XML 45 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Investments (Tables)
12 Months Ended
Dec. 31, 2019
Investments  
Fixed Maturities and Equity Securities Available-for-Sale (Table)

Other-than-

Gross

Gross

temporary

Amortized

unrealized

unrealized

impairments in

    

cost

    

gains

    

losses

    

Fair value

    

AOCI (1)

  

(in millions)

December 31, 2019

Fixed maturities, available-for-sale:

U.S. government and agencies

$

1,627.0

$

100.2

$

3.0

$

1,724.2

$

Non-U.S. governments

 

852.3

 

144.1

 

0.2

 

996.2

 

States and political subdivisions

 

6,857.1

 

644.5

 

11.6

 

7,490.0

 

Corporate

 

36,993.1

 

3,706.5

 

52.2

 

40,647.4

 

Residential mortgage-backed pass-through securities

 

2,913.9

 

72.3

 

3.8

 

2,982.4

 

Commercial mortgage-backed securities

 

4,746.6

 

127.6

 

24.0

 

4,850.2

 

15.8

Collateralized debt obligations (2)

 

3,226.7

 

2.9

 

14.3

 

3,215.3

 

0.9

Other debt obligations

 

8,085.8

 

129.6

 

14.9

 

8,200.5

 

31.7

Total fixed maturities, available-for-sale

$

65,302.5

$

4,927.7

$

124.0

$

70,106.2

$

48.4

December 31, 2018

Fixed maturities, available-for-sale:

U.S. government and agencies

$

1,441.6

$

16.4

$

17.0

$

1,441.0

$

Non-U.S. governments

 

833.4

 

71.7

 

14.6

 

890.5

 

States and political subdivisions

 

6,125.0

 

196.0

 

95.3

 

6,225.7

 

Corporate

 

35,134.6

 

1,249.9

 

845.2

 

35,539.3

 

Residential mortgage-backed pass-through securities

 

2,488.5

 

21.9

 

49.8

 

2,460.6

 

Commercial mortgage-backed securities

 

4,023.1

 

17.1

 

94.6

 

3,945.6

 

16.3

Collateralized debt obligations (2)

 

2,451.3

 

 

30.5

 

2,420.8

 

1.2

Other debt obligations

 

7,228.3

 

39.4

 

82.7

 

7,185.0

 

36.1

Total fixed maturities, available-for-sale

$

59,725.8

$

1,612.4

$

1,229.7

$

60,108.5

$

53.6

(1)Excludes $62.3 million and $64.2 million as of December 31, 2019 and December 31, 2018, respectively, of net unrealized gains on impaired fixed maturities, available-for-sale related to changes in fair value subsequent to the impairment date, which are included in gross unrealized gains and gross unrealized losses.
(2)Primarily consists of collateralized loan obligations backed by secured corporate loans.
Fixed Maturities Available-for-Sale by Contractual Maturity (Table)

    

Amortized cost

    

Fair value

  

(in millions)

Due in one year or less

$

2,138.3

$

2,154.0

Due after one year through five years

9,955.3

10,319.2

Due after five years through ten years

12,080.0

12,894.4

Due after ten years

22,155.9

25,490.2

Subtotal

46,329.5

50,857.8

Mortgage-backed and other asset-backed securities

18,973.0

19,248.4

Total

$

65,302.5

$

70,106.2

Net Investment Income (Table)

For the year ended December 31, 

    

2019

    

2018

    

2017

  

(in millions)

Fixed maturities, available-for-sale (1)

$

2,606.0

$

2,479.9

$

2,342.3

Fixed maturities, trading

23.8

 

26.4

 

12.6

Equity securities, available-for-sale

 

 

21.7

Equity securities, trading

 

 

46.1

Equity securities

110.5

38.8

Mortgage loans

707.0

 

641.4

 

605.9

Real estate

191.1

 

158.8

 

129.4

Policy loans

44.0

 

45.0

 

45.6

Cash and cash equivalents

65.3

 

56.2

 

28.6

Derivatives (1)

(2.0)

 

0.1

 

(3.2)

Other

370.8

 

285.0

 

319.6

Total

4,116.5

 

3,731.6

 

3,548.6

Investment expenses

(118.1)

 

(102.4)

 

(89.3)

