10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission File Number: 033-03094

Brighthouse Life Insurance Company

(Exact name of registrant as specified in its charter)

Delaware	06-0566090
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11225 North Community House Road, Charlotte, North Carolina	28277
(Address of principal executive offices)	(Zip Code)

(980) 365-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class Trading symbol(s) Name of each exchange on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes þ    No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes þ    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	þ	Smaller reporting company		☐
		Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐ No þ

As of August 9, 2021, 3,000 shares of the registrant’s common stock were outstanding, all of which were owned indirectly by Brighthouse Financial, Inc.

REDUCED DISCLOSURE FORMAT

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is, therefore, filing this Form 10-Q with the reduced disclosure format.

Table of Contents

		Page
Part I — Financial Information
Item 1.	Consolidated Financial Statements (at June 30, 2021 (Unaudited) and December 31, 2020 and for the Three Months and Six Months Ended June 30, 2021 and 2020 (Unaudited)):
	Interim Condensed Consolidated Balance Sheets	2
	Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	3
	Interim Condensed Consolidated Statements of Equity	4
	Interim Condensed Consolidated Statements of Cash Flows	5
	Notes to the Interim Condensed Consolidated Financial Statements (Unaudited):
	Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies	6
	Note 2 — Segment Information	7
	Note 3 — Insurance	11
	Note 4 — Investments	12
	Note 5 — Derivatives	24
	Note 6 — Fair Value	30
	Note 7 — Equity	39
	Note 8 — Other Revenues and Other Expenses	41
	Note 9 — Contingencies, Commitments and Guarantees	42
	Note 10 — Related Party Transactions	45
	Note 11 — Subsequent Event	47
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 4.	Controls and Procedures	60
Part II — Other Information
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 6.	Exhibits	61
Signature		62

Part I — Financial Information

Item 1. Financial Statements

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Interim Condensed Consolidated Balance Sheets

June 30, 2021 (Unaudited) and December 31, 2020

(In millions, except share and per share data)

	June 30, 2021		December 31, 2020
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $74,489 and $69,483, respectively; allowance for credit losses of $9 and $2, respectively)	$	83,711	$	81,299
Equity securities, at estimated fair value	86		133
Mortgage loans (net of allowance for credit losses of $96 and $94, respectively)	16,652		15,722
Policy loans	856		884
Limited partnerships and limited liability companies	3,545		2,809
Short-term investments, principally at estimated fair value	206		1,885
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $13 and $13, respectively)	2,876		3,757
Total investments	107,932		106,489
Cash and cash equivalents	4,195		3,684
Accrued investment income	809		656
Premiums, reinsurance and other receivables (net of allowance for credit losses of $10 and $10, respectively)	15,682		15,721
Deferred policy acquisition costs and value of business acquired	4,603		4,357
Other assets	393		395
Separate account assets	107,522		103,986
Total assets	$	241,136	$	235,288
Liabilities and Equity
Liabilities
Future policy benefits	$	43,222	$	44,266
Policyholder account balances	59,668		53,946
Other policy-related balances	3,091		3,114
Payables for collateral under securities loaned and other transactions	5,132		5,237
Long-term debt	842		843
Current income tax payable	133		110
Deferred income tax liability	1,002		1,461
Other liabilities	4,230		4,210
Separate account liabilities	107,522		103,986
Total liabilities	224,842		217,173
Contingencies, Commitments and Guarantees (Note 9)
Equity
Brighthouse Life Insurance Company’s stockholder’s equity:
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding	75		75
Additional paid-in capital	18,073		18,323
Retained earnings (deficit)	(6,181)		(5,719)
Accumulated other comprehensive income (loss)	4,312		5,421
Total Brighthouse Life Insurance Company’s stockholder’s equity	16,279		18,100
Noncontrolling interests	15		15
Total equity	16,294		18,115
Total liabilities and equity	$	241,136	$	235,288

See accompanying notes to the interim condensed consolidated financial statements.

2

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three Months and Six Months Ended June 30, 2021 and 2020 (Unaudited)

(In millions)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues
Premiums	$	156	$	185	$	337	$	376
Universal life and investment-type product policy fees	761		697		1,504		1,398
Net investment income	1,196		635		2,365		1,531
Other revenues	74		67		170		151
Net investment gains (losses)	(33)		(33)		(21)		(52)
Net derivative gains (losses)	(718)		(2,650)		(2,105)		4,097
Total revenues	1,436		(1,099)		2,250		7,501
Expenses
Policyholder benefits and claims	714		811		1,358		1,944
Interest credited to policyholder account balances	282		269		572		520
Amortization of deferred policy acquisition costs and value of business acquired	6		(77)		56		625
Other expenses	465		447		889		857
Total expenses	1,467		1,450		2,875		3,946
Income (loss) before provision for income tax	(31)		(2,549)		(625)		3,555
Provision for income tax expense (benefit)	(23)		(552)		(164)		713
Net income (loss)	(8)		(1,997)		(461)		2,842
Less: Net income (loss) attributable to noncontrolling interests	1		1		1		1
Net income (loss) attributable to Brighthouse Life Insurance Company	$	(9)	$	(1,998)	$	(462)	$	2,841
Comprehensive income (loss)	$	1,119	$	168	$	(1,570)	$	4,237
Less: Comprehensive income (loss) attributable to noncontrolling interests	1		1		1		1
Comprehensive income (loss) attributable to Brighthouse Life Insurance Company	$	1,118	$	167	$	(1,571)	$	4,236

See accompanying notes to the interim condensed consolidated financial statements.

3

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Interim Condensed Consolidated Statements of Equity

For the Three Months and Six Months Ended June 30, 2021 and 2020 (Unaudited)

(In millions)

	Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)		Accumulated Other Comprehensive Income (Loss)		Brighthouse Life Insurance Company’s Stockholder’s Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2020	$	75	$	18,323	$	(5,719)	$	5,421	$	18,100	$	15	$	18,115
Net income (loss)					(453)				(453)				(453)
Other comprehensive income (loss), net of income tax							(2,236)		(2,236)				(2,236)
Balance at March 31, 2021	75		18,323		(6,172)		3,185		15,411		15		15,426
Dividends paid to parent			(250)						(250)				(250)
Change in noncontrolling interests									—		(1)		(1)
Net income (loss)					(9)				(9)		1		(8)
Other comprehensive income (loss), net of income tax							1,127		1,127				1,127
Balance at June 30, 2021	$	75	$	18,073	$	(6,181)	$	4,312	$	16,279	$	15	$	16,294

	Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)		Accumulated Other Comprehensive Income (Loss)		Brighthouse Life Insurance Company’s Stockholder’s Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2019	$	75	$	19,073	$	(3,899)	$	3,215	$	18,464	$	15	$	18,479
Cumulative effect of change in accounting principle, net of income tax					(14)		3		(11)				(11)
Balance at January 1, 2020	75		19,073		(3,913)		3,218		18,453		15		18,468
Dividends paid to parent			(300)						(300)				(300)
Net income (loss)					4,839				4,839				4,839
Other comprehensive income (loss), net of income tax							(773)		(773)				(773)
Balance at March 31, 2020	75		18,773		926		2,445		22,219		15		22,234
Dividends paid to parent					(500)				(500)				(500)
Change in noncontrolling interests									—		(1)		(1)
Net income (loss)					(1,998)				(1,998)		1		(1,997)
Other comprehensive income (loss), net of income tax							2,165		2,165				2,165
Balance at June 30, 2020	$	75	$	18,773	$	(1,572)	$	4,610	$	21,886	$	15	$	21,901

See accompanying notes to the interim condensed consolidated financial statements.

4

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Interim Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2021 and 2020 (Unaudited)

(In millions)

	Six Months Ended June 30,
	2021		2020
Net cash provided by (used in) operating activities	$	438	$	617
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities	5,110		3,681
Equity securities	101		27
Mortgage loans	1,379		823
Limited partnerships and limited liability companies	117		86
Purchases of:
Fixed maturity securities	(9,805)		(5,773)
Equity securities	(6)		—
Mortgage loans	(2,247)		(920)
Limited partnerships and limited liability companies	(379)		(298)
Cash received in connection with freestanding derivatives	2,138		4,958
Cash paid in connection with freestanding derivatives	(2,894)		(2,138)
Receipts on loans to affiliate	—		100
Issuances of loans to affiliate	(1)		(100)
Net change in policy loans	28		84
Net change in short-term investments	1,679		(2,099)
Net change in other invested assets	(19)		(23)
Net cash provided by (used in) investing activities	(4,799)		(1,592)
Cash flows from financing activities
Policyholder account balances:
Deposits	6,608		4,572
Withdrawals	(1,261)		(1,127)
Net change in payables for collateral under securities loaned and other transactions	(105)		3,479
Long-term and short-term debt issued	—		100
Long-term and short-term debt repaid	(1)		(101)
Dividends paid to parent	(250)		(800)
Financing element on certain derivative instruments and other derivative related transactions, net	(118)		(698)
Other, net	(1)		(25)
Net cash provided by (used in) financing activities	4,872		5,400
Change in cash, cash equivalents and restricted cash	511		4,425
Cash, cash equivalents and restricted cash, beginning of period	3,684		2,493
Cash, cash equivalents and restricted cash, end of period	$	4,195	$	6,918
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	34	$	35
Income tax	$	(21)	$	1

See accompanying notes to the interim condensed consolidated financial statements.

