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v3.20.1

Investments | 3 Months Ended
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Mar. 31, 2020
Investments [Abstract] |
Investments | 2. Investments Net investment income is as follows:
Three Months Ended March 31, |  | 2020 |  |  | 2019 |
(In millions) |  |  |  |  |  |
Fixed maturity securities |  | $ | 438 |  |  | $ | 455 |
Limited partnership investments |  |  | (102 | ) |  |  | 81 |
Short term investments |  |  | 7 |  |  |  | 15 |
Equity securities |  |  | (44 | ) |  |  | 30 |
Income (loss) from trading portfolio (a) |  |  | (129 | ) |  |  | 81 |
Other |  |  | 14 |  |  |  | 14 |
Total investment income |  |  | 184 |  |  |  | 676 |
Investment expenses |  |  | (21 | ) |  |  | (19 | )
Net investment income |  | $ | 163 |  |  | $ | 657 |
(a) | Net unrealized gains (losses) related to changes in fair value on securities still held were $(117) and $44 for the three months ended March 31, 2020 and 2019.
Investment gains (losses) are as follows:
Three Months Ended March 31, |  | 2020 |  |  | 2019 |
(In millions) |  |  |  |  |  |
Fixed maturity securities |  | $ | (75 | ) |  | $ | (6 | )
Equity securities |  |  | (133 | ) |  |  | 42 |
Derivative instruments |  |  | 5 |  |  |  | (5 | )
Short term investments and other |  |  | (13 | ) |  |  |  |
Investment gains (a) |  | $ | (216 | ) |  | $ | 31 |
(a) | Gross investment gains on available-for-sale securities were $29 and $36 for the three months ended March 31, 2020 and 2019. Gross investment losses on available-for-sale securities were $104 and $42 for the three months ended March 31, 2020 and 2019. During the three months ended March 31, 2020 and 2019, $133 of net investment losses and $42 of net investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2020 and 2019.
The allowance for credit loss related to available-for-sale fixed maturity securities is the difference between the present value of cash flows expected to be collected and the amortized cost basis. All available evidence is considered when determining whether an investment requires a credit loss write-down or allowance to be recorded. Examples of such evidence may include the financial condition and near term prospects of the issuer, whether the issuer is current with interest and principal payments, credit ratings on the security or changes in ratings over time, general market conditions and industry, sector or other specific factors and whether it is likely that the amortized cost will be recovered through the collection of cash flows. Changes in the allowance are presented as a component of Investment gains (losses) on the Consolidated Condensed Statements of Operations. The following table presents the activity related to the allowance on available-for-sale securities with credit impairments and PCD assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $390 million and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.
March 31, 2020 |  | Corporate and Other Bonds |
(In millions) |  |  |
Allowance for credit losses: |  |  |
Balance as of December 31, 2019 |  | $ | - |
Additions to the allowance for credit losses: |  |  |  |
Impact of adopting ASU 2016-13 |  |  | 6 |
For securities for which credit losses were not previously recorded |  |  | 48 |
For available-for-sale securities accounted for as PCD assets |  |  | 1 |
Reductions to the allowance for credit losses: |  |  |  |
Securities sold during the period (realized) |  |  | (5 | )
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis |  |  | (1 | )
Total allowance for credit losses |  | $ | 49 |
The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:
Three Months Ended March 31, |  | 2020 |  |  | 2019 |
(In millions) |  |  |  |  |  |
Fixed maturity securities available-for-sale: |  |  |  |  |  |
Corporate and other bonds |  | $ | 91 |  |  | $ | 6 |
Asset-backed |  |  | 1 |  |  |  | 8 |
Impairment losses recognized in earnings |  | $ | 92 |  |  | $ | 14 |
The amortized cost and fair values of fixed maturity securities are as follows:
March 31, 2020 |  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Allowance for Credit Losses (a) |  |  | Estimated Fair Value |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds |  | $ | 20,181 |  |  | $ | 1,419 |  |  | $ | 817 |  |  | $ | 49 |  |  | $ | 20,734 |
States, municipalities and political subdivisions |  |  | 8,957 |  |  |  | 1,536 |  |  |  | 2 |  |  |  |  |  |  |  | 10,491 |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  | 4,198 |  |  |  | 207 |  |  |  | 8 |  |  |  |  |  |  |  | 4,397 |
Commercial mortgage-backed |  |  | 2,207 |  |  |  | 36 |  |  |  | 153 |  |  |  |  |  |  |  | 2,090 |
Other asset-backed |  |  | 1,868 |  |  |  | 9 |  |  |  | 133 |  |  |  |  |  |  |  | 1,744 |
Total asset-backed |  |  | 8,273 |  |  |  | 252 |  |  |  | 294 |  |  |  | - |  |  |  | 8,231 |
U.S. Treasury and obligations of government-sponsored enterprises |  |  | 147 |  |  |  | 8 |  |  |  |  |  |  |  |  |  |  |  | 155 |
Foreign government |  |  | 452 |  |  |  | 15 |  |  |  | 4 |  |  |  |  |  |  |  | 463 |
Redeemable preferred stock |  |  | 9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9 |
Fixed maturities available-for-sale |  |  | 38,019 |  |  |  | 3,230 |  |  |  | 1,117 |  |  |  | 49 |  |  |  | 40,083 |
Fixed maturities trading |  |  | 40 |  |  |  | 1 |  |  |  |  |  |  |  |  |  |  |  | 41 |
Total fixed maturity securities |  | $ | 38,059 |  |  | $ | 3,231 |  |  | $ | 1,117 |  |  | $ | 49 |  |  | $ | 40,124 |
December 31, 2019 |  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized OTTI Losses (Gains) (a) |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds |  | $ | 19,789 |  |  | $ | 2,292 |  |  | $ | 32 |  |  | $ | 22,049 |  |  |  |
States, municipalities and political subdivisions |  |  | 9,093 |  |  |  | 1,559 |  |  |  |  |  |  |  | 10,652 |  |  |  |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  | 4,387 |  |  |  | 133 |  |  |  | 1 |  |  |  | 4,519 |  |  | $ | (17 | )
Commercial mortgage-backed |  |  | 2,265 |  |  |  | 86 |  |  |  | 5 |  |  |  | 2,346 |  |  |  | 1 |
Other asset-backed |  |  | 1,925 |  |  |  | 41 |  |  |  | 4 |  |  |  | 1,962 |  |  |  | (3 | )
Total asset-backed |  |  | 8,577 |  |  |  | 260 |  |  |  | 10 |  |  |  | 8,827 |  |  |  | (19 | )
U.S. Treasury and obligations of government-sponsored enterprises |  |  | 146 |  |  |  | 1 |  |  |  | 2 |  |  |  | 145 |  |  |  |  |
Foreign government |  |  | 491 |  |  |  | 14 |  |  |  | 1 |  |  |  | 504 |  |  |  |  |
Redeemable preferred stock |  |  | 10 |  |  |  |  |  |  |  |  |  |  |  | 10 |  |  |  |  |
Fixed maturities available-for-sale |  |  | 38,106 |  |  |  | 4,126 |  |  |  | 45 |  |  |  | 42,187 |  |  |  | (19 | )
Fixed maturities trading |  |  | 51 |  |  |  | 2 |  |  |  |  |  |  |  | 53 |  |  |  |  |
Total fixed maturities |  | $ | 38,157 |  |  | $ | 4,128 |  |  | $ | 45 |  |  | $ | 42,240 |  |  | $ | (19 | )
(a) | On January 1, 2020, the Company adopted ASU 2016-13; see Note 1. The Unrealized OTTI Losses (Gains) column that tracked subsequent valuation changes on securities for which a credit loss had previously been recorded has been replaced with the Allowance for Credit Losses column. Prior period amounts were not adjusted for the adoption of this standard.
