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Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment Information | The Company’s four reporting segments are Advice & Wealth Management, Asset Management, Retirement & Protection Solutions and Corporate & Other. 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. Management excludes mean reversion related impacts from the Company’s adjusted operating measures. 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. Effective in the third quarter of 2021, management has excluded the impacts of block transfer reinsurance transactions from the adjusted operating measures. Prior periods presented were not impacted. Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. Adjusted operating net revenues and adjusted operating expenses exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual); the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts (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); block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; integration and restructuring charges; and the impact of consolidating CIEs. The market impact on non-traditional long-duration products 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 reconciles segment totals to those reported on the consolidated financial statements:
| September 30, 2021 |  | December 31, 2020
(in millions)
Advice & Wealth Management | $ | 22,849 |  |  | $ | 21,266 |
Asset Management | 9,213 |  |  | 8,406 |
Retirement & Protection Solutions | 116,986 |  |  | 114,850 |
Corporate & Other | 21,678 |  |  | 21,361 |
Total assets | $ | 170,726 |  |  | $ | 165,883 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 | 2021 |  | 2020
| (in millions)
Adjusted operating net revenues: |  |  |  |  |  |  |
Advice & Wealth Management | $ | 2,048 |  |  | $ | 1,667 |  |  | $ | 5,907 |  |  | $ | 4,899 |
Asset Management | 915 |  |  | 739 |  |  | 2,622 |  |  | 2,093 |
Retirement & Protection Solutions | 834 |  |  | 781 |  |  | 2,429 |  |  | 2,295 |
Corporate & Other | 113 |  |  | 132 |  |  | 371 |  |  | 412 |
Eliminations (1)(2) | (395) |  |  | (342) |  |  | (1,173) |  |  | (1,006) |
Total segment adjusted operating net revenues | 3,515 |  |  | 2,977 |  |  | 10,156 |  |  | 8,693 |
Net realized gains (losses) | 14 |  |  | 4 |  |  | 81 |  |  | (19) |
Revenue attributable to consolidated investment entities | 42 |  |  | 21 |  |  | 92 |  |  | 52 |
Market impact on non-traditional long-duration products, net | (1) |  |  | 1 |  |  | 25 |  |  | (10) |
Mean reversion related impacts | — |  |  | — |  |  | 1 |  |  | — |
Market impact of hedges on investments | (23) |  |  | — |  |  | (40) |  |  | — |
Block transfer reinsurance transaction impacts | (644) |  |  | — |  |  | (644) |  |  | — |
Total net revenues per Consolidated Statements of Operations | $ | 2,903 |  |  | $ | 3,003 |  |  | $ | 9,671 |  |  | $ | 8,716 |
(1) Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2021 and 2020 in each segment as follows: Advice & Wealth Management ($261 million and $219 million, respectively); Asset Management ($12 million and $13 million, respectively); Retirement & Protection Solutions ($122 million and $110 million, respectively); and Corporate & Other (nil and nil, respectively). (2) Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2021 and 2020 in each segment as follows: Advice & Wealth Management ($777 million and $649 million, respectively); Asset Management ($39 million and $39 million, respectively); Retirement & Protection Solutions ($356 million and $319 million, respectively); and Corporate & Other ($1 million and $(1) million, respectively).
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 | 2021 |  | 2020
| (in millions)
Adjusted operating earnings: |  |  |  |  |  |  |
Advice & Wealth Management | $ | 459 |  |  | $ | 320 |  |  | $ | 1,271 |  |  | $ | 969 |
Asset Management | 285 |  |  | 198 |  |  | 766 |  |  | 496 |
Retirement & Protection Solutions | 187 |  |  | (89) |  |  | 552 |  |  | 300 |
Corporate & Other | (81) |  |  | (202) |  |  | (179) |  |  | (309) |
Total segment adjusted operating earnings | 850 |  |  | 227 |  |  | 2,410 |  |  | 1,456 |
Net realized gains (losses) | 12 |  |  | 4 |  |  | 78 |  |  | (18) |
Net income (loss) attributable to consolidated investment entities | 2 |  |  | — |  |  | (1) |  |  | (2) |
Market impact on non-traditional long-duration products, net | (94) |  |  | (431) |  |  | (577) |  |  | 239 |
Mean reversion related impacts | 9 |  |  | 17 |  |  | 107 |  |  | (30) |
Market impact of hedges on investments | (23) |  |  | — |  |  | (40) |  |  | — |
Block transfer reinsurance transaction impacts | 521 |  |  | — |  |  | 521 |  |  | — |
Integration and restructuring charges | (7) |  |  | (1) |  |  | (14) |  |  | (4) |
Pretax income per Consolidated Statements of Operations | $ | 1,270 |  |  | $ | (184) |  |  | $ | 2,484 |  |  | $ | 1,641 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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