ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New Jersey | 22-3703799 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Page | ||
PART I FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
Forward-Looking Statements |
March 31, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2016-$278,000; 2015-$265,416)(1) | $ | 314,529 | $ | 290,323 | ||||
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2016-$2,841; 2015-$2,624)(1) | 2,411 | 2,308 | ||||||
Trading account assets supporting insurance liabilities, at fair value(1) | 21,447 | 20,522 | ||||||
Other trading account assets, at fair value(1) | 8,052 | 14,458 | ||||||
Equity securities, available-for-sale, at fair value (cost: 2016-$7,026; 2015-$6,847) | 9,400 | 9,274 | ||||||
Commercial mortgage and other loans (includes $286 and $274 measured at fair value under the fair value option at March 31, 2016 and December 31, 2015, respectively)(1) | 50,798 | 50,559 | ||||||
Policy loans | 11,805 | 11,657 | ||||||
Other long-term investments (includes $1,292 and $1,322 measured at fair value under the fair value option at March 31, 2016 and December 31, 2015, respectively)(1) | 10,281 | 9,986 | ||||||
Short-term investments | 3,697 | 8,105 | ||||||
Total investments | 432,420 | 417,192 | ||||||
Cash and cash equivalents(1) | 22,492 | 17,612 | ||||||
Accrued investment income(1) | 3,180 | 3,110 | ||||||
Deferred policy acquisition costs | 15,998 | 16,718 | ||||||
Value of business acquired | 2,582 | 2,828 | ||||||
Other assets(1)(2) | 14,822 | 14,225 | ||||||
Separate account assets | 281,501 | 285,570 | ||||||
TOTAL ASSETS | $ | 772,995 | $ | 757,255 | ||||
LIABILITIES AND EQUITY | ||||||||
LIABILITIES | ||||||||
Future policy benefits | $ | 234,728 | $ | 224,384 | ||||
Policyholders’ account balances(1) | 139,745 | 136,784 | ||||||
Policyholders’ dividends | 6,373 | 5,578 | ||||||
Securities sold under agreements to repurchase | 8,357 | 7,882 | ||||||
Cash collateral for loaned securities | 4,052 | 3,496 | ||||||
Income taxes | 12,128 | 8,714 | ||||||
Short-term debt | 969 | 1,216 | ||||||
Long-term debt(2) | 19,608 | 19,594 | ||||||
Other liabilities(1) | 13,323 | 13,517 | ||||||
Notes issued by consolidated variable interest entities (includes $2,946 and $8,597 measured at fair value under the fair value option at March 31, 2016 and December 31, 2015, respectively)(1) | 2,946 | 8,597 | ||||||
Separate account liabilities | 281,501 | 285,570 | ||||||
Total liabilities | 723,730 | 715,332 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 15) | ||||||||
EQUITY | ||||||||
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) | 0 | 0 | ||||||
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued at both March 31, 2016 and December 31, 2015) | 6 | 6 | ||||||
Additional paid-in capital | 24,420 | 24,482 | ||||||
Common Stock held in treasury, at cost (216,964,935 and 213,009,970 shares at March 31, 2016 and December 31, 2015, respectively) | (14,093 | ) | (13,814 | ) | ||||
Accumulated other comprehensive income (loss) | 19,066 | 12,285 | ||||||
Retained earnings | 19,843 | 18,931 | ||||||
Total Prudential Financial, Inc. equity | 49,242 | 41,890 | ||||||
Noncontrolling interests | 23 | 33 | ||||||
Total equity | 49,265 | 41,923 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 772,995 | $ | 757,255 |
(1) | See Note 5 for details of balances associated with variable interest entities. |
(2) | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
REVENUES | ||||||||
Premiums | $ | 6,297 | $ | 6,647 | ||||
Policy charges and fee income | 1,599 | 1,608 | ||||||
Net investment income | 3,670 | 3,769 | ||||||
Asset management and service fees | 905 | 952 | ||||||
Other income (loss) | (23 | ) | 215 | |||||
Realized investment gains (losses), net: | ||||||||
Other-than-temporary impairments on fixed maturity securities | (158 | ) | (14 | ) | ||||
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income | 32 | 6 | ||||||
Other realized investment gains (losses), net | 2,007 | 2,369 | ||||||
Total realized investment gains (losses), net | 1,881 | 2,361 | ||||||
Total revenues | 14,329 | 15,552 | ||||||
BENEFITS AND EXPENSES | ||||||||
Policyholders’ benefits | 7,031 | 7,239 | ||||||
Interest credited to policyholders’ account balances | 1,286 | 1,233 | ||||||
Dividends to policyholders | 266 | 781 | ||||||
Amortization of deferred policy acquisition costs | 1,202 | 789 | ||||||
General and administrative expenses | 2,812 | 2,762 | ||||||
Total benefits and expenses | 12,597 | 12,804 | ||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 1,732 | 2,748 | ||||||
Total income tax expense (benefit) | 368 | 699 | ||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 1,364 | 2,049 | ||||||
Equity in earnings of operating joint ventures, net of taxes | 5 | (3 | ) | |||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,369 | 2,046 | ||||||
Income (loss) from discontinued operations, net of taxes | 0 | 0 | ||||||
NET INCOME (LOSS) | 1,369 | 2,046 | ||||||
Less: Income (loss) attributable to noncontrolling interests | 33 | 10 | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ | 1,336 | $ | 2,036 | ||||
EARNINGS PER SHARE | ||||||||
Basic earnings per share-Common Stock: | ||||||||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. | $ | 2.97 | $ | 4.44 | ||||
Income (loss) from discontinued operations, net of taxes | 0.00 | 0.00 | ||||||
Net income (loss) attributable to Prudential Financial, Inc. | $ | 2.97 | $ | 4.44 | ||||
Diluted earnings per share-Common Stock: | ||||||||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. | $ | 2.93 | $ | 4.37 | ||||
Income (loss) from discontinued operations, net of taxes | 0.00 | 0.00 | ||||||
Net income (loss) attributable to Prudential Financial, Inc. | $ | 2.93 | $ | 4.37 | ||||
Dividends declared per share of Common Stock | $ | 0.70 | $ | 0.58 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
NET INCOME (LOSS) | $ | 1,369 | $ | 2,046 | ||||
Other comprehensive income (loss), before tax: | ||||||||
Foreign currency translation adjustments for the period | 737 | (67 | ) | |||||
Net unrealized investment gains (losses) | 9,413 | 2,490 | ||||||
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | 34 | 52 | ||||||
Total | 10,184 | 2,475 | ||||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 3,399 | 811 | ||||||
Other comprehensive income (loss), net of taxes | 6,785 | 1,664 | ||||||
Comprehensive income (loss) | 8,154 | 3,710 | ||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 37 | (28 | ) | |||||
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ | 8,117 | $ | 3,738 |
Prudential Financial, Inc. Equity | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held In Treasury | Class B Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Total Prudential Financial, Inc. Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Balance, December 31, 2015 | $ | 6 | $ | 24,482 | $ | 18,931 | $ | (13,814 | ) | $ | 0 | $ | 12,285 | $ | 41,890 | $ | 33 | $ | 41,923 | ||||||||||||||||
Cumulative effect of adoption of accounting changes | 11 | 11 | (30 | ) | (19 | ) | |||||||||||||||||||||||||||||
Common Stock acquired | (375 | ) | (375 | ) | (375 | ) | |||||||||||||||||||||||||||||
Class B Stock repurchase adjustment | (119 | ) | (119 | ) | (119 | ) | |||||||||||||||||||||||||||||
Contributions from noncontrolling interests | 2 | 2 | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (19 | ) | (19 | ) | |||||||||||||||||||||||||||||||
Stock-based compensation programs | (62 | ) | 96 | 34 | 34 | ||||||||||||||||||||||||||||||
Dividends declared on Common Stock | (316 | ) | (316 | ) | (316 | ) | |||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income (loss) | 1,336 | 1,336 | 33 | 1,369 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 6,781 | 6,781 | 4 | 6,785 | |||||||||||||||||||||||||||||||
Total comprehensive income (loss) | 8,117 | 37 | 8,154 | ||||||||||||||||||||||||||||||||
Balance, March 31, 2016 | $ | 6 | $ | 24,420 | $ | 19,843 | $ | (14,093 | ) | $ | 0 | $ | 19,066 | $ | 49,242 | $ | 23 | $ | 49,265 | ||||||||||||||||
Prudential Financial, Inc. Equity | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held In Treasury | Class B Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Total Prudential Financial, Inc. Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 6 | $ | 24,565 | $ | 14,888 | $ | (13,088 | ) | $ | (651 | ) | $ | 16,050 | $ | 41,770 | $ | 579 | $ | 42,349 | |||||||||||||||
Common Stock acquired | (250 | ) | (250 | ) | (250 | ) | |||||||||||||||||||||||||||||
Class B Stock cancelled | (167 | ) | (484 | ) | 651 | 0 | 0 | ||||||||||||||||||||||||||||
Contributions from noncontrolling interests | 11 | 11 | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (32 | ) | (32 | ) | |||||||||||||||||||||||||||||||
Stock-based compensation programs | (52 | ) | 105 | 53 | 53 | ||||||||||||||||||||||||||||||
Dividends declared on Common Stock | (267 | ) | (267 | ) | (267 | ) | |||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income (loss) | 2,036 | 2,036 | 10 | 2,046 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1,702 | 1,702 | (38 | ) | 1,664 | ||||||||||||||||||||||||||||||
Total comprehensive income (loss) | 3,738 | (28 | ) | 3,710 | |||||||||||||||||||||||||||||||
Balance, March 31, 2015 | $ | 6 | $ | 24,346 | $ | 16,173 | $ | (13,233 | ) | $ | 0 | $ | 17,752 | $ | 45,044 | $ | 530 | $ | 45,574 |
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | 1,369 | $ | 2,046 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Realized investment (gains) losses, net | (1,881 | ) | (2,361 | ) | |||
Policy charges and fee income | (629 | ) | (576 | ) | |||
Interest credited to policyholders’ account balances | 1,286 | 1,233 | |||||
Depreciation and amortization | 167 | 170 | |||||
(Gains) losses on trading account assets supporting insurance liabilities, net | (216 | ) | (85 | ) | |||
Change in: | |||||||
Deferred policy acquisition costs | 517 | 142 | |||||
Future policy benefits and other insurance liabilities | 1,741 | 1,549 | |||||
Other trading account assets | 96 | (11 | ) | ||||
Income taxes | 122 | 644 | |||||
Derivatives, net | 4,540 | 3,261 | |||||
Other, net | (818 | ) | (484 | ) | |||
Cash flows from (used in) operating activities | 6,294 | 5,528 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Proceeds from the sale/maturity/prepayment of: | |||||||
Fixed maturities, available-for-sale | 9,420 | 12,313 | |||||
Fixed maturities, held-to-maturity | 50 | 59 | |||||
Trading account assets supporting insurance liabilities and other trading account assets | 5,558 | 2,925 | |||||
Equity securities, available-for-sale | 1,014 | 988 | |||||
Commercial mortgage and other loans | 1,378 | 968 | |||||
Policy loans | 572 | 549 | |||||
Other long-term investments | 108 | 198 | |||||
Short-term investments | 19,710 | 20,093 | |||||
Payments for the purchase/origination of: | |||||||
Fixed maturities, available-for-sale | (15,415 | ) | (10,357 | ) | |||
Trading account assets supporting insurance liabilities and other trading account assets | (6,080 | ) | (4,024 | ) | |||
Equity securities, available-for-sale | (900 | ) | (974 | ) | |||
Commercial mortgage and other loans | (1,429 | ) | (2,096 | ) | |||
Policy loans | (451 | ) | (439 | ) | |||
Other long-term investments | (518 | ) | (331 | ) | |||
Short-term investments | (15,401 | ) | (17,763 | ) | |||
Acquisition of business, net of cash acquired | (532 | ) | 0 | ||||
Derivatives, net | 107 | (366 | ) | ||||
Other, net | 61 | (95 | ) | ||||
Cash flows from (used in) investing activities | (2,748 | ) | 1,648 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Policyholders’ account deposits | 6,150 | 5,063 | |||||
Policyholders’ account withdrawals | (4,686 | ) | (5,359 | ) | |||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 1,031 | (1,445 | ) | ||||
Cash dividends paid on Common Stock | (318 | ) | (268 | ) | |||
Net change in financing arrangements (maturities 90 days or less) | 22 | 135 | |||||
Common Stock acquired | (357 | ) | (252 | ) | |||
Class B stock acquired | (119 | ) | (651 | ) | |||
Common Stock reissued for exercise of stock options | 23 | 41 | |||||
Proceeds from the issuance of debt (maturities longer than 90 days) | 53 | 1,152 | |||||
Repayments of debt (maturities longer than 90 days) | (340 | ) | (1,293 | ) | |||
Excess tax benefits from share-based payment arrangements | 2 | 12 | |||||
Other, net | (282 | ) | (221 | ) | |||
Cash flows from (used in) financing activities | 1,179 | (3,086 | ) | ||||
Effect of foreign exchange rate changes on cash balances | 155 | 111 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,880 | 4,201 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 17,612 | 14,918 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 22,492 | $ | 19,119 | |||
NON-CASH TRANSACTIONS DURING THE PERIOD(1) | |||||||
Treasury Stock shares issued for stock-based compensation programs | $ | 107 | $ | 106 | |||
Significant Pension Risk Transfer transactions: | |||||||
Assets acquired, excluding cash and cash equivalents acquired | $ | 0 | $ | 640 | |||
Liabilities assumed | 0 | 635 | |||||
Net cash paid | $ | 0 | $ | (5 | ) |
March 31, 2016 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI(4) | |||||||||||||||
(in millions) | |||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 17,364 | $ | 4,681 | $ | 1 | $ | 22,044 | $ | 0 | |||||||||
Obligations of U.S. states and their political subdivisions | 8,262 | 1,022 | 8 | 9,276 | 0 | ||||||||||||||
Foreign government bonds | 77,878 | 18,662 | 64 | 96,476 | 0 | ||||||||||||||
U.S. corporate public securities | 74,007 | 7,661 | 1,063 | 80,605 | (12 | ) | |||||||||||||
U.S. corporate private securities(1) | 28,604 | 2,318 | 310 | 30,612 | (17 | ) | |||||||||||||
Foreign corporate public securities | 26,566 | 3,162 | 379 | 29,349 | (4 | ) | |||||||||||||
Foreign corporate private securities | 19,570 | 797 | 719 | 19,648 | 0 | ||||||||||||||
Asset-backed securities(2) | 10,577 | 164 | 196 | 10,545 | (444 | ) | |||||||||||||
Commercial mortgage-backed securities | 10,550 | 461 | 7 | 11,004 | (1 | ) | |||||||||||||
Residential mortgage-backed securities(3) | 4,622 | 350 | 2 | 4,970 | (3 | ) | |||||||||||||
Total fixed maturities, available-for-sale(1) | $ | 278,000 | $ | 39,278 | $ | 2,749 | $ | 314,529 | $ | (481 | ) | ||||||||
Equity securities, available-for-sale | $ | 7,026 | $ | 2,490 | $ | 116 | $ | 9,400 |
March 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Fixed maturities, held-to-maturity | |||||||||||||||
Foreign government bonds | $ | 872 | $ | 297 | $ | 0 | $ | 1,169 | |||||||
Foreign corporate public securities | 663 | 67 | 2 | 728 | |||||||||||
Foreign corporate private securities(5) | 84 | 4 | 0 | 88 | |||||||||||
Commercial mortgage-backed securities | 22 | 0 | 0 | 22 | |||||||||||
Residential mortgage-backed securities(3) | 770 | 64 | 0 | 834 | |||||||||||
Total fixed maturities, held-to-maturity(5) | $ | 2,411 | $ | 432 | $ | 2 | $ | 2,841 |
(1) | Excludes notes with amortized cost of $1,050 million (fair value, $1,050 million) which have been offset with the associated payables under a netting agreement. |
(2) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
(3) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
(4) | Represents the amount of other-than-temporary impairment (“OTTI”) losses in Accumulated Other Comprehensive Income (“AOCI”), which were not included in earnings. Amount excludes $680 million of net unrealized gains on impaired available-for-sale securities and less than $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
(5) | Excludes notes with amortized cost of $3,990 million (fair value, $3,990 million) which have been offset with the associated payables under a netting agreement. |
December 31, 2015 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI(4) | |||||||||||||||
(in millions) | |||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 14,992 | $ | 3,544 | $ | 19 | $ | 18,517 | $ | 0 | |||||||||
Obligations of U.S. states and their political subdivisions | 8,089 | 747 | 41 | 8,795 | 0 | ||||||||||||||
Foreign government bonds | 71,849 | 12,011 | 147 | 83,713 | 1 | ||||||||||||||
U.S. corporate public securities | 70,979 | 6,344 | 1,955 | 75,368 | (3 | ) | |||||||||||||
U.S. corporate private securities(1) | 28,525 | 2,278 | 359 | 30,444 | 0 | ||||||||||||||
Foreign corporate public securities | 26,354 | 2,821 | 621 | 28,554 | 0 | ||||||||||||||
Foreign corporate private securities | 19,393 | 739 | 994 | 19,138 | 0 | ||||||||||||||
Asset-backed securities(2) | 10,121 | 226 | 121 | 10,226 | (452 | ) | |||||||||||||
Commercial mortgage-backed securities | 10,337 | 195 | 70 | 10,462 | (1 | ) | |||||||||||||
Residential mortgage-backed securities(3) | 4,777 | 335 | 6 | 5,106 | (4 | ) | |||||||||||||
Total fixed maturities, available-for-sale(1) | $ | 265,416 | $ | 29,240 | $ | 4,333 | $ | 290,323 | $ | (459 | ) | ||||||||
Equity securities, available-for-sale | $ | 6,847 | $ | 2,570 | $ | 143 | $ | 9,274 |
December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Fixed maturities, held-to-maturity | |||||||||||||||
Foreign government bonds | $ | 816 | $ | 196 | $ | 0 | $ | 1,012 | |||||||
Foreign corporate public securities | 625 | 62 | 0 | 687 | |||||||||||
Foreign corporate private securities(5) | 78 | 4 | 0 | 82 | |||||||||||
Commercial mortgage-backed securities | 33 | 1 | 0 | 34 | |||||||||||
Residential mortgage-backed securities(3) | 756 | 53 | 0 | 809 | |||||||||||
Total fixed maturities, held-to-maturity(5) | $ | 2,308 | $ | 316 | $ | 0 | $ | 2,624 |
(1) | Excludes notes with amortized cost of $1,050 million (fair value, $1,039 million) which have been offset with the associated payables under a netting agreement. |
(2) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
(3) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
(4) | Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $693 million of net unrealized gains on impaired available-for-sale securities and less than $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
(5) | Excludes notes with amortized cost of $3,850 million (fair value, $4,081 million) which have been offset with the associated payables under a netting agreement. |
Available-for-Sale | Held-to-Maturity | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Due in one year or less | $ | 14,423 | $ | 15,147 | $ | 7 | $ | 7 | |||||||
Due after one year through five years | 49,178 | 53,605 | 71 | 75 | |||||||||||
Due after five years through ten years | 56,420 | 62,024 | 673 | 738 | |||||||||||
Due after ten years(1) | 132,230 | 157,234 | 868 | 1,165 | |||||||||||
Asset-backed securities | 10,577 | 10,545 | 0 | 0 | |||||||||||
Commercial mortgage-backed securities | 10,550 | 11,004 | 22 | 22 | |||||||||||
Residential mortgage-backed securities | 4,622 | 4,970 | 770 | 834 | |||||||||||
Total | $ | 278,000 | $ | 314,529 | $ | 2,411 | $ | 2,841 |
(1) | Excludes available-for-sale notes with amortized cost of $1,050 million (fair value, $1,050 million) and held-to-maturity notes with amortized cost of $3,990 million (fair value, $3,990 million), which have been offset with the associated payables under a netting agreement. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Fixed maturities, available-for-sale | |||||||
Proceeds from sales | $ | 5,122 | $ | 7,418 | |||
Proceeds from maturities/repayments | 4,037 | 5,095 | |||||
Gross investment gains from sales, prepayments and maturities | 295 | 532 | |||||
Gross investment losses from sales and maturities | (242 | ) | (56 | ) | |||
Fixed maturities, held-to-maturity | |||||||
Gross investment gains from prepayments | $ | 0 | $ | 0 | |||
Proceeds from maturities/repayments | 50 | 60 | |||||
Equity securities, available-for-sale | |||||||
Proceeds from sales | $ | 941 | $ | 989 | |||
Gross investment gains from sales | 110 | 153 | |||||
Gross investment losses from sales | (71 | ) | (26 | ) | |||
Fixed maturity and equity security impairments | |||||||
Net writedowns for OTTI losses on fixed maturities recognized in earnings(1) | $ | (126 | ) | $ | (8 | ) | |
Writedowns for impairments on equity securities | (11 | ) | (6 | ) |
(1) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Balance, beginning of period | $ | 532 | $ | 781 | |||
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (10 | ) | (13 | ) | |||
Credit loss impairments previously recognized on securities impaired to fair value during the period(1) | (2 | ) | (1 | ) | |||
Credit loss impairments recognized in the current period on securities not previously impaired | 20 | 2 | |||||
Additional credit loss impairments recognized in the current period on securities previously impaired | 0 | 0 | |||||
Increases due to the passage of time on previously recorded credit losses | 5 | 7 | |||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (2 | ) | (3 | ) | |||
Balance, end of period | $ | 543 | $ | 773 |
(1) | Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Short-term investments and cash equivalents | $ | 888 | $ | 888 | $ | 765 | $ | 765 | ||||||||
Fixed maturities: | ||||||||||||||||
Corporate securities | 13,142 | 13,450 | 12,797 | 12,851 | ||||||||||||
Commercial mortgage-backed securities | 1,865 | 1,922 | 1,860 | 1,862 | ||||||||||||
Residential mortgage-backed securities(1) | 1,356 | 1,393 | 1,411 | 1,428 | ||||||||||||
Asset-backed securities(2) | 1,378 | 1,377 | 1,295 | 1,299 | ||||||||||||
Foreign government bonds | 738 | 773 | 680 | 694 | ||||||||||||
U.S. government authorities and agencies and obligations of U.S. states | 390 | 435 | 326 | 369 | ||||||||||||
Total fixed maturities | 18,869 | 19,350 | 18,369 | 18,503 | ||||||||||||
Equity securities | 1,093 | 1,209 | 1,030 | 1,254 | ||||||||||||
Total trading account assets supporting insurance liabilities | $ | 20,850 | $ | 21,447 | $ | 20,164 | $ | 20,522 |
(1) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
(2) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Short-term investments and cash equivalents | $ | 26 | $ | 26 | $ | 26 | $ | 26 | ||||||||
Fixed maturities | 5,250 | 4,923 | 11,132 | 10,764 | ||||||||||||
Equity securities | 967 | 1,045 | 1,006 | 1,098 | ||||||||||||
Other | 5 | 5 | 12 | 15 | ||||||||||||
Subtotal | $ | 6,248 | 5,999 | $ | 12,176 | 11,903 | ||||||||||
Derivative instruments | 2,053 | 2,555 | ||||||||||||||
Total other trading account assets | $ | 8,052 | $ | 14,458 |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Investments in Japanese government and government agency securities: | ||||||||||||||||
Fixed maturities, available-for-sale | $ | 59,184 | $ | 73,099 | $ | 53,851 | $ | 61,911 | ||||||||
Fixed maturities, held-to-maturity | 850 | 1,141 | 796 | 988 | ||||||||||||
Trading account assets supporting insurance liabilities | 541 | 573 | 492 | 502 | ||||||||||||
Other trading account assets | 33 | 34 | 33 | 33 | ||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | ||||||||||||
Cash equivalents | 0 | 0 | 0 | 0 | ||||||||||||
Total | $ | 60,608 | $ | 74,847 | $ | 55,172 | $ | 63,434 |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Investments in South Korean government and government agency securities: | ||||||||||||||||
Fixed maturities, available-for-sale | $ | 7,490 | $ | 9,960 | $ | 7,191 | $ | 9,233 | ||||||||
Fixed maturities, held-to-maturity | 0 | 0 | 0 | 0 | ||||||||||||
Trading account assets supporting insurance liabilities | 44 | 45 | 44 | 44 | ||||||||||||
Other trading account assets | 7 | 7 | 0 | 0 | ||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | ||||||||||||
Cash equivalents | 0 | 0 | 0 | 0 | ||||||||||||
Total | $ | 7,541 | $ | 10,012 | $ | 7,235 | $ | 9,277 |
March 31, 2016 | December 31, 2015 | |||||||||||||
Amount (in millions) | % of Total | Amount (in millions) | % of Total | |||||||||||
Commercial mortgage and agricultural property loans by property type: | ||||||||||||||
Office | $ | 11,517 | 23.4 | % | $ | 11,226 | 22.9 | % | ||||||
Retail | 8,493 | 17.2 | 8,917 | 18.2 | ||||||||||
Apartments/Multi-Family | 12,493 | 25.4 | 12,034 | 24.5 | ||||||||||
Industrial | 7,703 | 15.6 | 7,775 | 15.9 | ||||||||||
Hospitality | 2,396 | 4.9 | 2,513 | 5.1 | ||||||||||
Other | 3,811 | 7.7 | 3,722 | 7.6 | ||||||||||
Total commercial mortgage loans | 46,413 | 94.2 | 46,187 | 94.2 | ||||||||||
Agricultural property loans | 2,842 | 5.8 | 2,859 | 5.8 | ||||||||||
Total commercial mortgage and agricultural property loans by property type | 49,255 | 100.0 | % | 49,046 | 100.0 | % | ||||||||
Valuation allowance | (89 | ) | (99 | ) | ||||||||||
Total net commercial mortgage and agricultural property loans by property type | 49,166 | 48,947 | ||||||||||||
Other loans: | ||||||||||||||
Uncollateralized loans | 1,022 | 1,012 | ||||||||||||
Residential property loans | 307 | 301 | ||||||||||||
Other collateralized loans | 312 | 312 | ||||||||||||
Total other loans | 1,641 | 1,625 | ||||||||||||
Valuation allowance | (9 | ) | (13 | ) | ||||||||||
Total net other loans | 1,632 | 1,612 | ||||||||||||
Total commercial mortgage and other loans(1) | $ | 50,798 | $ | 50,559 |
(1) | Includes loans held at fair value. |
March 31, 2016 | ||||||||||||||||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Residential Property Loans | Other Collateralized Loans | Uncollateralized Loans | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Allowance for credit losses, beginning of year | $ | 97 | $ | 2 | $ | 3 | $ | 0 | $ | 10 | $ | 112 | ||||||||||||
Addition to (release of) allowance for losses | (10 | ) | 0 | 0 | 0 | (5 | ) | (15 | ) | |||||||||||||||
Charge-offs, net of recoveries | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Change in foreign exchange | 0 | 0 | 0 | 0 | 1 | 1 | ||||||||||||||||||
Total ending balance | $ | 87 | $ | 2 | $ | 3 | $ | 0 | $ | 6 | $ | 98 |
December 31, 2015 | ||||||||||||||||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Residential Property Loans | Other Collateralized Loans | Uncollateralized Loans | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Allowance for credit losses, beginning of year | $ | 104 | $ | 1 | $ | 5 | $ | 0 | $ | 9 | $ | 119 | ||||||||||||
Addition to (release of) allowance for losses | (7 | ) | 1 | (2 | ) | 0 | 1 | (7 | ) | |||||||||||||||
Charge-offs, net of recoveries | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Change in foreign exchange | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total ending balance | $ | 97 | $ | 2 | $ | 3 | $ | 0 | $ | 10 | $ | 112 |
March 31, 2016 | ||||||||||||||||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Residential Property Loans | Other Collateralized Loans | Uncollateralized Loans | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Allowance for Credit Losses: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
Collectively evaluated for impairment | 86 | 2 | 3 | 0 | 6 | 97 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total ending balance | $ | 87 | $ | 2 | $ | 3 | $ | 0 | $ | 6 | $ | 98 | ||||||||||||
Recorded Investment(1): | ||||||||||||||||||||||||
Gross of reserves: individually evaluated for impairment | $ | 100 | $ | 26 | $ | 0 | $ | 0 | $ | 2 | $ | 128 | ||||||||||||
Gross of reserves: collectively evaluated for impairment | 46,313 | 2,816 | 307 | 312 | 1,020 | 50,768 | ||||||||||||||||||
Gross of reserves: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total ending balance, gross of reserves | $ | 46,413 | $ | 2,842 | $ | 307 | $ | 312 | $ | 1,022 | $ | 50,896 |
(1) | Recorded investment reflects the carrying value gross of related allowance. |
December 31, 2015 | ||||||||||||||||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Residential Property Loans | Other Collateralized Loans | Uncollateralized Loans | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Allowance for Credit Losses: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
Collectively evaluated for impairment | 96 | 2 | 3 | 0 | 10 | 111 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total ending balance | $ | 97 | $ | 2 | $ | 3 | $ | 0 | $ | 10 | $ | 112 | ||||||||||||
Recorded Investment(1): | ||||||||||||||||||||||||
Gross of reserves: individually evaluated for impairment | $ | 111 | $ | 8 | $ | 0 | $ | 0 | $ | 2 | $ | 121 | ||||||||||||
Gross of reserves: collectively evaluated for impairment | 46,076 | 2,851 | 301 | 312 | 1,010 | 50,550 | ||||||||||||||||||
Gross of reserves: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total ending balance, gross of reserves | $ | 46,187 | $ | 2,859 | $ | 301 | $ | 312 | $ | 1,012 | $ | 50,671 |
(1) | Recorded investment reflects the carrying value gross of related allowance. |
March 31, 2016 | ||||||||||||||||||||
Recorded Investment(1) | Unpaid Principal Balance | Related Allowance | Average Recorded Investment Before Allowance(2) | Interest Income Recognized(3) | ||||||||||||||||
(in millions) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial mortgage loans | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Agricultural property loans | 0 | 0 | 0 | 1 | 0 | |||||||||||||||
Residential property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other collateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Uncollateralized loans | 0 | 2 | 0 | 0 | 0 | |||||||||||||||
Total with no related allowance | $ | 0 | $ | 2 | $ | 0 | $ | 1 | $ | 0 | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial mortgage loans | $ | 4 | $ | 4 | $ | 1 | $ | 5 | $ | 0 | ||||||||||
Agricultural property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Residential property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other collateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Uncollateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total with related allowance | $ | 4 | $ | 4 | $ | 1 | $ | 5 | $ | 0 | ||||||||||
Total: | ||||||||||||||||||||
Commercial mortgage loans | $ | 4 | $ | 4 | $ | 1 | $ | 5 | $ | 0 | ||||||||||
Agricultural property loans | 0 | 0 | 0 | 1 | 0 | |||||||||||||||
Residential property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other collateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Uncollateralized loans | 0 | 2 | 0 | 0 | 0 | |||||||||||||||
Total | $ | 4 | $ | 6 | $ | 1 | $ | 6 | $ | 0 |
(1) | Recorded investment reflects the carrying value gross of related allowance. |
(2) | Average recorded investment represents the average of the beginning-of-period and end-of-period balances. |
(3) | The interest income recognized is for the year-to-date income regardless of when the impairments occurred. |
December 31, 2015 | ||||||||||||||||||||
Recorded Investment(1) | Unpaid Principal Balance | Related Allowance | Average Recorded Investment Before Allowance(2) | Interest Income Recognized(3) | ||||||||||||||||
(in millions) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial mortgage loans | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Agricultural property loans | 0 | 0 | 0 | 2 | 0 | |||||||||||||||
Residential property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other collateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Uncollateralized loans | 0 | 1 | 0 | 0 | 0 | |||||||||||||||
Total with no related allowance | $ | 0 | $ | 1 | $ | 0 | $ | 2 | $ | 0 | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial mortgage loans | $ | 1 | $ | 1 | $ | 1 | $ | 52 | $ | 3 | ||||||||||
Agricultural property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Residential property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other collateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Uncollateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total with related allowance | $ | 1 | $ | 1 | $ | 1 | $ | 52 | $ | 3 | ||||||||||
Total: | ||||||||||||||||||||
Commercial mortgage loans | $ | 1 | $ | 1 | $ | 1 | $ | 52 | $ | 3 | ||||||||||
Agricultural property loans | 0 | 0 | 0 | 2 | 0 | |||||||||||||||
Residential property loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other collateralized loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Uncollateralized loans | 0 | 1 | 0 | 0 | 0 | |||||||||||||||
Total | $ | 1 | $ | 2 | $ | 1 | $ | 54 | $ | 3 |
(1) | Recorded investment reflects the carrying value gross of related allowance. |
(2) | Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances. |
(3) | The interest income recognized is for the year-to-date income regardless of when the impairments occurred. |
Debt Service Coverage Ratio—March 31, 2016 | ||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | |||||||||||||
(in millions) | ||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||
0%-59.99% | $ | 25,875 | $ | 458 | $ | 212 | $ | 26,545 | ||||||||
60%-69.99% | 12,355 | 559 | 290 | 13,204 | ||||||||||||
70%-79.99% | 6,007 | 289 | 59 | 6,355 | ||||||||||||
Greater than 80% | 128 | 155 | 26 | 309 | ||||||||||||
Total commercial mortgage loans | $ | 44,365 | $ | 1,461 | $ | 587 | $ | 46,413 |
Debt Service Coverage Ratio—March 31, 2016 | ||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | |||||||||||||
(in millions) | ||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||
0%-59.99% | $ | 2,540 | $ | 116 | $ | 3 | $ | 2,659 | ||||||||
60%-69.99% | 183 | 0 | 0 | 183 | ||||||||||||
70%-79.99% | 0 | 0 | 0 | 0 | ||||||||||||
Greater than 80% | 0 | 0 | 0 | 0 | ||||||||||||
Total agricultural property loans | $ | 2,723 | $ | 116 | $ | 3 | $ | 2,842 |
Debt Service Coverage Ratio—March 31, 2016 | ||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | |||||||||||||
(in millions) | ||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||
0%-59.99% | $ | 28,415 | $ | 574 | $ | 215 | $ | 29,204 | ||||||||
60%-69.99% | 12,538 | 559 | 290 | 13,387 | ||||||||||||
70%-79.99% | 6,007 | 289 | 59 | 6,355 | ||||||||||||
Greater than 80% | 128 | 155 | 26 | 309 | ||||||||||||
Total commercial mortgage and agricultural property loans | $ | 47,088 | $ | 1,577 | $ | 590 | $ | 49,255 |
Debt Service Coverage Ratio—December 31, 2015 | ||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | |||||||||||||
(in millions) | ||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||
0%-59.99% | $ | 25,978 | $ | 515 | $ | 207 | $ | 26,700 | ||||||||
60%-69.99% | 12,191 | 395 | 234 | 12,820 | ||||||||||||
70%-79.99% | 5,668 | 500 | 97 | 6,265 | ||||||||||||
Greater than 80% | 119 | 151 | 132 | 402 | ||||||||||||
Total commercial mortgage loans | $ | 43,956 | $ | 1,561 | $ | 670 | $ | 46,187 |
Debt Service Coverage Ratio—December 31, 2015 | ||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | |||||||||||||
(in millions) | ||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||
0%-59.99% | $ | 2,587 | $ | 84 | $ | 3 | $ | 2,674 | ||||||||
60%-69.99% | 185 | 0 | 0 | 185 | ||||||||||||
70%-79.99% | 0 | 0 | 0 | 0 | ||||||||||||
Greater than 80% | 0 | 0 | 0 | 0 | ||||||||||||
Total agricultural property loans | $ | 2,772 | $ | 84 | $ | 3 | $ | 2,859 |
Debt Service Coverage Ratio—December 31, 2015 | ||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | |||||||||||||
(in millions) | ||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||
0%-59.99% | $ | 28,565 | $ | 599 | $ | 210 | $ | 29,374 | ||||||||
60%-69.99% | 12,376 | 395 | 234 | 13,005 | ||||||||||||
70%-79.99% | 5,668 | 500 | 97 | 6,265 | ||||||||||||
Greater than 80% | 119 | 151 | 132 | 402 | ||||||||||||
Total commercial mortgage and agricultural property loans | $ | 46,728 | $ | 1,645 | $ | 673 | $ | 49,046 |
March 31, 2016 | ||||||||||||||||||||||||||||||||
Current | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days - Accruing | Greater Than 90 Days - Not Accruing | Total Past Due | Total Commercial Mortgage and Other Loans | Non Accrual Status | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 46,409 | $ | 4 | $ | 0 | $ | 0 | $ | 0 | $ | 4 | $ | 46,413 | $ | 48 | ||||||||||||||||
Agricultural property loans | 2,839 | 0 | 0 | 0 | 3 | 3 | 2,842 | 3 | ||||||||||||||||||||||||
Residential property loans | 293 | 7 | 1 | 0 | 6 | 14 | 307 | 6 | ||||||||||||||||||||||||
Other collateralized loans | 312 | 0 | 0 | 0 | 0 | 0 | 312 | 0 | ||||||||||||||||||||||||
Uncollateralized loans | 1,022 | 0 | 0 | 0 | 0 | 0 | 1,022 | 0 | ||||||||||||||||||||||||
Total | $ | 50,875 | $ | 11 | $ | 1 | $ | 0 | $ | 9 | $ | 21 | $ | 50,896 | $ | 57 |
December 31, 2015 | ||||||||||||||||||||||||||||||||
Current | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days - Accruing | Greater Than 90 Days - Not Accruing | Total Past Due | Total Commercial Mortgage and Other Loans | Non Accrual Status | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 46,187 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 46,187 | $ | 53 | ||||||||||||||||
Agricultural property loans | 2,856 | 2 | 0 | 0 | 1 | 3 | 2,859 | 1 | ||||||||||||||||||||||||
Residential property loans | 288 | 7 | 0 | 0 | 6 | 13 | 301 | 6 | ||||||||||||||||||||||||
Other collateralized loans | 312 | 0 | 0 | 0 | 0 | 0 | 312 | 0 | ||||||||||||||||||||||||
Uncollateralized loans | 1,012 | 0 | 0 | 0 | 0 | 0 | 1,012 | 0 | ||||||||||||||||||||||||
Total | $ | 50,655 | $ | 9 | $ | 0 | $ | 0 | $ | 7 | $ | 16 | $ | 50,671 | $ | 60 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(in millions) | ||||||||
Fixed maturities, available-for-sale(1) | $ | 2,623 | $ | 2,582 | ||||
Fixed maturities, held-to-maturity(1) | 51 | 48 | ||||||
Equity securities, available-for-sale | 79 | 96 | ||||||
Trading account assets | 254 | 287 | ||||||
Commercial mortgage and other loans | 555 | 545 | ||||||
Policy loans | 154 | 154 | ||||||
Short-term investments and cash equivalents | 33 | 13 | ||||||
Other long-term investments | 99 | 244 | ||||||
Gross investment income | 3,848 | 3,969 | ||||||
Less: investment expenses | (178 | ) | (200 | ) | ||||
Net investment income | $ | 3,670 | $ | 3,769 |
(1) | Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Fixed maturities | $ | (73 | ) | $ | 468 | ||
Equity securities | 28 | 121 | |||||
Commercial mortgage and other loans | 27 | 11 | |||||
Investment real estate | 0 | 25 | |||||
Joint ventures and limited partnerships | (41 | ) | (5 | ) | |||
Derivatives(1) | 1,944 | 1,738 | |||||
Other | (4 | ) | 3 | ||||
Realized investment gains (losses), net | $ | 1,881 | $ | 2,361 |
(1) | Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination. |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Fixed maturity securities on which an OTTI loss has been recognized | $ | 199 | $ | 234 | |||
Fixed maturity securities, available-for-sale—all other | 36,330 | 24,673 | |||||
Equity securities, available-for-sale | 2,374 | 2,427 | |||||
Derivatives designated as cash flow hedges(1) | 896 | 1,165 | |||||
Other investments(2) | (16 | ) | (25 | ) | |||
Net unrealized gains (losses) on investments | $ | 39,783 | $ | 28,474 |
(1) | See Note 14 for more information on cash flow hedges. |
(2) | As of March 31, 2016, there were $0 million of net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets” and losses on notes associated with payables under a netting agreement. |
March 31, 2016 | ||||||||||||||||||||||||
Less than twelve months | Twelve months or more | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Fixed maturities(1) | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 81 | $ | 1 | $ | 7 | $ | 0 | $ | 88 | $ | 1 | ||||||||||||
Obligations of U.S. states and their political subdivisions | 98 | 0 | 193 | 8 | 291 | 8 | ||||||||||||||||||
Foreign government bonds | 527 | 12 | 463 | 52 | 990 | 64 | ||||||||||||||||||
U.S. corporate public securities | 7,263 | 376 | 8,525 | 687 | 15,788 | 1,063 | ||||||||||||||||||
U.S. corporate private securities | 4,880 | 227 | 998 | 83 | 5,878 | 310 | ||||||||||||||||||
Foreign corporate public securities | 2,545 | 125 | 2,077 | 256 | 4,622 | 381 | ||||||||||||||||||
Foreign corporate private securities | 4,358 | 251 | 4,411 | 468 | 8,769 | 719 | ||||||||||||||||||
Asset-backed securities | 4,587 | 90 | 3,082 | 106 | 7,669 | 196 | ||||||||||||||||||
Commercial mortgage-backed securities | 698 | 3 | 485 | 4 | 1,183 | 7 | ||||||||||||||||||
Residential mortgage-backed securities | 65 | 0 | 155 | 2 | 220 | 2 | ||||||||||||||||||
Total | $ | 25,102 | $ | 1,085 | $ | 20,396 | $ | 1,666 | $ | 45,498 | $ | 2,751 | ||||||||||||
Equity securities, available-for-sale | $ | 1,462 | $ | 115 | $ | 6 | $ | 1 | $ | 1,468 | $ | 116 |
(1) | Includes $50 million of fair value and $2 million of gross unrealized losses at March 31, 2016, on securities classified as held-to-maturity, a portion of which is not reflected in AOCI. |
December 31, 2015 | ||||||||||||||||||||||||
Less than twelve months | Twelve months or more | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Fixed maturities(1) | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 3,068 | $ | 19 | $ | 0 | $ | 0 | $ | 3,068 | $ | 19 | ||||||||||||
Obligations of U.S. states and their political subdivisions | 1,391 | 40 | 7 | 1 | 1,398 | 41 | ||||||||||||||||||
Foreign government bonds | 1,925 | 82 | 411 | 65 | 2,336 | 147 | ||||||||||||||||||
U.S. corporate public securities | 24,642 | 1,396 | 3,455 | 559 | 28,097 | 1,955 | ||||||||||||||||||
U.S. corporate private securities | 6,996 | 266 | 802 | 93 | 7,798 | 359 | ||||||||||||||||||
Foreign corporate public securities | 5,985 | 288 | 1,584 | 333 | 7,569 | 621 | ||||||||||||||||||
Foreign corporate private securities | 6,199 | 340 | 3,917 | 654 | 10,116 | 994 | ||||||||||||||||||
Asset-backed securities | 4,342 | 33 | 3,138 | 88 | 7,480 | 121 | ||||||||||||||||||
Commercial mortgage-backed securities | 3,888 | 63 | 473 | 7 | 4,361 | 70 | ||||||||||||||||||
Residential mortgage-backed securities | 558 | 4 | 119 | 2 | 677 | 6 | ||||||||||||||||||
Total | $ | 58,994 | $ | 2,531 | $ | 13,906 | $ | 1,802 | $ | 72,900 | $ | 4,333 | ||||||||||||
Equity securities, available-for-sale | $ | 1,862 | $ | 142 | $ | 11 | $ | 1 | $ | 1,873 | $ | 143 |
(1) | Includes $0 million of fair value and $0 million of gross unrealized losses at December 31, 2015, on securities classified as held-to-maturity, which is not reflected in AOCI. |
March 31, 2016 | |||||||||||||||||||
Remaining Contractual Maturities of the Agreements | |||||||||||||||||||
Overnight & Continuous | Up to 30 Days | 30 to 90 Days | Greater than 90 Days | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 1,705 | $ | 5,364 | $ | 361 | $ | 0 | $ | 7,430 | |||||||||
Obligations of U.S. states and their political subdivisions | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign government bonds | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
U.S. corporate public securities | 12 | 0 | 0 | 0 | 12 | ||||||||||||||
U.S. corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign corporate public securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Commercial mortgage-backed securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Residential mortgage-backed securities | 89 | 826 | 0 | 0 | 915 | ||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Total repurchase agreements | $ | 1,806 | $ | 6,190 | $ | 361 | $ | 0 | $ | 8,357 |
December 31, 2015 | |||||||||||||||||||
Remaining Contractual Maturities of the Agreements | |||||||||||||||||||
Overnight & Continuous | Up to 30 Days | 30 to 90 Days | Greater than 90 Days | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 1,991 | $ | 4,513 | $ | 253 | $ | 0 | $ | 6,757 | |||||||||
Obligations of U.S. states and their political subdivisions | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign government bonds | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
U.S. corporate public securities | 11 | 0 | 0 | 0 | 11 | ||||||||||||||
U.S. corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign corporate public securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Commercial mortgage-backed securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Residential mortgage-backed securities | 169 | 945 | 0 | 0 | 1,114 | ||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Total repurchase agreements | $ | 2,171 | $ | 5,458 | $ | 253 | $ | 0 | $ | 7,882 |
March 31, 2016 | |||||||||||||||||||
Remaining Contractual Maturities of the Agreements | |||||||||||||||||||
Overnight & Continuous | Up to 30 Days | 30 to 90 Days | Greater than 90 Days | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 32 | $ | 0 | $ | 0 | $ | 0 | $ | 32 | |||||||||
Obligations of U.S. states and their political subdivisions | 10 | 0 | 0 | 0 | 10 | ||||||||||||||
Foreign government bonds | 199 | 0 | 0 | 0 | 199 | ||||||||||||||
U.S. corporate public securities | 2,038 | 75 | 0 | 0 | 2,113 | ||||||||||||||
U.S. corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign corporate public securities | 634 | 71 | 0 | 0 | 705 | ||||||||||||||
Foreign corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Commercial mortgage-backed securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Residential mortgage-backed securities | 0 | 91 | 0 | 0 | 91 | ||||||||||||||
Equity securities | 902 | 0 | 0 | 0 | 902 | ||||||||||||||
Total securities lending transactions | $ | 3,815 | $ | 237 | $ | 0 | $ | 0 | $ | 4,052 |
December 31, 2015 | |||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight & Continuous | Up to 30 Days | 30 to 90 Days | Greater than 90 Days | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 94 | $ | 0 | $ | 0 | $ | 0 | $ | 94 | |||||||||
Obligations of U.S. states and their political subdivisions | 4 | 0 | 0 | 0 | 4 | ||||||||||||||
Foreign government bonds | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
U.S. corporate public securities | 1,401 | 86 | 0 | 0 | 1,487 | ||||||||||||||
U.S. corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign corporate public securities | 579 | 50 | 0 | 0 | 629 | ||||||||||||||
Foreign corporate private securities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Asset-backed securities | 241 | 0 | 0 | 0 | 241 | ||||||||||||||
Commercial mortgage-backed securities | 8 | 0 | 0 | 0 | 8 | ||||||||||||||
Residential mortgage-backed securities | 0 | 97 | 0 | 0 | 97 | ||||||||||||||
Equity securities | 936 | 0 | 0 | 0 | 936 | ||||||||||||||
Total securities lending transactions | $ | 3,263 | $ | 233 | $ | 0 | $ | 0 | $ | 3,496 |
Consolidated VIEs for Which the Company is the Investment Manager | Other Consolidated VIEs | ||||||||||||||
March 31, 2016(1) | December 31, 2015 | March 31, 2016 | December 31, 2015 | ||||||||||||
(in millions) | |||||||||||||||
Fixed maturities, available-for-sale | $ | 41 | $ | 0 | $ | 279 | $ | 179 | |||||||
Fixed maturities, held-to-maturity | 84 | 0 | 813 | 760 | |||||||||||
Trading account assets supporting insurance liabilities | 0 | 0 | 10 | 10 | |||||||||||
Other trading account assets | 3,619 | 9,536 | 0 | 0 | |||||||||||
Commercial mortgage and other loans | 431 | 0 | 300 | 300 | |||||||||||
Other long-term investments | 190 | 0 | 139 | 155 | |||||||||||
Cash and cash equivalents | 142 | 337 | 1 | 1 | |||||||||||
Accrued investment income | 23 | 56 | 3 | 3 | |||||||||||
Other assets | 457 | 324 | 20 | 3 | |||||||||||
Total assets of consolidated VIEs | $ | 4,987 | $ | 10,253 | $ | 1,565 | $ | 1,411 | |||||||
Notes issued by consolidated VIEs | $ | 2,946 | $ | 8,597 | $ | 0 | $ | 0 | |||||||
Other liabilities | 118 | 674 | 14 | 3 | |||||||||||
Total liabilities of consolidated VIEs | $ | 3,064 | $ | 9,271 | $ | 14 | $ | 3 |
(1) | As a result of the adoption of the new accounting guidance ASU 2015-02 effective January 1, 2016, total assets of consolidated VIEs reflects $1,212 million related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Closed Block liabilities | |||||||
Future policy benefits | $ | 49,417 | $ | 49,538 | |||
Policyholders’ dividends payable | 976 | 945 | |||||
Policyholders’ dividend obligation | 5,252 | 4,509 | |||||
Policyholders’ account balances | 5,233 | 5,250 | |||||
Other Closed Block liabilities | 4,858 | 4,171 | |||||
Total Closed Block liabilities | 65,736 | 64,413 | |||||
Closed Block assets | |||||||
Fixed maturities, available-for-sale, at fair value | 39,197 | 37,584 | |||||
Other trading account assets, at fair value | 295 | 288 | |||||
Equity securities, available-for-sale, at fair value | 2,573 | 2,726 | |||||
Commercial mortgage and other loans | 9,695 | 9,770 | |||||
Policy loans | 4,763 | 4,790 | |||||
Other long-term investments | 2,942 | 2,921 | |||||
Short-term investments | 645 | 1,467 | |||||
Total investments | 60,110 | 59,546 | |||||
Cash and cash equivalents | 1,861 | 1,036 | |||||
Accrued investment income | 525 | 506 | |||||
Other Closed Block assets | 384 | 458 | |||||
Total Closed Block assets | 62,880 | 61,546 | |||||
Excess of reported Closed Block liabilities over Closed Block assets | 2,856 | 2,867 | |||||
Portion of above representing accumulated other comprehensive income: | |||||||
Net unrealized investment gains (losses) | 3,794 | 2,800 | |||||
Allocated to policyholder dividend obligation | (3,809 | ) | (2,815 | ) | |||
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ | 2,841 | $ | 2,852 |
Three Months Ended March 31, 2016 | |||
(in millions) | |||
Balance, January 1 | $ | 4,509 | |
Impact from earnings allocable to policyholder dividend obligation | (252 | ) | |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 995 | ||
Balance, March 31 | $ | 5,252 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Revenues | |||||||
Premiums | $ | 622 | $ | 634 | |||
Net investment income | 618 | 709 | |||||
Realized investment gains (losses), net | (98 | ) | 373 | ||||
Other income (loss) | (7 | ) | 3 | ||||
Total Closed Block revenues | 1,135 | 1,719 | |||||
Benefits and Expenses | |||||||
Policyholders’ benefits | 807 | 821 | |||||
Interest credited to policyholders’ account balances | 33 | 33 | |||||
Dividends to policyholders | 247 | 764 | |||||
General and administrative expenses | 103 | 108 | |||||
Total Closed Block benefits and expenses | 1,190 | 1,726 | |||||
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued operations | (55 | ) | (7 | ) | |||
Income tax expense (benefit) | (66 | ) | (18 | ) | |||
Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued operations | 11 | 11 | |||||
Income (loss) from discontinued operations, net of taxes | 0 | 0 | |||||
Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued operations | $ | 11 | $ | 11 |
Common Stock | ||||||||
Issued | Held In Treasury | Outstanding | ||||||
(in millions) | ||||||||
Balance, December 31, 2015 | 660.1 | 213.0 | 447.1 | |||||
Common Stock issued | 0.0 | 0.0 | 0.0 | |||||
Common Stock acquired | 0.0 | 5.4 | (5.4 | ) | ||||
Stock-based compensation programs(1) | 0.0 | (1.4 | ) | 1.4 | ||||
Balance, March 31, 2016 | 660.1 | 217.0 | 443.1 |
(1) | Represents net shares issued from treasury pursuant to the Company’s stock-based compensation program. |
Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. | |||||||||||||||
Foreign Currency Translation Adjustment | Net Unrealized Investment Gains (Losses)(1) | Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||
(in millions) | |||||||||||||||
Balance, December 31, 2015 | $ | (1,087 | ) | $ | 15,773 | $ | (2,401 | ) | $ | 12,285 | |||||
Change in OCI before reclassifications | 727 | 9,389 | (19 | ) | 10,097 | ||||||||||
Amounts reclassified from AOCI | 6 | 24 | 53 | 83 | |||||||||||
Income tax benefit (expense) | (176 | ) | (3,211 | ) | (12 | ) | (3,399 | ) | |||||||
Balance, March 31, 2016 | $ | (530 | ) | $ | 21,975 | $ | (2,379 | ) | $ | 19,066 |
Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. | |||||||||||||||
Foreign Currency Translation Adjustment | Net Unrealized Investment Gains (Losses)(1) | Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||
(in millions) | |||||||||||||||
Balance, December 31, 2014 | $ | (975 | ) | $ | 19,251 | $ | (2,226 | ) | $ | 16,050 | |||||
Change in OCI before reclassifications | (28 | ) | 3,194 | 3 | 3,169 | ||||||||||
Amounts reclassified from AOCI | (1 | ) | (704 | ) | 49 | (656 | ) | ||||||||
Income tax benefit (expense) | 22 | (815 | ) | (18 | ) | (811 | ) | ||||||||
Balance, March 31, 2015 | $ | (982 | ) | $ | 20,926 | $ | (2,192 | ) | $ | 17,752 |
(1) | Includes cash flow hedges of $896 million and $1,165 million as of March 31, 2016 and December 31, 2015, respectively, and $1,005 million and $206 million as of March 31, 2015 and December 31, 2014, respectively. |
Three Months Ended March 31, | Affected line item in Consolidated Statement of Operations | |||||||||
2016 | 2015 | |||||||||
(in millions) | ||||||||||
Amounts reclassified from AOCI(1)(2): | ||||||||||
Foreign currency translation adjustment: | ||||||||||
Foreign currency translation adjustments | $ | (6 | ) | $ | 1 | Realized investment gains (losses), net | ||||
Total foreign currency translation adjustment | (6 | ) | 1 | |||||||
Net unrealized investment gains (losses): | ||||||||||
Cash flow hedges—Interest Rate | (1 | ) | (1 | ) | (3) | |||||
Cash flow hedges—Currency/Interest rate | 22 | 116 | (3) | |||||||
Net unrealized investment gains (losses) on available-for-sale securities | (45 | ) | 589 | |||||||
Total net unrealized investment gains (losses) | (24 | ) | 704 | (4) | ||||||
Amortization of defined benefit pension items: | ||||||||||
Prior service cost | 2 | 3 | (5) | |||||||
Actuarial gain (loss) | (55 | ) | (52 | ) | (5) | |||||
Total amortization of defined benefit pension items | (53 | ) | (49 | ) | ||||||
Total reclassifications for the period | $ | (83 | ) | $ | 656 |
(1) | All amounts are shown before tax. |
(2) | Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. |
(3) | See Note 14 for additional information on cash flow hedges. |
(4) | See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends. |
(5) | See Note 10 for information on employee benefit plans. |
Net Unrealized Gains (Losses) on Investments | DAC, DSI and VOBA | Future Policy Benefits and Policyholders’ Account Balances | Policyholders’ Dividends | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance, December 31, 2015 | $ | 234 | $ | 6 | $ | 14 | $ | (31 | ) | $ | (77 | ) | $ | 146 | |||||||||
Net investment gains (losses) on investments arising during the period | (25 | ) | 9 | (16 | ) | ||||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | 1 | 0 | 1 | ||||||||||||||||||||
Reclassification adjustment for OTTI losses excluded from net income(1) | (11 | ) | 4 | (7 | ) | ||||||||||||||||||
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | 1 | 0 | 1 | ||||||||||||||||||||
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 6 | (2 | ) | 4 | |||||||||||||||||||
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 16 | (6 | ) | 10 | |||||||||||||||||||
Balance, March 31, 2016 | $ | 199 | $ | 7 | $ | 20 | $ | (15 | ) | $ | (72 | ) | $ | 139 |
(1) | Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Net Unrealized Gains (Losses) on Investments(1) | DAC, DSI and VOBA | Future Policy Benefits and Policyholders’ Account Balances | Policyholders’ Dividends | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance, December 31, 2015 | $ | 28,240 | $ | (760 | ) | $ | (1,082 | ) | $ | (2,802 | ) | $ | (7,969 | ) | $ | 15,627 | |||||||
Net investment gains (losses) on investments arising during the period | 11,310 | (3,852 | ) | 7,458 | |||||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | 23 | (8 | ) | 15 | |||||||||||||||||||
Reclassification adjustment for OTTI losses excluded from net income(2) | 11 | (4 | ) | 7 | |||||||||||||||||||
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | (709 | ) | 231 | (478 | ) | ||||||||||||||||||
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (192 | ) | 62 | (130 | ) | ||||||||||||||||||
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (1,018 | ) | 355 | (663 | ) | ||||||||||||||||||
Balance, March 31, 2016 | $ | 39,584 | $ | (1,469 | ) | $ | (1,274 | ) | $ | (3,820 | ) | $ | (11,185 | ) | $ | 21,836 |
(1) | Includes cash flow hedges. See Note 14 for information on cash flow hedges. |
(2) | Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Three Months Ended March 31, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Income | Weighted Average Shares | Per Share Amount | Income | Weighted Average Shares | Per Share Amount | ||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||
Basic earnings per share | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 1,369 | $ | 2,046 | |||||||||||||||||
