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Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments [Abstract]  
Schedule of amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
 
 
Amortized
cost
 
Gross unrealized
 
Fair
value
($ in millions)
 
 
Gains
 
Losses
 
December 31, 2019
 
 
 
 
 
 
 
 
U.S. government and agencies
 
$
4,971

 
$
141

 
$
(26
)
 
$
5,086

Municipal
 
8,080

 
551

 
(11
)
 
8,620

Corporate
 
41,090

 
2,035

 
(47
)
 
43,078

Foreign government
 
968

 
16

 
(5
)
 
979

ABS
 
860

 
8

 
(6
)
 
862

MBS
 
324

 
96

 
(1
)
 
419

Total fixed income securities
 
$
56,293

 
$
2,847

 
$
(96
)
 
$
59,044

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
U.S. government and agencies
 
$
5,386

 
$
137

 
$
(6
)
 
$
5,517

Municipal
 
8,963

 
249

 
(43
)
 
9,169

Corporate
 
40,557

 
491

 
(890
)
 
40,158

Foreign government
 
739

 
13

 
(5
)
 
747

ABS
 
1,049

 
6

 
(10
)
 
1,045

MBS
 
440

 
97

 
(3
)
 
534

Total fixed income securities
 
$
57,134

 
$
993

 
$
(957
)
 
$
57,170
Schedule for fixed income securities based on contractual maturities
Scheduled maturities for fixed income securities
 
 
As of December 31, 2019
($ in millions)
 
Amortized
cost
 
Fair
value
Due in one year or less
 
$
3,214

 
$
3,239

Due after one year through five years
 
24,108

 
24,781

Due after five years through ten years
 
18,194

 
19,177

Due after ten years
 
9,593

 
10,566

 
 
55,109

 
57,763

ABS and MBS
 
1,184

 
1,281

Total
 
$
56,293

 
$
59,044
Schedule of realized capital gains and losses by asset type
Realized capital gains (losses) by asset type
 
 
For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
Fixed income securities
 
$
461

 
$
(237
)
 
$
94

Equity securities
 
1,210

 
(594
)
 
255

Mortgage loans
 
—

 
2

 
1

Limited partnership interests
 
200

 
(101
)
 
132

Derivatives
 
(15
)
 
46

 
(46
)
Other
 
29

 
7

 
9

Realized capital gains and losses
 
$
1,885

 
$
(877
)
 
$
445
Schedule of realized capital gains and losses by transaction type
Realized capital gains (losses) by transaction type
 
 
For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
Impairment write-downs
 
$
(47
)
 
$
(14
)
 
$
(102
)
Change in intent write-downs
 
—

 
—

 
(48
)
Net OTTI losses recognized in earnings
 
(47
)
 
(14
)
 
(150
)
Sales
 
575

 
(215
)
 
641

Valuation of equity investments (1)
 
1,372

 
(691
)
 
—

Valuation and settlements of derivative instruments
 
(15
)
 
43

 
(46
)
Realized capital gains and losses
 
$
1,885

 
$
(877
)
 
$
445


(1) 
Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Realized gain (loss) on investments
The following table presents the net pre-tax appreciation (decline) recognized in net income of equity securities and limited partnership interests carried at fair value that are still held as of December 31, 2019 and 2018, respectively.
Net appreciation (decline) recognized in net income
 
 
For the years ended December 31,
($ in millions)
 
2019
 
2018
Equity securities
 
$
1,073

 
$
(261
)
Limited partnership interests carried at fair value
 
149

 
249

Total
 
$
1,222

 
$
(12
)

Net investment income
 
 
For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
Fixed income securities
 
$
2,175

 
$
2,077

 
$
2,078

Equity securities
 
206

 
170

 
174

Mortgage loans
 
220

 
217

 
206

Limited partnership interests
 
471

 
705

 
889

Short-term investments
 
102

 
73

 
30

Other
 
262

 
272

 
236

Investment income, before expense
 
3,436

 
3,514

 
3,613

Investment expense
 
(277
)
 
(274
)
 
(212
)
Net investment income
 
$
3,159

 
$
3,240

 
$
3,401
Schedule of other-than-temporary impairment losses by asset type
OTTI losses by asset type
 
 
 For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
 
 
Gross
 
Included in OCI
 
Net
 
Gross
 
Included in OCI
 
Net
 
Gross
 
Included in OCI
 
Net
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal
 
$
(2
)
 
$
2

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(3
)
 
$
(4
)
Corporate
 
(5
)
 
