Investments (excluding Consolidated Investment Entities) (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Fixed Maturities

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2019:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	1,074	$	308	$	—	$	—	$	1,382	$	—
U.S. Government agencies and authorities	74		21		—		—		95		—
State, municipalities and political subdivisions	1,220		103		—		—		1,323		—
U.S. corporate public securities	12,980		1,977		19		—		14,938		—
U.S. corporate private securities	5,568		488		21		—		6,035		—
Foreign corporate public securities and foreign governments(1)	3,887		460		6		—		4,341		—
Foreign corporate private securities(1)	4,545		288		2		—		4,831		—
Residential mortgage-backed securities	4,999		200		14		19		5,204		5
Commercial mortgage-backed securities	3,402		176		4		—		3,574		—
Other asset-backed securities	2,058		22		25		—		2,055		1
Total fixed maturities, including securities pledged	39,807		4,043		91		19		43,778		6
Less: Securities pledged	1,264		154		10		—		1,408		—
Total fixed maturities	$	38,543	$	3,889	$	81	$	19	$	42,370	$	6

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $336 of net unrealized gains on impaired available-for-sale securities.

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2018:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	1,228	$	196	$	1	$	—	$	1,423	$	—
U.S. Government agencies and authorities	62		12		—		—		74		—
State, municipalities and political subdivisions	1,241		25		16		—		1,250		—
U.S. corporate public securities	14,455		721		300		—		14,876		—
U.S. corporate private securities	5,499		134		142		—		5,491		—
Foreign corporate public securities and foreign governments(1)	4,139		125		129		—		4,135		—
Foreign corporate private securities(1)	4,705		66		131		—		4,640		—
Residential mortgage-backed securities	4,143		170		47		16		4,282		7
Commercial mortgage-backed securities	2,777		27		41		—		2,763		—
Other asset-backed securities	1,688		10		40		—		1,658		2
Total fixed maturities, including securities pledged	39,937		1,486		847		16		40,592		9
Less: Securities pledged	1,436		75		49		—		1,462		—
Total fixed maturities	$	38,501	$	1,411	$	798	$	16	$	39,130	$	9

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $234 of net unrealized gains on impaired available-for-sale securities.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2019, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. MBS and Other ABS are shown separately because they are not due at a single maturity date.

	Amortized Cost		Fair Value
Due to mature:
One year or less	$	1,105	$	1,120
After one year through five years	5,391		5,638
After five years through ten years	8,014		8,667
After ten years	14,838		17,520
Mortgage-backed securities	8,401		8,778
Other asset-backed securities	2,058		2,055
Fixed maturities, including securities pledged	$	39,807	$	43,778

U.S. and Foreign Corporate Securities by Industry

The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
December 31, 2019
Communications	$	1,694	$	295	$	—	$	1,989
Financial	4,067		535		1		4,601
Industrial and other companies	11,669		1,274		16		12,927
Energy	2,819		368		27		3,160
Utilities	4,895		561		1		5,455
Transportation	1,206		116		2		1,320
Total	$	26,350	$	3,149	$	47	$	29,452
December 31, 2018
Communications	$	1,952	$	107	$	29	$	2,030
Financial	4,131		199		70		4,260
Industrial and other companies	12,707		371		330		12,748
Energy	3,180		138		117		3,201
Utilities	5,120		189		114		5,195
Transportation	1,039		27		25		1,041
Total	$	28,129	$	1,031	$	685	$	28,475

Schedule of Securities Borrowed Under Securities Lending Transactions

The following table presents borrowings under securities lending transactions by asset class pledged for the dates indicated:

	December 31, 2019 (1)(2)		December 31, 2018 (1)(2)
U.S. Treasuries	$	213	$	180
U.S. Government agencies and authorities	15		7
U.S. corporate public securities	684		813
Equity securities	—		1
Foreign corporate public securities and foreign governments	289		280
Payables under securities loan agreements	$	1,201	$	1,281

⁽¹⁾ As of December 31, 2019 and 2018, borrowings under securities lending transactions include cash collateral of $1,055 and $1,190, respectively.

⁽²⁾ As of December 31, 2019 and 2018, borrowings under securities lending transactions include non-cash collateral of $146 and $91, respectively.

