XML 125 R40.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Investments (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Investments [Abstract] |
Net Investment Income | Net Investment Income
| For the years ended December 31,
(Before tax) | 2019 | 2018 | 2017
Fixed maturities [1] | $ | 1,559 |  | $ | 1,459 |  | $ | 1,303 |
Equity securities | 46 |  | 32 |  | 24 |
Mortgage loans | 165 |  | 141 |  | 124 |
Limited partnerships and other alternative investments | 232 |  | 205 |  | 174 |
Other investments [2] | 32 |  | 20 |  | 49 |
Investment expenses | (83 | ) | (77 | ) | (71 | )
Total net investment income | $ | 1,951 |  | $ | 1,780 |  | $ | 1,603 |
[1] | Includes net investment income on short-term investments.
[2] Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting.
Net Realized Capital Gains (Losses) | Net Realized Capital Gains (Losses)
| For the years ended December 31,
(Before tax) | 2019 | 2018 | 2017
Gross gains on sales | $ | 234 |  | $ | 114 |  | $ | 275 |
Gross losses on sales | (56 | ) | (172 | ) | (113 | )
Equity securities [1] | 254 |  | (48 | ) | — |
Net OTTI losses recognized in earnings | (3 | ) | (1 | ) | (8 | )
Valuation allowances on mortgage loans | 1 |  | — |  | (1 | )
Other, net [2] | (35 | ) | (5 | ) | 12 |
Net realized capital gains (losses) | $ | 395 |  | $ | (112 | ) | $ | 165 |
[1] | The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2019, were $164 for the year-ended December 31, 2019. The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2018, were $(80) for the year-ended December 31, 2018. Prior to January 1, 2018, changes in net unrealized gains (losses) on equity securities were included in AOCI.
[2] For the years ended December 31, 2019, 2018 and 2017, gains (losses) from transactional foreign currency revaluation were $(9), $1 and $14, respectively. Also includes gains (losses) on non-qualifying derivatives of $(24), $(12), and $(6) , respectively for 2019, 2018 and 2017.
Sales of AFS Securities | Sales of AFS Securities
| For the years ended December 31,
| 2019 | 2018 | 2017
Fixed maturities, AFS |  |  |
Sale proceeds | $ | 14,421 |  | $ | 21,327 |  | $ | 17,614 |
Gross gains | 233 |  | 90 |  | 204 |
Gross losses | (56 | ) | (169 | ) | (90 | )
Equity securities, AFS |  |  |
Sale proceeds |  |  | $ | 607 |
Gross gains |  |  | 69 |
Gross losses |  |  | (23 | )
Impairments | Impairments in Earnings by Type
| For the years ended December 31,
| 2019 | 2018 | 2017
Credit impairments | $ | 3 |  | $ | 1 |  | $ | 2 |
Impairments on equity securities |  |  | 6 |
Total impairments | $ | 3 |  | $ | 1 |  | $ | 8 |
Cumulative Credit Impairments
| For the years ended December 31,
(Before tax) | 2019 | 2018 | 2017
Balance as of beginning of period | $ | (19 | ) | $ | (25 | ) | $ | (110 | )
Additions for credit impairments recognized on [1]: |  |  |
Securities not previously impaired | (3 | ) | — |  | (1 | )
Securities previously impaired | — |  | (1 | ) | (1 | )
Reductions for credit impairments previously recognized on: |  |  |
Securities that matured or were sold during the period | 3 |  | 7 |  | 76 |
Securities due to an increase in expected cash flows | — |  | — |  | 11 |
Balance as of end of period | $ | (19 | ) | $ | (19 | ) | $ | (25 | )
[1] These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations.
