatives: | ||||||||||
Gross amounts of recognized assets | 18 | 14 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2) | (2) | |||||||
Net amount | $ 16 | $ 12 | ||||||||
|
Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Derivatives | ||||||||||
Gross amounts of recognized liabilities | [1] | $ 3,548 | $ 4,084 | |||||||
Repurchase agreements | ||||||||||
Gross amounts of recognized liabilities | 50 | 50 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Securities collateral | (48) | (50) | ||||||||
Net amount | 2 | 0 | ||||||||
Total | ||||||||||
Gross amounts of recognized liabilities | 2,972 | 3,051 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2,341) | (2,670) | |||||||
Cash collateral | (1) | (8) | ||||||||
Securities collateral | (626) | (362) | ||||||||
Net amount | 4 | 11 | ||||||||
OTC derivatives [Member] | ||||||||||
Derivatives | ||||||||||
Gross amounts of recognized liabilities | 2,908 | 2,481 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2,327) | (2,161) | |||||||
Cash collateral | (1) | 0 | ||||||||
Securities collateral | (578) | (312) | ||||||||
Net amount | 2 | 8 | ||||||||
OTC cleared derivatives [Member] | ||||||||||
Derivatives | ||||||||||
Gross amounts of recognized liabilities | 12 | [3] | 515 | |||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (12) | [3] | (507) | ||||||
Cash collateral | (8) | |||||||||
Net amount | 0 | [3] | 0 | |||||||
Exchange-traded derivatives [Member] | ||||||||||
Derivatives | ||||||||||
Gross amounts of recognized liabilities | 2 | 5 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2) | (2) | |||||||
Net amount | 0 | 3 | ||||||||
Total derivatives [Member] | ||||||||||
Derivatives | ||||||||||
Gross amounts of recognized liabilities | 2,922 | 3,001 | ||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||
Financial instruments | [2] | (2,341) | (2,670) | |||||||
Cash collateral | (1) | (8) | ||||||||
Securities collateral | (578) | (312) | ||||||||
Net amount | $ 2 | $ 11 | ||||||||
|
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Derivatives and Hedging Activities | |||||||||
Notional amount | $ 129,089 | $ 137,211 | |||||||
Gross fair value of assets | [1] | 3,110 | 3,346 | ||||||
Gross fair value of liabilities | [2] | 3,548 | 4,084 | ||||||
Fair value of investment securities received as collateral | 122 | 235 | |||||||
Fair value of investment securities received as collateral that can be repledged | 122 | 118 | |||||||
Fair value of investment securities received as collateral that were repledged | 12 | 19 | |||||||
GMWB and GMAB embedded derivatives [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | 449 | 266 | |||||||
Gross fair value of liabilities | 494 | 880 | |||||||
Derivatives not designated as hedging instruments [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Notional amount | 129,089 | 137,211 | |||||||
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Notional amount | 65,248 | 71,019 | |||||||
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Notional amount | 58,359 | 60,419 | |||||||
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Notional amount | 718 | 1,039 | |||||||
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Notional amount | 4,314 | 4,494 | |||||||
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Notional amount | 450 | 240 | |||||||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | [1] | 3,110 | 3,346 | ||||||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | [1] | 1,171 | 1,735 | ||||||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | [1] | 1,893 | 1,530 | ||||||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | [1] | 4 | 1 | ||||||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | [1] | 42 | 80 | ||||||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of assets | [1] | 0 | 0 | ||||||
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 2,922 | 3,001 | ||||||
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 416 | 965 | ||||||
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 2,479 | 1,989 | ||||||
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 27 | 47 | ||||||
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 0 | 0 | ||||||
Policyholder account balances, future policy benefits and claims [Member] | GMWB and GMAB embedded derivatives [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2],[3] | 45 | 614 | ||||||
Policyholder account balances, future policy benefits and claims [Member] | IUL embedded derivatives [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 577 | 464 | ||||||
Policyholder account balances, future policy benefits and claims [Member] | EIA embedded derivatives [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | 4 | 5 | ||||||
Policyholder account balances, future policy benefits and claims [Member] | Total embedded derivatives [Member] | |||||||||
Derivatives and Hedging Activities | |||||||||
Gross fair value of liabilities | [2] | $ 626 | $ 1,083 | ||||||
|
Derivatives and Hedging Activities (Income Statement) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Interest credited to fixed accounts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ (6) | $ 7 | $ 7 | $ 22 |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (24) | (5) | (43) | 12 |
Benefits, claims, losses and settlement expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (3) | (185) | (278) | (341) |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 227 | 209 | 569 | (905) |
Derivatives not designated as hedging instruments [Member] | Interest credited to fixed accounts [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 18 | 12 | 50 | 10 |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 15 | (13) | 63 | 1,191 |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (241) | (364) | (859) | (525) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Credit contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (3) | (3) | (22) | (34) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | (12) | (27) | (66) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Other contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ (2) | $ (2) | $ (2) | $ (2) |
Derivatives and Hedging Activities (Option Pay/Rec) (Details) $ in Millions |
Sep. 30, 2017
USD ($)
