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Consolidated Investment Entities (Tables)

3 Months Ended

Mar. 31, 2020

Consolidated Investment Entities [Abstract]

Assets and Liabilities of the Consolidated Investment Entities

The following table summarizes the components of the consolidated investment entities as of the dates indicated:



	March 31, 2020		December 31, 2019
Assets of Consolidated Investment Entities
VIEs
Cash and cash equivalents	$	52	$	68
Corporate loans, at fair value using the fair value option	432		513
Limited partnerships/corporations, at fair value	1,470		1,470
Other assets	16		12
Total VIE assets	1,970		2,063
VOEs
Limited partnerships/corporations, at fair value	185		162
Other assets	—		1
Total VOE assets	185		163
Total assets of consolidated investment entities	$	2,155	$	2,226

Liabilities of Consolidated Investment Entities
VIEs
CLO notes, at fair value using the fair value option	$	368	$	474
Other liabilities	668		650
Total VIE liabilities	1,036		1,124
VOEs
Other liabilities	4		2
Total VOE liabilities	4		2
Total liabilities of consolidated investment entities	$	1,040	$	1,126

Fair Value, by Balance Sheet Grouping

The carrying values and estimated fair values of the Company's financial instruments from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, as of the dates indicated:



	March 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	41,994	$	41,994	$	43,778	$	43,778
Equity securities	176		176		196		196
Mortgage loans on real estate	6,969		7,087		6,878		7,262
Policy loans	763		763		776		776
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	3,296		3,296		2,644		2,644
Derivatives	875		875		316		316
Other investments	324		405		320		456
Assets held in separate accounts	68,937		68,937		81,670		81,670
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities⁽²⁾	$	34,989	$	42,861	$	33,916	$	41,035
Funding agreements with fixed maturities	856		829		877		877
Supplementary contracts, immediate annuities and other	799		839		821		872
Derivatives:
Guaranteed benefit derivatives⁽²⁾	253		253		60		60
Other derivatives	1,068		1,068		403		403
Short-term debt	1		1		1		1
Long-term debt	3,042		3,120		3,042		3,418
Embedded derivative on reinsurance	52		52		100		100

⁽¹⁾ Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.

⁽²⁾Includes GMWBL, GMWB, FIA, Stabilizer and MCG.

The carrying values and estimated fair values of the Company's financial instruments related to businesses held for sale as of the dates indicated:



	March 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	12,052	$	12,052	$	12,470	$	12,470
Equity securities	32		32		35		35
Mortgage loans on real estate	1,310		1,340		1,319		1,405
Policy loans	1,006		1,006		1,005		1,005
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	471		471		533		533
Derivatives	148		148		305		305
Other investments	46		46		42		42
Assets held in separate accounts	1,212		1,212		1,485		1,485
Liabilities:
Investment contract liabilities:
Funding agreements with fixed maturities	$	1,016	$	986	$	927	$	923
Supplementary contracts, immediate annuities and other	103		110		97		104
Notes Payable	252		262		252		320
Derivatives:
Guaranteed benefit derivatives - IUL	82		82		217		217
Embedded derivative on reinsurance	58		58		75		75

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of March 31, 2020:



	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	52	$	—	$	—	$	—	$	52
Corporate loans, at fair value using the fair value option	—		432		—		—		432
Limited partnerships/corporations, at fair value	—		—		—		1,470		1,470
VOEs
Limited partnerships/corporations, at fair value	—		—		—		185		185
Total assets, at fair value	$	52	$	432	$	—	$	1,655	$	2,139
Liabilities
VIEs
CLO notes, at fair value using the fair value option	$	—	$	368	$	—	$	—	$	368
Total liabilities, at fair value	$	—	$	368	$	—	$	—	$	368

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2019:



	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	68	$	—	$	—	$	—	$	68
Corporate loans, at fair value using the fair value option	—		513		—		—		513
Limited partnerships/corporations, at fair value	—		—		—		1,470		1,470
VOEs
Limited partnerships/corporations, at fair value	—		—		—		162		162
Total assets, at fair value	$	68	$	513	$	—	$	1,632	$	2,213
Liabilities
VIEs
CLO notes, at fair value using the fair value option	$	—	$	474	$	—	$	—	$	474
Total liabilities, at fair value	$	—	$	474	$	—	$	—	$	474

Maximum Exposure to Loss

The following table presents the carrying amounts of the variable interests in VIEs in which the Company concluded that it holds a variable interest, but is not the primary beneficiary as of the dates indicated. The Company determines its maximum exposure to loss to be: (i) the amount invested in the debt or equity of the VIE and (ii) other commitments and guarantees to the VIE.



Variable Interests on the Condensed Consolidated Balance Sheet
	March 31, 2020				December 31, 2019
	Carrying Amount		Maximum exposure to loss		Carrying Amount		Maximum exposure to loss
Fixed maturities, available for sale	$	339	$	339	$	377	$	377
Limited partnership/corporations	1,343		1,343		1,290		1,290

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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