Schedule of Available-for-sale Securities | AFS Securities by Type
| December 31, 2019 |  | December 31, 2018
| Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non- Credit OTTI [1] |  | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non- Credit OTTI [1]
ABS | $ | 1,461 |  | $ | 18 |  | $ | (3 | ) | $ | 1,476 |  | $ | — |  |  | $ | 1,272 |  | $ | 5 |  | $ | (1 | ) | $ | 1,276 |  | $ | — |
CLOs | 2,186 |  | 5 |  | (8 | ) | 2,183 |  | — |  |  | 1,455 |  | 2 |  | (20 | ) | 1,437 |  | — |
CMBS | 4,210 |  | 141 |  | (13 | ) | 4,338 |  | (4 | ) |  | 3,581 |  | 35 |  | (64 | ) | 3,552 |  | (5 | )
Corporate | 16,435 |  | 986 |  | (25 | ) | 17,396 |  | — |  |  | 13,696 |  | 148 |  | (446 | ) | 13,398 |  | — |
Foreign govt./govt. agencies | 1,057 |  | 66 |  | — |  | 1,123 |  | — |  |  | 866 |  | 7 |  | (26 | ) | 847 |  | — |
Municipal | 8,763 |  | 737 |  | (2 | ) | 9,498 |  | — |  |  | 9,972 |  | 421 |  | (47 | ) | 10,346 |  | — |
RMBS | 4,775 |  | 97 |  | (3 | ) | 4,869 |  | — |  |  | 3,270 |  | 44 |  | (35 | ) | 3,279 |  | — |
U.S. Treasuries | 1,191 |  | 75 |  | (1 | ) | 1,265 |  | — |  |  | 1,491 |  | 41 |  | (15 | ) | 1,517 |  | — |
Total fixed maturities, AFS | 40,078 |  | 2,125 |  | (55 | ) | 42,148 |  | (4 | ) |  | 35,603 |  | 703 |  | (654 | ) | 35,652 |  | (5 | )
[1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2019 and 2018.
Investments by Contractual Maturity Year | Fixed maturities, AFS, by Contractual Maturity Year
| December 31, 2019 |  | December 31, 2018
| Amortized Cost | Fair Value |  | Amortized Cost | Fair Value
One year or less | $ | 1,082 |  | $ | 1,090 |  |  | $ | 999 |  | $ | 1,002 |
Over one year through five years | 7,200 |  | 7,401 |  |  | 5,786 |  | 5,791 |
Over five years through ten years | 7,395 |  | 7,803 |  |  | 6,611 |  | 6,495 |
Over ten years | 11,769 |  | 12,988 |  |  | 12,629 |  | 12,820 |
Subtotal | 27,446 |  | 29,282 |  |  | 26,025 |  | 26,108 |
Mortgage-backed and asset-backed securities | 12,632 |  | 12,866 |  |  | 9,578 |  | 9,544 |
Total fixed maturities, AFS | $ | 40,078 |  | $ | 42,148 |  |  | $ | 35,603 |  | $ | 35,652 |
Unrealized Loss on Investments | Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2019
| Less Than 12 Months |  | 12 Months or More |  | Total
| Amortized Cost | Fair Value | Unrealized Losses |  | Amortized Cost | Fair Value | Unrealized Losses |  | Amortized Cost | Fair Value | Unrealized Losses
ABS | $ | 401 |  | $ | 398 |  | $ | (3 | ) |  | $ | 9 |  | $ | 9 |  | $ | — |  |  | $ | 410 |  | $ | 407 |  | $ | (3 | )
CLOs | 681 |  | 679 |  | (2 | ) |  | 929 |  | 923 |  | (6 | ) |  | 1,610 |  | 1,602 |  | (8 | )
CMBS | 545 |  | 538 |  | (7 | ) |  | 26 |  | 20 |  | (6 | ) |  | 571 |  | 558 |  | (13 | )
Corporate | 798 |  | 789 |  | (9 | ) |  | 344 |  | 328 |  | (16 | ) |  | 1,142 |  | 1,117 |  | (25 | )
Foreign govt./govt. agencies | 101 |  | 101 |  | — |  |  | 29 |  | 29 |  | — |  |  | 130 |  | 130 |  | — |
Municipal | 224 |  | 222 |  | (2 | ) |  | — |  | — |  | — |  |  | 224 |  | 222 |  | (2 | )
RMBS | 617 |  | 614 |  | (3 | ) |  | 68 |  | 68 |  | — |  |  | 685 |  | 682 |  | (3 | )