Less: Income (loss) attributable to noncontrolling interests | 33 | 10 | |||||||||||||||||||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 15 | 19 | |||||||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock | $ | 1,321 | 445.3 | $ | 2.97 | $ | 2,017 | 454.3 | $ | 4.44 | |||||||||||
Effect of dilutive securities and compensation programs | |||||||||||||||||||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | $ | 15 | $ | 19 | |||||||||||||||||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | 14 | 19 | |||||||||||||||||||
Stock options | 1.4 | 2.3 | |||||||||||||||||||
Deferred and long-term compensation programs | 0.9 | 0.9 | |||||||||||||||||||
Exchangeable Surplus Notes | 4 | 5.6 | 4 | 5.5 | |||||||||||||||||
Diluted earnings per share | |||||||||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock | $ | 1,326 | 453.2 | $ | 2.93 | $ | 2,021 | 463.0 | $ | 4.37 |
Three Months Ended March 31, | |||||||||||||
2016 | 2015 | ||||||||||||
Shares | Exercise Price Per Share | Shares | Exercise Price Per Share | ||||||||||
(in millions, except per share amounts, based on weighted average) | |||||||||||||
Antidilutive stock options based on application of the treasury stock method | 3.9 | $ | 83.25 | 2.7 | $ | 87.33 | |||||||
Antidilutive stock options due to loss from continuing operations available to holders of Common Stock | 0.0 | 0.0 | |||||||||||
Antidilutive shares due to loss from continuing operations available to holders of Common Stock | 0.0 | 0.0 | |||||||||||
Total antidilutive stock options and shares | 3.9 | 2.7 |
March 31, 2016 | December 31, 2015 | ||||||
($ in millions) | |||||||
Commercial paper: | |||||||
Prudential Financial | $ | 72 | $ | 80 | |||
Prudential Funding, LLC | 397 | 384 | |||||
Subtotal commercial paper | 469 | 464 | |||||
Current portion of long-term debt | 500 | 752 | |||||
Total short-term debt(1) | $ | 969 | $ | 1,216 | |||
Supplemental short-term debt information: | |||||||
Portion of commercial paper borrowings due overnight | $ | 230 | $ | 331 | |||
Daily average commercial paper outstanding | $ | 883 | $ | 1,127 | |||
Weighted average maturity of outstanding commercial paper, in days | 14 | 10 | |||||
Weighted average interest rate on outstanding short-term debt(2) | 0.41 | % | 0.16 | % |
(1) | Includes Prudential Financial debt of $572 million and $831 million at March 31, 2016 and December 31, 2015, respectively. |
(2) | Excludes the current portion of long-term debt. |
Borrowers | Original Term | Expiration Date | Capacity | Amount Outstanding | |||||||
($ in millions) | |||||||||||
Prudential Financial and Prudential Funding | 5 years | Apr 2020 | $ | 4,000 | $ | 0 |
Three Months Ended March 31, | |||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Components of net periodic (benefit) cost | |||||||||||||||
Service cost | $ | 62 | $ | 61 | $ | 5 | $ | 5 | |||||||
Interest cost | 125 | 117 | 23 | 21 | |||||||||||
Expected return on plan assets | (189 | ) | (194 | ) | (26 | ) | (29 | ) | |||||||
Amortization of prior service cost | (1 | ) | (2 | ) | (1 | ) | (1 | ) | |||||||
Amortization of actuarial (gain) loss, net | 45 | 42 | 10 | 10 | |||||||||||
Settlements | 1 | 1 | 0 | 0 | |||||||||||
Special termination benefits | 0 | 2 | 0 | 0 | |||||||||||
Net periodic (benefit) cost | $ | 43 | $ | 27 | $ | 11 | $ | 6 |
• | realized investment gains (losses), net, and related charges and adjustments; |
• | net investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes; |
• | the contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down status, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP; and |
• | equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Net gains (losses) from(1): | |||||||
Terminated hedges of foreign currency earnings | $ | 36 | $ | 81 | |||
Current period yield adjustments | $ | 127 | $ | 123 | |||
Principal source of earnings | $ | 10 | $ | 24 |
(1) | In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to divested businesses as results of “Divested businesses,” discussed below. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Net gains (losses) from: | |||||||
Other trading account assets | $ | (22 | ) | $ | (58 | ) | |
Foreign currency exchange movements | $ | (321 | ) | $ | 25 | ||
Other activities | $ | 3 | $ | 3 |
• | The portion of the amortization of DAC, VOBA, unearned revenue reserves and DSI for certain products that is related to net realized investment gains (losses). |
• | Policyholder dividends and interest credited to policyholders’ account balances that relate to certain life policies that pass back certain realized investment gains (losses) to the policyholder, and reserves for future policy benefits for certain policies that are affected by net realized investment gains (losses). |
• | Market value adjustments paid or received upon a contractholder’s surrender of certain of the Company’s annuity products as these amounts mitigate the net realized investment gains or losses incurred upon the disposition of the underlying invested assets. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Adjusted Operating Income before income taxes by Segment: | |||||||
Individual Annuities | $ | 328 | $ | 529 | |||
Retirement | 219 | 284 | |||||
Asset Management | 165 | 205 | |||||
Total U.S. Retirement Solutions and Investment Management division | 712 | 1,018 | |||||
Individual Life | 120 | 116 | |||||
Group Insurance | 26 | 30 | |||||
Total U.S. Individual Life and Group Insurance division | 146 | 146 | |||||
International Insurance | 779 | 834 | |||||
Total International Insurance division | 779 | 834 | |||||
Corporate and Other operations | (312 | ) | (253 | ) | |||
Total Corporate and Other | (312 | ) | (253 | ) | |||
Total adjusted operating income before income taxes | 1,325 | 1,745 | |||||
Reconciling items: | |||||||
Realized investment gains (losses), net, and related adjustments | 1,418 | 1,662 | |||||
Charges related to realized investment gains (losses), net | (1,080 | ) | (611 | ) | |||
Investment gains (losses) on trading account assets supporting insurance liabilities, net | 216 | 83 | |||||
Change in experience-rated contractholder liabilities due to asset value changes | (130 | ) | (197 | ) | |||
Divested businesses: | |||||||
Closed Block division | (73 | ) | (22 | ) | |||
Other divested businesses | 31 | 75 | |||||
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | 25 | 13 | |||||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 1,732 | $ | 2,748 |
Revenue | Total Assets | ||||||||||||||
Three Months Ended March 31, | March 31, 2016 | December 31, 2015(1) | |||||||||||||
2016 | 2015 | ||||||||||||||
(in millions) | |||||||||||||||
Individual Annuities | $ | 1,109 | $ | 1,187 | $ | 172,188 | $ | 169,447 | |||||||
Retirement | 1,893 | 2,478 | 168,798 | 171,183 | |||||||||||
Asset Management | 706 | 733 | 48,655 | 54,491 | |||||||||||
Total U.S. Retirement Solutions and Investment Management division | 3,708 | 4,398 | 389,641 | 395,121 | |||||||||||
Individual Life | 1,366 | 1,351 | 74,469 | 71,856 | |||||||||||
Group Insurance | 1,320 | 1,277 | 40,954 | 39,344 | |||||||||||
Total U.S. Individual Life and Group Insurance division | 2,686 | 2,628 | 115,423 | 111,200 | |||||||||||
International Insurance | 5,044 | 4,906 | 193,435 | 175,153 | |||||||||||
Total International Insurance division | 5,044 | 4,906 | 193,435 | 175,153 | |||||||||||
Corporate and Other operations | (146 | ) | (125 | ) | 11,012 | 13,654 | |||||||||
Total Corporate and Other | (146 | ) | (125 | ) | 11,012 | 13,654 | |||||||||
Total | 11,292 | 11,807 | 709,511 | 695,128 | |||||||||||
Reconciling items: | |||||||||||||||
Realized investment gains (losses), net, and related adjustments | 1,418 | 1,662 | |||||||||||||
Charges related to realized investment gains (losses), net | 88 | 54 | |||||||||||||
Investment gains (losses) on trading account assets supporting insurance liabilities, net | 216 | 83 | |||||||||||||
Divested businesses: | |||||||||||||||
Closed Block division | 1,129 | 1,719 | 63,484 | 62,127 | |||||||||||
Other divested businesses | 194 | 224 | |||||||||||||
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | (8 | ) | 3 | ||||||||||||
Total per Unaudited Interim Consolidated Financial Statements | $ | 14,329 | $ | 15,552 | $ | 772,995 | $ | 757,255 |
(1) | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Asset Management segment intersegment revenues | $ | 170 | $ | 178 |
Major Tax Jurisdiction | Open Tax Years |
United States | 2007 – 2015 |
Japan | Fiscal years ended March 31, 2011 – 2016 |
Korea | Fiscal years ended March 31, 2011 – 2013, the periods ended December 31, 2014 and 2015 |
As of March 31, 2016 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 0 | $ | 22,044 | $ | 0 | $ | $ | 22,044 | ||||||||||
Obligations of U.S. states and their political subdivisions | 0 | 9,270 | 6 | 9,276 | |||||||||||||||
Foreign government bonds | 0 | 96,354 | 122 | 96,476 | |||||||||||||||
U.S. corporate public securities | 0 | 80,391 | 214 | 80,605 | |||||||||||||||
U.S. corporate private securities(7) | 0 | 29,442 | 1,170 | 30,612 | |||||||||||||||
Foreign corporate public securities | 0 | 29,252 | 97 | 29,349 | |||||||||||||||
Foreign corporate private securities | 0 | 19,055 | 593 | 19,648 | |||||||||||||||
Asset-backed securities(8) | 0 | 5,977 | 4,568 | 10,545 | |||||||||||||||
Commercial mortgage-backed securities | 0 | 10,993 | 11 | 11,004 | |||||||||||||||
Residential mortgage-backed securities | 0 | 4,777 | 193 | 4,970 | |||||||||||||||
Subtotal | 0 | 307,555 | 6,974 | 314,529 | |||||||||||||||
Trading account assets(2): | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | 0 | 368 | 0 | 368 | |||||||||||||||
Obligations of U.S. states and their political subdivisions | 0 | 199 | 0 | 199 | |||||||||||||||
Foreign government bonds | 7 | 774 | 36 | 817 | |||||||||||||||
Corporate securities | 1 | 17,824 | 228 | 18,053 | |||||||||||||||
Asset-backed securities(8) | 0 | 825 | 611 | 1,436 | |||||||||||||||
Commercial mortgage-backed securities | 0 | 1,931 | 1 | 1,932 | |||||||||||||||
Residential mortgage-backed securities | 0 | 1,464 | 4 | 1,468 | |||||||||||||||
Equity securities | 1,463 | 210 | 581 | 2,254 | |||||||||||||||
All other(3) | 92 | 20,484 | 1 | (17,705 | ) | 2,872 | |||||||||||||
Subtotal | 1,563 | 44,079 | 1,462 | (17,705 | ) | 29,399 | |||||||||||||
Equity securities, available-for-sale | 5,933 | 3,175 | 292 | 9,400 | |||||||||||||||
Commercial mortgage and other loans | 0 | 286 | 0 | 286 | |||||||||||||||
Other long-term investments | 45 | 120 | 19 | (12 | ) | 172 | |||||||||||||
Short-term investments | 1,491 | 1,612 | 0 | 3,103 | |||||||||||||||
Cash equivalents | 4,814 | 13,595 | 0 | 18,409 | |||||||||||||||
Other assets | 0 | 9 | 36 | 45 | |||||||||||||||
Subtotal excluding separate account assets | 13,846 | 370,431 | 8,783 | (17,717 | ) | 375,343 | |||||||||||||
Separate account assets(4) | 38,099 | 215,306 | 2,168 | 255,573 | |||||||||||||||
Total assets | $ | 51,945 | $ | 585,737 | $ | 10,951 | $ | (17,717 | ) | $ | 630,916 | ||||||||
Future policy benefits(5) | $ | 0 | $ | 0 | $ | 11,069 | $ | 0 | $ | 11,069 | |||||||||
Other liabilities | 2 | 8,010 | 2 | (7,577 | ) | 437 | |||||||||||||
Notes issued by consolidated VIEs | 0 | 0 | 2,946 | 2,946 | |||||||||||||||
Total liabilities | $ | 2 | $ | 8,010 | $ | 14,017 | $ | (7,577 | ) | $ | 14,452 |
As of December 31, 2015 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 0 | $ | 18,517 | $ | 0 | $ | $ | 18,517 | ||||||||||
Obligations of U.S. states and their political subdivisions | 0 | 8,789 | 6 | 8,795 | |||||||||||||||
Foreign government bonds | 0 | 83,590 | 123 | 83,713 | |||||||||||||||
U.S. corporate public securities | 0 | 75,163 | 205 | 75,368 | |||||||||||||||
U.S. corporate private securities(7) | 0 | 29,750 | 694 | 30,444 | |||||||||||||||
Foreign corporate public securities | 0 | 28,510 | 44 | 28,554 | |||||||||||||||
Foreign corporate private securities | 0 | 18,859 | 279 | 19,138 | |||||||||||||||
Asset-backed securities(8) | 0 | 6,178 | 4,048 | 10,226 | |||||||||||||||
Commercial mortgage-backed securities | 0 | 10,424 | 38 | 10,462 | |||||||||||||||
Residential mortgage-backed securities | 0 | 4,923 | 183 | 5,106 | |||||||||||||||
Subtotal | 0 | 284,703 | 5,620 | 290,323 | |||||||||||||||
Trading account assets(2): | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | 0 | 288 | 0 | 288 | |||||||||||||||
Obligations of U.S. states and their political subdivisions | 0 | 189 | 0 | 189 | |||||||||||||||
Foreign government bonds | 0 | 697 | 34 | 731 | |||||||||||||||
Corporate securities | 0 | 23,125 | 203 | 23,328 | |||||||||||||||
Asset-backed securities(8) | 0 | 749 | 596 | 1,345 | |||||||||||||||
Commercial mortgage-backed securities | 0 | 1,870 | 3 | 1,873 | |||||||||||||||
Residential mortgage-backed securities | 0 | 1,509 | 4 | 1,513 | |||||||||||||||
Equity securities | 1,542 | 221 | 589 | 2,352 | |||||||||||||||
All other(3) | 630 | 14,173 | 5 | (11,447 | ) | 3,361 | |||||||||||||
Subtotal | 2,172 | 42,821 | 1,434 | (11,447 | ) | 34,980 | |||||||||||||
Equity securities, available-for-sale | 6,011 | 2,997 | 266 | 9,274 | |||||||||||||||
Commercial mortgage and other loans | 0 | 274 | 0 | 274 | |||||||||||||||
Other long-term investments(6) | 13 | 130 | 49 | (10 | ) | 182 | |||||||||||||
Short-term investments | 6,776 | 711 | 0 | 7,487 | |||||||||||||||
Cash equivalents | 4,834 | 9,374 | 0 | 14,208 | |||||||||||||||
Other assets | 0 | 9 | 7 | 16 | |||||||||||||||
Subtotal excluding separate account assets | 19,806 | 341,019 | 7,376 | (11,457 | ) | 356,744 | |||||||||||||
Separate account assets(4)(6) | 43,076 | 214,838 | 1,995 | 259,909 | |||||||||||||||
Total assets | $ | 62,882 | $ | 555,857 | $ | 9,371 | $ | (11,457 | ) | $ | 616,653 | ||||||||
Future policy benefits(5) | $ | 0 | $ | 0 | $ | 8,434 | $ | $ | 8,434 | ||||||||||
Other liabilities | 1 | 5,306 | 2 | (5,276 | ) | 33 | |||||||||||||
Notes issued by consolidated VIEs | 0 | 0 | 8,597 | 8,597 | |||||||||||||||
Total liabilities | $ | 1 | $ | 5,306 | $ | 17,033 | $ | (5,276 | ) | $ | 17,064 |
(1) | “Netting” amounts represent cash collateral of $10,140 million and $6,181 million as of March 31, 2016 and December 31, 2015, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. |
(2) | Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets.” |
(3) | Level 1 represents cash equivalents and short term investments. All other amounts primarily represent derivative assets. |
(4) | Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. |
(5) | As of March 31, 2016, the net embedded derivative liability position of $11.1 billion includes $0.7 billion of embedded derivatives in an asset position and $11.8 billion of embedded derivatives in a liability position. As of December 31, 2015, the net embedded derivative liability position of $8.4 billion includes $0.7 billion of embedded derivatives in an asset position and $9.1 billion of embedded derivatives in a liability position. |
(6) | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. |
(7) | Excludes notes with fair value of $1,050 million and $1,039 million as of March 31, 2016 and December 31, 2015, respectively, which have been offset with the associated payables under a netting agreement. |
(8) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
As of March 31, 2016 | |||||||||||
Internal(1) | External(2) | Total | |||||||||
(in millions) | |||||||||||
Obligations of U.S. states and their political subdivisions | $ | 6 | $ | 0 | $ | 6 | |||||
Foreign government bonds | 0 | 158 | 158 | ||||||||
Corporate securities(3) | 1,901 | 401 | 2,302 | ||||||||
Asset-backed securities(4) | 156 | 5,023 | 5,179 | ||||||||
Commercial mortgage-backed securities | 4 | 8 | 12 | ||||||||
Residential mortgage-backed securities | 37 | 160 | 197 | ||||||||
Equity securities | 105 | 768 | 873 | ||||||||
Other long-term investments | 9 | 10 | 19 | ||||||||
Other assets | 37 | 0 | 37 | ||||||||
Subtotal excluding separate account assets | 2,255 | 6,528 | 8,783 | ||||||||
Separate account assets | 1,186 | 982 | 2,168 | ||||||||
Total assets | $ | 3,441 | $ | 7,510 | $ | 10,951 | |||||
Future policy benefits | $ | 11,069 | $ | 0 | $ | 11,069 | |||||
Other liabilities | 2 | 0 | 2 | ||||||||
Notes issued by consolidated VIEs | 0 | 2,946 | 2,946 | ||||||||
Total liabilities | $ | 11,071 | $ | 2,946 | $ | 14,017 |
As of December 31, 2015 | |||||||||||
Internal(1) | External(2) | Total | |||||||||
(in millions) | |||||||||||
Obligations of U.S. states and their political subdivisions | $ | 6 | $ | 0 | $ | 6 | |||||
Foreign government bonds | 0 | 157 | 157 | ||||||||
Corporate securities(3) | 1,085 | 340 | 1,425 | ||||||||
Asset-backed securities(4) | 149 | 4,495 | 4,644 | ||||||||
Commercial mortgage-backed securities | 5 | 36 | 41 | ||||||||
Residential mortgage-backed securities | 37 | 150 | 187 | ||||||||
Equity securities | 63 | 792 | 855 | ||||||||
Other long-term investments(5) | 39 | 10 | 49 | ||||||||
Other assets | 12 | 0 | 12 | ||||||||
Subtotal excluding separate account assets | 1,396 | 5,980 | 7,376 | ||||||||
Separate account assets(5) | 1,024 | 971 | 1,995 | ||||||||
Total assets | $ | 2,420 | $ | 6,951 | $ | 9,371 | |||||
Future policy benefits | $ | 8,434 | $ | 0 | $ | 8,434 | |||||
Other liabilities | 2 | 0 | 2 | ||||||||
Notes issued by consolidated VIEs | 0 | 8,597 | 8,597 | ||||||||
Total liabilities | $ | 8,436 | $ | 8,597 | $ | 17,033 |
(1) | Represents valuations reflecting both internally-derived and market inputs as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. |
(2) | Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. |
(3) | Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets. |
(4) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
(5) | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. |
As of March 31, 2016 | ||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value(1) | ||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Corporate securities(9) | $ | 1,901 | Discounted cash flow | Discount rate | 0.84% | - | 21.69% | 9.14% | Decrease | |||||||
Market comparables | EBITDA multiples(2) | 1.4X | - | 5.0X | 3.9X | Increase | ||||||||||
Liquidation | Liquidation value | 15.91% | - | 29.13% | 17.74% | Increase | ||||||||||
Liabilities: | ||||||||||||||||
Future policy benefits(3) | $ | 11,069 | Discounted cash flow | Lapse rate(4) | 0% | - | 14% | Decrease | ||||||||
NPR spread(5) | 0.44% | - | 2.07% | Decrease | ||||||||||||
Utilization rate(6) | 56% | - | 96% | Increase | ||||||||||||
Withdrawal rate(7) | 74% | - | 100% | Increase | ||||||||||||
Mortality rate(8) | 0% | - | 14% | Decrease | ||||||||||||
Equity volatility curve | 16% | - | 28% | Increase |
As of December 31, 2015 | ||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value(1) | ||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Corporate securities(9) | $ | 1,085 | Discounted cash flow | Discount rate | 0.93% | - | 25% | 7.66% | Decrease | |||||||
Market comparables | EBITDA multiples(2) | 1.4X | - | 5.0X | 3.7X | Increase | ||||||||||
Liquidation | Liquidation value | 15.79% | - | 29.33% | 17.77% | Increase | ||||||||||
Liabilities: | ||||||||||||||||
Future policy benefits(3) | $ | 8,434 | Discounted cash flow | Lapse rate(4) | 0% | - | 14% | Decrease | ||||||||
NPR spread(5) | 0.06% | - | 1.76% | Decrease | ||||||||||||
Utilization rate(6) | 56% | - | 96% | Increase | ||||||||||||
Withdrawal rate(7) | 74% | - | 100% | Increase | ||||||||||||
Mortality rate(8) | 0% | - | 14% | Decrease | ||||||||||||
Equity volatility curve | 17% | - | 28% | Increase |
(1) | Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. |
(2) | Represents multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. |
(3) | Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. |
(4) | Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. |
(5) | To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. |
(6) | The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. |
(7) | The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder age, tax status and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%. |
(8) | Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. |
(9) | Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets. |
Three Months Ended March 31, 2016 | |||||||||||||||||||||||
Fixed Maturities Available-For-Sale | |||||||||||||||||||||||
U.S. States | Foreign Government | U.S. Corporate Public Securities | U.S. Corporate Private Securities | Foreign Corporate Public Securities | Foreign Corporate Private Securities | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fair Value, beginning of period | $ | 6 | $ | 123 | $ | 205 | $ | 694 | $ | 44 | $ | 279 | |||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||
Realized investment gains (losses), net | 0 | 0 | 0 | (83 | ) | 0 | (1 | ) | |||||||||||||||
Included in other comprehensive income (loss) | 0 | 1 | 2 | (40 | ) | 1 | (107 | ) | |||||||||||||||
Net investment income | 0 | 0 | 0 | 2 | 0 | 0 | |||||||||||||||||
Purchases | 0 | 0 | 1 | 9 | 24 | 27 | |||||||||||||||||
Sales | 0 | 0 | 0 | 0 | 0 | (4 | ) | ||||||||||||||||
Issuances | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Settlements | 0 | 0 | 0 | (27 | ) | 0 | (43 | ) | |||||||||||||||
Foreign currency translation | 0 | (2 | ) | 4 | 1 | 5 | 3 | ||||||||||||||||
Other(1) | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Transfers into Level 3(2) | 0 | 0 | 2 | 614 | 23 | 439 | |||||||||||||||||
Transfers out of Level 3(2) | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Fair Value, end of period | $ | 6 | $ | 122 | $ | 214 | $ | 1,170 | $ | 97 | $ | 593 | |||||||||||
Unrealized gains (losses) for assets still held(3): | |||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | $ | 0 | $ | (83 | ) | $ | 0 | $ | 0 |
Three Months Ended March 31, 2016 | |||||||||||
Fixed Maturities Available-For-Sale | |||||||||||
Asset- Backed(7) | Commercial Mortgage- Backed | Residential Mortgage- Backed | |||||||||
(in millions) | |||||||||||
Fair Value, beginning of period | $ | 4,048 | $ | 38 | $ | 183 | |||||
Total gains (losses) (realized/unrealized): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | 1 | 0 | 0 | ||||||||
Included in other comprehensive income (loss) | (44 | ) | 0 | 3 | |||||||
Net investment income | 4 | 0 | 0 | ||||||||
Purchases | 176 | 8 | 0 | ||||||||
Sales | 0 | (34 | ) | 0 | |||||||
Issuances | 0 | 0 | 0 | ||||||||
Settlements | (33 | ) | (1 | ) | (9 | ) | |||||
Foreign currency translation | 34 | 0 | 16 | ||||||||
Other(1) | 89 | 0 | 0 | ||||||||
Transfers into Level 3(2) | 850 | 0 | 0 | ||||||||
Transfers out of Level 3(2) | (557 | ) | 0 | 0 | |||||||
Fair Value, end of period | $ | 4,568 | $ | 11 | $ | 193 | |||||
Unrealized gains (losses) for assets still held(3): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | $ | 0 | |||||
Other income | $ | (1 | ) | $ | 0 | $ | 0 |
Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||
Trading Account Assets | |||||||||||||||||||||||||||
Foreign Government | Corporate | Asset- Backed(7) | Commercial Mortgage- Backed | Residential Mortgage- Backed | Equity | All Other Activity | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Fair Value, beginning of period | $ | 34 | $ | 203 | $ | 596 | $ | 3 | $ | 4 | $ | 589 | $ | 5 | |||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Other income | 0 | (10 | ) | (5 | ) | 0 | 0 | 2 | 0 | ||||||||||||||||||
Net investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Purchases | 2 | 3 | 18 | 0 | 0 | 1 | 0 | ||||||||||||||||||||
Sales | 0 | 0 | (1 | ) | 0 | 0 | (11 | ) | 0 | ||||||||||||||||||
Issuances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Settlements | 0 | (15 | ) | (1 | ) | 0 | 0 | (75 | ) | 0 | |||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 0 | 0 | 29 | 0 | ||||||||||||||||||||
Other(1) | 0 | (15 | ) | 17 | (2 | ) | 0 | 18 | (4 | ) | |||||||||||||||||
Transfers into Level 3(2) | 0 | 87 | 115 | 0 | 0 | 28 | 0 | ||||||||||||||||||||
Transfers out of Level 3(2) | 0 | (25 | ) | (128 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||
Fair Value, end of period | $ | 36 | $ | 228 | $ | 611 | $ | 1 | $ | 4 | $ | 581 | $ | 1 | |||||||||||||
Unrealized gains (losses) for assets still held(3): | |||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
Other income | $ | 0 | $ | (10 | ) | $ | (4 | ) | $ | 0 | $ | 0 | $ | 2 | $ | 0 |
Three Months Ended March 31, 2016 | |||||||||||
Equity Securities Available- For-Sale | Other Long-term Investments | Other Assets | |||||||||
(in millions) | |||||||||||
Fair Value, beginning of period | $ | 266 | $ | 49 | $ | 7 | |||||
Total gains (losses) (realized/unrealized): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | 1 | 0 | 25 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Included in other comprehensive income (loss) | 5 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Purchases | 24 | 0 | 4 | ||||||||
Sales | (13 | ) | 0 | 0 | |||||||
Issuances | 0 | 0 | 0 | ||||||||
Settlements | (13 | ) | 0 | 0 | |||||||
Foreign currency translation | 15 | 0 | 0 | ||||||||
Other(1) | 0 | (30 | ) | 0 | |||||||
Transfers into Level 3(2) | 7 | 0 | 0 | ||||||||
Transfers out of Level 3(2) | 0 | 0 | 0 | ||||||||
Fair Value, end of period | $ | 292 | $ | 19 | $ | 36 | |||||
Unrealized gains (losses) for assets still held(3): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | $ | 25 | |||||
Other income | $ | 0 | $ | 0 | $ | 0 |
Three Months Ended March 31, 2016 | |||||||||||||||
Separate Account Assets(4) | Future Policy Benefits | Other Liabilities | Notes Issued by Consolidated VIEs | ||||||||||||
(in millions) | |||||||||||||||
Fair Value, beginning of period | $ | 1,995 | $ | (8,434 | ) | $ | (2 | ) | $ | (8,597 | ) | ||||
Total gains (losses) (realized/unrealized): | |||||||||||||||
Included in earnings: | |||||||||||||||
Realized investment gains (losses), net | 1 | (2,380 | ) | 0 | 101 | ||||||||||
Other Income | 0 | 0 | 0 | (19 | ) | ||||||||||
Interest credited to policyholders’ account balances | (12 | ) | 0 | 0 | 0 | ||||||||||
Net investment income | 6 | 0 | 0 | 0 | |||||||||||
Purchases | 162 | 0 | 0 | 0 | |||||||||||
Sales | (60 | ) | 0 | 0 | 0 | ||||||||||
Issuances | 0 | (254 | ) | 0 | 0 | ||||||||||
Settlements | (33 | ) | 0 | 0 | 0 | ||||||||||
Foreign currency translation | 0 | (1 | ) | 0 | 0 | ||||||||||
Other(1) | 0 | 0 | 0 | 5,569 | |||||||||||
Transfers into Level 3(2) | 197 | 0 | 0 | 0 | |||||||||||
Transfers out of Level 3(2) | (88 | ) | 0 | 0 | 0 | ||||||||||
Fair Value, end of period | $ | 2,168 | $ | (11,069 | ) | $ | (2 | ) | $ | (2,946 | ) | ||||
Unrealized gains (losses) for assets/liabilities still held(3): | |||||||||||||||
Included in earnings: | |||||||||||||||
Realized investment gains (losses), net | $ | 0 | $ | (2,425 | ) | $ | 0 | $ | 101 | ||||||
Other income | $ | 0 | $ | 0 | $ | 0 | $ | (19 | ) | ||||||
Interest credited to policyholders’ account balances | $ | (12 | ) | $ | 0 | $ | 0 | $ | 0 |
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Fixed Maturities Available-For-Sale(5) | |||||||||||||||||||||||
U.S. States | Foreign Government | U.S. Corporate Public Securities | U.S. Corporate Private Securities | Foreign Corporate Public Securities | Foreign Corporate Private Securities | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fair Value, beginning of period | $ | 6 | $ | 2 | $ | 357 | $ | 523 | $ | 252 | $ | 171 | |||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||
Realized investment gains (losses), net | 0 | 0 | 0 | (3 | ) | 0 | 2 | ||||||||||||||||
Included in other comprehensive income (loss) | 0 | 0 | 1 | (3 | ) | 0 | (6 | ) | |||||||||||||||
Net investment income(6) | 0 | 0 | 0 | 2 | 0 | 1 | |||||||||||||||||
Purchases | 0 | 0 | 164 | 30 | 12 | 13 | |||||||||||||||||
Sales | 0 | 0 | (150 | ) | 0 | (43 | ) | 0 | |||||||||||||||
Issuances | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Settlements(6) | 0 | 0 | (8 | ) | (11 | ) | 0 | (25 | ) | ||||||||||||||
Foreign currency translation | 0 | (4 | ) | 0 | 0 | (2 | ) | 0 | |||||||||||||||
Other(1) | 0 | 0 | 0 | (3 | ) | 0 | 0 | ||||||||||||||||
Transfers into Level 3(2) | 0 | 138 | 6 | 10 | 0 | 0 | |||||||||||||||||
Transfers out of Level 3(2) | 0 | 0 | (5 | ) | (31 | ) | (4 | ) | 0 | ||||||||||||||
Fair Value, end of period | $ | 6 | $ | 136 | $ | 365 | $ | 514 | $ | 215 | $ | 156 | |||||||||||
Unrealized gains (losses) for assets still held(3): | |||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | $ | 0 | $ | 0 |
Three Months Ended March 31, 2015 | |||||||||||
Fixed Maturities Available-For-Sale | |||||||||||
Asset- Backed(7) | Commercial Mortgage- Backed | Residential Mortgage- Backed | |||||||||
(in millions) | |||||||||||
Fair Value, beginning of period | $ | 4,059 | $ | 43 | $ | 253 | |||||
Total gains (losses) (realized/unrealized): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | 6 | 0 | 0 | ||||||||
Included in other comprehensive income (loss) | 2 | 0 | 0 | ||||||||
Net investment income | 3 | 0 | 0 | ||||||||
Purchases | 325 | 32 | 0 | ||||||||
Sales | (104 | ) | 0 | 0 | |||||||
Issuances | 0 | 0 | 0 | ||||||||
Settlements | (39 | ) | (2 | ) | (9 | ) | |||||
Foreign currency translation | (3 | ) | 0 | (2 | ) | ||||||
Other(1) | 3 | 0 | 0 | ||||||||
Transfers into Level 3(2) | 510 | 2 | 0 | ||||||||
Transfers out of Level 3(2) | (400 | ) | 0 | 0 | |||||||
Fair Value, end of period | $ | 4,362 | $ | 75 | $ | 242 | |||||
Unrealized gains (losses) for assets still held(3): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | $ | 4 | $ | 0 | $ | 0 |
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Trading Account Assets | |||||||||||||||||||||||||||
Foreign Government | Corporate | Asset- Backed(7) | Commercial Mortgage- Backed | Residential Mortgage- Backed | Equity | All Other Activity | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Fair Value, beginning of period | $ | 21 | $ | 124 | $ | 393 | $ | 5 | $ | 7 | $ | 663 | $ | 7 | |||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 | 0 | (3 | ) | 0 | |||||||||||||||||||
Other income | 0 | (5 | ) | 2 | 0 | 0 | (3 | ) | 1 | ||||||||||||||||||
Purchases | 1 | 20 | 4 | 1 | 0 | 7 | 0 | ||||||||||||||||||||
Sales | 0 | 0 | 0 | (2 | ) | 0 | (4 | ) | 0 | ||||||||||||||||||
Issuances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Settlements | 0 | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (15 | ) | 0 | |||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 0 | 0 | (4 | ) | 0 | |||||||||||||||||||
Other(1) | 0 | 0 | 0 | 0 | 0 | (7 | ) | 0 | |||||||||||||||||||
Transfers into Level 3(2) | 0 | 7 | 46 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Transfers out of Level 3(2) | 0 | 0 | (68 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||||
Fair Value, end of period | $ | 22 | $ | 144 | $ | 376 | $ | 3 | $ | 6 | $ | 634 | $ | 8 | |||||||||||||
Unrealized gains (losses) for assets still held(3): | |||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | $ | 0 | ||||||||||||
Other income | $ | 0 | $ | (5 | ) | $ | 2 | $ | 0 | $ | 0 | $ | 11 | $ | 1 |
Three Months Ended March 31, 2015(5) | |||||||||||
Equity Securities Available- For-Sale | Other Long-term Investments | Other Assets | |||||||||
(in millions) | |||||||||||
Fair Value, beginning of period | $ | 275 | $ | 13 | $ | 2 | |||||
Total gains (losses) (realized/unrealized): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | 4 | (2 | ) | 0 | |||||||
Other income | 0 | 0 | 0 | ||||||||
Included in other comprehensive income (loss) | 3 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Purchases | 4 | 3 | 0 | ||||||||
Sales | (22 | ) | 0 | 0 | |||||||
Issuances | 0 | 0 | 0 | ||||||||
Settlements | 0 | 0 | 0 | ||||||||
Foreign currency translation | (1 | ) | 0 | 0 | |||||||
Other(1) | 0 | 0 | 0 | ||||||||
Transfers into Level 3(2) | 0 | 0 | 0 | ||||||||
Transfers out of Level 3(2) | 0 | (1 | ) | 0 | |||||||
Fair Value, end of period | $ | 263 | $ | 13 | $ | 2 | |||||
Unrealized gains (losses) for assets/liabilities still held(3): | |||||||||||
Included in earnings: | |||||||||||
Realized investment gains (losses), net | $ | (1 | ) | $ | (2 | ) | $ | 0 | |||
Other income | $ | 0 | $ | 0 | $ | 0 |
Three Months Ended March 31, 2015(5) | |||||||||||||||
Separate Account Assets(4) | Future Policy Benefits | Other Liabilities | Notes Issued by Consolidated VIEs | ||||||||||||
(in millions) | |||||||||||||||
Fair Value, beginning of period | $ | 1,738 | $ | (8,182 | ) | $ | (5 | ) | $ | (6,033 | ) | ||||
Total gains (losses) (realized/unrealized): | |||||||||||||||
Included in earnings: | |||||||||||||||
Realized investment gains (losses), net | 0 | (1,052 | ) | 1 | 15 | ||||||||||
Other Income | 0 | 0 | 0 | 154 | |||||||||||
Interest credited to policyholders’ account balances | 11 | 0 | 0 | 0 | |||||||||||
Net investment income | 6 | 0 | 0 | 0 | |||||||||||
Purchases | 338 | 0 | 0 | 0 | |||||||||||
Sales | (8 | ) | 0 | 0 | 0 | ||||||||||
Issuances | 0 | (239 | ) | 0 | (946 | ) | |||||||||
Settlements | (43 | ) | 0 | 2 | 0 | ||||||||||
Foreign currency translation | (1 | ) | 0 | 0 | 0 | ||||||||||
Other(1) | 0 | 0 | 0 | 0 | |||||||||||
Transfers into Level 3(2) | 0 | 0 | 0 | 0 | |||||||||||
Transfers out of Level 3(2) | (22 | ) | 0 | 0 | 0 | ||||||||||
Fair Value, end of period | $ | 2,019 | $ | (9,473 | ) | $ | (2 | ) | $ | (6,810 | ) | ||||
Unrealized gains (losses) for assets/liabilities still held(3): | |||||||||||||||
Included in earnings: | |||||||||||||||
Realized investment gains (losses), net | $ | 0 | $ | (1,114 | ) | $ | 1 | $ | 15 | ||||||
Other Income | $ | 0 | $ | 0 | $ | 0 | $ | 154 | |||||||
Interest credited to policyholders’ account balances | $ | 9 | $ | 0 | $ | 0 | $ | 0 |
(1) | Other for the three months ended March 31, 2016, primarily represents deconsolidations of certain previously consolidated collateralized loan obligations. Other for the three months ended March 31, 2015, primarily represents reclassifications of certain assets between reporting categories. |
(2) | Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. |
(3) | Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. |
(4) | Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. |
(5) | Prior period amounts have been reclassified to conform to current period presentation, including the adoption of ASU 2015-07. |
(6) | Amounts as of March 31, 2015, have been revised to correct the previously reported amounts. |
(7) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
As of March 31, 2016 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
Interest Rate | $ | 39 | $ | 16,634 | $ | 7 | $ | $ | 16,680 | ||||||||||
Currency | 0 | 678 | 0 | 678 | |||||||||||||||
Credit | 0 | 2 | 0 | 2 | |||||||||||||||
Currency/Interest Rate | 0 | 2,360 | 0 | 2,360 | |||||||||||||||
Equity | 3 | 201 | 2 | 206 | |||||||||||||||
Commodity | 0 | 0 | 0 | 0 | |||||||||||||||
Netting(1) | (17,717 | ) | (17,717 | ) | |||||||||||||||
Total derivative assets | $ | 42 | $ | 19,875 | $ | 9 | $ | (17,717 | ) | $ | 2,209 | ||||||||
Derivative liabilities: | |||||||||||||||||||
Interest Rate | $ | 4 | $ | 6,511 | $ | 2 | $ | $ | 6,517 | ||||||||||
Currency | 0 | 213 | 0 | 213 | |||||||||||||||
Credit | 0 | 87 | 0 | 87 | |||||||||||||||
Currency/Interest Rate | 0 | 379 | 0 | 379 | |||||||||||||||
Equity | 0 | 824 | 0 | 824 | |||||||||||||||
Commodity | 0 | 0 | 0 | 0 | |||||||||||||||
Netting(1) | (7,577 | ) | (7,577 | ) | |||||||||||||||
Total derivative liabilities | $ | 4 | $ | 8,014 | $ | 2 | $ | (7,577 | ) | $ | 443 |
As of December 31, 2015 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
Interest Rate | $ | 11 | $ | 10,561 | $ | 7 | $ | $ | 10,579 | ||||||||||
Currency | 0 | 318 | 0 | 318 | |||||||||||||||
Credit | 0 | 3 | 0 | 3 | |||||||||||||||
Currency/Interest Rate | 0 | 2,995 | 0 | 2,995 | |||||||||||||||
Equity | 4 | 254 | 32 | 290 | |||||||||||||||
Commodity | 0 | 0 | 0 | 0 | |||||||||||||||
Netting(1) | (11,457 | ) | (11,457 | ) | |||||||||||||||
Total derivative assets | $ | 15 | $ | 14,131 | $ | 39 | $ | (11,457 | ) | $ | 2,728 | ||||||||
Derivative liabilities: | |||||||||||||||||||
Interest Rate | $ | 3 | $ | 4,573 | $ | 2 | $ | $ | 4,578 | ||||||||||
Currency | 0 | 114 | 0 | 114 | |||||||||||||||
Credit | 0 | 53 | 0 | 53 | |||||||||||||||
Currency/Interest Rate | 0 | 244 | 0 | 244 | |||||||||||||||
Equity | 0 | 327 | 0 | 327 | |||||||||||||||
Commodity | 0 | 0 | 0 | 0 | |||||||||||||||
Netting(1) | (5,276 | ) | (5,276 | ) | |||||||||||||||
Total derivative liabilities | $ | 3 | $ | 5,311 | $ | 2 | $ | (5,276 | ) | $ | 40 |
(1) | “Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty. |
Three Months Ended March 31, 2016 | |||||||
Derivative Assets- Equity | Derivative Assets- Interest Rate | ||||||
(in millions) | |||||||
Fair Value, beginning of period | $ | 32 | $ | 5 | |||
Total gains (losses) (realized/unrealized): | |||||||
Included in earnings: | |||||||
Realized investment gains (losses), net | 0 | 0 | |||||
Other income | 0 | 0 | |||||
Purchases | 0 | 0 | |||||
Sales | 0 | 0 | |||||
Issuances | 0 | 0 | |||||
Settlements | 0 | 0 | |||||
Other(1) | (30 | ) | 0 | ||||
Transfers into Level 3(2) | 0 | 0 | |||||
Transfers out of Level 3(2) | 0 | 0 | |||||
Fair Value, end of period | $ | 2 | $ | 5 | |||
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period: | |||||||
Included in earnings: | |||||||
Realized investment gains (losses), net | $ | 0 | $ | 0 | |||
Other income | $ | 0 | $ | 0 |
Three Months Ended March 31, 2015 | |||||||
Derivative Assets- Equity | Derivative Assets- Interest Rate | ||||||
(in millions) | |||||||
Fair Value, beginning of period | $ | 6 | $ | 3 | |||
Total gains (losses) (realized/unrealized): | |||||||
Included in earnings: | |||||||
Realized investment gains (losses), net | (2 | ) | 1 | ||||
Other income | 0 | 0 | |||||
Purchases | 2 | 0 | |||||
Sales | 0 | 0 | |||||
Issuances | 0 | 0 | |||||
Settlements | 0 | 0 | |||||
Other | 0 | 0 | |||||
Transfers into Level 3(2) | 0 | 0 | |||||
Transfers out of Level 3(2) | (1 | ) | 0 | ||||
Fair Value, end of period | $ | 5 | $ | 4 | |||
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period: | |||||||
Included in earnings: | |||||||
Realized investment gains (losses), net | $ | (2 | ) | $ | 1 | ||
Other income | $ | 0 | $ | 0 |
(1) | Primarily related to private warrants reclassified from derivatives to trading securities. |
(2) | Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Commercial mortgage loans(1): | |||||||
Carrying value | $ | 0 | $ | 18 | |||
Gains (Losses) | $ | 0 | $ | 0 | |||
Mortgage servicing rights(2): | |||||||
Carrying value | $ | 88 | $ | 88 | |||
Gains (Losses) | $ | 1 | $ | (3 | ) | ||
Cost method investments(3): | |||||||
Carrying value | $ | 108 | $ | 54 | |||
Gains (Losses) | $ | (30 | ) | $ | (24 | ) |
(1) | The reserve adjustments were based on discounted cash flows utilizing market rates or the fair value of the underlying real estate collateral. |
(2) | Mortgage servicing rights are revalued based on internal models which utilize inputs. The fair value for mortgage servicing rights is determined using a discounted cash flow model incorporating assumptions for servicing revenues, adjusted for expected prepayments, delinquency rates, escrow deposit income and estimated loan servicing expenses. |
(3) | For cost method impairments, the methodologies utilized were primarily discounted cash flow and, where appropriate, valuations provided by the general partners taking into consideration investment-related expenses. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Assets: | |||||||
Commercial mortgage and other loans: | |||||||
Changes in instrument-specific credit risk | $ | 0 | $ | 0 | |||
Other changes in fair value | 0 | 0 | |||||
Other long-term investments: | |||||||
Changes in fair value | (51 | ) | 32 | ||||
Liabilities: | |||||||
Notes issued by consolidated VIEs: | |||||||
Changes in fair value | $ | (81 | ) | $ | (168 | ) |
March 31, 2016(1) | |||||||||||||||||||
Fair Value | Carrying Amount(2) | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities, held-to-maturity(3) | $ | 0 | $ | 1,698 | $ | 1,143 | $ | 2,841 | $ | 2,411 | |||||||||
Commercial mortgage and other loans | 0 | 501 | 52,458 | 52,959 | 50,512 | ||||||||||||||
Policy loans | 0 | 0 | 11,805 | 11,805 | 11,805 | ||||||||||||||
Short-term investments | 0 | 593 | 1 | 594 | 594 | ||||||||||||||
Cash and cash equivalents | 3,755 | 328 | 0 | 4,083 | 4,083 | ||||||||||||||
Accrued investment income | 0 | 3,180 | 0 | 3,180 | 3,180 | ||||||||||||||
Other assets | 58 | 2,602 | 643 | 3,303 | 3,303 | ||||||||||||||
Total assets | $ | 3,813 | $ | 8,902 | $ | 66,050 | $ | 78,765 | $ | 75,888 | |||||||||
Liabilities: | |||||||||||||||||||
Policyholders’ account balances—investment contracts | $ | 0 | $ | 40,455 | $ | 56,554 | $ | 97,009 | $ | 96,233 | |||||||||
Securities sold under agreements to repurchase | 0 | 8,357 | 0 | 8,357 | 8,357 | ||||||||||||||
Cash collateral for loaned securities | 0 | 4,052 | 0 | 4,052 | 4,052 | ||||||||||||||
Short-term debt | 0 | 970 | 0 | 970 | 969 | ||||||||||||||
Long-term debt(4) | 1,346 | 16,537 | 3,408 | 21,291 | 19,608 | ||||||||||||||
Other liabilities | 0 | 4,975 | 684 | 5,659 | 5,659 | ||||||||||||||
Separate account liabilities—investment contracts | 0 | 64,720 | 32,567 | 97,287 | 97,287 | ||||||||||||||
Total liabilities | $ | 1,346 | $ | 140,066 | $ | 93,213 | $ | 234,625 | $ | 232,165 |
December 31, 2015(1) | |||||||||||||||||||
Fair Value | Carrying Amount(2) | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities, held-to-maturity(3) | $ | 0 | $ | 1,543 | $ | 1,081 | $ | 2,624 | $ | 2,308 | |||||||||
Commercial mortgage and other loans | 0 | 533 | 51,046 | 51,579 | 50,285 | ||||||||||||||
Policy loans | 0 | 0 | 11,657 | 11,657 | 11,657 | ||||||||||||||
Short-term investments | 0 | 617 | 1 | 618 | 618 | ||||||||||||||
Cash and cash equivalents | 2,832 | 572 | 0 | 3,404 | 3,404 | ||||||||||||||
Accrued investment income | 0 | 3,110 | 0 | 3,110 | 3,110 | ||||||||||||||
Other assets | 136 | 2,334 | 652 | 3,122 | 3,122 | ||||||||||||||
Total assets | $ | 2,968 | $ | 8,709 | $ | 64,437 | $ | 76,114 | $ | 74,504 | |||||||||
Liabilities: | |||||||||||||||||||
Policyholders’ account balances—investment contracts | $ | 0 | $ | 39,314 | $ | 54,957 | $ | 94,271 | $ | 93,937 | |||||||||
Securities sold under agreements to repurchase | 0 | 7,882 | 0 | 7,882 | 7,882 | ||||||||||||||
Cash collateral for loaned securities | 0 | 3,496 | 0 | 3,496 | 3,496 | ||||||||||||||
Short-term debt | 0 | 1,221 | 0 | 1,221 | 1,216 | ||||||||||||||
Long-term debt(4)(5) | 1,328 | 16,540 | 3,433 | 21,301 | 19,594 | ||||||||||||||
Other liabilities | 0 | 5,344 | 695 | 6,039 | 6,039 | ||||||||||||||
Separate account liabilities—investment contracts | 0 | 69,978 | 32,267 | 102,245 | 102,245 | ||||||||||||||
Total liabilities | $ | 1,328 | $ | 143,775 | $ | 91,352 | $ | 236,455 | $ | 234,409 |
(1) | As discussed in Note 2, the Company adopted ASU 2015-07, effective January 1, 2016, which resulted in the exclusion of certain other long-term investments from the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At March 31, 2016 and December 31, 2015, the fair values of these cost method investments were $1,751 million and $1,653 million, respectively, which had been previously classified in level 3 at December 31, 2015. The carrying value of these investments were $1,548 million and $1,563 million as of March 31, 2016 and December 31, 2015, respectively. |
(2) | Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments. |
(3) | Excludes notes with fair value and carrying amount of $3,990 million as of March 31, 2016, and $4,081 million and $3,850 million, respectively, as of December 31, 2015, which have been offset with the associated payables under a netting agreement. |
(4) | Includes notes with fair value and carrying amount of $5,040 million as of March 31, 2016, and $5,120 million and $4,889 million, respectively, as of December 31, 2015, which have been offset with the associated payables under a netting agreement. |
(5) | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. |
Primary Underlying/Instrument Type | March 31, 2016 | December 31, 2015 | |||||||||||||||||||||
Gross Fair Value | Gross Fair Value | ||||||||||||||||||||||
Notional(1) | Assets | Liabilities | Notional(1) | Assets | Liabilities | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Interest Rate Swaps | $ | 1,398 | $ | 20 | $ | (168 | ) | $ | 1,431 | $ | 20 | $ | (148 | ) | |||||||||
Foreign Currency | |||||||||||||||||||||||
Foreign Currency Forwards | 348 | 13 | (3 | ) | 323 | 7 | (1 | ) | |||||||||||||||
Currency/Interest Rate | |||||||||||||||||||||||
Foreign Currency Swaps | 12,788 | 1,297 | (75 | ) | 12,739 | 1,592 | (5 | ) | |||||||||||||||
Total Qualifying Hedges | $ | 14,534 | $ | 1,330 | $ | (246 | ) | $ | 14,493 | $ | 1,619 | $ | (154 | ) | |||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Interest Rate Swaps | $ | 173,815 | $ | 15,990 | $ | (6,230 | ) | $ | 173,091 | $ | 10,161 | $ | (4,232 | ) | |||||||||
Interest Rate Futures | 32,370 | 39 | (4 | ) | 28,209 | 11 | (3 | ) | |||||||||||||||
Interest Rate Options | 22,766 | 625 | (117 | ) | 40,056 | 387 | (196 | ) | |||||||||||||||
Interest Rate Forwards | 78 | 0 | 0 | 86 | 0 | 0 | |||||||||||||||||
Foreign Currency | |||||||||||||||||||||||
Foreign Currency Forwards | 17,257 | 664 | (209 | ) | 17,400 | 311 | (113 | ) | |||||||||||||||
Foreign Currency Options | 93 | 1 | 0 | 93 | 0 | 0 | |||||||||||||||||
Currency/Interest Rate | |||||||||||||||||||||||
Foreign Currency Swaps | 11,598 | 1,062 | (303 | ) | 11,607 | 1,404 | (238 | ) | |||||||||||||||
Credit | |||||||||||||||||||||||
Credit Default Swaps | 1,815 | 2 | (87 | ) | 1,839 | 3 | (53 | ) | |||||||||||||||
Equity | |||||||||||||||||||||||
Equity Futures | 1,787 | 3 | 0 | 249 | 2 | 0 | |||||||||||||||||
Equity Options | 55,503 | 144 | (102 | ) | 48,958 | 159 | (118 | ) | |||||||||||||||
Total Return Swaps | 18,843 | 59 | (722 | ) | 18,804 | 128 | (209 | ) | |||||||||||||||
Commodity | |||||||||||||||||||||||
Commodity Futures | 79 | 0 | 0 | 80 | 0 | 0 | |||||||||||||||||
Synthetic GICs | 73,978 | 7 | 0 | 72,585 | 7 | 0 | |||||||||||||||||
Total Non-Qualifying Derivatives(2) | $ | 409,982 | $ | 18,596 | $ | (7,774 | ) | $ | 413,057 | $ | 12,573 | $ | (5,162 | ) | |||||||||
Total Derivatives(3) | $ | 424,516 | $ | 19,926 | $ | (8,020 | ) | $ | 427,550 | $ | 14,192 | $ | (5,316 | ) |
(1) | Notional amounts are presented on a gross basis and include derivatives used to offset existing positions. |
(2) | Based on notional amounts, most of the Company’s derivatives do not qualify for hedge accounting as follows: derivatives that economically hedge embedded derivatives do not qualify for hedge accounting because changes in the fair value of the embedded derivatives are already recorded in net income, derivatives that are utilized as macro hedges of the Company’s exposure to various risks typically do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedge accounting rules, and synthetic GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. |
(3) | Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $11,020 million and $8,408 million as of March 31, 2016 and December 31, 2015, respectively, primarily included in “Future policy benefits.” |
March 31, 2016 | |||||||||||||||||||
Gross Amounts of Recognized Financial Instruments | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Financial Instruments/ Collateral(1) | Net Amount | |||||||||||||||
(in millions) | |||||||||||||||||||
Offsetting of Financial Assets: | |||||||||||||||||||
Derivatives(1) | $ | 19,813 | $ | (17,717 | ) | $ | 2,096 | $ | (1,001 | ) | $ | 1,095 | |||||||
Securities purchased under agreement to resell | 909 | 0 | 909 | (909 | ) | 0 | |||||||||||||
Total assets | $ | 20,722 | $ | (17,717 | ) | $ | 3,005 | $ | (1,910 | ) | $ | 1,095 | |||||||
Offsetting of Financial Liabilities: | |||||||||||||||||||
Derivatives(1) | $ | 8,005 | $ | (7,577 | ) | $ | 428 | $ | (180 | ) | $ | 248 | |||||||
Securities sold under agreement to repurchase | 8,357 | 0 | 8,357 | (8,357 | ) | 0 | |||||||||||||
Total liabilities | $ | 16,362 | $ | (7,577 | ) | $ | 8,785 | $ | (8,537 | ) | $ | 248 |
December 31, 2015 | |||||||||||||||||||
Gross Amounts of Recognized Financial Instruments | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Financial Instruments/ Collateral(1) | Net Amount | |||||||||||||||
(in millions) | |||||||||||||||||||
Offsetting of Financial Assets: | |||||||||||||||||||
Derivatives(1) | $ | 14,028 | $ | (11,457 | ) | $ | 2,571 | $ | (1,296 | ) | $ | 1,275 | |||||||
Securities purchased under agreement to resell | 776 | 0 | 776 | (776 | ) | 0 | |||||||||||||
Total assets | $ | 14,804 | $ | (11,457 | ) | $ | 3,347 | $ | (2,072 | ) | $ | 1,275 | |||||||
Offsetting of Financial Liabilities: | |||||||||||||||||||
Derivatives(1) | $ | 5,310 | $ | (5,276 | ) | $ | 34 | $ | (14 | ) | $ | 20 | |||||||
Securities sold under agreement to repurchase | 7,882 | 0 | 7,882 | (7,882 | ) | 0 | |||||||||||||
Total liabilities | $ | 13,192 | $ | (5,276 | ) | $ | 7,916 | $ | (7,896 | ) | $ | 20 |
(1) | Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Three Months Ended March 31, 2016 | |||||||||||||||||||||||
Realized Investment Gains (Losses) | Net Investment Income | Other Income | Interest Expense | Interest Credited To Policyholders’ Account Balances | AOCI(1) | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||
Interest Rate | $ | (14 | ) | $ | (9 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||
Currency | 11 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Total fair value hedges | (3 | ) | (9 | ) | 0 | 0 | 0 | 0 | |||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Interest Rate | 0 | 0 | 0 | (1 | ) | 0 | (8 | ) | |||||||||||||||
Currency/Interest Rate | 0 | 28 | (9 | ) | 0 | 0 | (261 | ) | |||||||||||||||
Total cash flow hedges | 0 | 28 | (9 | ) | (1 | ) | 0 | (269 | ) | ||||||||||||||
Net investment hedges | |||||||||||||||||||||||
Currency | 0 | 0 | 0 | 0 | 0 | (8 | ) | ||||||||||||||||
Currency/Interest Rate | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Total net investment hedges | 0 | 0 | 0 | 0 | 0 | (8 | ) | ||||||||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
Interest Rate | 4,490 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Currency | 499 | 0 | (1 | ) | 0 | 0 | 0 | ||||||||||||||||
Currency/Interest Rate | (489 | ) | 0 | (1 | ) | 0 | 0 | 0 | |||||||||||||||
Credit | (16 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Equity | (227 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Commodity | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Embedded Derivatives | (2,319 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Total non-qualifying hedges | 1,938 | 0 | (2 | ) | 0 | 0 | 0 | ||||||||||||||||
Total | $ | 1,935 | $ | 19 | $ | (11 | ) | $ | (1 | ) | $ | 0 | $ | (277 | ) |
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Realized Investment Gains (Losses) | Net Investment Income | Other Income | Interest Expense | Interest Credited to Policyholders’ Account Balances | AOCI(1) | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||
Interest Rate | $ | (5 | ) | $ | (12 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||
Currency | 19 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Total fair value hedges | 14 | (12 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Interest Rate | 0 | 0 | 0 | (1 | ) | 0 | (4 | ) | |||||||||||||||
Currency/Interest Rate | 0 | 11 | 103 | 0 | 0 | 803 | |||||||||||||||||
Total cash flow hedges | 0 | 11 | 103 | (1 | ) | 0 | 799 | ||||||||||||||||
Net investment hedges | |||||||||||||||||||||||
Currency | (4 | ) | 0 | 0 | 0 | 0 | 10 | ||||||||||||||||
Currency/Interest Rate | 0 | 0 | 0 | 0 | 0 | 7 | |||||||||||||||||
Total net investment hedges | (4 | ) | 0 | 0 | 0 | 0 | 17 | ||||||||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
Interest Rate | 2,712 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Currency | 111 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Currency/Interest Rate | 433 | 0 | 4 | 0 | 0 | 0 | |||||||||||||||||
Credit | (7 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Equity | (480 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Commodity | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Embedded Derivatives | (1,036 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Total non-qualifying hedges | 1,733 | 0 | 4 | 0 | 0 | 0 | |||||||||||||||||
Total | $ | 1,743 | $ | (1 | ) | $ | 107 | $ | (1 | ) | $ | 0 | $ | 816 |
(1) | Amounts deferred in AOCI. |
(in millions) | |||
Balance, December 31, 2015 | $ | 1,165 | |
Net deferred gains (losses) on cash flow hedges from January 1 to March 31, 2016 | (248 | ) | |
Amount reclassified into current period earnings | (21 | ) | |
Balance, March 31, 2016 | $ | 896 |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Total outstanding mortgage loan commitments | $ | 2,662 | $ | 2,272 | |||
Portion of commitment where prearrangement to sell to investor exists | $ | 652 | $ | 721 |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Expected to be funded from the general account and other operations outside the separate accounts(1) | $ | 3,701 | $ | 3,787 | |||
Expected to be funded from separate accounts | $ | 136 | $ | 92 |
(1) | Includes a remaining commitment of $152 million at both March 31, 2016 and December 31, 2015, related to the Company’s agreement to co-invest with the Fosun Group (“Fosun”) in a private equity fund, managed by Fosun, for the Chinese marketplace. |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Indemnification provided to mutual fund, trust fund, and insurance company separate account clients for securities lending | $ | 20,285 | $ | 15,084 | |||
Fair value of related collateral associated with above indemnifications | $ | 20,758 | $ | 15,508 | |||
Accrued liability associated with guarantee | $ | 0 | $ | 0 |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Guaranteed value of third parties’ assets | $ | 73,978 | $ | 72,585 | |||
Fair value of collateral supporting these assets | $ | 75,669 | $ | 73,634 | |||
Asset associated with guarantee, carried at fair value | $ | 7 | $ | 7 |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Guarantees of credit enhancements of debt instruments associated with commercial real estate assets | $ | 8 | $ | 24 | |||
Fair value of collateral that secure the guarantee | $ | 8 | $ | 25 | |||
Accrued liability associated with guarantee | $ | 0 | $ | 0 |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company | $ | 1,209 | $ | 1,200 | |||
First-loss exposure portion of above | $ | 373 | $ | 371 | |||
Accrued liability associated with guarantees | $ | 12 | $ | 14 |
March 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Other guarantees where amount can be determined | $ | 329 | $ | 324 | |||
Accrued liability for other guarantees and indemnifications | $ | 4 | $ | 4 |
• | Prudential Advisors: We expect compliance with a new “best interest contract exemption” will be required for investment advice concerning retirement plans and IRAs including recommendations to purchase a wide range of products sold to IRAs, which constitutes a significant part of Prudential Advisors’ non-life insurance new business revenues. The Rules state that proprietary products may be sold to IRA owners if certain conditions are met, subject to significant new requirements for this type of sale, which we continue to review. The Rules will impose compliance and contract requirements and would give customers a new private right of action for breach of contract that in some circumstances may result in damages and liability under ERISA and the Internal Revenue Code for excise taxes, disgorgement of profit, and other possible remedies. We expect the Rules may also lead to changes to compensation and benefit structures as well as our product offerings. |