5

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“BLIC” and the “Company” refer to Brighthouse Life Insurance Company, a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. Brighthouse Life Insurance Company is a wholly-owned subsidiary of Brighthouse Holdings, LLC (“BH Holdings”) and an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (“BHF” together with its subsidiaries and affiliates, “Brighthouse Financial”). BLIC offers a range of individual annuities and individual life insurance products. The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Life Insurance Company and its subsidiaries, as well as partnerships and limited liability companies (“LLCs”) that the Company controls. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.

Reclassifications

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current period presentation as may be discussed when applicable in the Notes to the Interim Condensed Consolidated Financial Statements.

Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2020 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2020 Annual Report.

Adoption of New Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. There were no ASUs adopted as of June 30, 2021.

6

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Future Adoption of New Accounting Pronouncements

In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts). This new guidance is effective for fiscal years beginning after January 1, 2023. The amendments to Topic 944 will result in significant changes to the accounting for long-duration insurance contracts. These changes (i) require all guarantees that qualify as market risk benefits to be measured at fair value, (ii) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (iii) modify the methods of amortization for deferred policy acquisition costs (“DAC”), and (iv) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances. The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis.

The Company continues to evaluate the new guidance and therefore is unable to estimate the impact on its financial statements. The most significant impact from the ASU is the requirement that all variable annuity guarantees will be considered market risk benefits and measured at fair value, whereas currently a significant amount of variable annuity guarantees are classified as insurance liabilities.

2. Segment Information

The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.

Annuities

The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.

Life

The Life segment consists of insurance products and services, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis.

Run-off

The Run-off segment consists of products that are no longer actively sold and are separately managed, including structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, certain funding agreements and universal life with secondary guarantees.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care and workers’ compensation business reinsured through 100% quota share reinsurance agreements, activities related to funding agreements associated with the Company’s institutional spread margin business, as well as direct-to-consumer life insurance that is no longer actively sold.

Financial Measures and Segment Accounting Policies

Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community and contract holders by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings should not be viewed as a substitute for net income (loss) attributable to Brighthouse Life Insurance Company and excludes net income (loss) attributable to noncontrolling interests.

Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends.

7

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. Segment Information (continued)

The following are significant items excluded from total revenues, net of income tax, in calculating adjusted earnings:

•Net investment gains (losses);

•Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and

•Certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB Fees”).

The following are significant items excluded from total expenses, net of income tax, in calculating adjusted earnings:

•Amounts associated with benefits related to GMIBs (“GMIB Costs”);

•Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and

•Amortization of DAC and value of business acquired (“VOBA”) related to: (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.

The tax impact of the adjustments mentioned above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate.

The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below.

Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital. Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.

8

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. Segment Information (continued)

Operating results by segment, as well as Corporate & Other, were as follows:

	Three Months Ended June 30, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	410	$	84	$	139	$	(89)	$	544
Provision for income tax expense (benefit)	78		17		18		(15)		98
Post-tax adjusted earnings	332		67		121		(74)		446
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	332	$	67	$	121	$	(75)	445
Adjustments for:
Net investment gains (losses)									(33)
Net derivative gains (losses)									(718)
Other adjustments to net income (loss)									176
Provision for income tax (expense) benefit									121
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(9)
Interest revenue	$	532	$	156	$	498	$	15
Interest expense	$	—	$	—	$	—	$	16

	Three Months Ended June 30, 2020
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	193	$	46	$	(147)	$	(98)	$	(6)
Provision for income tax expense (benefit)	32		10		(32)		(28)		(18)
Post-tax adjusted earnings	161		36		(115)		(70)		12
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	161	$	36	$	(115)	$	(71)	11
Adjustments for:
Net investment gains (losses)									(33)
Net derivative gains (losses)									(2,650)
Other adjustments to net income (loss)									140
Provision for income tax (expense) benefit									534
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(1,998)
Interest revenue	$	402	$	57	$	166	$	15
Interest expense	$	—	$	—	$	—	$	17

9

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. Segment Information (continued)

	Six Months Ended June 30, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	806	$	225	$	224	$	(155)	$	1,100
Provision for income tax expense (benefit)	153		46		27		(27)		199
Post-tax adjusted earnings	653		179		197		(128)		901
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	653	$	179	$	197	$	(129)	900
Adjustments for:
Net investment gains (losses)									(21)
Net derivative gains (losses)									(2,105)
Other adjustments to net income (loss)									401
Provision for income tax (expense) benefit									363
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(462)
Interest revenue	$	1,079	$	306	$	961	$	29
Interest expense	$	—	$	—	$	—	$	33

	Six Months Ended June 30, 2020
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	576	$	67	$	(236)	$	(181)	$	226
Provision for income tax expense (benefit)	104		14		(51)		(53)		14
Post-tax adjusted earnings	472		53		(185)		(128)		212
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	472	$	53	$	(185)	$	(129)	211
Adjustments for:
Net investment gains (losses)									(52)
Net derivative gains (losses)									4,097
Other adjustments to net income (loss)									(716)
Provision for income tax (expense) benefit									(699)
Net income (loss) attributable to Brighthouse Life Insurance Company									$	2,841
Interest revenue	$	860	$	157	$	490	$	31
Interest expense	$	—	$	—	$	—	$	34

Total revenues by segment, as well as Corporate & Other, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Annuities	$	1,104	$	922	$	2,251	$	1,935
Life	332		237		656		506
Run-off	661		332		1,289		825
Corporate & Other	34		35		69		73
Adjustments	(695)		(2,625)		(2,015)		4,162
Total	$	1,436	$	(1,099)	$	2,250	$	7,501

10

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. Segment Information (continued)

Total assets by segment, as well as Corporate & Other, were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Annuities	$	172,714	$	167,806
Life	17,899		17,796
Run-off	37,051		38,366
Corporate & Other	13,472		11,320
Total	$	241,136	$	235,288

3. Insurance

Guarantees

As discussed in Notes 1 and 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report, the Company issues variable annuity contracts with guaranteed minimum benefits. Guaranteed minimum death benefits, the life contingent portion of guaranteed minimum withdrawal benefits (“GMWB”) and certain portions of GMIBs are accounted for as insurance liabilities in future policyholder benefits, while other guarantees are accounted for in whole or in part as embedded derivatives in policyholder account balances and are further discussed in Note 5.

The Company also has secondary guarantees on universal and variable life insurance contracts accounted for as insurance liabilities.

Information regarding the Company’s guarantee exposure was as follows at:

	June 30, 2021						December 31, 2020
	In the Event of Death			At Annuitization			In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts (1), (2)
Variable Annuity Guarantees
Total account value (3)	$	107,291		$	58,670		$	104,075		$	57,790
Separate account value	$	102,519		$	57,585		$	99,257		$	56,668
Net amount at risk	$	5,986	(4)	$	4,710	(5)	$	6,392	(4)	$	6,341	(5)
Average attained age of contract holders	71 years			70 years			70 years			70 years

	June 30, 2021		December 31, 2020
	Secondary Guarantees
	(Dollars in millions)
Universal Life Contracts
Total account value (3)	$	5,634	$	5,772
Net amount at risk (6)	$	68,043	$	69,083
Average attained age of policyholders	67 years		67 years
Variable Life Contracts
Total account value (3)	$	1,414	$	1,306
Net amount at risk (6)	$	10,851	$	11,234
Average attained age of policyholders	46 years		46 years

_______________

(1)The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

11

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

3. Insurance (continued)

(2)Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured.

(3)Includes the contract holder’s investments in the general account and separate account, if applicable.

(4)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5)Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved.

(6)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

4. Investments

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-for-sale

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	June 30, 2021										December 31, 2020
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	33,247	$	1	$	4,249	$	167	$	37,328	$	32,062	$	2	$	5,286	$	70	$	37,276
Foreign corporate	10,646		6		1,145		68		11,717		9,926		—		1,493		44		11,375
U.S. government and agency	7,191		—		1,987		78		9,100		5,871		—		2,599		6		8,464
RMBS	8,152		—		543		13		8,682		7,578		—		644		3		8,219
CMBS	6,459		—		462		14		6,907		6,120		—		586		9		6,697
State and political subdivision	3,896		—		866		5		4,757		3,607		—		948		—		4,555
ABS	3,297		—		56		3		3,350		2,831		—		60		10		2,881
Foreign government	1,601		2		276		5		1,870		1,488		—		345		1		1,832
Total fixed maturity securities	$	74,489	$	9	$	9,584	$	353	$	83,711	$	69,483	$	2	$	11,961	$	143	$	81,299

The Company held non-income producing fixed maturity securities with an estimated fair value of $5 million at both June 30, 2021 and December 31, 2020.

