Separation Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Effects of Reinsurance [Table Text Block]

Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at:

	September 30, 2017
	Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	162	$	1,786
Deferred policy acquisition costs and value of business acquired	393		(22		)
Total assets	$	555	$	1,764
Liabilities
Future policy benefits	$	1,666	$	—
Other policy-related balances	121		29
Other liabilities	1,460		22
Total liabilities	$	3,247	$	51

Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows:

	Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)			Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
	Three and Nine Months Ended September 30,			Three Months Ended September 30,						Nine Months Ended September 30,
	2017 (1)			2017 (2)			2016			2017 (2)			2016
	(In millions)
Premiums
Reinsurance assumed	$	70		$	36		$	111		$	248		$	338
Reinsurance ceded	(2		)	1			(3		)	(7		)	(10		)
Net premiums	$	68		$	37		$	108		$	241		$	328
Universal life and investment-type product policy fees
Reinsurance assumed	$	(1	)	$	(1	)	$	(2	)	$	(6	)	$	(2	)
Reinsurance ceded	(22		)	(8		)	(30		)	(55		)	(76		)
Net universal life and investment-type product policy fees	$	(23	)	$	(9	)	$	(32	)	$	(61	)	$	(78	)
Policyholder benefits and claims
Reinsurance assumed	$	55		$	30		$	103		$	196		$	286
Reinsurance ceded	(6		)	(3		)	(14		)	(16		)	(9		)
Net policyholder benefits and claims	$	49		$	27		$	89		$	180		$	277
Interest credited to policyholder account balances
Reinsurance assumed	$	3		$	1		$	4		$	10		$	12
Reinsurance ceded	(12		)	(6		)	(18		)	(42		)	(56		)
Net interest credited to policyholder account balances	$	(9	)	$	(5	)	$	(14	)	$	(32	)	$	(44	)
Other expenses
Reinsurance assumed	$	6		$	4		$	18		$	10		$	63
Reinsurance ceded	(7		)	(3		)	(8		)	(28		)	(24		)
Net other expenses	$	(1	)	$	1		$	10		$	(18	)	$	39

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(1) Includes transactions after the Separation.

(2) Includes transactions prior to the Separation.

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017 (1)			2016			2017 (1)			2016
	(In millions)
Revenues
Premiums	$	116		$	552		$	820		$	1,544
Universal life and investment-type product policy fees	320			955			2,201			2,799
Net investment income	243			857			1,783			2,384
Other revenues	27			8			150			31
Total net investment gains (losses)	1			26			(53		)	(60		)
Net derivative gains (losses)	(171		)	(509		)	(1,061		)	(3,254		)
Total revenues	536			1,889			3,840			3,444
Expenses
Policyholder benefits and claims	335			1,244			2,217			3,414
Interest credited to policyholder account balances	89			276			620			827
Policyholder dividends	2			10			16			27
Goodwill impairment	—			260			—			260
Other expenses	108			710			853			1,068
Total expenses	534			2,500			3,706			5,596
Income (loss) from discontinued operations before provision for income tax and loss on disposal of discontinued operations	2			(611		)	134			(2,152		)
Provision for income tax expense (benefit)	(10		)	(160		)	(48		)	(773		)
Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax	12			(451		)	182			(1,379		)
Transaction costs associated with the Separation, net of income tax	(25		)	—			(216		)	—
Tax charges associated with the Separation	(955		)	—			(955		)	—
Income (loss) on disposal of discontinued operations, net of income tax	(980		)	—			(1,171		)	—
Income (loss) from discontinued operations, net of income tax	$	(968	)	$	(451	)	$	(989	)	$	(1,379	)

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(1) Includes transactions prior to the Separation.

The following table presents the amounts related to the financial position of Brighthouse that have been reflected in the assets and liabilities of disposed subsidiary:

	December 31, 2016
	(In millions)
Assets
Investments:
Fixed maturity securities available-for-sale	$	61,326
Equity securities available-for-sale	300
Mortgage loans	9,378
Policy loans	1,517
Real estate and real estate joint ventures	150
Other limited partnership interests	1,642
Short-term investments	1,288
Other invested assets	3,881
Total investments	79,482
Cash and cash equivalents	5,226
Accrued investment income	680
Premiums, reinsurance and other receivables	10,636
Deferred policy acquisition costs and value of business acquired	7,207
Other assets	709
Separate account assets	113,043
Total assets of disposed subsidiary	$	216,983
Liabilities
Future policy benefits	$	33,270
Policyholder account balances	37,066
Other policy-related balances	1,356
Policyholder dividends payable	12
Payables for collateral under securities loaned and other transactions	7,390
Long-term debt	60
Collateral financing arrangements	2,797
Deferred income tax liability	2,594
Other liabilities	5,119
Separate account liabilities	113,043
Total liabilities of disposed subsidiary	$	202,707

In the consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. As such, the following table presents selected financial information regarding cash flows of the discontinued operation.

	Nine Months Ended September 30,
	2017			2016
	(In millions)
Net cash provided by (used in):
Operating activities	$	1,329		$	2,590
Investing activities	$	(2,732	)	$	(5,074	)
Financing activities	$	(367	)	$	3,739