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Fair Value of Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis
Assets and liabilities measured at fair value
 
 
As of December 31, 2019
($ in millions)
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
Counterparty and cash collateral netting
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
$
4,689

 
$
397

 
$
—

 
 
 
$
5,086

Municipal
 
—

 
8,558

 
62

 
 
 
8,620

Corporate - public
 
—

 
30,819

 
61

 
 
 
30,880

Corporate - privately placed
 
—

 
12,084

 
114

 
 
 
12,198

Foreign government
 
—

 
979

 
—

 
 
 
979

ABS
 
—

 
797

 
65

 
 
 
862

MBS
 
—

 
379

 
40

 
 
 
419

Total fixed income securities
 
4,689

 
54,013

 
342

 
 
 
59,044

Equity securities
 
7,407

 
384

 
371

 
 
 
8,162

Short-term investments
 
1,940

 
2,291

 
25

 
 
 
4,256

Other investments: Free-standing derivatives
 
—

 
180

 
—

 
(40
)
 
140

Separate account assets
 
3,044

 
—

 
—

 
 
 
3,044

Other assets
 
1

 
—

 
—

 
 
 
1

Total recurring basis assets
 
17,081

 
56,868

 
738

 
(40
)
 
74,647

Total assets at fair value
 
$
17,081

 
$
56,868

 
$
738

 
$
(40
)
 
$
74,647

% of total assets at fair value
 
22.9
%
 
76.2
%
 
1.0
%
 
(0.1
)%
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
Investments reported at NAV
 
 
 
 
 
 
 
 
 
1,814

Total
 
 
 
 
 
 
 
 
 
$
76,461

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
(462
)
 
 
 
$
(462
)
Other liabilities: Free-standing derivatives
 
—

 
(84
)
 
—

 
$
12

 
(72
)
Total recurring basis liabilities
 
$
—

 
$
(84
)
 
$
(462
)
 
$
12

 
$
(534
)
% of total liabilities at fair value
 
—
%
 
15.7
%
 
86.5
%
 
(2.2
)%
 
100.0
%



Assets and liabilities measured at fair value
 
 
As of December 31, 2018
($ in millions)
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
Counterparty and cash collateral netting
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
$
5,085

 
$
432

 
$
—

 
 
 
$
5,517

Municipal
 
—

 
9,099

 
70

 
 
 
9,169

Corporate - public
 
—

 
29,200

 
70

 
 
 
29,270

Corporate - privately placed
 
—

 
10,798

 
90

 
 
 
10,888

Foreign government
 
—

 
747

 
—

 
 
 
747

ABS
 
—

 
976

 
69

 
 
 
1,045

MBS
 
—

 
508

 
26

 
 
 
534

Total fixed income securities
 
5,085

 
51,760

 
325

 
 
 
57,170

Equity securities
 
4,364

 
331

 
341

 
 
 
5,036

Short-term investments
 
1,338

 
1,659

 
30

 
 
 
3,027

Other investments: Free-standing derivatives
 
—

 
139

 
1

 
$
(23
)
 
117

Separate account assets
 
2,805

 
—

 
—

 
 
 
2,805

Other assets
 
2

 
—

 
—

 
 
 
2

Total recurring basis assets
 
$
13,594


$
53,889


$
697


$
(23
)

$
68,157

% of total assets at fair value
 
19.9
%
 
79.1
%
 
1.0
%
 
—
 %
 
100.0
%
Investments reported at NAV
 
 
 
 
 
 
 
 
 
1,779

Total
 
 
 
 
 
 
 
 
 
$
69,936

Liabilities
 
 
 
 
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
(224
)
 
 
 
$
(224
)
Other liabilities: Free-standing derivatives
 
(1
)
 
(62
)
 
—

 
$
6

 
(57
)
Total recurring basis liabilities
 
$
(1
)
 
$
(62
)
 
$
(224
)
 
$
6

 
$
(281
)
% of total liabilities at fair value
 
0.3
%
 
22.1
%
 
79.7
%
 
(2.1
)%
 
100.0
%
Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)
 
Fair value
 
Valuation
technique
 
Unobservable
input
 
Range
 
Weighted
average
December 31, 2019
 
 
 
 
 
 
 
 
 
 
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options
 
$
(430
)
 
Stochastic cash flow model
 
Projected option cost
 
1.0 - 4.2%
 
2.67%
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options
 
$
(185
)
 
Stochastic cash flow model
 
Projected option cost
 
1.0 - 2.2%
 
1.74%
Summary of quantitative information about the significant unobservable inputs
Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)
 