• | Annuities: Sales of variable annuities will be subject to the best interest contract exemption described above, but certain fixed annuities will be subject to a separate exemption. As a result of the Rules, certain distributors may restrict the sale of annuities. In addition, we may need to alter our product design or offerings to meet the needs of distributors in complying with the Rules. We may also need to monitor or limit wholesaling and other sales support and customer service activities if we do not want to be considered a fiduciary. |
• | Retirement: Asset allocation tools included in our product offerings, which may include illustrations based on specific investments, are not expected to fall within the definition of acting as a fiduciary for plan clients provided we make certain changes to the tools we offer. IRA offerings and asset retention and consolidation activities may need to comply with the new best interest contract exemption, referred to above. In addition, changes to the relationship with sponsors and intermediaries for plans with less than $50 million in assets may be required if we do not want to be considered a fiduciary. Historically, the substantial majority of our earnings in the Retirement business have not come from IRA offerings, asset retention and consolidation activities, and plans with less than $50 million in assets. |
• | Asset Management: Distributors may have specific product and pricing needs, and may request tailoring product offerings or pricing to support their compliance with the Rules. We also may need to monitor or limit wholesaling and other sales support and customer service activities if we do not want to be considered a fiduciary. |
Account Values with Adjustable Crediting Rates Subject to Guaranteed Minimums: | |||||||||||||||||||||||
At guaranteed minimum | 1-49 bps above guaranteed minimum | 50-99 bps above guaranteed minimum | 100-150 bps above guaranteed minimum | Greater than 150 bps above guaranteed minimum | Total | ||||||||||||||||||
($ in billions) | |||||||||||||||||||||||
Range of Guaranteed Minimum Crediting Rates: | |||||||||||||||||||||||
Less than 1.00% | $ | 0.7 | $ | 0.6 | $ | 0.4 | $ | 0.0 | $ | 0.0 | $ | 1.7 | |||||||||||
1.00% - 1.99% | 1.5 | 11.0 | 4.1 | 0.9 | 0.1 | 17.6 | |||||||||||||||||
2.00% - 2.99% | 2.5 | 0.3 | 1.8 | 0.7 | 0.1 | 5.4 | |||||||||||||||||
3.00% - 4.00% | 26.3 | 0.8 | 0.2 | 0.2 | 0.0 | 27.5 | |||||||||||||||||
Greater than 4.00% | 0.8 | 0.0 | 0.0 | 0.0 | 0.0 | 0.8 | |||||||||||||||||
Total | $ | 31.8 | $ | 12.7 | $ | 6.5 | $ | 1.8 | $ | 0.2 | $ | 53.0 | |||||||||||
Percentage of total | 60 | % | 24 | % | 12 | % | 3 | % | 1 | % | 100 | % |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Adjusted operating income before income taxes: | |||||||
Individual Annuities | $ | 328 | $ | 529 | |||
Retirement | 219 | 284 | |||||
Asset Management | 165 | 205 | |||||
Total U.S. Retirement Solutions and Investment Management division | 712 | 1,018 | |||||
Individual Life | 120 | 116 | |||||
Group Insurance | 26 | 30 | |||||
Total U.S. Individual Life and Group Insurance division | 146 | 146 | |||||
International Insurance | 779 | 834 | |||||
Total International Insurance division | 779 | 834 | |||||
Corporate and Other operations | (312 | ) | (253 | ) | |||
Total Corporate and Other | (312 | ) | (253 | ) | |||
Total adjusted operating income before income taxes | 1,325 | 1,745 | |||||
Reconciling items: | |||||||
Realized investment gains (losses), net, and related adjustments(1) | 1,418 | 1,662 | |||||
Charges related to realized investment gains (losses), net(2) | (1,080 | ) | (611 | ) | |||
Investment gains (losses) on trading account assets supporting insurance liabilities, net(3) | 216 | 83 | |||||
Change in experience-rated contractholder liabilities due to asset value changes(4) | (130 | ) | (197 | ) | |||
Divested businesses(5): | |||||||
Closed Block division | (73 | ) | (22 | ) | |||
Other divested businesses | 31 | 75 | |||||
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(6) | 25 | 13 | |||||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 1,732 | $ | 2,748 |
(1) | Represents “Realized investment gains (losses), net,” and related adjustments. See “—Realized Investment Gains (Losses)” and Note 11 to our Unaudited Interim Consolidated Financial Statements for additional information. |
(2) | Includes charges that represent the impact of realized investment gains (losses), net, on the amortization of deferred policy acquisition costs (“DAC”) and other costs, and on changes in reserves. Also includes charges resulting from payments related to market value adjustment features of certain of our annuity products and the impact of realized investment gains (losses), net, on the amortization of unearned revenue reserves. |
(3) | Represents net investment gains (losses) on trading account assets supporting insurance liabilities. See “—Experience-Rated Contractholder Liabilities, Trading Account Assets Supporting Insurance Liabilities and Other Related Investments.” |
(4) | Represents changes in contractholder liabilities due to asset value changes in the pool of investments supporting these experience-rated contracts. See “—Experience-Rated Contractholder Liabilities, Trading Account Assets Supporting Insurance Liabilities and Other Related Investments.” |
(5) | See “—Divested Businesses.” |
(6) | Equity in earnings of operating joint ventures are included in adjusted operating income but excluded from income from continuing operations before income taxes and equity in earnings of operating joint ventures as they are reflected on an after-tax U.S. GAAP basis as a separate line in our Unaudited Interim Consolidated Statements of Operations. Earnings attributable to noncontrolling interests are excluded from adjusted operating income but included in income from continuing operations before taxes and equity earnings of operating joint ventures as they are reflected on a U.S. GAAP basis as a separate line in our Unaudited Interim Consolidated Statements of Operations. Earnings attributable to noncontrolling interests represent the portion of earnings from consolidated entities that relates to the equity interests of minority investors. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Revenues | $ | 14,329 | $ | 15,552 | |||
Benefits and expenses | 12,597 | 12,804 | |||||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 1,732 | 2,748 | |||||
Income tax expense (benefit) | 368 | 699 | |||||
Income (loss) from continuing operations before equity in earnings of operating joint ventures | 1,364 | 2,049 | |||||
Equity in earnings of operating joint ventures, net of taxes | 5 | (3 | ) | ||||
Income (loss) from continuing operations | 1,369 | 2,046 | |||||
Income (loss) from discontinued operations, net of taxes | 0 | 0 | |||||
Net income (loss) | 1,369 | 2,046 | |||||
Less: Income attributable to noncontrolling interests | 33 | 10 | |||||
Net income (loss) attributable to Prudential Financial, Inc. | $ | 1,336 | $ | 2,036 |
• | $592 million unfavorable variance, on a pre-tax basis, reflecting our decision to manage a portion of our interest rate risk through our Capital Protection Framework (see “—Results of Operations by Segment—Corporate and Other—Capital Protection Framework” for additional information). |
• | $387 million lower net pre-tax realized gains for PFI excluding the Closed Block division and the impact of the hedging program associated with certain variable annuities discussed below, primarily reflecting net losses on fixed maturity securities related to trading activity and impairments as compared to net gains on fixed maturity securities in the first quarter of 2015 (see “—Realized Investment Gains (Losses)” for additional information); and |
• | $159 million unfavorable variance, on a pre-tax basis, from adjustments to DAC and other costs as well as reserves, reflecting updates to the estimated profitability of our businesses. This excludes the impact associated with the variable annuity hedging program discussed below (see “—Results of Operations by Segment—U.S. Retirement Solutions and Investment Management Division—Individual Annuities” for additional information). |
• | $497 million favorable variance, on a pre-tax basis, reflecting the net impact from changes in the value of our embedded derivatives and related hedge positions associated with certain variable annuities (see “—Results of Operations by Segment—U.S. Retirement Solutions and Investment Management Division—Individual Annuities—Variable Annuity Hedging Program Results” for additional information); and |
• | $331 million favorable impact of lower tax expense reflecting lower pre-tax income in the current quarter compared to the year ago quarter. |
• | DAC and other costs, including deferred sales inducements (“DSI”) and value of business acquired (“VOBA”); |
• | Goodwill; |
• | Valuation of investments, including derivatives, and the recognition of other-than-temporary impairments (“OTTI”); |
• | Policyholder liabilities; |
• | Pension and other postretirement benefits; |
• | Taxes on income; and |
• | Reserves for contingencies, including reserves for losses in connection with unresolved legal matters. |
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||
2016 | 2015 | 2016 | ||||||||||
(in millions) | ||||||||||||
Total Individual Annuities(1): | ||||||||||||
Beginning total account value | $ | 152,945 | $ | 158,664 | $ | 161,127 | ||||||
Sales | 2,017 | 2,227 | 8,570 | |||||||||
Surrenders and withdrawals | (1,779 | ) | (2,196 | ) | (7,998 | ) | ||||||
Net sales | 238 | 31 | 572 | |||||||||
Benefit payments | (443 | ) | (488 | ) | (1,865 | ) | ||||||
Net flows | (205 | ) | (457 | ) | (1,293 | ) | ||||||
Change in market value, interest credited and other activity | 850 | 3,812 | (3,547 | ) | ||||||||
Policy charges | (857 | ) | (892 | ) | (3,554 | ) | ||||||
Ending total account value | $ | 152,733 | $ | 161,127 | $ | 152,733 |
(1) | Includes variable and fixed annuities sold as retail investment products. Investments sold through defined contribution plan products are included with such products within the Retirement segment. Variable annuity account values were $149.2 billion and $157.6 billion as of March 31, 2016 and 2015, respectively. Fixed annuity account values were $3.5 billion as of both March 31, 2016 and 2015. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(in millions) | ||||||||
Operating results: | ||||||||
Revenues | $ | 1,109 | $ | 1,187 | ||||
Benefits and expenses | 781 | 658 | ||||||
Adjusted operating income | 328 | 529 | ||||||
Realized investment gains (losses), net, and related adjustments | 2,359 | 1,409 | ||||||
Related charges | (926 | ) | (453 | ) | ||||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 1,761 | $ | 1,485 |
March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||||||||||
Account Value | % of Total | Account Value | % of Total | Account Value | % of Total | |||||||||||||||
(in millions) | ||||||||||||||||||||
Living benefit/GMDB features(1): | ||||||||||||||||||||
Both hedging program and automatic rebalancing(2) | $ | 105,379 | 71 | % | $ | 106,018 | 71 | % | $ | 113,118 | 72 | % | ||||||||
Hedging program only | 9,739 | 6 | % | 9,994 | 7 | % | 11,305 | 7 | % | |||||||||||
Automatic rebalancing only | 1,320 | 1 | % | 1,393 | 1 | % | 1,679 | 1 | % | |||||||||||
External reinsurance(3) | 1,893 | 1 | % | 1,513 | 1 | % | 0 | 0 | % | |||||||||||
PDI | 5,590 | 4 | % | 4,664 | 3 | % | 3,292 | 2 | % | |||||||||||
Other Products | 2,780 | 2 | % | 2,870 | 2 | % | 3,271 | 2 | % | |||||||||||
Total living benefit/GMDB features | $ | 126,701 | $ | 126,452 | $ | 132,665 | ||||||||||||||
GMDB features and other(4): | 22,545 | 15 | % | 22,989 | 15 | % | 24,887 | 16 | % | |||||||||||
Total variable annuity account value | $ | 149,246 | $ | 149,441 | $ | 157,552 |
(1) | All contracts with living benefit guarantees also contain GMDB features, covering the same insured contract. |
(2) | Contracts with living benefits that are included in our hedging program, and have an automatic rebalancing feature. |
(3) | Represents contracts subject to reinsurance transaction with external counterparty effective April 1, 2015. These contracts with living benefits also have an automatic rebalancing feature. |
(4) | Includes contracts that have a GMDB feature and do not have an automatic rebalancing feature. |
• | The impact of non-performance risk (“NPR”) is excluded to maximize protection against the entire projected claim irrespective of the possibility of our own default. |
• | The assumptions used in the projection of customer account values for fixed income and equity funds and the discounted net living benefits (claims less fees) are adjusted to reflect returns in excess of risk-free rates equal to our expectations of credit risk premiums. |
• | Actuarial assumptions are adjusted to remove risk margins and reflect our best estimates. |
As of March 31, 2016 | As of December 31, 2015 | |||||||
(in billions) | ||||||||
Embedded derivative liability as defined by U.S. GAAP | $ | 11.0 | $ | 8.4 | ||||
Less: NPR Adjustment | (12.2 | ) | (8.9 | ) | ||||
Embedded derivative liability as defined by U.S. GAAP, excluding NPR | 23.2 | 17.3 | ||||||
Less: Amount of embedded derivative liability, excluding NPR, excluded from hedge target liability | 7.0 | 6.4 | ||||||
Hedge target liability (contra-liability) | $ | 16.2 | $ | 10.9 |
As of March 31, 2016 | As of December 31, 2015 | |||||||||||||||||||||||||||||||
Equity | Interest Rate | Equity | Interest Rate | |||||||||||||||||||||||||||||
Instrument | Notional | Market Value | Notional | Market Value | Notional | Market Value | Notional | Market Value | ||||||||||||||||||||||||
(in billions) | ||||||||||||||||||||||||||||||||
Futures | $ | 1.7 | $ | 0.0 | $ | 4.0 | $ | 0.0 | $ | 0.1 | $ | 0.0 | $ | 0.8 | $ | 0.0 | ||||||||||||||||
Swaps(1) | 17.9 | (0.6 | ) | 86.1 | 9.6 | 17.2 | (0.1 | ) | 91.7 | 6.2 | ||||||||||||||||||||||
Options | 5.5 | 0.0 | 12.1 | 0.5 | 5.0 | 0.0 | 14.4 | 0.2 | ||||||||||||||||||||||||
Total | $ | 25.1 | $ | (0.6 | ) | $ | 102.2 | $ | 10.1 | $ | 22.3 | $ | (0.1 | ) | $ | 106.9 | $ | 6.4 |
(1) | Includes interest rate swaps for which offsetting positions exist in Corporate and Other operations, reflecting the impact of managing interest rate risk through capital management strategies other than hedging of particular exposures. See “—Corporate and Other.” |
• | Fund Performance—In order to project future account value changes, we make certain assumptions about how each underlying fund will perform. We map contractholder funds to hedgeable indices that we believe are the best representation of the liability to be hedged in the capital markets. The difference between the modeled fund performance and actual fund performance results in basis that can be either positive or negative. |
• | Net Market Impact—We incur rebalancing costs related to the dynamic rebalancing of the hedging instruments as markets move. Our hedging program is also subject to the impact of implied and realized market volatility on the hedge positions relative to our hedge target that can lead to positive or negative results. |
• | Liability Basis—We make assumptions about expected changes in the hedge target related to certain items, such as contractholder behavior. The difference between the actual change in the hedge target and the expected changes we have modeled results in basis that can be either positive or negative. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(1) (in millions) | ||||||||
Hedge Program Results: | ||||||||
Change in value of hedge target(2) | $ | (5,039 | ) | $ | (2,415 | ) | ||
Change in fair value of hedge positions | 4,677 | 2,417 | ||||||
Net hedging impact(3) | $ | (362 | ) | $ | 2 | |||
Reconciliation of Hedge Program Results to U.S. GAAP Results: | ||||||||
Net hedging impact (from above) | $ | (362 | ) | $ | 2 | |||
Change in portions of U.S. GAAP liability, before NPR, excluded from hedge target(4) | (667 | ) | (431 | ) | ||||
Change in the NPR adjustment | 3,378 | 1,808 | ||||||
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions—reported in Individual Annuities | 2,349 | 1,379 | ||||||
Related benefit (charge) to amortization of DAC and other costs | (932 | ) | (459 | ) | ||||
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions, after the impact of NPR, DAC and other costs—reported in Individual Annuities(3) | $ | 1,417 | $ | 920 |
(1) | Positive amount represents income; negative amount represents a loss. |
(2) | Attributed fees received for the three months ended March 31, 2016 and 2015 were approximately $255 million and $244 million, respectively, and were included in “Change in value of hedge target.” |
(3) | Excludes $(1,135) million and $(657) million for the three months ended March 31, 2016 and 2015, respectively, representing the impact of managing interest rate risk through capital management strategies other than hedging of particular exposures. Because this decision is based on the capital considerations of the Company as a whole, the impact is reported in Corporate and Other operations. See “—Corporate and Other.” |
(4) | Represents the impact attributable to the difference between the value of the hedge target and the value of the embedded derivative as defined by U.S. GAAP, before adjusting for NPR, as discussed above. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Operating results: | |||||||
Revenues | $ | 1,893 | $ | 2,478 | |||
Benefits and expenses | 1,674 | 2,194 | |||||
Adjusted operating income | 219 | 284 | |||||
Realized investment gains (losses), net, and related adjustments | (23 | ) | 409 | ||||
Related charges | (1 | ) | (1 | ) | |||
Investment gains (losses) on trading account assets supporting insurance liabilities, net | 322 | 27 | |||||
Change in experience-rated contractholder liabilities due to asset value changes | (236 | ) | (141 | ) | |||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 281 | $ | 578 |
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||
2016 | 2015 | 2016 | |||||||||
(in millions) | |||||||||||
Full Service: | |||||||||||
Beginning total account value | $ | 188,961 | $ | 184,196 | $ | 188,145 | |||||
Deposits and sales | 6,656 | 6,314 | 26,026 | ||||||||
Withdrawals and benefits | (5,286 | ) | (6,229 | ) | (20,616 | ) | |||||
Change in market value, interest credited and interest income and other activity | 622 | 3,864 | (2,602 | ) | |||||||
Ending total account value | $ | 190,953 | $ | 188,145 | $ | 190,953 | |||||
Net additions (withdrawals) | $ | 1,370 | $ | 85 | $ | 5,410 | |||||
Institutional Investment Products: | |||||||||||
Beginning total account value | $ | 179,964 | $ | 179,641 | $ | 177,120 | |||||
Additions(1) | 2,061 | 969 | 16,664 | ||||||||
Withdrawals and benefits | (2,783 | ) | (3,495 | ) | (14,676 | ) | |||||
Change in market value, interest credited and interest income | 2,198 | 1,629 | 4,045 | ||||||||
Other(2) | (621 | ) | (1,624 | ) | (2,334 | ) | |||||
Ending total account value | $ | 180,819 | $ | 177,120 | $ | 180,819 | |||||
Net additions (withdrawals) | $ | (722 | ) | $ | (2,526 | ) | $ | 1,988 |
(1) | Additions primarily include: group annuities calculated based on premiums received; longevity reinsurance contracts calculated as the present value of future projected benefits; and investment-only stable value contracts calculated as the fair value of customers’ funds held in a client-owned trust. |
(2) | “Other” activity includes the effect of foreign exchange rate changes associated with our United Kingdom longevity reinsurance business and changes in asset balances for externally-managed accounts. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(in millions) | ||||||||
Operating results: | ||||||||
Revenues | $ | 706 | $ | 733 | ||||
Expenses | 541 | 528 | ||||||
Adjusted operating income | 165 | 205 | ||||||
Realized investment gains (losses), net, and related adjustments | 8 | 6 | ||||||
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | 31 | 5 | ||||||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 204 | $ | 216 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(in millions) | ||||||||
Revenues by type: | ||||||||
Asset management fees by source: | ||||||||
Institutional customers | $ | 242 | $ | 228 | ||||
Retail customers(1) | 169 | 189 | ||||||
General account | 113 | 113 | ||||||
Total asset management fees | 524 | 530 | ||||||
Other related revenues by source: | ||||||||
Incentive fees | 45 | 31 | ||||||
Transaction fees | 3 | 5 | ||||||
Strategic investing | 4 | 16 | ||||||
Commercial mortgage(2) | 19 | 20 | ||||||
Total other related revenues(3) | 71 | 72 | ||||||
Service, distribution and other revenues(4) | 111 | 131 | ||||||
Total revenues | $ | 706 | $ | 733 |
(1) | Consists of fees from: individual mutual funds and variable annuities and variable life insurance separate account assets; funds invested in proprietary mutual funds through our defined contribution plan products; and third-party sub-advisory relationships. Revenues from fixed annuities and the fixed-rate accounts of variable annuities and variable life insurance are included in the general account. |
(2) | Includes mortgage origination and spread lending revenues of our commercial mortgage origination and servicing business. |
(3) | Future revenues will be impacted by the level and diversification of our strategic investments, the commercial real estate market, and other domestic and international markets. |
(4) | Includes payments from Wells Fargo under an agreement dated as of July 30, 2004, implementing arrangements with respect to money market mutual funds in connection with the combination of our retail securities brokerage and clearing operations with those of Wells Fargo. The agreement extends for ten years after termination of the Wachovia Securities joint venture, which occurred on December 31, 2009. The revenue from Wells Fargo under this agreement was $21 million and $19 million for the three months ended March 31, 2016 and 2015. |
March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||
(in billions) | ||||||||||||
Assets Under Management (at fair market value): | ||||||||||||
Institutional customers: | ||||||||||||
Equity | $ | 59.2 | $ | 59.9 | $ | 65.4 | ||||||
Fixed income | 304.1 | 289.9 | 278.7 | |||||||||
Real estate | 40.3 | 39.3 | 36.8 | |||||||||
Institutional customers(1) | 403.6 | 389.1 | 380.9 | |||||||||
Retail customers: | ||||||||||||
Equity | 116.0 | 121.4 | 129.7 | |||||||||
Fixed income | 80.5 | 73.7 | 66.4 | |||||||||
Real estate | 2.1 | 2.2 | 2.3 | |||||||||
Retail customers(2) | 198.6 | 197.3 | 198.4 | |||||||||
General account: | ||||||||||||
Equity | 6.4 | 7.4 | 8.1 | |||||||||
Fixed income | 392.4 | 367.5 | 372.5 | |||||||||
Real estate | 2.0 | 1.8 | 1.8 | |||||||||
General account | 400.8 | 376.7 | 382.4 | |||||||||
Total assets under management | $ | 1,003.0 | $ | 963.1 | $ | 961.7 |
(1) | Consists of third-party institutional assets and group insurance contracts. |
(2) | Consists of: individual mutual funds and variable annuities and variable life insurance separate account assets; funds invested in proprietary mutual funds through our defined contribution plan products; and third-party sub-advisory relationships. Fixed annuities and the fixed-rate accounts of variable annuities and variable life insurance are included in the general account. |
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||
2016 | 2015 | 2016 | |||||||||
(in billions) | |||||||||||
Institutional Customers: | |||||||||||
Beginning Assets Under Management | $ | 389.1 | $ | 370.0 | $ | 380.9 | |||||
Net additions (withdrawals), excluding money market activity: | |||||||||||
Third-party | (2.6 | ) | 3.7 | 14.9 | |||||||
Affiliated | 1.3 | (0.7 | ) | (2.8 | ) | ||||||
Total | (1.3 | ) | 3.0 | 12.1 | |||||||
Market appreciation (depreciation) | 13.7 | 7.7 | 8.6 | ||||||||
Other increases (decreases)(1) | 2.1 | 0.2 | 2.0 | ||||||||
Ending Assets Under Management | $ | 403.6 | $ | 380.9 | $ | 403.6 | |||||
Retail Customers: | |||||||||||
Beginning Assets Under Management | $ | 197.3 | $ | 186.1 | $ | 198.4 | |||||
Net additions (withdrawals), excluding money market activity: | |||||||||||
Third-party | (0.5 | ) | 4.0 | (3.7 | ) | ||||||
Affiliated | 1.5 | 2.8 | 7.9 | ||||||||
Total | 1.0 | 6.8 | 4.2 | ||||||||
Market appreciation (depreciation) | (0.4 | ) | 5.8 | (4.8 | ) | ||||||
Other increases (decreases)(1) | 0.7 | (0.3 | ) | 0.8 | |||||||
Ending Assets Under Management | $ | 198.6 | $ | 198.4 | $ | 198.6 | |||||
General Account: | |||||||||||
Beginning Assets Under Management | $ | 376.7 | $ | 377.4 | $ | 382.4 | |||||
Net additions (withdrawals), excluding money market activity: | |||||||||||
Third-party | 0.0 | 0.0 | 0.0 | ||||||||
Affiliated | 0.7 | (1.1 | ) | 0.7 | |||||||
Total | 0.7 | (1.1 | ) | 0.7 | |||||||
Market appreciation (depreciation) | 15.0 | 5.3 | 8.2 | ||||||||
Other increases (decreases)(1) | 8.4 | 0.8 | 9.5 | ||||||||
Ending Assets Under Management | $ | 400.8 | $ | 382.4 | $ | 400.8 |
(1) | Includes the effect of foreign exchange rate changes, net money market activity, impact of acquired business and transfers from/(to) the Retirement segment as a result of changes in the client contract form. The impact from foreign currency fluctuations, which primarily impact the general account, resulted in gains of $6.7 billion and losses of $0.6 billion for the three months ended March 31, 2016 and 2015, respectively, and gains of $5.6 billion for the twelve months ended March 31, 2016. |
March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Co-Investments: | |||||||
Real estate | $ | 197 | $ | 252 | |||
Fixed income | 167 | 150 | |||||
Seed Investments: | |||||||
Real estate | 55 | 33 | |||||
Public equity | 279 | 280 | |||||
Fixed income | 212 | 163 | |||||
Total | $ | 910 | $ | 878 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Operating results: | |||||||
Revenues | $ | 1,366 | $ | 1,351 | |||
Benefits and expenses | 1,246 | 1,235 | |||||
Adjusted operating income | 120 | 116 | |||||
Realized investment gains (losses), net, and related adjustments | 312 | 294 | |||||
Related charges | (180 | ) | (148 | ) | |||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 252 | $ | 262 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Prudential Advisors | Third Party | Total | Prudential Advisors | Third Party | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Term Life | $ | 8 | $ | 40 | $ | 48 | $ | 8 | $ | 41 | $ | 49 | ||||||||||||
Guaranteed Universal Life(1) | 7 | 44 | 51 | 7 | 33 | 40 | ||||||||||||||||||
Other Universal Life(1) | 8 | 12 | 20 | 3 | 14 | 17 | ||||||||||||||||||
Variable Life | 6 | 20 | 26 | 7 | 11 | 18 | ||||||||||||||||||
Total | $ | 29 | $ | 116 | $ | 145 | $ | 25 | $ | 99 | $ | 124 |
(1) | Single pay life annualized new business premiums, which include 10% of excess (unscheduled) premiums, represented approximately 13% and 9% of Guaranteed Universal Life and 5% and 9% of Other Universal Life annualized new business premiums for the three months ended March 31, 2016 and 2015, respectively. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Operating results: | |||||||
Revenues | $ | 1,320 | $ | 1,277 | |||
Benefits and expenses | 1,294 | 1,247 | |||||
Adjusted operating income | 26 | 30 | |||||
Realized investment gains (losses), net, and related adjustments | 0 | 29 | |||||
Related charges | 0 | (1 | ) | ||||
Income from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 26 | $ | 58 | |||
Benefits ratio(1): | |||||||
Group life | 89.4 | % | 92.8 | % | |||
Group disability | 82.2 | % | 72.2 | % | |||
Total group insurance | 88.1 | % | 89.4 | % | |||
Administrative operating expense ratio(2): | |||||||
Group life | 10.8 | % | 10.6 | % | |||
Group disability | 31.9 | % | 32.7 | % |
(1) | Ratio of policyholder benefits to earned premiums plus policy charges and fee income. |
(2) | Ratio of general and administrative expenses (excluding commissions) to gross premiums plus policy charges and fee income. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Annualized new business premiums(1): | |||||||
Group life | $ | 232 | $ | 131 | |||
Group disability | 79 | 31 | |||||
Total | $ | 311 | $ | 162 |
(1) | Amounts exclude new premiums resulting from rate changes on existing policies, from additional coverage under our Servicemembers’ Group Life Insurance contract and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. |
March 31, 2016 | December 31, 2015 | ||||||
(in billions) | |||||||
Instruments hedging foreign currency exchange rate exposure on U.S. dollar-equivalent earnings: | |||||||
Forward currency hedging program(1) | $ | 1.8 | $ | 1.9 | |||
Instruments hedging foreign currency exchange rate exposure on U.S. dollar-equivalent equity: | |||||||
U.S. dollar-denominated assets held in yen-based entities(2): | |||||||
Available-for-sale U.S. dollar-denominated investments, at amortized cost | 13.0 | 13.0 | |||||
Other | 0.1 | 0.1 | |||||
Subtotal | 13.1 | 13.1 | |||||
Dual currency and synthetic dual currency investments(3) | 0.8 | 0.8 | |||||
Total instruments hedging foreign currency exchange rate exposure on U.S. dollar-equivalent equity | 13.9 | 13.9 | |||||
Total hedges | $ | 15.7 | $ | 15.8 |
(1) | Represents the notional amount of forward currency contracts outstanding. |
(2) | Excludes $31.3 billion and $30.5 billion as of March 31, 2016 and December 31, 2015, respectively, of U.S. dollar assets supporting U.S. dollar liabilities related to U.S. dollar-denominated products issued by our Japanese insurance operations. |
(3) | Dual currency and synthetic dual currency investments are held by our yen-based entities in the form of fixed maturities and loans with a yen-denominated principal component and U.S. dollar-denominated interest income. The amounts shown represent the present value of future U.S. dollar cash flows. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
International Insurance Segment: | |||||||
Impact of intercompany arrangement(1) | $ | 27 | $ | 80 | |||
Corporate and Other operations: | |||||||
Impact of intercompany arrangement(1) | (27 | ) | (80 | ) | |||
Settlement gains (losses) on forward currency contracts | 36 | 83 | |||||
Net benefit (detriment) to Corporate and Other operations | 9 | 3 | |||||
Net impact on consolidated revenues and adjusted operating income | $ | 36 | $ | 83 |
(1) | Represents the difference between non-U.S. dollar-denominated earnings translated on the basis of actual weighted average monthly currency exchange rates versus fixed currency exchange rates determined in connection with the foreign currency income hedging program. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Operating results: | |||||||
Revenues: | |||||||
Life Planner operations | $ | 2,559 | $ | 2,442 | |||
Gibraltar Life and Other operations | 2,485 | 2,464 | |||||
Total revenues | 5,044 | 4,906 | |||||
Benefits and expenses: | |||||||
Life Planner operations | 2,149 | 2,003 | |||||
Gibraltar Life and Other operations | 2,116 | 2,069 | |||||
Total benefits and expenses | 4,265 | 4,072 | |||||
Adjusted operating income: | |||||||
Life Planner operations | 410 | 439 | |||||
Gibraltar Life and Other operations | 369 | 395 | |||||
Total adjusted operating income | 779 | 834 | |||||
Realized investment gains (losses), net, and related adjustments(1) | 507 | 440 | |||||
Related charges | (5 | ) | (23 | ) | |||
Investment gains (losses) on trading account assets supporting insurance liabilities, net | (106 | ) | 56 | ||||
Change in experience-rated contractholder liabilities due to asset value changes | 106 | (56 | ) | ||||
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | (8 | ) | 8 | ||||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | 1,273 | $ | 1,259 |
(1) | Includes gains (losses) from changes in value of certain assets and liabilities relating to foreign currency exchange movements that are economically matched, as discussed above. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Annualized new business premiums: | |||||||
On an actual exchange rate basis: | |||||||
Life Planner operations | $ | 335 | $ | 316 | |||
Gibraltar Life | 409 | 357 | |||||
Total | $ | 744 | $ | 673 | |||
On a constant exchange rate basis: | |||||||
Life Planner operations | $ | 356 | $ | 326 | |||
Gibraltar Life | 425 | 369 | |||||
Total | $ | 781 | $ | 695 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||||||||||
Life | Accident & Health | Retirement(1) | Annuity | Total | Life | Accident & Health | Retirement(1) | Annuity | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||
Life Planner | $ | 208 | $ | 32 | $ | 96 | $ | 20 | $ | 356 | $ | 201 | $ | 30 | $ | 82 | $ | 13 | $ | 326 | |||||||||||||||||||
Gibraltar Life: | |||||||||||||||||||||||||||||||||||||||
Life Consultants | 94 | 15 | 27 | 33 | 169 | 78 | 17 | 33 | 25 | 153 | |||||||||||||||||||||||||||||
Banks(2) | 128 | 0 | 22 | 49 | 199 | 111 | 1 | 3 | 42 | 157 | |||||||||||||||||||||||||||||
Independent Agency | 27 | 4 | 13 | 13 | 57 | 21 | 5 | 17 | 16 | 59 | |||||||||||||||||||||||||||||
Subtotal | 249 | 19 | 62 | 95 | 425 | 210 | 23 | 53 | 83 | 369 | |||||||||||||||||||||||||||||
Total | $ | 457 | $ | 51 | $ | 158 | $ | 115 | $ | 781 | $ | 411 | $ | 53 | $ | 135 | $ | 96 | $ | 695 |
(1) | Includes retirement income, endowment and savings variable universal life. |
(2) | Single pay life annualized new business premiums, which include 10% of first year premiums, and 3-year limited pay annualized new business premiums, which include 100% of new business premiums, represented 4% and 49%, respectively, of total Japanese bank distribution channel annualized new business premiums, excluding annuity products, for the three months ended March 31, 2016, and 6% and 47%, respectively, of total Japanese bank distribution channel annualized new business premiums, excluding annuity products, for the three months ended March 31, 2015. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Operating results: | |||||||
Capital debt interest expense | $ | (174 | ) | $ | (192 | ) | |
Operating debt interest expense, net of investment income | (4 | ) | 35 | ||||
Pension and employee benefits | 20 | 32 | |||||
Other corporate activities(1) | (154 | ) | (128 | ) | |||
Adjusted operating income | (312 | ) | (253 | ) | |||
Realized investment gains (losses), net, and related adjustments | (1,745 | ) | (925 | ) | |||
Related charges | 32 | 15 | |||||
Divested businesses | 31 | 75 | |||||
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | 2 | 0 | |||||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | (1,992 | ) | $ | (1,088 | ) |
(1) | Includes consolidating adjustments. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Long-Term Care | $ | 33 | $ | 56 | |||
Other | (2 | ) | 19 | ||||
Total divested businesses income (loss) excluded from adjusted operating income | $ | 31 | $ | 75 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(in millions) | ||||||||
U.S. GAAP results: | ||||||||
Revenues | $ | 1,129 | $ | 1,719 | ||||
Benefits and expenses | 1,202 | 1,741 | ||||||
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ | (73 | ) | $ | (22 | ) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Retirement Segment: | |||||||
Investment gains (losses) on: | |||||||
Trading account assets supporting insurance liabilities, net | $ | 322 | $ | 27 | |||
Derivatives | (108 | ) | 110 | ||||
Commercial mortgages and other loans | (3 | ) | 3 | ||||
Change in experience-rated contractholder liabilities due to asset value changes(1)(2) | (236 | ) | (141 | ) | |||
Net gains (losses) | $ | (25 | ) | $ | (1 | ) | |
International Insurance Segment: | |||||||
Investment gains (losses) on trading account assets supporting insurance liabilities, net | $ | (106 | ) | $ | 56 | ||
Change in experience-rated contractholder liabilities due to asset value changes | 106 | (56 | ) | ||||
Net gains (losses) | $ | 0 | $ | 0 | |||
Total: | |||||||
Investment gains (losses) on: | |||||||
Trading account assets supporting insurance liabilities, net | $ | 216 | $ | 83 | |||
Derivatives | (108 | ) | 110 | ||||
Commercial mortgages and other loans | (3 | ) | 3 | ||||
Change in experience-rated contractholder liabilities due to asset value changes(1)(2) | (130 | ) | (197 | ) | |||
Net gains (losses) | $ | (25 | ) | $ | (1 | ) |
(1) | Decreases to contractholder liabilities due to asset value changes are limited by certain floors and therefore do not reflect cumulative declines in recorded asset values of less than $1 million and $1 million as of March 31, 2016 and 2015, respectively. We have recovered and expect to recover in future periods these declines in recorded asset values through subsequent increases in recorded asset values or reductions in crediting rates on contractholder liabilities. |
(2) | Included in the amounts above related to the change in the liability to contractholders as a result of commercial mortgage and other loans are increases of $39 million and $5 million for the three months ended March 31, 2016 and 2015, respectively. As prescribed by U.S. GAAP, changes in the fair value of commercial mortgage and other loans held for investment in our general account, other than when associated with impairments, are not recognized in income in the current period, while the impact of these changes in fair value are reflected as a change in the liability to fully participating contractholders in the current period. |
As of March 31, 2016 | As of December 31, 2015 | ||||||||||||||||||||||||||||||
PFI excluding Closed Block Division | Closed Block Division | PFI excluding Closed Block Division | Closed Block Division | ||||||||||||||||||||||||||||
Total at Fair Value | Total Level 3(2) | Total at Fair Value | Total Level 3(2) | Total at Fair Value | Total Level 3(2) | Total at Fair Value | Total Level 3(2) | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 275,106 | $ | 5,839 | $ | 39,423 | $ | 1,135 | $ | 252,528 | $ | 4,598 | $ | 37,795 | $ | 1,022 | |||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||
Fixed maturities | 24,098 | 880 | 175 | 0 | 29,091 | 840 | 176 | 0 | |||||||||||||||||||||||
Equity securities | 2,134 | 493 | 120 | 88 | 2,240 | 537 | 112 | 52 | |||||||||||||||||||||||
All other(3) | 2,872 | 1 | 0 | 0 | 3,361 | 5 | 0 | 0 | |||||||||||||||||||||||
Subtotal | 29,104 | 1,374 | 295 | 88 | 34,692 | 1,382 | 288 | 52 | |||||||||||||||||||||||
Equity securities, available-for-sale | 6,827 | 283 | 2,573 | 9 | 6,547 | 264 | 2,727 | 2 | |||||||||||||||||||||||
Commercial mortgage and other loans | 286 | 0 | 0 | 0 | 274 | 0 | 0 | 0 | |||||||||||||||||||||||
Other long-term investments(1) | 172 | 19 | 0 | 0 | 172 | 39 | 10 | 10 | |||||||||||||||||||||||
Short-term investments | 2,708 | 0 | 395 | 0 | 6,270 | 0 | 1,217 | 0 | |||||||||||||||||||||||
Cash equivalents | 16,522 | 0 | 1,887 | 0 | 13,143 | 0 | 1,065 | 0 | |||||||||||||||||||||||
Other assets | 45 | 36 | 0 | 0 | 16 | 7 | 0 | 0 | |||||||||||||||||||||||
Subtotal excluding separate account assets | 330,770 | 7,551 | 44,573 | 1,232 | 313,642 | 6,290 | 43,102 | 1,086 | |||||||||||||||||||||||
Separate account assets(1) | 255,573 | 2,168 | 0 | 0 | 259,909 | 1,995 | 0 | 0 | |||||||||||||||||||||||
Total assets | $ | 586,343 | $ | 9,719 | $ | 44,573 | $ | 1,232 | $ | 573,551 | $ | 8,285 | $ | 43,102 | $ | 1,086 | |||||||||||||||
Future policy benefits | $ | 11,069 | $ | 11,069 | $ | 0 | $ | 0 | $ | 8,434 | $ | 8,434 | $ | 0 | $ | 0 | |||||||||||||||
Other liabilities(3) | 436 | 2 | 1 | 0 | 32 | 2 | 1 | 0 | |||||||||||||||||||||||
Notes issued by consolidated variable interest entities (“VIEs”) | 2,946 | 2,946 | 0 | 0 | 8,597 | 8,597 | 0 | 0 | |||||||||||||||||||||||
Total liabilities | $ | 14,451 | $ | 14,017 | $ | 1 | $ | 0 | $ | 17,063 | $ | 17,033 | $ | 1 | $ | 0 |
(1) | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. |
(2) | The amount of Level 3 assets taken as a percentage of total assets measured at fair value on a recurring basis for PFI excluding the Closed Block division and for the Closed Block division totaled 1.7% and 2.8%, respectively, as of March 31, 2016, and 1.4% and 2.5%, respectively, as of December 31, 2015. |
(3) | “All other” and “Other liabilities” primarily include derivatives. The amounts classified as Level 3 exclude the impact of netting. |
• | sale of investments; |
• | maturities of foreign denominated investments; |
• | adjustments to the cost basis of investments for OTTI; |
• | recognition of OTTI in earnings for foreign denominated securities that are approaching maturity and are in an unrealized loss position due to foreign currency exchange rate movements; |
• | net changes in the allowance for losses, certain restructurings and foreclosures on commercial mortgage and other loans; and |
• | fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Realized investment gains (losses), net: | |||||||
PFI excluding Closed Block division | $ | 1,979 | $ | 1,988 | |||
Closed Block division | (98 | ) | 373 | ||||
Consolidated realized investment gains (losses), net | $ | 1,881 | $ | 2,361 | |||
PFI excluding Closed Block Division: | |||||||
Realized investment gains (losses), net: | |||||||
Fixed maturity securities | $ | (32 | ) | $ | 360 | ||
Equity securities | (5 | ) | 45 | ||||
Commercial mortgage and other loans | 25 | 9 | |||||
Derivative instruments | 2,027 | 1,545 | |||||
Other | (36 | ) | 29 | ||||
Total | $ | 1,979 | $ | 1,988 | |||
Related adjustments | (561 | ) | (326 | ) | |||
Realized investment gains (losses), net, and related adjustments | 1,418 | 1,662 | |||||
Related charges | (1,080 | ) | (611 | ) | |||
Realized investment gains (losses), net, and related charges and adjustments | $ | 338 | $ | 1,051 | |||
Closed Block Division: | |||||||
Realized investment gains (losses), net: | |||||||
Fixed maturity securities | $ | (41 | ) | $ | 108 | ||
Equity securities | 33 | 76 | |||||
Commercial mortgage and other loans | 2 | 2 | |||||
Derivative instruments | (83 | ) | 193 | ||||
Other | (9 | ) | (6 | ) | |||
Total | $ | (98 | ) | $ | 373 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Realized investment gains (losses), net—Fixed Maturity Securities—PFI excluding Closed Block Division | |||||||
Gross realized investment gains: | |||||||
Gross gains on sales and maturities(1) | $ | 253 | $ | 408 | |||
Gross realized investment losses: | |||||||
Net OTTI recognized in earnings(2) | (77 | ) | (4 | ) | |||
Gross losses on sales and maturities(1) | (205 | ) | (41 | ) | |||
Credit related losses on sales | (3 | ) | (3 | ) | |||
Total gross realized investment losses | (285 | ) | (48 | ) | |||
Realized investment gains (losses), net—Fixed Maturity Securities | $ | (32 | ) | $ | 360 | ||
Net gains (losses) on sales and maturities—Fixed Maturity Securities(1) | $ | 48 | $ | 367 |
(1) | Amounts exclude OTTI and credit-related losses through sales of investments due to expected near-term credit conditions of an underlying issuer. During 2016, fixed maturity prepayment gains were reclassified to “Net investment income.” Prior periods were not restated. |
(2) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OTTI recorded in earnings—PFI excluding Closed Block Division(1) | |||||||
Public fixed maturity securities | $ | 36 | $ | 3 | |||
Private fixed maturity securities | 41 | 1 | |||||
Total fixed maturity securities | 77 | 4 | |||||
Equity securities | 8 | 5 | |||||
Other invested assets(2) | 24 | 19 | |||||
Total | $ | 109 | $ | 28 |
(1) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
(2) | Includes OTTI relating to investments in joint ventures and partnerships. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OTTI on fixed maturity securities recorded in earnings—PFI excluding Closed Block Division(1) | |||||||
Due to credit events or adverse conditions of the respective issuer(2) | $ | 52 | $ | 4 | |||
Due to other accounting guidelines(3) | 25 | 0 | |||||
Total | $ | 77 | $ | 4 |
(1) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
(2) | Represents circumstances where we believe credit events or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to the investment. The amount of the impairment recorded in earnings is the difference between the amortized cost of the debt security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. |
(3) | Primarily represents circumstances where securities are being actively marketed for sale by the company, and securities with losses from foreign currency exchange rate movements approach maturity. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Realized investment gains (losses), net—Fixed Maturity Securities—Closed Block Division | |||||||
Gross realized investment gains: | |||||||
Gross gains on sales and maturities(1) | $ | 42 | $ | 125 | |||
Gross realized investment losses: | |||||||
Net OTTI recognized in earnings(2) | (49 | ) | (4 | ) | |||
Gross losses on sales and maturities(1) | (31 | ) | (13 | ) | |||
Credit related losses on sales | (3 | ) | 0 | ||||
Total gross realized investment losses | (83 | ) | (17 | ) | |||
Realized investment gains (losses), net—Fixed Maturity Securities | $ | (41 | ) | $ | 108 | ||
Net gains (losses) on sales and maturities—Fixed Maturity Securities(1) | $ | 11 | $ | 112 |
(1) | Amounts exclude OTTI and credit related losses through sales of investments due to expected near term credit conditions of an underlying issuer. During 2016, fixed maturity prepayment gains were reclassified to “Net investment income.” Prior periods were not restated. |
(2) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OTTI recorded in earnings—Closed Block Division(1) | |||||||
Public fixed maturity securities | $ | 10 | $ | 2 | |||
Private fixed maturity securities | 39 | 2 | |||||
Total fixed maturity securities | 49 | 4 | |||||
Equity securities | 3 | 1 | |||||
Other invested assets(2) | 8 | 6 | |||||
Total | $ | 60 | $ | 11 |
(1) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
(2) | Includes OTTI relating to investments in joint ventures and partnerships. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OTTI on fixed maturity securities recorded in earnings—Closed Block Division(1) | |||||||
Due to credit events or adverse conditions of the respective issuer(2) | $ | 48 | $ | 4 | |||
Due to other accounting guidelines | 1 | 0 | |||||
Total | $ | 49 | $ | 4 |
(1) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
(2) | Represents circumstances where we believe credit events or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to the investment. The amount of the impairment recorded in earnings is the difference between the amortized cost of the debt security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. |
March 31, 2016 | |||||||||||||||
PFI Excluding Closed Block Division | Closed Block Division | Total | |||||||||||||
($ in millions) | |||||||||||||||
Fixed maturities: | |||||||||||||||
Public, available-for-sale, at fair value | $ | 238,657 | 65.5 | % | $ | 24,935 | $ | 263,592 | |||||||
Public, held-to-maturity, at amortized cost | 1,917 | 0.5 | 0 | 1,917 | |||||||||||
Private, available-for-sale, at fair value | 36,262 | 9.9 | 14,489 | 50,751 | |||||||||||
Private, held-to-maturity, at amortized cost | 494 | 0.1 | 0 | 494 | |||||||||||
Trading account assets supporting insurance liabilities, at fair value | 21,447 | 5.9 | 0 | 21,447 | |||||||||||
Other trading account assets, at fair value | 1,610 | 0.4 | 294 | 1,904 | |||||||||||
Equity securities, available-for-sale, at fair value | 6,814 | 1.9 | 2,574 | 9,388 | |||||||||||
Commercial mortgage and other loans, at book value | 40,775 | 11.2 | 9,695 | 50,470 | |||||||||||
Policy loans, at outstanding balance | 7,042 | 1.9 | 4,763 | 11,805 | |||||||||||
Other long-term investments(1) | 6,927 | 1.9 | 2,942 | 9,869 | |||||||||||
Short-term investments | 2,833 | 0.8 | 646 | 3,479 | |||||||||||
Total general account investments | 364,778 | 100.0 | % | 60,338 | 425,116 | ||||||||||
Invested assets of other entities and operations(2) | 7,304 | 0 | 7,304 | ||||||||||||
Total investments | $ | 372,082 | $ | 60,338 | $ | 432,420 |
December 31, 2015 | |||||||||||||||
PFI Excluding Closed Block Division | Closed Block Division | Total | |||||||||||||
($ in millions) | |||||||||||||||
Fixed maturities: | |||||||||||||||
Public, available-for-sale, at fair value | $ | 216,628 | 63.1 | % | $ | 23,505 | $ | 240,133 | |||||||
Public, held-to-maturity, at amortized cost | 1,834 | 0.5 | 0 | 1,834 | |||||||||||
Private, available-for-sale, at fair value | 35,767 | 10.4 | 14,290 | 50,057 | |||||||||||
Private, held-to-maturity, at amortized cost | 474 | 0.1 | 0 | 474 | |||||||||||
Trading account assets supporting insurance liabilities, at fair value | 20,522 | 6.0 | 0 | 20,522 | |||||||||||
Other trading account assets, at fair value | 1,561 | 0.5 | 288 | 1,849 | |||||||||||
Equity securities, available-for-sale, at fair value | 6,537 | 1.9 | 2,726 | 9,263 | |||||||||||
Commercial mortgage and other loans, at book value | 40,486 | 11.8 | 9,771 | 50,257 | |||||||||||
Policy loans, at outstanding balance | 6,867 | 2.0 | 4,790 | 11,657 | |||||||||||
Other long-term investments(1) | 6,549 | 1.9 | 2,921 | 9,470 | |||||||||||
Short-term investments | 6,250 | 1.8 | 1,467 | 7,717 | |||||||||||
Total general account investments | 343,475 | 100.0 | % | 59,758 | 403,233 | ||||||||||
Invested assets of other entities and operations(2) | 13,959 | 0 | 13,959 | ||||||||||||
Total investments | $ | 357,434 | $ | 59,758 | $ | 417,192 |
(1) | Other long-term investments consist of real estate and non-real estate-related investments in joint ventures and partnerships, investment real estate held through direct ownership and other miscellaneous investments. For additional information regarding these investments, see “—Other Long-Term Investments” below. |
(2) | Includes invested assets of our asset management and derivative operations. Excludes assets of our asset management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet. For additional information regarding these investments, see “—Invested Assets of Other Entities and Operations” below. |
March 31, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Fixed maturities: | ||||||||
Public, available-for-sale, at fair value | $ | 122,702 | $ | 109,257 | ||||
Public, held-to-maturity, at amortized cost | 1,917 | 1,834 | ||||||
Private, available-for-sale, at fair value | 9,977 | 9,747 | ||||||
Private, held-to-maturity, at amortized cost | 494 | 474 | ||||||
Trading account assets supporting insurance liabilities, at fair value | 2,069 | 2,020 | ||||||
Other trading account assets, at fair value | 585 | 647 | ||||||
Equity securities, available-for-sale, at fair value | 2,699 | 2,660 | ||||||
Commercial mortgage and other loans, at book value | 10,085 | 9,756 | ||||||
Policy loans, at outstanding balance | 2,364 | 2,208 | ||||||
Other long-term investments(1) | 2,381 | 1,742 | ||||||
Short-term investments | 217 | 417 | ||||||
Total Japanese general account investments | $ | 155,490 | $ | 140,762 |
(1) | Other long-term investments consist of real estate and non-real estate-related investments in joint ventures and partnerships, investment real estate held through direct ownership, derivatives and other miscellaneous investments. |
Three Months Ended March 31, 2016 | ||||||||||||||||||||
PFI Excluding Closed Block Division | Closed Block Division | Total | ||||||||||||||||||
Yield(1) | Amount | Yield(1) | Amount | Yield(1) | Amount | |||||||||||||||
($ in millions) | ||||||||||||||||||||
Fixed maturities | 3.90 | % | $ | 2,268 | 4.91 | % | $ | 423 | 4.03 | % | $ | 2,691 | ||||||||
Trading account assets supporting insurance liabilities | 3.60 | 188 | 0.00 | 0 | 3.60 | 188 | ||||||||||||||
Equity securities | 5.02 | 64 | 3.45 | 16 | 4.61 | 80 | ||||||||||||||
Commercial mortgage and other loans | 4.29 | 433 | 4.94 | 119 | 4.41 | 552 | ||||||||||||||
Policy loans | 4.85 | 84 | 5.92 | 70 | 5.28 | 154 | ||||||||||||||
Short-term investments and cash equivalents | 0.59 | 27 | 1.94 | 6 | 0.65 | 33 | ||||||||||||||
Other investments | 3.13 | 65 | 2.31 | 18 | 2.90 | 83 | ||||||||||||||
Gross investment income before investment expenses | 3.77 | 3,129 | 4.73 | 652 | 3.91 | 3,781 | ||||||||||||||
Investment expenses | (0.13 | ) | (96 | ) | (0.26 | ) | (40 | ) | (0.15 | ) | (136 | ) | ||||||||
Investment income after investment expenses | 3.64 | % | 3,033 | 4.47 | % | 612 | 3.76 | % | 3,645 | |||||||||||
Investment results of other entities and operations(2) | 25 | 0 | 25 | |||||||||||||||||
Total investment income | $ | 3,058 | $ | 612 | $ | 3,670 |
Three Months Ended March 31, 2015 | ||||||||||||||||||||
PFI Excluding Closed Block Division | Closed Block Division | Total | ||||||||||||||||||
Yield(1) | Amount | Yield(1) | Amount | Yield(1) | Amount | |||||||||||||||
($ in millions) | ||||||||||||||||||||
Fixed maturities | 3.96 | % | $ | 2,200 | 4.78 | % | $ | 427 | 4.07 | % | $ | 2,627 | ||||||||
Trading account assets supporting insurance liabilities | 3.68 | 187 | 0.00 | 0 | 3.68 | 187 | ||||||||||||||
Equity securities | 5.21 | 61 | 6.26 | 35 | 5.54 | 96 | ||||||||||||||
Commercial mortgage and other loans | 4.55 | 419 | 5.17 | 122 | 4.68 | 541 | ||||||||||||||
Policy loans | 4.88 | 83 | 5.84 | 71 | 5.28 | 154 | ||||||||||||||
Short-term investments and cash equivalents | 0.22 | 9 | 1.37 | 3 | 0.27 | 12 | ||||||||||||||
Other investments | 7.85 | 169 | 10.72 | 84 | 8.62 | 253 | ||||||||||||||
Gross investment income before investment expenses | 3.97 | 3,128 | 5.27 | 742 | 4.17 | 3,870 | ||||||||||||||
Investment expenses | (0.13 | ) | (93 | ) | (0.22 | ) | (33 | ) | (0.15 | ) | (126 | ) | ||||||||
Investment income after investment expenses | 3.84 | % | 3,035 | 5.05 | % | 709 | 4.02 | % | 3,744 | |||||||||||
Investment results of other entities and operations(2) | 25 | 0 | 25 | |||||||||||||||||
Total investment income | $ | 3,060 | $ | 709 | $ | 3,769 |
(1) | Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. |
(2) | Includes investment income of our asset management operations and derivative operations. |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||
Yield(1) | Amount | Yield(1) | Amount | ||||||||||
($ in millions) | |||||||||||||
Fixed maturities | 4.55 | % | $ | 1,453 | 4.61 | % | $ | 1,411 | |||||
Trading account assets supporting insurance liabilities | 3.71 | 175 | 3.80 | 175 | |||||||||
Equity securities | 5.64 | 50 | 5.93 | 47 | |||||||||
Commercial mortgage and other loans | 4.26 | 325 | 4.59 | 327 | |||||||||
Policy loans | 5.33 | 62 | 5.37 | 62 | |||||||||
Short-term investments and cash equivalents | 0.58 | 25 | 0.22 | 8 | |||||||||
Other investments | 3.51 | 49 | 7.40 | 114 | |||||||||
Gross investment income before investment expenses | 4.12 | 2,139 | 4.33 | 2,144 | |||||||||
Investment expenses | (0.13 | ) | (57 | ) | (0.13 | ) | (53 | ) | |||||
Investment income after investment expenses | 3.99 | % | 2,082 | 4.20 | % | 2,091 | |||||||
Investment results of other entities and operations(2) | 25 | 25 | |||||||||||
Total investment income | $ | 2,107 | $ | 2,116 |
(1) | Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. |
(2) | Includes investment income of our asset management operations and derivative operations. |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||
Yield(1) | Amount | Yield(1) | Amount | ||||||||||
($ in millions) | |||||||||||||
Fixed maturities | 3.10 | % | $ | 815 | 3.16 | % | $ | 789 | |||||
Trading account assets supporting insurance liabilities | 2.57 | 13 | 2.52 | 12 | |||||||||
Equity securities | 3.59 | 14 | 3.65 | 14 | |||||||||
Commercial mortgage and other loans | 4.38 | 108 | 4.43 | 92 | |||||||||
Policy loans | 3.86 | 22 | 3.82 | 21 | |||||||||
Short-term investments and cash equivalents | 0.90 | 2 | 0.29 | 1 | |||||||||
Other investments | 2.32 | 16 | 8.96 | 55 | |||||||||
Gross investment income before investment expenses | 3.18 | 990 | 3.35 | 984 | |||||||||
Investment expenses | (0.12 | ) | (39 | ) | (0.14 | ) | (40 | ) | |||||
Total investment income | 3.06 | % | $ | 951 | 3.21 | % | $ | 944 |
(1) | Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. |
March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Industry(1) | Amortized Cost | Gross Unrealized Gains(2) | Gross Unrealized Losses(2) | Fair Value | Amortized Cost | Gross Unrealized Gains(2) | Gross Unrealized Losses(2) | Fair Value | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Finance | $ | 22,310 | $ | 1,509 | $ | 162 | $ | 23,657 | $ | 21,505 | $ | 1,385 | $ | 224 | $ | 22,666 | ||||||||||||||||