|
|||
---|---|---|---|---|
Summary of option premiums payable and receivable | ||||
Premiums payable | $ 1,617 | |||
Premiums receivable | 711 | |||
2017 [Member] | ||||
Summary of option premiums payable and receivable | ||||
Premiums payable | 95 | [1] | ||
Premiums receivable | 25 | [1] | ||
2018 [Member] | ||||
Summary of option premiums payable and receivable | ||||
Premiums payable | 213 | |||
Premiums receivable | 129 | |||
2019 [Member] | ||||
Summary of option premiums payable and receivable | ||||
Premiums payable | 275 | |||
Premiums receivable | 170 | |||
2020 [Member] | ||||
Summary of option premiums payable and receivable | ||||
Premiums payable | 197 | |||
Premiums receivable | 98 | |||
2021 [Member] | ||||
Summary of option premiums payable and receivable | ||||
Premiums payable | 168 | |||
Premiums receivable | 107 | |||
2022-2026 [Member] | ||||
Summary of option premiums payable and receivable | ||||
Premiums payable | 669 | |||
Premiums receivable | $ 182 | |||
|
Derivatives and Hedging Activities (Cash Flow Hedges and Credit Risk) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
General Cash Flow Hedge Information [Abstract] | ||
Derivatives designated as cash flow hedges | $ 0 | |
Cash flow hedge loss to be reclassified within twelve months | $ 3 | |
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 1 year | |
Derivatives liabilities, credit risk related contingent features | ||
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments | $ 368 | $ 206 |
Aggregate fair value of assets posted as collateral for such instruments | 366 | 198 |
Aggregate fair value of additional assets required to be posted or needed to settle the instruments | $ 2 | $ 8 |
Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Net unrealized securities gains (losses) arising during the period, pretax | [1] | $ 52 | $ 75 | $ 245 | $ 1,067 | ||||||
Reclassification of net securities (gains) losses included in net income, pretax | [2] | (3) | (1) | (34) | (7) | ||||||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, pretax | (61) | (114) | (168) | (533) | |||||||
Net unrealized securities gains (losses), pretax | (12) | (40) | 43 | 527 | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Reclassification of net derivative (gains) losses included in net income, pretax | [3] | 1 | 1 | 4 | 4 | ||||||
Net unrealized derivative gains (losses), pretax | 1 | 1 | 4 | 4 | |||||||
Other, pretax | (1) | 0 | |||||||||
Other comprehensive income (loss), pretax | (11) | (39) | 46 | 531 | |||||||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Net unrealized securities gains (losses) arising during the period, tax | [1] | (18) | (25) | (85) | (375) | ||||||
Reclassification of net securities (gains) losses included in net income, tax | [2] | 1 | 0 | 12 | 2 | ||||||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, tax | 22 | 39 | 59 | 186 | |||||||
Net unrealized securities gains (losses), tax | 5 | 14 | (14) | (187) | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Reclassification of net derivative (gains) losses included in net income, tax | [3] | 0 | 0 | (1) | (1) | ||||||
Net unrealized derivatives gains (losses), tax | 0 | 0 | (1) | (1) | |||||||
Other, tax | 0 | 0 | |||||||||
Other comprehensive income (loss), tax | 5 | 14 | (15) | (188) | |||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Net unrealized securities gains (losses) arising during the period, net of tax | [1] | 34 | 50 | 160 | 692 | ||||||
Reclassification of net securities (gains) losses included in net income, net of tax | [2] | 2 | 1 | 22 | 5 | ||||||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | (39) | (75) | (109) | (347) | |||||||
Net unrealized securities gains (losses), net of tax | (7) | (26) | 29 | 340 | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Reclassification of net derivative (gains) losses included in net income, net of tax | [3] | 1 | 1 | 3 | 3 | ||||||
Net unrealized derivatives gains (losses), net of tax | 1 | 1 | 3 | 3 | |||||||
Other, net of tax | 0 | 0 | (1) | 0 | |||||||
Total other comprehensive income (loss), net of tax | $ (6) | $ (25) | $ 31 | $ 343 | |||||||
|
Shareholder's Equity Shareholder's Equity (Reclassifications) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 494 | $ 763 | $ 457 | $ 395 | ||
OCI before reclassifications | (5) | (25) | 50 | 345 | ||
Amounts reclassified from AOCI | (1) | 0 | (19) | (2) | ||
Total OCI | (6) | (25) | 31 | 343 | ||
Ending balance | 488 | 738 | 488 | 738 | ||
Net unrealized securities gains [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 497 | 769 | 461 | 403 | ||
OCI before reclassifications | (5) | (25) | 51 | 345 | ||
Amounts reclassified from AOCI | (2) | (1) | (22) | (5) | ||
Total OCI | (7) | (26) | 29 | 340 | ||
Ending balance | [1] | 490 | 743 | 490 | 743 | |
Noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities | 2 | 1 | 2 | 1 | ||
Net unrealized derivatives gains [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (2) | (6) | (4) | (8) | ||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI | 1 | 1 | 3 | 3 | ||
Total OCI | 1 | 1 | 3 | 3 | ||
Ending balance | (1) | $ (5) | (1) | $ (5) | ||
Other [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (1) | 0 | ||||
OCI before reclassifications | 0 | (1) | ||||
Total OCI | 0 | (1) | ||||
Ending balance | $ (1) | $ (1) | ||||
|
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate (as a percent) | 11.80% | 1900.00% | 9.40% | 5.80% | |
Valuation allowance | $ 10 | $ 10 | $ 8 | ||
Gross unrecognized tax benefits | 62 | 62 | 59 | ||
Unrecognized tax benefits, net of federal tax benefits, that would affect the effective tax rate if recognized | 6 | 6 | 6 | ||
Net increase (decrease) in interest and penalties | (1) | $ 0 | 1 | $ (39) | |
Payable related to accrued interest and penalties | 3 | 3 | $ 2 | ||
State and local jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
State net operating losses | $ 9 | $ 9 |
Contingencies (Details) - Future guaranty fund assessments [Member] - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Contingencies | ||
Liability related to guaranty fund assessments | $ 15 | $ 16 |
Related premium tax asset | $ 12 | $ 14 |
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