Fair value
 
Valuation
technique
 
Unobservable
input
 
Range
 
Weighted
average
December 31, 2019
 
 
 
 
 
 
 
 
 
 
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options
 
$
(430
)
 
Stochastic cash flow model
 
Projected option cost
 
1.0 - 4.2%
 
2.67%
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options
 
$
(185
)
 
Stochastic cash flow model
 
Projected option cost
 
1.0 - 2.2%
 
1.74%
Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis
Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2019
 
 
Balance as of December 31, 2018
 
Total gains (losses) included in:
 
 Transfers
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2019
($ in millions)
 
 
Net income
 
OCI
 
Into Level 3
 
Out of Level 3
 
Purchases
 
Sales
 
Issues
 
Settlements
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal
 
$
70

 
$
1

 
$
4

 
$
—

 
$
(5
)
 
$
—

 
$
(5
)
 
$
—

 
$
(3
)
 
$
62

Corporate - public
 
70

 
—

 
3

 
30

 
(113
)
 
86

 
(11
)
 
—

 
(4
)
 
61

Corporate - privately placed
 
90

 
(1
)
 
2

 
43

 
(2
)
 
4

 
(13
)
 
—

 
(9
)
 
114

ABS
 
69

 
1

 
(1
)
 
76

 
(210
)
 
159

 
(22
)
 
—

 
(7
)
 
65

MBS
 
26

 
—

 
(2
)
 
9

 
—

 
9

 
—

 
—

 
(2
)
 
40

Total fixed income securities
 
325

 
1

 
6

 
158

 
(330
)
 
258

 
(51
)
 
—

 
(25
)
 
342

Equity securities
 
341

 
30

 
—

 
—

 
—

 
82

 
(82
)
 
—

 
—

 
371

Short-term investments
 
30

 
—

 
—

 
—

 
—

 
35

 
(40
)
 
—

 
—

 
25

Free-standing derivatives, net
 
1

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total recurring Level 3 assets
 
697

 
30

 
6

 
158

 
(330
)
 
375

 
(173
)
 
—

 
(25
)
 
738

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
(224
)
 
(61
)
 
—

 
(175
)
 
—

 
—

 
—

 
(16
)
 
14

 
(462
)
Total recurring Level 3 liabilities
 
$
(224
)
 
$
(61
)
 
$
—

 
$
(175
)
 
$
—

 
$
—

 
$
—

 
$
(16
)
 
$
14

 
$
(462
)
Total Level 3 gains (losses) included in net income for the year ended December 31, 2019
($ in millions)
 
Net investment income
 
Realized capital gains and losses
 
Life contract benefits
 
Interest credited to contractholder funds
 
Total
Components of net income
 
$
(2
)
 
$
32

 
$
7

 
$
(68
)
 
$
(31
)
Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2018
 
 
Balance as of December 31, 2017
 
Total gains (losses) included in:
 
 Transfers
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2018
($ in millions)
 
 
Net income
 
OCI
 
Into Level 3
 
Out of Level 3
 
Purchases
 
Sales
 
Issues
 
Settlements
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal
 
$
101

 
$
1

 
$
(2
)
 
$
—

 
$
(26
)
 
$
10

 
$
(8
)
 
$
—

 
$
(6
)
 
$
70

Corporate - public
 
108

 
—

 
(3
)
 
17

 
(21
)
 
10

 
(38
)
 
—

 
(3
)
 
70

Corporate - privately placed
 
224

 
(1
)
 
(3
)
 
20

 
(119
)
 
22

 
(5
)
 
—

 
(48
)
 
90

ABS
 
147

 
—

 
2

 
42

 
(159
)
 
160

 
(97
)
 
—

 
(26
)
 
69

MBS
 
26

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
(1
)
 
26

Total fixed income securities
 
606

 
—

 
(6
)
 
79

 
(325
)
 
203

 
(148
)
 
—

 
(84
)
 
325

Equity securities
 
210

 
37

 
—

 
—

 
—

 
109

 
(15
)
 
—

 
—

 
341

Short-term investments
 
20

 
—

 
—

 
—

 
—

 
55

 
(45
)
 
—

 
—

 
30

Free-standing derivatives, net
 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

Total recurring Level 3 assets
 
$
837

 
$
37

 
$
(6
)
 
$
79

 
$
(325
)
 
$
367

 
$
(208
)
 
$
—

 
$
(84
)
 
$
697

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
(286
)
 
$
58

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(2
)
 
$
6

 
$
(224
)
Total recurring Level 3 liabilities
 
$
(286
)
 
$
58

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(2
)
 