Consumer non-cyclical | 21,795 | 2,448 | 172 | 24,071 | 20,732 | 2,073 | 408 | 22,397 | ||||||||||||||||||||||||
Utility | 18,177 | 1,851 | 187 | 19,841 | 17,369 | 1,423 | 393 | 18,399 | ||||||||||||||||||||||||
Capital goods | 11,201 | 1,121 | 148 | 12,174 | 10,503 | 978 | 241 | 11,240 | ||||||||||||||||||||||||
Consumer cyclical | 9,953 | 929 | 79 | 10,803 | 9,223 | 846 | 146 | 9,923 | ||||||||||||||||||||||||
Foreign agencies | 5,165 | 1,155 | 49 | 6,271 | 5,222 | 1,086 | 67 | 6,241 | ||||||||||||||||||||||||
Energy | 9,710 | 549 | 775 | 9,484 | 10,793 | 674 | 855 | 10,612 | ||||||||||||||||||||||||
Communications | 6,308 | 782 | 116 | 6,974 | 6,294 | 690 | 200 | 6,784 | ||||||||||||||||||||||||
Basic industry | 5,794 | 410 | 169 | 6,035 | 5,658 | 404 | 321 | 5,741 | ||||||||||||||||||||||||
Transportation | 6,740 | 718 | 67 | 7,391 | 6,536 | 605 | 105 | 7,036 | ||||||||||||||||||||||||
Technology | 3,474 | 279 | 48 | 3,705 | 3,459 | 278 | 72 | 3,665 | ||||||||||||||||||||||||
Industrial other | 3,602 | 300 | 33 | 3,869 | 3,547 | 245 | 73 | 3,719 | ||||||||||||||||||||||||
Total corporate securities | 124,229 | 12,051 | 2,005 | 134,275 | 120,841 | 10,687 | 3,105 | 128,423 | ||||||||||||||||||||||||
Foreign government(3) | 78,374 | 18,907 | 57 | 97,224 | 72,265 | 12,167 | 131 | 84,301 | ||||||||||||||||||||||||
Residential mortgage-backed | 4,780 | 378 | 1 | 5,157 | 4,861 | 353 | 6 | 5,208 | ||||||||||||||||||||||||
Asset-backed(4) | 7,320 | 142 | 127 | 7,335 | 6,873 | 195 | 69 | 6,999 | ||||||||||||||||||||||||
Commercial mortgage-backed | 7,442 | 353 | 4 | 7,791 | 7,300 | 160 | 37 | 7,423 | ||||||||||||||||||||||||
U.S. Government | 13,466 | 3,762 | 1 | 17,227 | 11,479 | 2,900 | 11 | 14,368 | ||||||||||||||||||||||||
State & Municipal(5) | 7,834 | 925 | 8 | 8,751 | 7,661 | 675 | 39 | 8,297 | ||||||||||||||||||||||||
Total(6) | $ | 243,445 | $ | 36,518 | $ | 2,203 | $ | 277,760 | $ | 231,280 | $ | 27,137 | $ | 3,398 | $ | 255,019 |
(1) | Investment data has been classified based on standard industry categorizations for domestic public holdings and similar classifications by industry for all other holdings. |
(2) | Includes $432 million of gross unrealized gains and $2 million of gross unrealized losses as of March 31, 2016, compared to $316 million of gross unrealized gains and $0 million of gross unrealized losses as of December 31, 2015, on securities classified as held-to-maturity. |
(3) | As of March 31, 2016 and December 31, 2015, based on amortized cost, 77% and 76% represent Japanese government bonds held by our Japanese insurance operations, respectively, with no other individual country representing more than 10% of the balance. |
(4) | Includes securities collateralized by sub-prime mortgages. See “—Asset-Backed Securities” below. |
(5) | Includes securities related to the Build America Bonds program. |
(6) | Excluded from the table above are securities held outside the general account in other entities and operations. For additional information regarding investments held outside the general account, see “—Invested Assets of Other Entities and Operations” below. Also excluded from the table above are fixed maturity securities classified as trading. See “—Trading Account Assets Supporting Insurance Liabilities” and “—Other Trading Account Assets” for additional information. |
March 31, 2016 | ||||||||||||||||||||||||||||
Lowest Rating Agency Rating | Total Amortized Cost | Total December 31, 2015 | ||||||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Collateralized by sub-prime mortgages(1) | $ | 0 | $ | 1 | $ | 61 | $ | 89 | $ | 942 | $ | 1,093 | $ | 1,141 | ||||||||||||||
Collateralized loan obligations | 4,482 | 115 | 0 | 0 | 0 | 4,597 | 4,280 | |||||||||||||||||||||
Collateralized by education loans(2) | 18 | 372 | 0 | 0 | 0 | 390 | 392 | |||||||||||||||||||||
Collateralized by credit cards | 189 | 0 | 3 | 0 | 0 | 192 | 201 | |||||||||||||||||||||
Collateralized by auto loans | 738 | 0 | 0 | 0 | 0 | 738 | 518 | |||||||||||||||||||||
Other asset-backed securities(3) | 26 | 94 | 65 | 13 | 112 | 310 | 341 | |||||||||||||||||||||
Total asset-backed securities(4) | $ | 5,453 | $ | 582 | $ | 129 | $ | 102 | $ | 1,054 | $ | 7,320 | $ | 6,873 |
(1) | While there is no market standard definition for securities collateralized by sub-prime mortgages, we define sub-prime mortgages as residential mortgages that are originated to weaker-quality obligors as indicated by weaker credit scores, as well as mortgages with higher loan-to-value ratios or limited documentation. |
(2) | All of the $390 million of education loans included above carry a Department of Education guaranty as of March 31, 2016. |
(3) | Includes asset-backed securities collateralized by bond obligations, aircraft, equipment leases, franchises and timeshares. |
(4) | Excluded from the table above are asset-backed securities held outside the general account in other entities and operations. Also excluded from the table above are asset-backed securities classified as trading. |
March 31, 2016 | ||||||||||||||||||||||||||||
Lowest Rating Agency Rating | Total Fair Value | Total December 31, 2015 | ||||||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Collateralized by sub-prime mortgages(1) | $ | 0 | $ | 1 | $ | 59 | $ | 88 | $ | 966 | $ | 1,114 | $ | 1,189 | ||||||||||||||
Collateralized loan obligations | 4,443 | 115 | 0 | 0 | 0 | 4,558 | 4,317 | |||||||||||||||||||||
Collateralized by education loans(2) | 18 | 356 | 0 | 0 | 0 | 374 | 395 | |||||||||||||||||||||
Collateralized by credit cards | 196 | 0 | 3 | 0 | 0 | 199 | 206 | |||||||||||||||||||||
Collateralized by auto loans | 739 | 0 | 0 | 0 | 0 | 739 | 516 | |||||||||||||||||||||
Other asset-backed securities(3) | 38 | 94 | 73 | 13 | 133 | 351 | 376 | |||||||||||||||||||||
Total asset-backed securities(4) | $ | 5,434 | $ | 566 | $ | 135 | $ | 101 | $ | 1,099 | $ | 7,335 | $ | 6,999 |
(1) | While there is no market standard definition for securities collateralized by sub-prime mortgages, we define sub-prime mortgages as residential mortgages that are originated to weaker-quality obligors as indicated by weaker credit scores, as well as mortgages with higher loan-to-value ratios or limited documentation. |
(2) | All of the $374 million of education loans included above carry a Department of Education guaranty as of March 31, 2016. |
(3) | Includes asset-backed securities collateralized by bond obligations, aircraft, equipment leases, franchises and timeshares. |
(4) | Excluded from the table above are asset-backed securities held outside the general account in other entities and operations. Also excluded from the table above are asset-backed securities classified as trading. |
March 31, 2016 | December 31, 2015 | |||||||||||||
Amortized Cost | % of Total | Amortized Cost | % of Total | |||||||||||
($ in millions) | ||||||||||||||
By security type: | ||||||||||||||
Agency pass-through securities(1) | $ | 4,282 | 89.6 | % | $ | 4,382 | 90.1 | % | ||||||
Collateralized mortgage obligations | 498 | 10.4 | 479 | 9.9 | ||||||||||
Total residential mortgage-backed securities | $ | 4,780 | 100.0 | % | $ | 4,861 | 100.0 | % | ||||||
Portion rated AA or higher(2) | $ | 4,710 | 98.5 | % | $ | 4,791 | 98.6 | % |
(1) | As of March 31, 2016, of these securities, $3.107 billion are supported by U.S. government, and $1.175 billion are supported by foreign governments. As of December 31, 2015, of these securities, $3.267 billion were supported by the U.S. government and $1.115 billion were supported by foreign governments. |
(2) | Based on lowest external rating agency rating. |
March 31, 2016 | Total December 31, 2015 | |||||||||||||||||||||||||||
Lowest Rating Agency Rating(1) | Total Amortized Cost | |||||||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | ||||||||||||||||||||||||
Vintage | (in millions) | |||||||||||||||||||||||||||
2016 | $ | 261 | $ | 203 | $ | 0 | $ | 0 | $ | 0 | $ | 464 | $ | 0 | ||||||||||||||
2015 | 530 | 122 | 0 | 0 | 0 | 652 | 607 | |||||||||||||||||||||
2014 | 2,471 | 1 | 0 | 0 | 0 | 2,472 | 2,420 | |||||||||||||||||||||
2013 | 2,478 | 99 | 0 | 9 | 0 | 2,586 | 2,568 | |||||||||||||||||||||
2012—2009 | 206 | 257 | 0 | 0 | 0 | 463 | 469 | |||||||||||||||||||||
2008—2007 | 58 | 38 | 14 | 3 | 0 | 113 | 113 | |||||||||||||||||||||
2006 & Prior | 634 | 46 | 12 | 0 | 0 | 692 | 1,123 | |||||||||||||||||||||
Total commercial mortgage-backed securities(2)(3)(4) | $ | 6,638 | $ | 766 | $ | 26 | $ | 12 | $ | 0 | $ | 7,442 | $ | 7,300 |
(1) | The table above provides ratings as assigned by nationally recognized rating agencies as of March 31, 2016, including Standard & Poor’s, Moody’s, Fitch and Realpoint. |
(2) | Excluded from the table above are commercial mortgage-backed securities held outside the general account in other entities and operations. Also excluded from the table above are commercial mortgage-backed securities classified as trading. |
(3) | Included in the table above, as of March 31, 2016, are downgraded super senior securities with amortized cost of $56 million in AA and $23 million in A. |
(4) | Included in the table above, as of March 31, 2016, are agency commercial mortgage-backed securities with amortized cost of $501 million, all rated AA. |
March 31, 2016 | Total December 31, 2015 | |||||||||||||||||||||||||||
Lowest Rating Agency Rating(1) | Total Fair Value | |||||||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | ||||||||||||||||||||||||
Vintage | (in millions) | |||||||||||||||||||||||||||
2016 | $ | 266 | $ | 206 | $ | 0 | $ | 0 | $ | 0 | $ | 472 | $ | 0 | ||||||||||||||
2015 | 545 | 126 | 0 | 0 | 0 | 671 | 601 | |||||||||||||||||||||
2014 | 2,607 | 1 | 0 | 0 | 0 | 2,608 | 2,471 | |||||||||||||||||||||
2013 | 2,630 | 105 | 0 | 9 | 0 | 2,744 | 2,621 | |||||||||||||||||||||
2012—2009 | 206 | 274 | 0 | 0 | 0 | 480 | 480 | |||||||||||||||||||||
2008—2007 | 58 | 41 | 14 | 3 | 0 | 116 | 115 | |||||||||||||||||||||
2006 & Prior | 641 | 47 | 12 | 0 | 0 | 700 | 1,135 | |||||||||||||||||||||
Total commercial mortgage-backed securities(2)(3) | $ | 6,953 | $ | 800 | $ | 26 | $ | 12 | $ | 0 | $ | 7,791 | $ | 7,423 |
(1) | The table above provides ratings as assigned by nationally recognized rating agencies as of March 31, 2016, including Standard & Poor’s, Moody’s, Fitch and Realpoint. |
(2) | Excluded from the table above are commercial mortgage-backed securities held outside the general account in other entities and operations. Also excluded from the table above are commercial mortgage-backed securities classified as trading. |
(3) | Included in the table above, as of March 31, 2016, are agency commercial mortgage-backed securities with fair value of $531 million, all rated AA. |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
NAIC Designation(1)(2) | Amortized Cost | Gross Unrealized Gains(3) | Gross Unrealized Losses(3)(4) | Fair Value | Amortized Cost | Gross Unrealized Gains(3) | Gross Unrealized Losses(3)(4) | Fair Value | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
1 | $ | 187,052 | $ | 32,020 | $ | 676 | $ | 218,396 | $ | 177,350 | $ | 22,783 | $ | 1,445 | $ | 198,688 | |||||||||||||||
2 | 44,931 | 3,944 | 951 | 47,924 | 43,731 | 3,698 | 1,545 | 45,884 | |||||||||||||||||||||||
Subtotal High or Highest Quality Securities(5) | 231,983 | 35,964 | 1,627 | 266,320 | 221,081 | 26,481 | 2,990 | 244,572 | |||||||||||||||||||||||
3 | 8,132 | 365 | 407 | 8,090 | 7,085 | 408 | 292 | 7,201 | |||||||||||||||||||||||
4 | 2,388 | 93 | 125 | 2,356 | 2,332 | 150 | 100 | 2,382 | |||||||||||||||||||||||
5 | 448 | 66 | 18 | 496 | 415 | 78 | 12 | 481 | |||||||||||||||||||||||
6 | 494 | 30 | 26 | 498 | 367 | 20 | 4 | 383 | |||||||||||||||||||||||
Subtotal Other Securities(6)(7) | 11,462 | 554 | 576 | 11,440 | 10,199 | 656 | 408 | 10,447 | |||||||||||||||||||||||
Total Fixed Maturities | $ | 243,445 | $ | 36,518 | $ | 2,203 | $ | 277,760 | $ | 231,280 | $ | 27,137 | $ | 3,398 | $ | 255,019 |
(1) | Reflects equivalent ratings for investments of the international insurance operations. |
(2) | Includes, as of March 31, 2016 and December 31, 2015, 924 securities with amortized cost of $4,683 million (fair value, $4,817 million) and 938 securities with amortized cost of $4,253 million (fair value, $4,325 million), respectively, that have been categorized based on expected NAIC Designations pending receipt of SVO ratings. |
(3) | Includes $432 million of gross unrealized gains and $2 million of gross unrealized losses as of March 31, 2016, compared to $316 million of gross unrealized gains and $0 million of gross unrealized losses as of December 31, 2015, on securities classified as held-to-maturity. |
(4) | As of March 31, 2016, includes gross unrealized losses of $315 million on public fixed maturities and $261 million on private fixed maturities considered to be other than high or highest quality and, as of December 31, 2015, includes gross unrealized losses of $212 million on public fixed maturities and $196 million on private fixed maturities considered to be other than high or highest quality. |
(5) | On amortized cost basis, as of March 31, 2016, includes $201,446 million of public fixed maturities and $30,537 million of private fixed maturities and, as of December 31, 2015, includes $190,638 million of public fixed maturities and $30,443 million of private fixed maturities. |
(6) | On an amortized cost basis, as of March 31, 2016, includes $6,824 million of public fixed maturities and $4,638 million of private fixed maturities and, as of December 31, 2015, includes $5,836 million of public fixed maturities and $4,363 million of private fixed maturities. |
(7) | On an amortized cost basis, as of March 31, 2016, securities considered below investment grade based on lowest of external rating agency ratings, total $13,000 million, or 5% of the total fixed maturities, and include securities considered high or highest quality by the NAIC based on the rules described above. |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Short-term investments and cash equivalents | $ | 888 | $ | 888 | $ | 765 | $ | 765 | ||||||||
Fixed maturities: | ||||||||||||||||
Corporate securities | 13,142 | 13,450 | 12,797 | 12,851 | ||||||||||||
Commercial mortgage-backed securities | 1,865 | 1,922 | 1,860 | 1,862 | ||||||||||||
Residential mortgage-backed securities | 1,356 | 1,393 | 1,411 | 1,428 | ||||||||||||
Asset-backed securities | 1,378 | 1,377 | 1,295 | 1,299 | ||||||||||||
Foreign government bonds | 738 | 773 | 680 | 694 | ||||||||||||
U.S. government authorities and agencies and obligations of U.S. states | 390 | 435 | 326 | 369 | ||||||||||||
Total fixed maturities | 18,869 | 19,350 | 18,369 | 18,503 | ||||||||||||
Equity securities | 1,093 | 1,209 | 1,030 | 1,254 | ||||||||||||
Total trading account assets supporting insurance liabilities | $ | 20,850 | $ | 21,447 | $ | 20,164 | $ | 20,522 |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Short-term investments and cash equivalents | $ | 2 | $ | 2 | $ | 1 | $ | 1 | ||||||||
Fixed maturities | 1,117 | 1,044 | 1,016 | 964 | ||||||||||||
Equity securities(1) | 503 | 564 | 537 | 596 | ||||||||||||
Total other trading account assets | $ | 1,622 | $ | 1,610 | $ | 1,554 | $ | 1,561 |
(1) | Included in equity securities are perpetual preferred stock securities that have characteristics of both debt and equity securities. |
March 31, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Commercial mortgage and agricultural property loans | $ | 39,264 | $ | 39,002 | ||||
Uncollateralized loans | 975 | 966 | ||||||
Residential property loans | 307 | 301 | ||||||
Other collateralized loans | 312 | 312 | ||||||
Total commercial mortgage and other loans(1) | $ | 40,858 | $ | 40,581 |
(1) | Excluded from the table above are commercial mortgage and other loans held outside the general account in other entities and operations. For additional information regarding commercial mortgage and other loans held outside the general account, see “—Invested Assets of Other Entities and Operations” below. |
March 31, 2016 | December 31, 2015 | |||||||||||||
Gross Carrying Value | % of Total | Gross Carrying Value | % of Total | |||||||||||
($ in millions) | ||||||||||||||
Commercial mortgage and agricultural property loans by region: | ||||||||||||||
U.S. Regions: | ||||||||||||||
Pacific | $ | 12,656 | 32.2 | % | $ | 12,285 | 31.5 | % | ||||||
South Atlantic | 7,837 | 20.0 | 7,764 | 19.9 | ||||||||||
Middle Atlantic | 5,378 | 13.7 | 5,271 | 13.5 | ||||||||||
East North Central | 2,606 | 6.6 | 2,704 | 6.9 | ||||||||||
West South Central | 3,911 | 10.0 | 3,945 | 10.1 | ||||||||||
Mountain | 1,494 | 3.8 | 1,697 | 4.4 | ||||||||||
New England | 1,753 | 4.5 | 1,752 | 4.5 | ||||||||||
West North Central | 624 | 1.6 | 608 | 1.6 | ||||||||||
East South Central | 537 | 1.4 | 533 | 1.4 | ||||||||||
Subtotal-U.S. | 36,796 | 93.8 | 36,559 | 93.8 | ||||||||||
Europe | 1,582 | 4.0 | 1,608 | 4.1 | ||||||||||
Asia | 443 | 1.1 | 406 | 1.0 | ||||||||||
Other | 443 | 1.1 | 429 | 1.1 | ||||||||||
Total commercial mortgage and agricultural property loans | $ | 39,264 | 100.0 | % | $ | 39,002 | 100.0 | % |
March 31, 2016 | December 31, 2015 | |||||||||||||
Gross Carrying Value | % of Total | Gross Carrying Value | % of Total | |||||||||||
($ in millions) | ||||||||||||||
Commercial mortgage and agricultural property loans by property type: | ||||||||||||||
Industrial | $ | 6,456 | 16.5 | % | $ | 6,510 | 16.7 | % | ||||||
Retail | 6,504 | 16.6 | 6,813 | 17.5 | ||||||||||
Office | 8,690 | 22.1 | 8,498 | 21.8 | ||||||||||
Apartments/Multi-Family | 10,492 | 26.7 | 10,079 | 25.8 | ||||||||||
Other | 3,218 | 8.2 | 3,133 | 8.0 | ||||||||||
Agricultural properties | 2,129 | 5.4 | 2,130 | 5.5 | ||||||||||
Hospitality | 1,775 | 4.5 | 1,839 | 4.7 | ||||||||||
Total commercial mortgage and agricultural property loans | $ | 39,264 | 100.0 | % | $ | 39,002 | 100.0 | % |
March 31, 2016 | ||||||||||||||||
Debt Service Coverage Ratio | ||||||||||||||||
Greater than 1.2x | 1.0x to < 1.2x | Less than 1.0x | Total Commercial Mortgage and Agricultural Property Loans | |||||||||||||
Loan-to-Value Ratio | (in millions) | |||||||||||||||
0%-59.99% | $ | 21,659 | $ | 442 | $ | 131 | $ | 22,232 | ||||||||
60%-69.99% | 10,496 | 483 | 267 | 11,246 | ||||||||||||
70%-79.99% | 5,235 | 239 | 59 | 5,533 | ||||||||||||
Greater than 80% | 111 | 116 | 26 | 253 | ||||||||||||
Total commercial mortgage and agricultural property loans | $ | 37,501 | $ | 1,280 | $ | 483 | $ | 39,264 |
Year of Origination | Gross Carrying Value | % of Total | |||||
($ in millions) | |||||||
2016 | $ | 1,109 | 2.8 | % | |||
2015 | 8,138 | 20.7 | |||||
2014 | 7,394 | 18.9 | |||||
2013 | 7,998 | 20.4 | |||||
2012 | 4,092 | 10.4 | |||||
2011 | 3,880 | 9.9 | |||||
2010 | 2,324 | 5.9 | |||||
2009 & prior | 4,329 | 11.0 | |||||
Total commercial mortgage and agricultural property loans | $ | 39,264 | 100.0 | % |
March 31, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Allowance, beginning of year | $ | 95 | $ | 99 | ||||
Addition to (release of) allowance for losses | (13 | ) | (4 | ) | ||||
Charge-offs, net of recoveries | 0 | 0 | ||||||
Change in foreign exchange | 1 | 0 | ||||||
Allowance, end of period | $ | 83 | $ | 95 | ||||
Loan specific reserve | $ | 0 | $ | 0 | ||||
Portfolio reserve | $ | 83 | $ | 95 |
March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Non-redeemable preferred stocks | $ | 8 | $ | 1 | $ | 0 | $ | 9 | $ | 21 | $ | 1 | $ | 1 | $ | 21 | ||||||||||||||||
Mutual fund common stocks(1) | 3,059 | 382 | 59 | 3,382 | 2,918 | 333 | 76 | 3,175 | ||||||||||||||||||||||||
Other common stocks | 2,183 | 1,273 | 33 | 3,423 | 2,033 | 1,339 | 31 | 3,341 | ||||||||||||||||||||||||
Total equity securities(2) | $ | 5,250 | $ | 1,656 | $ | 92 | $ | 6,814 | $ | 4,972 | $ | 1,673 | $ | 108 | $ | 6,537 |
(1) | Includes mutual fund shares representing our interest in the underlying assets of certain investments supporting corporate-owned life insurance. These mutual funds invest primarily in high yield bonds. |
(2) | Amounts presented exclude investments in private equity and hedge funds and other investments which are reported in “Other long-term investments.” |
March 31, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Joint ventures and limited partnerships: | ||||||||
Non-real estate-related(1) | $ | 4,148 | $ | 4,087 | ||||
Real estate-related | 362 | 285 | ||||||
Real estate held through direct ownership | 1,661 | 1,456 | ||||||
Other(2) | 756 | 721 | ||||||
Total other long-term investments | $ | 6,927 | $ | 6,549 |
(1) | Primarily includes investments in private equity and hedge funds. |
(2) | Primarily includes derivatives and member and activity stock held in the Federal Home Loan Banks of New York and Boston. For additional information regarding our holdings in the Federal Home Loan Banks of New York and Boston, see Note 9 to the Unaudited Interim Consolidated Financial Statements. |
March 31, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Fixed Maturities: | ||||||||
Public, available-for-sale, at fair value | $ | 182 | $ | 94 | ||||
Private, available-for-sale, at fair value | 4 | 39 | ||||||
Other trading account assets, at fair value | 6,148 | 12,609 | ||||||
Equity securities, available-for-sale, at fair value | 12 | 11 | ||||||
Commercial mortgage and other loans, at book value(1) | 328 | 302 | ||||||
Other long-term investments | 412 | 516 | ||||||
Short-term investments | 218 | 388 | ||||||
Total investments | $ | 7,304 | $ | 13,959 |
(1) | Book value is generally based on unpaid principal balance net of any allowance for losses, the lower of cost or fair value, or fair value, depending on the loan. |
• | We obtained additional financing for Guideline AXXX reserves by increasing the amount outstanding under a captive financing facility by $140 million; and |
• | We repurchased $375 million of shares of our Common Stock and declared aggregate Common Stock dividends of $316 million. |
March 31, 2016 | December 31, 2015(1) | ||||||
(in millions) | |||||||
Equity(2) | $ | 30,176 | $ | 29,605 | |||
Junior subordinated debt (i.e., hybrid securities) | 5,813 | 5,811 | |||||
Other capital debt | 5,820 | 6,069 | |||||
Total capital | $ | 41,809 | $ | 41,485 |
(1) | Prior period has been revised to conform to current period presentation due to the adoption ASU 2015-03 regarding debt issuance costs. For more information, see Note 2 to the Unaudited Interim Consolidated Financial Statements. |
(2) | Amounts attributable to Prudential Financial, excluding AOCI. |
Ratio(1) | ||
Prudential Insurance(2) | 484 | % |
Prudential Annuities Life Assurance Corporation (“PALAC”) | 550 | % |
(1) | The RBC ratio calculations are intended to assist insurance regulators in measuring an insurer’s solvency and ability to pay future claims. The reporting of RBC measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities, but is available to the public. |
(2) | Includes Prudential Retirement Insurance and Annuity Company (“PRIAC”), Pruco Life Insurance Company (“Pruco Life”), Pruco Life Insurance Company of New Jersey (“PLNJ”), a subsidiary of Pruco Life, and Prudential Legacy Insurance Company of New Jersey (“PLIC”). |
Ratio | ||
Prudential of Japan | 877 | % |
Gibraltar Life consolidated(1) | 929 | % |
(1) | Includes Prudential Gibraltar Financial Life Insurance Co., Ltd. (“PGFL”), a subsidiary of Gibraltar Life. |
• | Equity market exposure affecting the statutory capital of the Company as a whole, which we manage through our equity hedge program and on-balance sheet and contingent sources of capital; |
• | Our decision to manage a portion of our interest rate risk internally, on a net basis, at an enterprise level. In implementing this strategy, we execute intercompany derivative transactions between our Corporate and Other operations and certain business segments. We limit our exposure to the resulting net interest rate risk at the enterprise level through options embedded in our hedging strategy that may be exercised if interest rates decline below certain thresholds. During the first quarter of 2016, we replaced a portion of these intercompany derivatives with external derivatives and expect to manage this interest rate risk within the business segments in the future. The results of this strategy are described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Corporate and Other”; and |
• | Activities of our business segments, including those for which specific risk mitigation strategies have been implemented, such as our living benefits hedging program that covers certain risks associated with our variable annuity products. |
Dividend Amount | Shares Repurchased | |||||||||||||
Three months ended: | Per Share | Aggregate | Shares | Total Cost | ||||||||||
(in millions, except per share data) | ||||||||||||||
March 31, 2016 | $ | 0.70 | $ | 316 | 5.4 | $ | 375 |
Three Months Ended March 31, 2016 | |||
(in millions) | |||
Sources: | |||
Dividends and/or returns of capital from subsidiaries(1) | $ | 671 | |
Proceeds from stock-based compensation and exercise of stock options | 63 | ||
Total sources | 734 | ||
Uses: | |||
Share repurchases(2) | 357 | ||
Common stock dividends(3) | 318 | ||
Maturities of long-term senior debt, excluding retail medium term notes | 250 | ||
Net payments under intercompany loan agreements(4) | 240 | ||
Capital contributions to subsidiaries(5) | 218 | ||
Interest paid on external debt | 112 | ||
Other, net | 159 | ||
Total uses | 1,654 | ||
Net increase (decrease) in highly liquid assets | $ | (920 | ) |
(1) | Includes dividends and/or returns of capital of $515 million from asset management subsidiaries, $143 million from international insurance subsidiaries and $13 million from Prudential Annuities Holding Company. |
(2) | Excludes $18 million related to trades that settled in April 2016. |
(3) | Includes cash payments made on dividends declared in prior periods. |
(4) | Includes net receipts from subsidiaries of $264 million from the issuance of notes to international insurance subsidiaries, offset by net borrowings of $350 million by Prudential Universal Reinsurance Company and $154 million by asset management subsidiaries. |
(5) | Includes capital contributions of $178 million to international insurance subsidiaries ($159 million of which was related to our indirect investment in AFP Habitat), $35 million to Pruco Re and $5 million to other subsidiaries. |
March 31, 2016 | |||||||||||||||||||||||
Prudential Insurance | PLIC | PRIAC | Other(1) | Total | December 31, 2015 | ||||||||||||||||||
(in billions) | |||||||||||||||||||||||
Cash and short-term investments | $ | 4.3 | $ | 2.5 | $ | 1.0 | $ | 0.8 | $ | 8.6 | $ | 10.3 | |||||||||||
Fixed maturity investments: | |||||||||||||||||||||||
High or highest quality | 93.3 | 33.8 | 18.6 | 9.4 | 155.1 | 147.5 | |||||||||||||||||
Other than high or highest quality | 6.3 | 3.8 | 1.9 | 0.7 | 12.7 | 12.3 | |||||||||||||||||
Subtotal | 99.6 | 37.6 | 20.5 | 10.1 | 167.8 | 159.8 | |||||||||||||||||
Public equity securities | 0.2 | 2.7 | 0.0 | 0.1 | 3.0 | 3.2 | |||||||||||||||||
Total | $ | 104.1 | $ | 42.8 | $ | 21.5 | $ | 11.0 | $ | 179.4 | $ | 173.3 |
(1) | Includes PALAC and Pruco Life. |
March 31, 2016 | |||||||||||||||||||
Prudential of Japan | Gibraltar Life(1) | All Other(2) | Total | December 31, 2015 | |||||||||||||||
(in billions) | |||||||||||||||||||
Cash and short-term investments | $ | 0.7 | $ | 2.0 | $ | 1.3 | $ | 4.0 | $ | 3.5 | |||||||||
Fixed maturity investments: | |||||||||||||||||||
High or highest quality(3) | 34.5 | 86.6 | 16.5 | 137.6 | 123.8 | ||||||||||||||
Other than high or highest quality | 0.6 | 2.4 | 0.8 | 3.8 | 3.3 | ||||||||||||||
Subtotal | 35.1 | 89.0 | 17.3 | 141.4 | 127.1 | ||||||||||||||
Public equity securities | 1.7 | 2.3 | 0.6 | 4.6 | 4.6 | ||||||||||||||
Total | $ | 37.5 | $ | 93.3 | $ | 19.2 | $ | 150.0 | $ | 135.2 |
(1) | Includes PGFL. |
(2) | Represents our international insurance operations, excluding Japan. |
(3) | Of the $137.6 billion of fixed maturity investments that are not designated as held-to-maturity and considered high or highest quality as of March 31, 2016, $99.7 billion, or 72%, were invested in government or government agency bonds. |
Three Months Ended March 31, | |||||||
Cash Settlements: | 2016 | 2015 | |||||
(in millions) | |||||||
Income Hedges (External)(1) | $ | 36 | $ | 83 | |||
Equity Hedges: | |||||||
Internal | 90 | 238 | |||||
External | 72 | (63 | ) | ||||
Total Equity Hedges | 162 | 175 | |||||
Total Cash Settlements | $ | 198 | $ | 258 | |||
As of | |||||||
March 31, | December 31, | ||||||
Assets/Liabilities: | 2016 | 2015 | |||||
(in millions) | |||||||
Income Hedges (External)(2) | $ | 1 | $ | 162 | |||
Equity Hedges: | |||||||
Internal | 174 | 964 | |||||
External | 584 | 699 | |||||
Total Equity Hedges(3) | 758 | 1,663 | |||||
Total Assets/Liabilities | $ | 759 | $ | 1,825 |
(1) | Includes Korean won related cash settlements of $5 million and $(2) million for the three months ended March 31, 2016 and 2015, respectively. |
(2) | Includes a Korean won related asset of $12 million and $29 million as of March 31, 2016 and December 31, 2015, respectively. |
(3) | As of March 31, 2016, approximately 48%, 1% and 51% of the net asset is scheduled to settle in the remainder of 2016, 2017 and thereafter, respectively. The net market value of the assets/liabilities will vary with changing market conditions to the extent there are no corresponding offsetting positions. |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
PFI Excluding Closed Block Division | Closed Block Division | Consolidated | PFI Excluding Closed Block Division | Closed Block Division | Consolidated | ||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 5,483 | $ | 2,874 | $ | 8,357 | $ | 5,421 | $ | 2,461 | $ | 7,882 | |||||||||||
Cash collateral for loaned securities | 2,355 | 1,697 | 4,052 | 2,095 | 1,401 | 3,496 | |||||||||||||||||
Securities sold but not yet purchased | 2 | 0 | 2 | 2 | 0 | 2 | |||||||||||||||||
Total(1) | $ | 7,840 | $ | 4,571 | $ | 12,411 | $ | 7,518 | $ | 3,862 | $ | 11,380 | |||||||||||
Portion of above securities that may be returned to the Company overnight requiring immediate return of the cash collateral(2) | $ | 2,999 | $ | 2,622 | $ | 5,621 | $ | 5,574 | $ | 2,117 | $ | 7,691 | |||||||||||
Weighted average maturity, in days(3) | 7 | 25 | 8 | 17 |
(1) | The daily weighted average outstanding balance for the three months ended March 31, 2016, was $8,009 million for PFI excluding the Closed Block division, and $4,628 million for the Closed Block division. |
(2) | Amount for PFI excluding the Closed Block division as of December 31, 2015, includes $2,256 million of securities that had a term greater than one day due to the timing of the January 1, 2016, holiday. |
(3) | Excludes securities that may be returned to the Company overnight. |
March 31, 2016 | December 31, 2015(1) | ||||||||||||||||||||||
Borrowings: | Prudential Financial | Subsidiaries | Consolidated | Prudential Financial | Subsidiaries | Consolidated | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
General obligation short-term debt: | |||||||||||||||||||||||
Commercial paper | $ | 72 | $ | 397 | $ | 469 | $ | 80 | $ | 384 | $ | 464 | |||||||||||
Current portion of long-term debt and other | 500 | 0 | 500 | 751 | 1 | 752 | |||||||||||||||||
Subtotal | 572 | 397 | 969 | 831 | 385 | 1,216 | |||||||||||||||||
General obligation long-term debt: | |||||||||||||||||||||||
Senior debt | 10,540 | 1,327 | 11,867 | 10,543 | 1,323 | 11,866 | |||||||||||||||||
Junior subordinated debt | 5,813 | 0 | 5,813 | 5,811 | 0 | 5,811 | |||||||||||||||||
Surplus notes | 0 | 1,338 | 1,338 | 0 | 1,352 | 1,352 | |||||||||||||||||
Subtotal | 16,353 | 2,665 | 19,018 | 16,354 | 2,675 | 19,029 | |||||||||||||||||
Total general obligations | 16,925 | 3,062 | 19,987 | 17,185 | 3,060 | 20,245 | |||||||||||||||||
Limited recourse borrowing(2)(3): | |||||||||||||||||||||||
Long-term debt | 0 | 590 | 590 | 0 | 565 | 565 | |||||||||||||||||
Total limited recourse borrowings | 0 | 590 | 590 | 0 | 565 | 565 | |||||||||||||||||
Total borrowings | $ | 16,925 | $ | 3,652 | $ | 20,577 | $ | 17,185 | $ | 3,625 | $ | 20,810 |
(1) | Prior period has been revised to conform to current period presentation due to the adoption ASU 2015-03 regarding debt issuance costs. For more information, see Note 2 to the Unaudited Interim Consolidated Financial Statements. |
(2) | Amounts are net of assets under set-off arrangements of $5,040 million and $4,889 million as of March 31, 2016 and December 31, 2015, respectively. |
(3) | Limited and non-recourse borrowing primarily represents mortgage debt of our subsidiaries that has recourse only to real estate investment property. |
Surplus Notes | ||||||||||||
Credit-Linked Note Structures: | Original Issue Dates | Maturity Dates | Outstanding as of March 31, 2016 | Facility Size | ||||||||
($ in millions) | ||||||||||||
XXX | 2011-2014 | 2021-2024 | $ | 1,750 | (1) | $ | 2,000 | |||||
AXXX | 2013 | 2033 | 2,240 | 3,500 | ||||||||
XXX | 2014 | 2034 | 1,600 | (1)(2) | 1,600 | |||||||
XXX | 2014 | 2024 | 1,050 | 1,750 | ||||||||
Total Credit-Linked Note Structures | $ | 6,640 | $ | 8,850 |
(1) | Prudential Financial has agreed to reimburse any amounts paid under the credit-linked notes issued in these structures. |
(2) | The $1.6 billion surplus note represents an intercompany transaction that eliminates upon consolidation. |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(2) | Approximate Dollar Value of Shares that May Yet be Purchased under the Program(2) | ||||||||
January 1, 2016 through January 31, 2016 | 1,744,686 | $ | 71.69 | 1,743,682 | ||||||||
February 1, 2016 through February 29, 2016 | 2,460,519 | $ | 64.29 | 1,925,316 | ||||||||
March 1, 2016 through March 31, 2016 | 1,738,146 | $ | 72.02 | 1,735,685 | ||||||||
Total | 5,943,351 | $ | 68.72 | 5,404,683 | $1,125,000,000 |
(1) | Includes shares of Common Stock withheld from participants for income tax withholding purposes whose shares of restricted stock units vested during the period. Such restricted stock units were originally issued to participants pursuant to the Prudential Financial, Inc. Omnibus Incentive Plan that was adopted by the Company’s Board of Directors in March 2003 (as subsequently amended and restated). |
(2) | In December 2015, Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.5 billion of its outstanding Common Stock from January 1, 2016 through December 31, 2016. Effective January 1, 2016, this authorization superseded the Company’s $1.0 billion share repurchase authorization that was announced in June 2015, covering the period from July 1, 2015 through June 30, 2016. |
Prudential Financial, Inc. | |||
By: | /S/ ROBERT M. FALZON | ||
Robert M. Falzon Executive Vice President and Chief Financial Officer (Authorized signatory and principal financial officer) |
10.1 | Annual Incentive Payment Criteria for Executive Officers (Effective for awards in 2016 in respect of 2015 and for subsequent years). Incorporated by reference to Exhibit 10.1 to the Registrant’s February 9, 2016 Current Report on Form 8-K. |
10.2 | Form of Terms and Conditions relating to awards in 2016 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units, stock options, performance shares and performance units under the 2016 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.2 to the Registrant’s February 9, 2016 Current Report on Form 8-K. |
12.1 | Statement of Ratio of Earnings to Fixed Charges. |
31.1 | Section 302 Certification of the Chief Executive Officer. |
31.2 | Section 302 Certification of the Chief Financial Officer. |
32.1 | Section 906 Certification of the Chief Executive Officer. |
32.2 | Section 906 Certification of the Chief Financial Officer. |
101.INS - XBRL | Instance Document. |
101.SCH - XBRL | Taxonomy Extension Schema Document. |
101.CAL - XBRL | Taxonomy Extension Calculation Linkbase Document. |
101.LAB - XBRL | Taxonomy Extension Label Linkbase Document. |
101.PRE - XBRL | Taxonomy Extension Presentation Linkbase Document. |
101.DEF - XBRL | Taxonomy Extension Definition Linkbase Document. |
Three Months Ended | Year Ended December 31, | |||||||||||||||||||||||
March 31, 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (1) | $ | 1,707 | $ | 7,711 | $ | 1,715 | $ | (1,712 | ) | $ | 737 | $ | 5,191 | |||||||||||
Less: | ||||||||||||||||||||||||
Undistributed income (loss) of investees accounted for under the equity method | 16 | (280 | ) | 134 | 223 | 107 | 286 | |||||||||||||||||
Interest capitalized | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Adjusted earnings | 1,691 | 7,991 | 1,581 | (1,935) | 630 | 4,905 | ||||||||||||||||||
Add fixed charges: | ||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 1,286 | 3,479 | 4,263 | 3,111 | 4,234 | 4,484 | ||||||||||||||||||
Gross interest expense (2) | 327 | 1,328 | 1,934 | 1,419 | 1,389 | 1,315 | ||||||||||||||||||
Interest component of rental expense | 20 | 77 | 75 | 85 | 96 | 93 | ||||||||||||||||||
Total fixed charges | 1,633 | 4,884 | 6,272 | 4,615 | 5,719 | 5,892 | ||||||||||||||||||
Total earnings plus fixed charges | $ | 3,324 | $ | 12,875 | $ | 7,853 | $ | 2,680 | $ | 6,349 | $ | 10,797 | ||||||||||||
Ratio of earnings to fixed charges (3) | 2.04 | 2.64 | 1.25 | 0 | 1.11 | 1.83 | ||||||||||||||||||
(1) | Excludes earnings attributable to noncontrolling interests. |
(2) | Interest expense on short-term and long-term debt, including interest expense of securities businesses reported in “Net investment income” in the Consolidated Statements of Operations, capitalized interest and amortization of debt discounts and premiums. Interest expense does not include interest on liabilities recorded under the authoritative guidance on accounting for uncertainty in income taxes. The Company’s policy is to classify such interest in income tax provision in the consolidated statements of operations. |
(3) | Due to the Company’s loss for the twelve months ended December 31, 2013, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $1,935 million would have been required for the twelve months ended December 31, 2013, to achieve a ratio of 1:1. |
1. | I have reviewed this Quarterly Report on Form 10-Q of Prudential Financial, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 6, 2016 | /s/ John R. Strangfeld |
John R. Strangfeld Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Prudential Financial, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 6, 2016 | /s/ Robert M. Falzon |
Robert M. Falzon Chief Financial Officer |
Date: May 6, 2016 | /s/ John R. Strangfeld | |
Name: | John R. Strangfeld | |
Title: | Chief Executive Officer |
Date: May 6, 2016 | /s/ Robert M. Falzon | |
Name: | Robert M. Falzon | |
Title: | Chief Financial Officer |
Document and Entity Information - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 30, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PRU | |
Entity Registrant Name | PRUDENTIAL FINANCIAL INC | |
Entity Central Index Key | 0001137774 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 442 |
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Fixed maturities, available-for-sale, amortized cost | $ 278,000 | $ 265,416 | |||
Fixed maturities, held-to-maturity, fair value | 2,841 | 2,624 | |||
Equity securities, available-for-sale, at fair value | 7,026 | 6,847 | |||
Total commercial mortgage and other loans | [1] | 50,798 | 50,559 | ||
Other long-term investments | [1] | 10,281 | 9,986 | ||
Notes Of Consolidated Variable Interest Entities | [1] | $ 2,946 | $ 8,597 | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |||
Preferred Stock, Shares Issued | 0 | 0 | |||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common Stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |||
Common Stock, shares issued | 660,111,339 | 660,111,339 | |||
Treasury Stock, Shares | 216,964,935 | 213,009,970 | |||
Fair Value Option | |||||
Total commercial mortgage and other loans | $ 286 | $ 274 | |||
Other long-term investments | 1,292 | 1,322 | |||
Notes Of Consolidated Variable Interest Entities | $ 2,946 | $ 8,597 | |||
|
Unaudited Interim Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
REVENUES | ||
Premiums | $ 6,297 | $ 6,647 |
Policy charges and fee income | 1,599 | 1,608 |
Net investment income | 3,670 | 3,769 |
Asset management and service fees | 905 | 952 |
Other income (loss) | (23) | 215 |
Realized investment gains (losses), net: | ||
Other-than-temporary impairments on fixed maturity securities | (158) | (14) |
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income | 32 | 6 |
Other realized investment gains (losses), net | 2,007 | 2,369 |
Total realized investment gains (losses), net | 1,881 | 2,361 |
Total revenues | 14,329 | 15,552 |
BENEFITS AND EXPENSES | ||
Policyholders’ benefits | 7,031 | 7,239 |
Interest credited to policyholders’ account balances | 1,286 | 1,233 |
Dividends to policyholders | 266 | 781 |
Amortization of deferred policy acquisition costs | 1,202 | 789 |
General and administrative expenses | 2,812 | 2,762 |
Total benefits and expenses | 12,597 | 12,804 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 1,732 | 2,748 |
Total income tax expense (benefit) | 368 | 699 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 1,364 | 2,049 |
Equity in earnings of operating joint ventures, net of taxes | 5 | (3) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,369 | 2,046 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 |
NET INCOME (LOSS) | 1,369 | 2,046 |
Less: Income (loss) attributable to noncontrolling interests | 33 | 10 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ 1,336 | $ 2,036 |
Basic earnings per share-Common Stock: | ||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. (in dollars per share) | $ 2.97 | $ 4.44 |
Income (loss) from discontinued operations, net of taxes (in dollars per share) | 0.00 | 0.00 |
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | 2.97 | 4.44 |
Diluted earnings per share-Common Stock: | ||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. (in dollars per share) | 2.93 | 4.37 |
Income (loss) from discontinued operations, net of taxes (in dollars per share) | 0.00 | 0.00 |
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | 2.93 | 4.37 |
Dividends declared per share of Common Stock (in dollars per share) | $ 0.70 | $ 0.58 |
Unaudited Interim Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ 1,369 | $ 2,046 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments for the period | 737 | (67) |
Net unrealized investment gains (losses) | 9,413 | 2,490 |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | 34 | 52 |
Total | 10,184 | 2,475 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 3,399 | 811 |
Other comprehensive income (loss), net of taxes | 6,785 | 1,664 |
Comprehensive income (loss) | 8,154 | 3,710 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 37 | (28) |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ 8,117 | $ 3,738 |
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Millions |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Common Stock Held In Treasury |
Common Stock Held In Treasury
Class B Stock
|
Accumulated Other Comprehensive Income (Loss) |
Total Prudential Financial, Inc. Equity |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2014 | $ 42,349 | $ 6 | $ 24,565 | $ 14,888 | $ (13,088) | $ (651) | $ 16,050 | $ 41,770 | $ 579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock acquired | (250) | (250) | (250) | ||||||
Class B Stock repurchase adjustment/canceled | 0 | (167) | (484) | 651 | $ 0 | ||||
Contributions from noncontrolling interests | 11 | 11 | |||||||
Distributions to noncontrolling interests | (32) | (32) | |||||||
Stock-based compensation programs | 53 | (52) | 105 | $ 53 | |||||
Dividends declared on Common Stock | (267) | (267) | (267) | ||||||
Comprehensive income: | |||||||||
Net income (loss) | 2,046 | 2,036 | 2,036 | 10 | |||||
Other comprehensive income (loss), net of tax | 1,664 | 1,702 | 1,702 | (38) | |||||
Comprehensive income (loss) | 3,710 | 3,738 | (28) | ||||||
Balance at Mar. 31, 2015 | 45,574 | 6 | 24,346 | 16,173 | (13,233) | 0 | 17,752 | 45,044 | 530 |
Balance at Dec. 31, 2015 | 41,923 | 6 | 24,482 | 18,931 | (13,814) | 0 | 12,285 | 41,890 | 33 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of adoption of accounting changes | (19) | 11 | 11 | (30) | |||||
Common Stock acquired | (375) | (375) | (375) | ||||||
Class B Stock repurchase adjustment/canceled | (119) | (119) | (119) | ||||||
Contributions from noncontrolling interests | 2 | 2 | |||||||
Distributions to noncontrolling interests | (19) | (19) | |||||||
Stock-based compensation programs | 34 | (62) | 96 | 34 | |||||
Dividends declared on Common Stock | (316) | (316) | (316) | ||||||
Comprehensive income: | |||||||||
Net income (loss) | 1,369 | 1,336 | 1,336 | 33 | |||||
Other comprehensive income (loss), net of tax | 6,785 | 6,781 | 6,781 | 4 | |||||
Comprehensive income (loss) | 8,154 | 8,117 | 37 | ||||||
Balance at Mar. 31, 2016 | $ 49,265 | $ 6 | $ 24,420 | $ 19,843 | $ (14,093) | $ 0 | $ 19,066 | $ 49,242 | $ 23 |
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ 1,369 | $ 2,046 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Realized investment (gains) losses, net | (1,881) | (2,361) | ||||||
Policy charges and fee income | (629) | (576) | ||||||
Interest credited to policyholders’ account balances | 1,286 | 1,233 | ||||||
Depreciation and amortization | 167 | 170 | ||||||
(Gains) losses on trading account assets supporting insurance liabilities, net | (216) | (85) | ||||||
Change in: | ||||||||
Deferred policy acquisition costs | 517 | 142 | ||||||
Future policy benefits and other insurance liabilities | 1,741 | 1,549 | ||||||
Other trading account assets | 96 | (11) | ||||||
Income taxes | 122 | 644 | ||||||
Derivatives, net | 4,540 | 3,261 | ||||||
Other, net | (818) | (484) | ||||||
Cash flows from (used in) operating activities | 6,294 | 5,528 | ||||||
Proceeds from the sale/maturity/prepayment of: | ||||||||
Fixed maturities, available-for-sale | 9,420 | 12,313 | ||||||
Fixed maturities, held-to-maturity | 50 | 59 | ||||||
Trading account assets supporting insurance liabilities and other trading account assets | 5,558 | 2,925 | ||||||
Equity securities, available-for-sale | 1,014 | 988 | ||||||
Commercial mortgage and other loans | 1,378 | 968 | ||||||
Policy loans | 572 | 549 | ||||||
Other long-term investments | 108 | 198 | ||||||
Short-term investments | 19,710 | 20,093 | ||||||
Payments for the purchase/origination of: | ||||||||
Fixed maturities, available-for-sale | (15,415) | (10,357) | ||||||
Trading account assets supporting insurance liabilities and other trading account assets | (6,080) | (4,024) | ||||||
Equity securities, available-for-sale | (900) | (974) | ||||||
Commercial mortgage and other loans | (1,429) | (2,096) | ||||||
Policy loans | (451) | (439) | ||||||
Other long-term investments | (518) | (331) | ||||||
Short-term investments | (15,401) | (17,763) | ||||||
Acquisition of business, net of cash acquired | (532) | 0 | ||||||
Derivatives, net | 107 | (366) | ||||||
Other, net | 61 | (95) | ||||||
Cash flows from (used in) investing activities | (2,748) | 1,648 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Policyholders’ account deposits | 6,150 | 5,063 | ||||||
Policyholders’ account withdrawals | (4,686) | (5,359) | ||||||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 1,031 | (1,445) | ||||||
Cash dividends paid on Common Stock | (318) | (268) | ||||||
Net change in financing arrangements (maturities 90 days or less) | 22 | 135 | ||||||
Common Stock acquired | (357) | (252) | ||||||
Common Stock reissued for exercise of stock options | 23 | 41 | ||||||
Proceeds from the issuance of debt (maturities longer than 90 days) | 53 | 1,152 | ||||||
Repayments of debt (maturities longer than 90 days) | (340) | (1,293) | ||||||
Excess tax benefits from share-based payment arrangements | 2 | 12 | ||||||
Other, net | (282) | (221) | ||||||
Cash flows from (used in) financing activities | 1,179 | (3,086) | ||||||
Effect of foreign exchange rate changes on cash balances | 155 | 111 | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,880 | 4,201 | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 17,612 | [1] | 14,918 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 22,492 | [1] | 19,119 | |||||
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||||||
Treasury Stock shares issued for stock-based compensation programs | [2] | 107 | 106 | |||||
Pension Risk Transfer | ||||||||
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||||||
Assets acquired, excluding cash and cash equivalents acquired | [2] | 0 | 640 | |||||
Liabilities assumed | [2] | 0 | 635 | |||||
Net cash paid | [2] | 0 | (5) | |||||
Class B Stock | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Common Stock acquired | $ (119) | $ (651) | ||||||
|
Business and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) and its subsidiaries (collectively, “Prudential” or the “Company” or “PFI”) provide a wide range of insurance, investment management, and other financial products and services to both individual and institutional customers throughout the United States and in many other countries. Principal products and services provided include life insurance, annuities, retirement-related services, mutual funds and investment management. From December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business, and had two classes of common stock outstanding. The Common Stock, which is publicly traded (NYSE:PRU), reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement and did not trade on any exchange, reflected the performance of the Closed Block Business. On January 2, 2015, Prudential Financial repurchased and canceled all of the shares of the Class B Stock (the “Class B Repurchase”). As a result, the Company no longer organizes its principal operations into the Financial Services Businesses and the Closed Block Business. The Company’s principal operations are comprised of four divisions: the U.S. Retirement Solutions and Investment Management division, the U.S. Individual Life and Group Insurance division, the International Insurance division and the Closed Block division. The Company’s Corporate and Other operations include corporate items and initiatives that are not allocated to business segments and businesses that have been or will be divested, excluding the Closed Block division. The Closed Block division includes certain in force participating insurance and annuity products and corresponding assets that are used for the payment of benefits and policyholders’ dividends on these products (the “Closed Block”), as well as certain related assets and liabilities. See Note 6 for further information on the Closed Block. In connection with demutualization, the Company ceased offering these participating products. The Closed Block division is accounted for as a divested business that is reported separately from the divested businesses that are included in the Company’s Corporate and Other operations. Basis of Presentation As a result of the Class B Repurchase and resulting elimination of the separation of the Financial Services Businesses and the Closed Block Business, these Unaudited Interim Consolidated Financial Statements refer to the divisions and segments of the Company that formerly comprised the Financial Services Businesses as “PFI excluding Closed Block division” and refer to the operations that were formerly included in the Closed Block Business as the “Closed Block division,” except as otherwise noted. Closed Block Business results were associated with the Company’s Class B Stock for periods prior to January 1, 2015. The Unaudited Interim Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner, and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. See Note 5 for more information on the Company’s consolidated variable interest entities. The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company’s Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations use a November 30 fiscal year end for purposes of inclusion in the Company’s Consolidated Financial Statements. The unaudited interim consolidated balance sheet data as of March 31, 2016, include the assets and liabilities of Gibraltar Life as of February 29, 2016. The unaudited interim consolidated income statement data include Gibraltar Life’s results of operations for the three months ended February 29, 2016 and February 28, 2015, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs (“DAC”) and related amortization; value of business acquired (“VOBA”) and its amortization; amortization of deferred sales inducements (“DSI”); measurement of goodwill and any related impairment; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies and Pronouncements |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS This section supplements, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Adoption of New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued guidance (Accounting Standards Update (“ASU”) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)) to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2015, and was applied retrospectively. Adoption of the guidance did not have a significant effect on the Company’s financial statement disclosures. See Note 13. In April 2015, the FASB issued updated guidance (ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs) that simplifies the presentation of debt issuance costs. The pronouncement requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company adopted the guidance effective January 1, 2016. Prior period financial information presented in these financial statements has been adjusted to reflect the retrospective adoption of the amended guidance. “Other assets” and “Long-term debt” as previously reported on the Company’s consolidated statements of financial position as of December 31, 2015 were both reduced by $133 million as a result of this retrospective adoption. In February 2015, the FASB issued updated guidance (ASU 2015-02, Consolidation (Topic 810): Amendments to Consolidation Analysis) that modifies the rules regarding consolidation. The pronouncement eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted the updated guidance effective January 1, 2016 and applied the modified retrospective method of adoption, primarily resulting in the deconsolidation of certain of its previously consolidated collateralized loan obligations (“CLOs”), as its fee arrangements are no longer deemed variable interests in these entities. The Company continues to consolidate CLOs where it retains other economic interests which absorb more than an insignificant amount of the CLOs expected variability. The Company also deconsolidated certain investment structures where it is no longer deemed to be the primary beneficiary as the Company, through its equity ownership, no longer has the obligation to absorb losses of the VIE that could be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The impact to the Company’s consolidated statements of financial position upon adoption of the updated guidance is a reduction of $5.5 billion of “Total assets” (including $5.1 billion of “Total investments”) and $5.5 billion of “Total liabilities” (including $5.1 billion of “Notes issued by consolidated variable interest entities”), with a $30 million decrease in “Noncontrolling interests” and a $7 million increase to “Total Prudential Financial, Inc. equity.” In August 2014, the FASB issued updated guidance (ASU 2014-14, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure) requiring that mortgage loans be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In August 2014, the FASB issued updated guidance (ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity) for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity. Under the guidance, an entity within scope is permitted to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity based on either the fair value of the financial assets or the financial liabilities, whichever is more observable. If adopted, the guidance eliminates the measurement difference that exists when both are measured at fair value. The Company adopted the updated guidance effective January 1, 2016, and applied the modified retrospective method of adoption. The impact to the Company’s consolidated statements of financial position upon adoption of the updated guidance was a $4 million reduction in “Total liabilities” and a $4 million increase to “Total Prudential Financial, Inc. equity.” In June 2014, the FASB issued updated guidance (ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures) that requires repurchase-to-maturity transactions to be accounted for as secured borrowings and eliminates existing guidance for repurchase financings. The guidance also requires new disclosures for certain transactions accounted for as secured borrowings and for transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets. Accounting changes and new disclosures for transfers accounted for as sales under the new guidance were effective for the first interim or annual period beginning after December 15, 2014, and did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. Disclosures for certain transactions accounted for as secured borrowings were effective for interim periods beginning after March 15, 2015, and are included in Note 4. In April 2014, the FASB issued updated guidance (ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity) that changes the criteria for reporting discontinued operations and introduces new disclosures. The new guidance became effective for new disposals and new classifications of disposal groups as held for sale that occur within annual periods that began on or after December 15, 2014, and interim periods within those annual periods. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In January 2014, the FASB issued updated guidance (ASU 2014-04, Receivables—Troubled Debt Restructuring by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure) for troubled debt restructurings clarifying when an in-substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In January 2014, the FASB issued updated guidance (ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects) regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance became effective for annual periods and interim reporting periods within those annual periods that began after December 15, 2014. The Company did not elect the proportional amortization method under this guidance. Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued updated guidance (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)) on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. In August 2015, the FASB issued an update to defer the original effective date of this guidance. As a result of the deferral, the new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017, and must be applied using one of two retrospective application methods. Early adoption is permitted only for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In May 2015, the FASB issued final guidance (ASU 2015-09, Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts) that aims to enhance disclosures about insurance contracts classified as short-duration. The new disclosure requirements focus on providing users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, methodologies and judgments in estimating claims, and timing, frequency and severity of claims as they relate to short-duration insurance contracts. The new guidance is effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016, and is to be applied retrospectively. The Company is currently assessing the impact of the guidance on the Company’s financial statement disclosures but has concluded that this guidance will not impact the Company’s consolidated financial position or results of operations. In January 2016, the FASB issued updated guidance (ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial assets and financial liabilities. The guidance revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2017. Early adoption is not permitted except for the provisions related to the presentation of certain fair value changes for financial liabilities measured at fair value. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In February 2016, the FASB issued guidance (ASU 2016-02, Leases (Topic 842)) that ensures assets and liabilities from all outstanding lease contracts are recognized on balance sheet (with limited exception). The guidance substantially changes a Lessee’s accounting for leases and requires the recording on balance sheet of a “right-of-use” asset and liability to make lease payments for most leases. A Lessee will continue to recognize expense in its income statement in a manner similar to the requirements under the current lease accounting guidance. For Lessors, the guidance modifies classification criteria and accounting for sales-type and direct financing leases and requires a Lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a Lessee and record a lease receivable and residual asset (“receivable and residual” approach). The guidance also eliminates the real estate specific provisions of the current guidance (i.e., sale-leaseback). The amendments are effective for financial statements issued for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In March 2016, the FASB issued guidance (ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting) to simplify the transition to equity method when an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments are effective for financial statements issued for annual reporting periods beginning after December 15, 2016, and for interim periods within those annual periods. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In March 2016, the FASB issued guidance (ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payments Accounting) to simplify and improve employee share-based payment accounting. The areas updated include income tax consequences, a policy election related to forfeitures, classification of awards as either equity or liability, and classification of operating and financing activity on the statement of cash flows. The amendments are effective for financial statements issued for annual reporting periods beginning after December 15, 2016, and for interim periods within those annual periods, with early adoption permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. |
