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 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
☒ | Accelerated Filer | ☐ | |||||||||
Non-accelerated Filer | ☐ | Smaller reporting Company | |||||||||
Emerging growth company |
Page | |||||
PART I. FINANCIAL INFORMATION | |||||
2 | |||||
3 | |||||
4 | |||||
5 | |||||
6 | |||||
8 | |||||
10 | |||||
59 | |||||
91 | |||||
91 | |||||
PART II. OTHER INFORMATION | |||||
92 | |||||
92 | |||||
92 | |||||
93 |
September 30, 2021 | December 31, 2020 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Investments: | |||||||||||
Fixed maturity securities available for sale, at fair value, at September 30, 2021 and December 31, 2020, net of allowance for credit losses of $ | $ | $ | |||||||||
Preferred securities, at fair value | |||||||||||
Equity securities, at fair value | |||||||||||
Derivative investments | |||||||||||
Mortgage loans, net of allowance for credit losses of $ | |||||||||||
Investments in unconsolidated affiliates | |||||||||||
Other long-term investments | |||||||||||
Short-term investments, at September 30, 2021 and December 31, 2020 includes pledged short-term investments of $ | |||||||||||
Total investments | |||||||||||
Cash and cash equivalents, at September 30, 2021 and December 31, 2020 includes $ | |||||||||||
Trade and notes receivables, net of allowance of $ | |||||||||||
Reinsurance recoverable, net of allowance for credit losses of $ | |||||||||||
Goodwill | |||||||||||
Prepaid expenses and other assets | |||||||||||
Lease assets | |||||||||||
Other intangible assets, net | |||||||||||
Title plants | |||||||||||
Property and equipment, net | |||||||||||
Assets of discontinued operations | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Contractholder funds | $ | $ | |||||||||
Future policy benefits | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Notes payable | |||||||||||
Reserve for title claim losses | |||||||||||
Funds withheld for reinsurance liabilities | |||||||||||
Secured trust deposits | |||||||||||
Lease liabilities | |||||||||||
Income taxes payable | |||||||||||
Deferred tax liability | |||||||||||
Liabilities of discontinued operations | |||||||||||
Total liabilities | |||||||||||
Equity: | |||||||||||
FNF common stock, $ | |||||||||||
Preferred stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive earnings | |||||||||||
Less: Treasury stock, | ( | ( | |||||||||
Total Fidelity National Financial, Inc. shareholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Direct title insurance premiums | $ | $ | $ | $ | |||||||||||||||||||
Agency title insurance premiums | |||||||||||||||||||||||
Escrow, title-related and other fees | |||||||||||||||||||||||
Interest and investment income | |||||||||||||||||||||||
Recognized gains and losses, net | ( | ( | |||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Personnel costs | |||||||||||||||||||||||
Agent commissions | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Benefits and other changes in policy reserves | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Provision for title claim losses | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Earnings before equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||
Net earnings from continuing operations | |||||||||||||||||||||||
Net (loss) earnings from discontinued operations, net of tax | ( | ( | ( | ||||||||||||||||||||
Net earnings | |||||||||||||||||||||||
Less: Net earnings attributable to non-controlling interests | |||||||||||||||||||||||
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Net earnings per share from continuing operations attributable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Net (loss) earnings per share from discontinued operations attributable to common shareholders | ( | ( | ( | ||||||||||||||||||||
Net earnings per share attributable to common shareholders, basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | |||||||||||||||||||||||
Net earnings per share from continuing operations attributable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Net (loss) earnings per share from discontinued operations attributable to common shareholders | ( | ( | ( | ||||||||||||||||||||
Net earnings per share attributable to common shareholders, diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding - basic | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive earnings (loss): | |||||||||||||||||||||||
Unrealized gain (loss) on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) (1) | ( | ( | |||||||||||||||||||||
Unrealized gain (loss) on investments in unconsolidated affiliates (2) | ( | ||||||||||||||||||||||
Unrealized (loss) gain on foreign currency translation (3) | ( | ( | |||||||||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings (4) | ( | ( | ( | ( | |||||||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk (5) | ( | ( | |||||||||||||||||||||
Other comprehensive (loss) earnings | ( | ( | |||||||||||||||||||||
Comprehensive earnings | |||||||||||||||||||||||
Less: Comprehensive earnings attributable to non-controlling interests | |||||||||||||||||||||||
Comprehensive earnings attributable to Fidelity National Financial, Inc. common shareholders | $ | $ | $ | $ |
Fidelity National Financial, Inc. Common Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FNF | Other | Redeemable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common | Additional | Comprehensive | Treasury | Non- | Non- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock | Paid-in | Retained | Earnings | Stock | controlling | Total | controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Capital | Earnings | (Loss) | Shares | $ | Interests | Equity | Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Servicelink non-controlling interest | — | — | — | — | — | — | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
F&G Acquisition | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in instrument-specific credit risk | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings - unrealized gain on investments in unconsolidated affiliates | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings - unrealized gain on foreign currency translation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | ( | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary dividends declared to non-controlling interests | — | — | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock repurchased | — | — | — | — | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in instrument-specific credit risk | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings — unrealized loss on investments and other financial instruments | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss— unrealized losses on foreign currency translation | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | ( | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary dividends declared to non-controlling interests | — | — | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | $ | ( | $ | $ | $ |
Fidelity National Financial, Inc. Common Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FNF | Other | Redeemable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common | Additional | Comprehensive | Treasury | Non- | Non- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock | Paid-in | Retained | Earnings | Stock | controlling | Total | controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Capital | Earnings | (Loss) | Shares | $ | Interests | Equity | Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
F&G acquisition | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Servicelink non-controlling interest | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock repurchased | — | — | — | — | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in instrument-specific credit risk | — | — | — | — | ( | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings - unrealized gain on investments in unconsolidated affiliates | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss - unrealized loss on foreign currency translation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | ( | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary dividends declared to non-controlling interests | — | — | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of incremental share in consolidated subsidiaries | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock repurchased | — | — | — | — | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in instrument-specific credit risk | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss — unrealized loss on investments and other financial instruments | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain — unrealized gain on foreign currency translation | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | — | — | — | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | ( | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary dividends declared to non-controlling interests | — | — | — | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | $ | ( | $ | $ | $ |
For the nine months ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(Unaudited) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | $ | |||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Equity in earnings of unconsolidated affiliates | ( | ( | |||||||||
(Gain) loss on sales of investments and other assets and asset impairments, net | ( | ||||||||||
Loss on the sale of businesses | |||||||||||
Interest credited/index credits to contractholder account balances | |||||||||||
Deferred policy acquisition costs and deferred sales inducements | ( | ( | |||||||||
Charges assessed to contractholders for mortality and admin | ( | ( | |||||||||
Non-cash lease costs | |||||||||||
Operating lease payments | ( | ( | |||||||||
Distributions from unconsolidated affiliates, return on investment | |||||||||||
Stock-based compensation cost | |||||||||||
Change in valuation of derivatives, equity and preferred securities, net | |||||||||||
Changes in assets and liabilities, net of effects from acquisitions: | |||||||||||
Change in collateral returned (posted) | ( | ||||||||||
Change in reinsurance recoverable | |||||||||||
Change in future policy benefits | ( | ||||||||||
Change in funds withheld from reinsurers | ( | ||||||||||
Net increase in trade receivables | ( | ( | |||||||||
Net increase in reserve for title claim losses | |||||||||||
Net change in income taxes | ( | ||||||||||
Net change in other assets and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales, calls and maturities of investment securities | |||||||||||
Proceeds from sales of property and equipment and title plants | |||||||||||
Additions to property and equipment and capitalized software | ( | ( | |||||||||
Purchases of investment securities | ( | ( | |||||||||
Net proceeds from (purchases of) sales and maturities of short-term investment securities | |||||||||||
Additions to notes receivable | ( | ||||||||||
Collections of notes receivable | |||||||||||
Acquisitions and dispositions | ( | ( | |||||||||
Additional investments in unconsolidated affiliates | ( | ( | |||||||||
Distributions from unconsolidated affiliates, return of investment | |||||||||||
Proceeds from sales of unconsolidated affiliates | |||||||||||
Net other investing activities | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
FIDELITY NATIONAL FINANCIAL, INC. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||||||||||
(In millions) | |||||||||||
Cash flows from financing activities: | |||||||||||
Borrowings | |||||||||||
Debt offering | |||||||||||
Debt costs/equity issuance additions | ( | ( | |||||||||
Debt service payments | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Subsidiary dividends paid to non-controlling interest shareholders | ( | ( | |||||||||
Exercise of stock options | |||||||||||
Net change in secured trust deposits | |||||||||||
Additional investment in consolidated subsidiaries | ( | ||||||||||
Payment of contingent consideration for prior period acquisitions | ( | ( | |||||||||
Contractholder account deposits | |||||||||||
Contractholder account withdrawals | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Nine months ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(Dollars in millions) | |||||||||||
Beginning balance | $ | $ | |||||||||
Change in insurance recoverable | ( | ( | |||||||||
Claim loss provision related to: | |||||||||||
Current year | |||||||||||
Prior years | |||||||||||
Total title claim loss provision | |||||||||||
Claims paid, net of recoupments related to: | |||||||||||
Current year | ( | ( | |||||||||
Prior years | ( | ( | |||||||||
Total title claims paid, net of recoupments | ( | ( | |||||||||
Ending balance of claim loss reserve for title insurance | $ | $ | |||||||||
Provision for title insurance claim losses as a percentage of title insurance premiums | % | % |
September 30, 2021 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | Carrying Amount | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||
Corporates | |||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||
U.S. Government | |||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Preferred securities | |||||||||||||||||||||||||||||
Derivative investments | |||||||||||||||||||||||||||||
Short term investments | |||||||||||||||||||||||||||||
Other long-term investments | |||||||||||||||||||||||||||||
Total financial assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | |||||||||||||||||||||||||||||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | |||||||||||||||||||||||||||||
Total financial liabilities at fair value | $ | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | Carrying Amount | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||
Corporates | |||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||
U.S. Government | |||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Preferred securities | |||||||||||||||||||||||||||||
Subscription agreements (1) | |||||||||||||||||||||||||||||
Derivative investments | |||||||||||||||||||||||||||||
Short term investments | |||||||||||||||||||||||||||||
Other long-term investments | |||||||||||||||||||||||||||||
Total financial assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Fair value of future policy benefits | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | |||||||||||||||||||||||||||||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | |||||||||||||||||||||||||||||
Total financial liabilities at fair value | $ | $ | $ | $ | $ |
Fair Value at | Valuation Technique | Unobservable Input(s) | Range (Weighted average) | ||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
(in millions) | September 30, 2021 | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Asset-backed securities | $ | Broker-quoted | Offered quotes | ||||||||||||||||||||
Asset-backed securities | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Commercial mortgage-backed securities | Broker-quoted | Offered quotes | |||||||||||||||||||||
Corporates | Broker-quoted | Offered quotes | |||||||||||||||||||||
Corporates | Discounted Cash Flow | Discount Rate | |||||||||||||||||||||
Corporates | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Municipals | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Residential mortgage-backed securities | Broker-quoted | Offered quotes | |||||||||||||||||||||
Foreign governments | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Short-term | Broker-quoted | Offered quotes | ( | ||||||||||||||||||||
Preferred securities | Income-Approach | Yield | |||||||||||||||||||||
Equity securities | Black Scholes model | Risk Free Rate | |||||||||||||||||||||
Strike Price | $ | ||||||||||||||||||||||
Volatility | |||||||||||||||||||||||
Dividend Yield | |||||||||||||||||||||||
Equity securities | Broker Quoted | Offered quotes | |||||||||||||||||||||
Equity securities | Discounted Cash Flow | Discount rate | |||||||||||||||||||||
Market Comparable Company Analysis | EBITDA multiple | ||||||||||||||||||||||
Other long-term assets: | |||||||||||||||||||||||
Available-for-sale embedded derivative | Third-Party Valuation | Market value of fund | |||||||||||||||||||||
Credit Linked Note | Broker-quoted | Offered quotes | |||||||||||||||||||||
Total financial assets at fair value | $ | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | $ | Discounted cash flow | Market value of option | ||||||||||||||||||||
Swap rates | |||||||||||||||||||||||
Mortality multiplier | |||||||||||||||||||||||
Surrender rates | |||||||||||||||||||||||
Partial withdrawals | |||||||||||||||||||||||
Non-performance spread | |||||||||||||||||||||||
Option cost | |||||||||||||||||||||||
Total financial liabilities at fair value | $ |
Fair Value at | Valuation Technique | Unobservable Input(s) | Range (Weighted average) | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
(in millions) | December 31, 2020 | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Asset-backed securities | $ | Broker-quoted | Offered quotes | ||||||||||||||||||||
Asset-backed securities | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Commercial mortgage-backed securities | Broker-quoted | Offered quotes | |||||||||||||||||||||
Corporates | Broker-quoted | Offered quotes | |||||||||||||||||||||
Corporates | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Hybrids | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Municipals | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Residential mortgage-backed securities | Broker-quoted | Offered quotes | |||||||||||||||||||||
Foreign governments | Third-Party Valuation | Offered quotes | |||||||||||||||||||||
Equity securities | Income-Approach | Yield | |||||||||||||||||||||
Equity securities | Black Scholes model | Risk Free Rate | |||||||||||||||||||||
Strike Price | $ | ||||||||||||||||||||||
Volatility | |||||||||||||||||||||||
Dividend Yield | |||||||||||||||||||||||
Equity securities | Discounted Cash Flow | Discount rate | |||||||||||||||||||||
Market Comparable Company Analysis | EBITDA multiple | ||||||||||||||||||||||
Other long-term assets: | |||||||||||||||||||||||
Available-for-sale embedded derivative | Third-Party Valuation | Market value of fund | |||||||||||||||||||||
Credit Linked Note | Broker-quoted | Offered quotes | |||||||||||||||||||||
Total financial assets at fair value | $ | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Future policy benefits | $ | Discounted cash flow | Non-performance spread | ||||||||||||||||||||
Risk margin to reflect uncertainty | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | Discounted cash flow | Market value of option | |||||||||||||||||||||
Treasury rates | |||||||||||||||||||||||
Mortality multiplier | |||||||||||||||||||||||
Surrender rates | |||||||||||||||||||||||
Partial withdrawals | |||||||||||||||||||||||
Non-performance spread | |||||||||||||||||||||||
Option cost | |||||||||||||||||||||||
Total financial liabilities at fair value | $ |
Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Gains (Losses) | Purchases | Sales | Settlements | Net transfer In (Out) of Level 3 (a) | Balance at End of Period | Change in Unrealized Gains (Losses) Incl in OCI | ||||||||||||||||||||||||||||||||||||||||||||||
Included in Earnings | Included in AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and preferred securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale embedded derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit linked note | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at Level 3 fair value | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at Level 3 fair value | $ | $ | ( | $ | $ | $ | $ | $ | $ | $ |
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Gains (Losses) | Purchases | Sales | Settlements | Net transfer In (Out) of Level 3 (a) | Balance at End of Period | Change in Unrealized Gains (Losses) Incl in OCI | ||||||||||||||||||||||||||||||||||||||||||||||
Included in Earnings | Included in AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale embedded derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit linked note | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at Level 3 fair value | $ | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at Level 3 fair value | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Gains (Losses) | Purchases | Sales | Settlements | Net transfer In (Out) of Level 3 (a) | Balance at End of Period | Change in Unrealized Incl in OCI | ||||||||||||||||||||||||||||||||||||||||||||||
Included in Earnings | Included in AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Hybrids | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and preferred securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale embedded derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit linked note | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at Level 3 fair value | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at Level 3 fair value | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Gains (Losses) | Purchases | Sales | Settlements | Net transfer In (Out) of Level 3 (a) | Balance at End of Period | Change in Unrealized Incl in OCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||
F&G Acquisition | Included in Earnings | Included in AOCI | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale embedded derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investment | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit linked note | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at Level 3 fair value | $ | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
FIA embedded derivatives, included in contractholder funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at Level 3 fair value | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2021 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Amount | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
FHLB common stock | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||
Residential mortgage loans | |||||||||||||||||||||||||||||
Policy loans | |||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Company-owned life insurance | |||||||||||||||||||||||||||||
Trade and notes receivables, net of allowance | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Investment contracts, included in contractholder funds | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Amount | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
FHLB common stock | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||
Residential mortgage loans | |||||||||||||||||||||||||||||
Policy loans | |||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Company-owned life insurance | |||||||||||||||||||||||||||||
Trade and notes receivables, net of allowance | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Investment contracts, included in contractholder funds | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Carrying Value After Measurement (in millions) | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
Investments in unconsolidated affiliates (equity method of accounting) | $ | $ | |||||||||
Equity securities (NAV) | |||||||||||
Investments in unconsolidated affiliates (NAV) |
September 30, 2021 | |||||||||||||||||||||||||||||||||||
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Corporates | ( | ||||||||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||||||||
Municipals | ( | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
U.S. Government | ( | ||||||||||||||||||||||||||||||||||
Foreign Governments | ( | ||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Commercial mortgage-backed/asset-backed securities | ( | ||||||||||||||||||||||||||||||||||
Corporates | ( | ( | |||||||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||||||||
Municipals | ( | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
U.S. Government | |||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
September 30, 2021 | |||||||||||
(in millions) | |||||||||||
Amortized Cost | Fair Value | ||||||||||
Corporates, Non-structured Hybrids, Municipal and Government securities: | |||||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due after five years through ten years | |||||||||||
Due after ten years | |||||||||||
Subtotal | |||||||||||
Other securities which provide for periodic payments: | |||||||||||
Asset-backed securities | |||||||||||
Commercial mortgage-backed securities | |||||||||||
Structured hybrids | |||||||||||
Residential mortgage-backed securities | |||||||||||
Subtotal | |||||||||||
Total fixed maturity available-for-sale securities | $ | $ |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Additions | Reductions | ||||||||||||||||||||||||||||
Balance at Beginning of Period | For credit losses on securities for which losses were not previously recorded | For initial credit losses on purchased securities accounted for as PCD financial assets (1) | (Additions) reductions in allowance recorded on previously impaired securities | For securities sold during the period | For securities intended/required to be sold prior to recovery of amortized cost basis | Write-offs charged against the allowance | Recoveries of amounts previously written off | Balance at End of Period | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||
Asset-backed securities | $ | ( | $ | $ | $ | $ | $ | $ | $ | ( | |||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||
Corporates | ( | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||
Total available-for-sale securities | $ | ( | $ | $ | $ | $ | $ | $ | $ | $ | ( |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Additions | Reductions | ||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | For credit losses on securities for which losses were not previously recorded | For initial credit losses on purchased securities accounted for as PCD financial assets (1) | (Additions) reductions in allowance recorded on previously impaired securities | For securities sold during the period | For securities intended/required to be sold prior to recovery of amortized cost basis | Writeoffs charged against the allowance | Recoveries of amounts previously written off | Balance at End of Period | |||||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | ( | $ | ( | — | $ | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Corporates | ( | — | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | ( | $ | ( | $ | ( | $ | $ | — | $ | $ | $ | $ | $ | ( |
Three months ended | Nine months ended | ||||||||||
Purchased credit-deteriorated available-for-sale debt securities | September 30, 2021 | September 30, 2021 | |||||||||
Purchase price | $ | $ | |||||||||
Allowance for credit losses at acquisition | |||||||||||
AFS purchased credit-deteriorated par value | $ | $ | |||||||||
September 30, 2021 | |||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporates | ( | ( | ( | ||||||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||||||||
Municipals | ( | ( | ( | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. Government | ( | ( | |||||||||||||||||||||||||||||||||
Foreign Government | ( | ( | |||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Total number of available-for-sale securities in an unrealized loss position less than twelve months | |||||||||||||||||||||||||||||||||||
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | |||||||||||||||||||||||||||||||||||
Total number of available-for-sale securities in an unrealized loss position |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Corporates | ( | ( | |||||||||||||||||||||||||||||||||
Hybrids | |||||||||||||||||||||||||||||||||||
Municipals | ( | ( | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
U.S. Government | |||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Total number of available-for-sale securities in an unrealized loss position less than twelve months | |||||||||||||||||||||||||||||||||||
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | |||||||||||||||||||||||||||||||||||
Total number of available-for-sale securities in an unrealized loss position |
September 30, 2021 | |||||||||||
Gross Carrying Value | % of Total | ||||||||||
Property Type: | |||||||||||
Hotel | % | ||||||||||
Industrial - General | % | ||||||||||
Industrial - Warehouse | % | ||||||||||
Multifamily | % | ||||||||||
Office | % | ||||||||||
Retail | % | ||||||||||
Other | % | ||||||||||
Student Housing | % | ||||||||||
Total commercial mortgage loans, gross of valuation allowance | $ | % | |||||||||
Allowance for expected credit loss | ( | ||||||||||
Total commercial mortgage loans | $ | ||||||||||
U.S. Region: | |||||||||||
East North Central | $ | % | |||||||||
East South Central | % | ||||||||||
Middle Atlantic | % | ||||||||||
Mountain | % | ||||||||||
New England | % | ||||||||||
Pacific | % | ||||||||||
South Atlantic | % | ||||||||||
West North Central | % | ||||||||||
West South Central | % | ||||||||||
Various | % | ||||||||||
Total commercial mortgage loans, gross of valuation allowance | $ | % | |||||||||
Allowance for expected credit loss | ( | ||||||||||
Total commercial mortgage loans | $ |
December 31, 2020 | |||||||||||
Gross Carrying Value | % of Total | ||||||||||
Property Type: | |||||||||||
Hotel | $ | % | |||||||||
Industrial - General | % | ||||||||||
Industrial - Warehouse | % | ||||||||||
Multifamily | % | ||||||||||
Office | % | ||||||||||
Retail | % | ||||||||||
Other | % | ||||||||||
Total commercial mortgage loans, gross of valuation allowance | $ | % | |||||||||
Allowance for expected credit loss | ( | ||||||||||
Total commercial mortgage loans | $ | ||||||||||
U.S. Region: | |||||||||||
East North Central | $ | % | |||||||||
East South Central | % | ||||||||||
Middle Atlantic | % | ||||||||||
Mountain | % | ||||||||||
New England | % | ||||||||||
Pacific | % | ||||||||||
South Atlantic | % | ||||||||||
West North Central | % | ||||||||||
West South Central | % | ||||||||||
Total commercial mortgage loans, gross of valuation allowance | $ | % | |||||||||
Allowance for expected credit loss | ( | ||||||||||
Total commercial mortgage loans | $ |
Debt-Service Coverage Ratios | Total Amount | % of Total | Estimated Fair Value | % of Total | |||||||||||||||||||||||||||||||||||||
>1.25 | 1.00 - 1.25 | <1.00 | |||||||||||||||||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
LTV Ratios: | |||||||||||||||||||||||||||||||||||||||||
Less than 50% | $ | $ | $ | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
50% to 60% | % | % | |||||||||||||||||||||||||||||||||||||||
60% to 75% | % | % | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | $ | $ | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
LTV Ratios: | |||||||||||||||||||||||||||||||||||||||||
Less than 50% | $ | $ | $ | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
50% to 60% | % | % | |||||||||||||||||||||||||||||||||||||||
60% to 75% | % | % | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | $ | $ | $ | % | $ | % |
September 30, 2021 | |||||||||||
U.S. State: | Unpaid Principal Balance | % of Total | |||||||||
Florida | $ | % | |||||||||
Texas | % | ||||||||||
New Jersey | % | ||||||||||
All Other States (1) | % | ||||||||||
Total residential mortgage loans | $ | % |
December 31, 2020 | |||||||||||
U.S. State: | Unpaid Principal Balance | % of Total | |||||||||
California | $ | % | |||||||||
Florida | % | ||||||||||
New Jersey | % | ||||||||||
All other states | % | ||||||||||
Total residential mortgage loans | $ | % |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Performance indicators: | Carrying Value | % of Total | Carrying Value | % of Total | |||||||||||||||||||
Performing | $ | % | $ | % | |||||||||||||||||||
Non-performing | % | % | |||||||||||||||||||||
Total residential mortgage loans, gross of valuation allowance | $ | % | $ | % | |||||||||||||||||||
Allowance for expected loan loss | ( | % | ( | % | |||||||||||||||||||
Total residential mortgage loans | $ | % | $ | % |
September 30, 2021 | |||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||
Residential mortgages | |||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
30-89 days past due | |||||||||||||||||||||||
Over 90 days past due | |||||||||||||||||||||||
Total residential mortgages | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial mortgages | |||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
30-89 days past due | |||||||||||||||||||||||
Over 90 days past due | |||||||||||||||||||||||