(2
)
 
(7
)
 
(4
)
 
2

 
(2
)
 
(9
)
 
3

 
(6
)
ABS
 
(4
)
 
—

 
(4
)
 
(1
)
 
(2
)
 
(3
)
 
(1
)
 
(2
)
 
(3
)
MBS
 
(4
)
 
1

 
(3
)
 
(4
)
 
(1
)
 
(5
)
 
(11
)
 
(2
)
 
(13
)
Total fixed income securities
 
(15
)
 
1

 
(14
)
 
(9
)
 
(1
)
 
(10
)
 
(22
)
 
(4
)
 
(26
)
Equity securities
 
—

 
—

 
—

 
—

 
—

 
—

 
(86
)
 
—

 
(86
)
Mortgage loans
 
—

 
—

 
—

 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Limited partnership interests
 
(6
)
 
—

 
(6
)
 
(3
)
 
—

 
(3
)
 
(32
)
 
—

 
(32
)
Other
 
(27
)
 
—

 
(27
)
 
(1
)
 
—

 
(1
)
 
(5
)
 
—

 
(5
)
OTTI losses
 
$
(48
)

$
1


$
(47
)

$
(13
)

$
(1
)

$
(14
)

$
(146
)

$
(4
)

$
(150
)
Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income
OTTI losses included in AOCI at the time of impairment for fixed income securities which were not included in earnings (1)
 
 
As of December 31,
($ in millions)
 
2019
 
2018
Municipal
 
$
(7
)
 
$
(5
)
Corporate
 
—

 
(2
)
ABS
 
(10
)
 
(10
)
MBS
 
(56
)
 
(69
)
Total
 
$
(73
)
 
$
(86
)

(1) 
The amounts exclude $161 million and $180 million as of December 31, 2019 and 2018, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.
Schedule of credit losses on fixed income securities recognized in earnings
Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held
 
 
As of December 31,
($ in millions)
 
2019
 
2018
 
2017
Beginning balance
 
$
(204
)
 
$
(226
)
 
$
(318
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(10
)
 
(7
)
 
(18
)
Additional credit loss for securities not previously other-than-temporarily impaired
 
(4
)
 
(3
)
 
(8
)
Reduction in credit loss for securities disposed or collected
 
32

 
30

 
116

Change in credit loss due to accretion of increase in cash flows
 
—

 
2

 
2

Ending balance
 
$
(186
)

$
(204
)

$
(226
)
Schedule of unrealized net capital gains and losses
Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net gains (losses)
December 31, 2019
 
 
Gains
 
Losses
 
Fixed income securities
 
$
59,044

 
$
2,847

 
$
(96
)
 
$
2,751

Short-term investments
 
4,256

 
—

 
—

 
—

Derivative instruments
 
—

 
—

 
(3
)
 
(3
)
EMA limited partnerships (1)
 
 
 
 
 
 
 
(4
)
Unrealized net capital gains and losses, pre-tax
 
 
 
 
 
 
 
2,744

Amounts recognized for:
 
 
 
 
 
 
 
 
Insurance reserves (2)
 
 
 
 
 
 
 
(126
)
DAC and DSI (3)
 
 
 
 
 
 
 
(224
)
Amounts recognized
 
 
 
 
 
 
 
(350
)
Deferred income taxes
 
 
 
 
 
 
 
(507
)
Unrealized net capital gains and losses, after-tax
 
 
 
 
 
 
 
$
1,887

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
Fixed income securities
 
$
57,170

 
$
993

 
$
(957
)
 
$
36

Short-term investments
 
3,027

 
—

 
—

 
—

Derivative instruments
 
—

 
—

 
(3
)
 
(3
)
EMA limited partnerships
 
 
 
 
 
 
 
—

Unrealized net capital gains and losses, pre-tax
 
 
 
 
 
 
 
33

Amounts recognized for:
 
 
 
 
 
 
 
 
Insurance reserves
 
 
 
 
 
 
 
—

DAC and DSI
 
 
 
 
 
 
 
(33
)
Amounts recognized
 
 
 
 
 
 
 
(33
)
Deferred income taxes
 
 
 
 
 
 
 
(2
)
Unrealized net capital gains and losses, after-tax
 
 
 
 
 
 
 
$
(2
)

(1) 
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.
(2) 
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).
(3) 
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
Change in unrealized net capital gains (losses)
 
 
 For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
Fixed income securities
 
$
2,715

 
$
(1,431
)
 
$
204

Equity securities (1)
 
—

 
—

 
651

Derivative instruments
 
—

 
(2
)
 
(3
)
EMA limited partnerships
 
(4
)
 
(1
)
 
5

Total
 
2,711

 
(1,434
)
 
857

Amounts recognized for:
 
 
 
 
 
 
Insurance reserves
 
(126
)
 
315

 
(315
)
DAC and DSI
 
(191
)
 
163

 
(50
)
Amounts recognized
 
(317
)
 
478

 
(365
)
Deferred income taxes
 
(505
)
 
202

 
117

Increase (decrease) in unrealized net capital gains and losses, after-tax
 
$
1,889


$
(754
)

$
609
Schedule of change in unrealized net capital gains and losses
Change in unrealized net capital gains (losses)
 
 
 For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
Fixed income securities
 
$
2,715

 
$
(1,431
)
 
$
204

Equity securities (1)
 
—

 
—

 
651

Derivative instruments
 
—

 
(2
)
 
(3
)
EMA limited partnerships
 
(4
)
 
(1
)
 
5

Total
 
2,711

 
(1,434
)
 
857

Amounts recognized for:
 
 
 
 
 
 
Insurance reserves
 
(126
)
 
315

 
(315
)
DAC and DSI
 
(191
)
 
163

 
(50
)
Amounts recognized
 
(317
)
 
478

 
(365
)
Deferred income taxes
 
(505
)
 
202

 
117

Increase (decrease) in unrealized net capital gains and losses, after-tax
 
$
1,889


$
(754
)

$
609


(1) 
Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.
Schedule of gross unrealized losses and fair value of available for sale securities by length of time
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
 
 
Less than 12 months
 
12 months or more
 
 
($ in millions)
 
Number of issues
 
Fair value
 
Unrealized losses
 
Number of issues
 
Fair value
 
Unrealized losses
 
Total unrealized losses
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
31

 
$
1,713

 
$
(26
)
 
10

 
$
26

 
$
—

 
$
(26
)
Municipal
 
307

 
576

 
(9
)
 
1

 
14

 
(2
)
 
(11
)
Corporate
 
186

 
1,392

 
(20
)
 
65

 
485

 
(27
)
 
(47
)
Foreign government
 
55

 
412

 
(4
)
 
6

 
102

 
(1
)
 
(5
)
ABS
 
36

 
193

 
(2
)
 
23

 
160

 
(4
)
 
(6
)
MBS
 
27

 
15

 
—

 
123

 
14

 
(1
)
 
(1
)
Total fixed income securities
 
642

 
$
4,301

 
$
(61
)
 
228

 
$
801

 
$
(35
)
 
$
(96
)
Investment grade fixed income securities
 
581

 
$
3,878

 
$
(41
)
 
185

 
$
594

 
$
(20
)
 
$
(61
)
Below investment grade fixed income securities
 
61

 
423

 
(20
)
 
43

 
207

 
(15
)
 
(35
)
Total fixed income securities
 
642

 
$
4,301

 
$
(61
)
 
228

 
$
801

 
$
(35
)
 
$
(96
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
11

 
$
55

 
$
—

 
38

 
$
364

 
$
(6
)
 
$
(6
)
Municipal
 
943

 
1,633

 
(10
)
 
1,147

 
1,554

 
(33
)
 
(43
)
Corporate
 
1,736

 
19,243

 
(543
)
 
645

 
8,374

 
(347
)
 
(890
)
Foreign government
 
7

 
20

 
(1
)
 
27

 
412

 
(4
)
 
(5
)
ABS
 
64

 
454

 
(5
)
 
28

 
161

 
(5
)
 
(10
)
MBS
 
169

 
37

 
—

 
197

 
52

 
(3
)
 
(3
)
Total fixed income securities
 
2,930

 
$
21,442

 
$
(559
)
 
2,082

 
$
10,917

 
$
(398
)
 
$
(957
)
Investment grade fixed income securities
 
2,348

 
$
17,485

 
$
(331
)
 
2,021

 
$
10,626

 
$
(360
)
 
$
(691
)
Below investment grade fixed income securities
 
582

 
3,957

 
(228
)
 
61

 
291

 
(38
)
 
(266
)
Total fixed income securities
 
2,930


$
21,442


$
(559
)

2,082


$
10,917


$
(398
)

$
(957
)

Gross unrealized losses by unrealized loss position and credit quality as of December 31, 2019
($ in millions)
 