Acquisitions |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS This section supplements, and should be read in conjunction with, the complete descriptions provided in Note 3 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2015. Acquisition of Deutsche Bank’s India Asset Management Business In March 2016, the Company and its asset management joint venture partner in India completed the previously announced acquisition of Deutsche Bank’s India asset management business through the joint venture. This acquisition, which will expand the Company’s investment management expertise, distribution platform and product portfolio in India, did not have a material impact on the Company’s financial results. Acquisition of Administradora de Fondos de Pensiones Habitat S.A. In March 2016, the Company completed the purchase of an indirect 40% ownership interest in Administradora de Fondos de Pensiones Habitat S.A. (“AFP Habitat”), a leading provider of retirement services in Chile, from Inversiones La Construcción S.A. (“ILC”), the investment subsidiary of the Chilean Construction Chamber. The Company paid 899.90 Chilean pesos per share, for a total purchase price of approximately $532 million based on exchange rates at the share acquisition date. The Company and ILC now equally own an indirect controlling stake in AFP Habitat through a joint holding company. The Company’s investment will be accounted for under the equity method and is recorded within “Other assets.” This acquisition will enable the Company to participate in the growing Chilean pension market. |
Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated:
__________
The amortized cost and fair value of fixed maturities by contractual maturities at March 31, 2016, are as follows:
__________
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date. The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities:
__________
As discussed in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, a portion of certain OTTI losses on fixed maturity securities is recognized in “Other comprehensive income (loss)” (“OCI”). For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts:
__________
Trading Account Assets Supporting Insurance Liabilities The following table sets forth the composition of “Trading account assets supporting insurance liabilities” as of the dates indicated:
__________
The net change in unrealized gains (losses) from trading account assets supporting insurance liabilities still held at period end, recorded within “Other income,” was $239 million and $10 million during the three months ended March 31, 2016 and 2015, respectively. Other Trading Account Assets The following table sets forth the composition of the “Other trading account assets” as of the dates indicated:
The net change in unrealized gains (losses) from other trading account assets, excluding derivative instruments, still held at period end, recorded within “Other income,” was $24 million and $(52) million during the three months ended March 31, 2016 and 2015, respectively. Concentrations of Financial Instruments The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer. As of both March 31, 2016 and December 31, 2015, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government and certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below.
Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated:
__________
The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States (with the largest concentrations in California (27%), New York (9%) and Texas (9%)) and include loans secured by properties in Europe (4%) and Asia (1%) at March 31, 2016. Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows:
The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated:
__________
__________
Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses and the related allowance for losses, as of the dates indicated, are as follows:
__________
__________
The net carrying value of commercial and other loans held for sale by the Company as of March 31, 2016 and December 31, 2015, was $286 million and $274 million, respectively. For all of these loans, the Company pre-arranges that it will sell the loan to an investor. As of both March 31, 2016 and December 31, 2015, all of the Company’s commercial and other loans held for sale were collateralized, with collateral primarily consisting of apartment complexes. The following tables set forth certain key credit quality indicators as of March 31, 2016, based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans
Agricultural property loans
Total commercial mortgage and agricultural property loans
The following tables set forth certain key credit quality indicators as of December 31, 2015, based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans
Agricultural property loans
Total commercial mortgage and agricultural property loans
The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage loans on nonaccrual status as of the dates indicated.
See Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, for further discussion regarding nonaccrual status loans. For the three months ended March 31, 2016 and 2015, there were no commercial mortgage and other loans acquired, other than those through direct origination. For the three months ended March 31, 2016 and 2015, there were no commercial mortgage and other loans sold, other than those classified as held for sale. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of March 31, 2016 and December 31, 2015, the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. During three months ended March 31, 2016 and 2015, there were no new troubled debt restructurings related to commercial mortgage and other loans, and no payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the twelve months preceding. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. As of March 31, 2016 and December 31, 2015, there were $0 and $22 million, respectively, of private debt commitments to borrowers that have been involved in a troubled debt restructuring. As of March 31, 2016 and December 31, 2015, the Company did not have any foreclosed residential real estate property. Net Investment Income Net investment income for the three months ended March 31, 2016 and 2015, was from the following sources:
__________
Realized Investment Gains (Losses), Net Realized investment gains (losses), net, for the three months ended March 31, 2016 and 2015, were from the following sources:
__________
Net Unrealized Gains (Losses) on Investments by Asset Class The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated:
__________
Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated:
__________
__________
The gross unrealized losses on fixed maturity securities at March 31, 2016 and December 31, 2015, were composed of $2,039 million and $3,750 million, respectively, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $712 million and $583 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At March 31, 2016, the $1,666 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical and utility sectors of the Company’s corporate securities. At December 31, 2015, the $1,802 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical and basic industry sectors of the Company’s corporate securities. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at March 31, 2016 or December 31, 2015. These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to a decrease in interest rates, general credit spread tightening and foreign currency exchange rate movements. At March 31, 2016, the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. At March 31, 2016, $26 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, $25 million of which had been in that position for less than six months. At December 31, 2015, $19 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, all of which had been in that position for less than six months. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company concluded that an adjustment for OTTI for these equity securities was not warranted at March 31, 2016 or December 31, 2015. Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of repurchase agreements as of the dates indicated.
The following table sets forth the composition of securities lending transactions as of the dates indicated.
|
Variable Interest Entities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | VARIABLE INTEREST ENTITIES In the normal course of its activities, the Company enters into relationships with various special-purpose entities and other entities that are deemed to be variable interest entities (“VIEs”). A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control activities of the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE. The Company is the primary beneficiary if the Company has (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. If the Company determines that it is the VIE’s primary beneficiary, it consolidates the VIE. Consolidated Variable Interest Entities The Company is the investment manager of certain asset-backed investment vehicles commonly referred to as collateralized loan obligations (“CLOs”) and certain other vehicles for which the Company earns fee income for investment management services, including certain investment structures in which the Company’s asset management business invests with other co-investors in investment funds referred to as feeder funds. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity of the Company’s asset management businesses. Additionally, the Company may invest in securities issued by these vehicles. CLOs raise capital by issuing debt securities, and use the proceeds to purchase investments, typically interest-bearing financial instruments. The Company has analyzed these relationships and determined that for certain CLOs and other investment structures it is the primary beneficiary and consolidates these entities. This analysis includes a review of (1) the Company’s rights and responsibilities as investment manager and (2) variable interests (if any) held by the Company. The assets of these VIEs are restricted and must be used first to settle liabilities of the VIE. The Company is not required to provide, and has not provided, material financial or other support to any of these VIEs. Effective January 1, 2016, the Company adopted new guidance that resulted in the deconsolidation of certain of its previously consolidated CLOs. See Note 2 for additional information. Additionally, the Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but for which it is not the investment manager. These include structured investments issued by a VIE that manages yen-denominated investments coupled with cross-currency coupon swap agreements thereby creating synthetic dual currency investments. The Company’s involvement in the structuring of these investments combined with its economic interest indicates that the Company is the primary beneficiary. The Company has not provided material financial support or other support that was not contractually required to these VIEs. The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs that are non-recourse to the Company. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs.
__________
As included in the table above, notes issued by consolidated VIEs are classified in the line item on the Unaudited Interim Consolidated Statements of Financial Position titled, “Notes issued by consolidated VIEs.” Recourse is limited to the assets of the respective VIE and does not extend to the general credit of Prudential Financial. As of March 31, 2016, the maturities of these obligations were greater than five years. Unconsolidated Variable Interest Entities The Company has determined that it is not the primary beneficiary of certain VIEs for which it is the investment manager. These VIEs consist primarily of CLOs and investment funds for which the Company has determined that it is not the primary beneficiary as it does not have both (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. The Company’s maximum exposure to loss resulting from its relationship with unconsolidated VIEs for which it is the investment manager is limited to its investment in the VIEs, which was $400 million and $218 million at March 31, 2016 and December 31, 2015, respectively. These investments are reflected in “Fixed maturities, available-for-sale,” “Other trading account assets, at fair value” and “Other long-term investments.” The fair value of assets held within these unconsolidated VIEs was $11,452 million and $5,262 million as of March 31, 2016 and December 31, 2015, respectively. There are no liabilities associated with these unconsolidated VIEs on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In the normal course of its activities, the Company will invest in joint ventures and limited partnerships. These ventures include hedge funds, private equity funds and real estate-related funds and may or may not be VIEs. The Company’s maximum exposure to loss on these investments, both VIEs and non-VIEs, is limited to the amount of its investment. The Company has determined that it is not required to consolidate these entities because either: (1) it does not control them or (2) it does not have the obligation to absorb losses of the entities that could be potentially significant to the entities or the right to receive benefits from the entities that could be potentially significant. The Company classifies these investments as “Other long-term investments” and its maximum exposure to loss associated with these entities was $7,626 million and $7,532 million as of March 31, 2016 and December 31, 2015, respectively. In addition, in the normal course of its activities, the Company will invest in structured investments including VIEs for which it is not the investment manager. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The Company’s maximum exposure to loss on these structured investments, both VIEs and non-VIEs, is limited to the amount of its investment. See Note 4 for details regarding the carrying amounts and classification of these assets. The Company has not provided material financial or other support that was not contractually required to these structures. The Company has determined that it is not the primary beneficiary of these structures due to the fact that it does not control these entities. |
Closed Block |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed Block Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed Block | CLOSED BLOCK On the date of demutualization, Prudential Insurance established a Closed Block for certain individual life insurance policies and annuities issued in the U.S. by Prudential Insurance. The recorded assets and liabilities were allocated to the Closed Block at their historical carrying amounts. The Closed Block forms the principal component of the Closed Block division. The policies included in the Closed Block are specified individual life insurance policies and individual annuity contracts that were in force on the date of demutualization and for which Prudential Insurance is currently paying or expects to pay experience-based policy dividends. Assets have been allocated to the Closed Block in an amount that has been determined to produce cash flows which, together with revenues from policies included in the Closed Block, are expected to be sufficient to support obligations and liabilities relating to these policies, including provision for payment of benefits, certain expenses and taxes and to provide for continuation of the policyholder dividend scales in effect in 2000, assuming experience underlying such scales continues. To the extent that, over time, cash flows from the assets allocated to the Closed Block and claims and other experience related to the Closed Block are, in the aggregate, more or less favorable than what was assumed when the Closed Block was established, total dividends paid to Closed Block policyholders may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect in 2000 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to Closed Block policyholders and will not be available to stockholders. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from Prudential Insurance’s assets outside of the Closed Block. The Closed Block will continue in effect as long as any policy in the Closed Block remains in force unless, with the consent of the New Jersey insurance regulator, it is terminated earlier. The excess of Closed Block liabilities over Closed Block assets at the date of the demutualization (adjusted to eliminate the impact of related amounts in AOCI) represented the estimated maximum future earnings at that date from the Closed Block expected to result from operations attributed to the Closed Block after income taxes. In establishing the Closed Block, the Company developed an actuarial calculation of the timing of such maximum future earnings. If actual cumulative earnings of the Closed Block from inception through the end of any given period are greater than the expected cumulative earnings, only the expected earnings will be recognized in income. Any excess of actual cumulative earnings over expected cumulative earnings will represent undistributed accumulated earnings attributable to policyholders, which are recorded as a policyholder dividend obligation. The policyholder dividend obligation represents amounts to be paid to Closed Block policyholders as an additional policyholder dividend unless otherwise offset by future Closed Block performance that is less favorable than originally expected. If the actual cumulative earnings of the Closed Block from its inception through the end of any given period are less than the expected cumulative earnings of the Closed Block, the Company will recognize only the actual earnings in income. However, the Company may reduce policyholder dividend scales, which would be intended to increase future actual earnings until the actual cumulative earnings equaled the expected cumulative earnings. As of March 31, 2016 and December 31, 2015, the Company recognized a policyholder dividend obligation of $1,442 million and $1,694 million, respectively, to Closed Block policyholders for the excess of actual cumulative earnings over the expected cumulative earnings. Additionally, accumulated net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block have been reflected as a policyholder dividend obligation of $3,809 million and $2,815 million at March 31, 2016 and December 31, 2015, respectively, to be paid to Closed Block policyholders unless offset by future experience, with a corresponding amount reported in AOCI. Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from Closed Block liabilities and Closed Block assets, are as follows:
Information regarding the policyholder dividend obligation is as follows:
Closed Block revenues and benefits and expenses for the three months ended March 31, 2016 and 2015, were as follows:
|
Equity |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated:
__________
In December 2015, Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.5 billion of its outstanding Common Stock from January 1, 2016 through December 31, 2016. Effective January 1, 2016, this authorization superseded the Company’s $1.0 billion share repurchase authorization that was announced in June 2015, covering the period from July 1, 2015 through June 30, 2016. As of March 31, 2016, 5.4 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $375 million. The timing and amount of share repurchases are determined by management based upon market conditions and other considerations, and repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Securities Exchange Act of 1934. Numerous factors could affect the timing and amount of any future repurchases under the share repurchase authorization, including increased capital needs of the Company due to changes in regulatory capital requirements, opportunities for growth and acquisitions, and the effect of adverse market conditions on the segments. Class B Stock On January 2, 2015, pursuant to a Share Repurchase Agreement entered into on December 1, 2014, between the Company and the holders of the Class B Stock, the Company repurchased and canceled all of the shares of the Class B Stock for an aggregate cash purchase price of $651 million, resulting in the elimination of the Class B Stock held in treasury, a $484 million decrease in “Retained earnings” and a $167 million decrease in “Additional paid-in capital.” In accordance with the terms of the Share Repurchase Agreement, the holders of the Class B Stock subsequently exercised their right to dispute the calculation of the purchase price. This dispute was resolved during the first quarter of 2016, resulting in an increase to the cash purchase price of $119 million, bringing the total aggregate purchase price to $770 million. The increase to the cash purchase price resulted in a corresponding decrease in “Retained earnings.” Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of “Accumulated other comprehensive income (loss) attributable to Prudential Financial, Inc.” for the three months ended March 31, 2016 and 2015, are as follows:
__________
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
__________
Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized
__________
All Other Net Unrealized Investment Gains (Losses) in AOCI
__________
|
Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the periods indicated, is as follows:
Unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to Prudential Financial are allocated between Common Stock and the participating awards, as if the awards were a second class of stock. During periods of income from continuing operations available to holders of Common Stock, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of loss from continuing operations available to holders of Common Stock, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. Undistributed earnings allocated to participating unvested share-based payment awards for the three months ended March 31, 2016 and 2015, as applicable, were based on 5.1 million and 4.5 million of such awards, respectively, weighted for the period they were outstanding. Stock options and shares related to deferred and long-term compensation programs that are considered antidilutive are excluded from the computation of dilutive earnings per share. Stock options are considered antidilutive based on application of the treasury stock method or in the event of loss from continuing operations available to holders of Common Stock. Shares related to deferred and long-term compensation programs are considered antidilutive in the event of loss from continuing operations available to holders of Common Stock. For the periods indicated, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows:
In September 2009, the Company issued $500 million of surplus notes with an interest rate of 5.36% per annum which are exchangeable at the option of the note holders for shares of Common Stock. The initial exchange rate for the surplus notes was 10.1235 shares of Common Stock per each $1,000 principal amount of surplus notes, which represents an initial exchange price per share of Common Stock of $98.78; however, the exchange rate is subject to customary anti-dilution adjustments. In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued assuming a hypothetical exchange, weighted for the period the notes are outstanding, are added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. |
Short-Term and Long-Term Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term Debt The table below presents the Company’s short-term debt as of the dates indicated:
Commercial Paper Prudential Financial has a commercial paper program with an authorized capacity of $3.0 billion. Prudential Financial’s commercial paper borrowings have generally been used to fund the working capital needs of Prudential Financial’s subsidiaries and provide short-term liquidity at Prudential Financial. Prudential Funding, LLC (“Prudential Funding”), a wholly-owned subsidiary of Prudential Insurance, has a commercial paper program with an authorized capacity of $7.0 billion. Prudential Funding commercial paper borrowings generally have served as an additional source of financing to meet the working capital needs of Prudential Insurance and its subsidiaries. Prudential Funding also lends to other subsidiaries of Prudential Financial up to limits agreed with the New Jersey Department of Banking and Insurance (“NJDOBI”). Prudential Funding maintains a support agreement with Prudential Insurance whereby Prudential Insurance has agreed to maintain Prudential Funding’s tangible net worth at a positive level. Additionally, Prudential Financial has issued a subordinated guarantee covering Prudential Funding’s $7.0 billion commercial paper program. Federal Home Loan Bank of New York Prudential Insurance is a member of the Federal Home Loan Bank of New York (“FHLBNY”). Membership allows Prudential Insurance access to the FHLBNY’s financial services, including the ability to obtain collateralized loans and to issue collateralized funding agreements. Under applicable law, the funding agreements issued to the FHLBNY have priority claim status above debt holders of Prudential Insurance. FHLBNY borrowings and funding agreements are collateralized by qualifying mortgage-related assets or U.S. Treasury securities, the fair value of which must be maintained at certain specified levels relative to outstanding borrowings. FHLBNY membership requires Prudential Insurance to own member stock and borrowings require the purchase of activity-based stock in an amount equal to 4.5% of outstanding borrowings. Under FHLBNY guidelines, if any of Prudential Insurance’s financial strength ratings decline below A/A2/A Stable by S&P/Moody’s/Fitch, respectively, and the FHLBNY does not receive written assurances from the NJDOBI regarding Prudential Insurance’s solvency, new borrowings from the FHLBNY would be limited to a term of 90 days or less. Currently, there are no restrictions on the term of borrowings from the FHLBNY. NJDOBI permits Prudential Insurance to pledge collateral to the FHLBNY in an amount of up to 5% of its prior year-end statutory net admitted assets, excluding separate account assets. Based on Prudential Insurance’s statutory net admitted assets as of December 31, 2015, the 5% limitation equates to a maximum amount of pledged assets of $5.8 billion and an estimated maximum borrowing capacity (after taking into account required collateralization levels) of approximately $5.0 billion. Nevertheless, FHLBNY borrowings are subject to the FHLBNY’s discretion and to the availability of qualifying assets at Prudential Insurance. As of March 31, 2016, Prudential Insurance had pledged assets with a fair value of $1.2 billion supporting outstanding funding agreements totaling $1.0 billion, which are included in “Policyholders’ account balances.” The fair value of qualifying assets that were available to Prudential Insurance, but not pledged, amounted to $6.0 billion as of March 31, 2016. Prudential Insurance had no advances outstanding under the FHLB Facility as of March 31, 2016. Federal Home Loan Bank of Boston Prudential Retirement Insurance and Annuity Company (“PRIAC”) is a member of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows PRIAC access to collateralized advances which will be classified in “Short-term debt” or “Long-term debt,” depending on the maturity date of the obligation. PRIAC’s membership in FHLBB requires the ownership of member stock and borrowings from FHLBB require the purchase of activity-based stock in an amount between 3.0% and 4.5% of outstanding borrowings, depending on the maturity date of the obligation. As of March 31, 2016, PRIAC had no advances outstanding under the FHLBB facility. Under Connecticut state insurance law, without the prior consent of the Connecticut Insurance Department, the amount of assets insurers may pledge to secure debt obligations is limited to the lesser of 5% of prior year statutory admitted assets or 25% of prior year statutory surplus, resulting in a maximum borrowing capacity for PRIAC under the FHLBB facility of approximately $244 million as of March 31, 2016. Credit Facilities As of March 31, 2016, the Company maintained a syndicated, unsecured committed credit facility as described below.
Borrowings under this credit facility may be used for general corporate purposes, and the Company expects that it may borrow under the facility from time to time to fund its working capital needs. In addition, amounts under the credit facility may be drawn in the form of standby letters of credit that can be used to meet the Company’s operating needs. The credit facility contains representations and warranties, covenants and events of default that are customary for facilities of this type, and borrowings are not contingent on the Company’s credit ratings nor subject to material adverse change clauses. Borrowings under the credit facility are conditioned on the Company’s maintenance of consolidated net worth of at least $18.985 billion, which is calculated as U.S. GAAP equity, excluding AOCI, equity of noncontrolling interests and equity attributable to the Closed Block. As of March 31, 2016, the Company’s consolidated net worth exceeded this required minimum amount. Put Option Agreement for Senior Debt Issuance In November 2013, Prudential Financial entered into a ten-year put option agreement with a Delaware trust upon the completion of the sale of $1.5 billion of trust securities by that Delaware trust in a Rule 144A private placement. The trust invested the proceeds from the sale of the trust securities in a portfolio of principal and interest strips of U.S. Treasury securities. The put option agreement provides Prudential Financial the right to sell to the trust at any time up to $1.5 billion of 4.419% senior notes due November 2023 and receive in exchange a corresponding amount of the principal and interest strips of the U.S. Treasury securities held by the trust. In return, the Company agreed to pay a semi-annual put premium to the trust at a rate of 1.777% per annum applied to the unexercised portion of the put option. The put option agreement with the trust provides Prudential Financial with a source of liquid assets. The put option described above will be exercised automatically in full upon the Company’s failure to make certain payments to the trust, such as paying the put option premium or reimbursing the trust for its expenses, if the Company’s failure to pay is not cured within 30 days, and upon an event involving its bankruptcy. The Company is also required to exercise the put option if its consolidated stockholders’ equity, calculated in accordance with GAAP but excluding AOCI, falls below $7.0 billion, subject to adjustment in certain cases. The Company has a one-time right to unwind a prior voluntary exercise of the put option by repurchasing all of the senior notes then held by the trust in exchange for principal and interest strips of U.S. Treasury securities. Finally, any of the 4.419% senior notes that Prudential Financial issues may be redeemed prior to their maturity at par or, if greater, a make-whole price, following a voluntary exercise in full of the put option. Long-term Debt Surplus Notes During the first quarter of 2016, the Company increased the principal amount of surplus notes outstanding under its captive financing facility initially established in December 2013 for the financing of non-economic reserves required under Guideline AXXX by $140 million. As of March 31, 2016, an aggregate of $2.2 billion of surplus notes were outstanding under this facility and no credit-linked note payments have been required. Under the above transaction for the captive reinsurance subsidiary, because valid rights of set-off exist, interest and principal payments on the surplus notes and on the credit-linked notes are settled on a net basis, and the surplus notes are reflected in the Company’s total consolidated borrowings on a net basis. Senior Notes Medium-Term Notes. Prudential Financial maintains a medium-term notes program under its shelf registration statement with an authorized issuance capacity of $20.0 billion. As of March 31, 2016, the outstanding balance of the company’s medium-term notes was $10.6 billion, a decrease of $250 million from December 31, 2015, due to maturities. Retail Medium-Term Notes. Prudential Financial also maintains a retail medium-term notes program, including the InterNotes® program, under its shelf registration statement with an authorized issuance capacity of $5.0 billion. As of March 31, 2016, the outstanding balance of retail notes was $463 million. Mortgage Debt. As of March 31, 2016, the Company’s subsidiaries had mortgage debt of $589 million that has recourse only to real estate property held for investment by those subsidiaries. This represents an increase of $25 million from December 31, 2015, primarily due to new borrowings. |
Employee Benefit Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension and Other Postretirement Plans The Company has funded and non-funded non-contributory defined benefit pension plans, which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service, while benefits for other employees are based on an account balance that takes into consideration age, service and earnings during their career. The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents (“other postretirement benefits”). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Company’s U.S. employees may become eligible to receive other postretirement benefits if they retire after age 55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service. Net periodic (benefit) cost included in “General and administrative expenses” includes the following components:
|
Segment Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION Segments The Company’s principal operations are comprised of four divisions, which together encompass seven segments, and its Corporate and Other operations. The U.S. Retirement Solutions and Investment Management division consists of the Individual Annuities, Retirement and Asset Management segments. The U.S. Individual Life and Group Insurance division consists of the Individual Life and Group Insurance segments. The International Insurance division consists of the International Insurance segment. The Closed Block division consists of the Closed Block segment, which includes certain in force participating insurance and annuity products and corresponding assets that are used for the payment of benefits and policyholders’ dividends on these products, as well as certain related assets and liabilities. The Closed Block segment is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. Our Corporate and Other operations include corporate items and initiatives that are not allocated to business segments and businesses that have been or will be divested. Adjusted Operating Income The Company analyzes the operating performance of each segment using “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Adjusted operating income is calculated by adjusting each segment’s “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the following items, which are described in greater detail below:
These items are important to an understanding of overall results of operations. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies. However, the Company believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. Realized investment gains (losses), net, and related charges and adjustments Realized investment gains (losses), net Adjusted operating income excludes “Realized investment gains (losses), net,” except for certain items described below. Significant activity excluded from adjusted operating income includes impairments and credit-related gains (losses) from sales of securities, the timing of which depends largely on market credit cycles and can vary considerably across periods, and interest rate-related gains (losses) from sales of securities, which are largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile. Additionally, certain gains (losses) pertaining to derivative contracts that do not qualify for hedge accounting treatment are also excluded from adjusted operating income. Trends in the underlying profitability of the Company’s businesses can be more clearly identified without the fluctuating effects of these transactions. The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
__________
Terminated Hedges of Foreign Currency Earnings. The amounts shown in the table above primarily reflect the impact of an intercompany arrangement between Corporate and Other operations and the International Insurance segment, pursuant to which the non-U.S. dollar-denominated earnings in all countries for a particular year, including its interim reporting periods, are translated at fixed currency exchange rates. The fixed rates are determined in connection with a currency hedging program designed to mitigate the risk that unfavorable rate changes will reduce the segment’s U.S. dollar equivalent earnings. Pursuant to this program, the Company’s Corporate and Other operations may execute forward currency contracts with third parties to sell the net exposure of projected earnings from the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these contracts correspond with the future periods in which the identified non-U.S. dollar-denominated earnings are expected to be generated. These contracts do not qualify for hedge accounting under U.S. GAAP, so the resulting profits or losses are recorded in “Realized investment gains (losses), net.” When the contracts are terminated in the same period that the expected earnings emerge, the resulting positive or negative cash flow effect is included in adjusted operating income. Current Period Yield Adjustments. The Company uses interest rate and currency swaps and other derivatives to manage interest and currency exchange rate exposures arising from mismatches between assets and liabilities, including duration mismatches. For derivative contracts that do not qualify for hedge accounting treatment, the periodic swap settlements, as well as certain other derivative related yield adjustments are recorded in “Realized investment gains (losses), net,” and are included in adjusted operating income to reflect the after-hedge yield of the underlying instruments. In certain instances, when these derivative contracts are terminated or offset before their final maturity, the resulting realized gains or losses are recognized in adjusted operating income over periods that generally approximate the expected terms of the derivatives or underlying instruments in order for adjusted operating income to reflect the after-hedge yield of the underlying instruments. Included in the amounts shown in the table above are gains on certain derivative contracts that were terminated or offset before their final maturity of $12 million and $21 million for the three months ended March 31, 2016 and 2015, respectively. Additionally, as of March 31, 2016, there was a $149 million deferred net gain related to certain derivative contracts that were terminated or offset before their final maturity, primarily in the International Insurance segment. Also included in the amounts shown in the table above are fees related to synthetic Guaranteed Investment Contracts (“GICs”) of $39 million and $40 million for the three months ended March 31, 2016 and 2015, respectively. Synthetic GICs are accounted for as derivatives under U.S. GAAP and, therefore, these fees are recorded in “Realized investment gains (losses), net.” See Note 14 for additional information on synthetic GICs. Principal Source of Earnings. The Company conducts certain activities for which realized investment gains (losses) are a principal source of earnings for its businesses and therefore included in adjusted operating income, particularly within the Company’s Asset Management segment. For example, Asset Management’s strategic investing business makes investments for sale or syndication to other investors or for placement or co-investment in the Company’s managed funds and structured products. The realized investment gains (losses) associated with the sale of these strategic investments, as well as the majority of derivative results, are a principal activity for this business and included in adjusted operating income. In addition, the realized investment gains (losses) associated with loans originated by the Company’s commercial mortgage operations, as well as related derivative results and retained mortgage servicing rights, are a principal activity for this business and included in adjusted operating income. Other items reflected as adjustments to Realized investment gains (losses), net The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
Other Trading Account Assets. The Company has certain investments in its general account portfolios that are classified as trading. These trading investments are carried at fair value and included in “Other trading account assets, at fair value” on the Company’s Unaudited Interim Consolidated Statements of Financial Position. Realized and unrealized gains (losses) for these investments are recorded in “Other income.” Consistent with the exclusion of realized investment gains (losses) with respect to other investments managed on a consistent basis, the net gains or losses on these investments are excluded from adjusted operating income. Foreign Currency Exchange Movements. The Company has certain assets and liabilities for which, under U.S. GAAP, the changes in value, including those associated with changes in foreign currency exchange rates during the period, are recorded in “Other income.” To the extent the foreign currency exposure on these assets and liabilities is economically hedged or considered part of the Company’s capital funding strategies for its international subsidiaries, the change in value included in “Other income” is excluded from adjusted operating income. Other Activities. The Company excludes certain other items from adjusted operating income that are consistent with similar adjustments described above. Related charges Charges that relate to realized investment gains (losses) are also excluded from adjusted operating income, and include the following:
Investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes Certain products included in the Retirement and International Insurance segments are experience-rated in that investment results associated with these products are expected to ultimately accrue to contractholders. The majority of investments supporting these experience-rated products are classified as trading and are carried at fair value, with realized and unrealized gains (losses) reported in “Other income.” To a lesser extent, these experience-rated products are also supported by derivatives and commercial mortgage and other loans. The derivatives are carried at fair value, with realized and unrealized gains (losses) reported in “Realized investment gains (losses), net.” The commercial mortgage and other loans are carried at unpaid principal, net of unamortized discounts and an allowance for losses, with gains (losses) on sales and changes in the valuation allowance for commercial mortgage and other loans reported in “Realized investment gains (losses), net.” Adjusted operating income excludes net investment gains (losses) on trading account assets supporting insurance liabilities, which is consistent with the exclusion of realized investment gains (losses) with respect to other investments supporting insurance liabilities managed on a consistent basis. In addition, to be consistent with the historical treatment of charges related to realized investment gains (losses) on investments, adjusted operating income also excludes the change in contractholder liabilities due to asset value changes in the pool of investments (including changes in the fair value of commercial mortgage and other loans) supporting these experience-rated contracts, which are reflected in “Interest credited to policyholders’ account balances.” These adjustments are in addition to the exclusion from adjusted operating income of net investment gains (losses) on the related derivatives and commercial mortgage and other loans through “Realized investment gains (losses), net, and related charges and adjustments,” as discussed above. The result of this approach is that adjusted operating income for these products includes net fee revenue and interest spread the Company earns on these experience-rated contracts, and excludes changes in fair value of the pool of investments, both realized and unrealized, that are expected to ultimately accrue to the contractholders. Divested businesses The contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP, are excluded from adjusted operating income as the results of divested businesses are not considered relevant to understanding the Company’s ongoing operating results. Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Equity in earnings of operating joint ventures, on a pre-tax basis, are included in adjusted operating income as these results are a principal source of earnings. These earnings are reflected on a U.S. GAAP basis on an after-tax basis as a separate line on the Company’s Unaudited Interim Consolidated Statements of Operations. Earnings attributable to noncontrolling interests are excluded from adjusted operating income. Earnings attributable to noncontrolling interests represents the portion of earnings from consolidated entities that relates to the equity interests of minority investors, and are reflected on a U.S. GAAP basis as a separate line on the Company’s Unaudited Interim Consolidated Statements of Operations. Reconciliation of adjusted operating income and net income (loss) The table below reconciles adjusted operating income before income taxes to income from continuing operations before income taxes and equity in earnings of operating joint ventures:
The Individual Annuities segment results reflect DAC as if the individual annuity business is a stand-alone operation. The elimination of intersegment costs capitalized in accordance with this policy is included in consolidating adjustments within Corporate and Other operations. Reconciliation of select financial information The table below presents revenues and total assets for the Company’s reportable segments for the periods, or as of the dates, indicated:
__________
The Asset Management segment revenues include intersegment revenues primarily consisting of asset-based management and administration fees as follows:
Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated in consolidation in Corporate and Other. |
Income Taxes |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing authorities. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company does not anticipate any significant changes within the next 12 months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. Listed below are the tax years that remain subject to examination by major tax jurisdiction, at March 31, 2016:
The dividends received deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and is a significant component of the difference between the Company’s effective tax rate and the federal statutory tax rate of 35%. The DRD for the current period was estimated using information from 2015 and current year results, and was adjusted to take into account the current year’s equity market performance and expected business results. The actual current year DRD can vary from the estimate based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from mutual fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. There is a possibility that the IRS and the U.S. Treasury will address, through guidance, their issues related to the calculation of the DRD. For the last several years, the revenue proposals included in the Obama Administration’s budgets included proposed changes to the method used to determine the amount of the DRD. A change in the DRD, including the possible retroactive or prospective elimination of this deduction through guidance or legislation, could increase actual tax expense and reduce the Company’s consolidated net income. For tax years 2007 through 2016, the Company is participating in the IRS’s Compliance Assurance Program (“CAP”). Under CAP, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax return. If disagreements arise, accelerated resolutions programs are available to try to resolve the disagreements in a timely manner before the tax return is filed. |
Fair Value of Assets and Liabilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement—Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1—Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents and short-term investments, equity securities and derivative contracts that trade on an active exchange market. Level 2—Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain commercial mortgage loans, short-term investments and certain cash equivalents (primarily commercial paper), and certain over-the-counter (“OTC”) derivatives. Level 3—Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured OTC derivative contracts, certain commercial mortgage loans, certain consolidated real estate funds for which the Company is the general partner and embedded derivatives resulting from certain products with guaranteed benefits. Assets and Liabilities by Hierarchy Level—The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.