The net unrealized gains on available-for-sale investments included in the tables above are recorded as a component of AOCI. When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting long term care products and structured settlements not funded by annuities would result in a premium deficiency if those gains were realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”). As of March 31, 2020 and December 31, 2019, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1.5 billion and $2.0 billion (after tax and noncontrolling interests). The available-for-sale securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds |  | $ | 7,036 |  |  | $ | 804 |  |  | $ | 44 |  |  | $ | 13 |  |  | $ | 7,080 |  |  | $ | 817 |
States, municipalities and political subdivisions |  |  | 82 |  |  |  | 2 |  |  |  |  |  |  |  |  |  |  |  | 82 |  |  |  | 2 |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  | 166 |  |  |  | 7 |  |  |  | 22 |  |  |  | 1 |  |  |  | 188 |  |  |  | 8 |
Commercial mortgage-backed |  |  | 1,185 |  |  |  | 151 |  |  |  | 12 |  |  |  | 2 |  |  |  | 1,197 |  |  |  | 153 |
Other asset-backed |  |  | 1,510 |  |  |  | 131 |  |  |  | 9 |  |  |  | 2 |  |  |  | 1,519 |  |  |  | 133 |
Total asset-backed |  |  | 2,861 |  |  |  | 289 |  |  |  | 43 |  |  |  | 5 |  |  |  | 2,904 |  |  |  | 294 |
U.S. Treasury and obligations of government-sponsored enterprises |  |  | 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2 |  |  |  |  |
Foreign government |  |  | 76 |  |  |  | 4 |  |  |  |  |  |  |  |  |  |  |  | 76 |  |  |  | 4 |
Redeemable preferred stock |  |  | 9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9 |  |  |  |  |
Total fixed maturity securities |  | $ | 10,066 |  |  | $ | 1,099 |  |  | $ | 87 |  |  |  | 18 |  |  | $ | 10,153 |  |  | $ | 1,117 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds |  | $ | 914 |  |  | $ | 21 |  |  | $ | 186 |  |  | $ | 11 |  |  | $ | 1,100 |  |  | $ | 32 |
States, municipalities and political subdivisions |  |  | 34 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34 |  |  |  |  |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  | 249 |  |  |  | 1 |  |  |  | 30 |  |  |  |  |  |  |  | 279 |  |  |  | 1 |
Commercial mortgage-backed |  |  | 381 |  |  |  | 3 |  |  |  | 20 |  |  |  | 2 |  |  |  | 401 |  |  |  | 5 |
Other asset-backed |  |  | 449 |  |  |  | 3 |  |  |  | 33 |  |  |  | 1 |  |  |  | 482 |  |  |  | 4 |
Total asset-backed |  |  | 1,079 |  |  |  | 7 |  |  |  | 83 |  |  |  | 3 |  |  |  | 1,162 |  |  |  | 10 |
U.S. Treasury and obligations of government-sponsored enterprises |  |  | 62 |  |  |  | 2 |  |  |  | 2 |  |  |  |  |  |  |  | 64 |  |  |  | 2 |
Foreign government |  |  | 59 |  |  |  | 1 |  |  |  | 1 |  |  |  |  |  |  |  | 60 |  |  |  | 1 |
Total fixed maturity securities |  | $ | 2,148 |  |  | $ | 31 |  |  | $ | 272 |  |  | $ | 14 |  |  | $ | 2,420 |  |  | $ | 45 |
The following tables present the estimated fair value and gross unrealized losses of available-for-sale corporate and other bonds in a gross unrealized loss position at March 31, 2020 across industry sectors and by rating distributions.