12

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2021:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities (1)		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	1,187	$	8,902	$	15,856	$	30,636	$	17,908	$	74,489
Estimated fair value	$	1,204	$	9,410	$	17,167	$	36,991	$	18,939	$	83,711

_______________

(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	June 30, 2021								December 31, 2020
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	3,873	$	156	$	299	$	11	$	1,726	$	57	$	181	$	13
Foreign corporate	1,033		33		252		35		243		7		345		37
U.S. government and agency	1,685		78		—		—		236		6		—		—
RMBS	1,274		12		41		1		180		2		22		1
CMBS	595		12		59		2		331		7		44		2
State and political subdivision	259		5		—		—		46		—		—		—
ABS	756		2		185		1		506		3		629		7
Foreign government	147		5		—		—		55		1		—		—
Total fixed maturity securities	$	9,622	$	303	$	836	$	50	$	3,323	$	83	$	1,221	$	60
Total number of securities in an unrealized loss position	1,310				261				665				241

Allowance for Credit Losses for Fixed Maturity Securities

Evaluation and Measurement Methodologies

For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to

13

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss) (“OCI”).

Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $520 million and $506 million at June 30, 2021 and December 31, 2020, respectively, and is included in accrued investment income.

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.

Current Period Evaluation

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $9 million, relating to four securities at June 30, 2021. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.

14

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		Foreign Corporate		Foreign Government		Total
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	2	$	—	$	—	$	2
Allowance on securities where credit losses were not previously recorded	—		6		2		8
Change in allowance on securities with an allowance recorded in a previous period	(1)		—		—		(1)
Write-offs charged against allowance (1)	—		—		—		—
Balance, end of period	$	1	$	6	$	2	$	9
Six Months Ended June 30, 2020
Balance, beginning of period	$	3	$	1	$	—	$	4
Allowance on securities where credit losses were not previously recorded	3		2		—		5
Change in allowance on securities with an allowance recorded in a previous period	(1)		—		—		(1)
Write-offs charged against allowance (1)	(3)		(1)		—		(4)
Balance, end of period	$	2	$	2	$	—	$	4

_______________

(1)The Company did not record any write-offs during the six months ended June 30, 2021. The Company recorded total write-offs of $13 million during the six months ended June 30, 2020.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	June 30, 2021				December 31, 2020
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	10,225	61.4	%	$	9,687	61.6	%
Agricultural	3,737		22.4		3,479		22.1
Residential	2,786		16.7		2,650		16.9
Total mortgage loans (1)	16,748		100.5		15,816		100.6
Allowance for credit losses	(96)		(0.5)		(94)		(0.6)
Total mortgage loans, net	$	16,652	100.0	%	$	15,722	100.0	%

_______________

(1)Purchases of mortgage loans from third parties were $621 million and $799 million for the three months and six months ended June 30, 2021, respectively, and $331 million and $488 million for the three months and six months ended June 30, 2020, respectively, and were primarily comprised of residential mortgage loans.

Allowance for Credit Losses for Mortgage Loans

Evaluation and Measurement Methodologies

The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.

15

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the impact of the ongoing worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at both June 30, 2021 and December 31, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $88 million at both June 30, 2021 and December 31, 2020.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.

Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity.

The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics.

Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	44	$	15	$	35	$	94
Current period provision	2		(2)		2		2
Balance, end of period	$	46	$	13	$	37	$	96
Six Months Ended June 30, 2020
Balance, beginning of period	$	27	$	16	$	21	$	64
Current period provision	10		—		18		28
Balance, end of period	$	37	$	16	$	39	$	92

16

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

PCD Mortgage Loans

Purchases of PCD mortgage loans are summarized as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
Purchase price	$	229	$	77
Allowance at acquisition date	1		2
Discount or premium attributable to other factors	(16)		2
Par value	$	214	$	81

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2021		2020		2019		2018		2017		Prior		Total
	(In millions)
June 30, 2021
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	692	$	333	$	1,424	$	972	$	513	$	3,563	$	7,497
65% to 75%	219		199		552		511		293		553		2,327
76% to 80%	—		—		—		—		44		88		132
Greater than 80%	—		—		—		30		—		239		269
Total commercial mortgage loans	911		532		1,976		1,513		850		4,443		10,225
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	433		540		538		716		342		896		3,465
65% to 75%	61		79		78		11		25		18		272
Total agricultural mortgage loans	494		619		616		727		367		914		3,737
Residential mortgage loans
Performing	66		208		351		332		177		1,594		2,728
Nonperforming	—		2		2		2		1		51		58
Total residential mortgage loans	66		210		353		334		178		1,645		2,786
Total	$	1,471	$	1,361	$	2,945	$	2,574	$	1,395	$	7,002	$	16,748

17

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

	2020		2019		2018		2017		2016		Prior		Total
	(In millions)
December 31, 2020
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	317	$	1,527	$	1,004	$	514	$	1,106	$	2,808	$	7,276
65% to 75%	200		450		482		322		59		498		2,011
76% to 80%	—		—		—		44		79		8		131
Greater than 80%	—		—		29		—		6		234		269
Total commercial mortgage loans	517		1,977		1,515		880		1,250		3,548		9,687
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	566		526		749		377		412		627		3,257
65% to 75%	81		80		10		33		—		18		222
Total agricultural mortgage loans	647		606		759		410		412		645		3,479
Residential mortgage loans
Performing	214		381		413		131		70		1,375		2,584
Nonperforming	2		6		4		—		1		53		66
Total residential mortgage loans	216		387		417		131		71		1,428		2,650
Total	$	1,380	$	2,970	$	2,691	$	1,421	$	1,733	$	5,621	$	15,816

The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	June 30, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	9,518	93.1	%	$	9,423	97.3	%
1.00x - 1.20x	359		3.5		204		2.1
Less than 1.00x	348		3.4		60		0.6
Total	$	10,225	100.0	%	$	9,687	100.0	%

The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.

18

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Past Due Mortgage Loans by Portfolio Segment

The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both June 30, 2021 and December 31, 2020. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments. At June 30, 2021 and December 31, 2020, $33 million and $38 million, respectively, of the COVID-19 pandemic modified loans were classified as delinquent.

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	June 30, 2021								December 31, 2020
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	10,225	$	3,720	$	2,683	$	16,628	$	9,687	$	3,479	$	2,575	$	15,741
30-59 days past due	—		—		45		45		—		—		9		9
60-89 days past due	—		—		14		14		—		—		24		24
90-179 days past due	—		15		28		43		—		—		27		27
180+ days past due	—		2		16		18		—		—		15		15
Total	$	10,225	$	3,737	$	2,786	$	16,748	$	9,687	$	3,479	$	2,650	$	15,816

Mortgage Loans in Nonaccrual Status by Portfolio Segment

Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. At June 30, 2021 and December 31, 2020, $33 million and $38 million, respectively, of the COVID-19 pandemic modified loans were in nonaccrual status.

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
June 30, 2021	$	—	$	14	$	58	$	72
December 31, 2020	$	—	$	—	$	66	$	66

_______________

(1)The Company had $9 million and $7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2021 and December 31, 2020, respectively.

Current period investment income on mortgage loans in nonaccrual status was less than $1 million for both the six months ended June 30, 2021 and 2020.

Modified Mortgage Loans by Portfolio Segment

Under certain circumstances, modifications are granted to nonperforming mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring during both the six months ended June 30, 2021 and 2020.

19

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs.

Other Invested Assets

Over 90% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 5 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes tax credit and renewable energy partnerships, leveraged leases and Federal Home Loan Bank (“FHLB”) stock.

Leveraged Leases

The carrying value of leveraged leases was $49 million and $50 million at June 30, 2021 and December 31, 2020, respectively. The allowance for credit losses was $13 million at both June 30, 2021 and December 31, 2020. Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 12 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both June 30, 2021 and December 31, 2020, all leveraged leases were performing.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”) and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”).

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Fixed maturity securities	$	9,231	$	11,818
Derivatives	200		162
Other	(17)		(16)
Subtotal	9,414		11,964
Amounts allocated from:
Future policy benefits	(3,514)		(4,598)
DAC, VOBA and DSI	(425)		(494)
Subtotal	(3,939)		(5,092)
Deferred income tax benefit (expense)	(1,150)		(1,443)
Net unrealized investment gains (losses)	$	4,325	$	5,429

The changes in net unrealized investment gains (losses) were as follows:

	Six Months Ended June 30, 2021
	(In millions)
Balance at December 31, 2020	$	5,429
Unrealized investment gains (losses) during the period	(2,550)
Unrealized investment gains (losses) relating to:
Future policy benefits	1,084
DAC, VOBA and DSI	69
Deferred income tax benefit (expense)	293
Balance at June 30, 2021	$	4,325
Change in net unrealized investment gains (losses)	$	(1,104)

20

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Concentrations of Credit Risk

There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both June 30, 2021 and December 31, 2020.

Securities Lending

Elements of the securities lending program are presented below at:

	June 30, 2021		December 31, 2020
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,071	$	2,373
Estimated fair value	$	3,969	$	3,603
Cash collateral received from counterparties (2)	$	4,025	$	3,674
Securities collateral received from counterparties (3)	$	7	$	—
Reinvestment portfolio — estimated fair value	$	4,193	$	3,830

_______________

(1)Included within fixed maturity securities.

