XML 34 R23.htm IDEA: XBRL DOCUMENT v3.19.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2019
Financing Receivable, Recorded Investment [Line Items]  
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 



Amortized

 

Gross Unrealized

 

 

 

 

Fair

 



Cost

 

Gains

 

Losses

 

OTTI (1)

 

Value

 

Fixed maturity AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

$

 78,450

 

$

 4,625

 

$

 802

 

$

 9

 

$

 82,264

 

ABS

 

 973

 

 

 45

 

 

 5

 

 

 (17

)

 

 1,030

 

U.S. government bonds

 

 358

 

 

 34

 

 

 1

 

 

 -

 

 

 391

 

Foreign government bonds

 

 399

 

 

 50

 

 

 -

 

 

 -

 

 

 449

 

RMBS

 

 3,078

 

 

 135

 

 

 38

 

 

 (17

)

 

 3,192

 

CMBS

 

 867

 

 

 16

 

 

 3

 

 

 (4

)

 

 884

 

CLOs

 

 2,439

 

 

 4

 

 

 11

 

 

 (5

)

 

 2,437

 

State and municipal bonds

 

 4,538

 

 

 871

 

 

 7

 

 

 -

 

 

 5,402

 

Hybrid and redeemable preferred securities

 

 567

 

 

 55

 

 

 23

 

 

 -

 

 

 599

 

Total fixed maturity AFS securities

$

 91,669

 

$

 5,835

 

$

 890

 

$

 (34

)

$

 96,648

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of December 31, 2018

 



Amortized

 

Gross Unrealized

 

 

 

 

Fair

 



Cost

 

Gains

 

Losses

 

OTTI (1)

 

Value

 

Fixed maturity AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

$

 78,837

 

$

 2,871

 

$

 2,167

 

$

 (8

)

$

 79,549

 

ABS

 

 898

 

 

 42

 

 

 6

 

 

 (14

)

 

 948

 

U.S. government bonds

 

 361

 

 

 27

 

 

 2

 

 

 -

 

 

 386

 

Foreign government bonds

 

 402

 

 

 42

 

 

 -

 

 

 -

 

 

 444

 

RMBS

 

 3,099

 

 

 113

 

 

 61

 

 

 (13

)

 

 3,164

 

CMBS

 

 810

 

 

 6

 

 

 16

 

 

 (3

)

 

 803

 

CLOs

 

 1,746

 

 

 3

 

 

 24

 

 

 (5

)

 

 1,730

 

State and municipal bonds

 

 4,498

 

 

 703

 

 

 17

 

 

 -

 

 

 5,184

 

Hybrid and redeemable preferred securities

 

 568

 

 

 44

 

 

 33

 

 

 -

 

 

 579

 

Total fixed maturity AFS securities

$

 91,219

 

$

 3,851

 

$

 2,326

 

$

 (43

)

$

 92,787

 



(1)

Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date.
Available-For-Sale Securities By Contractual Maturities



 

 

 

 

 

 



 

 

 

 

 

 



Amortized

 

Fair

 



Cost

 

Value

 

Due in one year or less

$

 3,497 

 

$

 3,500 

 

Due after one year through five years

 

 15,647 

 

 

 15,945 

 

Due after five years through ten years

 

 18,848 

 

 

 19,428 

 

Due after ten years

 

 46,320 

 

 

 50,232 

 

Subtotal

 

 84,312 

 

 

 89,105 

 

Structured securities (ABS, MBS, CLOs)

 

 7,357 

 

 

 7,543 

 

Total fixed maturity AFS securities

$

 91,669 

 

$

 96,648 

 



Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 

 

Less Than or Equal

 

Greater Than

 

 

 

 

 

 

 

 



to Twelve Months

 

Twelve Months

 

Total

 



 

 

Gross 

 

 

 

Gross 

 

 

 

 

 

Gross 

 

 

 

Unrealized

 

Unrealized

 

 

 

Unrealized



Fair

Losses and

Fair

Losses and

Fair

 

Losses and



Value

 

OTTI

 

Value

 

OTTI

 

Value

 

 

OTTI

 

Fixed maturity AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

$

 4,619 

 

$

 158 

 

$

 14,037 

 

$

 661 

 

$

 18,656 

 

 

$

 819 

 

ABS

 

 73 

 

 

 1 

 

 

 165 

 

 

 12 

 

 

 238 

 

 

 

 13 

 

U.S. government bonds

 

 6 

 

 

 -

 

 

 28 

 

 

 1 

 

 

 34 

 

 

 

 1 

 

RMBS

 

 52 

 

 

 1 

 

 

 847 

 

 

 38 

 

 

 899 

 

 

 

 39 

 

CMBS

 

 9 

 

 

 -

 

 

 297 

 

 

 3 

 

 

 306 

 

 

 

 3 

 

CLOs

 