Net investment income

$

3,998.4

$

3,629.2

$

3,459.3

(1)Upon adoption of authoritative guidance effective January 1, 2019, the change in fair value of fixed maturities, available-for-sale and the change in fair value of derivative hedging instruments in fair value hedging relationships are reported in net investment income with the earnings effect of fixed maturities, available-for-sale. Prior to 2019, the change in fair value of fixed maturities, available-for-sale and the change in fair value of derivative hedging instruments in fair value hedging relationships were reported in net realized capital gains (losses). See Note 5, Derivative Financial Instruments, for further details.
Net Realized Capital Gains and Losses (Table)

For the year ended December 31, 

    

2019

    

2018

    

2017

  

(in millions)

Fixed maturities, available-for-sale:

Gross gains

$

15.5

$

40.2

$

14.7

Gross losses

(15.3)

 

(74.8)

 

(27.2)

Net impairment losses

(43.5)

 

(29.1)

 

(81.7)

Hedging, net (1)

(9.3)

 

(39.6)

 

(28.5)

Fixed maturities, trading (2)

43.0

 

(9.0)

 

(8.0)

Equity securities, available-for-sale:

Gross gains

 

 

0.2

Net impairment losses

(0.1)

Equity securities, trading (3)

 

 

65.0

Equity securities (4)

84.5

(17.7)

Mortgage loans

3.0

 

6.2

 

9.0

Derivatives (1)

(120.3)

 

11.7

 

(149.8)

Other (5)

(10.4)

 

36.7

 

730.6

Net realized capital gains (losses)

$

(52.8)

$

(75.4)

$

524.2

(1)Upon adoption of authoritative guidance effective January 1, 2019, the change in fair value of fixed maturities, available-for-sale and the change in fair value of derivative hedging instruments in fair value hedging relationships are reported in net investment income with the earnings effect of fixed maturities, available-for-sale. Prior to 2019, the change in fair value of fixed maturities, available-for-sale and the change in fair value of derivative hedging instruments in fair value hedging relationships were reported in net realized capital gains (losses). See Note 5, Derivative Financial Instruments, for further details. Gains (losses) for fixed maturities, available-for-sale related to terminated cash flow hedges continue to be reflected in net realized capital gains (losses).
(2)Unrealized gains (losses) on fixed maturities, trading still held at the reporting date were $32.8 million, $(12.2) million and $(7.5) million for the years ended December 31, 2019, 2018 and 2017, respectively.
(3)Unrealized gains on equity securities, trading still held at the reporting date were $45.3 million for the year ended December 31, 2017. This excludes $34.9 million of unrealized gains on equity securities, trading still held at the reporting date for the year ended December 31, 2017 that were reported in net investment income.
(4)Unrealized gains (losses) on equity securities still held at the reporting date were $61.6 million and $(39.9) million for the years ended December 31, 2019 and 2018, respectively. This excludes $66.9 million and $4.9 million of unrealized gains on equity securities still held at the reporting date for the years ended December 31, 2019 and 2018, respectively, that were reported in net investment income.
(5)Further details relating to other gains in 2017 are included under the caption “ Real Estate Transactions."
Other-Than-Temporary Impairment Losses, Net of Recoveries (Table)

For the year ended December 31, 

    

2019

    

2018

    

2017

  

(in millions)

Fixed maturities, available-for-sale

$

(38.3)

$

10.6

$

(28.6)

Equity securities, available-for-sale

 

 

(0.1)

Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities

(38.3)

 

10.6

 

(28.7)

Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from OCI (1)

(5.2)

 

(39.7)

 

(53.1)

Net impairment losses on available-for-sale securities

$

(43.5)

$

(29.1)

$

(81.8)

(1)Represents the net impact of (a) gains resulting from reclassification of noncredit impairment losses for fixed maturities with bifurcated OTTI from net realized capital gains (losses) to OCI and (b) losses resulting from reclassification of previously recognized noncredit impairment losses from OCI to net realized capital gains (losses) for fixed maturities with bifurcated OTTI that had additional credit losses or fixed maturities that previously had bifurcated OTTI that have now been sold or are intended to be sold.
Other-Than-Temporary Impairment, Credit Losses Recognized in Earnings (Table)

For the year ended December 31, 

    

2019

    

2018

    

2017

  

(in millions)

Beginning balance

$

(117.5)

$

(124.3)

$

(139.9)

Credit losses for which an other-than-temporary impairment was not previously recognized

(6.8)

 

(11.3)

 

(15.0)

Credit losses for which an other-than-temporary impairment was previously recognized

(11.8)

 

(20.0)

 

(42.5)

