XML 60 R27.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2019
Segment Information [Abstract] |
Segment Information | 21. Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. As discussed in Note 3, we completed the acquisition of Liberty Life during the second quarter of 2018. Related results are included within the Group Protection segment. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations. The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), IUL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products. The Group Protection segment offers group non-medical insurance products, including short and long-disability, absence management services, term life, dental, vision and accident and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. Other Operations includes investments related to the excess capital in our insurance subsidiaries; benefit plan net liability; the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; debt costs; strategic digitization expense; and other corporate investments. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: Realized gains and losses associated with the following (“excluded realized gain (loss)”): Sales or disposals and impairments of securities; Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”); Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities; Changes in the fair value of the embedded derivatives of our GLB riders reflected within variable annuity net derivative results accounted for at fair value; Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”); and Changes in the fair value of equity securities; Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”); Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; Gains (losses) on early extinguishment of debt; Losses from the impairment of intangible assets; Income (loss) from discontinued operations; Acquisition and integration costs related to mergers and acquisitions; and Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: Excluded realized gain (loss); Revenue adjustments from the initial adoption of new accounting standards; Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and Amortization of deferred gains arising from reserve changes on business sold through reinsurance. We use our prevailing corporate federal income tax rates of 21% and 35%, where applicable, while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our segment measures of performance to the GAAP measures presented in our consolidated results of operations. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions):
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Revenues |  |  |  |  |  |  |  |  |
Operating revenues: |  |  |  |  |  |  |  |  |
Annuities | $ | 4,600 |  | $ | 4,383 |  | $ | 4,378 |
Retirement Plan Services |  | 1,200 |  |  | 1,178 |  |  | 1,165 |
Life Insurance |  | 7,438 |  |  | 6,922 |  |  | 6,558 |
Group Protection |  | 4,588 |  |  | 3,757 |  |  | 2,201 |
Other Operations |  | 220 |  |  | 235 |  |  | 287 |
Excluded realized gain (loss), pre-tax |  | (794 | ) |  | (46 | ) |  | (336 | )
Amortization of deferred gain arising from reserve changes |  |  |  |  |  |  |  |  |
on business sold through reinsurance, pre-tax |  | - |  |  | - |  |  | 1 |
Amortization of DFEL associated with benefit ratio unlocking, pre-tax |  | 6 |  |  | (5 | ) |  | 3 |
Total revenues | $ | 17,258 |  | $ | 16,424 |  | $ | 14,257 |
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Net Income (Loss) |  |  |  |  |  |  |  |  |
Income (loss) from operations: |  |  |  |  |  |  |  |  |
Annuities | $ | 954 |  | $ | 1,102 |  | $ | 1,074 |
Retirement Plan Services |  | 172 |  |  | 171 |  |  | 149 |
Life Insurance |  | 259 |  |  | 645 |  |  | 536 |
Group Protection |  | 238 |  |  | 187 |  |  | 103 |
Other Operations |  | (268 | ) |  | (225 | ) |  | (108 | )
Excluded realized gain (loss), after-tax |  | (627 | ) |  | (37 | ) |  | (218 | )
Gain (loss) on early extinguishment of debt, after-tax |  | (33 | ) |  | (18 | ) |  | (3 | )
Benefit ratio unlocking, after-tax |  | 277 |  |  | (136 | ) |  | 129 |
Net impact from the Tax Cuts and Jobs Act |  | 17 |  |  | 19 |  |  | 1,322 |
Impairment of intangibles, after-tax |  | - |  |  | - |  |  | (905 | )
Acquisition and integration costs related to mergers and acquisitions, after-tax |  | (103 | ) |  | (67 | ) |  | - |
Net income (loss) | $ | 886 |  | $ | 1,641 |  | $ | 2,079 |
Other segment information (in millions) was as follows:
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Net Investment Income |  |  |  |  |  |  |  |  |
Annuities | $ | 1,140 |  | $ | 1,005 |  | $ | 1,038 |
Retirement Plan Services |  | 924 |  |  | 899 |  |  | 899 |
Life Insurance |  | 2,658 |  |  | 2,697 |  |  | 2,643 |
Group Protection |  | 307 |  |  | 260 |  |  | 168 |
Other Operations |  | 194 |  |  | 224 |  |  | 242 |
Total net investment income | $ | 5,223 |  | $ | 5,085 |  | $ | 4,990 |
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Amortization of DAC and VOBA, Net of Interest |  |  |  |  |  |  |  |  |
Annuities | $ | 408 |  | $ | 410 |  | $ | 401 |
Retirement Plan Services |  | 26 |  |  | 28 |  |  | 27 |
Life Insurance |  | 779 |  |  | 711 |  |  | 469 |
Group Protection |  | 111 |  |  | 92 |  |  | 79 |
Total amortization of DAC and VOBA, net of interest | $ | 1,324 |  | $ | 1,241 |  | $ | 976 |
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Federal Income Tax Expense (Benefit) |  |  |  |  |  |  |  |  |
Annuities | $ | 139 |  | $ | 183 |  | $ | 199 |
Retirement Plan Services |  | 23 |  |  | 29 |  |  | 55 |
Life Insurance |  | 47 |  |  | 147 |  |  | 244 |
Group Protection |  | 63 |  |  | 50 |  |  | 55 |
Other Operations |  | (92 | ) |  | (77 | ) |  | (130 | )
Excluded realized gain (loss) |  | (167 | ) |  | (9 | ) |  | (118 | )
Gain (loss) on early extinguishment of debt |  | (9 | ) |  | (5 | ) |  | (2 | )
Benefit ratio unlocking |  | 74 |  |  | (36 | ) |  | 70 |
Net impact from the Tax Cuts and Jobs Act |  | (17 | ) |  | (19 | ) |  | (1,322 | )
Acquisition and integration costs related to |  |  |  |  |  |  |  |  |
mergers and acquisitions |  | (28 | ) |  | (19 | ) |  | - |
Total federal income tax expense (benefit) | $ | 33 |  | $ | 244 |  | $ | (949 | )
| As of December 31, |
| 2019 |  | 2018 |
Assets |  |  |  |  |  |
Annuities | $ | 167,443 |  | $ | 145,458 |
Retirement Plan Services |  | 40,184 |  |  | 35,736 |
Life Insurance |  | 92,561 |  |  | 81,533 |
Group Protection |  | 9,467 |  |  | 8,495 |
Other Operations |  | 25,106 |  |  | 26,925 |
Total assets | $ | 334,761 |  | $ | 298,147 |

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

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration