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Segment Information | 9 Months Ended
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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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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