(2)Included within payables for collateral under securities loaned and other transactions.

(3)Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	June 30, 2021								December 31, 2020
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	1,255	$	2,336	$	433	$	4,024	$	937	$	2,300	$	437	$	3,674
U.S. corporate	1		—		—		1		—		—		—		—
Total	$	1,256	$	2,336	$	433	$	4,025	$	937	$	2,300	$	437	$	3,674

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2021 was $1.2 billion, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities, non-agency RMBS and U.S. and foreign corporate securities) with 61% invested in agency RMBS, cash and cash equivalents and U.S. government and agency securities at June 30, 2021. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

21

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	9,895	$	10,131
Invested assets held in trust (reinsurance agreements) (2)	5,719		5,711
Invested assets pledged as collateral (3)	5,448		5,595
Total invested assets on deposit, held in trust and pledged as collateral	$	21,062	$	21,437

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $112 million and $59 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $119 million and $101 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report) and derivative transactions (see Note 5).

See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $63 million and $39 million at redemption value at June 30, 2021 and December 31, 2020, respectively.

Variable Interest Entities

A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.

The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either June 30, 2021 or December 31, 2020.

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	June 30, 2021				December 31, 2020
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	14,410	$	13,494	$	13,494	$	12,416
Limited partnerships and LLCs	2,985		4,323		2,307		3,565
Total	$	17,395	$	17,817	$	15,801	$	15,981

22

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

The Company’s investments in unconsolidated VIEs are described below.

Fixed Maturity Securities

The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities.

Limited Partnerships and LLCs

The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, hedge funds, and to a lesser extent tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 9.

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Investment income:
Fixed maturity securities	$	694	$	667	$	1,374	$	1,325
Equity securities	1		1		2		3
Mortgage loans	166		166		329		332
Policy loans	11		8		21		14
Limited partnerships and LLCs (1)	350		(190)		688		(108)
Cash, cash equivalents and short-term investments	1		12		2		32
Other	8		11		18		24
Total investment income	1,231		675		2,434		1,622
Less: Investment expenses	35		40		69		91
Net investment income	$	1,196	$	635	$	2,365	$	1,531

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $339 million and $670 million for the three months and six months ended June 30, 2021, respectively, and ($193) million and ($120) million for the three months and six months ended June 30, 2020, respectively.

23

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Investments (continued)

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Fixed maturity securities	$	(31)	$	(20)	$	(23)	$	(26)
Equity securities	3		7		3		(7)
Mortgage loans	(5)		(22)		(1)		(26)
Limited partnerships and LLCs	1		(2)		1		(3)
Other	(1)		4		(1)		10
Total net investment gains (losses)	$	(33)	$	(33)	$	(21)	$	(52)

Sales or Disposals of Fixed Maturity Securities

Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Proceeds	$	949	$	619	$	2,167	$	1,266
Gross investment gains	$	8	$	14	$	39	$	31
Gross investment losses	(38)		(36)		(55)		(42)
Net investment gains (losses)	$	(30)	$	(22)	$	(16)	$	(11)

5. Derivatives

Accounting for Derivatives

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives.

Derivative Strategies

Types of Derivative Instruments and Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate derivatives: swaps, caps, swaptions and forwards;

•Foreign currency exchange rate derivatives: forwards and swaps;

•Equity derivatives: options, total return swaps and variance swaps; and

•Credit derivatives: single and index reference credit default swaps and swaptions.

For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report.

24

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Derivatives (continued)

Primary Risks Managed by Derivatives

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at:

		June 30, 2021						December 31, 2020
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate forwards	Interest rate	$	240	$	28	$	—	$	290	$	66	$	—
Foreign currency swaps	Foreign currency exchange rate	2,859		144		59		2,750		122		112
Total qualifying hedges		3,099		172		59		3,040		188		112
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	2,845		366		19		2,295		463		—
Interest rate caps	Interest rate	3,100		8		—		2,350		2		—
Interest rate options	Interest rate	28,590		302		178		25,980		712		122
Interest rate forwards	Interest rate	10,498		244		244		8,086		851		78
Foreign currency swaps	Foreign currency exchange rate	963		79		25		989		85		32
Foreign currency forwards	Foreign currency exchange rate	234		2		—		201		—		—
Credit default swaps — purchased	Credit	18		—		1		18		—		—
Credit default swaps — written	Credit	1,774		41		1		1,755		41		—
Credit default options	Credit	300		—		—		100		—		—
Equity index options	Equity market	29,176		1,188		944		31,576		1,071		838
Equity variance swaps	Equity market	359		9		7		1,098		13		20
Equity total return swaps	Equity market	25,760		259		403		15,056		143		822
Total non-designated or non-qualifying derivatives		103,617		2,498		1,822		89,504		3,381		1,912
Embedded derivatives:
Ceded guaranteed minimum income benefits	Other	N/A		219		—		N/A		283		—
Direct index-linked annuities	Other	N/A		—		5,466		N/A		—		3,855
Direct guaranteed minimum benefits	Other	N/A		—		1,908		N/A		—		2,751
Assumed guaranteed minimum benefits	Other	N/A		—		471		N/A		—		596
Assumed index-linked annuities	Other	N/A		—		427		N/A		—		382
Total embedded derivatives		N/A		219		8,272		N/A		283		7,584
Total		$	106,716	$	2,889	$	10,153	$	92,544	$	3,852	$	9,608

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2021 and December 31, 2020. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in ASC 815; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship.

25

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Derivatives (continued)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	1	$	19
Foreign currency exchange rate derivatives	1		—		7		95
Total cash flow hedges	1		—		8		114
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	722		—		—		—
Foreign currency exchange rate derivatives	18		—		—		—
Credit derivatives	8		—		—		—
Equity derivatives	(306)		—		—		—
Embedded derivatives	(1,161)		—		—		—
Total non-qualifying hedges	(719)		—		—		—
Total	$	(718)	$	—	$	8	$	114
Three Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	—	$	(4)
Foreign currency exchange rate derivatives	4		(3)		9		(135)
Total cash flow hedges	4		(3)		9		(139)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(165)		—		—		—
Foreign currency exchange rate derivatives	(27)		(2)		—		—
Credit derivatives	29		—		—		—
Equity derivatives	(1,606)		—		—		—
Embedded derivatives	(880)		—		—		—
Total non-qualifying hedges	(2,649)		(2)		—		—
Total	$	(2,645)	$	(5)	$	9	$	(139)

26

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Derivatives (continued)

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Six Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	2	$	(33)
Foreign currency exchange rate derivatives	6		(3)		15		80
Total cash flow hedges	7		(3)		17		47
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(1,190)		—		—		—
Foreign currency exchange rate derivatives	11		3		—		—
Credit derivatives	11		—		—		—
Equity derivatives	(448)		—		—		—
Embedded derivatives	(496)		—		—		—
Total non-qualifying hedges	(2,112)		3		—		—
Total	$	(2,105)	$	—	$	17	$	47
Six Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	1	$	93
Foreign currency exchange rate derivatives	4		(3)		20		321
Total cash flow hedges	5		(3)		21		414
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	4,756		—		—		—
Foreign currency exchange rate derivatives	105		(9)		—		—
Credit derivatives	(2)		—		—		—
Equity derivatives	358		—		—		—
Embedded derivatives	(1,113)		—		—		—
Total non-qualifying hedges	4,104		(9)		—		—
Total	$	4,109	$	(12)	$	21	$	414

At June 30, 2021 and December 31, 2020, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was two years and three years, respectively.

At June 30, 2021 and December 31, 2020, the balance in AOCI associated with cash flow hedges was $200 million and $162 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.

27

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Derivatives (continued)

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

	June 30, 2021					December 31, 2020
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	14	$	683	2.4	$	15	$	683	2.9
Baa	27		1,081		5.2	26		1,072		5.2
Ba	—		6		4.5	—		—		—
Caa and Lower	(1)		4		4.5	—		—		—
Total	$	40	$	1,774	4.1	$	41	$	1,755	4.3

_______________

(1)The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Counterparty Credit Risk

The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.

The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

See Note 6 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
June 30, 2021
Derivative assets	$	2,674	$	(1,326)	$	(993)	$	355	$	(304)	$	51
Derivative liabilities	$	1,872	$	(1,326)	$	—	$	546	$	(475)	$	71
December 31, 2020
Derivative assets	$	3,574	$	(1,342)	$	(1,327)	$	905	$	(840)	$	65
Derivative liabilities	$	2,010	$	(1,342)	$	—	$	668	$	(630)	$	38

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

28

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Derivatives (continued)

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level.

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	546	$	668
Estimated Fair Value of Collateral Provided: (2)
Fixed maturity securities	$	887	$	1,205

_______________

(1)After taking into consideration the existence of netting agreements.

(2)Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately.