Reduction for credit losses previously recognized on fixed maturities now sold, paid down or intended to be sold

54.3

 

29.5

 

63.3

Net reduction for positive changes in cash flows expected to be collected and amortization (1)

0.8

 

8.6

 

10.0

Foreign currency translation adjustment

 

 

(0.2)

Ending balance

$

(81.0)

$

(117.5)

$

(124.3)

(1)Amounts are recognized in net investment income.
Gross Unrealized Losses for Fixed Maturities and Equity Securities (Table)

  

December 31, 2019

Less than

Greater than or

    

twelve months

 

equal to twelve months

Total

    

    

Gross

 

    

Gross

    

Gross

Fair

unrealized

Fair

unrealized

Fair

unrealized

value

losses

    

value

    

losses

    

value

    

losses

  

(in millions)

Fixed maturities, available-for-sale:

U.S. government and agencies

$

100.0

$

1.9

$

74.2

$

1.1

$

174.2

$

3.0

Non-U.S. governments

 

17.6

 

0.2

 

12.4

 

 

30.0

 

0.2

States and political subdivisions

 

559.9

 

11.2

 

86.3

 

0.4

 

646.2

 

11.6

Corporate

 

1,041.5

 

27.8

 

394.7

 

24.4

 

1,436.2

 

52.2

Residential mortgage-backed pass- through securities

 

429.6

 

1.4

 

237.3

 

2.4

 

666.9

 

3.8

Commercial mortgage-backed securities

 

829.3

 

9.2

 

268.5

 

14.8

 

1,097.8

 

24.0

Collateralized debt obligations (1)

 

639.4

 

1.8

 

1,447.8

 

12.5

 

2,087.2

 

14.3

Other debt obligations

 

1,772.8

 

9.5

 

613.7

 

5.4

 

2,386.5

 

14.9

Total fixed maturities, available-for-sale

$

5,390.1

$

63.0

$

3,134.9

$

61.0

$

8,525.0

$

124.0

(1) Primarily consists of collateralized loan obligations backed by secured corporate loans.

December 31, 2018

Less than

Greater than or

 

twelve months

 

equal to twelve months

Total

    

Gross

    

Gross

    

Gross

Fair

unrealized

Fair

unrealized

Fair

unrealized

    

value

    

losses

    

value

    

losses

    

value

    

losses

  

(in millions)

Fixed maturities, available-for-sale:

U.S. government and agencies

$

101.8

$

1.6

$

500.3

$

15.4

$

602.1

$

17.0

Non-U.S. governments

 

210.2

 

4.7

 

191.5

 

9.9

 

401.7

 

14.6

States and political subdivisions

 

1,359.9

 

33.9

 

1,590.3

 

61.4

 

2,950.2

 

95.3

Corporate

 

13,198.4

 

476.0

 

6,865.0

 

369.2

 

20,063.4

 

845.2

Residential mortgage-backed pass- through securities

 

236.7

 

1.0

 

1,410.2

 

48.8

 

1,646.9

 

49.8

Commercial mortgage-backed securities

 

790.3

 

11.6

 

2,223.2

 

83.0

 

3,013.5

 

94.6

Collateralized debt obligations (1)

 

2,233.3

 

24.0

 

162.6

 

6.5

 

2,395.9

 

30.5

Other debt obligations

 

985.5

 

4.9

 

3,665.1

 

77.8

 

4,650.6

 

82.7

Total fixed maturities, available-for-sale

$

19,116.1

$

557.7

$

16,608.2

$

672.0

$

35,724.3

$

1,229.7

(1) Primarily consists of collateralized loan obligations backed by secured corporate loans.

Net Unrealized Gains and Losses on Available-for-Sale Securities and Derivative Instruments (Table)

    

December 31, 2019

    

December 31, 2018

  

(in millions)

Net unrealized gains on fixed maturities, available-for-sale (1)

$

4,834.2

$

400.8

Noncredit component of impairment losses on fixed maturities, available-for-sale

(48.4)

 

(53.6)

Net unrealized gains on derivative instruments

94.1

 

118.5

Adjustments for assumed changes in amortization patterns

(261.0)

 

30.3

Adjustments for assumed changes in policyholder liabilities

(1,133.5)

 

(293.7)

Net unrealized gains on other investments and noncontrolling interest adjustments

96.8

 

68.8

Provision for deferred income taxes

(766.9)

 

(63.8)