Investment
grade
 
Below investment grade
 
Total
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)
 
$
(48
)
 
$
(27
)
 
$
(75
)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost (3) (4)
 
(13
)
 
(8
)
 
(21
)
Total unrealized losses
 
$
(61
)
 
$
(35
)
 
$
(96
)
(1) 
Below investment grade fixed income securities include $14 million that have been in an unrealized loss position for less than twelve months.
(2) 
Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.
(3) 
No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months.
(4) 
Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.
Principal geographic distribution of commercial real estate represented in the mortgage portfolio
Principal geographic distribution of commercial real estate exceeding 5% of the mortgage loans portfolio
 
 
As of December 31,
(% of mortgage loan portfolio carrying value)
 
2019
 
2018
Texas
 
16.9
%
 
14.9
%
California
 
15.1

 
16.4

Illinois
 
7.1

 
7.8

Florida
 
6.4

 
6.1

New Jersey
 
5.6

 
6.8

North Carolina
 
4.5

 
5.1
Types of property collateralizing the mortgage loans
Types of properties collateralizing the mortgage loan portfolio
 
 
As of December 31,
(% of mortgage loan portfolio carrying value)
 
2019
 
2018
Apartment complex
 
36.8
%
 
34.4
%
Office buildings
 
22.6

 
24.5

Warehouse
 
16.8

 
15.8

Retail
 
13.4

 
14.4

Other
 
10.4

 
10.9

Total
 
100.0
%
 
100.0
%
Contractual maturities of the commercial mortgage loan portfolio
Contractual maturities of the mortgage loan portfolio
 
 
As of December 31, 2019
($ in millions)
 
Number of loans
 
Carrying value
 
Percent
2020
 
9

 
$
58

 
1.2
%
2021
 
36

 
446

 
9.3

2022
 
28

 
460

 
9.5

2023
 
52

 
776

 
16.1

Thereafter
 
161

 
3,077

 
63.9

Total
 
286

 
$
4,817

 
100.0
%
Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution
Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
 
 
As of December 31,
($ in millions)
 
2019
 
2018
Debt Service Coverage Ratio Distribution
 
Fixed rate mortgage loans
 
Variable rate mortgage loans
 
Total
 
Fixed rate mortgage loans
 
Variable rate mortgage loans
 
Total
Below 1.0
 
$
13

 
$
32

 
$
45

 
$
6

 
$
31

 
$
37

1.0 - 1.25
 
225

 
—

 
225

 
273

 
—

 
273

1.26 - 1.50
 
1,219

 
18

 
1,237

 
1,192

 
—

 
1,192

Above 1.50
 
3,264

 
38

 
3,302

 
3,063

 
101

 
3,164

Total non-impaired mortgage loans
 
$
4,721

 
$
88

 
$
4,809

 
$
4,534

 
$
132

 
$
4,666
Net carrying value of impaired mortgage loans
Net carrying value of impaired mortgage loans
 
 
As of December 31,
($ in millions)
 
2019
 
2018
Impaired mortgage loans with a valuation allowance
 
$
8

 
$
4

Impaired mortgage loans without a valuation allowance
 
—

 
—

Total impaired mortgage loans
 
$
8

 
$
4

Valuation allowance on impaired mortgage loans
 
$
3

 
$
3
Valuation allowance on impaired mortgage loans
Rollforward of the valuation allowance on impaired mortgage loans
 
 
 For the years ended December 31,
($ in millions)
 
2019
 
2018
 
2017
Beginning balance
 
$
3

 
$
3

 
$
3

Net increase in valuation allowance
 
—

 
—

 
1

Charge offs
 
—

 
—

 
(1
)
Ending balance
 
$
3

 
$
3

 
$
3
Principal geographic distribution of municipal bond
Principal geographic distribution of municipal bond issuers exceeding 5% of the portfolio
 
 
As of December 31,
(% of municipal bond portfolio carrying value)
 
2019
 
2018
Texas
 
12.7
%
 
12.3
%
California
 
8.6

 
7.4

Colorado
 
5.8

 
4.0

Washington
 
5.5

 
6.2

New York
 
3.7

 
5.6
Schedule of other investments, by type
Other investments by asset type
($ in millions)
 
December 31, 2019
 
December 31, 2018
Bank loans
 
$
1,204

 
$
1,350

Real estate
 
1,005

 
791

Policy loans
 
894

 
891

Agent loans
 
666

 
620

Derivatives and other
 
236

 
200

Total
 
$
4,005

 
$
3,852