29

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value

Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

	June 30, 2021
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,800	$	528	$	37,328
Foreign corporate	—		11,368		349		11,717
U.S. government and agency	3,264		5,836		—		9,100
RMBS	—		8,648		34		8,682
CMBS	—		6,905		2		6,907
State and political subdivision	—		4,757		—		4,757
ABS	—		3,169		181		3,350
Foreign government	—		1,858		12		1,870
Total fixed maturity securities	3,264		79,341		1,106		83,711
Equity securities	21		62		3		86
Short-term investments	142		64		—		206
Derivative assets: (1)
Interest rate	—		948		—		948
Foreign currency exchange rate	—		219		6		225
Credit	—		27		14		41
Equity market	—		1,447		9		1,456
Total derivative assets	—		2,641		29		2,670
Embedded derivatives within asset host contracts (2)	—		—		219		219
Separate account assets	42		107,480		—		107,522
Total assets	$	3,469	$	189,588	$	1,357	$	194,414
Liabilities
Derivative liabilities: (1)
Interest rate	$	—	$	441	$	—	$	441
Foreign currency exchange rate	—		84		—		84
Credit	—		—		2		2
Equity market	—		1,347		7		1,354
Total derivative liabilities	—		1,872		9		1,881
Embedded derivatives within liability host contracts (2)	—		—		8,272		8,272
Total liabilities	$	—	$	1,872	$	8,281	$	10,153

30

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

	December 31, 2020
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,789	$	487	$	37,276
Foreign corporate	—		11,178		197		11,375
U.S. government and agency	2,108		6,356		—		8,464
RMBS	—		8,197		22		8,219
CMBS	—		6,692		5		6,697
State and political subdivision	—		4,555		—		4,555
ABS	—		2,841		40		2,881
Foreign government	—		1,832		—		1,832
Total fixed maturity securities	2,108		78,440		751		81,299
Equity securities	31		99		3		133
Short-term investments	1,669		216		—		1,885
Derivative assets: (1)
Interest rate	—		2,094		—		2,094
Foreign currency exchange rate	—		206		1		207
Credit	—		27		14		41
Equity market	—		1,213		14		1,227
Total derivative assets	—		3,540		29		3,569
Embedded derivatives within asset host contracts (2)	—		—		283		283
Separate account assets	86		103,897		3		103,986
Total assets	$	3,894	$	186,192	$	1,069	$	191,155
Liabilities
Derivative liabilities: (1)
Interest rate	$	—	$	200	$	—	$	200
Foreign currency exchange rate	—		137		7		144
Equity market	—		1,660		20		1,680
Total derivative liabilities	—		1,997		27		2,024
Embedded derivatives within liability host contracts (2)	—		—		7,584		7,584
Total liabilities	$	—	$	1,997	$	7,611	$	9,608

_______________

(1)Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the consolidated balance sheets.

Valuation Controls and Procedures

The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards.

31

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments.

A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used.

Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the six months ended June 30, 2021.

Determination of Fair Value

Fixed Maturity Securities

The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.

U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues.

U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded.

Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance.

Equity Securities and Short-term Investments

The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below.

32

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active.

Derivatives

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”).

The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Embedded Derivatives

Embedded derivatives principally include certain direct and ceded variable annuity guarantees and equity crediting rates within index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The Company issues certain variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMAB”), the non-life contingent portion of GMWBs and certain portions of GMIBs are accounted for as embedded derivatives and measured at estimated fair value separately from the host variable annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets, with changes in estimated fair value reported in net derivative gains (losses).

33

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations of policyholder behavior. The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. The percentage of fees included in the initial fair value measurement is not updated in subsequent periods.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for BHF’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims-paying ability of the issuing insurance subsidiaries as compared to BHF’s overall financial strength.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

The Company issues and assumes through reinsurance index-linked annuities which allow the policyholder to participate in returns from equity indices. The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Transfers Into or Out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

34

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

					June 30, 2021			December 31, 2020			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing  techniques	•	Mortality rates	0.03%	-	12.13%	0.03%	-	12.13%	Decrease (1)
			•	Lapse rates	0.25%	-	15.00%	0.25%	-	15.00%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.25%	-	10.00%	0.25%	-	10.00%	(4)
			•	Long-term equity volatilities	16.66%	-	22.21%	16.66%	-	22.21%	Increase (5)
			•	Nonperformance risk spread	(0.26)%	-	1.37%	0.47%	-	1.97%	Decrease (6)

_______________

(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

(3)The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued

35

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a higher (lower) fair value.

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		State and Political Subdivision		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Net Embedded Derivatives (3)		Separate Account Assets (4)
	(In millions)
Three Months Ended June 30, 2021
Balance, beginning of period	$	667	$	126	$	—	$	—	$	3	$	—	$	8	$	(6,774)	$	2
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	—		—		—		—		—		—		8		(1,161)		—
Total realized/unrealized gains (losses) included in AOCI	20		1		—		—		—		—		10		—		—
Purchases (7)	231		163		—		12		—		—		—		—		—
Sales (7)	(12)		(9)		—		—		—		—		(6)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(118)		—
Transfers into Level 3 (8)	54		—		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(83)		(64)		—		—		—		—		—		—		(2)
Balance, end of period	$	877	$	217	$	—	$	12	$	3	$	—	$	20	$	(8,053)	$	—
Three Months Ended June 30, 2020
Balance, beginning of period	$	838	$	218	$	72	$	7	$	4	$	2	$	50	$	(4,747)	$	4
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(2)		—		—		—		—		—		(3)		(880)		—
Total realized/unrealized gains (losses) included in AOCI	60		3		—		—		—		—		(11)		—		—
Purchases (7)	186		85		—		—		—		—		—		—		—
Sales (7)	(46)		(1)		—		—		—		(2)		(16)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(177)		—
Transfers into Level 3 (8)	86		26		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(228)		(158)		(72)		(7)		(1)		—		—		—		(1)
Balance, end of period	$	894	$	173	$	—	$	—	$	3	$	—	$	20	$	(5,804)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021(9)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	(1,139)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)	$	20	$	1	$	—	$	—	$	—	$	—	$	10	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	(924)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)	$	58	$	3	$	—	$	—	$	—	$	—	$	(10)	$	—	$	—

36

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		State and Political Subdivision		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Net Embedded Derivatives (3)		Separate Account Assets (4)
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	684	$	67	$	—	$	—	$	3	$	—	$	2	$	(7,301)	$	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(1)		—		—		—		—		—		16		(496)		—
Total realized/unrealized gains (losses) included in AOCI	(1)		1		—		—		—		—		9		—		—
Purchases (7)	327		181		—		12		—		—		(1)		—		—
Sales (7)	(9)		(14)		—		—		—		—		(6)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(256)		—
Transfers into Level 3 (8)	54		—		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(177)		(18)		—		—		—		—		—		—		(3)
Balance, end of period	$	877	$	217	$	—	$	12	$	3	$	—	$	20	$	(8,053)	$	—
Six Months Ended June 30, 2020
Balance, beginning of period	$	457	$	117	$	73	$	—	$	8	$	5	$	16	$	(4,365)	$	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(4)		—		—		—		—		—		(2)		(1,113)		—
Total realized/unrealized gains (losses) included in AOCI	16		—		—		—		—		—		20		—		—
Purchases (7)	444		104		—		—		—		—		—		—		—
Sales (7)	(45)		(6)		—		—		—		(5)		(14)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(326)		—
Transfers into Level 3 (8)	158		30		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(132)		(72)		(73)		—		(5)		—		—		—		—
Balance, end of period	$	894	$	173	$	—	$	—	$	3	$	—	$	20	$	(5,804)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021 (9)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	2	$	(476)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)	$	(1)	$	1	$	—	$	—	$	—	$	—	$	9	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	(17)	$	(1,166)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)	$	15	$	—	$	—	$	—	$	—	$	—	$	20	$	—	$	—

_______________

(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(3)Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

37

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

(4)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses).