Net unrealized gains on available-for-sale securities and derivative instruments

$

2,815.3

$

207.3

(1)Excludes net unrealized gains (losses) on fixed maturities, available-for-sale included in fair value hedging relationships.
Mortgage Loans (Table)

    

December 31, 2019

    

December 31, 2018

  

(in millions)

Commercial mortgage loans

$

15,017.2

$

13,996.3

Residential mortgage loans

1,496.7

 

1,368.0

Total amortized cost

16,513.9

 

15,364.3

Valuation allowance

(27.0)

 

(27.4)

Total carrying value

$

16,486.9

$

15,336.9

Mortgage Loans Purchased and Sold (Table)

 

For the year ended December 31,

    

2019

    

2018

    

2017

  

(in millions)

Commercial mortgage loans:

Purchased

$

200.5

$

127.5

$

144.2

Sold

1.6

2.2

28.9

Residential mortgage loans:

Purchased

489.2

394.2

346.0

Sold

70.7

80.3

152.2

Commercial Mortgage Loans by Geographic Distribution and Property Type Distribution (Table)

  

December 31, 2019

December 31, 2018

Amortized

 

Percent

Amortized

Percent

    

cost

    

of total

    

cost

    

of total

   

($ in millions)

 

Geographic distribution

New England

$

613.9

4.1

%  

$

640.6

4.6

%

Middle Atlantic

4,139.7

27.5

 

3,927.3

28.0

East North Central

624.5

4.2

 

592.8

4.2

West North Central

237.2

1.6

 

205.8

1.5

South Atlantic

2,318.4

15.4

 

2,206.5

15.8

East South Central

438.5

2.9

 

422.5

3.0

West South Central

1,450.0

9.7

 

1,213.8

8.7

Mountain

931.8

6.2

 

968.6

6.9

Pacific

3,963.7

26.4

 

3,567.6

25.5

International

299.5

2.0

 

250.8

1.8

Total

$

15,017.2

 

100.0

%  

$

13,996.3

 

100.0

%

Property type distribution

Office

$

4,887.1

32.6

%

$

4,625.8

33.0

%

Retail

2,052.6

13.7

 

2,305.6

16.5

Industrial

2,268.5

15.1

 

2,312.9

16.5

Apartments

5,246.9

34.9

 

4,250.5

30.4

Hotel

90.8

0.6

 

99.8

0.7

Mixed use/other

471.3

3.1

 

401.7

2.9

Total

$

15,017.2

 

100.0

%  

$

13,996.3

 

100.0

%

Commercial Mortgage Loan Portfolio by Credit Risk (Table)

December 31, 2019

    

Brick and mortar

    

CTL

    

Total

  

(in millions)

A- and above

$

13,885.2

$

76.7

$

13,961.9

BBB+ thru BBB-

 

943.1

 

83.8

 

1,026.9

BB+ thru BB-

 

23.3

 

 

23.3

B+ and below

 

5.1

 

 

5.1

Total

$

14,856.7

$

160.5

$

15,017.2

 

December 31, 2018

    

Brick and mortar

    

CTL

    

Total

  

(in millions)

A- and above

$

12,735.2

$

84.3

$

12,819.5

BBB+ thru BBB-

 

977.3

 

105.7

 

1,083.0

BB+ thru BB-

 

88.3

 

 

88.3

B+ and below

 

5.5

 

 

5.5

Total

$

13,806.3

$

190.0

$

13,996.3

Performing and Non-Performing Residential Mortgage Loans (Table)

December 31, 2019

    

First liens

    

Home equity

    

Total

  

(in millions)

Performing

$

1,474.2

$

8.0

$

1,482.2

Non-performing

 

11.5

 

3.0

 

14.5

Total

$

1,485.7

$

11.0

$

1,496.7

4. Investments (continued)

December 31, 2018

    

First liens

    

Home equity

    

Total

  

(in millions)

Performing

$

1,340.3

$

10.8

$

1,351.1

Non-performing

 

12.6

 

4.3

 

16.9

Total

$

1,352.9

$

15.1

$

1,368.0

Non-Accrual Mortgage Loans (Table)

    

December 31, 2019

    

December 31, 2018

  

(in millions)

Residential:

First liens

$

8.8

$

10.1

Home equity

3.0

 

4.3

Total

$

11.8

$

14.4

Mortgage Loans Aging (Table)

    

December 31, 2019

    

    

    

Recorded

investment

90 days or

90 days or

30-59 days

60-89 days

more past

Total

more and

    

past due

    

past due

    

due

    

past due

    

