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Consolidated Investment Entities (Tables)

9 Months Ended

Sep. 30, 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:


	September 30, 2020		December 31, 2019
Assets of Consolidated Investment Entities
VIEs
Cash and cash equivalents	$	84	$	68
Corporate loans, at fair value using the fair value option	921		513
Limited partnerships/corporations, at fair value	1,600		1,470
Other assets	8		12
Total VIE assets	2,613		2,063
VOEs


Limited partnerships/corporations, at fair value	—		162
Other assets	—		1
Total VOE assets	—		163
Total assets of consolidated investment entities	$	2,613	$	2,226

Liabilities of Consolidated Investment Entities
VIEs
CLO notes, at fair value using the fair value option	$	538	$	474
Other liabilities	834		650
Total VIE liabilities	1,372		1,124
VOEs
Other liabilities	—		2
Total VOE liabilities	—		2
Total liabilities of consolidated investment entities	$	1,372	$	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:


	September 30, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	46,171	$	46,171	$	43,778	$	43,778
Equity securities	371		371		196		196
Mortgage loans on real estate	6,817		7,266		6,878		7,262
Policy loans	735		735		776		776

Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	1,786		1,786		2,644		2,644
Derivatives	270		270		316		316


Other investments	285		360		320		456
Assets held in separate accounts	82,879		82,879		81,670		81,670
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(2)	$	35,331	$	45,223	$	33,916	$	41,035
Funding agreements with fixed maturities	795		795		877		877
Supplementary contracts, immediate annuities and other	914		876		821		872
Derivatives:
Guaranteed benefit derivatives(2)	177		177		60		60





Other derivatives	434		434		403		403
Short-term debt	1		1		1		1
Long-term debt	3,043		3,491		3,042		3,418

Embedded derivative on reinsurance	143		143		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:


	September 30, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	13,555	$	13,555	$	12,470	$	12,470
Equity securities	4		4		35		35
Mortgage loans on real estate	1,264		1,378		1,319		1,405
Policy loans	996		996		1,005		1,005

Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	504		504		533		533
Derivatives	314		314		305		305
Other investments	46		46		42		42
Assets held in separate accounts	1,473		1,473		1,485		1,485
Liabilities:
Investment contract liabilities:

Funding agreements with fixed maturities	$	1,010	$	1,008	$	927	$	923
Supplementary contracts, immediate annuities and other	106		99		97		104
Notes Payable	219		257		252		320
Derivatives:


Guaranteed benefit derivatives - IUL	215		215		217		217







Embedded derivative on reinsurance	95		95		75		75

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of September 30, 2020:


	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	84	$	—	$	—	$	—	$	84
Corporate loans, at fair value using the fair value option	—		921		—		—		921
Limited partnerships/corporations, at fair value	—		—		—		1,600		1,600
VOEs


Limited partnerships/corporations, at fair value	—		—		—		—		—
Total assets, at fair value	$	84	$	921	$	—	$	1,600	$	2,605
Liabilities
VIEs
CLO notes, at fair value using the fair value option	$	—	$	538	$	—	$	—	$	538
Total liabilities, at fair value	$	—	$	538	$	—	$	—	$	538

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
	September 30, 2020				December 31, 2019
	Carrying Amount		Maximum exposure to loss		Carrying Amount		Maximum exposure to loss
Fixed maturities, available-for-sale and fair value option	$	389	$	389	$	377	$	377
Limited partnership/corporations	1,383		1,383		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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