 771 

 

 

 5 

 

 

 281 

 

 

 6 

 

 

 1,052 

 

 

 

 11 

 

State and municipal bonds

 

 153 

 

 

 1 

 

 

 125 

 

 

 6 

 

 

 278 

 

 

 

 7 

 

Hybrid and redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

preferred securities

 

 10 

 

 

 2 

 

 

 149 

 

 

 21 

 

 

 159 

 

 

 

 23 

 

Total fixed maturity AFS securities

$

 5,693 

 

$

 168 

 

$

 15,929 

 

$

 748 

 

$

 21,622 

 

 

$

 916 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total number of fixed maturity AFS securities in an unrealized loss position

 

 

 

 

 

 

 1,847 

 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of December 31, 2018

 

 

Less Than or Equal

 

Greater Than

 

 

 

 

 

 

 

 



to Twelve Months

 

Twelve Months

 

Total

 



 

 

Gross 

 

 

 

Gross 

 

 

 

 

 

Gross 

 

 

 

Unrealized

 

Unrealized

 

 

 

Unrealized



Fair

Losses and

Fair

Losses and

Fair

 

Losses and



Value

 

OTTI

 

Value

 

OTTI

 

Value

 

 

OTTI

 

Fixed maturity AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

$

 30,947 

 

$

 1,464 

 

$

 7,023 

 

$

 704 

 

$

 37,970 

 

 

$

 2,168 

 

ABS

 

 113 

 

 

 2 

 

 

 136 

 

 

 13 

 

 

 249 

 

 

 

 15 

 

U.S. government bonds

 

 70 

 

 

 1 

 

 

 23 

 

 

 1 

 

 

 93 

 

 

 

 2 

 

RMBS

 

 436 

 

 

 9 

 

 

 796 

 

 

 55 

 

 

 1,232 

 

 

 

 64 

 

CMBS

 

 470 

 

 

 11 

 

 

 82 

 

 

 5 

 

 

 552 

 

 

 

 16 

 

CLOs

 

 1,124 

 

 

 21 

 

 

 103 

 

 

 3 

 

 

 1,227 

 

 

 

 24 

 

State and municipal bonds

 

 376 

 

 

 7 

 

 

 92 

 

 

 10 

 

 

 468 

 

 

 

 17 

 

Hybrid and redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

preferred securities

 

 94 

 

 

 6 

 

 

 131 

 

 

 27 

 

 

 225 

 

 

 

 33 

 

Total fixed maturity AFS securities

$

 33,630 

 

$

 1,521 

 

$

 8,386 

 

$

 818 

 

$

 42,016 

 

 

$

 2,339 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total number of fixed maturity AFS securities in an unrealized loss position

 

 

 

 

 

 

 3,360 

 



Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 



 

 

 

 

 

 

 

 

 

 

Number

 



Fair

 

Gross Unrealized

 

 

of

 



Value

 

Losses

 

OTTI

 

Securities (1)

Less than six months

$

 23 

 

$

 8 

 

$

 1 

 

 

 

 7 

 

Six months or greater, but less than nine months

 

 20 

 

 

 6 

 

 

 -

 

 

 

 4 

 

Nine months or greater, but less than twelve months

 

 98 

 

 

 42 

 

 

 -

 

 

 

 10 

 

Twelve months or greater

 

 147 

 

 

 50 

 

 

 20 

 

 

 

 32 

 

Total

$

 288 

 

$

 106 

 

$

 21 

 

 

 

 53 

 







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



As of December 31, 2018

 



 

 

 

 

 

 

 

 

 

 

Number

 



Fair

 

Gross Unrealized

 

 

of

 



Value

 

Losses

 

OTTI

 

Securities (1)

Less than six months

$

 389 

 

$

 122 

 

$

 1 

 

 

 

 44 

 

Six months or greater, but less than nine months

 

 96 

 

 

 49 

 

 

 -

 

 

 

 11 

 

Nine months or greater, but less than twelve months

 

 11 

 

 

 8 

 

 

 -

 

 

 

 2 

 

Twelve months or greater

 

 138 

 

 

 70 

 

 

 8 

 

 

 

 32 

 

Total

$

 634 

 

$

 249 

 

$

 9 

 

 

 

 89 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

We may reflect a security in more than one aging category based on various purchase dates.    
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)



 

 

 

 

 

 



 

 

 

 

 

 



For the Three

 



Months Ended

 



March 31,

 



2019

 

2018

 

Balance as of beginning-of-year

$

 337

 

$

 358

 

Increases attributable to:

 

 

 

 

 

 

Credit losses on securities for which an

 

 

 

 

 

 

OTTI was not previously recognized

 

 6

 

 

 2

 

Credit losses on securities for which an

 

 

 

 

 

 

OTTI was previously recognized

 

 2

 

 

 -

 

Decreases attributable to:

 

 

 

 

 

 

Securities sold, paid down or matured

 

 (5

)

 

 (1

)

Balance as of end-of-period

$

 340

 

$

 359

 



Composition Of Current And Past Due Mortgage Loans On Real Estate



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 

As of December 31, 2018

 



Commercial

 

Residential

 

Total

 

Commercial

 

Residential

 

Total

 

Current

$

 13,526

 

$

 401

 

$

 13,927

 

$

 12,959

 

$

 239

 

$

 13,198

 

60 to 90 days past due

 

 -

 

 

 1

 

 

 1

 

 

 -

 

 

 1

 

 

 1

 

Greater than 90 days past due

 

 -

 

 

 1

 

 

 1

 

 

 -

 

 

 -

 

 

 -

 

Valuation allowance

 

 -

 

 

 (1

)

 

 (1

)

 

 -

 

 

 -

 

 

 -

 

Unamortized premium (discount)

 

 (16

)

 

 13

 

 

 (3

)

 

 (17

)

 

 8

 

 

 (9

)

Total carrying value

$

 13,510

 

$

 415

 

$

 13,925

 

$

 12,942

 

$

 248

 

$

 13,190

 



Schedule Of Realized Gain (Loss)



 

 

 

 

 

 



For the Three

 



Months Ended

 



March 31,

 



2019

 

2018

 

Fixed maturity AFS securities:

 

 

 

 

 

 

Gross gains

$

 12

 

$

 13

 

Gross losses

 

 (26

)

 

 (30

)

Gross OTTI

 

 (8

)

 

 (2

)

Gain (loss) on other investments (1)

 

 5

 

 

 (1

)

Associated amortization of DAC, VOBA, DSI and DFEL

 

 

 

 

 

 

and changes in other contract holder funds

 

 (2

)

 

 (5

)

Total realized gain (loss) related to certain investments

 

 (19

)

 

 (25

)

Realized gain (loss) on the mark-to-market on certain instruments (2)

 

 (236

)

 

 106

 

Indexed annuity and IUL contracts net derivatives results: (3)

 

 

 

 

 

 

Gross gain (loss)

 

 (35

)

 

 (1

)

Associated amortization of DAC, VOBA, DSI and DFEL

 

 1

 

 

 -

 

Variable annuity net derivatives results: (4)

 

 

 

 

 

 

Gross gain (loss)

 

 (54

)

 

 (50

)

Associated amortization of DAC, VOBA, DSI and DFEL

 

 (8

)

 

 (8

)

Total realized gain (loss)

$

 (351

)

$

 22

 



(1)

Includes market adjustments on equity securities still held of $6 million and less than $1 million for the three months ended March 31, 2019 and 2018, respectively.

(2)

Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives and trading securities.  See Note 8 for information regarding modified coinsurance.

(3)

Represents the net difference between the change in the fair value of the S&P 500 Index ® (“S&P 500”) call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products.

(4)

Includes the net difference in the change in embedded derivative reserves of our guaranteed living benefit (“GLB”) riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments.



OTTI Recognized In Net Income (Loss) And OCI



 

 

 

 

 

 



 

 

 

 

 

 



For the Three

 



Months Ended

 



March 31,

 



2019

 

2018

 

OTTI Recognized in Net Income (Loss)

 

 

 

 

 

 

Fixed maturity AFS securities:

 

 

 

 

 

 

Corporate bonds

$

 (6

)

$

 (2

)

ABS

 

 (1

)

 

 -

 

RMBS

 

 (1

)

 

 -

 

Gross OTTI recognized in net income (loss)

 

 (8

)

 

 (2

)

Associated amortization of DAC, VOBA, DSI and DFEL

 

 -

 

 

 -

 

Net OTTI recognized in net income (loss)

$

 (8

)

$

 (2

)



 

 

 

 

 

 

Portion of OTTI Recognized in OCI

 

 

 

 

 

 

Gross OTTI recognized in OCI

$

 14

 

$

 -

 

Change in DAC, VOBA, DSI and DFEL

 

 (1

)

 

 -

 

Net portion of OTTI recognized in OCI

$

 13

 

$

 -

 



Payables For Collateral On Investments



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 



As of March 31, 2019

 

As of December 31, 2018

 



Carrying

 

Fair

 

Carrying

 

Fair

 



Value

 

Value

 

Value

 

Value

 

Collateral payable for derivative investments (1)

$

 695 

 

$

 695 

 

$

 616 

 

$

 616 

 

Securities pledged under securities lending agreements (2)

 

 136 

 

 

 131 

 

 

 88 

 

 

 85 

 

Securities pledged under repurchase agreements (3)

 

 150 

 

 

 157 

 

 

 152 

 

 

 157 

 

Investments pledged for Federal Home Loan Bank of

 

 

 

 

 

 

 

 

 

 

 

 

Indianapolis (“FHLBI”) (4)

 

 4,380 

 

 

 6,570 

 

 

 3,930 

 

 

 5,923 

 

Total payables for collateral on investments

$

 5,361 

 

$

 7,553 

 

$

 4,786 

 

$

 6,781 

 



(1)

We obtain collateral based upon contractual provisions with our counterparties.  These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash.  See Note 6 for additional information.