Total commercial mortgages | $ | $ | $ | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||
Residential mortgages | |||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
30-89 days past due | |||||||||||||||||||||||
Over 90 days past due | |||||||||||||||||||||||
Total residential mortgages | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial mortgages | |||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
30-89 days past due | |||||||||||||||||||||||
Over 90 days past due | |||||||||||||||||||||||
Total commercial mortgage | $ | $ | $ | $ | $ | $ | $ |
September 30, 2021 | |||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||
Commercial mortgages | |||||||||||||||||||||||
LTV | |||||||||||||||||||||||
Less than 50% | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
50% to 60% | |||||||||||||||||||||||
60% to 75% | |||||||||||||||||||||||
Total commercial mortgages | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial mortgages | |||||||||||||||||||||||
DSCR | |||||||||||||||||||||||
Greater than 1.25x | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
1.00x - 1.25x | |||||||||||||||||||||||
Less than 1.00x | |||||||||||||||||||||||
Total commercial mortgages | $ | $ | $ | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||
Commercial mortgages | |||||||||||||||||||||||
LTV | |||||||||||||||||||||||
Less than 50% | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
50% to 60% | |||||||||||||||||||||||
60% to 75% | |||||||||||||||||||||||
Total commercial mortgages | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial mortgages | |||||||||||||||||||||||
DSCR | |||||||||||||||||||||||
Greater than 1.25x | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
1.00x - 1.25x | |||||||||||||||||||||||
Less than 1.00x | |||||||||||||||||||||||
Total commercial mortgages | $ | $ | $ | $ | $ | $ | $ |
Amortized cost of loans on non-accrual | September 30, 2021 | December 31, 2020 | |||||||||
Residential mortgage: | $ | $ | |||||||||
Commercial mortgage: | |||||||||||
Total non-accrual loans | $ | $ | |||||||||
Three months ended September 30, 2021 | Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
Residential Mortgage | Commercial Mortgage | Total | Residential Mortgage | Commercial Mortgage | Total | ||||||||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||||||||||||||||||||
Provision for loan losses | ( | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Three months ended September 30, 2020 | Four months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||
Residential Mortgage | Commercial Mortgage | Total | Residential Mortgage | Commercial Mortgage | Total | ||||||||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||||||||||||||||||||
Provision for loan losses | $ | $ | $ | ||||||||||||||||||||||||||||||||
For initial credit losses on purchased loans accounted for as PCD financial assets | |||||||||||||||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Fixed maturity securities, available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Preferred securities | |||||||||||||||||||||||
Mortgage loans | |||||||||||||||||||||||
Invested cash and short-term investments | |||||||||||||||||||||||
Limited partnerships | |||||||||||||||||||||||
Tax deferred property exchange income | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Gross investment income | |||||||||||||||||||||||
Investment expense | ( | ( | ( | ( | |||||||||||||||||||
Interest and investment income | $ | $ | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Net realized gains on fixed maturity available-for-sale securities | $ | $ | $ | $ | |||||||||||||||||||
Net realized/unrealized losses on equity securities (2) | ( | ( | ( | ( | |||||||||||||||||||
Net realized/unrealized (losses) gains on preferred securities (3) | ( | ( | |||||||||||||||||||||
Realized gains (losses) on other invested assets | ( | ( | |||||||||||||||||||||
Change in allowance for expected credit losses | ( | ( | |||||||||||||||||||||
Derivatives and embedded derivatives: | |||||||||||||||||||||||
Realized gains on certain derivative instruments | |||||||||||||||||||||||
Unrealized (losses) gains on certain derivative instruments | ( | ( | |||||||||||||||||||||
Change in fair value of reinsurance related embedded derivatives (1) | ( | ( | |||||||||||||||||||||
Change in fair value of other derivatives and embedded derivatives | |||||||||||||||||||||||
Realized gains on derivatives and embedded derivatives | |||||||||||||||||||||||
Recognized gains and losses, net | $ | ( | $ | $ | $ | ( |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Proceeds | $ | $ | $ | $ | |||||||||||||||||||
Gross gains | |||||||||||||||||||||||
Gross losses | ( | ( | ( | ( |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Value | Maximum Loss Exposure | Carrying Value | Maximum Loss Exposure | ||||||||||||||||||||
Investment in limited partnerships | $ | $ | $ | $ | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Total unconsolidated VIE investments | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Assets: | |||||||||||
Derivative investments: | |||||||||||
Call options | $ | $ | |||||||||
Futures contracts | |||||||||||
Foreign currency forward | |||||||||||
Other long-term investments: | |||||||||||
Other embedded derivatives | |||||||||||
$ | $ |
Liabilities: | |||||||||||
Contractholder funds: | |||||||||||
FIA embedded derivative | $ | $ | |||||||||
Accounts payable and accrued liabilities: | |||||||||||
Reinsurance related embedded derivative | |||||||||||
$ | $ |
Three Months Ended | Nine Months Ended | Four Months Ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Net investment gains (losses): | |||||||||||||||||||||||
Call options | $ | ( | $ | $ | $ | ||||||||||||||||||
Futures contracts | |||||||||||||||||||||||
Foreign currency forward | ( | ( | |||||||||||||||||||||
Other derivatives and embedded derivatives | ( | ||||||||||||||||||||||
Reinsurance related embedded derivatives | ( | ( | |||||||||||||||||||||
Total net investment gains (losses) | $ | $ | $ | $ | |||||||||||||||||||
Benefits and other changes in policy reserves: | |||||||||||||||||||||||
FIA embedded derivatives | $ | ( | $ | $ | $ | ||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||
Counterparty | Credit Rating (Fitch/Moody's/S&P) (1) | Notional Amount | Fair Value | Collateral | Net Credit Risk | ||||||||||||||||||||||||
Merrill Lynch | AA/*/A+ | $ | $ | $ | $ | ||||||||||||||||||||||||
Morgan Stanley | */Aa3/A+ | ||||||||||||||||||||||||||||
Barclay's Bank | A+/A1/A | ||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | AA/Aa2/A+ | ||||||||||||||||||||||||||||
Wells Fargo | A+/A1/BBB+ | ||||||||||||||||||||||||||||
Goldman Sachs | A/A2/BBB+ | ||||||||||||||||||||||||||||
Credit Suisse | A/A1/A+ | ||||||||||||||||||||||||||||
Truist | A+/A2/A | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||||||||
Counterparty | Credit Rating (Fitch/Moody's/S&P) (1) | Notional Amount | Fair Value | Collateral | Net Credit Risk | ||||||||||||||||||||||||
Merrill Lynch | AA-/*/A+ | $ | $ | $ | $ | ||||||||||||||||||||||||
Morgan Stanley | A/A2/BBB+ | ||||||||||||||||||||||||||||
Barclay's Bank | A+/A1/A | ||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | AA/Aa2/A+ | ||||||||||||||||||||||||||||
Wells Fargo | A+/A2/BBB+ | ||||||||||||||||||||||||||||
Goldman Sachs | A/A3/BBB+ | ||||||||||||||||||||||||||||
Credit Suisse | A/Aa3/A+ | ||||||||||||||||||||||||||||
Truist | A+/A2/A | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2021 | |||||
Asset Type | |||||
Unconsolidated VIEs: | |||||
Limited partnerships | $ | ||||
Whole loans | |||||
Fixed Maturity securities, ABS | |||||
Other fixed maturity securities, AFS | |||||
Commercial mortgage loans | |||||
Other assets | |||||
Other invested assets | |||||
Total | $ |
Title | F&G | Corporate and Other | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Title premiums | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Revenues from external customers | |||||||||||||||||||||||
Interest and investment income, including recognized gains and losses, net | ( | ||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates | ( | ||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | $ | $ | ( | $ | ||||||||||||||||||
Assets | $ | $ | $ | $ | |||||||||||||||||||
Goodwill |
Title | F&G | Corporate and Other | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Title premiums | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Revenues from external customers | |||||||||||||||||||||||
Interest and investment income, including recognized gains and losses, net | ( | ||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates | ( | ||||||||||||||||||||||
Equity in earnings (loss) of unconsolidated affiliates | |||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | $ | $ | ( | $ | ||||||||||||||||||
Assets | $ | $ | $ | $ | |||||||||||||||||||
Goodwill |
Title | F&G | Corporate and Other | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Title premiums | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Revenues from external customers | |||||||||||||||||||||||
Interest and investment income, including recognized gains and losses, net | ( | ||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates | ( | ||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | $ | $ | ( | $ | ||||||||||||||||||
Assets | $ | $ | $ | $ | |||||||||||||||||||
Goodwill |
Title | F&G | Corporate and Other | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Title premiums | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Revenues from external customers | |||||||||||||||||||||||
Interest and investment income, including recognized gains and losses, net | ( | ( | |||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | |||||||||||||||||||||
Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates | ( | ||||||||||||||||||||||
Equity in earnings (loss) of unconsolidated affiliates | |||||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Assets | $ | $ | $ | $ | |||||||||||||||||||
Goodwill |
Nine months ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash paid for: | ||||||||||||||
Interest | $ | $ | ||||||||||||
Income taxes | ||||||||||||||
Deferred sales inducements | ||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Equity financing associated with the acquisition of F&G | $ | $ | ||||||||||||
Change in proceeds of sales of investments available for sale receivable in period | ( | ( | ||||||||||||
Change in purchases of investments available for sale payable in period | ||||||||||||||
Lease liabilities recognized in exchange for lease right-of-use assets | ||||||||||||||
Remeasurement of lease liabilities | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Revenue Stream | Income Statement Classification | Segment | Total Revenue | |||||||||||||||||||||||||||||||||||
Revenue from insurance contracts: | (in millions) | |||||||||||||||||||||||||||||||||||||
Direct title insurance premiums | Direct title insurance premiums | Title | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Agency title insurance premiums | Agency title insurance premiums | Title | ||||||||||||||||||||||||||||||||||||
Life insurance premiums, insurance and investment product fees, and other | Escrow, title-related and other fees | F&G | ||||||||||||||||||||||||||||||||||||
Home warranty | Escrow, title-related and other fees | Title | ||||||||||||||||||||||||||||||||||||
Total revenue from insurance contracts | ||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Escrow fees | Escrow, title-related and other fees | Title | ||||||||||||||||||||||||||||||||||||
Other title-related fees and income | Escrow, title-related and other fees | Title | ||||||||||||||||||||||||||||||||||||
ServiceLink, excluding title premiums, escrow fees, and subservicing fees | Escrow, title-related and other fees | Title | ||||||||||||||||||||||||||||||||||||
Real estate technology | Escrow, title-related and other fees | Corporate and other | ||||||||||||||||||||||||||||||||||||
Real estate brokerage | Escrow, title-related and other fees | Corporate and other | ||||||||||||||||||||||||||||||||||||
Other | Escrow, title-related and other fees | Corporate and other | ||||||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||||||||||||||||||||||||
Other revenue: | ||||||||||||||||||||||||||||||||||||||
Loan subservicing revenue | Escrow, title-related and other fees | Title | ||||||||||||||||||||||||||||||||||||
Interest and investment income | Interest and investment income | Various | ||||||||||||||||||||||||||||||||||||
Recognized gains and losses, net | Recognized gains and losses, net | Various | ( | ( | ||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(In millions) | |||||||||||
Trade receivables | $ | $ | |||||||||
Deferred revenue (contract liabilities) |
VOBA | DAC | DSI | Total | ||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Deferrals | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Interest | |||||||||||||||||||||||
Unlocking | ( | ( | ( | ||||||||||||||||||||
Adjustment for net unrealized investment losses (gains) | ( | ( | |||||||||||||||||||||
Purchase price allocation adjustments | |||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | |||||||||||||||||||
VOBA | DAC | DSI | Total | ||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | |||||||||||||||||||
F&G acquisition | |||||||||||||||||||||||
Deferrals | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Interest | |||||||||||||||||||||||
Unlocking | ( | ( | |||||||||||||||||||||
Adjustment for net unrealized investment (gains) losses | ( | ( | ( | ( | |||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ |
Estimated Amortization Expense | |||||
Fiscal Year | |||||
2021 | $ | ( | |||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter |
Three months ended | Nine months ended | Four months ended | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Premiums Earned | Net Benefits Incurred | Net Premiums Earned | Net Benefits Incurred | Net Premiums Earned | Net Benefits Incurred | Net Premiums Earned | Net Benefits Incurred | |||||||||||||||||||||||||||||||||||||||||||
Direct | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Ceded | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net | $ | $ | $ | $ | $ | $ | $ | $ |
Cash paid for outstanding F&G shares | $ | ||||
Less: Cash Acquired | |||||
Net cash paid for F&G | |||||
Value of FNF share consideration | |||||
Value of outstanding converted equity awards attributed to services already rendered | |||||
Total net consideration paid | $ |
Fair Value | |||||
Fixed maturity securities | $ | ||||
Preferred securities | |||||
Equity securities | |||||
Derivative instruments | |||||
Mortgage loans | |||||
Investments in unconsolidated affiliates | |||||
Other long-term investments | |||||
Short-term investments | |||||
Trade and notes receivable | |||||
Reinsurance recoverable | |||||
Goodwill | |||||
Prepaid expenses and other assets | |||||
Lease assets | |||||
Other intangible assets | |||||
Deferred tax asset | |||||
Assets of discontinued operations | |||||
Total assets acquired | |||||
Contractholder funds | |||||
Future policy benefits | |||||
Accounts payable and accrued liabilities | |||||
Notes payable | |||||
Funds withheld for reinsurance liabilities | |||||
Lease liabilities | |||||
Liabilities of discontinued operations | |||||
Total liabilities assumed | |||||
Net assets acquired | $ |
Gross Carrying Value | Weighted Average Estimated Useful Life (in years) | ||||||||||
Other intangible assets: | |||||||||||
Value of business acquired | $ | Various | |||||||||
Value of distribution network acquired | |||||||||||
Trademarks and licenses | |||||||||||
Software | |||||||||||
Total Other intangible assets | |||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
(In millions) | ||||||||||||||
$ | $ | |||||||||||||
Revolving Credit Facility | ( | ( | ||||||||||||
$ | $ |
Gross principal maturities of notes payable at September 30, 2021 are as follows (in millions): | |||||
2021 (remaining) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
$ |
2023 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Purchase transactions | $ | 1.8 | $ | 1.7 | $ | 1.6 | $ | 1.5 | ||||||||||||||||||
Refinance transactions | $ | 0.7 | $ | 0.9 | $ | 2.2 | $ | 2.6 | ||||||||||||||||||
Total U.S. mortgage originations forecast | $ | 2.5 | $ | 2.6 | $ | 3.8 | $ | 4.1 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Direct title insurance premiums | $ | 896 | $ | 733 | $ | 2,546 | $ | 1,854 | |||||||||||||||
Agency title insurance premiums | 1,318 | 981 | 3,632 | 2,497 | |||||||||||||||||||
Escrow, title-related and other fees | 1,324 | 853 | 3,123 | 2,201 | |||||||||||||||||||
Interest and investment income | 508 | 336 | 1,424 | 541 | |||||||||||||||||||
Recognized gains and losses, net | (154) | 73 | 121 | (85) | |||||||||||||||||||
Total revenues | 3,892 | 2,976 | 10,846 | 7,008 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Benefits and other changes in policy reserves | 185 | 251 | 734 | 406 | |||||||||||||||||||
Personnel costs | 894 | 782 | 2,596 | 2,088 | |||||||||||||||||||
Agent commissions | 1,010 | 749 | 2,787 | 1,907 | |||||||||||||||||||
Other operating expenses | 498 | 449 | 1,432 | 1,306 | |||||||||||||||||||
Depreciation and amortization | 252 | 100 | 540 | 189 | |||||||||||||||||||
Provision for title claim losses | 100 | 77 | 278 | 196 | |||||||||||||||||||
Interest expense | 27 | 29 | 83 | 62 | |||||||||||||||||||
Total expenses | 2,966 | 2,437 | 8,450 | 6,154 | |||||||||||||||||||
Earnings before income taxes and equity in earnings of unconsolidated affiliates | 926 | 539 | 2,396 | 854 | |||||||||||||||||||
Income tax expense | 213 | 133 | 555 | 194 | |||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 27 | 7 | 54 | 9 | |||||||||||||||||||
Net earnings from continuing operations | $ | 740 | $ | 413 | $ | 1,895 | $ | 669 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Direct title insurance premiums | $ | 896 | $ | 733 | $ | 2,546 | $ | 1,854 | |||||||||||||||
Agency title insurance premiums | 1,318 | 981 | 3,632 | 2,497 | |||||||||||||||||||
Escrow, title-related and other fees | 849 | 742 | 2,433 | 2,007 | |||||||||||||||||||
Interest and investment income | 27 | 31 | 83 | 120 | |||||||||||||||||||
Recognized gains and losses, net | (169) | (3) | (258) | (147) | |||||||||||||||||||
Total revenues | 2,921 | 2,484 | 8,436 | 6,331 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Personnel costs | 838 | 726 | 2,418 | 1,992 | |||||||||||||||||||
Agent commissions | 1,010 | 749 | 2,787 | 1,907 | |||||||||||||||||||
Other operating expenses | 451 | 386 | 1,281 | 1,140 | |||||||||||||||||||
Depreciation and amortization | 36 | 39 | 103 | 113 | |||||||||||||||||||
Provision for title claim losses | 100 | 77 | 278 | 196 | |||||||||||||||||||
Interest expense | — | — | — | 1 | |||||||||||||||||||
Total expenses | 2,435 | 1,977 | 6,867 | 5,349 | |||||||||||||||||||
Earnings (loss) from continuing operations, before income taxes and equity in earnings of unconsolidated affiliates | $ | 486 | $ | 507 | $ | 1,569 | $ | 982 | |||||||||||||||
Orders opened by direct title operations (in thousands) | 688 | 847 | 2,153 | 2,222 | |||||||||||||||||||
Orders closed by direct title operations (in thousands) | 527 | 571 | 1,692 | 1,435 | |||||||||||||||||||
Fee per file (in dollars) | $ | 2,581 | $ | 2,063 | $ | 2,310 | $ | 2,046 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||||||||||||||||||||||||
2021 | Total | 2020 | Total | 2021 | Total | 2020 | Total | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Title premiums from direct operations | $ | 896 | 40 | % | $ | 733 | 43 | % | $ | 2,546 | 41 | % | $ | 1,854 | 43 | % | |||||||||||||||||||||||||||||||
Title premiums from agency operations | 1,318 | 60 | 981 | 57 | 3,632 | 59 | 2,497 | 57 | |||||||||||||||||||||||||||||||||||||||
Total title premiums | $ | 2,214 | 100 | % | $ | 1,714 | 100 | % | $ | 6,178 | 100 | % | $ | 4,351 | 100 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Opened title insurance orders from purchase transactions (1) | 50 | % | 40 | % | 48 | % | 39 | % | |||||||||||||||
Opened title insurance orders from refinance transactions (1) | 50 | 60 | 52 | 61 | |||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Closed title insurance orders from purchase transactions (1) | 50 | % | 42 | % | 43 | % | 41 | % | |||||||||||||||
Closed title insurance orders from refinance transactions (1) | 50 | 58 | 57 | 59 | |||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | % | 2020 | % | 2021 | % | 2020 | % | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Agent premiums | $ | 1,318 | 100 | % | $ | 981 | 100 | % | $ | 3,632 | 100 | % | $ | 2,497 | 100 | % | |||||||||||||||||||||||||||||||
Agent commissions | 1,010 | 77 | % | 749 | 76 | % | 2,787 | 77 | % | 1,907 | 76 | % | |||||||||||||||||||||||||||||||||||
Net retained agent premiums | $ | 308 | 23 | % | $ | 232 | 24 | % | $ | 845 | 23 | % | $ | 590 | 24 | % |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Life insurance premiums and other fees (a) | $ | 431 | $ | 60 | $ | 557 | $ | 80 | |||||||||||||||
Interest and investment income | 481 | 305 | 1,341 | 416 | |||||||||||||||||||
Recognized gains and losses, net | 15 | 77 | 370 | 70 | |||||||||||||||||||
Total revenues | 927 | 442 | 2,268 | 566 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Benefits and other changes in policy reserves | 185 | 251 | 734 | 406 | |||||||||||||||||||
Personnel costs | 32 | 23 | 93 | 32 | |||||||||||||||||||
Other operating expenses | 22 | 33 | 76 | 45 | |||||||||||||||||||
Depreciation and amortization | 210 | 56 | 419 | 59 | |||||||||||||||||||
Interest expense | 6 | 7 | 21 | 10 | |||||||||||||||||||
Total expenses | 455 | 370 | 1,343 | 552 | |||||||||||||||||||
Earnings from continuing operations, before income taxes | 472 | 72 | 925 | 14 | |||||||||||||||||||
Income tax (expense) benefit | (96) | (6) | (189) | 8 | |||||||||||||||||||
Net earnings from continuing operations | $ | 376 | $ | 66 | $ | 736 | $ | 22 | |||||||||||||||
(Losses) earnings from discontinued operations, net of tax | (3) | (28) | 8 | (23) | |||||||||||||||||||
Net earnings attributable to common shareholders | $ | 373 | $ | 38 | $ | 744 | $ | (1) | |||||||||||||||
(a) Included within Escrow, title-related and other fees in Condensed Consolidated Statements of Earnings |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Fixed index annuities (FIA) | $ | 1,073 | $ | 815 | $ | 3,255 | $ | 2,512 | |||||||||||||||
Fixed rate annuities (MYGA) | 458 | 253 | 1,437 | 414 | |||||||||||||||||||
Total annuity | 1,531 | 1,068 | 4,692 | 2,926 | |||||||||||||||||||
Index universal life (IUL) | 24 | 14 | 59 | 37 | |||||||||||||||||||
Funding agreements (FABN/FHLB) | 1,150 | — | 2,275 | 100 | |||||||||||||||||||
Pension risk transfer (PRT) | 371 | — | 371 | — | |||||||||||||||||||
Flow reinsurance | — | 51 | — | 315 | |||||||||||||||||||
Total sales | $ | 3,076 | $ | 1,133 | $ | 7,397 | $ | 3,378 | |||||||||||||||
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Traditional life insurance premiums | $ | 6 | $ | 6 | $ | 14 | $ | 8 | |||||||||||||||
Life-contingent immediate annuity premiums | 4 | 5 | 12 | 8 | |||||||||||||||||||
Life-contingent pension risk transfer | 371 | — | 371 | — | |||||||||||||||||||
Surrender charges | 7 | 4 | 25 | 6 | |||||||||||||||||||
Cost of insurance fees and other income | 43 | 45 | 135 | 58 | |||||||||||||||||||
Life insurance premiums and other fees | $ | 431 | $ | 60 | $ | 557 | $ | 80 |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Fixed maturity securities, available-for-sale | $ | 300 | $ | 271 | $ | 903 | $ | 370 | |||||||||||||||
Equity securities | 12 | 12 | 40 | 24 | |||||||||||||||||||
Mortgage loans | 34 | 24 | 90 | 31 | |||||||||||||||||||
Other investments | 177 | 29 | 429 | 32 | |||||||||||||||||||
Gross investment income | 523 | 336 | 1,462 | 457 | |||||||||||||||||||
Investment expense | (42) | (31) | (121) | (41) | |||||||||||||||||||
Interest and investment income | $ | 481 | $ | 305 | $ | 1,341 | $ | 416 | |||||||||||||||
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Yield on AAUM (at amortized cost) | 5.89 | % | 4.52 | % | 5.82 | % | 4.64 | % | |||||||||||||||
Alternative investment yield adjustment | (1.23) | % | 0.13 | % | (1.09) | % | 0.20 | % | |||||||||||||||
Adjusted yield on AAUM | 4.66 | % | 4.65 | % | 4.73 | % | 4.84 | % | |||||||||||||||
Less: Interest credited and option cost | (1.81) | % | (2.03) | % | (1.95) | % | (2.00) | % | |||||||||||||||
Net investment spread | 2.85 | % | 2.62 | % | 2.78 | % | 2.84 | % | |||||||||||||||
AAUM | $ | 32,692 | $ | 26,990 | $ | 30,706 | $ | 26,898 |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Net realized and unrealized gains (losses) on fixed maturity available-for-sale securities, equity securities and other invested assets | $ | (6) | $ | 50 | $ | 58 | $ | 59 | |||||||||||||||
Change in allowance for expected credit losses | 1 | (7) | 3 | (17) | |||||||||||||||||||
Net realized and unrealized gains (losses) on certain derivatives instruments | (3) | 46 | 284 | 60 | |||||||||||||||||||
Change in fair value of reinsurance related embedded derivatives | 23 | (14) | 23 | (35) | |||||||||||||||||||
Change in fair value of other derivatives and embedded derivatives | — | 2 | 2 | 3 | |||||||||||||||||||
Recognized gains and losses, net | $ | 15 | $ | 77 | $ | 370 | $ | 70 |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Call Options: | |||||||||||||||||||||||
Gains on option expiration | $ | 134 | $ | 24 | $ | 303 | $ | 26 | |||||||||||||||
Change in unrealized (losses) gains | (140) | 19 | (30) | 29 | |||||||||||||||||||
Futures contracts: | |||||||||||||||||||||||
Gains on futures contracts expiration | — | 9 | 8 | 17 | |||||||||||||||||||
Change in unrealized losses | — | (2) | (4) | (8) | |||||||||||||||||||
Foreign currency forward: | |||||||||||||||||||||||
Gains (losses) on foreign currency forward | 3 | (4) | 7 | (4) | |||||||||||||||||||
Total net change in fair value | $ | (3) | $ | 46 | $ | 284 | $ | 60 | |||||||||||||||
Annual Point-to-Point Change in S&P 500 Index during the period | 1 | % | 9 | % | 16 | % | 10 | % |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Average Crediting Rate | 6 | % | 3 | % | 5 | % | 2 | % | |||||||||||||||
S&P 500 Index: | |||||||||||||||||||||||
Point-to-point strategy | 4 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||
Monthly average strategy | 4 | % | 2 | % | 3 | % | 3 | % | |||||||||||||||
Monthly point-to-point strategy | 11 | % | — | % | 7 | % | — | % | |||||||||||||||
3 year high water mark | 19 | % | 21 | % | 14 | % | 20 | % |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
FIA embedded derivative impact | $ | (547) | $ | 57 | $ | (611) | $ | 126 | |||||||||||||||
Index credits, interest credited & bonuses | 289 | 133 | 725 | 174 | |||||||||||||||||||
Annuity payments | 312 | (1) | 399 | 11 | |||||||||||||||||||
Other | 131 | 62 | 221 | 95 | |||||||||||||||||||
Total benefits and other changes in policy reserves | $ | 185 | $ | 251 | $ | 734 | $ | 406 |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Amortization of DAC, VOBA, and DSI | $ | 204 | $ | 58 | $ | 436 | $ | 61 | |||||||||||||||
Interest | (12) | (9) | (32) | (12) | |||||||||||||||||||
Unlocking | 18 | 1 | 1 | 1 | |||||||||||||||||||
Amortization of other intangible assets and other depreciation | $ | — | $ | 6 | $ | 14 | $ | 9 | |||||||||||||||
Total depreciation and amortization | $ | 210 | $ | 56 | $ | 419 | $ | 59 |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Income before taxes | $ | 472 | $ | 72 | $ | 925 | $ | 14 | |||||||||||||||
Income tax expense before valuation allowance | 96 | 14 | 203 | 1 | |||||||||||||||||||
Change in valuation allowance | — | (8) | (14) | (9) | |||||||||||||||||||
Federal income tax expense (benefit) | $ | 96 | $ | 6 | $ | 189 | $ | (8) | |||||||||||||||
Effective rate | 20 | % | 8 | % | 20 | % | (57) | % |
Three months ended | Nine months ended | Four months ended | |||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
Net earnings from continuing operations attributable to common shareholders | $ | 376 | $ | 66 | $ | 736 | $ | 22 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Recognized gains and losses, net | (98) | (15) | (243) | 31 | |||||||||||||||||||
Indexed product related derivatives | 26 | 14 | (84) | 57 | |||||||||||||||||||
Purchase price amortization | 7 | 7 | 20 | 9 | |||||||||||||||||||
Transaction costs | 1 | 10 | 5 | 17 | |||||||||||||||||||
Other non-recurring items (a) | (284) | — | (284) | — | |||||||||||||||||||
Income taxes on non-GAAP adjustments | 73 | (8) | 121 | (29) | |||||||||||||||||||
Adjusted net earnings from continuing operations attributable to common shareholders | $ | 101 | $ | 74 | $ | 271 | $ | 107 | |||||||||||||||
Notable items included in adjusted net earnings attributable to common shareholders (discussed below) | $ | 27 | $ | 10 | $ | 61 | $ | (9) | |||||||||||||||
(a) Reflects adjustments to benefits and other changes in policy reserves and depreciation and amortization resulting from the implementation of a new actuarial valuation system |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Fair Value | Percent | Fair Value | Percent | |||||||||||||||||||||||
Fixed maturity securities, available for sale: | ||||||||||||||||||||||||||
United States Government full faith and credit | $ | 472 | 1 | % | $ | 45 | — | % | ||||||||||||||||||
United States Government sponsored entities | 85 | — | % | 106 | — | % | ||||||||||||||||||||
United States municipalities, states and territories | 1,301 | 4 | % | 1,309 | 4 | % | ||||||||||||||||||||
Foreign Governments | 137 | 1 | % | 140 | — | % | ||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||
Finance, insurance and real estate | 4,758 | 13 | % | 4,572 | 15 | % | ||||||||||||||||||||
Manufacturing, construction and mining | 920 | 3 | % | 936 | 3 | % | ||||||||||||||||||||
Utilities, energy and related sectors | 2,764 | 9 | % | 2,762 | 9 | % | ||||||||||||||||||||
Wholesale/retail trade | 2,345 | 6 | % | 2,106 | 7 | % | ||||||||||||||||||||
Services, media and other | 3,032 | 8 | % | 2,793 | 9 | % | ||||||||||||||||||||
Hybrid securities | 893 | 2 | % | 963 | 3 | % | ||||||||||||||||||||
Non-agency residential mortgage-backed securities | 646 | 2 | % | 694 | 2 | % | ||||||||||||||||||||
Commercial mortgage-backed securities | 3,006 | 8 | % | 2,806 | 9 | % | ||||||||||||||||||||
Asset-backed securities | 3,830 | 11 | % | 1,999 | 6 | % | ||||||||||||||||||||
Collateral loan obligations ("CLO") | 4,361 | 12 | % | 4,268 | 14 | % | ||||||||||||||||||||
Total fixed maturity available for sale securities | 28,550 | 80 | % | 25,499 | 81 | % | ||||||||||||||||||||
Alternative investments: | ||||||||||||||||||||||||||
Private equity | 933 | 2 | % | 614 | 2 | % | ||||||||||||||||||||
Real assets | 321 | 1 | % | 288 | 1 | % | ||||||||||||||||||||
Credit | 768 | 2 | % | 254 | 1 | % | ||||||||||||||||||||
Equity securities (a) | 1,026 | 2 | % | 1,047 | 3 | % | ||||||||||||||||||||
Commercial mortgage loans | 2,011 | 5 | % | 926 | 3 | % | ||||||||||||||||||||
Residential mortgage loans | 1,473 | 4 | % | 1,123 | 4 | % | ||||||||||||||||||||
Other (primarily derivatives and company owned life insurance) | 1,035 | 3 | % | 997 | 4 | % | ||||||||||||||||||||
Short term investments | 258 | 1 | % | 456 | 1 | % | ||||||||||||||||||||
Total investments | $ | 36,375 | 100 | % | $ | 31,204 | 100 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Rating | Fair Value | Percent | Fair Value | Percent | ||||||||||||||||||||||
AAA | $ | 982 | 3 | % | $ | 488 | 2 | % | ||||||||||||||||||
AA | 1,921 | 7 | % | 1,590 | 6 | % | ||||||||||||||||||||
A | 7,273 | 25 | % | 7,040 | 28 | % | ||||||||||||||||||||
BBB | 9,804 | 34 | % | 9,669 | 38 | % | ||||||||||||||||||||
Not rated (b) | 5,869 | 21 | % | 4,336 | 17 | % | ||||||||||||||||||||
Total investment grade | 25,849 | 90 | % | 23,123 | 91 | % | ||||||||||||||||||||
BB | 1,621 | 6 | % | 1,493 | 6 | % | ||||||||||||||||||||
B and below (a) | 565 | 2 | % | 612 | 2 | % | ||||||||||||||||||||
Not rated (b) | 515 | 2 | % | 271 | 1 | % | ||||||||||||||||||||
Total below investment grade | 2,701 | 10 | % | 2,376 | 9 | % | ||||||||||||||||||||
Total | $ | 28,550 | 100 | % | $ | 25,499 | 100 | % |
NAIC Designation | NRSRO Equivalent Rating | |||||||
1 | AAA/AA/A | |||||||
2 | BBB | |||||||
3 | BB | |||||||
4 | B | |||||||
5 | CCC and lower | |||||||
6 | In or near default |
September 30, 2021 | ||||||||||||||||||||
NAIC Designation | Amortized Cost | Fair Value | Percent of Total Fair Value | |||||||||||||||||
1 | $ | 14,367 | $ | 14,770 | 52 | % | ||||||||||||||
2 | 10,140 | 10,899 | 38 | % | ||||||||||||||||
3 | 1,667 | 1,927 | 7 | % | ||||||||||||||||
4 | 651 | 747 | 2 | % | ||||||||||||||||
5 | 136 | 149 | 1 | % | ||||||||||||||||
6 | 59 | 58 | — | % | ||||||||||||||||
Total | $ | 27,020 | $ | 28,550 | 100 | % | ||||||||||||||
December 31, 2020 | ||||||||||||||||||||
NAIC Designation | Amortized Cost | Fair Value | Percent of Total Fair Value | |||||||||||||||||
1 | $ | 11,696 | $ | 12,370 | 49 | % | ||||||||||||||
2 | 9,753 | 10,659 | 42 | % | ||||||||||||||||
3 | 1,373 | 1,595 | 6 | % | ||||||||||||||||
4 | 616 | 700 | 3 | % | ||||||||||||||||
5 | 162 | 174 | — | % | ||||||||||||||||
6 | 1 | 1 | — | % | ||||||||||||||||
Total | $ | 23,601 | $ | 25,499 | 100 | % | ||||||||||||||
September 30, 2021 | ||||||||||||||
Top 10 Industry Concentration | Fair Value | Percent of Total Fair Value | ||||||||||||
CLO securities | $ | 4,361 | 15 | % | ||||||||||
ABS Other | 3,830 | 13 | % | |||||||||||
Banking | 2,618 | 9 | % | |||||||||||
Whole loan collateralized mortgage obligation ("CMO") | 2,556 | 9 | % | |||||||||||
Life insurance | 1,770 | 6 | % | |||||||||||
Electric | 1,565 | 5 | % | |||||||||||
Municipal | 1,301 | 3 | % | |||||||||||
Technology | 859 | 3 | % | |||||||||||
Healthcare | 790 | 3 | % | |||||||||||
CMBS | 783 | 3 | % | |||||||||||
Total | $ | 20,433 | 69 | % | ||||||||||
December 31, 2020 | ||||||||||||||
Top 10 Industry Concentration | Fair Value | Percent of Total Fair Value | ||||||||||||
CLO securities | $ | 4,268 | 16 | % | ||||||||||
Banking | 2,592 | 10 | % | |||||||||||
Whole loan collateralized mortgage obligation ("CMO") | 2,343 | 9 | % | |||||||||||
ABS other | 1,873 | 7 | % | |||||||||||
Life insurance | 1,657 | 6 | % | |||||||||||
Electric | 1,548 | 6 | % | |||||||||||
Municipal | 1,308 | 5 | % | |||||||||||
CMBS | 795 | 3 | % | |||||||||||
Technology | 784 | 3 | % | |||||||||||
Healthcare | 658 | 2 | % | |||||||||||
Total | $ | 17,826 | 67 | % | ||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
(In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Corporate, Non-structured Hybrids, Municipal and Government securities: | |||||||||||||||||||||||
Due in one year or less | $ | 84 | $ | 85 | $ | 111 | $ | 112 | |||||||||||||||
Due after one year through five years | 1,523 | 1,572 | 1,055 | 1,107 | |||||||||||||||||||
Due after five years through ten years | 2,373 | 2,451 | 1,808 | 1,918 | |||||||||||||||||||
Due after ten years | 11,818 | 12,514 | 11,436 | 12,489 | |||||||||||||||||||
Subtotal | $ | 15,798 | $ | 16,622 | $ | 14,410 | $ | 15,626 | |||||||||||||||
Other securities which provide for periodic payments: | |||||||||||||||||||||||
Asset-backed securities | $ | 3,752 | $ | 3,830 | $ | 1,920 | $ | 1,999 | |||||||||||||||
CLO securities | 4,164 | 4,361 | 4,021 | 4,268 | |||||||||||||||||||
Commercial-mortgage-backed securities | 2,602 | 3,007 | 2,468 | 2,806 | |||||||||||||||||||
Residential mortgage-backed securities | 704 | 730 | 782 | 800 | |||||||||||||||||||
Subtotal | $ | 11,222 | $ | 11,928 | $ | 9,191 | $ | 9,873 | |||||||||||||||
Total fixed maturity available-for-sale securities | $ | 27,020 | $ | 28,550 | $ | 23,601 | $ | 25,499 |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
NAIC Designation: | Fair Value | Percent of Total | Fair Value | Percent of Total | ||||||||||||||||||||||
1 | $ | 126 | 93 | % | $ | 153 | 94 | % | ||||||||||||||||||
2 | 2 | 1 | % | 1 | 1 | % | ||||||||||||||||||||
3 | 2 | 1 | % | 2 | 1 | % | ||||||||||||||||||||
4 | 5 | 4 | % | 3 | 2 | % | ||||||||||||||||||||
5 | 1 | 1 | % | 3 | 2 | % | ||||||||||||||||||||
6 | — | — | % | — | — | % | ||||||||||||||||||||
Total | $ | 136 | 100 | % | $ | 162 | 100 | % | ||||||||||||||||||
NRSRO: | ||||||||||||||||||||||||||
AAA | $ | 1 | 1 | % | $ | 1 | 1 | % | ||||||||||||||||||
AA | 16 | 12 | % | 4 | 2 | % | ||||||||||||||||||||
A | 5 | 4 | % | 17 | 10 | % | ||||||||||||||||||||
BBB | 14 | 10 | % | 17 | 10 | % | ||||||||||||||||||||
Not rated - Above investment grade (a) | 18 | 13 | % | 19 | 12 | % | ||||||||||||||||||||
BB and below | 82 | 60 | % | 104 | 65 | % | ||||||||||||||||||||
Total | $ | 136 | 100 | % | $ | 162 | 100 | % | ||||||||||||||||||
Vintage: | ||||||||||||||||||||||||||
2007 | 33 | 24 | % | 37 | 23 | % | ||||||||||||||||||||
2006 | 36 | 26 | % | 43 | 27 | % | ||||||||||||||||||||
2005 and prior | 67 | 50 | % | 82 | 50 | % | ||||||||||||||||||||
Total | $ | 136 | 100 | % | $ | 162 | 100 | % |
September 30, 2021 | |||||||||||||||||||||||||||||
Number of securities | Amortized Cost | Allowance for Expected Credit Losses | Unrealized Losses | Fair Value | |||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
United States Government full faith and credit | $ | 8 | $ | 472 | $ | — | $ | (7) | $ | 465 | |||||||||||||||||||
United States Government sponsored agencies | 26 | 24 | — | — | 24 | ||||||||||||||||||||||||
United States municipalities, states and territories | 32 | 294 | — | (9) | 285 | ||||||||||||||||||||||||
Foreign Governments | 1 | 8 | — | — | 8 | ||||||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||||||
Finance, insurance and real estate | 146 | 955 | — | (28) | 927 | ||||||||||||||||||||||||
Manufacturing, construction and mining | 38 | 170 | — | (3) | 167 | ||||||||||||||||||||||||
Utilities, energy and related sectors | 103 | 949 | — | (36) | 913 | ||||||||||||||||||||||||
Wholesale/retail trade | 139 | 1,058 | — | (35) | 1,023 | ||||||||||||||||||||||||
Services, media and other | 160 | 1,265 | — | (47) | 1,218 | ||||||||||||||||||||||||
Hybrid securities | 1 | 2 | — | — | 2 | ||||||||||||||||||||||||
Non-agency residential mortgage backed securities | 29 | 58 | (2) | (1) | 55 | ||||||||||||||||||||||||
Commercial mortgage backed securities | 43 | 267 | (1) | (5) | 261 | ||||||||||||||||||||||||
Asset backed securities | 197 | 1,599 | — | (15) | 1,584 | ||||||||||||||||||||||||
Total fixed maturity available for sale securities | 923 | 7,121 | (3) | (186) | 6,932 | ||||||||||||||||||||||||
Equity securities | 8 | 122 | — | (11) | 111 | ||||||||||||||||||||||||
Total investments | $ | 931 | $ | 7,243 | $ | (3) | $ | (197) | $ | 7,043 | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Number of securities | Amortized Cost | Allowance for Expected Credit Losses | Unrealized Losses | Fair Value | |||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
United States Government full faith and credit | $ | 4 | $ | 5 | $ | — | $ | — | $ | 5 | |||||||||||||||||||
United States Government sponsored agencies | 11 | 23 | — | — | 23 | ||||||||||||||||||||||||
United States municipalities, states and territories | 14 | 117 | — | (2) | 115 | ||||||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||||||
Finance, insurance and real estate | 21 | 347 | — | (3) | 344 | ||||||||||||||||||||||||
Utilities, energy and related sectors | 12 | 185 | — | (3) | 182 | ||||||||||||||||||||||||
Wholesale/retail trade | 11 | 86 | — | (1) | 85 | ||||||||||||||||||||||||
Services, media and other | 13 | 221 | — | (7) | 214 | ||||||||||||||||||||||||
Hybrid securities | 1 | 1 | — | — | 1 | ||||||||||||||||||||||||
Non-agency residential mortgage backed securities | 29 | 32 | (1) | (1) | 30 | ||||||||||||||||||||||||
Commercial mortgage backed securities | 19 | 51 | — | (3) | 48 | ||||||||||||||||||||||||
Asset backed securities | 66 | 517 | — | (18) | 499 | ||||||||||||||||||||||||
Total fixed maturity available for sale securities | 201 | 1,585 | (1) | (38) | 1,546 | ||||||||||||||||||||||||
Equity securities | 1 | 16 | — | — | 16 | ||||||||||||||||||||||||
Total investments | $ | 202 | $ | 1,601 | $ | (1) | $ | (38) | $ | 1,562 | |||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||
Number of securities | Amortized Cost | Fair Value | Allowance for Credit Loss | Gross Unrealized Losses | |||||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||||||||
Less than six months | 2 | $ | 18 | $ | 17 | $ | — | $ | (1) | ||||||||||||||||||||
Six months or more and less than twelve months | 6 | 132 | 127 | — | (5) | ||||||||||||||||||||||||
Twelve months or greater | — | — | — | — | — | ||||||||||||||||||||||||
Total investment grade | 8 | 150 | 144 | — | (6) | ||||||||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||||||||
Less than six months | — | — | — | — | — | ||||||||||||||||||||||||
Six months or more and less than twelve months | 4 | 46 | 42 | — | (4) | ||||||||||||||||||||||||
Twelve months or greater | 2 | 12 | 9 | — | (3) | ||||||||||||||||||||||||
Total below investment grade | 6 | 58 | 51 | — | (7) | ||||||||||||||||||||||||
Total | 14 | $ | 208 | $ | 195 | $ | — | $ | (13) | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Number of securities | Amortized Cost | Fair Value | Allowance for Credit Loss | Gross Unrealized Losses | |||||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||||||||
Less than six months | 3 | $ | 102 | $ | 95 | $ | (6) | $ | (1) | ||||||||||||||||||||
Six months or more and less than twelve months | — | — | — | — | — | ||||||||||||||||||||||||
Twelve months or greater | — | — | — | — | — | ||||||||||||||||||||||||
Total investment grade | 3 | 102 | 95 | (6) | (1) | ||||||||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||||||||
Less than six months | 1 | — | — | — | — | ||||||||||||||||||||||||
Six months or more and less than twelve months | — | — | — | — | — | ||||||||||||||||||||||||
Twelve months or greater | — | — | — | — | — | ||||||||||||||||||||||||
Total below investment grade | 1 | — | — | — | — | ||||||||||||||||||||||||
Total | 4 | $ | 102 | $ | 95 | $ | (6) | $ | (1) | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Escrow, title-related and other fees | $ | 44 | $ | 51 | $ | 133 | $ | 114 | |||||||||||||||
Interest and investment income | — | — | — | 5 | |||||||||||||||||||
Recognized gains and losses, net | — | (1) | 9 | (8) | |||||||||||||||||||
Total revenues | 44 | 50 | 142 | 111 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Personnel costs | 24 | 33 | 85 | 64 | |||||||||||||||||||
Other operating expenses | 25 | 30 | 75 | 121 | |||||||||||||||||||
Depreciation and amortization | 6 | 5 | 18 | 17 | |||||||||||||||||||
Interest expense | 21 | 22 | 62 | 51 | |||||||||||||||||||
Total expenses | 76 | 90 | 240 | 253 | |||||||||||||||||||
Loss from continuing operations, before income taxes and equity in earnings of unconsolidated affiliates | $ | (32) | $ | (40) | $ | (98) | $ | (142) |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
7/1/2021 - 7/31/2021 | 400,000 | $ | 43.71 | 400,000 | 7,570,000 | |||||||||||||||||||||
8/1/2021 - 8/31/2021 | 475,000 | 48.43 | 475,000 | 24,525,000 | ||||||||||||||||||||||
9/1/2021 - 9/30/2021 | 450,000 | 46.30 | 450,000 | 24,075,000 | ||||||||||||||||||||||
Total | 1,325,000 | $ | 46.29 | 1,325,000 |
4.1 | ||||||||
4.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document* | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
104 | Cover Page Interactive Data File formatted in Inline XBRL and contained in Exhibit 101. | |||||||
* The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
Date: | November 5, 2021 | FIDELITY NATIONAL FINANCIAL, INC. (registrant) | ||||||||||||
By: | /s/ Anthony J. Park | |||||||||||||
Anthony J. Park | ||||||||||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
By: | /s/ Raymond R. Quirk | |||||||
Raymond R. Quirk Chief Executive Officer |
By: | /s/ Anthony J. Park | |||||||
Anthony J. Park Chief Financial Officer |
By: | /s/ Raymond R. Quirk | |||||||
Raymond R. Quirk | ||||||||
Chief Executive Officer |
By: | /s/ Anthony J. Park | |||||||
Anthony J. Park | ||||||||
Chief Financial Officer |
*+
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|||||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||||||
Net earnings | $ 737 | $ 385 | $ 1,903 | $ 646 | ||||||||||
Other comprehensive earnings (loss): | ||||||||||||||
Unrealized gain (loss) on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | [1] | (65) | 303 | (232) | 683 | |||||||||
Unrealized gain on investments in unconsolidated affiliates | [2] | 8 | (2) | 18 | 5 | |||||||||
Unrealized gain (loss) on foreign currency translation | [3] | (5) | 5 | (6) | 1 | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (30) | [4] | (11) | [4] | (82) | (11) | ||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | 3 | (4) | 3 | (1) | ||||||||||
Other comprehensive (loss) earnings | (89) | 291 | (299) | 677 | ||||||||||
Comprehensive earnings | 648 | 676 | 1,604 | 1,323 | ||||||||||
Less: Comprehensive earnings attributable to non-controlling interests | 5 | 7 | 14 | 20 | ||||||||||
Comprehensive earnings attributable to Fidelity National Financial, Inc. common shareholders | $ 643 | $ 669 | $ 1,590 | $ 1,303 | ||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized loss on investments and other financial instruments, tax (benefit) expense | $ (18) | $ 81 | $ (64) | $ 183 |
Unrealized gain on investments in unconsolidated affiliates tax expense (benefit) | 3 | (1) | 5 | 1 |
Unrealized loss foreign currency translation, tax (benefit) expense | (1) | 2 | 1 | 1 |
Reclassification adjustments for change in unrealized gains and losses included in net earnings, tax expense | 9 | 3 | 22 | 3 |
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk, tax expense (benefit) | $ 1 | $ (1) | $ 1 | $ (1) |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend per common share (in dollars per share) | $ 0.40 | $ 0.33 | $ 1.12 | $ 0.99 |
F&G acquisition | $ 32 | $ 609 | ||
Exercise of stock options | $ 9 | $ 11 | $ 41 | $ 48 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
9 Months Ended | |
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Sep. 30, 2021 |
Sep. 30, 2020 |
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Cash flows from operating activities: | ||
Net earnings | $ 1,903 | $ 646 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 540 | 189 |
Equity in earnings of unconsolidated affiliates | (54) | (9) |
(Gain) loss on sales of investments and other assets and asset impairments, net | (412) | 81 |
Interest credited/index credits to contractholder account balances | 239 | 344 |
Loss on the sale of businesses | 14 | 0 |
Deferred policy acquisition costs and deferred sales inducements | (473) | (139) |
Charges assessed to contractholders for mortality and admin | (130) | (53) |
Non-cash lease costs | 104 | 114 |
Operating lease payments | (113) | (115) |
Distributions from unconsolidated affiliates, return on investment | 29 | 0 |
Stock-based compensation cost | 31 | 29 |
Change in valuation of derivatives, equity and preferred securities, net | 290 | 4 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Change in collateral returned (posted) | 0 | (1) |
Change in insurance recoverable | 79 | 70 |
Change in future policy benefits | 203 | (58) |
Change in funds withheld from reinsurers | 685 | (6) |
Net increase in trade receivables | (81) | (27) |
Net increase in reserve for title claim losses | 111 | 46 |
Net change in income taxes | (60) | 5 |
Net change in other assets and other liabilities | (305) | (155) |
Net cash provided by operating activities | 2,600 | 965 |
Cash flows from investing activities: | ||
Proceeds from sales, calls and maturities of investment securities | 6,278 | 1,930 |
Proceeds from sales of property and equipment and title plants | 3 | 9 |
Additions to property and equipment and capitalized software | (93) | (75) |
Purchases of investment securities | (10,278) | (2,548) |
Net proceeds from (purchases of) sales and maturities of short-term investment securities | 92 | 791 |
Additions to notes receivable | (13) | 0 |
Collections of notes receivable | 3 | 0 |
Acquisitions and dispositions | (64) | (1,076) |
Additional investments in unconsolidated affiliates | (992) | (148) |
Distributions from unconsolidated affiliates, return of investment | 89 | 78 |
Proceeds from sales of unconsolidated affiliates | 112 | 0 |
Net other investing activities | 0 | (1) |
Net cash used in investing activities | (4,863) | (1,040) |
Cash flows from financing activities: | ||
Draw on revolving credit facility | 0 | 1,000 |
Debt offering | 449 | 1,246 |
Debt costs/equity issuance additions | (6) | (18) |
Debt service payments | 0 | (1,000) |
Dividends paid | (320) | (282) |
Subsidiary dividends paid to non-controlling interest shareholders | (14) | (9) |
Exercise of stock options | 39 | 47 |
Net change in secured trust deposits | 437 | 38 |
Additional investment in consolidated subsidiaries | 1 | (90) |
Payment of contingent consideration for prior period acquisitions | (3) | (9) |
Contractholder account deposits | 6,820 | 1,481 |
Contractholder account withdrawals | (2,350) | (730) |
Purchases of treasury stock | (361) | (104) |
Net cash provided by financing activities | 4,692 | 1,570 |
Net increase in cash and cash equivalents | 2,429 | 1,495 |
Cash and cash equivalents at beginning of period | 2,719 | 1,376 |
Cash and cash equivalents at end of period | $ 5,148 | $ 2,871 |
Basis of Financial Statements |
9 Months Ended |
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Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | Basis of Financial Statements The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2020. Description of the Business We are a leading provider of (i) title insurance, escrow and other title-related services, including trust activities, trustee sales guarantees, recordings and reconveyances and home warranty products, (ii) technology and transaction services to the real estate and mortgage industries and (iii) annuity and life insurance products. FNF is one of the nation’s largest title insurance companies operating through its title insurance underwriters - Fidelity National Title Insurance Company ("FNTIC"), Chicago Title Insurance Company ("Chicago Title"), Commonwealth Land Title Insurance Company ("Commonwealth Title"), Alamo Title Insurance and National Title Insurance of New York Inc. - which collectively issue more title insurance policies than any other title company in the United States. Through our subsidiary, ServiceLink Holdings, LLC ("ServiceLink"), we provide mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. We are also a provider of annuity and life insurance products, providing deferred annuities, including fixed index annuities ("FIA"), fixed rate annuities, immediate annuities, indexed universal life ("IUL") insurance, funding agreements and pension risk transfer ("PRT") solutions through our wholly-owned subsidiary, F&G Annuities & Life ("F&G"). For information about our reportable segments refer to Note H Segment Information. Recent Developments 3.20% Senior Notes On September 17, 2021, we completed our underwritten public offering of $450 million aggregate principal amount of our 3.20% Notes due September 17, 2051 (the "3.20% Notes"), pursuant to our registration statement on Form S-3 (File No. 333-239002) and the related prospectus supplement. The net proceeds from the registered offering of the 3.20% Notes were approximately $443 million, after deducting underwriting discounts, commissions and offering expenses. We plan to use the net proceeds from the offering for general corporate purposes. For further information related to the 3.20% Notes, refer to Note O Notes Payable. Approval of the 2021 Repurchase Program On August 3, 2021, our Board of Directors approved a new -year stock repurchase program effective August 3, 2021 (the "2021 Repurchase Program") under which we may purchase up to 25 million shares of our FNF common stock through July 31, 2024. We may make repurchases from time to time in the open market, in block purchases or in privately negotiated transactions, depending on market conditions and other factors. Merger of Alight, Inc. ("Alight") and Foley Trasimene Acquisition Corp. ("FTAC") On January 25, 2021, each of our wholly-owned subsidiaries, FNTIC, Commonwealth Title and Chicago Title (collectively, the "FTAC Subscribers") entered into common stock subscription agreements (the "FTAC Subscription Agreements") with Alight (f/k/a Acrobat Holdings, Inc.) and FTAC to purchase in the aggregate $150 million (the "Alight Purchase Price") of Class A Common Stock, par value $.001 per share, of Alight at a purchase price of $10.00 per share. On June 29, 2021, we funded the Alight Purchase Price. Additionally, Alight paid the FTAC Subscribers a fee of 2.5% of the Alight Purchase Price upon closing of the transactions in accordance with the Business Combination Agreement dated January 25, 2021, as amended and restated April 29, 2021, by and among FTAC, Alight and other parties thereto. On July 2, 2021, FTAC merged with Alight. The newly combined company operates as Alight, Inc. and is traded on the New York Stock Exchange ("NYSE") under the symbol "ALIT." As of September 30, 2021 our shares of Alight are fully registered and are included in equity securities within the accompanying unaudited Condensed Consolidated Balance Sheets. F&G Enters Funding Agreement Backed Note ("FABN") Market In June 2021, we established a funding agreement-backed notes program (the “FABN Program”), pursuant to which Fidelity & Guaranty Life Insurance Company (“FGL Insurance”) may issue funding agreements to a special purpose statutory trust (the “Trust”) for spread lending purposes. The maximum aggregate principal amount permitted to be outstanding at any one time under the FABN Program is $5.0 billion. As of September 30, 2021, we had approximately $1.9 billion outstanding under the FABN program. F&G Enters Pension Risk Transfer ("PRT") Market In July 2021, we entered the PRT market, pursuant to which FGL Insurance and Fidelity & Guaranty Life Insurance Company of New York ("FGL NY Insurance") may issue group annuity contracts to discharge pension plan liabilities from a pension plan sponsor. As of September 30, 2021, we closed pension risk transfer transactions which represent pension obligations of $371 million. In October 2021, we secured an additional $564 million in PRT transactions. Merger of Paysafe Limited ("Paysafe") and Foley Trasimene Acquisition Corp. II ("FTAC II") On December 7, 2020, each of our wholly-owned subsidiaries, FNTIC, Commonwealth Title, Chicago Title and F&G (collectively, the "FTAC II Subscribers"), entered into common stock subscription agreements with Paysafe and FTAC II to purchase in the aggregate $500 million (the "Purchase Price") of common shares, par value $0.001 per share, of Paysafe at a purchase price of $10.00 per share ("the PIPE Investment"). On March 30, 2021, FTAC II merged with Paysafe, an exempted limited company incorporated under the laws of Bermuda and a leading integrated payments platform (the "FTAC II Paysafe Merger"), in accordance with the agreement and plan of merger dated December 7, 2020. The newly combined company operates as Paysafe and is traded on the NYSE under the symbol PSFE. The FTAC II Paysafe Merger was funded with the cash held in trust at FTAC II, forward purchase commitments, private investment in public equity ("PIPE") commitments and equity of Paysafe. On March 30, 2021, the FTAC II Subscribers funded the subscription agreements and received 50 million common shares of Paysafe. As of September 30, 2021, we hold approximately 7% of the outstanding common shares of Paysafe, which are included in equity securities in the accompanying unaudited Condensed Consolidated Balance Sheets. In connection with the PIPE Investment, we received a fee of 1.6% of the Purchase Price as described in the agreement and plan of merger dated December 7, 2020. Income Tax Income tax expense was $213 million and $133 million in the three-month periods ended September 30, 2021 and 2020, respectively, and $555 million and $194 million in the nine month periods ended September 30, 2021 and 2020, respectively. Income tax expense as a percentage of earnings before income taxes was 23% and 25% in the three-month periods ended September 30, 2021 and 2020, respectively, and 23% and 23% in the nine-month periods ended September 30, 2021 and 2020, respectively. The decrease in income tax expense as a percentage of earnings before taxes in the three-month period ended September 30, 2021 is primarily attributable to discrete unfavorable tax adjustments associated with our acquisition of F&G in the prior year period. Earnings Per Share Basic earnings per share, as presented on the Condensed Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options, shares of restricted stock and certain other convertible share based payments, which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. Options or other instruments, which provide the ability to purchase shares of our common stock that are antidilutive, are excluded from the computation of diluted earnings per share. There were fewer than 1 million antidilutive instruments outstanding during the three and nine-month periods ended September 30, 2021. There were 2 million and 1 million antidilutive securities outstanding during the three and nine-month periods ended September 30, 2020, respectively. Discontinued Operations In connection with the F&G acquisition, certain third party offshore reinsurance businesses acquired were deemed discontinued operations and are presented as such within our Condensed Consolidated Statements of Earnings for the three and nine-month periods ended September 30, 2021. We have sold Front Street Re Cayman Ltd (“FSRC”) to Archipelago, and the closing of the transaction was effective May 31, 2021. The transaction did not have a material impact to our financial results. As of September 30, 2021, we no longer have discontinued operations. Management Estimates The preparation of these unaudited condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Periodically, and at least annually, typically in the third quarter, we review the assumptions associated with reserves for policy benefits, product guarantees, and amortization of intangibles. Additionally, during the three-months ended September 30, 2021, we implemented a new actuarial valuation system. As a result, our third quarter 2021 assumption updates include model refinements and assumption updates resulting from the implementation. The system implementation and assumption review process that occurred in the three-months ended September 30, 2021, included refinements in the calculation of the fair value of the embedded derivative component of our fixed index annuities within contractholder funds and updates to the surrender rates, guaranteed minimum withdrawal benefit (“GMWB”) utilization, IUL premium persistency, maintenance expenses, and earned rate assumptions to reflect our current and expected future experience. These changes, taken together, resulted in a decrease in contractholder funds and future policy reserves of $425 million and a decrease to intangible assets of $136 million. These model refinements and assumptions are also used in the SOP 03-1 liability for GMWB benefits and resulted in an increase in the liability of $28 million for the period ended September 30, 2021. There was no material change to underlying policyholder behavior during the three-months ended September 30, 2021. The majority of the changes represent one-time adjustments in the three-months ended September 30, 2021 related to the cumulative impact of the system implementation and are not expected to re-occur in the future. Recent Accounting Pronouncements Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740), which simplifies various aspects of the income tax accounting guidance and will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted this standard as of January 1, 2021, and it had no impact on our unaudited Condensed Consolidated Financial Statements upon adoption. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. The amendments in this update clarify that callable debt securities should be re-evaluated each reporting period to determine if the amortized cost exceeds the amount repayable by the issuer at the next earliest call date, and, if so, the excess should be amortized to the next call date. We adopted this standard as of January 1, 2021 and are applying this guidance on a prospective basis. This pronouncement had no impact on our unaudited Condensed Consolidated Financial Statements upon adoption. Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts, effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. This update introduced the following requirements: assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations; the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income; market risk benefits associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value attributable to a change in the instrument-specific credit risk being recognized in other comprehensive income; deferred acquisition costs are no longer required to be amortized in proportion to premiums, gross profits, or gross margins; instead, those balances must be amortized on a constant level basis over the expected term of the related contracts; deferred acquisition costs must be written off for unexpected contract terminations; and disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. We do not expect to early adopt this standard. We have identified specific areas that will be impacted by the new guidance and are in the process of assessing the accounting, reporting and/or process changes that will be required to comply as well as the impact of the new guidance on our consolidated financial statements.
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Summary of Reserve for Title Claim Losses |
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Summary of Reserve for Title Claim Losses | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows:
Several lawsuits have been filed by various parties against Chicago Title Company and Chicago Title Insurance Company as its alter ego (collectively, the “Named Companies”), among others. Generally, plaintiffs claim they are investors who were solicited by Gina Champion-Cain to provide funds that purportedly were to be used for high-interest, short-term loans to parties seeking to acquire California alcoholic beverage licenses. Plaintiffs contend that under California state law, alcoholic beverage license applicants are required to escrow an amount equal to the license purchase price while their applications remain pending with the State. Plaintiffs further alleged that employees of Chicago Title Company participated with Ms. Champion-Cain and her entities in a fraud scheme involving an escrow account maintained by Chicago Title Company into which the plaintiffs’ funds were deposited. The following lawsuits are pending in the Superior Court of San Diego County for the State of California. While they have not been consolidated into one action, they have been deemed by the court to be related and are assigned to the same judge for purposes of judicial economy. On December 13, 2019, a lawsuit styled, Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $250 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On March 6, 2020, a lawsuit styled, Wakefield Capital, LLC, Wakefield Investments, LLC, 2Budz Holding, LLC, Doug and Kristine Heidrich, and Jeff and Heidi Orr v. Chicago Title Co. and Chicago Title Ins. Co., was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $7 million as a result of the alleged fraud scheme, and also seek punitive damages, recovery of attorneys’ fees, and disgorgement. On June 29, 2020, a lawsuit styled, Susan Heller Fenley Separate Property Trust, DTD 03/04/2010, Susan Heller Fenley Inherited Roth IRA, Shelley Lynn Tarditi Trust and ROJ, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $6 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On June 29, 2020, a lawsuit styled, Yuan Yu and Polly Yu v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $1 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On July 7, 2020, a cross-claim styled, Laurie Peterson v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in an existing lawsuit styled, Banc of California, National Association v. Laurie Peterson, which is pending in San Diego County Superior Court. Cross-complaint plaintiff was sued by a bank to recover in excess of $35 million that she allegedly guaranteed to repay for certain investments made by the Banc of California in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On September 3, 2020, a cross-claim styled, Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in an existing lawsuit styled, CalPrivate Bank v. Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992, which is pending in Superior Court of San Diego County for the State of California. Cross-complaint plaintiff was sued by a bank to recover in excess of $12 million that the trustee allegedly guaranteed to repay for certain investments made by CalPrivate Bank in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. On October 1, 2020, a lawsuit styled, Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co., was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $75 million, as well as consequential and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On November 2, 2020, a lawsuit styled, CalPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co., was also filed in the Superior Court of San Diego County for the State of California. Plaintiff claims losses in excess of $12 million based upon business loan advances made in the alcoholic beverage license scheme, and also seeks punitive damages and the recovery of attorneys’ fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On February 24, 2021, a putative class action lawsuit styled, Blake E. Allred and Melissa M. Allred v. Chicago Title Co., Chicago Title Ins. Co., was filed in the Superior Court of San Diego County for the State of California. Plaintiffs are seeking compensatory, statutory, treble, and punitive damages. In addition, Chicago Title Company has resolved claims from both individual and groups of alleged investors under confidential terms during pre-suit mediations. As of September 30, 2021, the Company has recorded an incurred claim loss reserve for legal fees which is included in its consolidated reserve for title claim losses. The Company has also recorded an insurance recoverable for amounts it expects to recover from its insurance carriers relating to these matters. In connection with the alcoholic beverage license scheme, the Securities and Exchange Commission (“SEC”) filed a lawsuit in the United States District Court for the Southern District of California against Ms. Champion-Cain and certain of her affiliated entities asserting claims for securities fraud. A receiver was appointed to preserve the assets of those named defendants, pay defendants’ debts and operate defendants’ businesses. The federal court in the SEC litigation has scheduled a comprehensive mediation to take place in January 2022 among the receiver and various non-parties, including Chicago Title Company and remaining investors/lenders who were allegedly defrauded and have some interest in the SEC litigation or in the related state court litigation set forth above. At this time, the Company is unable to ascertain its liability, if any, and is unable to make an estimate of a reasonably possible claim loss for any of the unresolved claims due to the complex nature of the claims and litigation, the early procedural status of each claim (involving unresolved questions of fact without any rulings on the merits or determinations of liability), the extent of discovery not yet conducted, potential insurance coverage, and an incomplete evaluation of possible defenses, counterclaims, crossclaims or third-party claims that may exist. Moreover, it is likely that in some instances, the claims listed above are duplicative. As further information becomes available, the Company will continue to evaluate the adequacy of its consolidated reserve for title claim losses. As of September 30, 2021, the Company believes that its reserves are adequate to cover losses related to this matter and other claims. We continually update loss reserve estimates as new information becomes known, new loss patterns emerge or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. F&G Insurance Subsidiary Financial Information and Regulatory MattersOur U.S. insurance subsidiaries, FGL Insurance, FGL NY Insurance, and Raven Re, file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect DAC, DSI and VOBA, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. F&G Cayman Re Ltd., Freestone Re Ltd. (Cayman) and F&G Life Re Ltd (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. This resulted in a $39 million and $144 million decrease to statutory capital and surplus at September 30, 2021 and December 31, 2020, respectively. FGL Insurance’s statutory carrying value of Raven Reinsurance Company ("Raven Re") reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset which increased Raven Re’s statutory capital and surplus by $85 million at September 30, 2021 and December 31, 2020. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance which increased (decreased) Raven Re’s statutory capital and surplus by $(1) million at September 30, 2021 and by $5 million at December 31, 2020. Without such permitted statutory accounting practices, Raven Re’s statutory capital and surplus (deficit) would be $30 million as of September 30, 2021 and $(6) million as of December 31, 2020, and its risk-based capital would fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent. FGL Insurance’s statutory carrying value of Raven Re was $114 million and $84 million at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. The prescribed and permitted statutory accounting practices have no impact on our unaudited Condensed Consolidated Financial Statements which are prepared in accordance with GAAP.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include our own credit risk. We estimate an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). We categorize financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions):
(1) Included within equity securities in the accompanying Condensed Consolidated Balance Sheets as of December 31, 2020. Valuation Methodologies Fixed Maturity Securities & Equity Securities We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we will then consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. We use observable and unobservable inputs in our valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. We believe the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. We analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. However, we did not adjust prices received from third parties as of September 30, 2021 or December 31, 2020. Derivative Financial Instruments The fair value of call options are based upon valuation pricing models, which represents what we would expect to receive or pay at the balance sheet date if we canceled the options, entered into offsetting positions, or exercised the options. Fair values for these instruments are determined internally, based on industry accepted valuation pricing models which use market-observable inputs, including interest rates, yield curve volatilities, and other factors. The fair value of futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements) which represents what we would expect to receive or pay at the balance sheet date if we canceled the contracts or entered into offsetting positions. These contracts are classified as Level 1. The fair value measurement of the FIA embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and treasury rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier and non-performance spread. The mortality multiplier at September 30, 2021 was applied to the 2012 individual Annuity mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in treasury rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. Also refer to Managements Estimates in Note A Basis of Financial Statements regarding the implementation of a new actuarial valuation system and assumption updates during the three-months ended September 30, 2021. The system implementation and assumption review process included refinements in the calculation of the fair value of the embedded derivative component of our fixed index annuities. The fair value of the reinsurance-related embedded derivatives in the funds withheld reinsurance agreements with Kubera Insurance (SAC) Ltd. ("Kubera") and Aspida Holdings Ltd ("Aspida"), third party insurers, are estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. See Note L Reinsurance below and Note P Reinsurance in our Annual Report on Form 10-K for the year ended December 31, 2020 for further discussion on F&G reinsurance agreements. Other long-term investments Fair value of the available-for-sale embedded derivative is based on an unobservable input, the net asset value of the fund at the balance sheet date and is considered to be a Level 3 fair value measurement. The embedded derivative is similar to a call option on the net asset value of the fund with a strike price of zero since F&G will not be required to make any additional payments at maturity of the fund-linked note in order to receive the net asset value of the fund on the maturity date. A Black-Scholes model determines the net asset value of the fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The net asset value of the fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the fund. As the value of the fund increases or decreases, the fair value of the embedded derivative will increase or decrease. See further discussion on the available-for-sale embedded derivative in Note E Derivative Financial Instruments. The fair value of the credit-linked note is based on a weighted average of a broker quote and a discounted cash flow analysis and is considered to be a Level 3 fair value measurement. The discounted cash flow approach is based on the expected portfolio cash flows and amortization schedule reflecting investment expectations, adjusted for assumptions on the portfolio's default and recovery rates, and the note's discount rate. The fair value of the note is provided by the fund manager at the end of each quarter. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of September 30, 2021 and December 31, 2020 are as follows:
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2021 and 2020. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“DSI”). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
(a) The net transfers out of Level 3 during the three months ended September 30, 2021 were exclusively to Level 2.
Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The internal ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Policy Loans (included within Other long-term investments) Fair values for policy loans are estimated from a discounted cash flow analysis, using interest rates currently being offered for loans with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. Company Owned Life Insurance Company owned life insurance (COLI) is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. COLI is classified as Level 3 within the fair value hierarchy. Other Invested Assets (included within Other long-term investments) The fair value of the bank loan is estimated using a discounted cash flow method with the discount rate based on weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. Other invested assets are classified as Level 3 within the fair value hierarchy. Investment Contracts Investment contracts include deferred annuities, FIAs, indexed universal life policies ("IULs"), funding agreements and PRT and immediate annuities contracts without life contingencies. The fair value of deferred annuity, FIA, and IUL contracts is based on their cash surrender value (i.e. the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of funding agreements and PRT and immediate annuities contracts without life contingencies is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Other Federal Home Loan Bank of Atlanta ("FHLB") common stock, Accounts receivable and Notes receivable are carried at cost, which approximates fair value. FHLB common stock is classified as Level 2 within the fair value hierarchy. Accounts receivable and Notes receivable are classified as Level 3 within the fair value hierarchy. Debt The fair value of debt is based on quoted market prices of other debt with similar characteristics. The inputs used to measure the fair value of our outstanding debt are classified as Level 2 within the fair value hierarchy. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
The following table includes assets that have not been classified in the fair value hierarchy as the value of these investments are measured using the equity method of accounting or the net asset value ("NAV") per share practical expedient (in millions):
For investments for which NAV is used as a practical expedient for fair value, we do not have any significant restrictions in our ability to liquidate their positions in these investments, other than obtaining general partner approval, nor do we believe it is probable a price less than NAV would be received in the event of a liquidation. Equity method investments are reported on a lag of up to three months for investee information not received timely. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. The transfers into and out of Level 3 were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value.
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Our fixed maturity securities investments have been designated as available-for-sale and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in AOCI, net of associated adjustments for DAC, VOBA, DSI, unearned revenue ("UREV"), SOP 03-1 reserves, and deferred income taxes. Our equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. The Company’s consolidated investments at September 30, 2021 and December 31, 2020 are summarized as follows (in millions):
Securities held on deposit with various state regulatory authorities had a fair value of $21,198 million and $16,714 million at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, the Company held no material investments that were non-income producing for a period greater than twelve months. As of September 30, 2021 and December 31, 2020, the Company's accrued interest receivable balance was $255 million and $235 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets. In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to the Company for general purposes. The collateral investments had a fair value of $2,278 million and $1,622 million as of September 30, 2021 and December 31, 2020, respectively. The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
Allowance for Expected Credit Loss We regularly review available for sale ("AFS") securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss: •The extent to which the fair value is less than the amortized cost basis; •The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); •The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); •Delinquencies and nonperforming assets of underlying collateral; •Expected future default rates; •Collateral value by vintage, geographic region, industry concentration or property type; •Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and •Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. We recognize an allowance for expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e. the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through to interest and investment income when collectability concerns arise. We consider the following in determining whether write-offs of a security’s amortized cost is necessary: • We believe amounts related to securities have become uncollectible; or • We intend to sell a security; or • It is more likely than not that we will be required to sell a security prior to recovery. If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible (generally based on proximity to expected credit loss), an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category were as follows for the three and nine-month periods ended September 30, 2021 (in millions):
(1) Purchased credit deteriorated financial assets ("PCD") Purchased credit-deteriorated available-for-sale debt securities ("PCD"s) are AFS securities purchased at a discount, where part of that discount is attributable to credit. Credit loss allowances are calculated for these securities as of the date of their acquisition, with the initial allowance serving to increase amortized cost. The following table summarizes purchases of PCD AFS securities during the three and nine-month periods ended September 30, 2021 (in millions).
The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of September 30, 2021 and December 31, 2020 were as follows (dollars in millions):
We determined the increase in unrealized losses as of September 30, 2021 was caused by higher treasury rates, offset by narrower spreads in certain sectors. This in part is expected as the economy continues its anticipated path to recovery. For securities in an unrealized loss position as of September 30, 2021 an expected credit loss was not determined, and we believe that the unrealized loss is being driven by interest rate increases or near-term illiquidity and uncertainty of the impact of COVID-19 on the economy as opposed to issuer specific credit concerns. Specific to asset-backed and mortgage-backed securities for which an expected credit loss was not determined, the effect of any increased expectations of underlying collateral defaults has not risen to the level of impacting the tranches of those securities.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in FIA and reinsurance contracts, as of September 30, 2021 and December 31, 2020 is as follows (in millions):
The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Earnings is as follows (in millions):
Additional Disclosures FIA Embedded Derivative and Call Options and Futures We have FIA Contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The FIA embedded derivative is valued at fair value and included in the liability for contractholder funds in the accompanying unaudited Condensed Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the unaudited Condensed Consolidated Statements of Earnings. See a description of the fair value methodology used in Note C Fair Value of Financial Instruments. Also refer to Managements Estimates in Note A Basis of Financial Statements regarding the implementation of a new actuarial valuation system and assumption updates during the three-months ended September 30, 2021. The system implementation and assumption review process included refinements in the calculation of the fair value of the embedded derivative component of our fixed index annuities. We purchase derivatives consisting of a combination of call options and futures contracts on the applicable market indices to fund the index credits due to FIA contractholders. The call options are , , , and year options purchased to match the funding requirements of the underlying policies. On the respective anniversary dates of the index policies, the index used to compute the interest credit is reset and we purchase new call options to fund the next index credit. We manage the cost of these purchases through the terms of our FIA contracts, which permit us to change caps, spreads or participation rates, subject to guaranteed minimums, on each contract’s anniversary date. The change in the fair value of the call options and futures contracts is generally designed to offset the portion of the change in the fair value of the FIA embedded derivative related to index performance through the current credit period. The call options and futures contracts are marked to fair value with the change in fair value included as a component of Recognized gains and losses, net. The change in fair value of the call options and futures contracts includes the gains and losses recognized at the expiration of the instrument term or upon early termination and the changes in fair value of open positions. Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our FIA hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. We use a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. We intend to continue to adjust the hedging strategy as market conditions and our risk tolerance changes. Credit Risk We are exposed to credit loss in the event of non-performance by our counterparties on the call options and reflect assumptions regarding this non-performance risk in the fair value of the call options. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. We maintain a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding our exposure to credit loss on the call options we hold as of September 30, 2021 and December 31, 2020, is presented in the following table (in millions):
(1) An * represents credit ratings that were not available. Collateral Agreements We are required to maintain minimum ratings as a matter of routine practice as part of our over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, we have agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open option contracts between the parties, at which time any amounts payable by us or the counterparty would be dependent on the market value of the underlying option contracts. Our current rating does not allow any counterparty the right to terminate ISDA agreements. In certain transactions, both us and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except Merrill Lynch, this threshold is set to zero. As of September 30, 2021 and December 31, 2020, respectively, counterparties posted $582 million and $491 million of collateral of which $429 million and $415 million is included in cash and cash equivalents with an associated payable for this collateral included in accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheet. Accordingly, the maximum amount of loss due to credit risk that we would incur if parties to the call options failed completely to perform according to the terms of the contracts was $40 million at September 30, 2021 and $58 million at December 31, 2020. We are required to pay counterparties the effective federal funds rate each day for cash collateral posted to F&G for daily mark to market margin changes. We reinvest derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products which are included in cash and cash equivalents in the accompanying unaudited Condensed Consolidated Balance Sheets. We held 354 and 384 futures contracts at September 30, 2021 and December 31, 2020, respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). We provide cash collateral to the counterparties for the initial and variation margin on the futures contracts which is included in cash and cash equivalents in the accompanying unaudited Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $3 million and $4 million at September 30, 2021 and December 31, 2020, respectively. Reinsurance Related Embedded Derivatives F&G entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain deferred annuity business on a coinsurance funds withheld basis, net of applicable existing reinsurance. Additionally, F&G entered into a reinsurance agreement with Aspida effective January 1, 2021, to cede a quota share of certain deferred annuity business on a funds withheld basis. Fair value movements in the funds withheld balances associated with these arrangements creates an obligation for FGL Insurance to pay Kubera and Aspida at a later date, which results in embedded derivatives. These embedded derivatives are considered total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangements. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangements, including gains and losses from sales, were passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. The reinsurance related embedded derivatives are reported in prepaid expenses and other assets if in a net gain position, or accounts payable and accrued liabilities, if in a net loss position, on the unaudited Condensed Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and losses, net on the unaudited Condensed Consolidated Statements of Earnings.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Contingencies In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. With respect to our title insurance operations, this customary litigation includes but is not limited to a wide variety of cases arising out of or related to title and escrow claims, for which we make provisions through our loss reserves. See Note B Summary of Reserve for Title Claim Losses for further discussion. Additionally, like other companies, our ordinary course litigation includes a number of class action and purported class action lawsuits, which make allegations related to aspects of our operations. We believe that no actions, other than the matters discussed below, if any, depart from customary litigation incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded. Our accrual for legal and regulatory matters was $12 million and $13 million as of September 30, 2021 and December 31, 2020, respectively. None of the amounts we have currently recorded are considered to be material to our financial condition individually or in the aggregate. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. Two lawsuits have been filed related to FNF’s acquisition of F&G. On August 4, 2020, a stockholder derivative lawsuit styled, City of Miami General Employees’ and Sanitation Employees’ Retirement Trust v. Fidelity National Financial, et al., was filed in the Court of Chancery of the State of Delaware against the Company, its Board of Directors and others alleging breach of fiduciary duties as directors and officers relating to FNF’s acquisition of F&G. Our Board of Directors (“Board”) has designated a Special Litigation Committee (the “SLC”) consisting of three of the Board’s Directors, and has authorized the SLC, among other things, to investigate and evaluate the claims and allegations asserted in the lawsuit. The Board has also given the SLC the sole authority and power to consider and determine whether or not prosecution of the claims asserted in the lawsuit is in the best interest of the Company and our shareholders, and what action we should take with respect to the lawsuit. The parties have agreed to stay the action until November 24, 2021, to allow sufficient time for the SLC to investigate the allegations and provide its evaluation. On August 17, 2020, a lawsuit styled, In the Matter of FGL Holdings, was filed in the Grand Court of the Cayman Islands where dissenting shareholders, Kingfishers LP, Kingstown 1740 Fund LP, Kingstown Partners II LP, Kingstown Partners Master Ltd., and Ktown LP, have asserted statutory appraisal rights relative to their ownership of 12,000,000 shares of F&G stock in connection with the acquisition. They seek a judicial determination of the fair value of their shares of F&G stock under the law of the Cayman Islands, together with interest. Discovery is ongoing. We do not believe the result in either case will have a material adverse effect on our financial condition. From time to time we receive inquiries and requests for information from state insurance departments, attorneys general and other regulatory agencies about various matters relating to our business. Sometimes these take the form of civil investigative demands or subpoenas. We cooperate with all such inquiries and we have responded to or are currently responding to inquiries from multiple governmental agencies. Also, regulators and courts have been dealing with issues arising from foreclosures and related processes and documentation. Various governmental entities are studying the title insurance product, market, pricing, and business practices, and potential regulatory and legislative changes, which may materially affect our business and operations. From time to time, we are assessed fines for violations of regulations or other matters or enter into settlements with such authorities which may require us to pay fines or claims or take other actions. We do not anticipate such fines and settlements, either individually or in the aggregate, will have a material adverse effect on our financial condition. F&G Commitments In our F&G segment, we have unfunded investment commitments as of September 30, 2021 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. A summary of unfunded commitments by invested asset class as of September 30, 2021 is included below (in millions):
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Dividends |
9 Months Ended |
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Sep. 30, 2021 | |
Equity [Abstract] | |
Dividends | DividendsOn November 2, 2021, our Board of Directors declared cash dividends of $0.44 per share, payable on December 31, 2021, to FNF common shareholders of record as of December 17, 2021. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Summarized financial information concerning our reportable segments is shown in the following tables. On June 1, 2020, we completed our acquisition of F&G. As a result, the tables for the nine months ended September 30, 2020 present four months of F&G activity. As of and for the three months ended September 30, 2021:
As of and for the three months ended September 30, 2020:
As of and for the nine months ended September 30, 2021:
As of and for the nine months ended September 30, 2020:
The activities in our segments include the following: •Title. This segment consists of the operations of our title insurance underwriters and related businesses. This segment provides core title insurance and escrow and other title-related services including trust activities, trustee sales guarantees, and home warranty products. This segment also includes our transaction services business, which includes other title-related services used in the production and management of mortgage loans, including mortgage loans that experience default. •F&G. This segment consists of operations of our annuities and life insurance related businesses. This segment issues a broad portfolio of deferred annuities (fixed index and fixed rate annuities), immediate annuities, indexed universal life insurance, funding agreements and PRT solutions. •Corporate and Other. This segment consists of the operations of the parent holding company, our real estate technology subsidiaries and our remaining real estate brokerage businesses. This segment also includes certain other unallocated corporate overhead expenses and eliminations of revenues and expenses between it and our Title segment.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Our revenue consists of:
Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete. Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. Escrow fees and Other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions, including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Life insurance premiums in our F&G segment reflect premiums for traditional life insurance products, life-contingent immediate annuity products and life-contingent PRT products which are recognized as revenue when due from the policyholder. Insurance and investment product fees and other consist primarily of the cost of insurance fees on IUL policies, UREV on IUL policies, policy rider fees primarily on FIA policies and surrender charges assessed against policy withdrawals in excess of the policyholder's allowable penalty-free amounts. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Real estate brokerage revenues are primarily comprised of commission revenues earned in association with the facilitation of real estate transactions and are recognized upon closing of the sale of the underlying real estate transaction. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. Interest and investment income consists primarily of interest recognized on fixed maturity security holdings, limited partnership returns and dividends recognized on equity and preferred security holdings, net of investment expense. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Contract Balances The following table provides information about trade receivables and deferred revenue:
Deferred revenue is recorded primarily for our home warranty contracts. Revenues from home warranty products are recognized over the life of the policy, which is primarily one year. The unrecognized portion is recorded as deferred revenue in accounts payable and other accrued liabilities in the unaudited Condensed Consolidated Balance Sheets. During the three and nine months ended September 30, 2021, we recognized $56 million and $87 million of revenue, respectively, which was included in deferred revenue at the beginning of the respective period.
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Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements | Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets are as follows (in millions):
Annually, typically in the third quarter, we review assumptions associated with the amortization of intangibles. In addition, during the three months ended September 30, 2021, we implemented a new actuarial valuations system and as a result, our third quarter 2021 assumption updates include model refinements and assumption updates resulting from the implementation. The changes, taken together, increased amortization of intangibles by $136 million. Amortization of VOBA, DAC, and DSI is based on the current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0% to 4.71%. The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the unaudited Condensed Consolidated Statements of Earnings. As of September 30, 2021 and September 30, 2020, the VOBA balances included cumulative adjustments for net unrealized investment gains of $245 million and $228 million, respectively, the DAC balances included cumulative adjustments for net unrealized investment gains of $44 million and $15 million, respectively, and the DSI balance included net unrealized investment gains of $6 million and $4 million, respectively. For the inforce liabilities as of September 30, 2021, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions):
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F&G Reinsurance |
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Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
F&G Reinsurance | F&G Reinsurance F&G reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding F&G's retention limit is reinsured. F&G primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. If the underlying policy being reinsured is an insurance contract, F&G follows reinsurance accounting when there is adequate risk transfer or deposit accounting if there is inadequate risk transfer. If the underlying policy being reinsured is an investment contract, the effects of the agreement are accounted for as a separate investment contract. The effect of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three and nine months ended September 30, 2021 and the three and four months ended September 30, 2020 (following our June 1, 2020 acquisition of F&G) were as follows (in millions):
Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. F&G did not write off any significant reinsurance balances during the nine months ended September 30, 2021 or four months ended September 30, 2020. F&G did not commute any ceded reinsurance treaties during the nine months ended September 30, 2021 or four months ended September 30, 2020. Following the adoption of ASC 326, F&G estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurers credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. As of the June 1, 2020 acquisition of F&G, due to purchase accounting adjustments, our expected credit loss reserve was valued at $0. During the three and nine months ended September 30, 2021 and the three and four months ended September 30, 2020, the expected credit loss reserve decreased from $21 million to $19 million and increased from $0 to $22 million, respectively. No policies issued by F&G have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. F&G has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. Effective May 1, 2020, F&G entered into an indemnity reinsurance agreement with Canada Life Assurance Company United States Branch, a third party reinsurer, to reinsure FIA policies with guaranteed minimum withdrawal benefits ("GMWB"). In accordance with the terms of this agreement, F&G cedes a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB. Effective January 1, 2021, F&G amended this agreement to include the GMWB rider for its SecureIncome 7 product. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. On January 15, 2021, F&G executed a Funds Withheld Coinsurance Agreement with ASPIDA Life Re Ltd ("Aspida Re"), a Bermuda reinsurer. In accordance with the terms of this agreement, F&G cedes to the reinsurer, on a fifty percent (50%) funds withheld coinsurance basis, certain multiyear guaranteed annuity business written effective January 1, 2021. The effects of this agreement are accounted for as a separate investment contract. On May 31, 2021, two Novation Agreements were executed by and among Freestone Re Ltd., an exempted company incorporated in the Cayman Islands with limited liability (the “New Reinsurer”), Front Street Re (Cayman) Ltd., an exempted company incorporated in the Cayman Islands with limited liability (the “Original Reinsurer”) and FGL Insurance. The effective dates of the agreements are April 1, 2021. As these agreements are intercompany both before and after the novation, they are eliminated in consolidation for GAAP reporting. Concentration of Reinsurance Risk F&G has a significant concentration of reinsurance risk with third party reinsurers, Wilton Reassurance Company (“Wilton Re”), Kubera and Aspida Re that could have a material impact on the Company’s financial position in the event that any of these reinsurers fail to perform their obligations under the various reinsurance treaties. Wilton Re is a wholly-owned subsidiary of Canada Pension Plan Investment Board ("CPPIB"). CPPIB has an AAA issuer credit rating from Standard & Poor's Ratings Services ("S&P") as of September 30, 2021. Kubera is not rated, however, management has attempted to mitigate the risk of non-performance through the funds withheld arrangement. As of September 30, 2021, Aspida Re has a A- issuer credit rating from AM Best and a BBB from Fitch, and the risk of non-performance is further mitigated through the funds withheld arrangement. As of September 30, 2021, the net amount recoverable from Wilton Re, Kubera, and Aspida Re was $1,287 million, $789 million, and $717 million, respectively. The Company monitors both the financial condition of individual reinsurers and risk concentration arising from similar activities and economic characteristics of reinsurers to attempt to reduce the risk of default by such reinsurers. The Company believes that all amounts due from Wilton Re, Kubera and Aspida Re for periodic treaty settlements are collectible as of September 30, 2021. On March 6, 2019, Scottish Re (U.S.), Inc. (“SRUS”), a Delaware domestic life and health reinsurer of F&G, was ordered into receivership for purposes of rehabilitation. As of September 30, 2021, the net amount recoverable from SRUS was $30 million. The financial exposure related to these ceded reserves are substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. Wilton Re is currently meeting all conditions related to these assumed obligations. On July 9, 2019, Pavonia Life Insurance Company of Michigan (“Pavonia”), a Michigan domiciled life, accident, and health insurance company, was placed into rehabilitation. While the court order indicated that Pavonia had a stable financial condition and lack of non-insurance affiliated investments, the Director of the Michigan Department of Insurance and Financial Services (“MDIFS") has concerns relating to Pavonia's parent company. To insulate Pavonia from its parent until a pending acquisition transaction could be consummated, MDIFS placed Pavonia under supervision and rehabilitation. As of September 30, 2021, the net amount recoverable from Pavonia was $76 million. On July 15, 2021, Aspida Holdings Ltd. (“Aspida”) acquired Global Bankers Insurance Group, LLC, the parent company of Pavonia, and is now known as Aspida Financial Services, LLC (“Aspida Financial”). Following the acquisition, Pavonia is no longer in rehabilitation. We believe any financial exposure related to these ceded reserves would be substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. There have been no other material changes in the reinsurance and the intercompany reinsurance agreements described in our Annual Report on Form 10-K for the year ended December 31, 2020.
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F&G Insurance Subsidiary Financial Information and Regulatory Matters |
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F&G Insurance Subsidiary Financial Information and Regulatory Matters | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows:
Several lawsuits have been filed by various parties against Chicago Title Company and Chicago Title Insurance Company as its alter ego (collectively, the “Named Companies”), among others. Generally, plaintiffs claim they are investors who were solicited by Gina Champion-Cain to provide funds that purportedly were to be used for high-interest, short-term loans to parties seeking to acquire California alcoholic beverage licenses. Plaintiffs contend that under California state law, alcoholic beverage license applicants are required to escrow an amount equal to the license purchase price while their applications remain pending with the State. Plaintiffs further alleged that employees of Chicago Title Company participated with Ms. Champion-Cain and her entities in a fraud scheme involving an escrow account maintained by Chicago Title Company into which the plaintiffs’ funds were deposited. The following lawsuits are pending in the Superior Court of San Diego County for the State of California. While they have not been consolidated into one action, they have been deemed by the court to be related and are assigned to the same judge for purposes of judicial economy. On December 13, 2019, a lawsuit styled, Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $250 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On March 6, 2020, a lawsuit styled, Wakefield Capital, LLC, Wakefield Investments, LLC, 2Budz Holding, LLC, Doug and Kristine Heidrich, and Jeff and Heidi Orr v. Chicago Title Co. and Chicago Title Ins. Co., was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $7 million as a result of the alleged fraud scheme, and also seek punitive damages, recovery of attorneys’ fees, and disgorgement. On June 29, 2020, a lawsuit styled, Susan Heller Fenley Separate Property Trust, DTD 03/04/2010, Susan Heller Fenley Inherited Roth IRA, Shelley Lynn Tarditi Trust and ROJ, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $6 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On June 29, 2020, a lawsuit styled, Yuan Yu and Polly Yu v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $1 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On July 7, 2020, a cross-claim styled, Laurie Peterson v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in an existing lawsuit styled, Banc of California, National Association v. Laurie Peterson, which is pending in San Diego County Superior Court. Cross-complaint plaintiff was sued by a bank to recover in excess of $35 million that she allegedly guaranteed to repay for certain investments made by the Banc of California in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On September 3, 2020, a cross-claim styled, Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman, was filed in an existing lawsuit styled, CalPrivate Bank v. Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992, which is pending in Superior Court of San Diego County for the State of California. Cross-complaint plaintiff was sued by a bank to recover in excess of $12 million that the trustee allegedly guaranteed to repay for certain investments made by CalPrivate Bank in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. On October 1, 2020, a lawsuit styled, Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co., was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $75 million, as well as consequential and punitive damages. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On November 2, 2020, a lawsuit styled, CalPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co., was also filed in the Superior Court of San Diego County for the State of California. Plaintiff claims losses in excess of $12 million based upon business loan advances made in the alcoholic beverage license scheme, and also seeks punitive damages and the recovery of attorneys’ fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, among others. A demurrer to the Named Companies’ cross-complaint has been filed and is set for hearing on November 19, 2021. On February 24, 2021, a putative class action lawsuit styled, Blake E. Allred and Melissa M. Allred v. Chicago Title Co., Chicago Title Ins. Co., was filed in the Superior Court of San Diego County for the State of California. Plaintiffs are seeking compensatory, statutory, treble, and punitive damages. In addition, Chicago Title Company has resolved claims from both individual and groups of alleged investors under confidential terms during pre-suit mediations. As of September 30, 2021, the Company has recorded an incurred claim loss reserve for legal fees which is included in its consolidated reserve for title claim losses. The Company has also recorded an insurance recoverable for amounts it expects to recover from its insurance carriers relating to these matters. In connection with the alcoholic beverage license scheme, the Securities and Exchange Commission (“SEC”) filed a lawsuit in the United States District Court for the Southern District of California against Ms. Champion-Cain and certain of her affiliated entities asserting claims for securities fraud. A receiver was appointed to preserve the assets of those named defendants, pay defendants’ debts and operate defendants’ businesses. The federal court in the SEC litigation has scheduled a comprehensive mediation to take place in January 2022 among the receiver and various non-parties, including Chicago Title Company and remaining investors/lenders who were allegedly defrauded and have some interest in the SEC litigation or in the related state court litigation set forth above. At this time, the Company is unable to ascertain its liability, if any, and is unable to make an estimate of a reasonably possible claim loss for any of the unresolved claims due to the complex nature of the claims and litigation, the early procedural status of each claim (involving unresolved questions of fact without any rulings on the merits or determinations of liability), the extent of discovery not yet conducted, potential insurance coverage, and an incomplete evaluation of possible defenses, counterclaims, crossclaims or third-party claims that may exist. Moreover, it is likely that in some instances, the claims listed above are duplicative. As further information becomes available, the Company will continue to evaluate the adequacy of its consolidated reserve for title claim losses. As of September 30, 2021, the Company believes that its reserves are adequate to cover losses related to this matter and other claims. We continually update loss reserve estimates as new information becomes known, new loss patterns emerge or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. F&G Insurance Subsidiary Financial Information and Regulatory MattersOur U.S. insurance subsidiaries, FGL Insurance, FGL NY Insurance, and Raven Re, file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect DAC, DSI and VOBA, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. F&G Cayman Re Ltd., Freestone Re Ltd. (Cayman) and F&G Life Re Ltd (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. This resulted in a $39 million and $144 million decrease to statutory capital and surplus at September 30, 2021 and December 31, 2020, respectively. FGL Insurance’s statutory carrying value of Raven Reinsurance Company ("Raven Re") reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset which increased Raven Re’s statutory capital and surplus by $85 million at September 30, 2021 and December 31, 2020. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance which increased (decreased) Raven Re’s statutory capital and surplus by $(1) million at September 30, 2021 and by $5 million at December 31, 2020. Without such permitted statutory accounting practices, Raven Re’s statutory capital and surplus (deficit) would be $30 million as of September 30, 2021 and $(6) million as of December 31, 2020, and its risk-based capital would fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent. FGL Insurance’s statutory carrying value of Raven Re was $114 million and $84 million at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. The prescribed and permitted statutory accounting practices have no impact on our unaudited Condensed Consolidated Financial Statements which are prepared in accordance with GAAP.
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions F&G On June 1, 2020, we acquired 100% of the outstanding equity of F&G for approximately $2.7 billion. The purchase price is as follows (in millions):
The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805").The purchase price has been allocated to F&G's assets acquired and liabilities assumed based on our estimates of their fair values as of June 1, 2020. Goodwill has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired. Goodwill consists primarily of intangible assets that do not qualify for separate recognition. The goodwill recorded is not expected to be deductible for tax purposes, except for $16 million related to a prior F&G transaction. The final purchase price allocation is as follows (dollars in millions):
The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions):
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Notes Payable |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | Notes Payable Notes payable consists of the following:
On September 17, 2021, we completed our underwritten public offering of $450 million aggregate principal amount of our 3.20% Notes, pursuant to our registration statement on Form S-3 ASR (File No. 333-239002) and the related prospectus supplement. The net proceeds from the registered offering of the 3.20% Notes were approximately $443 million, after deducting underwriting discounts, commissions and offering expenses. We plan to use the net proceeds from the offering for general corporate purposes. On October 29, 2020, we entered into the Fifth Restated Credit Agreement for our Amended Revolving Credit Facility with Bank of America, N.A., as administrative agent and the other agents party thereto. Among other changes, the Fifth Restated Credit Agreement amends the Fourth Restated Credit Agreement to extend the maturity date from April 27, 2022 to October 29, 2025. The material terms of the Fourth Restated Credit Agreement are set forth in our Annual Report for the year ended December 31, 2019. As of September 30, 2021, there was no principal outstanding, $2 million of unamortized debt issuance costs, and $800 million of available borrowing capacity under the Revolving Credit Facility. On September 15, 2020, we completed our underwritten public offering of $600 million aggregate principal amount of our 2.45% Notes due March 15, 2031 (the "2.45% Notes") pursuant to an effective registration statement filed with the SEC. The net proceeds from the registered offering of the 2.45% Notes were approximately $593 million, after deducting underwriting discounts and commissions and offering expenses. We used the net proceeds from the offering (i) to repay all our $260 million outstanding indebtedness under the Term Loan, and (ii) for general corporate purposes. On June 12, 2020, we completed our underwritten public offering of $650 million aggregate principal amount of the 3.40% Notes due June 15, 2030 (the “3.40% Notes”) pursuant to an effective registration statement filed with the SEC. The net proceeds from the registered offering of the 3.40% Notes were approximately $642 million, after deducting underwriting discounts, and commissions and offering expenses. We used the net proceeds from the offering (i) to repay $640 million of the outstanding principal amount under the Term Loan, and (ii) for general corporate purposes. On June 1, 2020, as a result of the F&G acquisition, we assumed $550 million aggregate principal amount of 5.50% senior notes due 2025 (the "5.50% F&G Notes"), originally issued on April 20, 2018 at 99.5% of face value for proceeds of $547 million. On August 13, 2018, we completed an offering of $450 million in aggregate principal amount of 4.50% notes due August 2028 (the "4.50% Notes"), pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The 4.50% Notes were priced at 99.252% of par to yield 4.594% annual interest. We pay interest on the 4.50% Notes semi-annually on the 15th of February and August, beginning February 15, 2019. The 4.50% Notes contain customary covenants and events of default for investment grade public debt, which primarily relate to failure to make principal or interest payments. On May 16, 2019, we completed an offering to exchange the 4.50% Notes for substantially identical notes registered pursuant to Rule 424 under the Securities Act of 1933 (the "4.50% Notes Exchange"). There were no material changes to the terms of the 4.50% Notes as a result of the 4.50% Notes Exchange and all holders of the 4.50% Notes accepted the offer to exchange. On August 28, 2012, we completed an offering of $400 million in aggregate principal amount of 5.50% notes due September 2022 (the "5.50% Notes"), pursuant to an effective registration statement previously filed with the SEC. The material terms of the 5.50% Notes are set forth in our Annual Report for the year ended December 31, 2019.
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Basis of Financial Statements (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2020. |
Earnings Per Share | Earnings Per Share Basic earnings per share, as presented on the Condensed Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options, shares of restricted stock and certain other convertible share based payments, which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. Options or other instruments, which provide the ability to purchase shares of our common stock that are antidilutive, are excluded from the computation of diluted earnings per share.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740), which simplifies various aspects of the income tax accounting guidance and will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted this standard as of January 1, 2021, and it had no impact on our unaudited Condensed Consolidated Financial Statements upon adoption. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. The amendments in this update clarify that callable debt securities should be re-evaluated each reporting period to determine if the amortized cost exceeds the amount repayable by the issuer at the next earliest call date, and, if so, the excess should be amortized to the next call date. We adopted this standard as of January 1, 2021 and are applying this guidance on a prospective basis. This pronouncement had no impact on our unaudited Condensed Consolidated Financial Statements upon adoption. Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts, effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. This update introduced the following requirements: assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations; the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income; market risk benefits associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value attributable to a change in the instrument-specific credit risk being recognized in other comprehensive income; deferred acquisition costs are no longer required to be amortized in proportion to premiums, gross profits, or gross margins; instead, those balances must be amortized on a constant level basis over the expected term of the related contracts; deferred acquisition costs must be written off for unexpected contract terminations; and disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. We do not expect to early adopt this standard. We have identified specific areas that will be impacted by the new guidance and are in the process of assessing the accounting, reporting and/or process changes that will be required to comply as well as the impact of the new guidance on our consolidated financial statements.
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Revenue Recognition | Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete.Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. |
Revenue Recognition, Other | Interest and investment income consists primarily of interest recognized on fixed maturity security holdings, limited partnership returns and dividends recognized on equity and preferred security holdings, net of investment expense. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.
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Revenue Recognition, Services, Real Estate Transactions | Escrow fees and Other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions, including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Life insurance premiums in our F&G segment reflect premiums for traditional life insurance products, life-contingent immediate annuity products and life-contingent PRT products which are recognized as revenue when due from the policyholder. Insurance and investment product fees and other consist primarily of the cost of insurance fees on IUL policies, UREV on IUL policies, policy rider fees primarily on FIA policies and surrender charges assessed against policy withdrawals in excess of the policyholder's allowable penalty-free amounts. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Real estate brokerage revenues are primarily comprised of commission revenues earned in association with the facilitation of real estate transactions and are recognized upon closing of the sale of the underlying real estate transaction. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860.
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Use of Estimates, Policy | The preparation of these unaudited condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.Periodically, and at least annually, typically in the third quarter, we review the assumptions associated with reserves for policy benefits, product guarantees, and amortization of intangibles. Additionally, during the three-months ended September 30, 2021, we implemented a new actuarial valuation system. As a result, our third quarter 2021 assumption updates include model refinements and assumption updates resulting from the implementation. The system implementation and assumption review process that occurred in the three-months ended September 30, 2021, included refinements in the calculation of the fair value of the embedded derivative component of our fixed index annuities within contractholder funds and updates to the surrender rates, guaranteed minimum withdrawal benefit (“GMWB”) utilization, IUL premium persistency, maintenance expenses, and earned rate assumptions to reflect our current and expected future experience. |
Summary of Reserve for Title Claim Losses (Tables) |
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Summary of the Reserve for Claim Losses | A summary of the reserve for title claim losses follows:
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Carrying at Fair Value on Recurring Basis | The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions):
(1) Included within equity securities in the accompanying Condensed Consolidated Balance Sheets as of December 31, 2020. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
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Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of September 30, 2021 and December 31, 2020 are as follows:
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Changes in Fair Value of Financial Instruments - Assets | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2021 and 2020. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“DSI”). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
(a) The net transfers out of Level 3 during the three months ended September 30, 2021 were exclusively to Level 2.
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Changes in Fair Value of Financial Instruments - Liabilities | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2021 and 2020. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“DSI”). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
(a) The net transfers out of Level 3 during the three months ended September 30, 2021 were exclusively to Level 2.
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Schedule of Net Asset Value | The following table includes assets that have not been classified in the fair value hierarchy as the value of these investments are measured using the equity method of accounting or the net asset value ("NAV") per share practical expedient (in millions):
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Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Investments | The Company’s consolidated investments at September 30, 2021 and December 31, 2020 are summarized as follows (in millions):
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Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
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Activity in Allowance for Credit Loses of Available-for-sale Securities Aggregated by Investment Category | The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category were as follows for the three and nine-month periods ended September 30, 2021 (in millions):
(1) Purchased credit deteriorated financial assets ("PCD")
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Summary of Purchased Credit-Deteriorated Available for Sale Securities | The following table summarizes purchases of PCD AFS securities during the three and nine-month periods ended September 30, 2021 (in millions).
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Fair Value and Gross Unrealized Losses of Available-for-sale Securities | The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of September 30, 2021 and December 31, 2020 were as follows (dollars in millions):
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Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions):
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Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at September 30, 2021 (dollars in millions):
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Schedule of Residential Mortgage Loans by State | The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables (dollars in millions):
(1) The individual concentration of each state is equal to or less than 9% as of September 30, 2021.
(1) The individual concentration of each state is less than 8% as of December 31, 2020.
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Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as of September 30, 2021, was as follows (dollars in millions):
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Loans Segregated by Risk Rating Exposure | Loans segregated by risk rating exposure as of September 30, 2021 and December 31, 2020, were as follows (in millions):
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Financing Receivable, Nonaccrual | Non-accrual loans by amortized cost as of September 30, 2021 and December 31, 2020, were as follows:
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Allowance for Expected Credit Losses on Loans | Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. The allowances for our mortgage loan portfolio is summarized as follows:
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Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions):
Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions):
(1) Change in fair value of reinsurance related embedded derivatives is due to held for sale unaffiliated third party business under the fair value option election, and activity related to the FGL Insurance and Kubera reinsurance treaty. (2) Includes net valuation (losses) gains of $(194) million and less than $1 million for the three months ended September 30, 2021 and 2020, respectively, and net valuation losses of $(285) million and $56 million for the nine months ended September 30, 2021 and 2020, respectively. (3) Includes net valuation (losses) gains of $(1) million and $18 million for the three months ended September 30, 2021 and 2020, respectively, and net valuation gains of $4 million and $(55) million for the nine months ended September 30, 2021 and 2020, respectively.
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Proceeds from Sale of Fixed Maturity Available-for-sale Securities | The proceeds from the sale of fixed-maturity available for-sale-securities and the gross gains and losses associated with those transactions were as follows (in millions):
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Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs | The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of September 30, 2021 and December 31, 2020.
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Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA and reinsurance contracts, as of September 30, 2021 and December 31, 2020 is as follows (in millions):
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Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Earnings is as follows (in millions):
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Exposure to Credit Loss on Call Options Held | Information regarding our exposure to credit loss on the call options we hold as of September 30, 2021 and December 31, 2020, is presented in the following table (in millions):
(1) An * represents credit ratings that were not available.
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unfunded Commitments | A summary of unfunded commitments by invested asset class as of September 30, 2021 is included below (in millions):
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | Summarized financial information concerning our reportable segments is shown in the following tables. On June 1, 2020, we completed our acquisition of F&G. As a result, the tables for the nine months ended September 30, 2020 present four months of F&G activity. As of and for the three months ended September 30, 2021:
As of and for the three months ended September 30, 2020:
As of and for the nine months ended September 30, 2021:
As of and for the nine months ended September 30, 2020:
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Supplemental Cash Flow Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities.
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Revenue Recognition (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Our revenue consists of:
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Information about Trade Receivables and Deferred Revenue | The following table provides information about trade receivables and deferred revenue:
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Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes Intangible Assets, VOBA and DAC DSI | A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets are as follows (in millions):
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Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the inforce liabilities as of September 30, 2021, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions):
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F&G Reinsurance (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes | The effect of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three and nine months ended September 30, 2021 and the three and four months ended September 30, 2020 (following our June 1, 2020 acquisition of F&G) were as follows (in millions):
|
Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Initial Purchase Price | The purchase price is as follows (in millions):
|
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Schedule of Assets Acquired and Liabilities Assumed | The final purchase price allocation is as follows (dollars in millions):
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Gross Carrying Value and Weighted Average Useful Lives of Property and Equipment and Other Intangible Assets Acquired | The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions):
|
Notes Payable (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable | Notes payable consists of the following:
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Schedule of Principal Maturities of Notes Payable |
|
Basis of Financial Statements - Recent Developments (Details) - USD ($) $ / shares in Units, shares in Thousands |
1 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 17, 2021 |
Aug. 03, 2021 |
Oct. 31, 2021 |
Jun. 30, 2021 |
Sep. 30, 2021 |
Jun. 29, 2021 |
Mar. 30, 2021 |
Jan. 25, 2021 |
Dec. 31, 2020 |
Dec. 07, 2020 |
|
Business Acquisition [Line Items] | ||||||||||
Stock repurchase program, period | 3 years | |||||||||
Stock repurchase program, number of shares authorized to be repurchased | 25,000 | |||||||||
Subscriber fee, percentage | 2.50% | |||||||||
Funding agreement backed note, maximum authorized amount | $ 5,000,000,000.0 | |||||||||
Funding agreement backed note, amount outstanding | $ 1,900,000,000 | |||||||||
Pension obligations | 3,985,000,000 | $ 4,010,000,000 | ||||||||
Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Pension risk transfer, pension obligations | $ 564,000,000 | |||||||||
Pension Risk Transfer | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Pension risk transfer, pension obligations | $ 371,000,000 | |||||||||
FTAC Subscription Agreements | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Subscription agreements, investment | $ 150,000,000 | |||||||||
Subscription agreements, stock purchase, par value (in usd per share) | $ 0.001 | |||||||||
Subscription agreements, stock purchase, share price (in usd per share) | $ 10.00 | |||||||||
Paysafe Limited | Subscription Agreements with Paysafe Limited and Foley Trasimene Acquisition Corp. II | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Subscription agreements, investment | $ 500,000,000 | |||||||||
Subscription agreements, stock purchase, par value (in usd per share) | $ 0.001 | |||||||||
Subscription agreements, stock purchase, share price (in usd per share) | $ 10.00 | |||||||||
Subscriber fee, percentage | 1.60% | |||||||||
Subscriptions funded, shares received (in shares) | 50,000 | |||||||||
Subscription agreements, ownership interest after purchase, percent | 7.00% | |||||||||
3.20% Notes | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 3.20% | 3.20% | ||||||||
Aggregate principal amount | $ 450,000,000 | |||||||||
Proceeds from issuance of senior notes | $ 443,000,000 |
Basis of Financial Statements - Income Tax (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Income tax expense | $ 213 | $ 133 | $ 555 | $ 194 |
Income tax expense as percentage of earnings before income taxes, percent | 23.00% | 25.00% | 23.00% | 23.00% |
Basis of Financial Statements - Earnings Per Share (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Antidilutive securities excluded from computation of EPS, less than in 2021 (in shares) | 1 | 2 | 1 | 1 |
Basis of Financial Statements -Management Estimates (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Future policy reserves | $ (3,985) | $ (4,010) | ||
Intangibles assets | (1,891) | $ (1,724) | $ (1,762) | $ 0 |
Change in Accounting Method Accounted for as Change in Estimate | ||||
Business Acquisition [Line Items] | ||||
Future policy reserves | 425 | |||
Intangibles assets | 136 | |||
Liability for guaranteed minimum withdrawal benefit | $ 28 |
Summary of Reserve for Title Claim Losses (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Loss Contingencies [Line Items] | ||
Change in insurance recoverable | $ (79) | $ (70) |
Title | ||
Loss Contingencies [Line Items] | ||
Beginning balance | 1,623 | 1,509 |
Change in insurance recoverable | (10) | (1) |
Claim loss provision related to: | ||
Current year | 278 | 196 |
Prior years | 0 | 0 |
Total title claim loss provision | 278 | 196 |
Claims paid, net of recoupments related to: | ||
Current year | (6) | (4) |
Prior years | (151) | (145) |
Total title claims paid, net of recoupments | (157) | (149) |
Ending balance of claim loss reserve for title insurance | $ 1,734 | $ 1,555 |
Provision for title insurance claim losses as a percentage of title insurance premiums | 4.50% | 4.50% |
Summary of Reserve for Title Claim Losses - Narrative (Details) - Pending Litigation - USD ($) $ in Millions |
Nov. 02, 2020 |
Oct. 01, 2020 |
Sep. 03, 2020 |
Jul. 07, 2020 |
Jun. 29, 2020 |
Mar. 06, 2020 |
Dec. 13, 2019 |
---|---|---|---|---|---|---|---|
Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 250 | ||||||
Wakefield Capital, LLC, Wakefield Investments, LLC, 2Budz Holding, LLC, Doug and Kristine Heidrich, and Jeff and Heidi Orr v. Chicago Title Co. and Chicago Title Ins. Co. | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 7 | ||||||
Susan Heller Fenley Separate Property Trust, Susan Heller Fenley Inherited Roth IRA, Shelley Lynn Tarditi Trust and ROJ, LLC v. Chicago Title Co., Chicago Title Ins. Co. et al | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 6 | ||||||
Yuan Yu and Polly Yu v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 1 | ||||||
Banc of California, National Association v. Laurie Peterson | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 35 | ||||||
Laurie Peterson v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 250 | ||||||
CalPrivate Bank v. Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 12 | ||||||
Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 250 | ||||||
Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co., and plaintiffs | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 75 | ||||||
CalPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co. | |||||||
Loss Contingencies [Line Items] | |||||||
Plaintiffs claim losses amount | $ 12 |
Fair Value of Financial Instruments - Carrying Amounts of Assets and Liabilities at Estimated Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets | ||
Fixed maturity securities, available for sale | $ 30,435 | $ 27,587 |
Derivative investments | 581 | 548 |
Total financial assets at fair value | 5,103 | 3,267 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 5,148 | 2,719 |
Derivative investments | 0 | 0 |
Short term investments | 333 | 769 |
Total financial assets at fair value | 8,252 | 5,311 |
Liabilities | ||
Fair value of future policy benefits | 0 | |
Derivatives: | ||
Total financial liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Derivative investments | 581 | 548 |
Short term investments | 2 | 0 |
Total financial assets at fair value | 25,947 | 25,431 |
Liabilities | ||
Fair value of future policy benefits | 0 | |
Derivatives: | ||
Total financial liabilities at fair value | 84 | 101 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Derivative investments | 0 | 0 |
Short term investments | 192 | 0 |
Total financial assets at fair value | 5,103 | 3,267 |
Liabilities | ||
Fair value of future policy benefits | 5 | |
Derivatives: | ||
Total financial liabilities at fair value | 3,439 | 3,409 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 5,148 | 2,719 |
Derivative investments | 581 | 548 |
Short term investments | 527 | 769 |
Total financial assets at fair value | 39,302 | 34,009 |
Liabilities | ||
Fair value of future policy benefits | 5 | |
Derivatives: | ||
Total financial liabilities at fair value | 3,523 | 3,510 |
Carrying Value | ||
Assets | ||
Cash and cash equivalents | 5,148 | 2,719 |
Derivative investments | 581 | 548 |
Short term investments | 527 | 769 |
Total financial assets at fair value | 39,302 | 34,009 |
Liabilities | ||
Fair value of future policy benefits | 5 | |
Derivatives: | ||
Total financial liabilities at fair value | 3,523 | 3,510 |
FIA embedded derivatives, included in contractholder funds | Level 1 | ||
Derivatives: | ||
Derivative liability | 0 | 0 |
FIA embedded derivatives, included in contractholder funds | Level 2 | ||
Derivatives: | ||
Derivative liability | 0 | 0 |
FIA embedded derivatives, included in contractholder funds | Level 3 | ||
Derivatives: | ||
Derivative liability | 3,439 | 3,404 |
FIA embedded derivatives, included in contractholder funds | Fair Value | ||
Derivatives: | ||
Derivative liability | 3,439 | 3,404 |
FIA embedded derivatives, included in contractholder funds | Carrying Value | ||
Derivatives: | ||
Derivative liability | 3,439 | 3,404 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 1 | ||
Derivatives: | ||
Derivative liability | 0 | 0 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 2 | ||
Derivatives: | ||
Derivative liability | 84 | 101 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 3 | ||
Derivatives: | ||
Derivative liability | 0 | 0 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Fair Value | ||
Derivatives: | ||
Derivative liability | 84 | 101 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Carrying Value | ||
Derivatives: | ||
Derivative liability | 84 | 101 |
Asset-backed securities | ||
Assets | ||
Fixed maturity securities, available for sale | 8,191 | 6,266 |
Asset-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
Asset-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 4,947 | 4,916 |
Asset-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 3,244 | 1,350 |
Asset-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 8,191 | 6,266 |
Asset-backed securities | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 8,191 | 6,266 |
Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available for sale | 3,024 | 2,829 |
Commercial mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 2,988 | 2,803 |
Commercial mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 36 | 26 |
Commercial mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 3,024 | 2,829 |
Commercial mortgage-backed securities | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 3,024 | 2,829 |
Corporates | ||
Assets | ||
Fixed maturity securities, available for sale | 15,177 | 14,735 |
Corporates | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 37 | 25 |
Corporates | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 14,027 | 13,421 |
Corporates | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 1,113 | 1,289 |
Corporates | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 15,177 | 14,735 |
Corporates | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 15,177 | 14,735 |
Hybrids | ||
Assets | ||
Fixed maturity securities, available for sale | 923 | 994 |
Hybrids | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 132 | 175 |
Hybrids | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 791 | 815 |
Hybrids | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 4 |
Hybrids | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 923 | 994 |
Hybrids | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 923 | 994 |
Municipals | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
Municipals | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 1,325 | 1,360 |
Municipals | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 43 | 43 |
Municipals | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 1,368 | 1,403 |
Municipals | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 1,368 | 1,403 |
Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available for sale | 741 | 825 |
Residential mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 347 | 342 |
Residential mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 394 | 483 |
Residential mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 741 | 825 |
Residential mortgage-backed securities | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 741 | 825 |
U.S. Government | ||
Assets | ||
Fixed maturity securities, available for sale | 805 | 342 |
U.S. Government | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 805 | 342 |
U.S. Government | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
U.S. Government | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
U.S. Government | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 805 | 342 |
U.S. Government | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 805 | 342 |
Foreign Governments | ||
Assets | ||
Fixed maturity securities, available for sale | 206 | 193 |
Foreign Governments | Level 1 | ||
Assets | ||
Fixed maturity securities, available for sale | 0 | 0 |
Foreign Governments | Level 2 | ||
Assets | ||
Fixed maturity securities, available for sale | 188 | 176 |
Foreign Governments | Level 3 | ||
Assets | ||
Fixed maturity securities, available for sale | 18 | 17 |
Foreign Governments | Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 206 | 193 |
Foreign Governments | Carrying Value | ||
Assets | ||
Fixed maturity securities, available for sale | 206 | 193 |
Equity securities | Level 1 | ||
Assets | ||
Equity securities | 1,349 | 791 |
Equity securities | Level 2 | ||
Assets | ||
Equity securities | 0 | 0 |
Equity securities | Level 3 | ||
Assets | ||
Equity securities | 9 | 5 |
Equity securities | Fair Value | ||
Assets | ||
Equity securities | 1,358 | 796 |
Equity securities | Carrying Value | ||
Assets | ||
Equity securities | 1,358 | 796 |
Preferred securities | ||
Assets | ||
Equity securities | 1,202 | 1,341 |
Preferred securities | Level 1 | ||
Assets | ||
Equity securities | 448 | 490 |
Preferred securities | Level 2 | ||
Assets | ||
Equity securities | 751 | 851 |
Preferred securities | Level 3 | ||
Assets | ||
Equity securities | 3 | 0 |
Preferred securities | Fair Value | ||
Assets | ||
Equity securities | 1,202 | 1,341 |
Preferred securities | Carrying Value | ||
Assets | ||
Equity securities | 1,202 | 1,341 |
Subscription agreements | Level 1 | ||
Assets | ||
Equity securities | 0 | |
Subscription agreements | Level 2 | ||
Assets | ||
Equity securities | 199 | |
Subscription agreements | Level 3 | ||
Assets | ||
Equity securities | 0 | |
Subscription agreements | Fair Value | ||
Assets | ||
Equity securities | 199 | |
Subscription agreements | Carrying Value | ||
Assets | ||
Equity securities | 199 | |
Other long-term investments | Level 1 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 2 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 3 | ||
Assets | ||
Other long-term investments | 51 | 50 |
Other long-term investments | Fair Value | ||
Assets | ||
Other long-term investments | 51 | 50 |
Other long-term investments | Carrying Value | ||
Assets | ||
Other long-term investments | $ 51 | $ 50 |
Fair Value of Financial Instruments - Narrative (Detail) |
Sep. 30, 2021
$ / Contract
|
---|---|
Other invested assets | Income-Approach | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative, strike price | 0 |
Fair Value of Financial Instruments - Quantitative Information of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis (Detail) $ in Millions |
6 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2021 |
Sep. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 5,103 | $ 3,267 | |
Liabilities, fair value | 3,439 | 3,409 | |
Fixed indexed annuities | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Liabilities, fair value | $ 3,439 | $ 3,404 | |
Minimum | Fixed indexed annuities | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Market value of option | 0.00% | 0.00% | |
Swap rates | 0.08% | 0.01% | |
Mortality multiplier | 100.00% | 100.00% | |
Surrender rates | 0.25% | 0.25% | |
Partial withdrawals | 2.00% | 2.00% | |
Non-performance spread | 0.74% | 0.30% | |
Option cost | 0.05% | 0.00% | |
Maximum | Fixed indexed annuities | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Market value of option | 67.65% | 28.41% | |
Swap rates | 1.65% | 2.41% | |
Mortality multiplier | 100.00% | 100.00% | |
Surrender rates | 55.00% | 70.00% | |
Partial withdrawals | 3.50% | 21.74% | |
Non-performance spread | 0.74% | 0.93% | |
Option cost | 16.61% | 4.97% | |
Weighted Average | Fixed indexed annuities | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Market value of option | 2.25% | 2.48% | |
Swap rates | 0.87% | 1.21% | |
Mortality multiplier | 100.00% | 100.00% | |
Surrender rates | 5.24% | 6.19% | |
Partial withdrawals | 2.58% | 2.72% | |
Non-performance spread | 0.74% | 0.62% | |
Option cost | 2.25% | 1.81% | |
Insurance Subsidiary | Minimum | Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.1060 | ||
Insurance Subsidiary | Maximum | Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.1060 | ||
Insurance Subsidiary | Weighted Average | Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.1060 | ||
Asset-backed securities | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 3,105 | $ 1,175 | |
Asset-backed securities | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 139 | 175 | |
Asset-backed securities | Minimum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 85.00% | 53.66% | |
Asset-backed securities | Minimum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 0.00% | 95.55% | |
Asset-backed securities | Maximum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 126.15% | 145.43% | |
Asset-backed securities | Maximum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 107.25% | 107.08% | |
Asset-backed securities | Weighted Average | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 103.96% | 97.03% | |
Asset-backed securities | Weighted Average | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 79.87% | 103.58% | |
Commercial mortgage-backed securities | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 36 | 26 | |
Commercial mortgage-backed securities | Minimum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 131.59% | 101.04% | |
Commercial mortgage-backed securities | Maximum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 131.59% | 127.33% | |
Commercial mortgage-backed securities | Weighted Average | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 131.59% | 117.40% | |
Corporates | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 344 | 388 | |
Corporates | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | 13 | ||
Corporates | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 756 | 901 | |
Corporates | Minimum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 75.20% | 93.33% | |
Corporates | Minimum | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt securities | 0.4400 | ||
Corporates | Minimum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 88.42% | 86.58% | |
Corporates | Maximum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 114.68% | 113.92% | |
Corporates | Maximum | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt securities | 1.0000 | ||
Corporates | Maximum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 125.83% | 121.41% | |
Corporates | Weighted Average | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 103.36% | 103.68% | |
Corporates | Weighted Average | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt securities | 0.7800 | ||
Corporates | Weighted Average | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 109.47% | 108.34% | |
Hybrids | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | 4 | ||
Hybrids | Minimum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 112.06% | ||
Hybrids | Maximum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 112.06% | ||
Hybrids | Weighted Average | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 112.06% | ||
Municipals | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 43 | 43 | |
Municipals | Minimum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 133.53% | 134.75% | |
Municipals | Maximum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 133.53% | 134.75% | |
Municipals | Weighted Average | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 133.53% | 134.75% | |
Residential mortgage-backed securities | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 394 | 483 | |
Residential mortgage-backed securities | Minimum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 112.58% | 0.00% | |
Residential mortgage-backed securities | Maximum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 112.58% | 115.44% | |
Residential mortgage-backed securities | Weighted Average | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 112.58% | 115.44% | |
Foreign Governments | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 18 | $ 17 | |
Foreign Governments | Minimum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 107.87% | 108.78% | |
Foreign Governments | Maximum | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 113.80% | 116.83% | |
Foreign Governments | Weighted Average | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 109.72% | 111.29% | |
Short-Term | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 192 | ||
Short-Term | Minimum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 100.00% | ||
Short-Term | Maximum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 100.00% | ||
Short-Term | Weighted Average | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 100.00% | ||
Equity securities | Minimum | Broker-quoted | EBITDA Multiple | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 6.6 | 6.6 | |
Equity securities | Maximum | Broker-quoted | EBITDA Multiple | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 6.6 | 6.6 | |
Equity securities | Weighted Average | Broker-quoted | EBITDA Multiple | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 6.6 | 6.6 | |
Equity securities | Insurance Subsidiary | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 3 | ||
Equity securities | Insurance Subsidiary | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | 4 | $ 3 | |
Equity securities | Insurance Subsidiary | Income-Approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 3 | $ 1 | |
Yield | 2.49% | 2.61% | |
Equity securities | Insurance Subsidiary | Black Scholes model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 2 | $ 1 | |
Equity securities | Insurance Subsidiary | Minimum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 44.00% | ||
Equity securities | Insurance Subsidiary | Minimum | Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.1337 | ||
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Risk Free Rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.0050 | 0.0029 | |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Strike Price | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 1.50 | 1.50 | |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 1.5000 | 0.0100 | |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Dividend Yield | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.0000 | 0.0000 | |
Equity securities | Insurance Subsidiary | Maximum | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 100.00% | ||
Equity securities | Insurance Subsidiary | Maximum | Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.1337 | ||
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Risk Free Rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.0050 | 0.0029 | |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Strike Price | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 1.50 | 1.50 | |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 1.5000 | 0.0100 | |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Dividend Yield | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.0000 | 0.0000 | |
Equity securities | Insurance Subsidiary | Weighted Average | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Offered quotes | 78.00% | ||
Equity securities | Insurance Subsidiary | Weighted Average | Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.1337 | ||
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Risk Free Rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.0050 | 0.0029 | |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Strike Price | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 1.50 | 1.50 | |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 1.5000 | 0.0100 | |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Dividend Yield | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities | 0.0000 | 0.0000 | |
Other long-term investments | Third-Party Valuation | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 27 | ||
Market value of fund | 100.00% | ||
Other long-term investments | Black Scholes model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 31 | ||
Market value of fund | 100.00% | ||
Credit linked note | Broker-quoted | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value | $ 20 | 23 | |
Offered quotes | 100.00% | 100.00% | |
Future policy benefits | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Liabilities, fair value | $ 5 | ||
Risk margin to reflect uncertainty | 0.50% | ||
Future policy benefits | Minimum | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Non-performance spread | 0.00% |
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2018 |
|
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | $ 4,400 | $ 2,920 | $ 3,267 | $ 138 | |
F&G Acquisition | 2,754 | ||||
Assets, Total Gains (Losses) Included in Earnings | (2) | 1 | 12 | (63) | |
Assets, Total Gains (Losses) Included in AOCI | 11 | 46 | (19) | 68 | |
Assets, Purchases | 1,417 | 128 | 2,959 | 220 | |
Assets, Sales | (111) | (1) | (119) | (1) | |
Assets, Settlements | (568) | (154) | (913) | (177) | |
Assets, Net transfer In (Out) of Level 3 | (44) | (90) | (84) | (89) | |
Balance at End of Period | 5,103 | 2,850 | 5,103 | 2,850 | |
Change in Unrealized Gains (Losses) Incl in OCI | 11 | 48 | 93 | 73 | |
Liabilities | |||||
Balance at Beginning of Period | 3,759 | 2,957 | 3,409 | 0 | |
F&G Acquisition | 2,857 | ||||
Liabilities, Total Gains (Losses) Included in Earnings | (320) | 209 | 35 | 309 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | |
Liabilities, Purchases | 0 | 0 | 0 | 0 | |
Liabilities, Sales | 0 | 0 | (4) | 0 | |
Liabilities, Settlements | 0 | 0 | (1) | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 3,439 | 3,166 | 3,439 | 3,166 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 | |
Future policy benefits | |||||
Liabilities | |||||
Balance at Beginning of Period | 5 | 5 | 0 | ||
F&G Acquisition | 5 | ||||
Liabilities, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | ||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | ||
Liabilities, Purchases | 0 | 0 | 0 | ||
Liabilities, Sales | 0 | (4) | 0 | ||
Liabilities, Settlements | 0 | (1) | 0 | ||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | ||
Balance at End of Period | 0 | 5 | 0 | 5 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | ||
FIA embedded derivatives, included in contractholder funds | |||||
Liabilities | |||||
Balance at Beginning of Period | 3,759 | 2,952 | 3,404 | 0 | |
F&G Acquisition | 2,852 | ||||
Liabilities, Total Gains (Losses) Included in Earnings | (320) | 209 | 35 | 309 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | |
Liabilities, Purchases | 0 | 0 | 0 | 0 | |
Liabilities, Sales | 0 | 0 | 0 | 0 | |
Liabilities, Settlements | 0 | 0 | 0 | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 3,439 | 3,161 | 3,439 | 3,161 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | ||
Asset-backed securities | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 2,309 | 1,016 | 1,350 | 0 | |
F&G Acquisition | 854 | ||||
Assets, Total Gains (Losses) Included in Earnings | (1) | (1) | (1) | (1) | |
Assets, Total Gains (Losses) Included in AOCI | 14 | 11 | 11 | 20 | |
Assets, Purchases | 1,188 | 118 | 2,359 | 209 | |
Assets, Sales | (97) | (1) | (97) | (1) | |
Assets, Settlements | (125) | (109) | (307) | (114) | |
Assets, Net transfer In (Out) of Level 3 | (44) | (90) | (71) | (23) | |
Balance at End of Period | 3,244 | 944 | 3,244 | 944 | |
Change in Unrealized Gains (Losses) Incl in OCI | 11 | 12 | 25 | 21 | |
Commercial mortgage-backed securities | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 25 | 26 | 26 | 0 | |
F&G Acquisition | 26 | ||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | (1) | 0 | (2) | 0 | |
Assets, Purchases | 12 | 0 | 12 | 0 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 36 | 26 | 36 | 26 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 1 | 1 | 1 | |
Corporates | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 1,201 | 1,264 | 1,289 | 17 | |
F&G Acquisition | 1,238 | ||||
Assets, Total Gains (Losses) Included in Earnings | (1) | (1) | 8 | (4) | |
Assets, Total Gains (Losses) Included in AOCI | (3) | 21 | (29) | 47 | |
Assets, Purchases | 19 | 3 | 76 | 3 | |
Assets, Sales | (14) | 0 | (22) | 0 | |
Assets, Settlements | (89) | (20) | (196) | (34) | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | (13) | 0 | |
Balance at End of Period | 1,113 | 1,267 | 1,113 | 1,267 | |
Change in Unrealized Gains (Losses) Incl in OCI | (2) | 19 | 35 | 45 | |
Hybrids | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 4 | 4 | 0 | ||
F&G Acquisition | 4 | ||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | ||
Assets, Purchases | 0 | 0 | 0 | ||
Assets, Sales | 0 | 0 | 0 | ||
Assets, Settlements | 0 | (4) | 0 | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | ||
Balance at End of Period | 0 | 4 | 0 | 4 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | ||
Municipals | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 43 | 40 | 43 | 0 | |
F&G Acquisition | 38 | ||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | 2 | 0 | 4 | |
Assets, Purchases | 0 | 0 | 0 | 0 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 43 | 42 | 43 | 42 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 2 | 7 | 5 | |
Residential mortgage-backed securities | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 443 | 509 | 483 | 0 | |
F&G Acquisition | 534 | ||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | (3) | 12 | (1) | (3) | |
Assets, Purchases | 4 | 5 | 14 | 6 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | (50) | (25) | (102) | (29) | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | (7) | |
Balance at End of Period | 394 | 501 | 394 | 501 | |
Change in Unrealized Gains (Losses) Incl in OCI | 1 | 14 | 22 | 1 | |
Foreign Governments | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 17 | 16 | 17 | 0 | |
F&G Acquisition | 16 | ||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | 1 | 0 | |
Assets, Purchases | 0 | 0 | 0 | 0 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 18 | 16 | 18 | 16 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 2 | 0 | |
Short-Term | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 303 | 0 | |||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | |||
Assets, Total Gains (Losses) Included in AOCI | 1 | 2 | |||
Assets, Purchases | 192 | 494 | |||
Assets, Sales | 0 | 0 | |||
Assets, Settlements | (304) | (304) | |||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | |||
Balance at End of Period | 192 | 192 | |||
Change in Unrealized Gains (Losses) Incl in OCI | 1 | 1 | |||
Equity securities | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 10 | 1 | 5 | 1 | |
F&G Acquisition | 1 | ||||
Assets, Total Gains (Losses) Included in Earnings | (1) | 1 | 1 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | 2 | 0 | |
Assets, Purchases | 2 | 2 | 4 | 2 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 12 | 4 | 12 | 4 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 | |
Available-for-sale embedded derivative | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 30 | 21 | 27 | 0 | |
F&G Acquisition | 20 | ||||
Assets, Total Gains (Losses) Included in Earnings | 1 | 2 | 4 | 3 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | |
Assets, Purchases | 0 | 0 | 0 | 0 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 31 | 23 | 31 | 23 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 | |
Other long-term investments | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 120 | ||||
F&G Acquisition | 0 | ||||
Assets, Total Gains (Losses) Included in Earnings | (61) | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | ||||
Assets, Purchases | 0 | ||||
Assets, Sales | 0 | ||||
Assets, Settlements | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | (59) | ||||
Balance at End of Period | 0 | 0 | |||
Change in Unrealized Gains (Losses) Incl in OCI | 0 | ||||
Credit linked note | |||||
Fixed maturity securities available-for-sale: | |||||
Balance at Beginning of Period | 19 | 23 | 23 | 0 | |
F&G Acquisition | $ 23 | ||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | (3) | 0 | |
Assets, Purchases | 0 | 0 | 0 | 0 | |
Assets, Sales | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | $ 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 20 | 23 | 20 | 23 | |
Change in Unrealized Gains (Losses) Incl in OCI | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets | ||
Trade and notes receivables, net of allowance | $ 523 | $ 437 |
Fair Value | ||
Assets | ||
FHLB common stock | 72 | 66 |
Commercial mortgage loans | 2,011 | 926 |
Residential mortgage loans | 1,473 | 1,123 |
Policy loans | 37 | 33 |
Other invested assets | 5 | 28 |
Company-owned life insurance | 327 | 305 |
Trade and notes receivables, net of allowance | 523 | 437 |
Assets, carried on Balance Sheet at amounts other than fair value | 4,448 | 2,918 |
Liabilities | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 26,953 | 21,719 |
Debt instrument | 3,247 | 2,896 |
Liabilities, carried on Balance Sheet at amounts other than fair value | 30,200 | 24,615 |
Carrying Value | ||
Assets | ||
FHLB common stock | 72 | 66 |
Commercial mortgage loans | 1,984 | 903 |
Residential mortgage loans | 1,500 | 1,128 |
Policy loans | 37 | 33 |
Other invested assets | 5 | 28 |
Company-owned life insurance | 327 | 305 |
Trade and notes receivables, net of allowance | 523 | 437 |
Assets, carried on Balance Sheet at amounts other than fair value | 4,448 | 2,900 |
Liabilities | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 30,425 | 25,199 |
Debt instrument | 3,097 | 2,662 |
Liabilities, carried on Balance Sheet at amounts other than fair value | 33,522 | 27,861 |
Level 1 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Trade and notes receivables, net of allowance | 0 | 0 |
Assets, carried on Balance Sheet at amounts other than fair value | 0 | 0 |
Liabilities | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Debt instrument | 0 | 0 |
Liabilities, carried on Balance Sheet at amounts other than fair value | 0 | 0 |
Level 2 | ||
Assets | ||
FHLB common stock | 72 | 66 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Trade and notes receivables, net of allowance | 0 | 0 |
Assets, carried on Balance Sheet at amounts other than fair value | 72 | 66 |
Liabilities | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Debt instrument | 3,247 | 2,896 |
Liabilities, carried on Balance Sheet at amounts other than fair value | 3,247 | 2,896 |
Level 3 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,011 | 926 |
Residential mortgage loans | 1,473 | 1,123 |
Policy loans | 37 | 33 |
Other invested assets | 5 | 28 |
Company-owned life insurance | 327 | 305 |
Trade and notes receivables, net of allowance | 523 | 437 |
Assets, carried on Balance Sheet at amounts other than fair value | 4,376 | 2,852 |
Liabilities | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 26,953 | 21,719 |
Debt instrument | 0 | 0 |
Liabilities, carried on Balance Sheet at amounts other than fair value | $ 26,953 | $ 21,719 |
Fair Value of Financial Instruments - NAV (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | $ 2,160 | $ 1,294 |
Fair Value Measured at Net Asset Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Equity securities (NAV) | 35 | 0 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | 138 | 146 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Fair Value Measured at Net Asset Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | $ 2,022 | $ 1,148 |
Investments - Consolidated Investments (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | $ 28,837 | $ 25,577 | |
Allowance for Expected Credit Losses | (8) | $ (13) | (19) |
Gross Unrealized Gains | 1,797 | 2,068 | |
Gross Unrealized Losses | (191) | (39) | |
Fair Value/ Carrying Value | 30,435 | 27,587 | |
Asset-backed securities | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 7,916 | 5,941 | |
Allowance for Expected Credit Losses | (3) | (4) | 0 |
Gross Unrealized Gains | 293 | 343 | |
Gross Unrealized Losses | (15) | (18) | |
Fair Value/ Carrying Value | 8,191 | 6,266 | |
Commercial mortgage-backed securities | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 2,619 | 2,490 | |
Allowance for Expected Credit Losses | (1) | (1) | 0 |
Gross Unrealized Gains | 411 | 342 | |
Gross Unrealized Losses | (5) | (3) | |
Fair Value/ Carrying Value | 3,024 | 2,829 | |
Corporates | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 14,441 | 13,582 | |
Allowance for Expected Credit Losses | 0 | (5) | (16) |
Gross Unrealized Gains | 887 | 1,184 | |
Gross Unrealized Losses | (151) | (15) | |
Fair Value/ Carrying Value | 15,177 | 14,735 | |
Hybrids | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 834 | 914 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 89 | 80 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value/ Carrying Value | 923 | 994 | |
Municipals | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 1,306 | 1,333 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 71 | 72 | |
Gross Unrealized Losses | (9) | (2) | |
Fair Value/ Carrying Value | 1,368 | 1,403 | |
Residential mortgage-backed securities | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 714 | 806 | |
Allowance for Expected Credit Losses | (4) | $ (3) | (3) |
Gross Unrealized Gains | 33 | 23 | |
Gross Unrealized Losses | (2) | (1) | |
Fair Value/ Carrying Value | 741 | 825 | |
U.S. Government | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 808 | 332 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 5 | 10 | |
Gross Unrealized Losses | (8) | 0 | |
Fair Value/ Carrying Value | 805 | 342 | |
Foreign Governments | |||
Available-for-sale securities | |||
Total fixed maturity available-for-sale securities, Amortized Cost | 199 | 179 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 8 | 14 | |
Gross Unrealized Losses | (1) | 0 | |
Fair Value/ Carrying Value | $ 206 | $ 193 |
Investments - Narrative (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021
USD ($)
investment
shares
|
Dec. 31, 2020
USD ($)
shares
|
|
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 255 | $ 235 |
FHLB collateral pledged | $ 2,278 | $ 1,622 |
Commercial mortgage loans, percentage of investments | 6.00% | |
DSC ratio, amortization period | 25 years | |
Number of investments | investment | 1 | |
Cannae Holdings Inc. | Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment owned, (in shares) | shares | 5,775,598 | 5,706,134 |
Investment owned, at fair value | $ 180 | $ 253 |
Residential mortgage loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Percentage of total investments | 100.00% | 100.00% |
Loans over 90 days past due | $ 1,524 | $ 1,159 |
Over 90 days past due | Residential mortgage loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Loans over 90 days past due | 80 | 103 |
Loans in process of foreclosure | $ 48 | 24 |
United States | ||
Debt Securities, Available-for-sale [Line Items] | ||
Residential mortgage loans, location percentage | 100.00% | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Assets held by insurance regulators | $ 21,198 | $ 16,714 |
Residential Mortgage | ||
Debt Securities, Available-for-sale [Line Items] | ||
Percentage of total investments | 4.00% |
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity available-for-sale securities, Amortized Cost | $ 28,837 | $ 25,577 |
Total fixed maturity available-for-sale securities, Fair Value | 30,435 | 27,587 |
Other Securities that Provide Periodic Payments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 11,275 | |
Other securities which provide for periodic payments, Fair Value | 11,987 | |
Corporates, Non-structured Hybrids, Municipal and Government securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 387 | |
Due after one year through five years, Amortized Cost | 2,668 | |
Due after five years through ten years, Amortized Cost | 2,593 | |
Due after ten years, Amortized Cost | 11,914 | |
Subtotal, Amortized Cost | 17,562 | |
Due in one year or less, Fair Value | 391 | |
Due after one year through five years, Fair Value | 2,758 | |
Due after five years through ten years, Fair Value | 2,683 | |
Due after ten years, Fair Value | 12,616 | |
Subtotal, Fair Value | 18,448 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 7,916 | |
Total fixed maturity available-for-sale securities, Amortized Cost | 7,916 | 5,941 |
Other securities which provide for periodic payments, Fair Value | 8,190 | |
Total fixed maturity available-for-sale securities, Fair Value | 8,191 | 6,266 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,619 | |
Total fixed maturity available-for-sale securities, Amortized Cost | 2,619 | 2,490 |
Other securities which provide for periodic payments, Fair Value | 3,024 | |
Total fixed maturity available-for-sale securities, Fair Value | 3,024 | $ 2,829 |
Structured hybrids | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 26 | |
Other securities which provide for periodic payments, Fair Value | 32 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 714 | |
Other securities which provide for periodic payments, Fair Value | $ 741 |
Investments - Allowance for Credit Loss Aggregated By Investment Category (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ (13) | $ (19) |
For credit losses on securities for which losses were not previously recorded | 0 | (1) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | (1) |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 1 |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 5 | 8 |
Recoveries of amounts previously written off | 0 | 4 |
Balance at End of Period | (8) | (8) |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (4) | 0 |
For credit losses on securities for which losses were not previously recorded | 0 | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | (1) |
(Additions) reductions in allowance recorded on previously impaired securities | 1 | (2) |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | (3) | (3) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (1) | 0 |
For credit losses on securities for which losses were not previously recorded | 0 | (1) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 0 |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | (1) | (1) |
Corporates | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (5) | (16) |
For credit losses on securities for which losses were not previously recorded | 0 | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 4 |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 5 | 8 |
Recoveries of amounts previously written off | 0 | 4 |
Balance at End of Period | 0 | 0 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (3) | (3) |
For credit losses on securities for which losses were not previously recorded | 0 | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | (1) | (1) |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | $ (4) | $ (4) |
Investments - Purchased with Credit Deterioration Available for Sale Debt Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Purchase price | $ 0 | $ 4 |
Allowance for credit losses at acquisition | 0 | 1 |
AFS purchased credit-deteriorated par value | $ 0 | $ 5 |
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions |
Sep. 30, 2021
USD ($)
security
|
Dec. 31, 2020
USD ($)
security
|
---|---|---|
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 6,781 | $ 1,550 |
Gross Unrealized Losses Less than 12 months | (161) | (39) |
Fair Value, 12 Months or longer | 409 | 36 |
Gross Unrealized Losses, 12 months or longer | (30) | 0 |
Total Fair Value | 7,190 | 1,586 |
Total Gross Unrealized Losses | $ (191) | $ (39) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | security | 916 | 222 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | security | 53 | 11 |
Total number of available-for-sale securities in an unrealized loss position | security | 969 | 233 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 1,462 | $ 477 |
Gross Unrealized Losses Less than 12 months | (10) | (18) |
Fair Value, 12 Months or longer | 121 | 0 |
Gross Unrealized Losses, 12 months or longer | (5) | 0 |
Total Fair Value | 1,583 | 477 |
Total Gross Unrealized Losses | (15) | (18) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 258 | 51 |
Gross Unrealized Losses Less than 12 months | (4) | (3) |
Fair Value, 12 Months or longer | 3 | 0 |
Gross Unrealized Losses, 12 months or longer | (2) | 0 |
Total Fair Value | 261 | 51 |
Total Gross Unrealized Losses | (6) | (3) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 4,190 | 865 |
Gross Unrealized Losses Less than 12 months | (130) | (15) |
Fair Value, 12 Months or longer | 219 | 36 |
Gross Unrealized Losses, 12 months or longer | (20) | 0 |
Total Fair Value | 4,409 | 901 |
Total Gross Unrealized Losses | (150) | (15) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 2 | 1 |
Gross Unrealized Losses Less than 12 months | 0 | 0 |
Fair Value, 12 Months or longer | 0 | 0 |
Gross Unrealized Losses, 12 months or longer | 0 | 0 |
Total Fair Value | 2 | 1 |
Total Gross Unrealized Losses | 0 | 0 |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 234 | 115 |
Gross Unrealized Losses Less than 12 months | (7) | (2) |
Fair Value, 12 Months or longer | 53 | 0 |
Gross Unrealized Losses, 12 months or longer | (2) | 0 |
Total Fair Value | 287 | 115 |
Total Gross Unrealized Losses | (9) | (2) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 55 | 30 |
Gross Unrealized Losses Less than 12 months | (1) | (1) |
Fair Value, 12 Months or longer | 11 | 0 |
Gross Unrealized Losses, 12 months or longer | (1) | 0 |
Total Fair Value | 66 | 30 |
Total Gross Unrealized Losses | (2) | (1) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 567 | 11 |
Gross Unrealized Losses Less than 12 months | (8) | 0 |
Fair Value, 12 Months or longer | 2 | 0 |
Gross Unrealized Losses, 12 months or longer | 0 | 0 |
Total Fair Value | 569 | 11 |
Total Gross Unrealized Losses | (8) | $ 0 |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 13 | |
Gross Unrealized Losses Less than 12 months | (1) | |
Fair Value, 12 Months or longer | 0 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Total Fair Value | 13 | |
Total Gross Unrealized Losses | $ (1) |
Investments - Schedule of Commercial Mortgage Loan Investment (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Jun. 01, 2020 |
---|---|---|---|---|---|---|
Schedule of Investments [Line Items] | ||||||
Allowance for expected credit loss | $ (33) | $ (34) | $ (39) | $ (35) | $ (27) | $ 0 |
Total mortgage loans | 3,484 | 2,031 | ||||
Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | 1,990 | 905 | ||||
Allowance for expected credit loss | (6) | $ (6) | (2) | $ (2) | $ (1) | $ 0 |
Total mortgage loans | $ 1,984 | $ 903 | ||||
% of Total | 100.00% | 100.00% | ||||
East North Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 50 | $ 61 | ||||
% of Total | 3.00% | 7.00% | ||||
East South Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 80 | $ 80 | ||||
% of Total | 4.00% | 9.00% | ||||
Middle Atlantic | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 246 | $ 100 | ||||
% of Total | 11.00% | 11.00% | ||||
Mountain | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 171 | $ 48 | ||||
% of Total | 9.00% | 5.00% | ||||
New England | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 144 | $ 79 | ||||
% of Total | 7.00% | 9.00% | ||||
Pacific | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 630 | $ 333 | ||||
% of Total | 32.00% | 37.00% | ||||
South Atlantic | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 416 | $ 133 | ||||
% of Total | 21.00% | 15.00% | ||||
West North Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 12 | $ 13 | ||||
% of Total | 1.00% | 1.00% | ||||
West South Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 159 | $ 58 | ||||
% of Total | 8.00% | 6.00% | ||||
Various | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 82 | |||||
% of Total | 4.00% | |||||
Hotel | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 19 | $ 19 | ||||
% of Total | 1.00% | 2.00% | ||||
Industrial - General | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 486 | $ 302 | ||||
% of Total | 24.00% | 33.00% | ||||
Industrial - Warehouse | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 13 | $ 12 | ||||
% of Total | 1.00% | 1.00% | ||||
Multifamily | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 791 | $ 165 | ||||
% of Total | 40.00% | 18.00% | ||||
Office | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 127 | $ 140 | ||||
% of Total | 6.00% | 15.00% | ||||
Retail | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 303 | $ 142 | ||||
% of Total | 15.00% | 17.00% | ||||
Other | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 168 | $ 125 | ||||
% of Total | 9.00% | 14.00% | ||||
Student Housing | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross Carrying Value | $ 83 | |||||
% of Total | 4.00% |
Investments - Recorded Investment in CMLs by LTV and DSC Ratio Categories (Details) - Commercial mortgage loans - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 1,990 | $ 905 |
% of Total | 100.00% | 100.00% |
Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 2,010 | $ 927 |
% of Total | 100.00% | 100.00% |
Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 1,791 | $ 878 |
1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 33 | 27 |
Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 166 | 0 |
LTV Less Than 50 % | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 640 | $ 538 |
% of Total | 32.00% | 60.00% |
LTV Less Than 50 % | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 661 | $ 557 |
% of Total | 33.00% | 60.00% |
LTV Less Than 50 % | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 441 | $ 520 |
LTV Less Than 50 % | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 33 | 18 |
LTV Less Than 50 % | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 166 | 0 |
LTV 50 to 60% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 386 | $ 246 |
% of Total | 19.00% | 27.00% |
LTV 50 to 60% | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 394 | $ 251 |
% of Total | 20.00% | 27.00% |
LTV 50 to 60% | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 386 | $ 237 |
LTV 50 to 60% | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 0 | 9 |
LTV 50 to 60% | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
LTV 60% to 75% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 964 | $ 121 |
% of Total | 49.00% | 13.00% |
LTV 60% to 75% | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 955 | $ 119 |
% of Total | 47.00% | 13.00% |
LTV 60% to 75% | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 964 | $ 121 |
LTV 60% to 75% | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
LTV 60% to 75% | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 0 | $ 0 |
Investments - Schedule of Residential Mortgage Loan Investment (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Residential mortgage loans | ||
Unpaid Principal Balance | $ 1,527 | $ 1,165 |
% of Total | 100.00% | 100.00% |
Total Mortgage Loans | ||
Unpaid Principal Balance | $ 1,500 | $ 1,152 |
California | Residential mortgage loans | ||
Unpaid Principal Balance | $ 164 | |
% of Total | 15.00% | |
Florida | Residential mortgage loans | ||
Unpaid Principal Balance | $ 216 | $ 188 |
% of Total | 14.00% | 16.00% |
Texas | Residential mortgage loans | ||
Unpaid Principal Balance | $ 154 | |
% of Total | 10.00% | |
New Jersey | Residential mortgage loans | ||
Unpaid Principal Balance | $ 147 | $ 96 |
% of Total | 10.00% | 8.00% |
All Other States | Residential mortgage loans | ||
Unpaid Principal Balance | $ 983 | $ 704 |
% of Total | 66.00% | 61.00% |
Investments - Credit Quality of RMLs (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Jun. 01, 2020 |
---|---|---|---|---|---|---|
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Allowance for expected loan loss | $ (33) | $ (34) | $ (39) | $ (35) | $ (27) | $ 0 |
Total mortgage loans | 3,484 | 2,031 | ||||
Residential mortgage loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Carrying Value | 1,527 | 1,165 | ||||
Allowance for expected loan loss | (27) | $ (28) | (37) | $ (33) | $ (26) | $ 0 |
Total mortgage loans | $ 1,500 | $ 1,128 | ||||
Allowance % of Total | 0.00% | 0.00% | ||||
% of Total | 100.00% | 100.00% | ||||
Residential mortgage loans | Performing | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Carrying Value | $ 1,429 | $ 1,059 | ||||
% of Total | 94.00% | 91.00% | ||||
Residential mortgage loans | Non-performing | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Carrying Value | $ 98 | $ 106 | ||||
% of Total | 6.00% | 9.00% |
Investments - Loans Segregated by Risk Rating (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Amortized cost of loans on non-accrual | ||
Total non-accrual loans | $ 80 | $ 99 |
Residential mortgages | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 633 | 339 |
2020 | 353 | 641 |
2019 | 421 | 73 |
2018 | 59 | 42 |
2017 | 37 | 62 |
Prior | 21 | 2 |
Total | 1,524 | 1,159 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 633 | 339 |
2019 | 353 | 641 |
2018 | 421 | 73 |
2017 | 59 | 42 |
2016 | 37 | 62 |
Prior | 21 | 2 |
Total | 1,524 | 1,159 |
Amortized cost of loans on non-accrual | ||
Total non-accrual loans | 80 | 99 |
Residential mortgages | Current (less than 30 days past due) | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 623 | 311 |
2020 | 310 | 545 |
2019 | 334 | 68 |
2018 | 56 | 42 |
2017 | 36 | 62 |
Prior | 19 | 2 |
Total | 1,378 | 1,030 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 623 | 311 |
2019 | 310 | 545 |
2018 | 334 | 68 |
2017 | 56 | 42 |
2016 | 36 | 62 |
Prior | 19 | 2 |
Total | 1,378 | 1,030 |
Residential mortgages | 30-89 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 10 | 2 |
2020 | 14 | 22 |
2019 | 39 | 2 |
2018 | 0 | 0 |
2017 | 1 | 0 |
Prior | 2 | 0 |
Total | 66 | 26 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 10 | 2 |
2019 | 14 | 22 |
2018 | 39 | 2 |
2017 | 0 | 0 |
2016 | 1 | 0 |
Prior | 2 | 0 |
Total | 66 | 26 |
Residential mortgages | Over 90 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 0 | 26 |
2020 | 29 | 74 |
2019 | 48 | 3 |
2018 | 3 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 80 | 103 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 0 | 26 |
2019 | 29 | 74 |
2018 | 48 | 3 |
2017 | 3 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total | 80 | 103 |
Commercial mortgages | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 1,111 | 542 |
2020 | 543 | 0 |
2019 | 0 | 6 |
2018 | 6 | 0 |
2017 | 0 | 11 |
Prior | 330 | 346 |
Total | 1,990 | 905 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 1,111 | 542 |
2019 | 543 | 0 |
2018 | 0 | 6 |
2017 | 6 | 0 |
2016 | 0 | 11 |
Prior | 330 | 346 |
Total | 1,990 | 905 |
Amortized cost of loans on non-accrual | ||
Total non-accrual loans | 0 | 0 |
Commercial mortgages | Greater than 1.25x | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 1,079 | 542 |
2020 | 417 | 0 |
2019 | 0 | 6 |
2018 | 4 | 0 |
2017 | 0 | 11 |
Prior | 290 | 319 |
Total | 1,790 | 878 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 1,079 | 542 |
2019 | 417 | 0 |
2018 | 0 | 6 |
2017 | 4 | 0 |
2016 | 0 | 11 |
Prior | 290 | 319 |
Total | 1,790 | 878 |
Commercial mortgages | 1.00x - 1.25x | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 2 | 0 |
2017 | 0 | 0 |
Prior | 31 | 27 |
Total | 33 | 27 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 2 | 0 |
2016 | 0 | 0 |
Prior | 31 | 27 |
Total | 33 | 27 |
Commercial mortgages | Less than 1.00x | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 32 | 0 |
2020 | 126 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 9 | 0 |
Total | 167 | 0 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 32 | 0 |
2019 | 126 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 9 | 0 |
Total | 167 | 0 |
Commercial mortgages | LTV Less Than 50 % | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 85 | 228 |
2020 | 229 | 0 |
2019 | 0 | 6 |
2018 | 6 | 0 |
2017 | 0 | 0 |
Prior | 320 | 303 |
Total | 640 | 537 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 85 | 228 |
2019 | 229 | 0 |
2018 | 0 | 6 |
2017 | 6 | 0 |
2016 | 0 | 0 |
Prior | 320 | 303 |
Total | 640 | 537 |
Commercial mortgages | LTV 50 to 60% | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 184 | 192 |
2020 | 192 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 11 |
Prior | 10 | 43 |
Total | 386 | 246 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 184 | 192 |
2019 | 192 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 11 |
Prior | 10 | 43 |
Total | 386 | 246 |
Commercial mortgages | LTV 60% to 75% | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 842 | 122 |
2020 | 122 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 964 | 122 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 842 | 122 |
2019 | 122 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total | 964 | 122 |
Commercial mortgages | Current (less than 30 days past due) | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 1,111 | 542 |
2020 | 543 | 0 |
2019 | 0 | 6 |
2018 | 6 | 0 |
2017 | 0 | 11 |
Prior | 330 | 346 |
Total | 1,990 | 905 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 1,111 | 542 |
2019 | 543 | 0 |
2018 | 0 | 6 |
2017 | 6 | 0 |
2016 | 0 | 11 |
Prior | 330 | 346 |
Total | 1,990 | 905 |
Commercial mortgages | 30-89 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Commercial mortgages | Over 90 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total | $ 0 | $ 0 |
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2021 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 34 | $ 27 | $ 39 | |
Provision for loan losses | (1) | 8 | $ 28 | (6) |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 | 7 | ||
Ending Balance | 33 | 35 | 35 | 33 |
Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 28 | 26 | 37 | |
Provision for loan losses | (1) | 7 | 26 | (10) |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 | 7 | ||
Ending Balance | 27 | 33 | 33 | 27 |
Commercial Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 6 | 1 | 2 | |
Provision for loan losses | 0 | 1 | 2 | 4 |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 | 0 | ||
Ending Balance | $ 6 | $ 2 | $ 2 | $ 6 |
Investments - Interest and Investment Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 551 | $ 367 | $ 1,549 | $ 584 |
Investment expense | (43) | (31) | (125) | (43) |
Interest and investment income | 508 | 336 | 1,424 | 541 |
Fixed maturity securities, available-for-sale | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 313 | 286 | 944 | 419 |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 6 | 5 | 16 | 14 |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 13 | 15 | 45 | 40 |
Mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 34 | 24 | 90 | 31 |
Invested cash and short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 4 | 0 | 5 | 8 |
Limited partnerships | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 168 | 25 | 412 | 25 |
Tax deferred property exchange income | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 4 | 5 | 13 | 28 |
Other investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 9 | $ 7 | $ 24 | $ 19 |
Investments - Recognized Gains (Losses), net (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Schedule of Investments [Line Items] | ||||
Net realized gains on fixed maturity available-for-sale securities | $ 22 | $ 20 | $ 75 | $ 36 |
Realized gains (losses) on other invested assets | 0 | (10) | 8 | (23) |
Change in allowance for expected credit losses | 1 | (11) | 7 | (35) |
Realized gains on certain derivative instruments | 138 | 30 | 318 | 39 |
Unrealized (losses) gains on certain derivative instruments | (141) | 16 | (34) | 21 |
Change in fair value of reinsurance related embedded derivatives | 23 | (14) | 23 | (35) |
Change in fair value of other derivatives and embedded derivatives | 0 | 2 | 3 | 3 |
Realized gains on derivatives and embedded derivatives | 20 | 34 | 310 | 28 |
Recognized gains and losses, net | (154) | 73 | 121 | (85) |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized (losses) gains on securities | (193) | (6) | (281) | (63) |
Valuation (losses) gains | 194 | (1) | 285 | (56) |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized (losses) gains on securities | (4) | 46 | 2 | (28) |
Valuation (losses) gains | $ 1 | $ (18) | $ (4) | $ 55 |
Investments - Proceeds From the Sale of Fixed-Maturity Available-For-Sale Securities (Details) - Total fixed maturities - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds | $ 1,816 | $ 493 | $ 2,685 | $ 1,007 |
Gross gains | 30 | 24 | 98 | 53 |
Gross losses | $ (8) | $ (5) | $ (24) | $ (12) |
Investments - VIE (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Schedule of Investments [Line Items] | ||
Carrying Value | $ 13,950 | $ 11,029 |
Maximum Loss Exposure | 15,159 | 11,063 |
Limited Partnerships | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 2,022 | 1,156 |
Maximum Loss Exposure | 2,950 | 1,550 |
Fixed Maturity Securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 11,928 | 9,873 |
Maximum Loss Exposure | $ 12,209 | $ 9,513 |
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative [Line Items] | ||
Total asset derivatives | $ 611 | $ 575 |
Total liability derivatives | 3,523 | 3,505 |
Call options | Derivative investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 580 | 548 |
Futures contracts | Derivative investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 0 | 0 |
Foreign currency forward | Derivative investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 1 | 0 |
Other embedded derivatives | Other long-term investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 30 | 27 |
FIA embedded derivative | Contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | 3,439 | 3,404 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Accounts payable and accrued liabilities: | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 84 | $ 101 |
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Derivative [Line Items] | |||||
Change in fair value of derivatives | $ 23 | $ (14) | $ 23 | $ (35) | |
Net investment gains (losses) | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | 19 | 34 | $ 28 | 309 | |
Call options | Net investment gains (losses) | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | (6) | 43 | 55 | 273 | |
Futures contracts | Net investment gains (losses) | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | 0 | 7 | 9 | 4 | |
Foreign currency forward | Net investment gains (losses) | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | 3 | (4) | (4) | 7 | |
Other embedded derivatives | Net investment gains (losses) | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | (1) | 2 | 3 | 2 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Net investment gains (losses) | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | 23 | (14) | (35) | 23 | |
FIA embedded derivative | |||||
Derivative [Line Items] | |||||
Change in fair value of derivatives | $ (320) | $ 209 | $ 309 | $ 35 |
Derivative Financial Instruments - Narrative (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021
USD ($)
contract
|
Dec. 31, 2020
USD ($)
contract
|
|
Embedded derivatives | ||
Derivative [Line Items] | ||
Term of contract, term one | 1 year | |
Term of contract, term two | 2 years | |
Term of contract, term three | 3 years | |
Term of contract, term four | 5 years | |
Call options | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 582 | $ 491 |
Maximum amount of loss due to credit risk | 40 | 58 |
Call options | Derivatives for Trading and Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | 582 | 491 |
Maximum amount of loss due to credit risk | 40 | 58 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 429 | $ 415 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 354,000,000 | 384,000,000 |
Collateral held | $ 3 | $ 4 |
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 611 | $ 575 |
Not Designated as Hedging Instrument | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 18,515 | 15,909 |
Fair Value | 580 | 548 |
Collateral | 582 | 491 |
Maximum amount of loss due to credit risk | 40 | 58 |
Not Designated as Hedging Instrument | Call options | Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,180 | 1,932 |
Fair Value | 67 | 75 |
Collateral | 27 | 32 |
Maximum amount of loss due to credit risk | 40 | 43 |
Not Designated as Hedging Instrument | Call options | Morgan Stanley | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,051 | 1,503 |
Fair Value | 61 | 40 |
Collateral | 67 | 41 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Barclay's Bank | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,508 | 4,639 |
Fair Value | 154 | 180 |
Collateral | 165 | 169 |
Maximum amount of loss due to credit risk | 0 | 11 |
Not Designated as Hedging Instrument | Call options | Canadian Imperial Bank of Commerce | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,499 | 2,276 |
Fair Value | 87 | 86 |
Collateral | 94 | 85 |
Maximum amount of loss due to credit risk | 0 | 1 |
Not Designated as Hedging Instrument | Call options | Wells Fargo | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,575 | 2,900 |
Fair Value | 87 | 106 |
Collateral | 90 | 105 |
Maximum amount of loss due to credit risk | 0 | 1 |
Not Designated as Hedging Instrument | Call options | Goldman Sachs | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 383 | 634 |
Fair Value | 11 | 15 |
Collateral | 13 | 15 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Credit Suisse | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,184 | 1,373 |
Fair Value | 78 | 27 |
Collateral | 89 | 25 |
Maximum amount of loss due to credit risk | 0 | 2 |
Not Designated as Hedging Instrument | Call options | Truist | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,135 | 652 |
Fair Value | 35 | 19 |
Collateral | 37 | 19 |
Maximum amount of loss due to credit risk | $ 0 | $ 0 |
Commitments and Contingencies - Narrative (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Aug. 17, 2020
shares
|
Sep. 30, 2021
USD ($)
director
lawsuit
|
Dec. 31, 2020
USD ($)
|
|
Other Commitments [Line Items] | |||
Estimated litigation liability | $ | $ 12 | $ 13 | |
Number of Board of Directors on the litigation committee | director | 3 | ||
Matter of FGL Holdings | |||
Other Commitments [Line Items] | |||
Number of lawsuits filed | lawsuit | 2 | ||
Number of shares in which statutory appraisal rights have been claimed (in shares) | shares | 12,000,000 |
Commitments and Contingencies - Schedule of Investment Commitments (Details) - Commitment to Invest $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 2,255 |
Limited partnerships | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 928 |
Whole loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 741 |
Fixed Maturity securities, ABS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 247 |
Other fixed maturity securities, AFS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 105 |
Commercial mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 109 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 111 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 14 |
Dividends (Details) - $ / shares |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 02, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Subsequent Event [Line Items] | |||||
Cash dividend per common share (in dollars per share) | $ 0.40 | $ 0.33 | $ 1.12 | $ 0.99 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividend per common share (in dollars per share) | $ 0.44 |
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Segment Reporting Information [Line Items] | |||||
Title premiums | $ 2,214 | $ 1,714 | $ 6,178 | $ 4,351 | |
Other revenues | 1,324 | 853 | 3,123 | 2,201 | |
Revenues from external customers | 3,538 | 2,567 | 9,301 | 6,552 | |
Interest and investment income, including recognized gains and losses, net | 354 | 409 | 1,545 | 456 | |
Total revenues | 3,892 | 2,976 | 10,846 | 7,008 | |
Depreciation and amortization | 252 | 100 | 540 | 189 | |
Interest expense | 27 | 29 | 83 | 62 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 926 | 539 | 2,396 | 854 | |
Income tax expense (benefit) | 213 | 133 | 555 | 194 | |
Earnings before equity in earnings of unconsolidated affiliates | 713 | 406 | 1,841 | 660 | |
Equity in earnings (loss) of unconsolidated affiliates | 27 | 7 | 54 | 9 | |
Net earnings (loss) from continuing operations | 740 | 413 | 1,895 | 669 | |
Assets | 58,506 | 49,885 | 58,506 | 49,885 | $ 50,455 |
Goodwill | 4,515 | 4,458 | 4,515 | 4,458 | $ 4,495 |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 0 | 0 | 0 | 0 | |
Other revenues | 44 | 51 | 133 | 114 | |
Revenues from external customers | 44 | 51 | 133 | 114 | |
Interest and investment income, including recognized gains and losses, net | 0 | (1) | 9 | (3) | |
Total revenues | 44 | 50 | 142 | 111 | |
Depreciation and amortization | 6 | 5 | 18 | 17 | |
Interest expense | 21 | 22 | 62 | 51 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | (32) | (40) | (98) | (142) | |
Income tax expense (benefit) | (9) | (2) | (23) | (38) | |
Earnings before equity in earnings of unconsolidated affiliates | (23) | (38) | (75) | (104) | |
Equity in earnings (loss) of unconsolidated affiliates | 1 | 2 | 6 | 1 | |
Net earnings (loss) from continuing operations | (22) | (36) | (69) | (103) | |
Assets | 1,789 | 1,062 | 1,789 | 1,062 | |
Goodwill | 266 | 266 | 266 | 266 | |
Operating Segments | Title | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 2,214 | 1,714 | 6,178 | 4,351 | |
Other revenues | 849 | 742 | 2,433 | 2,007 | |
Revenues from external customers | 3,063 | 2,456 | 8,611 | 6,358 | |
Interest and investment income, including recognized gains and losses, net | (142) | 28 | (175) | (27) | |
Total revenues | 2,921 | 2,484 | 8,436 | 6,331 | |
Depreciation and amortization | 36 | 39 | 103 | 113 | |
Interest expense | 0 | 0 | 0 | 1 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 486 | 507 | 1,569 | 982 | |
Income tax expense (benefit) | 126 | 129 | 389 | 240 | |
Earnings before equity in earnings of unconsolidated affiliates | 360 | 378 | 1,180 | 742 | |
Equity in earnings (loss) of unconsolidated affiliates | 26 | 5 | 48 | 8 | |
Net earnings (loss) from continuing operations | 386 | 383 | 1,228 | 750 | |
Assets | 9,994 | 9,107 | 9,994 | 9,107 | |
Goodwill | 2,493 | 2,461 | 2,493 | 2,461 | |
Operating Segments | F&G | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 0 | 0 | 0 | 0 | |
Other revenues | 431 | 60 | 557 | 80 | |
Revenues from external customers | 431 | 60 | 557 | 80 | |
Interest and investment income, including recognized gains and losses, net | 496 | 382 | 1,711 | 486 | |
Total revenues | 927 | 442 | 2,268 | 566 | |
Depreciation and amortization | 210 | 56 | 419 | 59 | |
Interest expense | 6 | 7 | 21 | 10 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 472 | 72 | 925 | 14 | |
Income tax expense (benefit) | 96 | 6 | 189 | (8) | |
Earnings before equity in earnings of unconsolidated affiliates | 376 | 66 | 736 | 22 | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Net earnings (loss) from continuing operations | 376 | 66 | 736 | 22 | |
Assets | 46,723 | 39,716 | 46,723 | 39,716 | |
Goodwill | $ 1,756 | $ 1,731 | $ 1,756 | $ 1,731 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Cash paid for: | ||
Interest | $ 85 | $ 47 |
Income taxes | 488 | 191 |
Deferred sales inducements | 65 | 25 |
Non-cash investing and financing activities: | ||
Equity financing associated with the acquisition of F&G | 0 | 609 |
Change in proceeds of sales of investments available for sale receivable in period | (215) | (67) |
Change in purchases of investments available for sale payable in period | 465 | 93 |
Lease liabilities recognized in exchange for lease right-of-use assets | 32 | 39 |
Remeasurement of lease liabilities | $ 65 | $ 39 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 737 | $ 666 | $ 2,148 | $ 1,728 |
Interest and investment income | 508 | 336 | 1,424 | 541 |
Recognized gains and losses, net | (154) | 73 | 121 | (85) |
Total revenues | 3,892 | 2,976 | 10,846 | 7,008 |
Title | ||||
Disaggregation of Revenue [Line Items] | ||||
Loan subservicing revenue | 99 | 76 | 274 | 253 |
Title | Direct title insurance premiums | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 896 | 733 | 2,546 | 1,854 |
Title | Agency title insurance premiums | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,318 | 981 | 3,632 | 2,497 |
Title | Home warranty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 57 | 51 | 144 | 140 |
Title | Insurance contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2,702 | 1,825 | 6,879 | 4,571 |
Title | Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 359 | 334 | 1,057 | 814 |
Title | Other title-related fees and income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 226 | 189 | 663 | 516 |
Title | ServiceLink, excluding title premiums, escrow fees, and subservicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 108 | 92 | 295 | 284 |
F&G | Life Insurance Premiums, Insurance and Investment Product Fees, Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 431 | 60 | 557 | 80 |
Corporate and other | Real estate technology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 37 | 29 | 105 | 81 |
Corporate and other | Real estate brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 7 | 0 | 19 |
Corporate and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 7 | $ 15 | $ 28 | $ 14 |
Revenue Recognition - Information about Receivables and Deferred Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 484 | $ 484 | $ 404 |
Deferred revenue (contract liabilities) | 108 | $ 108 | $ 117 |
Policy period | 1 year | ||
Revenue recognized | $ 56 | $ 87 |
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Summary of Changes in Carrying Amounts of Intangible Assets Including DAC, VOBA and DSI (Detail) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Total | ||
Balance at beginning of period | $ 1,724 | $ 0 |
F&G acquisition | 1,903 | |
Deferrals | 492 | 155 |
Amortization | (436) | (61) |
Interest | 32 | 13 |
Unlocking | (1) | (1) |
Adjustment for net unrealized investment losses (gains) | 19 | (247) |
Purchase price allocation adjustments | 61 | |
Balance at end of period | 1,891 | 1,762 |
VOBA | ||
Total | ||
Balance at beginning of period | 1,466 | 0 |
F&G acquisition | 1,903 | |
Deferrals | 0 | 0 |
Amortization | (376) | (56) |
Interest | 23 | 12 |
Unlocking | (1) | (1) |
Adjustment for net unrealized investment losses (gains) | 38 | (228) |
Purchase price allocation adjustments | 61 | |
Balance at end of period | 1,211 | 1,630 |
DAC | ||
Total | ||
Balance at beginning of period | 222 | 0 |
F&G acquisition | 0 | |
Deferrals | 427 | 130 |
Amortization | (34) | (3) |
Interest | 8 | 1 |
Unlocking | 1 | 0 |
Adjustment for net unrealized investment losses (gains) | (18) | (15) |
Purchase price allocation adjustments | 0 | |
Balance at end of period | 606 | 113 |
DSI | ||
Total | ||
Balance at beginning of period | 36 | 0 |
F&G acquisition | 0 | |
Deferrals | 65 | 25 |
Amortization | (26) | (2) |
Interest | 1 | 0 |
Unlocking | (1) | 0 |
Adjustment for net unrealized investment losses (gains) | (1) | (4) |
Purchase price allocation adjustments | 0 | |
Balance at end of period | $ 74 | $ 19 |
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Narrative (Detail) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | $ 436 | $ 61 |
VOBA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | 376 | 56 |
Adjustment for net unrealized investment gains | $ 245 | 228 |
VOBA | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Interest accrual rate utilized to calculate accretion of interest | 0.00% | |
VOBA | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Interest accrual rate utilized to calculate accretion of interest | 4.71% | |
DAC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | $ 34 | 3 |
Adjustment for net unrealized investment gains | 44 | 15 |
Deferred sales inducement, unrealized investment gains | 6 | $ 4 |
Change in Accounting Method Accounted for as Change in Estimate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | $ 136 |
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Detail) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ (17) |
2022 | 40 |
2023 | 165 |
2024 | 159 |
2025 | 153 |
Thereafter | $ 956 |
F&G Reinsurance - Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes (Detail) - Traditional Life Insurance Premiums - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2021 |
|
Premiums and other considerations: | ||||
Direct | $ 412 | $ 48 | $ 65 | $ 500 |
Ceded | (32) | (36) | (49) | (103) |
Net | 380 | 12 | 16 | 397 |
Benefits and Other Changes in Insurance Policy Reserves: | ||||
Direct | 461 | 308 | 463 | 1,646 |
Ceded | (276) | (57) | (57) | (912) |
Net | $ 185 | $ 251 | $ 406 | $ 734 |
F&G Reinsurance - Narrative (Details) |
3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jan. 15, 2021 |
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2021
USD ($)
|
May 31, 2021
agreement
|
Dec. 31, 2020
USD ($)
|
Jun. 01, 2020
USD ($)
|
|
Ceded Credit Risk [Line Items] | ||||||||
Expected credit losses on reinsurance recoverable | $ 19,000,000 | $ 22,000,000 | $ 22,000,000 | $ 19,000,000 | $ 21,000,000 | $ 0 | ||
Credit loss, reserve (decrease) increase | $ (21,000,000) | $ 0 | $ 0 | $ (21,000,000) | ||||
Number of policies reinsured by foreign company not engaged in insurance | 0 | |||||||
Funds withheld co-insurance basis, percentage | 50.00% | |||||||
Wilton Reassurance Company | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Net amount recoverable | $ 1,287,000,000 | |||||||
Kubera Reassurance Company | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Net amount recoverable | 789,000,000 | |||||||
Aspida Re | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Net amount recoverable | 717,000,000 | |||||||
Scottish Re | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Net amount recoverable | 30,000,000 | |||||||
Pavonia Life Insurance Company | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Net amount recoverable | $ 76,000,000 | |||||||
Freestone Re Ltd | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Number of agreements executed | agreement | 2 |
F&G Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statutory Accounting Practices [Line Items] | ||
Decrease in statutory capital surplus | $ 39 | $ 144 |
Change in statutory capital surplus | (85) | |
Non-permitted statutory accounting practices | 30 | |
Statutory capital and surplus | 114 | 84 |
IOWA | ||
Statutory Accounting Practices [Line Items] | ||
Change in statutory capital surplus | $ 1 | 5 |
Non-permitted statutory accounting practices | $ (6) |
Acquisitions - Narrative (Details) - F&G - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 01, 2020 |
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Business Acquisition [Line Items] | |||
Percentage of outstanding equity acquired | 100.00% | ||
Consideration transferred | $ 2,700 | ||
Goodwill expected to be tax deductible | $ 16 | ||
Increase in intangibles | $ 61 | $ 61 | |
Decrease in reinsurance recoverable | 289 | 289 | |
Decrease in future policy benefits | 227 | 227 | |
Increase in goodwill | $ 5 | $ 5 |
Acquisitions - Consideration Paid (Details) - F&G $ in Millions |
Jun. 01, 2020
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Cash paid for outstanding F&G shares | $ 1,903 |
Less: Cash Acquired | 827 |
Net cash paid for F&G | 1,076 |
Value of FNF share consideration | 806 |
Value of outstanding converted equity awards attributed to services already rendered | 28 |
Total net consideration paid | $ 1,910 |
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 01, 2020 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 4,515 | $ 4,495 | $ 4,458 | |
F&G | ||||
Business Acquisition [Line Items] | ||||
Derivative instruments | $ 313 | |||
Mortgage loans | 1,755 | |||
Investments in unconsolidated affiliates | 1,049 | |||
Other long-term investments | 430 | |||
Short-term investments | 37 | |||
Trade and notes receivable | 1 | |||
Reinsurance recoverable | 2,998 | |||
Goodwill | 1,756 | |||
Prepaid expenses and other assets | 379 | |||
Lease assets | 8 | |||
Other intangible assets | 2,107 | |||
Deferred tax asset | 269 | |||
Assets of discontinued operations | 2,392 | |||
Total assets acquired | 36,811 | |||
Contractholder funds | 26,451 | |||
Future policy benefits | 3,871 | |||
Accounts payable and accrued liabilities | 897 | |||
Notes payable | 589 | |||
Funds withheld for reinsurance liabilities | 816 | |||
Lease liabilities | 9 | |||
Liabilities of discontinued operations | 2,268 | |||
Total liabilities assumed | 34,901 | |||
Net assets acquired | 1,910 | |||
F&G | Fixed maturity securities | ||||
Business Acquisition [Line Items] | ||||
Securities | 22,389 | |||
F&G | Preferred securities | ||||
Business Acquisition [Line Items] | ||||
Securities | 876 | |||
F&G | Equity securities | ||||
Business Acquisition [Line Items] | ||||
Securities | $ 52 |
Acquisitions - Carrying Value and Estimated Useful Lives (Details) - F&G $ in Millions |
Jun. 01, 2020
USD ($)
|
---|---|
Property, Plant and Equipment [Line Items] | |
Gross Carrying Value | $ 2,107 |
PVFP | |
Property, Plant and Equipment [Line Items] | |
Gross Carrying Value | 1,908 |
Value of distribution network acquired | |
Property, Plant and Equipment [Line Items] | |
Gross Carrying Value | $ 140 |
Weighted Average Estimated Useful Life (in years) | 15 years |
Trademarks and licenses | |
Property, Plant and Equipment [Line Items] | |
Gross Carrying Value | $ 38 |
Weighted Average Estimated Useful Life (in years) | 10 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Gross Carrying Value | $ 21 |
Weighted Average Estimated Useful Life (in years) | 2 years |
Notes Payable - Schedule of Long Term Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 17, 2021 |
Dec. 31, 2020 |
Sep. 15, 2020 |
Aug. 13, 2018 |
Aug. 28, 2012 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Notes payable | $ 3,097 | $ 2,662 | ||||
5.50% Notes, net of discount | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||
5.50% Notes, net of discount | Unsecured notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||
Notes payable | $ 444 | 443 | ||||
5.50% Notes, net of discount | Unsecured notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 5.50% | 5.50% | ||||
Notes payable | $ 399 | 399 | ||||
3.40% Notes, net of discount | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 3.40% | |||||
Notes payable | $ 643 | 643 | ||||
2.45% Notes, net of discount | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 2.45% | 2.45% | ||||
Notes payable | $ 593 | 592 | ||||
3.20% Notes, net of discount | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 3.20% | 3.20% | ||||
Notes payable | $ 443 | 0 | ||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 4 | 4 | ||||
5.50% F&G Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||
Notes payable | $ 579 | $ 589 |
Notes Payable - Narrative (Details) - USD ($) |
9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 17, 2021 |
Sep. 15, 2020 |
Jun. 12, 2020 |
Apr. 20, 2018 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
Jun. 01, 2020 |
Aug. 13, 2018 |
Aug. 28, 2012 |
|
Debt Instrument [Line Items] | ||||||||||
Outstanding principal | $ 3,100,000,000 | |||||||||
Repayment of principal borrowed | $ 0 | $ 1,000,000,000 | ||||||||
3.20% Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 450,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 3.20% | 3.20% | ||||||||
Proceeds from issuance debt | $ 443,000,000 | |||||||||
Proceeds from issuance of senior notes | $ 443,000,000 | |||||||||
Revolving Credit Facility Due April 2022 | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding principal | $ 0 | |||||||||
Debt issuance costs | $ 2,000,000 | |||||||||
Remaining borrowing capacity | $ 800,000,000 | |||||||||
2.45% Notes, net of discount | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 2.45% | 2.45% | ||||||||
Proceeds from issuance debt | $ 593,000,000 | |||||||||
Term Loan Credit Agreement | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of all outstanding indebtedness under term loan credit agreement | $ 260,000,000 | |||||||||
Repayment of principal borrowed | $ 640,000,000 | |||||||||
3.40% Notes due June 15, 2030 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 650,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 3.40% | |||||||||
Proceeds from issuance debt | $ 642,000,000 | |||||||||
5.50% F&G Senior Notes due 2025 | F&G | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 550,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||||||
Price as percent of par on offering of unsecured Notes | 99.50% | |||||||||
Proceeds from issuance of senior notes | $ 547,000,000 | |||||||||
4.50 % Notes due August 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 450,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||||
Price as percent of par on offering of unsecured Notes | 99.252% | |||||||||
Annual interest rate | 4.594% | |||||||||
4.50 % Notes due August 2028 | Unsecured notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||||
5.50% Notes Due September 2022 | Unsecured notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 400,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 5.50% | 5.50% |
Notes Payable - Principal Maturities of Notes Payable (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Maturities of Long-term Debt [Abstract] | |
2021 (remaining) | $ 0 |
2022 | 400 |
2023 | 0 |
2024 | 0 |
2025 | 550 |
Thereafter | 2,150 |
Total long term debt | $ 3,100 |
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