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |
Corporate and other bonds: |  |  |  |  |  |
Basic materials |  | $ | 727 |  |  | $ | 78 |
Communications |  |  | 349 |  |  |  | 27 |
Consumer, cyclical – other |  |  | 390 |  |  |  | 56 |
Consumer, non-cyclical – other |  |  | 401 |  |  |  | 27 |
Energy – oil & gas |  |  | 575 |  |  |  | 191 |
Energy – pipelines |  |  | 523 |  |  |  | 112 |
Entertainment |  |  | 148 |  |  |  | 23 |
Financial - other |  |  | 1,711 |  |  |  | 89 |
Financial - real estate/REITS |  |  | 599 |  |  |  | 45 |
Industrial |  |  | 468 |  |  |  | 55 |
Retail |  |  | 150 |  |  |  | 18 |
Technology |  |  | 290 |  |  |  | 30 |
Transportation |  |  | 73 |  |  |  | 5 |
Travel & related |  |  | 269 |  |  |  | 37 |
Utilities |  |  | 407 |  |  |  | 24 |
Total corporate and other bonds |  | $ | 7,080 |  |  |  | 817 |
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |
Corporate and other bonds: |  |  |  |  |  |
AAA |  | $ | 8 |  |  |  |
AA |  |  | 134 |  |  | $ | 4 |
A_ |  |  | 608 |  |  |  | 17 |
BBB |  |  | 4,987 |  |  |  | 516 |
Below investment grade |  |  | 1,343 |  |  |  | 280 |
Total corporate and other bonds |  | $ | 7,080 |  |  | $ | 817 |
The following tables present the estimated fair value and gross unrealized losses of available-for-sale commercial mortgage-backed securities in a gross unrealized loss position at March 31, 2020 by property type and by rating distributions.
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |
Commercial mortgage-backed: |  |  |  |  |  |
Conduits (multi-property, multi-borrower pools) |  | $ | 211 |  |  | $ | 11 |
Single asset, single borrower |  |  | 986 |  |  |  | 142 |
Total commercial mortgage-backed |  | $ | 1,197 |  |  | $ | 153 |
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |
Commercial mortgage-backed: |  |  |  |  |  |
US Government, Government agencies and Government sponsored enterprises |  | $ | 1 |  |  |  |
AAA |  |  | 60 |  |  | $ | 1 |
AA |  |  | 245 |  |  |  | 17 |
A_ |  |  | 214 |  |  |  | 22 |
BBB |  |  | 484 |  |  |  | 78 |
Below investment grade |  |  | 193 |  |  |  | 35 |
Total commercial mortgage-backed |  | $ | 1,197 |  |  | $ | 153 |
The following tables present the estimated fair value and gross unrealized losses of available-for-sale other asset-backed securities in a gross unrealized loss position at March 31, 2020 by underlying collateral and by rating distributions.
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |
Other asset-backed: |  |  |  |  |  |
Auto |  | $ | 290 |  |  | $ | 6 |
Collateralized Loan Obligations |  |  | 418 |  |  |  | 60 |
Franchise |  |  | 414 |  |  |  | 39 |
Other |  |  | 397 |  |  |  | 28 |
Total other asset-backed |  | $ | 1,519 |  |  | $ | 133 |
March 31, 2020 |  | Estimated Fair Value |  |  | Gross Unrealized Losses |
(In millions) |  |  |  |  |  |
Other asset-backed: |  |  |  |  |  |
AAA |  | $ | 49 |  |  | $ | 1 |
AA |  |  | 83 |  |  |  | 2 |
A_ |  |  | 821 |  |  |  | 74 |
BBB |  |  | 566 |  |  |  | 56 |
Total other asset-backed |  | $ | 1,519 |  |  | $ | 133 |
Based on current facts and circumstances, the Company believes the unrealized losses presented in the March 31, 2020 gross unrealized loss position tables above are not indicative of the ultimate collectability of the current amortized cost of the securities. Rather, the Company believes the gross unrealized losses are attributable primarily to widening credit spreads over risk free rates beyond historic norms, as a result of market uncertainties stemming from the coronavirus disease 2019 (“COVID-19”) pandemic, as well as supply shocks in the energy sector coupled with demand shocks in multiple sectors from the COVID-19 pandemic, that originated during the first quarter of 2020. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional impairment losses to be recorded as of March 31, 2020. Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity.