(5)Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(6)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(7)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(8)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(9)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	June 30, 2021
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	16,652	$	—	$	—	$	17,605	$	17,605
Policy loans	$	856	$	—	$	460	$	566	$	1,026
Other invested assets	$	78	$	—	$	62	$	16	$	78
Premiums, reinsurance and other receivables	$	3,180	$	—	$	118	$	3,860	$	3,978
Liabilities
Policyholder account balances	$	20,358	$	—	$	—	$	22,060	$	22,060
Long-term debt	$	842	$	—	$	37	$	1,087	$	1,124
Other liabilities	$	1,260	$	—	$	434	$	843	$	1,277
Separate account liabilities	$	1,413	$	—	$	1,413	$	—	$	1,413

38

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Fair Value (continued)

	December 31, 2020
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	15,722	$	—	$	—	$	16,836	$	16,836
Policy loans	$	884	$	—	$	475	$	881	$	1,356
Other invested assets	$	54	$	—	$	39	$	15	$	54
Premiums, reinsurance and other receivables	$	3,114	$	—	$	90	$	3,808	$	3,898
Liabilities
Policyholder account balances	$	17,361	$	—	$	—	$	18,962	$	18,962
Long-term debt	$	843	$	—	$	39	$	1,031	$	1,070
Other liabilities	$	891	$	—	$	121	$	787	$	908
Separate account liabilities	$	1,331	$	—	$	1,331	$	—	$	1,331

7. Equity

Capital Transactions

During the second quarter of 2021, Brighthouse Life Insurance Company paid an ordinary cash dividend of $250 million to BH Holdings, which was accounted for as a return of capital. During the second quarter of 2020, Brighthouse Life Insurance Company paid an ordinary cash dividend of $500 million to BH Holdings. During the first quarter of 2020, Brighthouse Life Insurance Company paid an ordinary cash dividend of $300 million to BH Holdings, which was accounted for as a return of capital.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months Ended June 30, 2021
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at March 31, 2021	$	3,150	$	49	$	(14)	$	3,185
OCI before reclassifications	1,284		114		2		1,400
Deferred income tax benefit (expense)	(270)		(24)		(1)		(295)
AOCI before reclassifications, net of income tax	4,164		139		(13)		4,290
Amounts reclassified from AOCI	30		(2)		—		28
Deferred income tax benefit (expense)	(7)		1		—		(6)
Amounts reclassified from AOCI, net of income tax	23		(1)		—		22
Balance at June 30, 2021	$	4,187	$	138	$	(13)	$	4,312

39

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Equity (continued)

	Three Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at March 31, 2020	$	1,867	$	598	$	(20)	$	2,445
OCI before reclassifications	2,865		(139)		6		2,732
Deferred income tax benefit (expense)	(602)		29		(9)		(582)
AOCI before reclassifications, net of income tax	4,130		488		(23)		4,595
Amounts reclassified from AOCI	23		(4)		—		19
Deferred income tax benefit (expense)	(5)		1		—		(4)
Amounts reclassified from AOCI, net of income tax	18		(3)		—		15
Balance at June 30, 2020	$	4,148	$	485	$	(23)	$	4,610

	Six Months Ended June 30, 2021
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at December 31, 2020	$	5,321	$	108	$	(8)	$	5,421
OCI before reclassifications	(1,453)		47		(6)		(1,412)
Deferred income tax benefit (expense)	305		(10)		1		296
AOCI before reclassifications, net of income tax	4,173		145		(13)		4,305
Amounts reclassified from AOCI	18		(9)		—		9
Deferred income tax benefit (expense)	(4)		2		—		(2)
Amounts reclassified from AOCI, net of income tax	14		(7)		—		7
Balance at June 30, 2021	$	4,187	$	138	$	(13)	$	4,312

	Six Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at December 31, 2019	$	3,066	$	163	$	(14)	$	3,215
OCI before reclassifications (2)	1,356		414		—		1,770
Deferred income tax benefit (expense)	(284)		(87)		(9)		(380)
AOCI before reclassifications, net of income tax	4,138		490		(23)		4,605
Amounts reclassified from AOCI	13		(6)		—		7
Deferred income tax benefit (expense)	(3)		1		—		(2)
Amounts reclassified from AOCI, net of income tax	10		(5)		—		5
Balance at June 30, 2020	$	4,148	$	485	$	(23)	$	4,610

_______________

(1)See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

(2)Includes $3 million related to the adoption of the allowance for credit losses guidance.

40

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Equity (continued)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(31)	$	(19)	$	(16)	$	(7)	Net investment gains (losses)
Net unrealized investment gains (losses)	1		(4)		(2)		(6)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(30)		(23)		(18)		(13)
Income tax (expense) benefit	7		5		4		3
Net unrealized investment gains (losses), net of income tax	(23)		(18)		(14)		(10)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		—		1		1		Net derivative gains (losses)
Interest rate swaps	1		—		2		1		Net investment income
Foreign currency swaps	1		4		6		4		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	2		4		9		6
Income tax (expense) benefit	(1)		(1)		(2)		(1)
Gains (losses) on cash flow hedges, net of income tax	1		3		7		5
Total reclassifications, net of income tax	$	(22)	$	(15)	$	(7)	$	(5)

8. Other Revenues and Other Expenses

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $66 million and $131 million for the three months and six months ended June 30, 2021, respectively, and $55 million and $114 million for the three months and six months ended June 30, 2020, respectively, of which substantially all were reported in the Annuities segment.

41

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Other Revenues and Other Expenses (continued)

Other Expenses

Information on other expenses was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Compensation	$	89	$	82	$	174	$	155
Contracted services and other labor costs	62		69		115		130
Transition services agreements	29		15		59		51
Establishment costs	28		53		44		93
Premium and other taxes, licenses and fees	11		12		24		23
Volume related costs, excluding compensation, net of DAC capitalization	170		150		328		272
Interest expense on debt	16		17		33		34
Other	60		49		112		99
Total other expenses	$	465	$	447	$	889	$	857

Related Party Expenses

See Note 10 for a discussion of related party expenses included in the table above.

9. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at June 30, 2021.

Matters as to Which an Estimate Can Be Made

For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of June 30, 2021, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $10 million.

42

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

9. Contingencies, Commitments and Guarantees (continued)

Matters as to Which an Estimate Cannot Be Made

For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Sales Practices Claims

Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Cost of Insurance Class Actions

Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part. Plaintiff was granted leave to amend the complaint. The Company intends to vigorously defend this matter.

Lawrence Martin v. Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY. Plaintiff is the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY filed a motion to dismiss in June 2021. The Company intends to vigorously defend this matter.

Summary

Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

43

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

9. Contingencies, Commitments and Guarantees (continued)

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Other Contingencies

As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for certain non-litigation loss contingencies when assertions are made involving disputes or other matters with counterparties to contractual arrangements entered into by the Company, including with third-party vendors. The Company establishes liabilities for such non-litigation loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed.

Disputes have arisen with counterparties in connection with reinsurance arrangements where the Company is acting as either the reinsured or the reinsurer. These disputes involve assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and in certain of such disputes the counterparty has made a request to arbitrate the dispute.

As of June 30, 2021, the Company estimates the amount of reasonably possible losses in excess of the amounts accrued for certain non-litigation loss contingencies to be up to approximately $125 million, which are primarily associated with reinsurance-related matters. For certain other reinsurance-related matters, the Company is not currently able to estimate the reasonably possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of such loss.

On a quarterly and annual basis, the Company reviews relevant information with respect to non-litigation contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $646 million and $210 million at June 30, 2021 and December 31, 2020, respectively.

Commitments to Fund Partnership Investments and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $2.2 billion and $1.7 billion at June 30, 2021 and December 31, 2020, respectively.

44

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

9. Contingencies, Commitments and Guarantees (continued)

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from $6 million to $112 million, with a cumulative maximum of $118 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company’s recorded liabilities were $1 million at both June 30, 2021 and December 31, 2020 for indemnities, guarantees and commitments.

10. Related Party Transactions

The Company has various existing arrangements with its Brighthouse Financial affiliates and had previous arrangements with MetLife, Inc. (together with its subsidiaries and affiliates, “MetLife”) for services necessary to conduct its activities. Certain of the MetLife services have continued, however, MetLife ceased to be a related party in June 2018. See Note 8 for amounts related to continuing transition services. Other material arrangements between the Company and its related parties not disclosed elsewhere are as follows:

Reinsurance Agreements

The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by related parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth.

Information regarding the significant effects of assumed reinsurance with New England Life Insurance Company (“NELICO”), an affiliate, included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Premiums	$	—	$	—	$	2	$	—
Universal life and investment-type product policy fees	$	1	$	2	$	3	$	4
Other revenues	$	—	$	1	$	1	$	1
Policyholder benefits and claims	$	4	$	6	$	11	$	23
Other expenses	$	(9)	$	(7)	$	(13)	$	(12)

45

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

10. Related Party Transactions (continued)

Information regarding the significant effects of assumed reinsurance with NELICO included on the interim condensed consolidated balance sheets was as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Assets
Premiums, reinsurance and other receivables (net of allowance for credit losses)	$	25	$	24
Liabilities
Future policy benefits	$	118	$	120
Policyholder account balances	$	471	$	596
Other policy-related balances	$	13	$	10
Other liabilities	$	13	$	9

The Company assumes risks from NELICO related to guaranteed minimum benefits written directly by the cedent. The assumed reinsurance agreements contain embedded derivatives and changes in the estimated fair value are included within net derivative gains (losses). The embedded derivatives associated with these agreements are included within policyholder account balances and were $471 million and $596 million at June 30, 2021 and December 31, 2020, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($50) million and $126 million for the three months and six months ended June 30, 2021, respectively, and $30 million and ($236) million for the three months and six months ended June 30, 2020, respectively.

Shared Services and Overhead Allocations

Brighthouse Services, LLC, an affiliate, currently provides the Company certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting and information technology. Revenues received from an affiliate related to these agreements, recorded in universal life and investment-type product policy fees, were $59 million and $116 million for the three months and six months ended June 30, 2021, respectively, and $50 million and $103 million for the three months and six months ended June 30, 2020, respectively. Costs incurred under these arrangements were $256 million and $484 million for the three months and six months ended June 30, 2021, respectively, and $261 million and $517 million for the three months and six months ended June 30, 2020, respectively, and were recorded in other expenses.