(2)

Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets.  We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively.  We value collateral daily and obtain additional collateral when deemed appropriate.  The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

(3)

Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets.  The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary.  The cash received in our repurchase program is typically invested in fixed maturity AFS securities.

(4)

Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets.  The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate.  The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.
Schedule Of Increase (Decrease) In Payables For Collateral On Investments



 

 

 

 

 

 



 

 

 

 

 

 



For the Three

 



Months Ended

 



March 31,

 



2019

 

2018

 

Collateral payable for derivative investments

$

 79

 

$

 (114

)

Securities pledged under securities lending agreements

 

 48

 

 

 (68

)

Securities pledged under repurchase agreements

 

 (2

)

 

 -

 

Investments pledged for FHLBI

 

 450

 

 

 -

 

Total increase (decrease) in payables for collateral on investments

$

 575

 

$

 (182

)



Schedule Of Securities Pledged By Contractual Maturity



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 



As of March 31, 2019

 



Overnight and Continuous

 

Up to 30 Days

 

30 -  90 Days

 

Greater Than 90 Days

 

Total

 

Repurchase Agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

$

 -

 

$

 -

 

$

 -

 

$

 150 

 

$

 150 

 

Securities Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 136 

 

 

 -

 

 

 -

 

 

 -

 

 

 136 

 

Total gross secured borrowings

$

 136 

 

$

 -

 

$

 -

 

$

 150 

 

$

 286 

 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of December 31, 2018

 



Overnight and Continuous

 

Up to 30 Days

 

30 -90 Days

 

Greater Than 90 Days

 

Total

 

Repurchase Agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

$

 -

 

$

 -

 

$

 -

 

$

 152 

 

$

 152 

 

Securities Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 88 

 

 

 -

 

 

 -

 

 

 -

 

 

 88 

 

Total gross secured borrowings

$

 88 

 

$

 -

 

$

 -

 

$

 152 

 

$

 240 

 



Commercial [Member]  
Financing Receivable, Recorded Investment [Line Items]  
Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

For the Three

 



 

Months Ended

 



 

March 31,

 



 

2019

 

2018

 



 

 

 

 

 

 

 

Balance as of beginning-of-year

 

$

 -

 

$

 3 

 

Additions

 

 

 -

 

 

 -

 

Charge-offs, net of recoveries

 

 

 -

 

 

 -

 

Balance as of end-of-period

 

$

 -

 

$

 3 

 



Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

For the Three

 



 

Months Ended

 



 

March 31,

 



 

2019

 

2018

 

Average carrying value for impaired commercial mortgage loans on real estate

 

$

 -

 

$

 8 

 

Interest income recognized on impaired commercial mortgage loans on real estate

 

 

 -

 

 

 -

 

Interest income collected on impaired commercial mortgage loans on real estate

 

 

 -

 

 

 -

 



Credit Quality Indicators For Mortgage Loans



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 

As of December 31, 2018

 



 

 

 

 

 

Debt-

 

 

 

 

 

 

Debt-

 



 

 

 

 

 

Service

 

 

 

 

 

 

Service

 



Carrying

 

% of

 

Coverage

 

Carrying

 

% of

 

Coverage

 

Loan-to-Value Ratio

Value

 

Total

 

Ratio

 

Value

 

Total

 

Ratio

 

Less than 65%

$

 12,307 

 

 91.1% 

 

2.27

 

$

 11,656 

 

 90.1% 

 

2.30

 

65% to 74%

 

 1,165 

 

 8.6% 

 

1.75

 

 

 1,234 

 

 9.5% 

 

1.76

 

75% to 100%

 

 38 

 

 0.3% 

 

1.20

 

 

 52 

 

 0.4% 

 

1.03

 

Total

$

 13,510 

 

 100.0% 

 

 

 

$

 12,942 

 

 100.0% 

 

 

 



Residential [Member]  
Financing Receivable, Recorded Investment [Line Items]  
Credit Quality Indicators For Mortgage Loans



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 

As of December 31, 2018

 



Carrying

 

% of

 

Carrying

 

% of

 

Performance Indicator

Value

 

Total

 

Value

 

Total

 

Performing

$

 414 

 

 99.5% 

 

$

 247 

 

 99.6% 

 

Nonperforming

 

 2 

 

 0.5% 

 

 

 1 

 

 0.4% 

 

Total

$

 416 

 

 100.0% 

 

$

 248 

 

 100.0%