U.S. Treasuries | 88 |  | 88 |  | — |  |  | 35 |  | 34 |  | (1 | ) |  | 123 |  | 122 |  | (1 | )
Total fixed maturities, AFS in an unrealized loss position | $ | 3,455 |  | $ | 3,429 |  | $ | (26 | ) |  | $ | 1,440 |  | $ | 1,411 |  | $ | (29 | ) |  | $ | 4,895 |  | $ | 4,840 |  | $ | (55 | )
Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018
| Less Than 12 Months |  | 12 Months or More |  | Total
| Amortized Cost | Fair Value | Unrealized Losses |  | Amortized Cost | Fair Value | Unrealized Losses |  | Amortized Cost | Fair Value | Unrealized Losses
ABS | $ | 566 |  | $ | 566 |  | $ | — |  |  | $ | 113 |  | $ | 112 |  | $ | (1 | ) |  | $ | 679 |  | $ | 678 |  | $ | (1 | )
CLOs | 1,358 |  | 1,338 |  | (20 | ) |  | 7 |  | 7 |  | — |  |  | 1,365 |  | 1,345 |  | (20 | )
CMBS | 896 |  | 882 |  | (14 | ) |  | 1,129 |  | 1,079 |  | (50 | ) |  | 2,025 |  | 1,961 |  | (64 | )
Corporate | 7,174 |  | 6,903 |  | (271 | ) |  | 2,541 |  | 2,366 |  | (175 | ) |  | 9,715 |  | 9,269 |  | (446 | )
Foreign govt./govt. agencies | 407 |  | 391 |  | (16 | ) |  | 203 |  | 193 |  | (10 | ) |  | 610 |  | 584 |  | (26 | )
Municipal | 1,643 |  | 1,613 |  | (30 | ) |  | 292 |  | 275 |  | (17 | ) |  | 1,935 |  | 1,888 |  | (47 | )
RMBS | 1,344 |  | 1,329 |  | (15 | ) |  | 648 |  | 628 |  | (20 | ) |  | 1,992 |  | 1,957 |  | (35 | )
U.S. Treasuries | 497 |  | 492 |  | (5 | ) |  | 339 |  | 329 |  | (10 | ) |  | 836 |  | 821 |  | (15 | )
Total fixed maturities, AFS in an unrealized loss position | 13,885 |  | 13,514 |  | (371 | ) |  | 5,272 |  | 4,989 |  | (283 | ) |  | 19,157 |  | 18,503 |  | (654 | )
Valuation Allowance Activity | Valuation Allowance Activity
| For the years ended December 31,
| 2019 | 2018 | 2017
Balance as of January 1 | $ | (1 | ) | $ | (1 | ) | $ | — |
Reversals/(Additions) | 1 |  | — |  | (1 | )
Deductions | — |  | — |  | — |
Balance as of December 31 | $ | — |  | $ | (1 | ) | $ | (1 | )
Loans Credit Quality | Mortgage Loans Credit Quality
| December 31, 2019 |  | December 31, 2018
Loan-to-value | Carrying Value | Avg. Debt-Service Coverage Ratio |  | Carrying Value | Avg. Debt-Service Coverage Ratio
65% - 80% | 376 |  | 1.53x |  | 386 |  | 1.60x
Less than 65% | 3,839 |  | 2.56x |  | 3,318 |  | 2.59x
Total mortgage loans | $ | 4,215 |  | 2.46x |  | $ | 3,704 |  | 2.49x
Mortgage Loans by Region
| December 31, 2019 |  | December 31, 2018
| Carrying Value | Percent of Total |  | Carrying Value | Percent of Total
East North Central | $ | 270 |  | 6.4 | % |  | $ | 250 |  | 6.8 | %
Middle Atlantic | 319 |  | 7.5 | % |  | 270 |  | 7.3 | %
Mountain | 109 |  | 2.6 | % |  | 30 |  | 0.8 | %
New England | 344 |  | 8.2 | % |  | 330 |  | 8.9 | %
Pacific | 906 |  | 21.5 | % |  | 917 |  | 24.8 | %
South Atlantic | 944 |  | 22.4 | % |  | 712 |  | 19.2 | %
West North Central | 46 |  | 1.1 | % |  | 148 |  | 4.0 | %
West South Central | 439 |  | 10.4 | % |  | 420 |  | 11.3 | %
Other [1] | 838 |  | 19.9 | % |  | 627 |  | 16.9 | %
Total mortgage loans | $ | 4,215 |  | 100.0 | % |  | $ | 3,704 |  | 100.0 | %
[1] | Primarily represents loans collateralized by multiple properties in various regions.