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2019:

	Twelve Months or Less Below Amortized Cost					More Than Twelve Months Below Amortized Cost					Total
	Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	2	$	—	*	$	21	$	—	*	$	23	$	—	*
State, municipalities and political subdivisions	25		—		*	1		—		*	26		—		*
U.S. corporate public securities	122		3			199		16			321		19
U.S. corporate private securities	113		1			195		20			308		21
Foreign corporate public securities and foreign governments	15		—		*	103		6			118		6
Foreign corporate private securities	36		—		*	78		2			114		2
Residential mortgage-backed	730		8			194		6			924		14
Commercial mortgage-backed	472		4			18		—		*	490		4
Other asset-backed	308		5			641		20			949		25
Total	$	1,823	$	21		$	1,450	$	70		$	3,273	$	91
Total number of securities in an unrealized loss position	334					338					672

*Less than $1.

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2018:

	Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	—	$	—	$	40	$	1	$	40	$	1
State, municipalities and political subdivisions	363		7		178		9		541		16
U.S. corporate public securities	5,010		220		742		80		5,752		300
U.S. corporate private securities	2,031		56		744		86		2,775		142
Foreign corporate public securities and foreign governments	1,849		88		253		41		2,102		129
Foreign corporate private securities	1,969		101		327		30		2,296		131
Residential mortgage-backed	795		17		531		30		1,326		47
Commercial mortgage-backed	1,206		22		484		19		1,690		41
Other asset-backed	1,163		38		76		2		1,239		40
Total	$	14,386	$	549	$	3,375	$	298	$	17,761	$	847
Total number of securities in an unrealized loss position	2,177				686				2,863

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired.

The following table identifies the Company's impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:

	Year Ended December 31,
	2019				2018				2017
	Impairment			No. of Securities	Impairment			No. of Securities	Impairment			No. of Securities
State, municipalities and political subdivisions	$	—	*	8	$	—		—	$	—	*	2
U.S. corporate public securities	18			38	6			2	1			3
U.S. corporate private securities	1			18	—			—	—			—
Foreign corporate public securities and foreign governments(1)	5			22	2			3	2			3
Foreign corporate private securities(1)	26			12	15			1	15			2
Residential mortgage-backed	5			89	5			61	1			40
Other	5			128	—		*	2	1			3
Total	$	60		315	$	28		69	$	20		53
Credit Impairments	$	28			$	19			$	18
Intent Impairments	$	32			$	9			$	2

⁽¹⁾ Primarily U.S. dollar denominated.

* Less than $1

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses.

The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated:

	Year Ended December 31,
	2019		2018		2017
Balance at January 1	$	11	$	21	$	21
Additional credit impairments:
On securities not previously impaired	—		—		8
Reductions:
Securities sold, matured, prepaid or paid down	3		10		8
Balance at December 31	$	8	$	11	$	21

Schedule of Mortgage Loans Real Estate and Valuation Allowance

The following table summarizes the Company's investment in mortgage loans as of the dates indicated:

	December 31, 2019								December 31, 2018
	Impaired		Non Impaired			Total			Impaired		Non Impaired			Total
Commercial mortgage loans	$	4	$	6,875		$	6,879		$	4	$	7,279		$	7,283
Collective valuation allowance for losses	N/A		(1		)	(1		)	N/A		(2		)	(2		)
Total net commercial mortgage loans	$	4	$	6,874		$	6,878		$	4	$	7,277		$	7,281

N/A - Not Applicable

Financing Receivable, Allowance for Credit Loss

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:

	December 31, 2019			December 31, 2018
Collective valuation allowance for losses, balance at January 1	$	2		$	3
Addition to (reduction of) allowance for losses	(1		)	(1		)
Collective valuation allowance for losses, end of period	$	1		$	2

Impaired Financing Receivables

The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated:

	December 31, 2019		December 31, 2018
Impaired loans without allowances for losses	$	4	$	4
Less: Allowances for losses on impaired loans	—		—
Impaired loans, net	$	4	$	4
Unpaid principal balance of impaired loans	$	5	$	5

Interest Income Recognized on Impaired and Restructured Loans

The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated:

	Year Ended December 31,
	2019		2018		2017
Impaired loans, average investment during the period (amortized cost)(1)	$	11	$	4	$	4
Interest income recognized on impaired loans, on an accrual basis(1)	1		—		—
Interest income recognized on impaired loans, on a cash basis(1)	1		—		—
Interest income recognized on troubled debt restructured loans, on an accrual basis	—		—		—

⁽¹⁾ Includes amounts for Troubled debt restructured loans.

Loans Receivable, Grouped by Loan to Value and Debt Service Coverage Ratio

The following table presents the LTV and DSC ratios as of the dates indicated:

	Recorded Investment
	Debt Service Coverage Ratios
	> 1.5x		>1.25x - 1.5x		>1.0x - 1.25x		< 1.0x		Commercial mortgage loans secured by land or construction loans		Total		% of Total
December 31, 2019(1)
Loan-to-Value Ratios:
0% - 50%	$	650	$	24	$	11	$	2	$	—	$	687	10.0	%
>50% - 60%	1,597		53		36		37		—		1,723		25.0	%
>60% - 70%	2,669		581		329		131		—		3,710		53.9	%
>70% - 80%	384		119		121		79		—		703		10.2	%
>80% and above	33		16		—		7		—		56		0.9	%
Total	$	5,333	$	793	$	497	$	256	$	—	$	6,879	100.0	%
	Recorded Investment
	Debt Service Coverage Ratios
	> 1.5x		>1.25x - 1.5x		>1.0x - 1.25x		< 1.0x		Commercial mortgage loans secured by land or construction loans		Total		% of Total
December 31, 2018(1)
Loan-to-Value Ratios:
0% - 50%	$	553	$	39	$	26	$	2	$	—	$	620	8.5	%
>50% - 60%	1,653		57		37		6		—		1,753		24.1	%
>60% - 70%	3,106		463		631		53		32		4,285		58.8	%
>70% - 80%	324		124		93		23		4		568		7.8	%
>80% and above	18		6		10		—		23		57		0.8	%
Total	$	5,654	$	689	$	797	$	84	$	59	$	7,283	100.0	%

⁽¹⁾Balances do not include collective valuation allowance for losses.

Mortgage Loans by Geographic Location of Collateral

Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated:

	December 31, 2019			December 31, 2018
	Gross Carrying Value		% of Total	Gross Carrying Value		% of Total
Commercial Mortgage Loans by U.S. Region:
Pacific	$	1,627	23.6	$	1,699	23.3	%
South Atlantic	1,462		21.3	1,519		20.9	%
Middle Atlantic	1,326		19.3	1,351		18.6	%
West South Central	719		10.5	817		11.2	%
Mountain	670		9.7	706		9.7	%
East North Central	571		8.3	666		9.1	%
New England	117		1.7	109		1.5	%
West North Central	283		4.1	338		4.6	%
East South Central	104		1.5	78		1.1	%
Total Commercial mortgage loans	$	6,879	100.0	$	7,283	100.0	%

Mortgage Loans by Property Type of Collateral

	December 31, 2019			December 31, 2018
	Gross Carrying Value		% of Total	Gross Carrying Value		% of Total
Commercial Mortgage Loans by Property Type:
Retail	$	1,873	27.3	$	2,067	28.3	%
Industrial	1,636		23.8	1,803		24.8	%
Apartments	1,797		26.1	1,696		23.3	%
Office	999		14.5	1,144		15.7	%
Hotel/Motel	188		2.7	162		2.2	%
Other	324		4.7	347		4.8	%
Mixed Use	62		0.9	64		0.9	%
Total Commercial mortgage loans	$	6,879	100.0	$	7,283	100.0	%

Investment Income

The following table summarizes Net investment income for the periods indicated:

	Year Ended December 31,
	2019		2018		2017
Fixed maturities	$	2,241	$	2,181	$	2,138
Equity securities	11		12		8
Mortgage loans on real estate	334		335		333
Policy loans	42		47		48
Short-term investments and cash equivalents	12		14		10
Other	222		146		144
Gross investment income	2,862		2,735		2,681
Less: investment expenses	70		66		40
Net investment income	$	2,792	$	2,669	$	2,641

Realized Gain (Loss) on Investments

Net realized capital gains (losses) were as follows for the periods indicated:

	Year Ended December 31,
	2019			2018			2017
Fixed maturities, available-for-sale, including securities pledged	$	(21	)	$	(88	)	$	(13	)
Fixed maturities, at fair value option	40			(357		)	(238		)
Equity securities	(16		)	(9		)	(1		)
Derivatives	(164		)	(16		)	(2		)
Embedded derivatives - fixed maturities	3			(6		)	(10		)
Guaranteed benefit derivatives	(6		)	92			65
Other investments	(2		)	29			(10		)
Net realized capital gains (losses)	$	(166	)	$	(355	)	$	(209	)

Gain (Loss) on Securities

Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated:

	Year Ended December 31,
	2019		2018		2017
Proceeds on sales	$	4,105	$	4,162	$	4,164
Gross gains	63		29		67
Gross losses	54		82		50