Current

    

Total loans

    

accruing

  

(in millions)

Commercial-brick and mortar

$

$

$

$

$

14,856.7

$

14,856.7

$

Commercial-CTL

160.5

160.5

Residential-first liens

46.6

9.3

11.2

67.1

1,418.6

1,485.7

2.7

Residential-home equity

0.8

0.3

1.1

9.9

11.0

Total

$

47.4

$

9.3

$

11.5

$

68.2

$

16,445.7

$

16,513.9

$

2.7

December 31, 2018

Recorded

investment

90 days or

90 days or

30-59 days

60-89 days

more past

Total

more and

    

past due

    

past due

    

due

    

past due

    

Current

    

Total loans

    

accruing

  

(in millions)

Commercial-brick and mortar

$

$

$

$

$

13,806.3

$

13,806.3

$

Commercial-CTL

190.0

190.0

Residential-first liens

44.3

8.4

12.1

64.8

1,288.1

1,352.9

2.5

Residential-home equity

0.8

0.6

0.4

1.8

13.3

15.1

Total

$

45.1

$

9.0

$

12.5

$

66.6

$

15,297.7

$

15,364.3

$

2.5

Mortgage Loan Valuation Allowance (Table)

    

Commercial

    

Residential

    

Total

  

(in millions)

For the year ended December 31, 2019

Beginning balance

$

24.3

$

3.1

$

27.4

Provision

 

0.2

 

(3.2)

 

(3.0)

Charge-offs

 

 

(0.6)

 

(0.6)

Recoveries

 

 

3.2

 

3.2

Ending balance

$

24.5

$

2.5

$

27.0

Allowance ending balance by basis of impairment method:

Individually evaluated for impairment

$

$

1.4

$

1.4

Collectively evaluated for impairment

 

24.5

 

1.1

 

25.6

Allowance ending balance

$

24.5

$

2.5

$

27.0

Loan balance by basis of impairment method:

Individually evaluated for impairment

$

$

11.4

$

11.4

Collectively evaluated for impairment

 

15,017.2

 

1,485.3

 

16,502.5

Loan ending balance

$

15,017.2

$

1,496.7

$

16,513.9

For the year ended December 31, 2018

Beginning balance

$

25.8

$

6.9

$

32.7

Provision

 

(1.5)

 

(4.5)

 

(6.0)

Charge-offs

 

 

(2.4)

 

(2.4)

Recoveries

 

 

3.1

 

3.1

Ending balance

$

24.3

$

3.1

$

27.4

Allowance ending balance by basis of impairment method:

Individually evaluated for impairment

$

$

1.4

$

1.4

Collectively evaluated for impairment

 

24.3

 

1.7

 

26.0

Allowance ending balance

$

24.3

$

3.1

$

27.4

Loan balance by basis of impairment method:

Individually evaluated for impairment

$

$

9.2

$

9.2

Collectively evaluated for impairment

 

13,996.3

 

1,358.8

 

15,355.1

Loan ending balance

$

13,996.3

$

1,368.0

$

15,364.3

For the year ended December 31, 2017

Beginning balance

$

27.4

$

17.5

$

44.9

Provision

 

(1.6)

 

(10.4)

 

(12.0)

Charge-offs

 

 

(5.1)

 

(5.1)

Recoveries

 

 

4.9

 

4.9

Ending balance

$

25.8

$

6.9

$

32.7

Allowance ending balance by basis of impairment method:

Individually evaluated for impairment

$

$

4.5

$

4.5

Collectively evaluated for impairment

 

25.8

 

2.4

 

28.2

Allowance ending balance

$

25.8

$

6.9

$

32.7

Loan balance by basis of impairment method:

Individually evaluated for impairment

$

$

12.5

$

12.5

Collectively evaluated for impairment

 

12,897.3

 

1,273.4

 

14,170.7

Loan ending balance

$

12,897.3

$

1,285.9

$

14,183.2

Impaired Mortgage Loans (Table)

December 31, 2019

Unpaid

Recorded

principal

Related

    

investment

    

balance

    

allowance

  

(in millions)

With no related allowance recorded:

Residential-first liens

$

0.8

$

$

With an allowance recorded:

Residential-first liens

 

6.8

 

5.1

 

0.2

Residential-home equity

 

3.8

 

5.0

 

1.2

Total:

Residential

$

11.4

$

10.1

$

1.4

 

December 31, 2018

 

 

Unpaid

 

Recorded

principal

Related

    

investment

    

balance

    

allowance

  

(in millions)

With no related allowance recorded:

Residential-first liens

$

1.6

$

1.6

$

With an allowance recorded:

Residential-first liens

 

2.2

 

2.2

 

Residential-home equity

 

5.4

 

6.5

 

1.4

Total:

Residential

$

9.2

$

10.3

$

1.4

  

Average

 

    

recorded

Interest income

    

investment

    

recognized

(in millions)

For the year ended December 31, 2019

With no related allowance recorded:

Residential-first liens

$

1.2

$

With an allowance recorded:

Residential-first liens

 

4.5

 

0.1

Residential-home equity

 

4.6

 

0.1

Total:

Residential

$

10.3

$

0.2

For the year ended December 31, 2018

With no related allowance recorded:

Residential-first liens

$

1.3

$

With an allowance recorded:

Residential-first liens

 

3.2

 

0.1

Residential-home equity

 

6.5

 

0.2

Total:

Residential

$

11.0

$

0.3

For the year ended December 31, 2017

With no related allowance recorded:

Residential-first liens

$

1.2

$

With an allowance recorded:

Residential-first liens

 

4.4

 

0.2

Residential-home equity

 

10.3

 

0.2

Total:

Residential

$

15.9

$

0.4

Minority Interests in Unconsolidated Entities-Balance Sheet (Table)

December 31, 

    

2019

    

2018

(in millions)

Total assets

$

158,439.7

$

135,355.6

Total liabilities

88,455.8

 

80,265.4

Total equity

$

69,983.9

$

55,090.2

Net investment in unconsolidated entities (1)

$

1,825.5

$

1,723.7

Minority Interests in Unconsolidated Entities-Income Statement (Table)

For the year ended

December 31, 

    

2019

    

2018

    

2017

(in millions)

Total revenues

$

17,802.2

$

15,389.4

$

15,020.9

Net income

7,938.3

 

6,542.1

 

4,530.1

Our share of net income of unconsolidated entities (1)

222.5

 

161.6

 

232.7

(1)Our most significant equity investee is Brasilprev Seguros e Previdencia, a co-managed joint venture in Brazil.
Financial Assets Subject to Netting Agreements (Table)

Gross amounts not offset in the

consolidated statements

of financial position

 

Gross amount

 

    

    

 

    

of recognized

Financial

Collateral

    

assets (1)

    

instruments (2)

    

received

    

Net amount

   

(in millions)

December 31, 2019

Derivative assets

$

288.7

$

(88.4)

$

(197.6)

$

2.7

Reverse repurchase agreements

 

23.6

 

 

(23.6)

 

Total

$

312.3

$

(88.4)

$

(221.2)

$

2.7

December 31, 2018

Derivative assets

$

186.3

$

(70.5)

$

(108.1)

$

7.7

Reverse repurchase agreements

 

53.0

 

 

(53.0)

 

Total

$

239.3

$

(70.5)

$

(161.1)

$

7.7

(1)The gross amount of recognized derivative and reverse repurchase agreement assets are reported with other investments and cash and cash equivalents, respectively, on the consolidated statements of financial position. The above excludes $6.0 million and $7.7 million of derivative assets as of December 31, 2019 and December 31, 2018, respectively, that are not subject to master netting agreements or similar agreements. The gross amounts of derivative and reverse repurchase agreement assets are not netted against offsetting liabilities for presentation on the consolidated statements of financial position.
(2)Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated statements of financial position.

Financial Liabilities Subject to Netting Agreements (Table)

Gross amounts not offset in the

consolidated statements

of financial position

    

Gross amount

    

 

    

    

of recognized

Financial

Collateral

    

liabilities (1)

    

instruments (2)

    

pledged

    

Net amount

  

(in millions)

December 31, 2019

Derivative liabilities

$

216.0

$

(88.4)

$

(118.3)

$

9.3

December 31, 2018

Derivative liabilities

$

153.4

$

(70.5)

$

(52.3)

$

30.6

(1)The gross amount of recognized derivative liabilities is reported with other liabilities on the consolidated statements of financial position. The above excludes $314.5 million and $138.3 million of derivative liabilities as of December 31, 2019 and December 31, 2018, respectively, which are primarily embedded derivatives that are not subject to master netting agreements or similar agreements. The gross amounts of derivative liabilities are not netted against offsetting assets for presentation on the consolidated statements of financial position.
(2)Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated statements of financial position.