Included in these costs were those incurred related to the establishment of services and infrastructure to replace those previously provided by MetLife. The Company did not incur any costs for the three months and six months ended June 30, 2021 and incurred costs of $20 million and $42 million for the three months and six months ended June 30, 2020, respectively. The Company has been charged a fee to reflect the value of the available infrastructure and services provided by these costs. While management believes the method used to allocate expenses under this arrangement has been reasonable, the allocated expenses may not have been indicative of those of a standalone entity. These establishment costs were fully allocated as of December 31, 2020.

The Company had net receivables from/(payables to) affiliates, related to the items discussed above, of ($97) million and ($21) million at June 30, 2021 and December 31, 2020, respectively.

Broker-Dealer Transactions

The related party expense for the Company was commissions paid on the sale of variable products and passed through to the broker-dealer affiliate. The related party revenue for the Company was fee income passed through the broker-dealer affiliate from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. Fee income received related to these transactions and recorded in other revenues was $56 million and $111 million for the three months and six months ended June 30, 2021, respectively, and $46 million and $96 million for the three months and six months ended June 30, 2020, respectively. Commission expenses incurred related to these transactions and recorded in other expenses was $251 million and $487 million for the three months and six months ended June 30, 2021, respectively, and $197 million and $401 million for the three months and six months ended June 30, 2020, respectively. The Company also had related party fee income receivables of $18 million at both June 30, 2021 and December 31, 2020.

46

Brighthouse Life Insurance Company

(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

11. Subsequent Event

Dividend Transaction

On July 26, 2021, Brighthouse Reinsurance Company of Delaware received approval from the Delaware Department of Insurance for the payment of a $600 million extraordinary dividend to Brighthouse Life Insurance Company. Such dividend has not been paid as of August 9, 2021.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Index to Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Page
Introduction	49
Overview	49
Regulatory Developments	49
Summary of Critical Accounting Estimates	50
Non-GAAP Disclosures	51
Results of Operations	53
Liquidity and Capital Resources	57
Note Regarding Forward-Looking Statements	59

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Introduction

For purposes of this discussion, unless otherwise mentioned or unless the context indicates otherwise, “BLIC,” the “Company,” “we,” “our” and “us” refer to Brighthouse Life Insurance Company, a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. Brighthouse Life Insurance Company is a wholly-owned subsidiary of Brighthouse Holdings, LLC and an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (together with its subsidiaries and affiliates, “Brighthouse Financial”). Management’s narrative analysis of the results of operations is presented pursuant to General Instruction H(2)(a) of Form 10-Q. This narrative analysis should be read in conjunction with (i) the Interim Condensed Consolidated Financial Statements and related notes included elsewhere herein; (ii) our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 3, 2021 (the “2020 Annual Report”); (iii) our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (the “First Quarter Form 10-Q”) filed with the SEC on May 11, 2021; and (iv) our current reports on Form 8-K filed in 2021.

Overview

We offer a range of individual annuities and individual life insurance products. We are licensed and regulated in each U.S. jurisdiction where we conduct insurance business. Brighthouse Life Insurance Company is licensed to issue insurance products in all U.S. states (except New York), the District of Columbia, the Bahamas, Guam, Puerto Rico, the British Virgin Islands and the U.S. Virgin Islands. Our insurance subsidiary, Brighthouse Life Insurance Company of NY (“BHNY”), is only licensed to issue insurance products in New York.

For operating purposes, we have established three segments: (i) Annuities, (ii) Life and (iii) Run-off, which consists of products that are no longer actively sold and are separately managed. In addition, we report certain of our results of operations in Corporate & Other. See “Business — Segments and Corporate & Other” included in our 2020 Annual Report, as well as Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information regarding our segments and Corporate & Other.

COVID-19 Pandemic

We continue to closely monitor developments related to the worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), which has negatively impacted us in certain respects. At this time, it continues to not be possible to estimate the severity or duration of the pandemic, including the severity, duration and frequency of any additional “waves” of the pandemic or the efficacy of any therapeutic treatments and vaccines for COVID-19, including their efficacy with respect to variants of COVID-19 that have emerged or could emerge in the future. It is likewise not possible to predict or estimate the longer-term effects of the pandemic, or any actions taken to contain or address the pandemic, on the economy at large and on our business, financial condition, results of operations and prospects, including the impact on our investment portfolio and our ratings, or the need for us in the future to revisit or revise aspects of our business model or targets previously provided to the markets. See “Business — Regulation,” “Risk Factors — Risks Related to Our Business — The ongoing COVID-19 pandemic could materially adversely affect our business, financial condition and results of operations, including our capitalization and liquidity” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview — COVID-19 Pandemic” included in our 2020 Annual Report, as well as Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements.

Regulatory Developments

We, including our insurance subsidiary, BHNY, and our reinsurance subsidiary, Brighthouse Reinsurance Company of Delaware, are regulated primarily at the state level, with some products and services also subject to federal regulation. In addition, Brighthouse Life Insurance Company and its affiliates are subject to regulation under the insurance holding company laws of various U.S. jurisdictions. Furthermore, some of our operations, products and services are subject to the Employee Retirement Income Security Act of 1974, consumer protection laws, securities, broker-dealer and investment advisor regulations, as well as environmental and unclaimed property laws and regulations. See “Business — Regulation,” as well as “Risk Factors — Regulatory and Legal Risks” included in our 2020 Annual Report, as amended or supplemented herein.

Surplus and Capital; Risk-Based Capital

The National Association of Insurance Commissioners (“NAIC”) is an organization whose mission is to assist state insurance regulatory authorities in serving the public interest and achieving the insurance regulatory goals of its members, the state insurance regulatory officials. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate their regulatory oversight. The NAIC provides standardized insurance industry accounting and reporting guidance through its Accounting Practices and Procedures Manual (the “Manual”), which states

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have largely adopted by regulation. However, statutory accounting principles continue to be established by individual state laws, regulations and permitted practices, which may differ from the Manual. Changes to the Manual or modifications by the various states may impact our statutory capital and surplus.

The NAIC has established regulations that provide minimum capitalization requirements based on risk-based capital (“RBC”) formulas for insurance companies. Insurers are required to maintain their capital and surplus at or above minimum levels. Regulators have discretionary authority, in connection with the continued licensing of an insurer, to limit or prohibit the insurer’s sales to policyholders if, in their judgment, the regulators determine that such insurer has not maintained the minimum surplus or capital or that the further transaction of business will be hazardous to policyholders. Brighthouse Life Insurance Company and BHNY are subject to RBC requirements and other minimum statutory capital and surplus requirements imposed under the laws of Delaware and New York, respectively. RBC is based on a formula calculated by applying factors to various asset, premium, claim, expense and statutory reserve items. The formula takes into account the risk characteristics of the insurer and is calculated on an annual basis. The major categories of risk involved are asset risk, insurance risk, interest rate risk, market risk and business risk, including equity, interest rate and expense recovery risks associated with variable annuities that contain guaranteed minimum death and living benefits. The RBC framework is used as an early warning regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action, and not as a means to rank insurers generally. State insurance laws provide insurance regulators the authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not meet or exceed certain RBC levels. See “Risk Factors — Regulatory and Legal Risks — A decrease in the RBC ratio of Brighthouse Life Insurance Company or BHNY (as a result of a reduction in statutory surplus or increase in RBC requirements) could result in increased scrutiny by insurance regulators and rating agencies and could have a material adverse effect on our financial condition and results of operations” and Note 10 of the Notes to the Consolidated Financial Statements in our 2020 Annual Report.

In June 2021, the NAIC adopted changes to the RBC factors for bonds and real estate and created a new set of RBC charges for longevity risk. These changes will become effective on December 31, 2021. The modified bond and real estate factors, in the aggregate, are expected to have a minimal impact on our RBC ratios.

In December 2020, the NAIC adopted a group capital calculation tool that uses an RBC aggregation methodology for all entities within an insurance holding company system. The NAIC has stated that the calculation will be a tool to assist regulators in assessing group risks and capital adequacy and does not constitute a minimum capital requirement or standard, however, there is no guarantee that will be the case in the future. It is unclear how the group capital calculation will interact with existing capital requirements for insurance companies in the United States.

In August 2018, the NAIC adopted the framework for variable annuity reserve and capital reform (“VA Reform”). The revisions, which have resulted in substantial changes in reserves, statutory surplus and capital requirements, are designed to mitigate the incentive for insurers to engage in captive reinsurance transactions by making improvements to Actuarial Guideline 43 and the Life Risk Based Capital C3 Phase II capital requirements. VA Reform is intended to (i) mitigate the asset-liability accounting mismatch between hedge instruments and statutory instruments and statutory liabilities, (ii) remove the non-economic volatility in statutory capital charges and the resulting solvency ratios and (iii) facilitate greater harmonization across insurers and their products for greater comparability. VA Reform became effective as of January 1, 2020, with early adoption permitted as of December 31, 2019. Brighthouse elected to early adopt the changes effective December 31, 2019. Further changes to this framework, including changes resulting from work currently underway by the NAIC to find a suitable replacement for the Economic Scenario Generators developed by the American Academy of Actuaries, could negatively impact our statutory surplus and required capital.

