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Financing Receivables | 3 Months Ended
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Mar. 31, 2019
Receivables [Abstract] |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables primarily include commercial mortgage loans, syndicated loans, policy loans, certificate loans, advisor loans, margin loans and the reinsurance deposit receivable. Commercial mortgage loans, syndicated loans, policy loans and certificate loans are reflected in investments. Advisor loans, margin loans and the reinsurance deposit receivable are recorded in receivables. Allowance for Loan Losses Policy and certificate loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. Commercial Mortgage Loans and Syndicated Loans The following table presents a rollforward of the allowance for loan losses for the three months ended and the ending balance of the allowance for loan losses by impairment method:
| March 31,
2019 |  | 2018
(in millions)
Beginning balance | $ | 24 |  |  | $ | 26 |
Charge-offs | (1 | ) |  | — |
Provisions | — |  |  | — |
Ending balance | $ | 23 |  |  | $ | 26 |
Individually evaluated for impairment | $ | — |  |  | $ | — |
Collectively evaluated for impairment | 23 |  |  | 26 |
The recorded investment in financing receivables by impairment method was as follows:
| March 31, 2019 |  | December 31, 2018
(in millions)
Individually evaluated for impairment | $ | 19 |  |  | $ | 24 |
Collectively evaluated for impairment | 3,190 |  |  | 3,239 |
Total | $ | 3,209 |  |  | $ | 3,263 |
As of March 31, 2019 and December 31, 2018, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $19 million and $24 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance. During both the three months ended March 31, 2019 and 2018, the Company purchased $33 million of syndicated loans. During the three months ended March 31, 2019 and 2018, the Company sold $13 million and $3 million, respectively, of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Loans to Financial Advisors As of March 31, 2019 and December 31, 2018, principal amounts outstanding for advisor loans were $578 million and $558 million, respectively. As of both March 31, 2019 and December 31, 2018, allowance for loan losses were $25 million. The allowance for loan losses related to loans to financial advisors is not included in the table disclosures above. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with the Company was $15 million and $18 million as of March 31, 2019 and December 31, 2018, respectively. The allowance for loan losses on these loans was $12 million and $13 million as of March 31, 2019 and December 31, 2018, respectively. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $14 million and $16 million as of March 31, 2019 and December 31, 2018, respectively. 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 nil of total commercial mortgage loans as of both March 31, 2019 and December 31, 2018. 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:
| Loans |  | Percentage
March 31, 2019 |  | December 31, 2018 | March 31, 2019 |  | December 31, 2018
(in millions) |  |  |  |
East North Central | $ | 218 |  |  | $ | 216 |  |  | 8 | % |  | 8 | %
East South Central | 108 |  |  | 107 |  |  | 4 |  |  | 4 |
Middle Atlantic | 186 |  |  | 187 |  |  | 7 |  |  | 7 |
Mountain | 235 |  |  | 237 |  |  | 9 |  |  | 9 |
New England | 57 |  |  | 62 |  |  | 2 |  |  | 2 |
Pacific | 798 |  |  | 814 |  |  | 30 |  |  | 30 |
South Atlantic | 712 |  |  | 731 |  |  | 27 |  |  | 27 |
West North Central | 205 |  |  | 213 |  |  | 8 |  |  | 8 |
West South Central | 144 |  |  | 148 |  |  | 5 |  |  | 5 |
| 2,663 |  |  | 2,715 |  |  | 100 | % |  | 100 | %
Less: allowance for loan losses | 19 |  |  | 19 |  |  |  |  |  |  |
Total | $ | 2,644 |  |  | $ | 2,696 |  |  |  |  |  |  |
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
| Loans |  | Percentage
March 31, 2019 |  | December 31, 2018 | March 31, 2019 |  | December 31, 2018
(in millions) |  |  |  |
Apartments | $ | 618 |  |  | $ | 621 |  |  | 23 | % |  | 23 | %
Hotel | 42 |  |  | 43 |  |  | 2 |  |  | 1 |
Industrial | 441 |  |  | 453 |  |  | 17 |  |  | 17 |
Mixed use | 58 |  |  | 54 |  |  | 2 |  |  | 2 |
Office | 421 |  |  | 435 |  |  | 15 |  |  | 16 |
Retail | 879 |  |  | 897 |  |  | 33 |  |  | 33 |
Other | 204 |  |  | 212 |  |  | 8 |  |  | 8 |
| 2,663 |  |  | 2,715 |  |  | 100 | % |  | 100 | %
Less: allowance for loan losses | 19 |  |  | 19 |  |  |  |  |  |  |
Total | $ | 2,644 |  |  | $ | 2,696 |  |  |  |  |  |  |
Syndicated Loans The recorded investment in syndicated loans as of March 31, 2019 and December 31, 2018 was $546 million and $548 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 both March 31, 2019 and December 31, 2018 were nil. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of both March 31, 2019 and December 31, 2018. Troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for both the three months ended March 31, 2019 and 2018. There are no commitments to lend additional funds to borrowers whose loans have been restructured. Reinsurance Deposit Receivable In the first quarter of 2019, the Company reinsured approximately $1.7 billion of fixed annuity polices sold through third parties, which is approximately 20% of in force fixed annuity account balances. The arrangement contains investment guidelines and a trust to help meet the Company’s risk management objectives. The transaction was effective as of January 1, 2019. For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made are included in receivables. As amounts are received, consistent with the underlying fixed annuity contracts, the reinsurance deposit receivable is adjusted. The reinsurance deposit receivable is accreted using the interest method and the adjustment is reported in other revenues. The reinsurance deposit receivable was $1.6 billion as of March 31, 2019.

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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