|  | March 31, 2020 |  |  | December 31, 2019 |
|  | Cost or Amortized Cost |  |  | Estimated Fair Value |  |  | Cost or Amortized Cost |  |  | Estimated Fair Value |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 1,331 |  |  | $ | 1,325 |  |  | $ | 1,334 |  |  | $ | 1,356 |
Due after one year through five years |  |  | 11,554 |  |  |  | 11,812 |  |  |  | 9,746 |  |  |  | 10,186 |
Due after five years through ten years |  |  | 13,078 |  |  |  | 13,069 |  |  |  | 14,892 |  |  |  | 15,931 |
Due after ten years |  |  | 12,056 |  |  |  | 13,877 |  |  |  | 12,134 |  |  |  | 14,714 |
Total |  | $ | 38,019 |  |  | $ | 40,083 |  |  | $ | 38,106 |  |  | $ | 42,187 |
Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life. Mortgage Loans The allowance for expected credit losses on mortgage loans is developed by assessing the credit quality of pools of mortgage loans in good standing using debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios. The DSCR compares a property’s net operating income to its debt service payments, including principal and interest. The LTV ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. The pools developed to measure the credit loss allowance use increments of DSCR and LTV to draw distinctions between risk levels. Changes in the allowance for mortgage loans are presented as a component of Investment gains (losses) on the Consolidated Condensed Statements of Operations. Mortgage loans are included in Other invested assets on the Consolidated Condensed Balance Sheets. The historical loss rate applied to mortgage loans has been adjusted over the forecast period to reflect higher expected credit losses based on observable economic forecasts, which increased the allowance by $13 million for the period ended March 31, 2020. The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination:
|  | Mortgage Loans Amortized Cost Basis by Origination Year (a) |
As of March 31, 2020 |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Total |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DSCR ≥1.6x |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
LTV less than 55% |  | $ | 60 |  |  | $ | 32 |  |  | $ | 19 |  |  | $ | 92 |  |  | $ | 41 |  |  | $ | 130 |  |  | $ | 374 |
LTV 55% to 65% |  |  |  |  |  |  | 32 |  |  |  | 29 |  |  |  | 55 |  |  |  | 4 |  |  |  |  |  |  |  | 120 |
LTV greater than 65% |  |  |  |  |  |  | 5 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |
DSCR 1.2x - 1.6x |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
LTV less than 55% |  |  |  |  |  |  | 33 |  |  |  | 10 |  |  |  | 13 |  |  |  | 16 |  |  |  | 126 |  |  |  | 198 |
LTV 55% to 65% |  |  |  |  |  |  | 73 |  |  |  | 32 |  |  |  | 32 |  |  |  |  |  |  |  |  |  |  |  | 137 |
LTV greater than 65% |  |  |  |  |  |  | 85 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 85 |
DSCR ≤1.2x |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
LTV less than 55% |  |  |  |  |  |  | 1 |  |  |  | 11 |  |  |  | 27 |  |  |  |  |  |  |  | 9 |  |  |  | 48 |
LTV 55% to 65% |  |  |  |  |  |  | 14 |  |  |  | 14 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 28 |
LTV greater than 65% |  |  |  |  |  |  | 22 |  |  |  |  |  |  |  |  |  |  |  | 24 |  |  |  |  |  |  |  | 46 |
Total |  | $ | 60 |  |  | $ | 297 |  |  | $ | 115 |  |  | $ | 219 |  |  | $ | 85 |  |  | $ | 265 |  |  | $ | 1,041 |
(a) | The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.
There were no loans that were past due or placed in nonaccrual status as of March 31, 2020. No interest income was written off for the period ended March 31, 2020. Derivative Financial Instruments A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.
|  | March 31, 2020 |  |  | December 31, 2019 |
|  | Contractual/ Notional |  | Estimated Fair Value |  |  | Contractual/ Notional |  |  | Estimated Fair Value |
|  | Amount |  | Asset |  | (Liability) |  |  | Amount |  |  | Asset |  |  | (Liability) |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With hedge designation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 715 |  |  |  | $ | (32 | ) |  | $ | 715 |  |  |  |  |  | $ | (8 | )
Without hedge designation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity markets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options – purchased |  |  |  |  |  |  |  |  |  |  |  | 57 |  |  | $ | 1 |  |  |  |  |
– written |  |  |  |  |  |  |  |  |  |  |  | 100 |  |  |  |  |  |  |  | (1 | )
Embedded derivative on funds withheld liability |  |  | 196 |  |  |  |  | (1 | ) |  |  | 182 |  |  |  |  |  |  |  | (7 | )

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