$
6

 
$
(224
)
Total Level 3 gains (losses) included in net income for the year ended December 31, 2018
($ in millions)
 
Net investment income
 
Realized capital gains and losses
 
Life contract benefits
 
Interest credited to contractholder funds
 
Total
Components of net income
 
$
—

 
$
37

 
$
(5
)
 
$
63

 
$
95


Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2017
 
 
Balance as of December 31, 2016
 
Total gains (losses) included in:
 
 Transfers
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2017
($ in millions)
 
 
Net income
 
OCI
 
Into Level 3
 
Out of Level 3
 
Purchases
 
Sales
 
Issues
 
Settlements
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal
 
$
125

 
$
(1
)
 
$
7

 
$
—

 
$
(6
)
 
$
8

 
$
(29
)
 
$
—

 
$
(3
)
 
$
101

Corporate - public
 
78

 
—

 
—

 
4

 
(30
)
 
60

 
—

 
—

 
(4
)
 
108

Corporate - privately placed
 
263

 
8

 
(2
)
 
30

 
(49
)
 
44

 
(30
)
 
—

 
(40
)
 
224

ABS
 
69

 
—

 
6

 
60

 
(280
)
 
322

 
—

 
—

 
(30
)
 
147

MBS
 
23

 
—

 
—

 
—

 
—

 
6

 
—

 
—

 
(3
)
 
26

Total fixed income securities
 
558

 
7

 
11

 
94

 
(365
)
 
440

 
(59
)
 
—

 
(80
)
 
606

Equity securities
 
163

 
13

 
4

 
—

 
(4
)
 
48

 
(14
)
 
—

 
—

 
210

Short-term investments
 
15

 
—

 
—

 
—

 
—

 
45

 
(40
)
 
—

 
—

 
20

Free-standing derivatives, net
 
(2
)
 
3

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

Other assets
 
1

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total recurring Level 3 assets
 
$
735

 
$
22

 
$
15

 
$
94

 
$
(369
)
 
$
533

 
$
(113
)
 
$
—

 
$
(80
)
 
$
837

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
(290
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(2
)
 
$
6

 
$
(286
)
Total recurring Level 3 liabilities
 
$
(290
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(2
)
 
$
6

 
$
(286
)
Total Level 3 gains (losses) included in net income for the year ended December 31, 2017
($ in millions)
 
Net investment income
 
Realized capital gains and losses
 
Life contract benefits
 
Interest credited to contractholder funds
 
Total
Components of net income
 
$
19

 
$
4

 
$
9

 
$
(10
)
 
$
22
Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date
Valuation changes included in net income for Level 3 assets and liabilities held as of
 
 
December 31,
($ in millions)
 
2019
 
2018
 
2017
Assets
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
Municipal
 
$
1

 
$
—

 
$
(3
)
Corporate
 
—

 
—

 
1

Total fixed income securities
 
1


—


(2
)
Equity securities
 
6

 
36

 
13

Free-standing derivatives, net
 
(1
)
 
—

 
—

Other assets
 
—

 
—

 
(1
)
Total recurring Level 3 assets
 
$
6


$
36


$
10

Liabilities
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
(61
)
 
$
58

 
$
—

Total recurring Level 3 liabilities
 
(61
)

58


—

Total included in net income
 
$
(55
)
 
$
94

 
$
10

 
 
 
 
 
 
 
Components of net income
 
 
 
 
 
 
Net investment income
 
$
(2
)
 
$
—

 
$
19

Realized capital gains and losses
 
8

 
36

 
(8
)
Life contract benefits
 
7

 
(5
)
 
9

Interest credited to contractholder funds
 
(68
)
 
63

 
(10
)
Total included in net income
 
$
(55
)
 
$
94

 
$
10
Schedule of carrying values and fair value estimates of financial instruments not carried at fair value
Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)
 
 
 
December 31, 2019
 
December 31, 2018
Financial assets
 
Fair value level
 
Carrying
value
 
Fair
value
 
Carrying
value
 
Fair
value
Mortgage loans
 
Level 3
 
$
4,817

 
$
5,012

 
$
4,670

 
$
4,703

Bank loans
 
Level 3
 
1,204

 
1,185

 
1,350

 
1,298

Agent loans
 
Level 3
 
666

 
664

 
620

 
617

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Contractholder funds on investment contracts
 
Level 3
 
8,438

 
9,158

 
9,250

 
9,665

Long-term debt
 
Level 2
 
6,631

 
7,738

 
6,451

 
6,708

Liability for collateral
 
Level 2
 
$
1,829

 
$
1,829

 
$
1,458

 
$
1,458