Mortgage Loans by Property Type
| December 31, 2019 |  | December 31, 2018
| Carrying Value | Percent of Total |  | Carrying Value | Percent of Total
Commercial |  |  |  |  |
Industrial | 1,167 |  | 27.7 | % |  | 1,108 |  | 29.9 | %
Multifamily | 1,313 |  | 31.2 | % |  | 1,138 |  | 30.7 | %
Office | 723 |  | 17.2 | % |  | 708 |  | 19.1 | %
Retail | 735 |  | 17.4 | % |  | 392 |  | 10.6 | %
Single Family | 137 |  | 3.2 | % |  | 82 |  | 2.2 | %
Other | 140 |  | 3.3 | % |  | 276 |  | 7.5 | %
Total mortgage loans | $ | 4,215 |  | 100.0 | % |  | $ | 3,704 |  | 100.0 | %
Schedule of Securities Financing Transactions [Table Text Block] |
Securities Lending and Repurchase Agreements
| December 31, 2019 | December 31, 2018
| Fair Value | Fair Value |
Securities Lending Transactions: |  |
Gross amount of securities on loan | $ | 606 |  | $ | 820 |
Gross amount of associated liability for collateral received [1] | $ | 621 |  | $ | 840 |
Repurchase agreements: |  |
Gross amount of recognized liabilities for repurchase agreements | $ | — |  | $ | 72 |
Gross amount of collateral pledged related to repurchase agreements [2] | $ | — |  | $ | 73 |
Gross amount of recognized receivables for reverse repurchase agreements | $ | 15 |  | $ | 64 |
[1] | Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $34 and $3 which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively.
[2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Consolidated Balance Sheets.

X
- Definition Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities. + References No definition available. + Details
Name: | us-gaap_AvailableForSaleSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=118936363&loc=SL6953659-111524 + Details
Name: | us-gaap_FinancingReceivableCreditQualityIndicatorsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.9) -URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 220 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.2) -URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7(a),(b)) -URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.8) -URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227 + Details
Name: | us-gaap_InvestmentIncomeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=118939692&loc=d3e27340-111563 + Details
Name: | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of realized gains and losses on investments reported in the statement of income. + References No definition available. + Details
Name: | us-gaap_RealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of securities financing transactions including resale and repurchase agreements, securities borrowed and lending transactions, securities received as collateral and obligations to return securities received as collateral. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(m)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_ScheduleOfSecuritiesFinancingTransactionsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the activity by class in any valuation allowance for impairment of recognized servicing assets - including beginning and ending balances, aggregate additions charged and recoveries credited to operations, and aggregate write-downs charged against allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122739-111746 + Details
Name: | us-gaap_ScheduleOfValuationAllowanceForImpairmentOfRecognizedServicingAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrealized gains and losses on investments. + References No definition available. + Details
Name: | us-gaap_UnrealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration