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Segment Information
 9 Months Ended
Sep. 30, 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 closed on October 1, 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:
 
September 30,
2019
 
December 31,
2018
(in millions)
Advice & Wealth Management
$
16,419

 
$
14,480

Asset Management
7,759

 
7,558

Annuities
97,140

 
88,771

Protection
16,198

 
17,126

Corporate & Other
10,011

 
9,281

Assets held for sale
1,986

 
—

Total assets
$
149,513

 
$
137,216

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
2019
 
2018
2019
 
2018
(in millions)
Adjusted operating net revenues:
 
 
 
 
 
 
 
Advice & Wealth Management
$
1,682

 
$
1,564

 
$
4,889

 
$
4,608

Asset Management
742

 
772

 
2,143

 
2,305

Annuities
617

 
628

 
1,841

 
1,863

Protection
265

 
328

 
786

 
836

Corporate & Other
356

 
330

 
1,050

 
987

Less: Eliminations (1)(2)
362

 
354

 
1,044

 
1,073

Total segment adjusted operating net revenues
3,300

 
3,268

 
9,665

 
9,526

Net realized gains (losses)
(13
)
 
4

 
(4
)
 
15

Revenue attributable to consolidated investment entities
22

 
22

 
67

 
93

Market impact on IUL benefits, net
17

 
(8
)
 
(8
)
 
(5
)
Market impact of hedges on investments
(9
)
 
6

 
(37
)
 
27

Integration and restructuring charges
—

 
—

 
(3
)
 
—

Total net revenues per Consolidated Statements of Operations
$
3,317

 
$
3,292

 
$
9,680

 
$
9,656

(1) 
Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2019 and 2018 in each segment as follows: Advice & Wealth Management ($240 million and $235 million, respectively); Asset Management ($13 million and $13 million, respectively); Annuities ($94 million and $91 million, respectively); Protection ($16 million and $17 million, respectively); and Corporate & Other ($(1) million and $(2) million, respectively).
(2) 
Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2019 and 2018 in each segment as follows: Advice & Wealth Management ($689 million and $722 million, respectively); Asset Management ($40 million and $37 million, respectively); Annuities ($273 million and $271 million, respectively); Protection ($46 million and $46 million, respectively); and Corporate & Other ($(4) million and $(3) million, respectively).

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
2019
 
2018
2019
 
2018
(in millions)
Adjusted operating earnings:
 
 
 
 
 
 
 
Advice & Wealth Management
$
396

 
$
355

 
$
1,122

 
$
1,021

Asset Management
173

 
197

 
483

 
575

Annuities
120

 
129

 
377

 
377

Protection
57

 
60

 
196

 
188

Corporate & Other
(91
)
 
(120
)
 
(215
)
 
(255
)
Total segment adjusted operating earnings
655

 
621

 
1,963

 
1,906

Net realized gains (losses)
(11
)
 
4

 
(2
)
 
15

Net income (loss) attributable to consolidated investment entities
(1
)
 
—

 
—

 
—

Market impact on variable annuity guaranteed benefits, net
(2
)
 
(45
)
 
(204
)
 
(130
)
Market impact on IUL benefits, net
48

 
(13
)
 
(29
)
 
(8
)
Market impact on fixed annuity benefits, net
(1
)
 
—

 
—

 
—

Mean reversion related impacts
(36
)
 
24

 
18

 
38

Market impact of hedges on investments
(9
)
 
6

 
(37
)
 
27

Integration and restructuring charges
(2
)
 
(9
)
 
(11
)
 
(16
)
Pretax income per Consolidated Statements of Operations
$
641

 
$
588

 
$
1,698

 
$
1,832