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Segment Information
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information[Text Block] Segment Information
The Company’s reporting segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other.
Beginning in the first quarter of 2019, the results of AAH, which had been reported as part of the Protection segment, are reflected in the Corporate & Other segment due to the sale of AAH, which is expected to close in the second half of 2019. Prior periods presented have been restated to reflect the change. See Note 15 for additional information on the sale of AAH.
The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis.
Management uses segment adjusted operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, adjusted operating earnings is the Company’s measure of segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. The Company believes the presentation of segment adjusted operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis.
Effective first quarter of 2019, management has excluded mean reversion related impacts from the Company’s adjusted operating measures. Prior periods have been updated to reflect this change to be consistent with the current period presentation. The mean reversion related impact is defined as the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves.
Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. Adjusted operating net revenues and adjusted operating expenses exclude the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), mean reversion related impacts, integration and restructuring charges and the impact of consolidating investment entities. Adjusted operating net revenues also exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments. Adjusted operating expenses also exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), the market impact on fixed index annuity benefits (net of hedges and the related DAC amortization), and the DSIC and DAC amortization offset to net realized investment gains or losses. The market impact on variable annuity guaranteed benefits, fixed index annuity benefits and IUL benefits includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread.
The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:
 
March 31,
2019
 
December 31,
2018
(in millions)
Advice & Wealth Management
$
14,218

 
$
14,480

Asset Management
8,084

 
7,558

Annuities
93,594

 
88,771

Protection
16,435

 
17,126

Corporate & Other
10,045

 
9,281

Assets held for sale
2,027

 
—

Total assets
$
144,403

 
$
137,216

 
Three Months Ended March 31,
2019
 
2018
(in millions)
Adjusted operating net revenues:
 
 
 
Advice & Wealth Management
$
1,554

 
$
1,501

Asset Management
689

 
778

Annuities
604

 
613

Protection
262

 
253

Corporate & Other
342

 
323

Less: Eliminations (1)
333

 
357

Total segment adjusted operating net revenues
3,118

 
3,111

Net realized gains (losses)
9

 
6

Revenue attributable to consolidated investment entities
21

 
22

Market impact on IUL benefits, net
(17
)
 
13

Market impact of hedges on investments
(10
)
 
16

Integration and restructuring charges
(3
)
 
—

Total net revenues per Consolidated Statements of Operations
$
3,118

 
$
3,168


(1) 
Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2019 and 2018 in each segment as follows: Advice & Wealth Management ($219 million and $240 million, respectively); Asset Management ($13 million and $12 million, respectively); Annuities ($88 million and $90 million, respectively); Protection ($15 million and $16 million, respectively); and Corporate & Other ($(2) million and $(1) million, respectively).

 
Three Months Ended March 31,
2019
 
2018
(in millions)
Adjusted operating earnings:
 
 
 
Advice & Wealth Management
$
350

 
$
316

Asset Management
146

 
195

Annuities
128

 
126

Protection
74

 
65

Corporate & Other
(63
)
 
(51
)
Total segment adjusted operating earnings
635

 
651

Net realized gains (losses)
9

 
6

Market impact on variable annuity guaranteed benefits, net
(142
)
 
(5
)
Market impact on IUL benefits, net
(51
)
 
25

Mean reversion related impacts
36

 
6

Market impact of hedges on investments
(10
)
 
16

Integration and restructuring charges
(7
)
 
(3
)
Pretax income per Consolidated Statements of Operations
$
470

 
$
696