__________
The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities—The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of March 31, 2016 and December 31, 2015, overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends and back testing. The fair value of private fixed maturities, which are comprised of investments in private placement securities, originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including observed prices and spreads for similar publicly-traded or privately-traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Trading Account Assets—Trading account assets consist primarily of fixed maturity securities, equity securities and derivatives whose fair values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and below under “Equity Securities” and “Derivative Instruments.” Equity Securities—Equity securities consist principally of investments in common and preferred stock of publicly-traded companies, perpetual preferred stock, privately-traded securities, as well as mutual fund shares. The fair values of most publicly- traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. The fair values of perpetual preferred stock are based on inputs obtained from independent pricing services that are primarily based on indicative broker quotes. As a result, the fair values of perpetual preferred stock are classified as Level 3. Commercial Mortgage and Other Loans—The fair value of loans held and accounted for using the fair value option is determined utilizing pricing indicators from the whole loan market, where investors are committed to purchase these loans at a predetermined price, which is considered the principal exit market for these loans. The Company has evaluated the valuation inputs used for these assets, including the existence of predetermined exit prices, the terms of the loans, prevailing interest rates and credit risk, and deemed that the primary pricing inputs are Level 2 inputs in the fair value hierarchy. Other Long-Term Investments—Other long-term investments include limited partnerships which are consolidated because the Company is either deemed to exercise control or considered the primary beneficiary of a variable interest entity. These entities are considered investment companies and follow specialized industry accounting whereby their assets are carried at fair value. The investments held by these entities include various feeder fund investments in underlying master funds (whose underlying holdings generally include public fixed maturities, equity securities and mutual funds), as well as wholly-owned real estate held within other investment funds. The fair value is determined by reference to the underlying direct investments, with publicly-traded equity securities based on quoted prices in active markets reflected in Level 1, and public fixed maturities and mutual funds priced via quotes from pricing services or observable data reflected in Level 2. The fair value of investments in funds that are subject to significant liquidity restrictions are reflected in Level 3. As discussed in Note 2, the Company adopted ASU 2015-07, effective January 1, 2016, which resulted in the exclusion of certain Other long-term investments from the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At March 31, 2016 and December 31, 2015, the fair values of these investments, which include certain hedge funds, private equity funds and other funds were $1,301 million and $1,413 million, respectively, of which $82 million and $1,331 million had been previously classified in Level 2 and Level 3, respectively, at December 31, 2015. Other Assets—Other assets reflected in Level 3 include reinsurance recoverables which are carried at fair value and relate to the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. The methods and assumptions used to estimate the fair value are consistent with those described in “Future Policy Benefits”. Derivative Instruments—Derivatives are recorded at fair value either as assets, within “Other trading account assets,” or “Other long-term investments,” or as liabilities, within “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, commodity prices, credit spreads, market volatility, expected returns, non-performance risk (“NPR”), liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant risk positions, and consider the bid-ask spread, maturity, complexity and other specific attributes of the underlying derivative position. The Company’s exchange-traded futures and options include Treasury futures, Eurodollar futures, commodity futures, Eurodollar options and commodity options. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts, commodity swaps, commodity forward contracts, single name credit default swaps, loan commitments held for sale and “to be announced” (“TBA”) forward contracts on highly rated mortgage-backed securities issued by U.S. government sponsored entities are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. The vast majority of the Company’s derivative agreements are with highly rated major international financial institutions. To reflect the market’s perception of its own and the counterparty’s NPR, the Company incorporates additional spreads over London Inter-Bank Offered Rate (“LIBOR”) into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. Derivatives classified as Level 3 include look-back equity options and other structured products. These derivatives are valued based upon models, such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company’s fair values to external broker-dealer values. Cash Equivalents and Short-Term Investments—Cash equivalents and short-term investments include money market instruments, commercial paper and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and these investments have primarily been classified within Level 2. Separate Account Assets—Separate account assets include fixed maturity securities, treasuries, equity securities and mutual funds for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities,” and “Equity Securities.” As discussed in Note 2, the Company adopted ASU 2015-07, effective January 1, 2016, which resulted in the exclusion of certain separate account investments from the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At March 31, 2016 and December 31, 2015, the fair values of Separate Account Assets excluded from the fair value hierarchy, which include investments in real estate and other invested assets, were $25,928 million and $25,661 million, respectively, which had been previously classified in Level 3 at December 31, 2015. Notes issued by Consolidated VIEs—The fair values of these notes are based on indicative broker quotes and classified within Level 3. See Note 5 and “Fair Value Option” below for additional information. Other Liabilities—Other liabilities include certain derivative instruments, the fair values of which are determined consistent with similar derivative instruments described above under “Derivative Instruments.” Future Policy Benefits—The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts offered by the Company’s Individual Annuities segment, including guaranteed minimum accumulation benefit, guaranteed minimum withdrawal benefits and guaranteed minimum income and withdrawal benefits, accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. Transfers between Levels 1 and 2—Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate Account. The fair value of foreign common stock held in the Company’s Separate Account may reflect differences in market levels between the close of foreign trading markets and the close of U.S. trading markets for the respective day. Dependent on the existence of such a timing difference, the assets may move between Level 1 and Level 2. During the three months ended March 31, 2016, $254 million were transferred from Level 1 to Level 2 and $18 million were transferred from Level 2 to Level 1. During the three months ended March 31, 2015, $50 million were transferred from Level 1 to Level 2 and $17 million were transferred from Level 2 to Level 1. Level 3 Assets and Liabilities by Price Source—The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources.
__________
Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities—The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets).
__________
Interrelationships Between Unobservable Inputs—In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another or multiple inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities—The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. Future Policy Benefits—The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Separate Account Assets—In addition to the significant internally-priced Level 3 assets and liabilities presented and described above, the Company also has internally-priced separate account assets reported within Level 3. Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company’s Consolidated Statements of Financial Position. As a result, changes in value associated with these investments do not impact the Company’s Consolidated Statements of Operations. Quantitative information about significant internally-priced Level 3 separate account assets is as follows: Commercial Mortgage Loans—Separate account assets include $972 million and $960 million of commercial mortgage loans as of March 31, 2016 and December 31, 2015, respectively, that are classified as Level 3 and reported at fair value. Commercial mortgage loans are primarily valued internally using discounted cash flow techniques, as described further under “—Fair Value of Financial Instruments.” The primary unobservable input used is the spread to discount cash flows, which ranged from 1.43% to 3.58% (1.64% weighted average) as of March 31, 2016, and 1.49% to 4.81% (1.79% weighted average) as of December 31, 2015. In isolation, an increase (decrease) in the value of this input would result in a lower (higher) fair value measurement. Valuation Process for Fair Value Measurements Categorized within Level 3—The Company has established an internal control infrastructure over the valuation of financial instruments that requires ongoing oversight by its various business groups. These management control functions are segregated from the trading and investing functions. For invested assets, the Company has established oversight teams, often in the form of pricing committees within each asset management group. The teams, which typically include representation from investment, accounting, operations, legal and other disciplines are responsible for overseeing and monitoring the pricing of the Company’s investments and performing periodic due diligence reviews of independent pricing services. An actuarial valuation team oversees the valuation of living benefit features of the Company’s variable annuity contracts. The Company has also established policies and guidelines that require the establishment of valuation methodologies and consistent application of such methodologies. These policies and guidelines govern the use of inputs and price source hierarchies and provide controls around the valuation processes. These controls include appropriate review and analysis of investment prices against market activity or indicators of reasonableness, analysis of portfolio returns to corresponding benchmark returns, back-testing, review of bid/ask spreads to assess activity, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels. For living benefit features of the Company’s variable annuity products, the actuarial valuation unit periodically tests contract input data and actuarial assumptions are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. The valuation policies and guidelines are reviewed and updated as appropriate. Within the trading and investing functions, the Company has established policies and procedures that relate to the approval of all new transaction types, transaction pricing sources and fair value hierarchy coding within the financial reporting system. For variable annuity product changes or new launches of living benefit features, the actuarial valuation unit validates input logic and new product features and agrees new input data directly to source documents. Changes in Level 3 assets and liabilities—The following tables provide summaries of the changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods.
__________
Transfers—Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company is able to validate. Derivative Fair Value Information The following tables present the balance of derivative assets and liabilities measured at fair value on a recurring basis, as of the date indicated, by primary underlying. These tables include NPR and exclude embedded derivatives and associated reinsurance recoverables. The derivative assets and liabilities shown below are included in “Trading account assets-All Other Activity,” “Other long-term investments” or “Other liabilities” in the tables presented above, under the headings “Assets and Liabilities by Hierarchy Level” and “Changes in Level 3 Assets and Liabilities.”
__________
Changes in Level 3 derivative assets and liabilities—The following tables provide a summary of the changes in fair value of Level 3 derivative assets and liabilities for the three months ended March 31, 2016, as well as the portion of gains or losses included in income for the three months ended March 31, 2016, attributable to unrealized gains or losses related to those assets and liabilities still held at March 31, 2016.
__________
Nonrecurring Fair Value Measurements—The following table represents information for assets measured at fair value on a nonrecurring basis. The estimated fair values were classified as Level 3 in the valuation hierarchy.
__________
Fair Value Option The fair value option provides the Company an option to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made by the Company to help mitigate volatility in earnings that results from different measurement attributes. Electing the fair value option also allows the Company to achieve consistent accounting for certain assets and liabilities. The following table presents information regarding changes in fair values recorded in earnings for commercial mortgage and other loans, other long-term investments and notes issued by consolidated VIEs, where the fair value option has been elected.
Changes in fair value are reflected in “Realized investment gains (losses), net” for commercial mortgage and other loans and “Other income” for other long-term investments and notes issued by consolidated VIEs. Changes in fair value due to instrument-specific credit risk are estimated based on changes in credit spreads and quality ratings for the period reported. Interest income on commercial mortgage and other loans is included in net investment income. The Company recorded $2 million and $3 million of interest income for the three months ended March 31, 2016 and 2015, respectively, on fair value option loans. Interest income on these loans is recorded based on the effective interest rates as determined at the closing of the loan. The fair values and aggregate contractual principal amounts of commercial mortgage and other loans, for which the fair value option has been elected, were $286 million and $283 million, respectively, as of March 31, 2016, and $274 million and $270 million, respectively, as of December 31, 2015. As of March 31, 2016, there were no loans in non-accrual status and none of the loans are more than 90 days past due and still accruing. The fair value of other long-term investments was $1,292 million as of March 31, 2016 and $1,322 million as of December 31, 2015. The fair values and aggregate contractual principal amounts of limited recourse notes issued by consolidated VIEs, for which the fair value option has been elected at issuance, were $2,946 million and $3,292 million, respectively, as of March 31, 2016, and $8,597 million and $9,186 million, respectively as of December 31, 2015. Interest expense recorded for these liabilities was $38 million and $68 million for the three months ended March 31, 2016 and 2015, respectively. Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value.
__________
The fair values presented above have been determined by using available market information and by applying market valuation methodologies, as described in more detail below. Fixed Maturities, Held-to-Maturity The fair values of public fixed maturity securities are generally based on prices from third-party pricing services, which are reviewed for reasonableness; however, for certain public fixed maturity securities and investments in private placement fixed maturity securities, this information is either not available or not reliable. For these public fixed maturity securities, the fair value is based on indicative broker quotes, if available, or determined using a discounted cash flow model or other internally-developed models. For private fixed maturities, fair value is determined using a discounted cash flow model. In determining the fair value of certain fixed maturity securities, the discounted cash flow model may also use unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the security. Commercial Mortgage and Other Loans The fair value of most commercial mortgage loans is based upon the present value of the expected future cash flows discounted at the appropriate U.S. Treasury rate or foreign government bond rate (for non-U.S. dollar-denominated loans) plus an appropriate credit spread for similar quality loans. The quality ratings for these loans, a primary determinant of the credit spreads and a significant component of the pricing process, are based on an internally-developed methodology. Certain commercial mortgage loans are valued incorporating other factors, including the terms of the loans, the principal exit strategies for the loans, prevailing interest rates and credit risk. Other loan valuations are primarily based upon the present value of the expected future cash flows discounted at the appropriate local government bond rate and local market swap rates or credit default swap spreads, plus an appropriate credit spread and liquidity premium. The credit spread and liquidity premium are a significant component of the pricing inputs, and are based upon an internally-developed methodology, which takes into account, among other factors, the credit quality of the loans, the property type of the collateral, the weighted average coupon and the weighted average life of the loans. Policy Loans The Company’s valuation technique for policy loans is to discount cash flows at the current policy loan coupon rate. Policy loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the policy loans approximates the fair value. Short-Term Investments, Cash and Cash Equivalents, Accrued Investment Income and Other Assets The Company believes that due to the short-term nature of certain assets, the carrying value approximates fair value. These assets include: certain short-term investments which are not securities, are recorded at amortized cost and include quality loans; cash and cash equivalent instruments; accrued investment income; and other assets that meet the definition of financial instruments, including receivables, such as reinsurance recoverables, unsettled trades, accounts receivable and restricted cash. Policyholders’ Account Balances—Investment Contracts Only the portion of policyholders’ account balances related to products that are investment contracts (those without significant mortality or morbidity risk) are reflected in the table above. For fixed deferred annuities, single premium endowments, payout annuities and other similar contracts without life contingencies, fair values are generally derived using discounted projected cash flows based on interest rates that are representative of the Company’s financial strength ratings, and hence reflect the Company’s own NPR. For guaranteed investment contracts, funding agreements, structured settlements without life contingencies and other similar products, fair values are generally derived using discounted projected cash flows based on interest rates being offered for similar contracts with maturities consistent with those of the contracts being valued. For those balances that can be withdrawn by the customer at any time without prior notice or penalty, the fair value is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value. For defined contribution and defined benefit contracts and certain other products, the fair value is the market value of the assets supporting the liabilities. Securities Sold Under Agreements to Repurchase The Company receives collateral for selling securities under agreements to repurchase, or pledges collateral under agreements to resell. Repurchase and resale agreements are also generally short-term in nature and, therefore, the carrying amounts of these instruments approximate fair value. Cash Collateral for Loaned Securities Cash collateral for loaned securities represents the collateral received or paid in connection with loaning or borrowing securities, similar to the securities sold under agreement to repurchase above. For these transactions, the carrying value of the related asset or liability approximates fair value, as they equal the amount of cash collateral received or paid. Debt The fair value of short-term and long-term debt, as well as notes issued by consolidated VIEs, is generally determined by either prices obtained from independent pricing services, which are validated by the Company, or discounted cash flow models. With the exception of the notes issued by consolidated VIEs for which recourse is limited to the assets of the respective VIE and does not extend to the general credit of the Company, the fair values of these instruments consider the Company’s own NPR. Discounted cash flow models predominately use market observable inputs such as the borrowing rates currently available to the Company for debt and financial instruments with similar terms and remaining maturities. For commercial paper issuances and other debt with a maturity of less than 90 days, the carrying value approximates fair value. Other Liabilities Other liabilities are primarily payables, such as reinsurance payables, unsettled trades, drafts and accrued expense payables. Due to the short-term until settlement of most of these liabilities, the Company believes that carrying value approximates fair value. Separate Account Liabilities—Investment Contracts Only the portion of separate account liabilities related to products that are investment contracts are reflected in the table above. Separate account liabilities are recorded at the amount credited to the contractholder, which reflects the change in fair value of the corresponding separate account assets including contractholder deposits less withdrawals and fees; therefore, carrying value approximates fair value. |
Derivative Instruments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps, options and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company also uses swaptions, interest rate caps and interest rate floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions and interest rate caps and floors are included in interest rate options. In exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the values of underlying referenced investments, and posts variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission’s merchants who are members of a trading exchange. Equity Contracts Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and LIBOR plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. Foreign Exchange Contracts Currency derivatives, including currency futures, options, forwards and swaps, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell, and to hedge the currency risk associated with net investments in foreign operations and anticipated earnings of its foreign operations. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. As noted above, the Company uses currency forwards to mitigate the impact of changes in currency exchange rates on U.S. dollar equivalent earnings generated by certain of its non-U.S. businesses, primarily its international insurance and investment operations. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. These earnings hedges do not qualify for hedge accounting. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. Credit Contracts The Company writes credit default swaps for which it receives a premium to insure credit risk. These are used by the Company to enhance the return on the Company’s investment portfolio by creating credit exposure similar to an investment in public fixed maturity cash instruments. With these derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced names (or an index’s referenced names) public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate. See credit derivatives written section for further discussion of guarantees. In addition to selling credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Other Contracts TBAs. The Company uses TBA forward contracts to gain exposure to the investment risk and return of mortgage-backed securities. TBA transactions can help the Company enhance the return on its investment portfolio, and can provide a more liquid and cost effective method of achieving these goals than purchasing or selling individual mortgage-backed pools. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. Additionally, pursuant to the Company’s mortgage dollar roll program, TBAs or mortgage-backed securities are transferred to counterparties with a corresponding agreement to repurchase them at a future date. These transactions do not qualify as secured borrowings and are accounted for as derivatives. Loan Commitments. In its mortgage operations, the Company enters into commitments to fund commercial mortgage loans at specified interest rates and other applicable terms within specified periods of time. These commitments are legally binding agreements to extend credit to a counterparty. Loan commitments for loans that will be held for sale are recognized as derivatives and recorded at fair value. The determination of the fair value of loan commitments accounted for as derivatives considers various factors including, among others, terms of the related loan, the intended exit strategy for the loans based upon either securitization valuation models or investor purchase commitments, prevailing interest rates, origination income or expense, and the value of service rights. Loan commitments that relate to the origination of mortgage loans that will be held for investment are not accounted for as derivatives and accordingly are not recognized in the Company’s financial statements. See Note 15 for additional information. Embedded Derivatives. The Company sells variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. These embedded derivatives are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models. The Company maintains a portfolio of derivative instruments that is intended to offset certain risks related to the above products’ features. The derivatives may include, but are not limited to equity options, total return swaps, interest rate swaptions, caps, floors and other instruments. Synthetic Guarantees. The Company sells synthetic GICs, through both full service and investment-only sales channels, to investment vehicles primarily used by qualified defined contribution pension plans. The synthetic GICs are issued in respect of assets that are owned by the trustees of such plans, who invest the assets according to the contract terms agreed to with the Company. The contracts establish participant balances and credit interest thereon. The participant balances are supported by the underlying assets. In connection with certain participant-initiated withdrawals, the contract guarantees that after all underlying assets are liquidated, any remaining participant balances will be paid by the Company. Under U.S. GAAP, these contracts are accounted for as derivatives and recorded at fair value. The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty and NPR. This netting impact results in total derivative assets of $2,209 million and $2,728 million as of March 31, 2016 and December 31, 2015, respectively, and total derivative liabilities of $443 million and $40 million as of March 31, 2016 and December 31, 2015, respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position.
__________
Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.
__________
For information regarding the rights of offset associated with the derivative assets and liabilities in the table above, see “—Counterparty Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2015. Cash Flow, Fair Value and Net Investment Hedges The primary derivative instruments used by the Company in its fair value, cash flow and net investment hedge accounting relationships are interest rate swaps, currency swaps and currency forwards. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its fair value, cash flow or net investment hedge accounting relationships. The following table provides the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.
__________
For the three months ended March 31, 2016 and 2015, the ineffective portion of derivatives accounted for using hedge accounting was not material to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. In addition, there were no instances in which the Company discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:
Using March 31, 2016 values, it is estimated that a pre-tax gain of approximately $105 million will be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2017, offset by amounts pertaining to the hedged items. As of March 31, 2016, the Company does not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 29 years. Income amounts deferred in AOCI as a result of cash flow hedges are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Comprehensive Income. For effective net investment hedges, the amounts, before applicable taxes, recorded in the cumulative translation adjustment account within AOCI were $533 million and $541 million as of March 31, 2016 and December 31, 2015, respectively. Credit Derivatives Credit derivatives, where the Company has written credit protection on a single name reference, had outstanding notional amounts of $107 million and $106 million as of March 31, 2016 and December 31, 2015, respectively. These credit derivatives are reported at fair value as a liability of $1 million and $3 million as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, these credit derivatives’ notionals had the following NAIC ratings: $36 million in NAIC 1, $60 million in NAIC 2, $6 million in NAIC 3, $2 million in NAIC 5 and $3 million in NAIC 6. The Company has also written credit protection on certain index references with notional amounts of $800 million and $701 million, reported at fair value as a liability of $39 million and $24 million as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, these credit derivatives’ notionals had a NAIC rating of NAIC 1. NAIC designations are based on the lowest rated single name reference included in the index. The Company’s maximum amount at risk under these credit derivatives equals the aforementioned notional amounts and assumes the value of the underlying referenced securities become worthless. These single name credit derivatives have maturities of less than 5 years, while the credit protection on the index references have maturities of less than 43 years. This excludes a credit derivative related to surplus notes issued by a subsidiary of Prudential Insurance. The Company also entered into a credit derivative that will require the Company to make certain payments in the event of deterioration in the value of the surplus notes issued by a subsidiary of Prudential Insurance. The notional amount of this credit derivative was $500 million and was reported at fair value as of March 31, 2016 and December 31, 2015 as a liability of $36 million and $15 million, respectively. No collateral was pledged in either period. In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of March 31, 2016 and December 31, 2015, the Company had $407 million and $532 million of outstanding notional amounts reported at fair value as a liability of $9 million and $8 million, respectively. Counterparty Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions. The Company manages credit risk by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral, such as cash and securities, when appropriate. Additionally, limits are set on single party credit exposures which are subject to periodic management review. The credit exposure of the Company’s OTC derivative transactions is represented by the contracts with a positive fair value at the reporting date. To reduce credit exposures, the Company seeks to: enter into OTC derivative transactions pursuant to master agreements that provide for a netting of payments and receipts with a single counterparty, and enter into agreements that allow the use of credit support annexes, which are bilateral rating-sensitive agreements that require collateral postings at established threshold levels. Cleared derivatives are transactions between the Company and a counterparty where the transactions are cleared through a clearinghouse, such that each derivative counterparty is only exposed to the default of the clearinghouse. These cleared transactions require initial and daily variation margin collateral postings and include certain interest rate swaps and credit default swaps entered into on or after June 10, 2013, related to guidelines under Dodd-Frank. The Company also enters into exchange-traded futures and certain options transactions through regulated exchanges and these transactions are settled on a daily basis, thereby reducing credit risk exposure in the event of non-performance by counterparties to such financial instruments. Under fair value measurements, the Company incorporates the market’s perception of its own and the counterparty’s NPR in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company’s own credit spread, a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company’s counterparty’s credit spread is applied to OTC derivative net asset positions. Certain of the Company’s derivative agreements with some of its counterparties contain credit-rating related triggers. If the Company’s credit rating were to fall below a certain level, the counterparties to the derivative instruments could request termination at the then fair value of the derivative or demand immediate full collateralization on derivative instruments in net liability positions. As of March 31, 2016, there were no net liability derivative positions with counterparties with credit-risk-related contingent features. As such, the Company has not posted any collateral related to these positions and the Company would not be required to post any additional collateral to the counterparties if the credit-risk-related contingent features underlying these agreements had been triggered as of March 31, 2016. |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Guarantees And Contingent Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters | COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Commitments and Guarantees Commercial Mortgage Loan Commitments
In connection with the Company’s commercial mortgage operations, it originates commercial mortgage loans. Commitments for loans that will be held for sale are recognized as derivatives and recorded at fair value. In certain of these transactions, the Company pre-arranges that it will sell the loan to an investor, including to government sponsored entities as discussed below, after the Company funds the loan. Commitments to Purchase Investments (excluding Commercial Mortgage Loans)
The Company has other commitments to purchase or fund investments, some of which are contingent upon events or circumstances not under the Company’s control, including those at the discretion of the Company’s counterparties. The Company anticipates a portion of these commitments will ultimately be funded from its separate accounts. Indemnification of Securities Lending Transactions
In the normal course of business, the Company may facilitate securities lending transactions on behalf of mutual funds, trust funds, and insurance company separate account clients (collectively, “the accounts”) for which the Company is the investment advisor and/or the asset manager. In certain of these arrangements, the Company has provided an indemnification to the accounts to hold them harmless against losses caused by counterparty (i.e., borrower) defaults associated with the securities lending activity facilitated by the Company. Collateral is provided by the counterparty to the accounts at the inception of the loan equal to or greater than 102% of the fair value of the loaned securities and the collateral is maintained daily at 102% or greater of the fair value of the loaned securities. The Company is only at risk if the counterparty to the securities lending transaction defaults and the value of the collateral held is less than the value of the securities loaned to such counterparty. The Company believes the possibility of any payments under these indemnities is remote. Credit Derivatives Written As discussed further in Note 14, the Company writes credit derivatives under which the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the defaulted security or similar security. Guarantees of Asset Values
Certain contracts underwritten by the Retirement segment include guarantees related to financial assets owned by the guaranteed party. These contracts are accounted for as derivatives and carried at fair value. The collateral supporting these guarantees is not reflected on the Unaudited Interim Consolidated Statements of Financial Position. Guarantees of Credit Enhancements
The Company arranges for credit enhancements of certain debt instruments that provide financing primarily for affordable multi-family real estate assets, including certain tax-exempt bond financings. The credit enhancements provide assurances to the debt holders as to the timely payment of amounts due under the debt instruments. The remaining contractual maturities for these guarantees are up to fifteen years. The Company’s obligations to reimburse required credit enhancement payments are secured by mortgages on the related real estate. The Company receives certain ongoing fees for providing these enhancement arrangements and anticipates the extinguishment of its obligation under these enhancements prior to maturity through the aggregation and transfer of its positions to a substitute enhancement provider. Indemnification of Serviced Mortgage Loans
As part of the commercial mortgage activities of the Company’s Asset Management segment, the Company provides commercial mortgage origination, underwriting and servicing for certain government sponsored entities, such as Fannie Mae and Freddie Mac. The Company has agreed to indemnify the government sponsored entities for a portion of the credit risk associated with certain of the mortgages it services through a delegated authority arrangement. Under these arrangements, the Company originates multi-family mortgages for sale to the government sponsored entities based on underwriting standards they specify, and makes payments to them for a specified percentage share of losses they incur on certain loans serviced by the Company. The Company’s percentage share of losses incurred generally varies from 2% to 20% of the loan balance, and is typically based on a first-loss exposure for a stated percentage of the loan balance, plus a shared exposure with the government sponsored entity for any losses in excess of the stated first-loss percentage, subject to a contractually specified maximum percentage. The Company services $10,064 million of mortgages subject to these loss-sharing arrangements as of March 31, 2016, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of March 31, 2016, these mortgages had a weighted-average debt service coverage ratio of 1.84 times and a weighted-average loan-to-value ratio of 61%. The Company had no losses related to indemnifications that were settled for the three months ended March 31, 2016 and 2015, respectively. Other Guarantees
The Company is also subject to other financial guarantees and indemnity arrangements. The Company has provided indemnities and guarantees related to acquisitions, dispositions, investments and other transactions that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. Included above are $321 million and $317 million as of March 31, 2016 and December 31, 2015, respectively, of yield maintenance guarantees related to certain investments the Company sold. The Company does not expect to make any payments on these guarantees and is not carrying any liabilities associated with these guarantees. Since certain of these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due under these guarantees. The accrued liabilities identified above do not include retained liabilities associated with sold businesses. Contingent Liabilities On an ongoing basis, the Company’s internal supervisory and control functions review the quality of sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. From time to time, this review process results in the discovery of product administration, servicing or other errors, including errors relating to the timing or amount of payments or contract values due to customers. In certain cases, if appropriate, the Company may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “—Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flow of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flow for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its businesses. Pending legal and regulatory actions include proceedings relating to aspects of the Company’s businesses and operations that are specific to it and proceedings that are typical of the businesses in which it operates, including in both cases businesses that have been either divested or placed in wind-down status. Some of these proceedings have been brought on behalf of various alleged classes of complainants. In certain of these matters, the plaintiffs are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established but the matter, if material, is disclosed, including matters discussed below. The Company estimates that as of March 31, 2016, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $250 million. Any estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. The following discussion of litigations and regulatory matters provides an update of those matters discussed in Note 23 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and should be read in conjunction with the complete descriptions provided in the Form 10-K. Rosen, v. PRIAC, et al. In April 2016, Plaintiff filed an amended complaint: (i) removing Prudential Investment Management Services, LLC, as a defendant; (ii) withdrawing all claims concerning Stable Value Accounts; and (iii) adding as defendants the employer/sponsor of Plaintiff's retirement plan (Ferguson Enterprises, Inc.), and the investment advisor for Plaintiff’s retirement plan (Capfinancial Partners, LLC d/b/a Captrust Financial Advisors). Muir v. PRIAC, et al. In February 2016, a putative class action complaint entitled Randall C. Muir, on behalf of the Ferguson Enterprises, Inc. 401(k) Retirement Savings Plan and All Other Similarly Situated Plans v. PRIAC, Prudential Bank & Trust, FSB, and Prudential Investment Management Services, LLC, was filed in the United States District Court, District of Connecticut. The complaint: (1) seeks certification of a class of all Employee Retirement Income Security Act covered employee pension benefit plans with which Prudential has maintained a contractual relationship based on a group annuity contract or group funding agreement; and (2) alleges that the defendants breached their fiduciary obligations by accepting revenue sharing payments from investment vehicles in its separate accounts and/or by accepting excessive compensation by crediting rates on stable value accounts that are less than PRIAC’s internal rate of return. In April 2016, Plaintiff filed an unopposed motion to consolidate this lawsuit with the Rosen lawsuit. Financial Disclosures Concerning Death Benefits and Unclaimed Property City of Sterling Heights General Employees’ Retirement System v. Prudential Financial, Inc., et. al.—In April 2016, the parties entered into a proposed agreement to resolve the class action claims asserted in the amended complaint. Thereafter, plaintiffs filed a motion for an order preliminarily approving the settlement in accordance with the parties' April 2016 Stipulation of Settlement. Residential Mortgage-Backed Securities Trustee PICA et al. v. Bank of New York Mellon (“BONYM”)—In March 2016, the Court issued a decision involving BONYM’s motion to dismiss: (i) denying the motion to dismiss the Pooling and Servicing Agreement (“PSA”) trust claims for lack of jurisdiction; (ii) denying the motion regarding claims for violations of the Trust Indenture Act of 1939 and breach of contract; and (iii) granting the motion regarding claims for negligence and breach of fiduciary duty. PICA et al. v. Citibank N.A.—In February 2016, Citibank filed a motion to dismiss the state court complaint. PICA et al. v. Deutsche Bank, et al.—In February 2016, the Company, together with other institutional investor plaintiffs, filed an amended complaint in federal court. In March 2016, the Company, together with other institutional investors, filed a complaint in California State Superior Court, captioned BlackRock Balanced Capital Portfolio (FI), et al. v. Deutsche Bank Trust Company Americas, asserting claims relating to the PSA trusts. PICA et al. v. U.S. Bank National Association—In February 2016, the federal district court issued a decision involving U.S. Bank’s motion to dismiss: (1) upholding the breach of contract and Trust Indenture Act claims; and (2) dismissing the breach of fiduciary duty and extra-contractual claims. PICA et al. v. Wells Fargo Bank, et al.—In February 2016, the Company, together with other institutional investor plaintiffs, filed an amended complaint in federal court. In March 2016, the Company, together with other institutional investors, filed a complaint in California State Superior Court, captioned BlackRock Balanced Capital Portfolio (FI), et al. v. Wells Fargo Bank, Nat’l Ass’n., asserting claims relating to the PSA trusts. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flow in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flow for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Significant Accounting Policies and Pronouncements (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation As a result of the Class B Repurchase and resulting elimination of the separation of the Financial Services Businesses and the Closed Block Business, these Unaudited Interim Consolidated Financial Statements refer to the divisions and segments of the Company that formerly comprised the Financial Services Businesses as “PFI excluding Closed Block division” and refer to the operations that were formerly included in the Closed Block Business as the “Closed Block division,” except as otherwise noted. Closed Block Business results were associated with the Company’s Class B Stock for periods prior to January 1, 2015. The Unaudited Interim Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner, and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. See Note 5 for more information on the Company’s consolidated variable interest entities. The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company’s Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations use a November 30 fiscal year end for purposes of inclusion in the Company’s Consolidated Financial Statements. The unaudited interim consolidated balance sheet data as of March 31, 2016, include the assets and liabilities of Gibraltar Life as of February 29, 2016. The unaudited interim consolidated income statement data include Gibraltar Life’s results of operations for the three months ended February 29, 2016 and February 28, 2015, respectively. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs (“DAC”) and related amortization; value of business acquired (“VOBA”) and its amortization; amortization of deferred sales inducements (“DSI”); measurement of goodwill and any related impairment; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. |
Reclassifications, Policy | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued guidance (Accounting Standards Update (“ASU”) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)) to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2015, and was applied retrospectively. Adoption of the guidance did not have a significant effect on the Company’s financial statement disclosures. See Note 13. In April 2015, the FASB issued updated guidance (ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs) that simplifies the presentation of debt issuance costs. The pronouncement requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company adopted the guidance effective January 1, 2016. Prior period financial information presented in these financial statements has been adjusted to reflect the retrospective adoption of the amended guidance. “Other assets” and “Long-term debt” as previously reported on the Company’s consolidated statements of financial position as of December 31, 2015 were both reduced by $133 million as a result of this retrospective adoption. In February 2015, the FASB issued updated guidance (ASU 2015-02, Consolidation (Topic 810): Amendments to Consolidation Analysis) that modifies the rules regarding consolidation. The pronouncement eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted the updated guidance effective January 1, 2016 and applied the modified retrospective method of adoption, primarily resulting in the deconsolidation of certain of its previously consolidated collateralized loan obligations (“CLOs”), as its fee arrangements are no longer deemed variable interests in these entities. The Company continues to consolidate CLOs where it retains other economic interests which absorb more than an insignificant amount of the CLOs expected variability. The Company also deconsolidated certain investment structures where it is no longer deemed to be the primary beneficiary as the Company, through its equity ownership, no longer has the obligation to absorb losses of the VIE that could be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The impact to the Company’s consolidated statements of financial position upon adoption of the updated guidance is a reduction of $5.5 billion of “Total assets” (including $5.1 billion of “Total investments”) and $5.5 billion of “Total liabilities” (including $5.1 billion of “Notes issued by consolidated variable interest entities”), with a $30 million decrease in “Noncontrolling interests” and a $7 million increase to “Total Prudential Financial, Inc. equity.” In August 2014, the FASB issued updated guidance (ASU 2014-14, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure) requiring that mortgage loans be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In August 2014, the FASB issued updated guidance (ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity) for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity. Under the guidance, an entity within scope is permitted to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity based on either the fair value of the financial assets or the financial liabilities, whichever is more observable. If adopted, the guidance eliminates the measurement difference that exists when both are measured at fair value. The Company adopted the updated guidance effective January 1, 2016, and applied the modified retrospective method of adoption. The impact to the Company’s consolidated statements of financial position upon adoption of the updated guidance was a $4 million reduction in “Total liabilities” and a $4 million increase to “Total Prudential Financial, Inc. equity.” In June 2014, the FASB issued updated guidance (ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures) that requires repurchase-to-maturity transactions to be accounted for as secured borrowings and eliminates existing guidance for repurchase financings. The guidance also requires new disclosures for certain transactions accounted for as secured borrowings and for transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets. Accounting changes and new disclosures for transfers accounted for as sales under the new guidance were effective for the first interim or annual period beginning after December 15, 2014, and did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. Disclosures for certain transactions accounted for as secured borrowings were effective for interim periods beginning after March 15, 2015, and are included in Note 4. In April 2014, the FASB issued updated guidance (ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity) that changes the criteria for reporting discontinued operations and introduces new disclosures. The new guidance became effective for new disposals and new classifications of disposal groups as held for sale that occur within annual periods that began on or after December 15, 2014, and interim periods within those annual periods. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In January 2014, the FASB issued updated guidance (ASU 2014-04, Receivables—Troubled Debt Restructuring by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure) for troubled debt restructurings clarifying when an in-substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In January 2014, the FASB issued updated guidance (ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects) regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance became effective for annual periods and interim reporting periods within those annual periods that began after December 15, 2014. The Company did not elect the proportional amortization method under this guidance. As discussed in Note 2, the Company adopted ASU 2015-07, effective January 1, 2016, which resulted in the exclusion of certain separate account investments from the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At March 31, 2016 and December 31, 2015, the fair values of Separate Account Assets excluded from the fair value hierarchy, which include investments in real estate and other invested assets, were $25,928 million and $25,661 million, respectively, which had been previously classified in Level 3 at December 31, 2015. As discussed in Note 2, the Company adopted ASU 2015-07, effective January 1, 2016, which resulted in the exclusion of certain Other long-term investments from the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At March 31, 2016 and December 31, 2015, the fair values of these investments, which include certain hedge funds, private equity funds and other funds were $1,301 million and $1,413 million, respectively, of which $82 million and $1,331 million had been previously classified in Level 2 and Level 3, respectively, at December 31, 2015. |
Future Adoption of New Accounting Pronouncements | Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued updated guidance (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)) on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. In August 2015, the FASB issued an update to defer the original effective date of this guidance. As a result of the deferral, the new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017, and must be applied using one of two retrospective application methods. Early adoption is permitted only for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In May 2015, the FASB issued final guidance (ASU 2015-09, Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts) that aims to enhance disclosures about insurance contracts classified as short-duration. The new disclosure requirements focus on providing users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, methodologies and judgments in estimating claims, and timing, frequency and severity of claims as they relate to short-duration insurance contracts. The new guidance is effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016, and is to be applied retrospectively. The Company is currently assessing the impact of the guidance on the Company’s financial statement disclosures but has concluded that this guidance will not impact the Company’s consolidated financial position or results of operations. In January 2016, the FASB issued updated guidance (ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial assets and financial liabilities. The guidance revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2017. Early adoption is not permitted except for the provisions related to the presentation of certain fair value changes for financial liabilities measured at fair value. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In February 2016, the FASB issued guidance (ASU 2016-02, Leases (Topic 842)) that ensures assets and liabilities from all outstanding lease contracts are recognized on balance sheet (with limited exception). The guidance substantially changes a Lessee’s accounting for leases and requires the recording on balance sheet of a “right-of-use” asset and liability to make lease payments for most leases. A Lessee will continue to recognize expense in its income statement in a manner similar to the requirements under the current lease accounting guidance. For Lessors, the guidance modifies classification criteria and accounting for sales-type and direct financing leases and requires a Lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a Lessee and record a lease receivable and residual asset (“receivable and residual” approach). The guidance also eliminates the real estate specific provisions of the current guidance (i.e., sale-leaseback). The amendments are effective for financial statements issued for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In March 2016, the FASB issued guidance (ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting) to simplify the transition to equity method when an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments are effective for financial statements issued for annual reporting periods beginning after December 15, 2016, and for interim periods within those annual periods. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In March 2016, the FASB issued guidance (ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payments Accounting) to simplify and improve employee share-based payment accounting. The areas updated include income tax consequences, a policy election related to forfeitures, classification of awards as either equity or liability, and classification of operating and financing activity on the statement of cash flows. The amendments are effective for financial statements issued for annual reporting periods beginning after December 15, 2016, and for interim periods within those annual periods, with early adoption permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. |
Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities and Equity Securities, Available-for-sale Securities |
The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities, Held-to-maturity Securities |
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities by contractual maturities at March 31, 2016, are as follows:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities | The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | The following table sets forth the composition of “Trading account assets supporting insurance liabilities” as of the dates indicated:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Trading Account Assets Disclosure | The following table sets forth the composition of the “Other trading account assets” as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Securities Disclosure | As of both March 31, 2016 and December 31, 2015, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government and certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage and Other Loans | The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Losses | Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated:
__________
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Financing Receivables | Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses and the related allowance for losses, as of the dates indicated, are as follows:
__________
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | The following tables set forth certain key credit quality indicators as of December 31, 2015, based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans
Agricultural property loans
Total commercial mortgage and agricultural property loans
The following tables set forth certain key credit quality indicators as of March 31, 2016, based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans
Agricultural property loans
Total commercial mortgage and agricultural property loans
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage loans on nonaccrual status as of the dates indicated.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Investment Income | Net investment income for the three months ended March 31, 2016 and 2015, was from the following sources:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gain (Loss) on Investments | Realized investment gains (losses), net, for the three months ended March 31, 2016 and 2015, were from the following sources:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gains and (Losses) on Investments | The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Duration Of Gross Unrealized Losses On Fixed Maturity and Equity Securities | The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated:
__________
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The following table sets forth the composition of repurchase agreements as of the dates indicated.
The following table sets forth the composition of securities lending transactions as of the dates indicated.
|
Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Qualified Special Purpose Entities and Variable Interest Entities | The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs that are non-recourse to the Company. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs.
__________
|
Closed Block (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed Block Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Closed Block Liabilities and Assets | Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from Closed Block liabilities and Closed Block assets, are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Closed Block Revenues Benefits Expenses | Closed Block revenues and benefits and expenses for the three months ended March 31, 2016 and 2015, were as follows:
|
Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Disclosure | The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of “Accumulated other comprehensive income (loss) attributable to Prudential Financial, Inc.” for the three months ended March 31, 2016 and 2015, are as follows:
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss)
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Unrealized Investment Gain (Loss) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI
__________
|
Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the periods indicated, is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Computation | For the periods indicated, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows:
|
Short-Term and Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt | The table below presents the Company’s short-term debt as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Credit Facilities | As of March 31, 2016, the Company maintained a syndicated, unsecured committed credit facility as described below.
|
Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Net periodic (benefit) cost included in “General and administrative expenses” includes the following components:
|
Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
__________
The table below reconciles adjusted operating income before income taxes to income from continuing operations before income taxes and equity in earnings of operating joint ventures:
The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Certain Financial Information from Segments to Consolidated | The table below presents revenues and total assets for the Company’s reportable segments for the periods, or as of the dates, indicated:
__________
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intersegment Revenues | The Asset Management segment revenues include intersegment revenues primarily consisting of asset-based management and administration fees as follows:
|
Income Taxes (Tables) |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Open Tax Years By Major Tax Jurisdictions | Listed below are the tax years that remain subject to examination by major tax jurisdiction, at March 31, 2016:
|
Fair Value of Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Level Three Amounts By Pricing Source | The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets).
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide summaries of the changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring Basis, Derivatives | The following tables present the balance of derivative assets and liabilities measured at fair value on a recurring basis, as of the date indicated, by primary underlying. These tables include NPR and exclude embedded derivatives and associated reinsurance recoverables. The derivative assets and liabilities shown below are included in “Trading account assets-All Other Activity,” “Other long-term investments” or “Other liabilities” in the tables presented above, under the headings “Assets and Liabilities by Hierarchy Level” and “Changes in Level 3 Assets and Liabilities.”
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation, Derivatives | The following tables provide a summary of the changes in fair value of Level 3 derivative assets and liabilities for the three months ended March 31, 2016, as well as the portion of gains or losses included in income for the three months ended March 31, 2016, attributable to unrealized gains or losses related to those assets and liabilities still held at March 31, 2016.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring | The following table represents information for assets measured at fair value on a nonrecurring basis. The estimated fair values were classified as Level 3 in the valuation hierarchy.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Option | The following table presents information regarding changes in fair values recorded in earnings for commercial mortgage and other loans, other long-term investments and notes issued by consolidated VIEs, where the fair value option has been elected.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value.
__________
|
Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty and NPR. This netting impact results in total derivative assets of $2,209 million and $2,728 million as of March 31, 2016 and December 31, 2015, respectively, and total derivative liabilities of $443 million and $40 million as of March 31, 2016 and December 31, 2015, respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table provides the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.
__________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:
|
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Lending Transactions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Indemnification of Securities Lending Transactions
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Values | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Guarantees of Asset Values
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Enhancements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Guarantees of Credit Enhancements
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Serviced Mortgage Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Indemnification of Serviced Mortgage Loans
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee Type, Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Other Guarantees
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage and other loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Commercial Mortgage Loan Commitments
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Excluding Commercial Mortgage Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Gurantees And Contingent Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Guarantees | Commitments to Purchase Investments (excluding Commercial Mortgage Loans)
|
Business and Basis of Presentation (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
division
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of divisions | 4 |
Significant Accounting Policies and Pronouncements (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Jan. 01, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
|||||
---|---|---|---|---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Decrease in Other assets | [1],[2] | $ (14,822) | $ (14,225) | |||||||
Decrease in Long-term debt | [1] | (19,608) | (19,594) | |||||||
Decrease in Total assets | (772,995) | (757,255) | ||||||||
Decrease in Total investments | (432,420) | (417,192) | ||||||||
Decrease in Total liabilities | (723,730) | (715,332) | ||||||||
Decrease in Notes issued by consolidated variable interest entities | [2] | (2,946) | (8,597) | |||||||
Decrease in Noncontrolling interests | (23) | (33) | ||||||||
Increase to Total Prudential Financial, Inc. equity | $ 49,265 | 41,923 | $ 45,574 | $ 42,349 | ||||||
Accounting Standards Update 2015-03 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Decrease in Other assets | 133 | |||||||||
Decrease in Long-term debt | $ 133 | |||||||||
Accounting Standards Update 2015-02 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Decrease in Total assets | $ 5,500 | |||||||||
Decrease in Total investments | 5,100 | |||||||||
Decrease in Total liabilities | 5,500 | |||||||||
Decrease in Notes issued by consolidated variable interest entities | 5,100 | |||||||||
Decrease in Noncontrolling interests | 30 | |||||||||
Increase to Total Prudential Financial, Inc. equity | 7 | |||||||||
Accounting Standards Update 2014-13 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Decrease in Total liabilities | 4 | |||||||||
Increase to Total Prudential Financial, Inc. equity | $ 4 | |||||||||
|
Acquisitions (Narrative) (Details) - 1 months ended Mar. 31, 2016 - AFP Habitat $ in Millions |
USD ($) |
CLP / shares |
---|---|---|
Business Acquisition [Line Items] | ||
Percentage of shares acquired | 40.00% | |
Acquisition Price per Share (Chilean pesos per share) | CLP / shares | CLP 899.90 | |
Cash paid for business acquisition | $ | $ 532 |
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | $ 278,000 | $ 265,416 | |||
Fair Value | [1] | 314,529 | 290,323 | ||
OTTI in AOCI | (481) | (459) | |||
Amortized Cost | 7,026 | 6,847 | |||
Fair Value | 9,400 | 9,274 | |||
Amortized Cost | [1] | 2,411 | 2,308 | ||
Fair Value | 2,841 | 2,624 | |||
Net unrealized gains on impaired available for sale securities relating to changes in value of securities subsequent to the impairment measurement date | 680 | 693 | |||
Net unrealized gains on impaired held to maturity securities (less than) | 1 | 1 | |||
Prudential Netting Agreement | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 3,990 | 3,850 | |||
Fair Value | 3,990 | 4,081 | |||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | 0 | 0 | |||
Obligations of U.S. states and their political subdivisions | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | 0 | 0 | |||
Foreign government bonds | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | 0 | 1 | |||
U.S. corporate public securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | (12) | (3) | |||
U.S. corporate private securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | (17) | 0 | |||
Foreign corporate public securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | (4) | 0 | |||
Foreign corporate private securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | 0 | 0 | |||
Asset-backed securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | (444) | (452) | |||
Commercial mortgage-backed securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | (1) | (1) | |||
Residential mortgage-backed securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
OTTI in AOCI | (3) | (4) | |||
Fixed maturities, available-for-sale | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 278,000 | 265,416 | |||
Gross Unrealized Gains | 39,278 | 29,240 | |||
Gross Unrealized Losses | 2,749 | 4,333 | |||
Fair Value | 314,529 | 290,323 | |||
Amortized Cost | 2,411 | 2,308 | |||
Gross Unrealized Gains | 432 | 316 | |||
Gross Unrealized Losses | 2 | 0 | |||
Fair Value | 2,841 | 2,624 | |||
Fixed maturities, available-for-sale | Prudential Netting Agreement | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 1,050 | 1,050 | |||
Fair Value | 1,050 | 1,039 | |||
Fixed maturities, available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 17,364 | 14,992 | |||
Gross Unrealized Gains | 4,681 | 3,544 | |||
Gross Unrealized Losses | 1 | 19 | |||
Fair Value | 22,044 | 18,517 | |||
Fixed maturities, available-for-sale | Obligations of U.S. states and their political subdivisions | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 8,262 | 8,089 | |||
Gross Unrealized Gains | 1,022 | 747 | |||
Gross Unrealized Losses | 8 | 41 | |||
Fair Value | 9,276 | 8,795 | |||
Fixed maturities, available-for-sale | Foreign government bonds | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 77,878 | 71,849 | |||
Gross Unrealized Gains | 18,662 | 12,011 | |||
Gross Unrealized Losses | 64 | 147 | |||
Fair Value | 96,476 | 83,713 | |||
Amortized Cost | 872 | 816 | |||
Gross Unrealized Gains | 297 | 196 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 1,169 | 1,012 | |||
Fixed maturities, available-for-sale | U.S. corporate public securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 74,007 | 70,979 | |||
Gross Unrealized Gains | 7,661 | 6,344 | |||
Gross Unrealized Losses | 1,063 | 1,955 | |||
Fair Value | 80,605 | 75,368 | |||
Fixed maturities, available-for-sale | U.S. corporate private securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 28,604 | 28,525 | |||
Gross Unrealized Gains | 2,318 | 2,278 | |||
Gross Unrealized Losses | 310 | 359 | |||
Fair Value | 30,612 | 30,444 | |||
Fixed maturities, available-for-sale | Foreign corporate public securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 26,566 | 26,354 | |||
Gross Unrealized Gains | 3,162 | 2,821 | |||
Gross Unrealized Losses | 379 | 621 | |||
Fair Value | 29,349 | 28,554 | |||
Amortized Cost | 663 | 625 | |||
Gross Unrealized Gains | 67 | 62 | |||
Gross Unrealized Losses | 2 | 0 | |||
Fair Value | 728 | 687 | |||
Fixed maturities, available-for-sale | Foreign corporate private securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 19,570 | 19,393 | |||
Gross Unrealized Gains | 797 | 739 | |||
Gross Unrealized Losses | 719 | 994 | |||
Fair Value | 19,648 | 19,138 | |||
Amortized Cost | 84 | 78 | |||
Gross Unrealized Gains | 4 | 4 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 88 | 82 | |||
Fixed maturities, available-for-sale | Asset-backed securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 10,577 | 10,121 | |||
Gross Unrealized Gains | 164 | 226 | |||
Gross Unrealized Losses | 196 | 121 | |||
Fair Value | 10,545 | 10,226 | |||
Fixed maturities, available-for-sale | Commercial mortgage-backed securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 10,550 | 10,337 | |||
Gross Unrealized Gains | 461 | 195 | |||
Gross Unrealized Losses | 7 | 70 | |||
Fair Value | 11,004 | 10,462 | |||
Amortized Cost | 22 | 33 | |||
Gross Unrealized Gains | 0 | 1 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 22 | 34 | |||
Fixed maturities, available-for-sale | Residential mortgage-backed securities | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Amortized Cost | 4,622 | 4,777 | |||
Gross Unrealized Gains | 350 | 335 | |||
Gross Unrealized Losses | 2 | 6 | |||
Fair Value | 4,970 | 5,106 | |||
Amortized Cost | 770 | 756 | |||
Gross Unrealized Gains | 64 | 53 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 834 | 809 | |||
Equity securities, available-for-sale | |||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||
Gross Unrealized Gains | 2,490 | 2,570 | |||
Gross Unrealized Losses | 116 | 143 | |||
Amortized Cost | 7,026 | 6,847 | |||
Fair Value | $ 9,400 | $ 9,274 | |||
|
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Available for Sale Amortized Cost | |||||
Due in one year or less | $ 14,423 | ||||
Due after one year through five years | 49,178 | ||||
Due after five years through ten years | 56,420 | ||||
Due after ten years | 132,230 | ||||
Total | 278,000 | $ 265,416 | |||
Available for Sale Securities Fair Value | |||||
Due in one year or less | 15,147 | ||||
Due after one year through five years | 53,605 | ||||
Due after five years through ten years | 62,024 | ||||
Due after ten years | 157,234 | ||||
Fair Value | [1] | 314,529 | 290,323 | ||
Held to Maturity Securities Amortized Cost | |||||
Due in one year or less | 7 | ||||
Due after one year through five years | 71 | ||||
Due after five years through ten years | 673 | ||||
Due after ten years | 868 | ||||
Fair Value | [1] | 2,411 | 2,308 | ||
Held to Maturity Securities Fair Value | |||||
Due in one year or less | 7 | ||||
Due after one year through five years | 75 | ||||
Due after five years through ten years | 738 | ||||
Due after ten years | 1,165 | ||||
Total | 2,841 | 2,624 | |||
Fixed maturities, available-for-sale | |||||
Available for Sale Amortized Cost | |||||
Total | 278,000 | 265,416 | |||
Available for Sale Securities Fair Value | |||||
Fair Value | 314,529 | 290,323 | |||
Held to Maturity Securities Amortized Cost | |||||
Fair Value | 2,411 | 2,308 | |||
Held to Maturity Securities Fair Value | |||||
Total | 2,841 | 2,624 | |||
Prudential Netting Agreement | |||||
Held to Maturity Securities Amortized Cost | |||||
Fair Value | 3,990 | 3,850 | |||
Held to Maturity Securities Fair Value | |||||
Total | 3,990 | 4,081 | |||
Prudential Netting Agreement | Fixed maturities, available-for-sale | |||||
Available for Sale Amortized Cost | |||||
Total | 1,050 | 1,050 | |||
Available for Sale Securities Fair Value | |||||
Fair Value | 1,050 | 1,039 | |||
Commercial mortgage-backed securities | |||||
Available for Sale Amortized Cost | |||||
Debt Maturities, without single maturity date | 10,550 | ||||
Available for Sale Securities Fair Value | |||||
Debt Maturities, without Single Maturity Date | 11,004 | ||||
Held to Maturity Securities Amortized Cost | |||||
Debt Maturities, without Single Maturity Date | 22 | ||||
Held to Maturity Securities Fair Value | |||||
Debt Maturities, without Single Maturity Date | 22 | ||||
Residential mortgage-backed securities | |||||
Available for Sale Amortized Cost | |||||
Debt Maturities, without single maturity date | 4,622 | ||||
Available for Sale Securities Fair Value | |||||
Debt Maturities, without Single Maturity Date | 4,970 | ||||
Held to Maturity Securities Amortized Cost | |||||
Debt Maturities, without Single Maturity Date | 770 | ||||
Held to Maturity Securities Fair Value | |||||
Debt Maturities, without Single Maturity Date | 834 | ||||
Asset-backed securities | |||||
Available for Sale Amortized Cost | |||||
Debt Maturities, without single maturity date | 10,577 | ||||
Available for Sale Securities Fair Value | |||||
Debt Maturities, without Single Maturity Date | 10,545 | ||||
Held to Maturity Securities Amortized Cost | |||||
Debt Maturities, without Single Maturity Date | 0 | ||||
Held to Maturity Securities Fair Value | |||||
Debt Maturities, without Single Maturity Date | 0 | ||||
Asset-backed securities | Fixed maturities, available-for-sale | |||||
Available for Sale Amortized Cost | |||||
Total | 10,577 | 10,121 | |||
Available for Sale Securities Fair Value | |||||
Fair Value | $ 10,545 | $ 10,226 | |||
|
Investments (Fixed Maturities Proceeds) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Fixed maturity and equity security impairments | ||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | $ (126) | $ (8) |
Writedowns for impairments on equity securities | (11) | (6) |
Fixed maturities, available-for-sale | ||
Fixed maturities, available-for-sale | ||
Proceeds from sales | 5,122 | 7,418 |
Proceeds from maturities/repayments | 4,037 | 5,095 |
Gross investment gains from sales, prepayments and maturities | 295 | 532 |
Gross investment losses from sales and maturities | (242) | (56) |
Fixed maturities, held-to-maturity | ||
Fixed maturities, held-to-maturity | ||
Gross investment gains from prepayments | 0 | 0 |
Proceeds from maturities/repayments | 50 | 60 |
Equity securities, available-for-sale | ||
Fixed maturities, available-for-sale | ||
Gross investment gains from sales, prepayments and maturities | 110 | 153 |
Gross investment losses from sales and maturities | (71) | (26) |
Equity securities, available-for-sale | ||
Proceeds from sales | $ 941 | $ 989 |
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Credit losses recognized in earnings on fixed maturity securities | ||
Balance, beginning of period | $ 532 | $ 781 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (10) | (13) |
Credit loss impairments previously recognized on securities impaired to fair value during the period | (2) | (1) |
Credit loss impairments recognized in the current period on securities not previously impaired | 20 | 2 |
Additional credit loss impairments recognized in the current period on securities previously impaired | 0 | 0 |
Increases due to the passage of time on previously recorded credit losses | 5 | 7 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (2) | (3) |
Balance, end of period | $ 543 | $ 773 |
Investments (Trading Account Assets Supporting Insurance Liabilities) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | $ 20,850 | $ 20,164 | ||
Fair Value | [1] | 21,447 | 20,522 | |
Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 18,869 | 18,369 | ||
Fair Value | 19,350 | 18,503 | ||
Equity securities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 1,093 | 1,030 | ||
Fair Value | 1,209 | 1,254 | ||
Short-term investments and cash equivalents | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 888 | 765 | ||
Fair Value | 888 | 765 | ||
Corporate securities | Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 13,142 | 12,797 | ||
Fair Value | 13,450 | 12,851 | ||
Commercial mortgage-backed securities | Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 1,865 | 1,860 | ||
Fair Value | 1,922 | 1,862 | ||
Residential mortgage-backed securities | Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 1,356 | 1,411 | ||
Fair Value | 1,393 | 1,428 | ||
Asset-backed securities | Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 1,378 | 1,295 | ||
Fair Value | 1,377 | 1,299 | ||
Foreign government bonds | Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 738 | 680 | ||
Fair Value | 773 | 694 | ||
U.S. government authorities and agencies and obligations of U.S. states | Fixed Maturities | ||||
Major Types Of Investment Securities [Line Items] | ||||
Amortized Cost | 390 | 326 | ||
Fair Value | $ 435 | $ 369 | ||
|
Investments (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Investments [Abstract] | |||
Net change in unrealized gains (losses) from trading account assets supporting insurance liabilities | $ 239,000,000 | $ 10,000,000 | |
Net change in unrealized gains (losses) from other trading account assets | 24,000,000 | $ (52,000,000) | |
Schedule Of Marketable Securities [Line Items] | |||
Net carrying value of commercial loans held for sale | 286,000,000 | $ 274,000,000 | |
Acquired | 0 | ||
Sold | 0 | ||
Troubled Debt Restructuring Commitment To Borrowers | 0 | 0 | |
Troubled Debt Restructuring, Private Debt Commitments | 0 | 22,000,000 | |
Gross unrealized losses related to high or highest quality securities | 2,039,000,000 | 3,750,000,000 | |
Gross unrealized losses related to other than high or highest quality securities | 712,000,000 | 583,000,000 | |
Twelve months or more Unrealized Losses | 1,666,000,000 | 1,802,000,000 | |
Gross unrealized losses representing declines in value of greater than 20% | 26,000,000 | 19,000,000 | |
Gross unrealized losses in a continuous loss position for less than six months | $ 25,000,000 | $ 19,000,000 | |
California | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 27.00% | ||
New York | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 9.00% | ||
Texas | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 9.00% | ||
Europe | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 4.00% | ||
Asia | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 1.00% |
Investments (Other Trading Account Assets) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule Of Marketable Securities [Line Items] | ||
Fair Value | $ 8,052 | $ 14,458 |
Investments excluding derivative instruments | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 6,248 | 12,176 |
Fair Value | 5,999 | 11,903 |
Derivative instruments | ||
Schedule Of Marketable Securities [Line Items] | ||
Fair Value | 2,053 | 2,555 |
Other | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 5 | 12 |
Fair Value | 5 | 15 |
Fixed Maturities | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 5,250 | 11,132 |
Fair Value | 4,923 | 10,764 |
Equity securities | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 967 | 1,006 |
Fair Value | 1,045 | 1,098 |
Short-term investments and cash equivalents | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 26 | 26 |
Fair Value | $ 26 | $ 26 |
Investments (Concentrations of Financial Instruments) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Investments in Japanese government and government agency securities: | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | $ 60,608 | $ 55,172 |
Fair Value | 74,847 | 63,434 |
Investments in Japanese government and government agency securities: | Fixed maturities, available-for-sale | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 59,184 | 53,851 |
Fair Value | 73,099 | 61,911 |
Investments in Japanese government and government agency securities: | Fixed maturities, held-to-maturity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 850 | 796 |
Fair Value | 1,141 | 988 |
Investments in Japanese government and government agency securities: | Trading account assets supporting insurance liabilities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 541 | 492 |
Fair Value | 573 | 502 |
Investments in Japanese government and government agency securities: | Other trading account assets | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 33 | 33 |
Fair Value | 34 | 33 |
Investments in Japanese government and government agency securities: | Short-term investments | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | 0 | 0 |
Investments in Japanese government and government agency securities: | Cash equivalents | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | 0 | 0 |
Investments in South Korean government and government agency securities: | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 7,541 | 7,235 |
Fair Value | 10,012 | 9,277 |
Investments in South Korean government and government agency securities: | Fixed maturities, available-for-sale | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 7,490 | 7,191 |
Fair Value | 9,960 | 9,233 |
Investments in South Korean government and government agency securities: | Fixed maturities, held-to-maturity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | 0 | 0 |
Investments in South Korean government and government agency securities: | Trading account assets supporting insurance liabilities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 44 | 44 |
Fair Value | 45 | 44 |
Investments in South Korean government and government agency securities: | Other trading account assets | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 7 | 0 |
Fair Value | 7 | 0 |
Investments in South Korean government and government agency securities: | Short-term investments | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | 0 | 0 |
Investments in South Korean government and government agency securities: | Cash equivalents | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 49,255 | $ 49,046 | ||
Valuation allowance | (89) | (99) | ||
Total net commercial mortgage and agricultural property loans by property type | 49,166 | 48,947 | ||
Total other loans | 1,641 | 1,625 | ||
Valuation allowance | (9) | (13) | ||
Total net other loans | 1,632 | 1,612 | ||
Total commercial mortgage and other loans | [1] | $ 50,798 | $ 50,559 | |
% of Total | 100.00% | 100.00% | ||
Commercial Mortgage Loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 46,413 | $ 46,187 | ||
% of Total | 94.20% | 94.20% | ||
Uncollateralized loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total other loans | $ 1,022 | $ 1,012 | ||
Residential property loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total other loans | 307 | 301 | ||
Other collateralized loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total other loans | 312 | 312 | ||
Office | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 11,517 | $ 11,226 | ||
% of Total | 23.40% | 22.90% | ||
Retail | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 8,493 | $ 8,917 | ||
% of Total | 17.20% | 18.20% | ||
Apartments/Multi-Family | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 12,493 | $ 12,034 | ||
% of Total | 25.40% | 24.50% | ||
Industrial | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 7,703 | $ 7,775 | ||
% of Total | 15.60% | 15.90% | ||
Hospitality | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 2,396 | $ 2,513 | ||
% of Total | 4.90% | 5.10% | ||
Other | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 3,811 | $ 3,722 | ||
% of Total | 7.70% | 7.60% | ||
Agricultural property loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total commercial mortgage and agricultural property loans by property type | $ 2,842 | $ 2,859 | ||
% of Total | 5.80% | 5.80% | ||
|
Investments (Allowance for Losses) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | $ 112 | $ 119 |
Addition to (release of) allowance for losses | (15) | (7) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 1 | 0 |
Total ending balance | 98 | 112 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 97 | 104 |
Addition to (release of) allowance for losses | (10) | (7) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 87 | 97 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 2 | 1 |
Addition to (release of) allowance for losses | 0 | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 2 | 2 |
Residential Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 3 | 5 |
Addition to (release of) allowance for losses | 0 | (2) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 3 | 3 |
Other Collateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 0 | 0 |
Addition to (release of) allowance for losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 0 | 0 |
Uncollateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 10 | 9 |
Addition to (release of) allowance for losses | (5) | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 1 | 0 |
Total ending balance | $ 6 | $ 10 |
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Allowance for Credit Losses: | ||
Individually evaluated for impairment | $ 1 | $ 1 |
Collectively evaluated for impairment | 97 | 111 |
Total ending balance | 98 | 112 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 128 | 121 |
Gross of reserves: collectively evaluated for impairment | 50,768 | 50,550 |
Total ending balance, gross of reserves | 50,896 | 50,671 |
Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Commercial Mortgage Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 1 | 1 |
Collectively evaluated for impairment | 86 | 96 |
Total ending balance | 87 | 97 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 100 | 111 |
Gross of reserves: collectively evaluated for impairment | 46,313 | 46,076 |
Total ending balance, gross of reserves | 46,413 | 46,187 |
Commercial Mortgage Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2 | 2 |
Total ending balance | 2 | 2 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 26 | 8 |
Gross of reserves: collectively evaluated for impairment | 2,816 | 2,851 |
Total ending balance, gross of reserves | 2,842 | 2,859 |
Agricultural Property Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Residential Property Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3 | 3 |
Total ending balance | 3 | 3 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 0 |
Gross of reserves: collectively evaluated for impairment | 307 | 301 |
Total ending balance, gross of reserves | 307 | 301 |
Residential Property Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Other Collateralized Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 0 |
Gross of reserves: collectively evaluated for impairment | 312 | 312 |
Total ending balance, gross of reserves | 312 | 312 |
Other Collateralized Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Uncollateralized Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 6 | 10 |
Total ending balance | 6 | 10 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 2 | 2 |
Gross of reserves: collectively evaluated for impairment | 1,020 | 1,010 |
Total ending balance, gross of reserves | 1,022 | 1,012 |
Uncollateralized Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | $ 0 | $ 0 |
Investments (Impaired Loans) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | $ 4 | $ 1 |
Unpaid Principal Balance | 6 | 2 |
Related Allowance | 1 | 1 |
Average Recorded Investment Before Allowance | 6 | 54 |
Interest Income Recognized | 0 | 3 |
Commercial mortgage loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 4 | 1 |
Unpaid Principal Balance | 4 | 1 |
Related Allowance | 1 | 1 |
Average Recorded Investment Before Allowance | 5 | 52 |
Interest Income Recognized | 0 | 3 |
Agricultural property loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 1 | 2 |
Interest Income Recognized | 0 | 0 |
Residential property loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Other collateralized loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Uncollateralized loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 2 | 1 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded: | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 2 | 1 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 1 | 2 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded: | Commercial mortgage loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded: | Agricultural property loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 1 | 2 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded: | Residential property loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded: | Other collateralized loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded: | Uncollateralized loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 2 | 1 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded: | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 4 | 1 |
Unpaid Principal Balance | 4 | 1 |
Related Allowance | 1 | 1 |
Average Recorded Investment Before Allowance | 5 | 52 |
Interest Income Recognized | 0 | 3 |
With an allowance recorded: | Commercial mortgage loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 4 | 1 |
Unpaid Principal Balance | 4 | 1 |
Related Allowance | 1 | 1 |
Average Recorded Investment Before Allowance | 5 | 52 |
Interest Income Recognized | 0 | 3 |
With an allowance recorded: | Agricultural property loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded: | Residential property loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded: | Other collateralized loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded: | Uncollateralized loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment Before Allowance | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 50,896 | $ 50,671 |
Greater than 1.2X | 0%-59.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 25,875 | 25,978 |
Greater than 1.2X | 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,540 | 2,587 |
Greater than 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 28,415 | 28,565 |
Greater than 1.2X | 60%-69.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 12,355 | 12,191 |
Greater than 1.2X | 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 183 | 185 |
Greater than 1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 12,538 | 12,376 |
Greater than 1.2X | 70%-79.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,007 | 5,668 |
Greater than 1.2X | 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Greater than 1.2X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,007 | 5,668 |
Greater than 1.2X | Greater than 80% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 128 | 119 |
Greater than 1.2X | Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Greater than 1.2X | Greater than 80% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 128 | 119 |
Greater than 1.2X | Total | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 44,365 | 43,956 |
Greater than 1.2X | Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,723 | 2,772 |
Greater than 1.2X | Total | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 47,088 | 46,728 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 458 | 515 |
1.0X to 1.2X | 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 116 | 84 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 574 | 599 |
1.0X to 1.2X | 60%-69.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 559 | 395 |
1.0X to 1.2X | 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 559 | 395 |
1.0X to 1.2X | 70%-79.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 289 | 500 |
1.0X to 1.2X | 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 289 | 500 |
1.0X to 1.2X | Greater than 80% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 155 | 151 |
1.0X to 1.2X | Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | Greater than 80% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 155 | 151 |
1.0X to 1.2X | Total | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,461 | 1,561 |
1.0X to 1.2X | Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 116 | 84 |
1.0X to 1.2X | Total | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,577 | 1,645 |
Less than 1.0X | 0%-59.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 212 | 207 |
Less than 1.0X | 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 3 | 3 |
Less than 1.0X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 215 | 210 |
Less than 1.0X | 60%-69.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 290 | 234 |
Less than 1.0X | 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 290 | 234 |
Less than 1.0X | 70%-79.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 59 | 97 |
Less than 1.0X | 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 59 | 97 |
Less than 1.0X | Greater than 80% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 26 | 132 |
Less than 1.0X | Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | Greater than 80% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 26 | 132 |
Less than 1.0X | Total | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 587 | 670 |
Less than 1.0X | Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 3 | 3 |
Less than 1.0X | Total | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 590 | 673 |
Total | 0%-59.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 26,545 | 26,700 |
Total | 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,659 | 2,674 |
Total | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 29,204 | 29,374 |
Total | 60%-69.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 13,204 | 12,820 |
Total | 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 183 | 185 |
Total | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 13,387 | 13,005 |
Total | 70%-79.99% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,355 | 6,265 |
Total | 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Total | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,355 | 6,265 |
Total | Greater than 80% | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 309 | 402 |
Total | Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Total | Greater than 80% | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 309 | 402 |
Total | Total | Commercial mortgage loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 46,413 | 46,187 |
Total | Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,842 | 2,859 |
Total | Total | Commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 49,255 | $ 49,046 |
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Servicing Liabilities at Fair Value [Line Items] | ||
Current | $ 50,875 | $ 50,655 |
Total Past Due | 21 | 16 |
Total Commercial Mortgage and Other Loans | 50,896 | 50,671 |
Non Accrual Status | 57 | 60 |
30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 11 | 9 |
60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 1 | 0 |
Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Greater Than 90 Days - Accruing | 0 | 0 |
Greater Than 90 Days - Not Accruing | 9 | 7 |
Commercial mortgage loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 46,409 | 46,187 |
Total Past Due | 4 | 0 |
Total Commercial Mortgage and Other Loans | 46,413 | 46,187 |
Non Accrual Status | 48 | 53 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 4 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial mortgage loans | Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Greater Than 90 Days - Accruing | 0 | 0 |
Greater Than 90 Days - Not Accruing | 0 | 0 |
Agricultural property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 2,839 | 2,856 |
Total Past Due | 3 | 3 |
Total Commercial Mortgage and Other Loans | 2,842 | 2,859 |
Non Accrual Status | 3 | 1 |
Agricultural property loans | 30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 2 |
Agricultural property loans | 60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Greater Than 90 Days - Accruing | 0 | 0 |
Greater Than 90 Days - Not Accruing | 3 | 1 |
Residential property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 293 | 288 |
Total Past Due | 14 | 13 |
Total Commercial Mortgage and Other Loans | 307 | 301 |
Non Accrual Status | 6 | 6 |
Residential property loans | 30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 7 | 7 |
Residential property loans | 60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 1 | 0 |
Residential property loans | Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Greater Than 90 Days - Accruing | 0 | 0 |
Greater Than 90 Days - Not Accruing | 6 | 6 |
Other collateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 312 | 312 |
Total Past Due | 0 | 0 |
Total Commercial Mortgage and Other Loans | 312 | 312 |
Non Accrual Status | 0 | 0 |
Other collateralized loans | 30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 0 |
Other collateralized loans | 60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 0 |
Other collateralized loans | Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Greater Than 90 Days - Accruing | 0 | 0 |
Greater Than 90 Days - Not Accruing | 0 | 0 |
Uncollateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 1,022 | 1,012 |
Total Past Due | 0 | 0 |
Total Commercial Mortgage and Other Loans | 1,022 | 1,012 |
Non Accrual Status | 0 | 0 |
Uncollateralized loans | 30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | 60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Greater Than 90 Days - Accruing | 0 | 0 |
Greater Than 90 Days - Not Accruing | $ 0 | $ 0 |
Investments (Net Investment Income) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 3,848 | $ 3,969 |
Less: investment expenses | (178) | (200) |
Net investment income | 3,670 | 3,769 |
Fixed maturities, available-for-sale | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 2,623 | 2,582 |
Fixed maturities, held-to-maturity | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 51 | 48 |
Equity securities, available-for-sale | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 79 | 96 |
Trading account assets | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 254 | 287 |
Commercial mortgage and other loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 555 | 545 |
Policy loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 154 | 154 |
Short-term investments | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 33 | 13 |
Other long-term investments | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 99 | $ 244 |
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | $ 1,881 | $ 2,361 |
Fixed maturities | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | (73) | 468 |
Equity securities | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | 28 | 121 |
Commercial mortgage and other loans | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | 27 | 11 |
Investment real estate | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | 0 | 25 |
Joint ventures and limited partnerships | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | (41) | (5) |
Derivatives | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | 1,944 | 1,738 |
Other | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | $ (4) | $ 3 |
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule Of Marketable Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 39,783 | $ 28,474 |
Net unrealized losses on held to maturity securities transferred from available-for-sale | 0 | |
Derivatives designated as cash flow hedges | ||
Schedule Of Marketable Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 896 | 1,165 |
Fixed maturities | Available-for-sale | ||
Schedule Of Marketable Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 36,330 | 24,673 |
Fixed maturities | Fixed maturity securities on which an OTTI loss has been recognized | ||
Schedule Of Marketable Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 199 | 234 |
Equity securities, available-for-sale | Available-for-sale | ||
Schedule Of Marketable Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 2,374 | 2,427 |
Other investments | ||
Schedule Of Marketable Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ (16) | $ (25) |
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | $ 25,102 | $ 58,994 |
Less than 12 months Gross Unrealized Losses | 1,085 | 2,531 |
Twelve months or more Fair Value | 20,396 | 13,906 |
Twelve months or more Gross Unrealized Losses | 1,666 | 1,802 |
Total Fair Value | 45,498 | 72,900 |
Total Gross Unrealized Losses | 2,751 | 4,333 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 81 | 3,068 |
Less than 12 months Gross Unrealized Losses | 1 | 19 |
Twelve months or more Fair Value | 7 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 88 | 3,068 |
Total Gross Unrealized Losses | 1 | 19 |
Obligations of U.S. states and their political subdivisions | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 98 | 1,391 |
Less than 12 months Gross Unrealized Losses | 0 | 40 |
Twelve months or more Fair Value | 193 | 7 |
Twelve months or more Gross Unrealized Losses | 8 | 1 |
Total Fair Value | 291 | 1,398 |
Total Gross Unrealized Losses | 8 | 41 |
Foreign government bonds | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 527 | 1,925 |
Less than 12 months Gross Unrealized Losses | 12 | 82 |
Twelve months or more Fair Value | 463 | 411 |
Twelve months or more Gross Unrealized Losses | 52 | 65 |
Total Fair Value | 990 | 2,336 |
Total Gross Unrealized Losses | 64 | 147 |
U.S. corporate public securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 7,263 | 24,642 |
Less than 12 months Gross Unrealized Losses | 376 | 1,396 |
Twelve months or more Fair Value | 8,525 | 3,455 |
Twelve months or more Gross Unrealized Losses | 687 | 559 |
Total Fair Value | 15,788 | 28,097 |
Total Gross Unrealized Losses | 1,063 | 1,955 |
U.S. corporate private securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 4,880 | 6,996 |
Less than 12 months Gross Unrealized Losses | 227 | 266 |
Twelve months or more Fair Value | 998 | 802 |
Twelve months or more Gross Unrealized Losses | 83 | 93 |
Total Fair Value | 5,878 | 7,798 |
Total Gross Unrealized Losses | 310 | 359 |
Foreign Corporate Public Securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 2,545 | 5,985 |
Less than 12 months Gross Unrealized Losses | 125 | 288 |
Twelve months or more Fair Value | 2,077 | 1,584 |
Twelve months or more Gross Unrealized Losses | 256 | 333 |
Total Fair Value | 4,622 | 7,569 |
Total Gross Unrealized Losses | 381 | 621 |
Foreign Corporate Private Securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 4,358 | 6,199 |
Less than 12 months Gross Unrealized Losses | 251 | 340 |
Twelve months or more Fair Value | 4,411 | 3,917 |
Twelve months or more Gross Unrealized Losses | 468 | 654 |
Total Fair Value | 8,769 | 10,116 |
Total Gross Unrealized Losses | 719 | 994 |
Asset-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 4,587 | 4,342 |
Less than 12 months Gross Unrealized Losses | 90 | 33 |
Twelve months or more Fair Value | 3,082 | 3,138 |
Twelve months or more Gross Unrealized Losses | 106 | 88 |
Total Fair Value | 7,669 | 7,480 |
Total Gross Unrealized Losses | 196 | 121 |
Commercial mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 698 | 3,888 |
Less than 12 months Gross Unrealized Losses | 3 | 63 |
Twelve months or more Fair Value | 485 | 473 |
Twelve months or more Gross Unrealized Losses | 4 | 7 |
Total Fair Value | 1,183 | 4,361 |
Total Gross Unrealized Losses | 7 | 70 |
Residential mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 65 | 558 |
Less than 12 months Gross Unrealized Losses | 0 | 4 |
Twelve months or more Fair Value | 155 | 119 |
Twelve months or more Gross Unrealized Losses | 2 | 2 |
Total Fair Value | 220 | 677 |
Total Gross Unrealized Losses | 2 | 6 |
Equity securities, available-for-sale | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 1,462 | 1,862 |
Less than 12 months Gross Unrealized Losses | 115 | 142 |
Twelve months or more Fair Value | 6 | 11 |
Twelve months or more Gross Unrealized Losses | 1 | 1 |
Total Fair Value | 1,468 | 1,873 |
Total Gross Unrealized Losses | 116 | 143 |
Held-to-maturity | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Total Fair Value | 50 | 0 |
Total Gross Unrealized Losses | $ 2 | $ 0 |
Investments (Repurchase Agreements and Securities Lending Transactions) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | $ 8,357 | $ 7,882 |
Total securities lending transactions | 4,052 | 3,496 |
Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 1,806 | 2,171 |
Total securities lending transactions | 3,815 | 3,263 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 6,190 | 5,458 |
Total securities lending transactions | 237 | 233 |
30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 361 | 253 |
Total securities lending transactions | 0 | 0 |
Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 7,430 | 6,757 |
Total securities lending transactions | 32 | 94 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 1,705 | 1,991 |
Total securities lending transactions | 32 | 94 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 5,364 | 4,513 |
Total securities lending transactions | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 361 | 253 |
Total securities lending transactions | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Obligations of U.S. states and their political subdivisions | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 10 | 4 |
Obligations of U.S. states and their political subdivisions | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 10 | 4 |
Obligations of U.S. states and their political subdivisions | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Obligations of U.S. states and their political subdivisions | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Obligations of U.S. states and their political subdivisions | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign government bonds | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 199 | 0 |
Foreign government bonds | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 199 | 0 |
Foreign government bonds | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign government bonds | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign government bonds | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate public securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 12 | 11 |
Total securities lending transactions | 2,113 | 1,487 |
U.S. corporate public securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 12 | 11 |
Total securities lending transactions | 2,038 | 1,401 |
U.S. corporate public securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 75 | 86 |
U.S. corporate public securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate public securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Public Securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 705 | 629 |
Foreign Corporate Public Securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 634 | 579 |
Foreign Corporate Public Securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 71 | 50 |
Foreign Corporate Public Securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Public Securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Private Securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Private Securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Private Securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Private Securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign Corporate Private Securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Asset-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 241 |
Asset-backed securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 241 |
Asset-backed securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Asset-backed securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Asset-backed securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Commercial mortgage-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 8 |
Commercial mortgage-backed securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 8 |
Commercial mortgage-backed securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Commercial mortgage-backed securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Commercial mortgage-backed securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Residential mortgage-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 915 | 1,114 |
Total securities lending transactions | 91 | 97 |
Residential mortgage-backed securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 89 | 169 |
Total securities lending transactions | 0 | 0 |
Residential mortgage-backed securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 826 | 945 |
Total securities lending transactions | 91 | 97 |
Residential mortgage-backed securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Residential mortgage-backed securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Equity securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 902 | 936 |
Equity securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 902 | 936 |
Equity securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Equity securities | 30 to 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Equity securities | Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | $ 0 | $ 0 |
Variable Interest Entities (Total Assets of Consolidated VIEs) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Consolidated VIEs for Which the Company is the Investment Manager | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | $ 4,987 | $ 10,253 |
Total liabilities of consolidated VIEs | 3,064 | 9,271 |
Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities, available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 41 | 0 |
Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities, held-to-maturity | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 84 | 0 |
Consolidated VIEs for Which the Company is the Investment Manager | Trading account assets supporting insurance liabilities | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 0 | 0 |
Consolidated VIEs for Which the Company is the Investment Manager | Other trading account assets | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 3,619 | 9,536 |
Consolidated VIEs for Which the Company is the Investment Manager | Commercial mortgage and other loans | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 431 | 0 |
Consolidated VIEs for Which the Company is the Investment Manager | Other long-term investments | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 190 | 0 |
Consolidated VIEs for Which the Company is the Investment Manager | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 142 | 337 |
Consolidated VIEs for Which the Company is the Investment Manager | Accrued investment income | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 23 | 56 |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 457 | 324 |
Consolidated VIEs for Which the Company is the Investment Manager | Notes issued by consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total liabilities of consolidated VIEs | 2,946 | 8,597 |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Total liabilities of consolidated VIEs | 118 | 674 |
Other Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 1,565 | 1,411 |
Total liabilities of consolidated VIEs | 14 | 3 |
Other Consolidated VIEs | Fixed maturities, available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 279 | 179 |
Other Consolidated VIEs | Fixed maturities, held-to-maturity | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 813 | 760 |
Other Consolidated VIEs | Trading account assets supporting insurance liabilities | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 10 | 10 |
Other Consolidated VIEs | Other trading account assets | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 0 | 0 |
Other Consolidated VIEs | Commercial mortgage and other loans | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 300 | 300 |
Other Consolidated VIEs | Other long-term investments | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 139 | 155 |
Other Consolidated VIEs | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 1 | 1 |
Other Consolidated VIEs | Accrued investment income | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 3 | 3 |
Other Consolidated VIEs | Other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 20 | 3 |
Other Consolidated VIEs | Notes issued by consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total liabilities of consolidated VIEs | 0 | 0 |
Other Consolidated VIEs | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Total liabilities of consolidated VIEs | 14 | $ 3 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | $ 1,212 |
Variable Interest Entities (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Fair value of assets held within unconsolidated VIEs | $ 11,452,000,000 | $ 5,262,000,000 |
Fair value of liabilities held within unconsolidated VIEs | $ 0 | 0 |
Notes issued by consolidated VIEs | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Debt Instrument, Term (greater than) | 5 years | |
Other long-term investments | Net unrealized investment gains (losses)—all other | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | $ 7,626,000,000 | 7,532,000,000 |
Other long-term investments | Variable Interest Entity, Not Primary Beneficiary | Other trading account assets | Available-for-sale | Fixed Maturities | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | $ 400,000,000 | $ 218,000,000 |
Closed Block (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Closed Block [Line Items] | ||
Closed Block Liabilities, Policyholder Dividend Obligation | $ 5,252 | $ 4,509 |
Excess Of Actual Cumulative Earnings Over Expected Cumulative Earnings | ||
Closed Block [Line Items] | ||
Closed Block Liabilities, Policyholder Dividend Obligation | 1,442 | 1,694 |
Accumulated Net Unrealized Investment Gains That Have Arisen Subsequent To Establishment Of Closed Block | ||
Closed Block [Line Items] | ||
Closed Block Liabilities, Policyholder Dividend Obligation | $ 3,809 | $ 2,815 |
Closed Block (Closed Block Liabilities and Assets Designated to Closed Block; Maximum Future Earnings to be Recognized) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Closed Block liabilities | ||
Future policy benefits | $ 49,417 | $ 49,538 |
Policyholders’ dividends payable | 976 | 945 |
Policyholders’ dividend obligation | 5,252 | 4,509 |
Policyholders’ account balances | 5,233 | 5,250 |
Other Closed Block liabilities | 4,858 | 4,171 |
Total Closed Block liabilities | 65,736 | 64,413 |
Closed Block assets | ||
Fixed maturities, available-for-sale, at fair value | 39,197 | 37,584 |
Other trading account assets, at fair value | 295 | 288 |
Equity securities, available-for-sale, at fair value | 2,573 | 2,726 |
Commercial mortgage and other loans | 9,695 | 9,770 |
Policy loans | 4,763 | 4,790 |
Other long-term investments | 2,942 | 2,921 |
Short-term investments | 645 | 1,467 |
Total investments | 60,110 | 59,546 |
Cash and cash equivalents | 1,861 | 1,036 |
Accrued investment income | 525 | 506 |
Other Closed Block assets | 384 | 458 |
Total Closed Block assets | 62,880 | 61,546 |
Excess of reported Closed Block liabilities over Closed Block assets | 2,856 | 2,867 |
Portion of above representing accumulated other comprehensive income: | ||
Net unrealized investment gains (losses) | 3,794 | 2,800 |
Allocated to policyholder dividend obligation | (3,809) | (2,815) |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,841 | $ 2,852 |
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Movement in Closed Block Dividend Obligation [Roll Forward] | |
Balance, beginning | $ 4,509 |
Impact from earnings allocable to policyholder dividend obligation | (252) |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 995 |
Balance, ending | $ 5,252 |
Closed Block (Closed Block Revenues and Benefits and Expenses) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Revenues | ||
Premiums | $ 622 | $ 634 |
Net investment income | 618 | 709 |
Realized investment gains (losses), net | (98) | 373 |
Other income (loss) | (7) | 3 |
Total Closed Block revenues | 1,135 | 1,719 |
Benefits and Expenses | ||
Policyholders’ benefits | 807 | 821 |
Interest credited to policyholders’ account balances | 33 | 33 |
Dividends to policyholders | 247 | 764 |
General and administrative expenses | 103 | 108 |
Total Closed Block benefits and expenses | 1,190 | 1,726 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued operations | (55) | (7) |
Income tax expense (benefit) | (66) | (18) |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued operations | 11 | 11 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 |
Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued operations | $ 11 | $ 11 |
Equity (Common Stock Changes in Number of Shares Issued, Held in Treasury and Outstanding) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
shares
| |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 660,111,339 |
Balance, ending | 660,111,339 |
Common Stock Issued | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 660,100,000 |
Common Stock issued | 0 |
Common Stock acquired | 0 |
Stock-based compensation programs | 0 |
Balance, ending | 660,100,000 |
Common Stock Held In Treasury | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 213,000,000 |
Common Stock issued | 0 |
Common Stock acquired | 5,400,000 |
Stock-based compensation programs | (1,400,000) |
Balance, ending | 217,000,000 |
Common Stock Outstanding | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 447,100,000 |
Common Stock issued | 0 |
Common Stock acquired | (5,400,000) |
Stock-based compensation programs | 1,400,000 |
Balance, ending | 443,100,000 |
Equity (Narrative) (Details) - USD ($) shares in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 02, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 01, 2014 |
|
Class of Stock [Line Items] | ||||||
Cost of Treasury Stock Acquired | $ 357,000,000 | $ 252,000,000 | ||||
Class B Stock Held in Treasury | ||||||
Class of Stock [Line Items] | ||||||
Class B Stock held in treasury, at cost | 770,000,000 | $ 651,000,000 | ||||
Class B Stock Held in Treasury | Retained Earnings | ||||||
Class of Stock [Line Items] | ||||||
Stockholders' Equity, Period Increase (Decrease) | $ (484,000,000) | $ (119,000,000) | ||||
Class B Stock Held in Treasury | Additional Paid-in Capital | ||||||
Class of Stock [Line Items] | ||||||
Stockholders' Equity, Period Increase (Decrease) | $ (167,000,000) | |||||
Under December 2015 Board Of Directors Authorization [Member] | ||||||
Class of Stock [Line Items] | ||||||
Amount of Stock Repurchases Authorized by the Board of Directors | $ 1,500,000,000.0 | |||||
Under December 2015 Board Of Directors Authorization [Member] | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of Treasury Stock Shares Acquired | 5.4 | |||||
Cost of Treasury Stock Acquired | $ 375,000,000 | |||||
Under June 2015 Board Of Directors Authorization | ||||||
Class of Stock [Line Items] | ||||||
Amount of Stock Repurchases Authorized by the Board of Directors | $ 1,000,000,000.0 |
Equity (Balance of and Changes in Each Component of "AOCI Attributable to Prudential Financial, Inc.") (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning | $ 12,285 | |||
Income tax benefit (expense) | (3,399) | $ (811) | ||
Balance, ending | 19,066 | |||
Accumulated Net Unrealized Investment Gain (Loss), Cash Flow Hedges | 896 | 1,005 | $ 1,165 | $ 206 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning | (1,087) | (975) | ||
Change in OCI before reclassifications | 727 | (28) | ||
Amounts reclassified from AOCI | 6 | (1) | ||
Income tax benefit (expense) | (176) | 22 | ||
Balance, ending | (530) | (982) | ||
Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning | 15,773 | 19,251 | ||
Change in OCI before reclassifications | 9,389 | 3,194 | ||
Amounts reclassified from AOCI | 24 | (704) | ||
Income tax benefit (expense) | (3,211) | (815) | ||
Balance, ending | 21,975 | 20,926 | ||
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning | (2,401) | (2,226) | ||
Change in OCI before reclassifications | (19) | 3 | ||
Amounts reclassified from AOCI | 53 | 49 | ||
Income tax benefit (expense) | (12) | (18) | ||
Balance, ending | (2,379) | (2,192) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning | 12,285 | 16,050 | ||
Change in OCI before reclassifications | 10,097 | 3,169 | ||
Amounts reclassified from AOCI | 83 | (656) | ||
Income tax benefit (expense) | (3,399) | (811) | ||
Balance, ending | $ 19,066 | $ 17,752 |
Equity (Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Realized investment gains (losses), net | $ 1,881 | $ 2,361 |
Foreign Currency Translation Adjustment | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 6 | (1) |
Net Unrealized Investment Gains (Losses) | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 24 | (704) |
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 83 | (656) |
Amounts reclassified from AOCI | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (53) | (49) |
Amortization of defined benefit pension items: | ||
Prior service cost | 2 | 3 |
Actuarial gain (loss) | (55) | (52) |
Amounts reclassified from AOCI | Cash flow hedges—Interest Rate | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Realized investment gains (losses), net | (1) | (1) |
Amounts reclassified from AOCI | Cash flow hedges—Currency/Interest rate | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Realized investment gains (losses), net | 22 | 116 |
Amounts reclassified from AOCI | Available-for-sale | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Realized investment gains (losses), net | (45) | 589 |
Amounts reclassified from AOCI | Foreign Currency Translation Adjustment | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (6) | 1 |
Realized investment gains (losses), net | (6) | 1 |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (24) | 704 |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | $ (83) | $ 656 |
Equity (Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | $ 12,285 |
Balance, ending | 19,066 |
Fixed maturity securities on which an OTTI loss has been recognized | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | 234 |
Net investment gains (losses) on investments arising during the period | (25) |
Reclassification adjustment for (gains) losses included in net income | 1 |
Reclassification adjustment for OTTI losses excluded from net income | (11) |
Balance, ending | 199 |
Fixed maturity securities on which an OTTI loss has been recognized | DAC, DSI and VOBA | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | 6 |
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | 1 |
Balance, ending | 7 |
Fixed maturity securities on which an OTTI loss has been recognized | Future Policy Benefits and Policyholders’ Account Balances | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | 14 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 6 |
Balance, ending | 20 |
Fixed maturity securities on which an OTTI loss has been recognized | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | (31) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 16 |
Balance, ending | (15) |
Fixed maturity securities on which an OTTI loss has been recognized | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | (77) |
Net investment gains (losses) on investments arising during the period | 9 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 4 |
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (2) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (6) |
Balance, ending | (72) |
Fixed maturity securities on which an OTTI loss has been recognized | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | 146 |
Net investment gains (losses) on investments arising during the period | (16) |
Reclassification adjustment for (gains) losses included in net income | 1 |
Reclassification adjustment for OTTI losses excluded from net income | (7) |
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | 1 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 4 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 10 |
Balance, ending | $ 139 |
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | $ 12,285 |
Balance, ending | 19,066 |
Other Net Unrealized Investment Gains and Losses | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | 28,240 |
Net investment gains (losses) on investments arising during the period | 11,310 |
Reclassification adjustment for (gains) losses included in net income | 23 |
Reclassification adjustment for OTTI losses excluded from net income | 11 |
Balance, ending | 39,584 |
Other Net Unrealized Investment Gains and Losses | DAC, DSI and VOBA | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | (760) |
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | (709) |
Balance, ending | (1,469) |
Other Net Unrealized Investment Gains and Losses | Future Policy Benefits and Policyholders’ Account Balances | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | (1,082) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (192) |
Balance, ending | (1,274) |
Other Net Unrealized Investment Gains and Losses | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | (2,802) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (1,018) |
Balance, ending | (3,820) |
Other Net Unrealized Investment Gains and Losses | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | (7,969) |
Net investment gains (losses) on investments arising during the period | (3,852) |
Reclassification adjustment for (gains) losses included in net income | (8) |
Reclassification adjustment for OTTI losses excluded from net income | (4) |
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | 231 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 62 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 355 |
Balance, ending | (11,185) |
Other Net Unrealized Investment Gains and Losses | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance, beginning | 15,627 |
Net investment gains (losses) on investments arising during the period | 7,458 |
Reclassification adjustment for (gains) losses included in net income | 15 |
Reclassification adjustment for OTTI losses excluded from net income | 7 |
Impact of net unrealized investment (gains) losses on DAC, DSI and VOBA | (478) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (130) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (663) |
Balance, ending | $ 21,836 |
Earnings Per Share (Reconciliation of the Numerators and Denominators of the Basic and Diluted Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income | ||
Less: Income (loss) attributable to noncontrolling interests | $ (33) | $ (10) |
Basic earnings per share | ||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock (in dollars per share) | $ 2.97 | $ 4.44 |
Diluted earnings per share | ||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock (in dollars per share) | $ 2.93 | $ 4.37 |
Common Stock | ||
Income | ||
Income (loss) from continuing operations | $ 1,369 | $ 2,046 |
Less: Income (loss) attributable to noncontrolling interests | 33 | 10 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 15 | 19 |
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock | 1,321 | 2,017 |
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | 15 | 19 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | 14 | 19 |
Exchangeable Surplus Notes | 4 | 4 |
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock | $ 1,326 | $ 2,021 |
Weighted Average Shares | ||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock (in shares) | 445.3 | 454.3 |
Stock options (in shares) | 1.4 | 2.3 |
Deferred and long-term compensation programs (in shares) | 0.9 | 0.9 |
Exchangeable Surplus Notes (in shares) | 5.6 | 5.5 |
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock (in shares) | 453.2 | 463.0 |
Basic earnings per share | ||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock (in dollars per share) | $ 2.97 | $ 4.44 |
Diluted earnings per share | ||
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock (in dollars per share) | $ 2.93 | $ 4.37 |
Earnings Per Share (Narrative) (Details) $ / shares in Units, shares in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Sep. 30, 2009
USD ($)
$ / shares
|
Mar. 31, 2016
shares
|
Mar. 31, 2015
shares
|
|
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | shares | 5.1 | 4.5 | |
Exhangeable Surplus Notes | |||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Long Term Debt Gross Of Set Off Arrangements | $ 500,000,000 | ||
Interest Rate | 5.36% | ||
Debt Instrument Convertible Exchange Ratio per $1,000 (in shares) | 10.1235 | ||
Surplus notes principle amount | $ 1,000 | ||
Initial exchange price per share of Common Stock (in dollars per share) | $ / shares | $ 98.78 |
Earnings Per Share (Antidilutive Securities Excluded From the Computation of Diluted Earnings Per Share) (Details) - $ / shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 3.9 | 2.7 |
Employee And Non Employee Stock Option | Treasury Stock Method | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 3.9 | 2.7 |
Weighted average exercise price of options excluded from computation of diluted earnings per share (in dollars per share) | $ 83.25 | $ 87.33 |
Employee And Non Employee Stock Option | Loss From Continuing Operation Available To Holders Of Common Stock After Direct Equity Adjustment | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0.0 | 0.0 |
Employee And Non Employee Restricted Stock Shares Restricted Stock Units Performance Shares And Performance Units | Loss From Continuing Operation Available To Holders Of Common Stock After Direct Equity Adjustment | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0.0 | 0.0 |
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Short-term Debt [Line Items] | ||
Short-term debt | $ 969 | $ 1,216 |
Portion of commercial paper borrowings due overnight | 230 | 331 |
Daily average commercial paper outstanding | $ 883 | $ 1,127 |
Weighted average maturity of outstanding commercial paper, in days | 14 days | 10 days |
Weighted average interest rate on outstanding short-term debt | 0.41% | 0.16% |
Prudential Financial | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 572 | $ 831 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 469 | 464 |
Commercial paper | Prudential Financial | ||
Short-term Debt [Line Items] | ||
Short-term debt | 72 | 80 |
Commercial paper | Prudential Funding, LLC | ||
Short-term Debt [Line Items] | ||
Short-term debt | 397 | 384 |
Current portion of long-term debt | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 500 | $ 752 |
Short-Term and Long-Term Debt (Narrative) (Details) - USD ($) |
1 Months Ended | 3 Months Ended |
---|---|---|
Nov. 30, 2013 |
Mar. 31, 2016 |
|
Line of Credit and Other Credit Facilities | ||
Debt Instrument [Line Items] | ||
Minimum statutory consolidated net worth (at least) | $ 18,985,000,000 | |
Put Option | ||
Debt Instrument [Line Items] | ||
Derivative, Term of Contract | 10 years | |
Put Option Premium | 1.777% | |
Derivative, Time To Cure | 30 days | |
Minimum Equity Less AOCI For Automatic Exercise | $ 7,000,000,000.0 | |
Medium Term Note [Member] | ||
Debt Instrument [Line Items] | ||
Maturities of Senior Debt | 250,000,000 | |
Increase (decrease) in outstanding debt | (250,000,000) | |
Long-term Debt | 10,600,000,000 | |
Debt Instrument Authorized | 20,000,000,000.0 | |
Retail Medium Term Note | ||
Debt Instrument [Line Items] | ||
Debt Instrument Authorized | 5,000,000,000.0 | |
Long-term Debt, Gross | $ 463,000,000 | |
Federal Home Loan Bank of New York | ||
Debt Instrument [Line Items] | ||
Purchase requirement of FHLBNY activity based stock in percent of the outstanding borrowings | 4.50% | |
Debt Instrument, Term Upon Certain Events | 90 days | |
Maximum amount of qualifying assets, percentage collateral to the FHLBNY, prior year-end statutory net admitted assets exclusive of separate account assets | 5.00% | |
Maximum amount of pledged asset | $ 5,800,000,000 | |
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | 5,000,000,000 | |
Pledged qualifying assets with a fair value | 1,200,000,000 | |
Collateralized agreements | 1,000,000,000 | |
Assets not pledged fair value | 6,000,000,000 | |
Federal Home Loan Bank of Boston | ||
Debt Instrument [Line Items] | ||
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | $ 244,000,000 | |
Minimum purchase requirement of activity based stock in percent of the outstanding borrowings | 3.00% | |
Maximum purchase requirement of activity based stock in percent of the outstanding borrowings | 4.50% | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 0 | |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Commercial paper authorized capacity | 3,000,000,000 | |
Prudential Funding, LLC | ||
Debt Instrument [Line Items] | ||
Commercial paper authorized capacity | 7,000,000,000 | |
Trust | Private Placement | ||
Debt Instrument [Line Items] | ||
Issued amount | $ 1,500,000,000.0 | |
Interest rate percent | 4.419% | |
Captive Reinsurance Subsidiary | Fixed Rate Debt Surplus Notes | Guideline AXXX | ||
Debt Instrument [Line Items] | ||
Increase (decrease) in outstanding debt | 140,000,000 | |
Long-term Debt | 2,200,000,000 | |
Real Estate subsidiaries | ||
Debt Instrument [Line Items] | ||
Increase (decrease) in outstanding debt | 25,000,000 | |
Long-term Debt, Gross | $ 589,000,000 |
Short-Term and Long-Term Debt (Credit Facilities) (Details) - Prudential Financial and Prudential Funding |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
CreditFacility [Line Items] | |
Original Term | 5 years |
Capacity | $ 4,000,000,000 |
Amount Outstanding | $ 0 |
Employee Benefit Plans (Narrative) (Details) - Other Postretirement Benefits |
3 Months Ended |
---|---|
Mar. 31, 2016
year
| |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Deferred Compensation Arrangement with Individual, Requisite Age | 50 |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Deferred Compensation Arrangement with Individual, Requisite Age | 55 |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 20 years |
Employee Benefit Plans (Components of Net Periodic Benefit Cost Included in General and Administrative Expenses) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 62 | $ 61 |
Interest cost | 125 | 117 |
Expected return on plan assets | (189) | (194) |
Amortization of prior service cost | (1) | (2) |
Amortization of actuarial (gain) loss, net | 45 | 42 |
Settlements | 1 | 1 |
Special termination benefits | 0 | 2 |
Net periodic (benefit) cost | 43 | 27 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5 | 5 |
Interest cost | 23 | 21 |
Expected return on plan assets | (26) | (29) |
Amortization of prior service cost | (1) | (1) |
Amortization of actuarial (gain) loss, net | 10 | 10 |
Settlements | 0 | 0 |
Special termination benefits | 0 | 0 |
Net periodic (benefit) cost | $ 11 | $ 6 |
Segment Information (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
USD ($)
division
segment
|
Mar. 31, 2015
USD ($)
|
|
Segment Reporting [Abstract] | ||
Number of divisions | division | 4 | |
Number of reportable segments | segment | 7 | |
Segment Reporting Information [Line Items] | ||
Total deferred gain (loss) | $ 149 | |
Synthetic Gic Fees | 39 | $ 40 |
Realized investment gains (losses), net, and related adjustments | ||
Segment Reporting Information [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net, Terminated Or Offset Before Maturity | $ 12 | $ 21 |
Segment Information (Operating Income of Reportable Segments) (Reconciling Items) (Details) - Realized investment gains (losses), net, and related adjustments - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Segment Reporting Information [Line Items] | ||
Terminated hedges of foreign currency earnings | $ 36 | $ 81 |
Current period yield adjustments | 127 | 123 |
Principal source of earnings | 10 | 24 |
Other trading account assets | (22) | (58) |
Foreign currency exchange movements | (321) | 25 |
Other activities | $ 3 | $ 3 |
Segment Information (Operating Income of Reportable Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ 1,732 | $ 2,748 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 1,325 | 1,745 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 712 | 1,018 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Individual Annuities | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 328 | 529 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Retirement | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 219 | 284 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Asset Management | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 165 | 205 |
Operating Segments | Total U.S. Individual Life and Group Insurance division | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 146 | 146 |
Operating Segments | Total U.S. Individual Life and Group Insurance division | Individual Life | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 120 | 116 |
Operating Segments | Total U.S. Individual Life and Group Insurance division | Group Insurance | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 26 | 30 |
Operating Segments | Total International Insurance division | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 779 | 834 |
Operating Segments | Total International Insurance division | International Insurance | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 779 | 834 |
Operating Segments | Total Corporate and Other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | (312) | (253) |
Operating Segments | Total Corporate and Other | Corporate and Other operations | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | (312) | (253) |
Realized investment gains (losses), net, and related adjustments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 1,418 | 1,662 |
Charges related to realized investment gains (losses), net | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | (1,080) | (611) |
Investment gains (losses) on trading account assets supporting insurance liabilities, net | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 216 | 83 |
Change in experience-rated contractholder liabilities due to asset value changes | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | (130) | (197) |
Divested businesses: | Closed Block division | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | (73) | (22) |
Divested businesses: | Other divested businesses | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 31 | 75 |
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | $ 25 | $ 13 |
Segment Information (Certain Financial Information for the Reportable Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||
Revenue | $ 14,329 | $ 15,552 | |
Total Assets | 772,995 | $ 757,255 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 11,292 | 11,807 | |
Total Assets | 709,511 | 695,128 | |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,708 | 4,398 | |
Total Assets | 389,641 | 395,121 | |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Individual Annuities | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,109 | 1,187 | |
Total Assets | 172,188 | 169,447 | |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Retirement | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,893 | 2,478 | |
Total Assets | 168,798 | 171,183 | |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Asset Management | |||
Segment Reporting Information [Line Items] | |||
Revenue | 706 | 733 | |
Total Assets | 48,655 | 54,491 | |
Operating Segments | Total U.S. Individual Life and Group Insurance division | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,686 | 2,628 | |
Total Assets | 115,423 | 111,200 | |
Operating Segments | Total U.S. Individual Life and Group Insurance division | Individual Life | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,366 | 1,351 | |
Total Assets | 74,469 | 71,856 | |
Operating Segments | Total U.S. Individual Life and Group Insurance division | Group Insurance | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,320 | 1,277 | |
Total Assets | 40,954 | 39,344 | |
Operating Segments | Total International Insurance division | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,044 | 4,906 | |
Total Assets | 193,435 | 175,153 | |
Operating Segments | Total International Insurance division | International Insurance | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,044 | 4,906 | |
Total Assets | 193,435 | 175,153 | |
Operating Segments | Total Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | (146) | (125) | |
Total Assets | 11,012 | 13,654 | |
Operating Segments | Total Corporate and Other | Corporate and Other operations | |||
Segment Reporting Information [Line Items] | |||
Revenue | (146) | (125) | |
Total Assets | 11,012 | 13,654 | |
Realized investment gains (losses), net, and related adjustments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,418 | 1,662 | |
Charges related to realized investment gains (losses), net | |||
Segment Reporting Information [Line Items] | |||
Revenue | 88 | 54 | |
Investment gains (losses) on trading account assets supporting insurance liabilities, net | |||
Segment Reporting Information [Line Items] | |||
Revenue | 216 | 83 | |
Divested businesses: | Closed Block division | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,129 | 1,719 | |
Total Assets | 63,484 | $ 62,127 | |
Divested businesses: | Other divested businesses | |||
Segment Reporting Information [Line Items] | |||
Revenue | 194 | 224 | |
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||
Segment Reporting Information [Line Items] | |||
Revenue | (8) | 3 | |
Intersegment Eliminations | Total U.S. Retirement Solutions and Investment Management division | Asset Management | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 170 | $ 178 |
Income Taxes (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Deductions, Dividends | 35.00% |
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | [1] | $ 314,529 | $ 290,323 | ||||
Equity securities, available-for-sale | 9,400 | 9,274 | |||||
Commercial mortgage and other loans | [1] | 50,798 | 50,559 | ||||
Other long-term investments | [1] | 10,281 | 9,986 | ||||
Short-term investments | 3,697 | 8,105 | |||||
Other assets | [1],[2] | 14,822 | 14,225 | ||||
Separate account assets | 281,501 | 285,570 | |||||
TOTAL ASSETS | 772,995 | 757,255 | |||||
Future policy benefits | 234,728 | 224,384 | |||||
Total liabilities | 723,730 | 715,332 | |||||
Netting | 17,717 | 11,457 | |||||
Embedded Derivative, Fair Value Of Embedded Derivative Liability | 11,100 | 8,400 | |||||
Gross Asset Amount | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Embedded Derivative, Fair Value Of Embedded Derivative Asset | 700 | 700 | |||||
Gross Liability Amount | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Embedded Derivative, Fair Value Of Embedded Derivative Liability | 11,800 | 9,100 | |||||
U.S. corporate private securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets Under Set Off Arrangements | 1,050 | 1,039 | |||||
Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 314,529 | 290,323 | |||||
Trading accounts assets | 29,399 | 34,980 | |||||
Equity securities, available-for-sale | 9,400 | 9,274 | |||||
Commercial mortgage and other loans | 286 | 274 | |||||
Other long-term investments | 172 | 182 | |||||
Short-term investments | 3,103 | 7,487 | |||||
Cash equivalents | 18,409 | 14,208 | |||||
Other assets | 45 | 16 | |||||
Subtotal excluding separate account assets | 375,343 | 356,744 | |||||
Separate account assets | 255,573 | 259,909 | |||||
TOTAL ASSETS | 630,916 | 616,653 | |||||
Future policy benefits | 11,069 | 8,434 | |||||
Other liabilities | 437 | 33 | |||||
Notes issued by consolidated VIEs | 2,946 | 8,597 | |||||
Total liabilities | 14,452 | 17,064 | |||||
Assets Netting | (17,717) | (11,457) | |||||
Liabilities Netting | (7,577) | (5,276) | |||||
Netting | 10,140 | 6,181 | |||||
Fair Value, Measurements, Recurring | Other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets Netting | (17,705) | (11,447) | |||||
Fair Value, Measurements, Recurring | Other long-term investments | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets Netting | (12) | (10) | |||||
Fair Value, Measurements, Recurring | Other liabilities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Liabilities Netting | (7,577) | (5,276) | |||||
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 22,044 | 18,517 | |||||
Trading account assets - debt | 368 | 288 | |||||
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 9,276 | 8,795 | |||||
Trading account assets - debt | 199 | 189 | |||||
Fair Value, Measurements, Recurring | Foreign government bonds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 96,476 | 83,713 | |||||
Trading account assets - debt | 817 | 731 | |||||
Fair Value, Measurements, Recurring | U.S. corporate public securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 80,605 | 75,368 | |||||
Fair Value, Measurements, Recurring | U.S. corporate private securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 30,612 | 30,444 | |||||
Fair Value, Measurements, Recurring | Foreign Corporate Public Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 29,349 | 28,554 | |||||
Fair Value, Measurements, Recurring | Foreign Corporate Private Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 19,648 | 19,138 | |||||
Fair Value, Measurements, Recurring | Corporate securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - debt | 18,053 | 23,328 | |||||
Fair Value, Measurements, Recurring | Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 10,545 | 10,226 | |||||
Trading account assets - debt | 1,436 | 1,345 | |||||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 11,004 | 10,462 | |||||
Trading account assets - debt | 1,932 | 1,873 | |||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 4,970 | 5,106 | |||||
Trading account assets - debt | 1,468 | 1,513 | |||||
Fair Value, Measurements, Recurring | Equity securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading Securities, Equity | 2,254 | 2,352 | |||||
Fair Value, Measurements, Recurring | All other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - All other | 2,872 | 3,361 | |||||
Fair Value, Measurements, Recurring | All other | Other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets Netting | (17,705) | (11,447) | |||||
Fair Value, Measurements, Recurring | Level 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading accounts assets | 1,563 | 2,172 | |||||
Equity securities, available-for-sale | 5,933 | 6,011 | |||||
Commercial mortgage and other loans | 0 | 0 | |||||
Other long-term investments | 45 | 13 | |||||
Short-term investments | 1,491 | 6,776 | |||||
Cash equivalents | 4,814 | 4,834 | |||||
Other assets | 0 | 0 | |||||
Subtotal excluding separate account assets | 13,846 | 19,806 | |||||
Separate account assets | 38,099 | 43,076 | |||||
TOTAL ASSETS | 51,945 | 62,882 | |||||
Future policy benefits | 0 | 0 | |||||
Other liabilities | 2 | 1 | |||||
Notes issued by consolidated VIEs | 0 | 0 | |||||
Total liabilities | 2 | 1 | |||||
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 7 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Foreign Corporate Public Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Foreign Corporate Private Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - debt | 1 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 1 | Equity securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading Securities, Equity | 1,463 | 1,542 | |||||
Fair Value, Measurements, Recurring | Level 1 | All other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - All other | 92 | 630 | |||||
Fair Value, Measurements, Recurring | Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 307,555 | 284,703 | |||||
Trading accounts assets | 44,079 | 42,821 | |||||
Equity securities, available-for-sale | 3,175 | 2,997 | |||||
Commercial mortgage and other loans | 286 | 274 | |||||
Other long-term investments | 120 | 130 | |||||
Short-term investments | 1,612 | 711 | |||||
Cash equivalents | 13,595 | 9,374 | |||||
Other assets | 9 | 9 | |||||
Subtotal excluding separate account assets | 370,431 | 341,019 | |||||
Separate account assets | 215,306 | 214,838 | |||||
TOTAL ASSETS | 585,737 | 555,857 | |||||
Future policy benefits | 0 | 0 | |||||
Other liabilities | 8,010 | 5,306 | |||||
Notes issued by consolidated VIEs | 0 | 0 | |||||
Total liabilities | 8,010 | 5,306 | |||||
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 22,044 | 18,517 | |||||
Trading account assets - debt | 368 | 288 | |||||
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 9,270 | 8,789 | |||||
Trading account assets - debt | 199 | 189 | |||||
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 96,354 | 83,590 | |||||
Trading account assets - debt | 774 | 697 | |||||
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 80,391 | 75,163 | |||||
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 29,442 | 29,750 | |||||
Fair Value, Measurements, Recurring | Level 2 | Foreign Corporate Public Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 29,252 | 28,510 | |||||
Fair Value, Measurements, Recurring | Level 2 | Foreign Corporate Private Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 19,055 | 18,859 | |||||
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - debt | 17,824 | 23,125 | |||||
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 5,977 | 6,178 | |||||
Trading account assets - debt | 825 | 749 | |||||
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 10,993 | 10,424 | |||||
Trading account assets - debt | 1,931 | 1,870 | |||||
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 4,777 | 4,923 | |||||
Trading account assets - debt | 1,464 | 1,509 | |||||
Fair Value, Measurements, Recurring | Level 2 | Equity securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading Securities, Equity | 210 | 221 | |||||
Fair Value, Measurements, Recurring | Level 2 | All other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - All other | 20,484 | 14,173 | |||||
Fair Value, Measurements, Recurring | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 6,974 | 5,620 | |||||
Trading accounts assets | 1,462 | 1,434 | |||||
Equity securities, available-for-sale | 292 | 266 | |||||
Commercial mortgage and other loans | 0 | 0 | |||||
Other long-term investments | 19 | 49 | |||||
Short-term investments | 0 | 0 | |||||
Cash equivalents | 0 | 0 | |||||
Other assets | 36 | 7 | |||||
Subtotal excluding separate account assets | 8,783 | 7,376 | |||||
Separate account assets | 2,168 | 1,995 | |||||
TOTAL ASSETS | 10,951 | 9,371 | |||||
Future policy benefits | 11,069 | 8,434 | |||||
Other liabilities | 2 | 2 | |||||
Notes issued by consolidated VIEs | 2,946 | 8,597 | |||||
Total liabilities | 14,017 | 17,033 | |||||
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 0 | 0 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 6 | 6 | |||||
Trading account assets - debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 122 | 123 | |||||
Trading account assets - debt | 36 | 34 | |||||
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 214 | 205 | |||||
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 1,170 | 694 | |||||
Fair Value, Measurements, Recurring | Level 3 | Foreign Corporate Public Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 97 | 44 | |||||
Fair Value, Measurements, Recurring | Level 3 | Foreign Corporate Private Securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 593 | 279 | |||||
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - debt | 228 | 203 | |||||
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 4,568 | 4,048 | |||||
Trading account assets - debt | 611 | 596 | |||||
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 11 | 38 | |||||
Trading account assets - debt | 1 | 3 | |||||
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed maturities, available-for-sale: | 193 | 183 | |||||
Trading account assets - debt | 4 | 4 | |||||
Fair Value, Measurements, Recurring | Level 3 | Equity securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading Securities, Equity | 581 | 589 | |||||
Fair Value, Measurements, Recurring | Level 3 | All other | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading account assets - All other | $ 1 | $ 5 | |||||
|
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
||||
Fair Value Reporting [Line Items] | ||||||
Fair Value Assets Level 1 to Level 2 Transfers | $ 254,000,000 | $ 50,000,000 | ||||
Fair Value Assets Level 2 to Level 1 Transfers | 18,000,000 | 17,000,000 | ||||
Total commercial mortgage and other loans | [1] | 50,798,000,000 | $ 50,559,000,000 | |||
Other long-term investments | [1] | 10,281,000,000 | 9,986,000,000 | |||
Notes Of Consolidated Variable Interest Entities | [1] | 2,946,000,000 | 8,597,000,000 | |||
Fair Value Option | ||||||
Fair Value Reporting [Line Items] | ||||||
Interest income recorded on certain commercial loans | 2,000,000 | 3,000,000 | ||||
Commercial mortgage and other loans | 286,000,000 | 274,000,000 | ||||
Contractual principal amounts of commercial mortgage loans, for which the fair value option has been elected | 283,000,000 | 270,000,000 | ||||
Other long-term investments | 1,292,000,000 | 1,322,000,000 | ||||
Notes Of Consolidated Variable Interest Entities | 2,946,000,000 | 8,597,000,000 | ||||
Notes Of Vies Contractual Principle Amount | 3,292,000,000 | 9,186,000,000 | ||||
Interest Expense | 38,000,000 | $ 68,000,000 | ||||
Non Accrual Loans | ||||||
Fair Value Reporting [Line Items] | ||||||
Commercial mortgage and other loans | 0 | |||||
Contractual principal amounts of commercial mortgage loans, for which the fair value option has been elected | 0 | |||||
Fair Value, Measurements, Recurring | ||||||
Fair Value Reporting [Line Items] | ||||||
Total commercial mortgage and other loans | 286,000,000 | 274,000,000 | ||||
Other long-term investments | 172,000,000 | 182,000,000 | ||||
Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value Reporting [Line Items] | ||||||
Total commercial mortgage and other loans | 286,000,000 | 274,000,000 | ||||
Other long-term investments | 120,000,000 | 130,000,000 | ||||
Level 3 | Fair Value, Measurements, Recurring | ||||||
Fair Value Reporting [Line Items] | ||||||
Total commercial mortgage and other loans | 0 | 0 | ||||
Other long-term investments | 19,000,000 | 49,000,000 | ||||
Level 3 | Internal | Fair Value, Measurements, Recurring | ||||||
Fair Value Reporting [Line Items] | ||||||
Other long-term investments | 9,000,000 | 39,000,000 | ||||
Level 3 | Internal | Fair Value, Measurements, Recurring | Separate Accounts Asset | ||||||
Fair Value Reporting [Line Items] | ||||||
Total commercial mortgage and other loans | $ 972,000,000 | $ 960,000,000 | ||||
Separate Accounts Commercial Mortgage Loan [Member] | Level 3 | Minimum | Discounted cash flow | ||||||
Fair Value Reporting [Line Items] | ||||||
Fair Value Inputs Credit Risk | 1.43% | 1.49% | ||||
Separate Accounts Commercial Mortgage Loan [Member] | Level 3 | Maximum | Discounted cash flow | ||||||
Fair Value Reporting [Line Items] | ||||||
Fair Value Inputs Credit Risk | 3.58% | 4.81% | ||||
Separate Accounts Commercial Mortgage Loan [Member] | Level 3 | Weighted Average | Discounted cash flow | ||||||
Fair Value Reporting [Line Items] | ||||||
Fair Value Inputs Credit Risk | 1.64% | 1.79% | ||||
Accounting Standards Update 2015-07 | Other long-term investments | ||||||
Fair Value Reporting [Line Items] | ||||||
Investments, Fair Value Disclosure | $ 1,301,000,000 | $ 1,413,000,000 | ||||
Accounting Standards Update 2015-07 | Other long-term investments | Scenario, Previously Reported | Level 2 | ||||||
Fair Value Reporting [Line Items] | ||||||
Investments, Fair Value Disclosure | 82,000,000 | |||||
Accounting Standards Update 2015-07 | Other long-term investments | Scenario, Previously Reported | Level 3 | ||||||
Fair Value Reporting [Line Items] | ||||||
Investments, Fair Value Disclosure | 1,331,000,000 | |||||
Accounting Standards Update 2015-07 | Separate Account Assets | ||||||
Fair Value Reporting [Line Items] | ||||||
Investments, Fair Value Disclosure | $ 25,928,000,000 | $ 25,661,000,000 | ||||
|
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other long-term investments | [1] | $ 10,281 | $ 9,986 | |
Separate account assets | 281,501 | 285,570 | ||
TOTAL ASSETS | 772,995 | 757,255 | ||
Future policy benefits | 234,728 | 224,384 | ||
Total liabilities | 723,730 | 715,332 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other long-term investments | 172 | 182 | ||
Subtotal excluding separate account assets | 375,343 | 356,744 | ||
Separate account assets | 255,573 | 259,909 | ||
TOTAL ASSETS | 630,916 | 616,653 | ||
Future policy benefits | 11,069 | 8,434 | ||
Other liabilities | 437 | 33 | ||
Notes issued by consolidated VIEs | 2,946 | 8,597 | ||
Total liabilities | 14,452 | 17,064 | ||
Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 873 | 855 | ||
Other long-term investments | 19 | 49 | ||
Other assets | 37 | 12 | ||
Subtotal excluding separate account assets | 8,783 | 7,376 | ||
Separate account assets | 2,168 | 1,995 | ||
TOTAL ASSETS | 10,951 | 9,371 | ||
Future policy benefits | 11,069 | 8,434 | ||
Other liabilities | 2 | 2 | ||
Notes issued by consolidated VIEs | 2,946 | 8,597 | ||
Total liabilities | 14,017 | 17,033 | ||
Level 3 | Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 6 | 6 | ||
Level 3 | Fair Value, Measurements, Recurring | Foreign government bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 158 | 157 | ||
Level 3 | Fair Value, Measurements, Recurring | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 2,302 | 1,425 | ||
Level 3 | Fair Value, Measurements, Recurring | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 5,179 | 4,644 | ||
Level 3 | Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 12 | 41 | ||
Level 3 | Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 197 | 187 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 105 | 63 | ||
Other long-term investments | 9 | 39 | ||
Other assets | 37 | 12 | ||
Subtotal excluding separate account assets | 2,255 | 1,396 | ||
Separate account assets | 1,186 | 1,024 | ||
TOTAL ASSETS | 3,441 | 2,420 | ||
Future policy benefits | 11,069 | 8,434 | ||
Other liabilities | 2 | 2 | ||
Notes issued by consolidated VIEs | 0 | 0 | ||
Total liabilities | 11,071 | 8,436 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | Obligations of U.S. states and their political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 6 | 6 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | Foreign government bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 1,901 | 1,085 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 156 | 149 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 4 | 5 | ||
Level 3 | Fair Value, Measurements, Recurring | Internal | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 37 | 37 | ||
Level 3 | Fair Value, Measurements, Recurring | External | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 768 | 792 | ||
Other long-term investments | 10 | 10 | ||
Other assets | 0 | 0 | ||
Subtotal excluding separate account assets | 6,528 | 5,980 | ||
Separate account assets | 982 | 971 | ||
TOTAL ASSETS | 7,510 | 6,951 | ||
Future policy benefits | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Notes issued by consolidated VIEs | 2,946 | 8,597 | ||
Total liabilities | 2,946 | 8,597 | ||
Level 3 | Fair Value, Measurements, Recurring | External | Obligations of U.S. states and their political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | External | Foreign government bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 158 | 157 | ||
Level 3 | Fair Value, Measurements, Recurring | External | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 401 | 340 | ||
Level 3 | Fair Value, Measurements, Recurring | External | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 5,023 | 4,495 | ||
Level 3 | Fair Value, Measurements, Recurring | External | Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | 8 | 36 | ||
Level 3 | Fair Value, Measurements, Recurring | External | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities | $ 160 | $ 150 | ||
|
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 234,728 | $ 224,384 |
Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 11,069 | $ 8,434 |
Level 3 | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Level 3 | Minimum | Discounted cash flow | Future Policy Benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.44% | 0.06% |
Utilization rate | 56.00% | 56.00% |
Withdrawal rate | 74.00% | 74.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 16.00% | 17.00% |
Level 3 | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 0.84% | 0.93% |
Level 3 | Minimum | Market comparables | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA multiples | 1.4 | 1.4 |
Level 3 | Minimum | Liquidation | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Liquidation value | 15.91% | 15.79% |
Level 3 | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Maximum | Discounted cash flow | Future Policy Benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 14.00% | 14.00% |
NPR spread | 2.07% | 1.76% |
Utilization rate | 96.00% | 96.00% |
Withdrawal rate | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 28.00% | 28.00% |
Level 3 | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 21.69% | 25.00% |
Level 3 | Maximum | Market comparables | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA multiples | 5.0 | 5.0 |
Level 3 | Maximum | Liquidation | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Liquidation value | 29.13% | 29.33% |
Level 3 | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 9.14% | 7.66% |
Level 3 | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA multiples | 3.9 | 3.7 |
Level 3 | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Liquidation value | 17.74% | 17.77% |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 11,069 | $ 8,434 |
Level 3 | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value | 2,302 | 1,425 |
Level 3 | Internal | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | 11,069 | 8,434 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future Policy Benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | 11,069 | 8,434 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value | $ 1,901 | $ 1,085 |
Future Policy Benefits | Level 3 | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Mortality rate | 0.00% |
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Equity | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | $ 266 | $ 275 |
Included in earnings: | ||
Realized investment gains (losses), net | 1 | 4 |
Included in other comprehensive income (loss) | 5 | 3 |
Purchases | 24 | 4 |
Sales | (13) | (22) |
Issuances | 0 | 0 |
Settlements | (13) | 0 |
Foreign currency translation | 15 | (1) |
Other | 0 | 0 |
Transfers into Level 3 | 7 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 292 | 263 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | (1) |
Other income | 0 | 0 |
Equity | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Equity | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Notes issued by consolidated VIEs | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | (8,597) | (6,033) |
Included in earnings: | ||
Realized investment gains (losses), net | 101 | 15 |
Interest credited to policyholders’ account balances | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | (946) |
Settlements | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | 5,569 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | (2,946) | (6,810) |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 101 | 15 |
Other income | (19) | 154 |
Interest credited to policyholders’ account balances | 0 | 0 |
Notes issued by consolidated VIEs | Other income | ||
Included in earnings: | ||
Net investment income | (19) | 154 |
Notes issued by consolidated VIEs | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. States | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 6 | 6 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 6 | 6 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. States | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign Government | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 123 | 2 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Included in other comprehensive income (loss) | 1 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | (2) | (4) |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 138 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 122 | 136 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign Government | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. Corporate Public Securities | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 205 | 357 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Included in other comprehensive income (loss) | 2 | 1 |
Purchases | 1 | 164 |
Sales | 0 | (150) |
Issuances | 0 | 0 |
Settlements | 0 | (8) |
Foreign currency translation | 4 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 2 | 6 |
Transfers out of Level 3 | 0 | (5) |
Fair Value, end of period | 214 | 365 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. Corporate Public Securities | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. Corporate Private Securities | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 694 | 523 |
Included in earnings: | ||
Realized investment gains (losses), net | (83) | (3) |
Included in other comprehensive income (loss) | (40) | (3) |
Purchases | 9 | 30 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (27) | (11) |
Foreign currency translation | 1 | 0 |
Other | 0 | (3) |
Transfers into Level 3 | 614 | 10 |
Transfers out of Level 3 | 0 | (31) |
Fair Value, end of period | 1,170 | 514 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | (83) | (3) |
Fixed Maturities Available-For-Sale | U.S. Corporate Private Securities | Net investment income | ||
Included in earnings: | ||
Net investment income | 2 | 2 |
Fixed Maturities Available-For-Sale | Foreign Corporate Public Securities | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 44 | 252 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Included in other comprehensive income (loss) | 1 | 0 |
Purchases | 24 | 12 |
Sales | 0 | (43) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | 5 | (2) |
Other | 0 | 0 |
Transfers into Level 3 | 23 | 0 |
Transfers out of Level 3 | 0 | (4) |
Fair Value, end of period | 97 | 215 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign Corporate Public Securities | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign Corporate Private Securities | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 279 | 171 |
Included in earnings: | ||
Realized investment gains (losses), net | (1) | 2 |
Included in other comprehensive income (loss) | (107) | (6) |
Purchases | 27 | 13 |
Sales | (4) | 0 |
Issuances | 0 | 0 |
Settlements | (43) | (25) |
Foreign currency translation | 3 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 439 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 593 | 156 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign Corporate Private Securities | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 1 |
Fixed Maturities Available-For-Sale | Asset-Backed | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 4,048 | 4,059 |
Included in earnings: | ||
Realized investment gains (losses), net | 1 | 6 |
Included in other comprehensive income (loss) | (44) | 2 |
Purchases | 176 | 325 |
Sales | 0 | (104) |
Issuances | 0 | 0 |
Settlements | (33) | (39) |
Foreign currency translation | 34 | (3) |
Other | 89 | 3 |
Transfers into Level 3 | 850 | 510 |
Transfers out of Level 3 | (557) | (400) |
Fair Value, end of period | 4,568 | 4,362 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 4 |
Other income | (1) | |
Fixed Maturities Available-For-Sale | Asset-Backed | Net investment income | ||
Included in earnings: | ||
Net investment income | 4 | 3 |
Fixed Maturities Available-For-Sale | Commercial Mortgage- Backed | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 38 | 43 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 8 | 32 |
Sales | (34) | 0 |
Issuances | 0 | 0 |
Settlements | (1) | (2) |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 2 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 11 | 75 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | |
Fixed Maturities Available-For-Sale | Commercial Mortgage- Backed | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Fixed Maturities Available-For-Sale | Residential Mortgage- Backed | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 183 | 253 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Included in other comprehensive income (loss) | 3 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (9) | (9) |
Foreign currency translation | 16 | (2) |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 193 | 242 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | |
Fixed Maturities Available-For-Sale | Residential Mortgage- Backed | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Trading Account Assets | Foreign Government | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 34 | 21 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Purchases | 2 | 1 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 36 | 22 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | 0 |
Trading Account Assets | Foreign Government | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Trading Account Assets | Foreign Government | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Trading Account Assets | Corporate | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 203 | 124 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Purchases | 3 | 20 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (15) | (2) |
Foreign currency translation | 0 | 0 |
Other | (15) | 0 |
Transfers into Level 3 | 87 | 7 |
Transfers out of Level 3 | (25) | 0 |
Fair Value, end of period | 228 | 144 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | (10) | (5) |
Trading Account Assets | Corporate | Other income | ||
Included in earnings: | ||
Net investment income | (10) | (5) |
Trading Account Assets | Corporate | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Trading Account Assets | Asset-Backed | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 596 | 393 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Purchases | 18 | 4 |
Sales | (1) | 0 |
Issuances | 0 | 0 |
Settlements | (1) | (1) |
Foreign currency translation | 0 | 0 |
Other | 17 | 0 |
Transfers into Level 3 | 115 | 46 |
Transfers out of Level 3 | (128) | (68) |
Fair Value, end of period | 611 | 376 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | (4) | 2 |
Trading Account Assets | Asset-Backed | Other income | ||
Included in earnings: | ||
Net investment income | (5) | 2 |
Trading Account Assets | Asset-Backed | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Trading Account Assets | Commercial Mortgage- Backed | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 3 | 5 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Purchases | 0 | 1 |
Sales | 0 | (2) |
Issuances | 0 | 0 |
Settlements | 0 | (1) |
Foreign currency translation | 0 | 0 |
Other | (2) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 1 | 3 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | 0 |
Trading Account Assets | Commercial Mortgage- Backed | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Trading Account Assets | Commercial Mortgage- Backed | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Trading Account Assets | Residential Mortgage- Backed | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 4 | 7 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | (1) |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 4 | 6 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | 0 |
Trading Account Assets | Residential Mortgage- Backed | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Trading Account Assets | Residential Mortgage- Backed | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Trading Account Assets | Equity | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 589 | 663 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | (3) |
Purchases | 1 | 7 |
Sales | (11) | (4) |
Issuances | 0 | 0 |
Settlements | (75) | (15) |
Foreign currency translation | 29 | (4) |
Other | 18 | (7) |
Transfers into Level 3 | 28 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 581 | 634 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | (3) |
Other income | 2 | 11 |
Trading Account Assets | Equity | Other income | ||
Included in earnings: | ||
Net investment income | 2 | (3) |
Trading Account Assets | Equity | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Trading Account Assets | All Other Activity | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 5 | 7 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | (4) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 1 | 8 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | 1 |
Trading Account Assets | All Other Activity | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 1 |
Trading Account Assets | All Other Activity | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | |
Other Long-term Investments | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 49 | 13 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | (2) |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 3 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | (30) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (1) |
Fair Value, end of period | 19 | 13 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | (2) |
Other income | 0 | 0 |
Other Long-term Investments | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Other Long-term Investments | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Other Assets | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 7 | 2 |
Included in earnings: | ||
Realized investment gains (losses), net | 25 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 4 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 36 | 2 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 25 | 0 |
Other income | 0 | 0 |
Other Assets | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Other Assets | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Separate Accounts Assets | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 1,995 | 1,738 |
Included in earnings: | ||
Realized investment gains (losses), net | 1 | 0 |
Interest credited to policyholders’ account balances | (12) | 11 |
Purchases | 162 | 338 |
Sales | (60) | (8) |
Issuances | 0 | 0 |
Settlements | (33) | (43) |
Foreign currency translation | 0 | (1) |
Other | 0 | 0 |
Transfers into Level 3 | 197 | 0 |
Transfers out of Level 3 | (88) | (22) |
Fair Value, end of period | 2,168 | 2,019 |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 0 |
Other income | 0 | 0 |
Interest credited to policyholders’ account balances | (12) | 9 |
Separate Accounts Assets | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Separate Accounts Assets | Net investment income | ||
Included in earnings: | ||
Net investment income | 6 | 6 |
Future Policy Benefits | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | (8,434) | (8,182) |
Included in earnings: | ||
Realized investment gains (losses), net | (2,380) | (1,052) |
Interest credited to policyholders’ account balances | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | (254) | (239) |
Settlements | 0 | 0 |
Foreign currency translation | (1) | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | (11,069) | (9,473) |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | (2,425) | (1,114) |
Other income | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 |
Future Policy Benefits | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Future Policy Benefits | Net investment income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Other Liabilities | ||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | (2) | (5) |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 1 |
Interest credited to policyholders’ account balances | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 2 |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | (2) | (2) |
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of the period: | ||
Realized investment gains (losses), net | 0 | 1 |
Other income | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 |
Other Liabilities | Other income | ||
Included in earnings: | ||
Net investment income | 0 | 0 |
Other Liabilities | Net investment income | ||
Included in earnings: | ||
Net investment income | $ 0 | $ 0 |
Fair Value of Assets and Liabilities (Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 2,209 | $ 2,728 |
Netting | (17,717) | (11,457) |
Total derivative liabilities | 443 | 40 |
Netting | (7,577) | (5,276) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 16,680 | 10,579 |
Total derivative liabilities | 6,517 | 4,578 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 678 | 318 |
Total derivative liabilities | 213 | 114 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2 | 3 |
Total derivative liabilities | 87 | 53 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2,360 | 2,995 |
Total derivative liabilities | 379 | 244 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 206 | 290 |
Total derivative liabilities | 824 | 327 |
Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 42 | 15 |
Total derivative liabilities | 4 | 3 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 39 | 11 |
Total derivative liabilities | 4 | 3 |
Level 1 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 3 | 4 |
Total derivative liabilities | 0 | 0 |
Level 1 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 19,875 | 14,131 |
Total derivative liabilities | 8,014 | 5,311 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 16,634 | 10,561 |
Total derivative liabilities | 6,511 | 4,573 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 678 | 318 |
Total derivative liabilities | 213 | 114 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2 | 3 |
Total derivative liabilities | 87 | 53 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2,360 | 2,995 |
Total derivative liabilities | 379 | 244 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 201 | 254 |
Total derivative liabilities | 824 | 327 |
Level 2 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 9 | 39 |
Total derivative liabilities | 2 | 2 |
Level 3 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 7 | 7 |
Total derivative liabilities | 2 | 2 |
Level 3 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2 | 32 |
Total derivative liabilities | 0 | 0 |
Level 3 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | $ 0 | $ 0 |
Fair Value of Assets and Liabilities (Changes in Level 3 Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Equity | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, beginning of period | $ 32 | $ 6 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | (2) |
Other income | 0 | 0 |
Purchases | 0 | 2 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | (30) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (1) |
Fair Value, end of period | 2 | 5 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | (2) |
Other income | 0 | 0 |
Interest Rate | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, beginning of period | 5 | 3 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 1 |
Other income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 5 | 4 |
Included in earnings: | ||
Realized investment gains (losses), net | 0 | 1 |
Other income | $ 0 | $ 0 |
Fair Value of Assets and Liabilities (Nonrecurring Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Commercial mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 0 | $ 18 |
Gains (Losses) | 0 | 0 |
Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 88 | 88 |
Gains (Losses) | 1 | (3) |
Cost method investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 108 | 54 |
Gains (Losses) | $ (30) | $ (24) |
Fair Value of Assets and Liabilities (Changes in Fair Values Recorded in Earnings for FVO Assets-Liabilities) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Commercial mortgage and other loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Changes in instrument-specific credit risk | $ 0 | $ 0 |
Other changes in fair value | 0 | 0 |
Other long-term investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Changes in fair value | (51) | 32 |
Notes issued by consolidated VIEs | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Changes in fair value | $ (81) | $ (168) |
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Assets: | |||||||
Fixed maturities, held-to-maturity | [1] | $ 2,411 | $ 2,308 | ||||
Policy loans | 11,805 | 11,657 | |||||
Accrued investment income | [1] | 3,180 | 3,110 | ||||
Liabilities: | |||||||
Securities sold under agreements to repurchase | 8,357 | 7,882 | |||||
Cash collateral for loaned securities | 4,052 | 3,496 | |||||
Short-term debt | 969 | 1,216 | |||||
Long-term debt | [2] | 19,608 | 19,594 | ||||
Fair Value | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 2,841 | 2,624 | |||||
Commercial mortgage and other loans | 52,959 | 51,579 | |||||
Policy loans | 11,805 | 11,657 | |||||
Short-term investments | 594 | 618 | |||||
Cash and cash equivalents | 4,083 | 3,404 | |||||
Accrued investment income | 3,180 | 3,110 | |||||
Other assets | 3,303 | 3,122 | |||||
Total assets | 78,765 | 76,114 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 97,009 | 94,271 | |||||
Securities sold under agreements to repurchase | 8,357 | 7,882 | |||||
Cash collateral for loaned securities | 4,052 | 3,496 | |||||
Short-term debt | 970 | 1,221 | |||||
Long-term debt | 21,291 | 21,301 | |||||
Other liabilities | 5,659 | 6,039 | |||||
Separate account liabilities—investment contracts | 97,287 | 102,245 | |||||
Total liabilities | 234,625 | 236,455 | |||||
Fair Value | Long-term debt | |||||||
Liabilities: | |||||||
Assets Under Set Off Arrangements | 5,040 | 5,120 | |||||
Fair Value | Fixed maturities, held-to-maturity | |||||||
Liabilities: | |||||||
Assets Under Set Off Arrangements | 3,990 | 4,081 | |||||
Fair Value | Accounting Standards Update 2015-07 | |||||||
Liabilities: | |||||||
Cost Method Investments, Fair Value Disclosure | 1,751 | 1,653 | |||||
Fair Value | Level 1 | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 0 | 0 | |||||
Commercial mortgage and other loans | 0 | 0 | |||||
Policy loans | 0 | 0 | |||||
Short-term investments | 0 | 0 | |||||
Cash and cash equivalents | 3,755 | 2,832 | |||||
Accrued investment income | 0 | 0 | |||||
Other assets | 58 | 136 | |||||
Total assets | 3,813 | 2,968 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 0 | 0 | |||||
Securities sold under agreements to repurchase | 0 | 0 | |||||
Cash collateral for loaned securities | 0 | 0 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 1,346 | 1,328 | |||||
Other liabilities | 0 | 0 | |||||
Separate account liabilities—investment contracts | 0 | 0 | |||||
Total liabilities | 1,346 | 1,328 | |||||
Fair Value | Level 2 | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 1,698 | 1,543 | |||||
Commercial mortgage and other loans | 501 | 533 | |||||
Policy loans | 0 | 0 | |||||
Short-term investments | 593 | 617 | |||||
Cash and cash equivalents | 328 | 572 | |||||
Accrued investment income | 3,180 | 3,110 | |||||
Other assets | 2,602 | 2,334 | |||||
Total assets | 8,902 | 8,709 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 40,455 | 39,314 | |||||
Securities sold under agreements to repurchase | 8,357 | 7,882 | |||||
Cash collateral for loaned securities | 4,052 | 3,496 | |||||
Short-term debt | 970 | 1,221 | |||||
Long-term debt | 16,537 | 16,540 | |||||
Other liabilities | 4,975 | 5,344 | |||||
Separate account liabilities—investment contracts | 64,720 | 69,978 | |||||
Total liabilities | 140,066 | 143,775 | |||||
Fair Value | Level 3 | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 1,143 | 1,081 | |||||
Commercial mortgage and other loans | 52,458 | 51,046 | |||||
Policy loans | 11,805 | 11,657 | |||||
Short-term investments | 1 | 1 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Accrued investment income | 0 | 0 | |||||
Other assets | 643 | 652 | |||||
Total assets | 66,050 | 64,437 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 56,554 | 54,957 | |||||
Securities sold under agreements to repurchase | 0 | 0 | |||||
Cash collateral for loaned securities | 0 | 0 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 3,408 | 3,433 | |||||
Other liabilities | 684 | 695 | |||||
Separate account liabilities—investment contracts | 32,567 | 32,267 | |||||
Total liabilities | 93,213 | 91,352 | |||||
Carrying Amount | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 2,411 | 2,308 | |||||
Commercial mortgage and other loans | 50,512 | 50,285 | |||||
Policy loans | 11,805 | 11,657 | |||||
Short-term investments | 594 | 618 | |||||
Cash and cash equivalents | 4,083 | 3,404 | |||||
Accrued investment income | 3,180 | 3,110 | |||||
Other assets | 3,303 | 3,122 | |||||
Total assets | 75,888 | 74,504 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 96,233 | 93,937 | |||||
Securities sold under agreements to repurchase | 8,357 | 7,882 | |||||
Cash collateral for loaned securities | 4,052 | 3,496 | |||||
Short-term debt | 969 | 1,216 | |||||
Long-term debt | 19,608 | 19,594 | |||||
Other liabilities | 5,659 | 6,039 | |||||
Separate account liabilities—investment contracts | 97,287 | 102,245 | |||||
Total liabilities | 232,165 | 234,409 | |||||
Carrying Amount | Long-term debt | |||||||
Liabilities: | |||||||
Assets Under Set Off Arrangements | 5,040 | 4,889 | |||||
Carrying Amount | Fixed maturities, held-to-maturity | |||||||
Liabilities: | |||||||
Assets Under Set Off Arrangements | 3,990 | 3,850 | |||||
Carrying Amount | Accounting Standards Update 2015-07 | |||||||
Liabilities: | |||||||
Cost Method Investments, Fair Value Disclosure | $ 1,548 | $ 1,563 | |||||
|
Derivative Instruments (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total derivative assets | $ 2,209,000,000 | $ 2,728,000,000 |
Total derivative liabilities | 443,000,000 | 40,000,000 |
Anticipated pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to earnings | $ 105,000,000 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 29 years | |
Net investment hedges income (loss) before taxes | $ 533,000,000 | 541,000,000 |
Derivative [Line Items] | ||
Credit Derivative, Purchased Credit Protection, Liability | 9,000,000 | 8,000,000 |
Notional of credit derivative | 500,000,000 | 500,000,000 |
Fair value of credit derivative liability | 36,000,000 | 15,000,000 |
Credit protection derivatives outstanding notional amounts | 407,000,000 | 532,000,000 |
Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 107,000,000 | 106,000,000 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ (1,000,000) | (3,000,000) |
Credit Derivatives Written Max Length Of Maturities (less than) | 5 years | |
Single Name | NAIC 3 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 6,000,000 | |
Single Name | NAIC 5 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 2,000,000 | |
Single Name | NAIC 6 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 3,000,000 | |
Single Name | NAIC 1 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 36,000,000 | |
Single Name | NAIC 2 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 60,000,000 | |
Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 800,000,000 | 701,000,000 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ (39,000,000) | $ (24,000,000) |
Credit Derivatives Written Max Length Of Maturities (less than) | 43 years |
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative [Line Items] | ||
Notional | $ 424,516 | $ 427,550 |
Assets | 19,926 | 14,192 |
Liabilities | (8,020) | (5,316) |
Net Embedded Derivative Liability | 11,020 | 8,408 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 14,534 | 14,493 |
Assets | 1,330 | 1,619 |
Liabilities | (246) | (154) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 1,398 | 1,431 |
Assets | 20 | 20 |
Liabilities | (168) | (148) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 348 | 323 |
Assets | 13 | 7 |
Liabilities | (3) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 12,788 | 12,739 |
Assets | 1,297 | 1,592 |
Liabilities | (75) | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 409,982 | 413,057 |
Assets | 18,596 | 12,573 |
Liabilities | (7,774) | (5,162) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 173,815 | 173,091 |
Assets | 15,990 | 10,161 |
Liabilities | (6,230) | (4,232) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 32,370 | 28,209 |
Assets | 39 | 11 |
Liabilities | (4) | (3) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 22,766 | 40,056 |
Assets | 625 | 387 |
Liabilities | (117) | (196) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 78 | 86 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 17,257 | 17,400 |
Assets | 664 | 311 |
Liabilities | (209) | (113) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Options | ||
Derivative [Line Items] | ||
Notional | 93 | 93 |
Assets | 1 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 11,598 | 11,607 |
Assets | 1,062 | 1,404 |
Liabilities | (303) | (238) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 1,815 | 1,839 |
Assets | 2 | 3 |
Liabilities | (87) | (53) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 1,787 | 249 |
Assets | 3 | 2 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 55,503 | 48,958 |
Assets | 144 | 159 |
Liabilities | (102) | (118) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 18,843 | 18,804 |
Assets | 59 | 128 |
Liabilities | (722) | (209) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity Futures | ||
Derivative [Line Items] | ||
Notional | 79 | 80 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Synthetic GICs | ||
Derivative [Line Items] | ||
Notional | 73,978 | 72,585 |
Assets | 7 | 7 |
Liabilities | $ 0 | $ 0 |
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 19,926 | $ 14,192 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 909 | 776 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 909 | 776 |
Financial Instruments/Collateral | (909) | (776) |
Net Amount | 0 | 0 |
Total assets | ||
Gross Amounts of Recognized Financial Instruments | 20,722 | 14,804 |
Gross Amounts Offset in the Statement of Financial Position | (17,717) | (11,457) |
Net Amounts Presented in the Statement of Financial Position | 3,005 | 3,347 |
Financial Instruments/Collateral | (1,910) | (2,072) |
Net Amount | 1,095 | 1,275 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 8,020 | 5,316 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 8,357 | 7,882 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 8,357 | 7,882 |
Financial Instruments/Collateral | (8,357) | (7,882) |
Net Amount | 0 | 0 |
Total liabilities | ||
Gross Amounts of Recognized Financial Instruments | 16,362 | 13,192 |
Gross Amounts Offset in the Statement of Financial Position | (7,577) | (5,276) |
Net Amounts Presented in the Statement of Financial Position | 8,785 | 7,916 |
Financial Instruments/Collateral | (8,537) | (7,896) |
Net Amount | 248 | 20 |
Counterparty | ||
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 19,813 | 14,028 |
Gross Amounts Offset in the Statement of Financial Position | (17,717) | (11,457) |
Net Amounts Presented in the Statement of Financial Position | 2,096 | 2,571 |
Financial Instruments/Collateral | (1,001) | (1,296) |
Net Amount | 1,095 | 1,275 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 8,005 | 5,310 |
Gross Amounts Offset in the Statement of Financial Position | (7,577) | (5,276) |
Net Amounts Presented in the Statement of Financial Position | 428 | 34 |
Financial Instruments/Collateral | (180) | (14) |
Net Amount | $ 248 | $ 20 |
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 1,935 | $ 1,743 |
Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 19 | (1) |
Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (11) | 107 |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) |
Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (277) | 816 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3) | 14 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (9) | (12) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (14) | (5) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (9) | (12) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 11 | 19 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 28 | 11 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (9) | 103 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (269) | 799 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (8) | (4) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 28 | 11 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (9) | 103 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (261) | 803 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (4) |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (8) | 17 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (4) |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (8) | 10 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 7 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,938 | 1,733 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | 4 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4,490 | 2,712 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 499 | 111 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (489) | 433 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | 4 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (16) | (7) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (227) | (480) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2,319) | (1,036) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Interest Credited To Policyholders’ Account Balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 |
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |
Balance, beginning | $ 1,165 |
Net deferred gains (losses) on cash flow hedges from January 1 to March 31, 2016 | (248) |
Amount reclassified into current period earnings | (21) |
Balance, ending | $ 896 |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Commitments and Guarantees) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Securities Lending Transactions | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | $ 20,285 | $ 15,084 |
Fair value of related collateral | 20,758 | 15,508 |
Accrued liability (asset) associated with guarantee | 0 | 0 |
Asset Values | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 73,978 | 72,585 |
Fair value of related collateral | 75,669 | 73,634 |
Accrued liability (asset) associated with guarantee | (7) | (7) |
Credit Enhancements | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 8 | 24 |
Fair value of related collateral | 8 | 25 |
Accrued liability (asset) associated with guarantee | 0 | 0 |
Serviced Mortgage Loans | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 1,209 | 1,200 |
First-loss exposure portion of above | 373 | 371 |
Accrued liability (asset) associated with guarantee | 12 | 14 |
Guarantee Type, Other | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 329 | 324 |
Accrued liability (asset) associated with guarantee | 4 | 4 |
Commercial mortgage and other loans | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 2,662 | 2,272 |
Portion of commitment where prearrangement to sell to investor exists | 652 | 721 |
Investments Excluding Commercial Mortgage Loans | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Expected to be funded from the general account and other operations outside the separate accounts | 3,701 | 3,787 |
Expected to be funded from separate accounts | 136 | 92 |
Investments Excluding Commercial Mortgage Loans | Fosun Group | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Expected to be funded from the general account and other operations outside the separate accounts | $ 152 | $ 152 |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Narrative Excluding Litigation) (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Yield Maintenance Guarantee | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Guarantee obligation - maximum exposure | $ 321,000,000 | $ 317,000,000 | |
Securities Lending Transactions | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Fair value of the loaned securities, minimum collateral (greater than) | 102.00% | ||
Guarantee obligation - maximum exposure | $ 20,285,000,000 | 15,084,000,000 | |
Credit Enhancements | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Guarantee Expiration | 15 years | ||
Guarantee obligation - maximum exposure | $ 8,000,000 | 24,000,000 | |
Serviced Mortgage Loans | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Minimum percentage share of losses incurred of loan balance | 2.00% | ||
Maximum percentage share of losses incurred of loan balance | 20.00% | ||
Mortgages subject to loss-sharing arrangements | $ 10,064,000,000 | ||
Average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.84 | ||
Average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 61.00% | ||
Indemnification of Serviced Mortgage Loans, Losses | $ 0 | $ 0 | |
Guarantee obligation - maximum exposure | $ 1,209,000,000 | $ 1,200,000,000 |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Litigation Narrative) (Details) $ in Millions |
Mar. 31, 2016
USD ($)
|
---|---|
Litigation And Regulatory Matters | |
Litigation [Line Items] | |
Estimate of possible losses in excess of accruals (less than) | $ 250 |
>Z#*,\74(\Y/0G[*.*>8C<;*G@M"RFK<<()23% K9U84P]'+*"E0
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MHW)V;"$=G1BH#.YR17IB.9 $
MVR;[A&PO=V]R:W-H965T