See “Risk Factors — Regulatory and Legal Risks — Our business is highly regulated, and changes in regulation and in supervisory and enforcement policies may materially impact our capitalization or cash flows, reduce our profitability and limit our growth” included in our 2020 Annual Report.

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the Interim Condensed Consolidated Financial Statements.

The most critical estimates include those used in determining:

•liabilities for future policy benefits;

•amortization of deferred policy acquisition costs (“DAC”);

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•estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation; and

•measurement of income taxes and the valuation of deferred tax assets.

In applying our accounting policies, we make subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to our business and operations. Actual results could differ from these estimates.

The above critical accounting estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and Note 1 of the Notes to the Consolidated Financial Statements included in our 2020 Annual Report.

Non-GAAP Disclosures

Our definitions of the non-GAAP measures may differ from those used by other companies.

Non-GAAP Financial Disclosures

Adjusted Earnings

In this report, we present adjusted earnings, which excludes net income (loss) attributable to noncontrolling interests, as a measure of our performance that is not calculated in accordance with GAAP. We believe the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community and contract holders by highlighting the results of operations and the underlying profitability drivers of our business. However, adjusted earnings should not be viewed as a substitute for net income (loss) attributable to Brighthouse Life Insurance Company, which is the most directly comparable financial measure calculated in accordance with GAAP. See “— Results of Operations” for a reconciliation of adjusted earnings to net income (loss) attributable to Brighthouse Life Insurance Company.

Adjusted earnings, which may be positive or negative, is used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. This financial measure focuses on our primary businesses principally by excluding the impact of market volatility, which could distort trends.

The following are significant items excluded from total revenues, net of income tax, in calculating adjusted earnings:

•Net investment gains (losses);

•Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”); and

•Certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB Fees”).

The following are significant items excluded from total expenses, net of income tax, in calculating adjusted earnings:

•Amounts associated with benefits related to GMIBs (“GMIB Costs”);

•Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and

•Amortization of DAC and value of business acquired (“VOBA”) related to (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.

The tax impact of the adjustments mentioned is calculated net of the statutory tax rate, which could differ from our effective tax rate.

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We present adjusted earnings in a manner consistent with management’s view of the primary business activities that drive the profitability of our core businesses. The following table illustrates how each component of adjusted earnings is calculated from the GAAP statement of operations line items:

Component of Adjusted Earnings		How Derived from GAAP (1)
(i)	Fee income	(i)	Universal life and investment-type policy fees (excluding (a) unearned revenue adjustments related to net investment gains (losses) and net derivative gains (losses) and (b) GMIB Fees) plus Other revenues (excluding other revenues associated with related party reinsurance) and amortization of deferred gain on reinsurance.
(ii)	Net investment spread	(ii)	Net investment income plus Investment Hedge Adjustments and interest received on ceded fixed annuity reinsurance deposit funds reduced by Interest credited to policyholder account balances and interest on future policy benefits.
(iii)	Insurance-related activities	(iii)	Premiums less Policyholder benefits and claims (excluding (a) GMIB Costs, (b) Market Value Adjustments, (c) interest on future policy benefits and (d) amortization of deferred gain on reinsurance) plus the pass through of performance of ceded separate account assets.
(iv)	Amortization of DAC and VOBA	(iv)	Amortization of DAC and VOBA (excluding amounts related to (a) net investment gains (losses), (b) net derivative gains (losses), (c) GMIB Fees and GMIB Costs and (d) Market Value Adjustments).
(v)	Other expenses, net of DAC capitalization	(v)	Other expenses reduced by capitalization of DAC.
(vi)	Provision for income tax expense (benefit)	(vi)	Tax impact of the above items.

______________

(1)Italicized items indicate GAAP statement of operations line items.

Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance. Accordingly, we report adjusted earnings by segment in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements.

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Results of Operations

Consolidated Results for the Six Months Ended June 30, 2021 and 2020

Unless otherwise noted, all amounts in the following discussions of our results of operations are stated before income tax except for adjusted earnings, which are presented net of income tax.

	Six Months Ended June 30,
	2021		2020
	(In millions)
Revenues
Premiums	$	337	$	376
Universal life and investment-type product policy fees	1,504		1,398
Net investment income	2,365		1,531
Other revenues	170		151
Net investment gains (losses)	(21)		(52)
Net derivative gains (losses)	(2,105)		4,097
Total revenues	2,250		7,501
Expenses
Policyholder benefits and claims	1,358		1,944
Interest credited to policyholder account balances	572		520
Capitalization of DAC	(233)		(187)
Amortization of DAC and VOBA	56		625
Interest expense on debt	33		34
Other expenses	1,089		1,010
Total expenses	2,875		3,946
Income (loss) before provision for income tax	(625)		3,555
Provision for income tax expense (benefit)	(164)		713
Net income (loss)	(461)		2,842
Less: Net income (loss) attributable to noncontrolling interests	1		1
Net income (loss) attributable to Brighthouse Life Insurance Company	$	(462)	$	2,841

The components of net income (loss) were as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
GMLB Riders	$	(1,215)	$	1,782
Other derivative instruments	(513)		1,635
Net investment gains (losses)	(21)		(52)
Other adjustments	24		(36)
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests	1,099		225
Income (loss) attributable to Brighthouse Life Insurance Company before provision for income tax	(626)		3,554
Provision for income tax expense (benefit)	(164)		713
Net income (loss) attributable to Brighthouse Life Insurance Company	$	(462)	$	2,841

Six Months Ended June 30, 2021 Compared with the Six Months Ended June 30, 2020

Loss before provision for income tax was $626 million ($462 million, net of income tax), a decrease of $4.2 billion ($3.3 billion, net of income tax) from income before provision for income tax of $3.6 billion ($2.8 billion, net of income tax) in the prior period.

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The decrease in income before provision for income tax was driven by the following unfavorable items:

•losses from guaranteed minimum living benefits (“GMLB”) riders (“GMLB Riders”) in the current period compared to gains in the prior period, see “— GMLB Riders for the Six Months Ended June 30, 2021 and 2020”; and

•current period losses on interest rate derivatives used to manage interest rate exposure in our universal life with secondary guarantees (“ULSG”) business due to the decrease in the long-term benchmark interest rate.

The decrease in income before provision for income tax was partially offset by the following favorable items:

•higher pre-tax adjusted earnings, as discussed in greater detail below;

•lower policyholder benefits and claims, included in other adjustments, resulting from the adjustment for market performance related to participating products in our run-off business; and

•lower net investment losses reflecting:

◦lower current period net losses on changes in mortgage loans and fixed maturity security reserves; and

◦current period net mark-to-market gains on equity securities compared to prior period net losses.

The provision for income tax, expressed as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 26% in the current period compared to 20% in the prior period. The increase in the effective tax rate is driven by higher pre-tax adjusted earnings, as discussed in greater detail below. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

Reconciliation of Net Income (Loss) to Adjusted Earnings

The reconciliation of net income (loss) attributable to Brighthouse Life Insurance Company to adjusted earnings was as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
Net income (loss) attributable to Brighthouse Life Insurance Company	$	(462)	$	2,841
Add: Provision for income tax expense (benefit)	(164)		713
Income (loss) attributable to Brighthouse Life Insurance Company before provision for income tax	(626)		3,554
Less: GMLB Riders	(1,215)		1,782
Less: Other derivative instruments	(513)		1,635
Less: Net investment gains (losses)	(21)		(52)
Less: Other adjustments	24		(36)
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests	1,099		225
Less: Provision for income tax expense (benefit)	199		14
Adjusted earnings	$	900	$	211

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Consolidated Results for the Six Months Ended June 30, 2021 and 2020 — Adjusted Earnings

The components of adjusted earnings were as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
Fee income	$	1,553	$	1,425
Net investment spread	1,451		588
Insurance-related activities	(747)		(709)
Amortization of DAC and VOBA	(268)		(221)
Other expenses, net of DAC capitalization	(889)		(857)
Less: Net income (loss) attributable to noncontrolling interests	1		1
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests	1,099		225
Provision for income tax expense (benefit)	199		14
Adjusted earnings	$	900	$	211

Six Months Ended June 30, 2021 Compared with the Six Months Ended June 30, 2020

Adjusted earnings were $900 million, an increase of $689 million.

Key net favorable impacts were:

•higher net investment spread due to:

◦higher returns on other limited partnerships for the comparative measurement period; and

◦higher average invested assets resulting from positive net flows in the general account;

partially offset by

◦lower investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at lower yields than the portfolio average; and

◦higher interest credited to policyholders due to higher imputed interest on insurance liabilities related to modeling improvements resulting from an actuarial system conversion in our life business in the fourth quarter of 2020; and

•higher asset-based fees resulting from higher average separate account balances, a portion of which is offset in other expenses.

Key net unfavorable impacts were:

•higher net amortization of DAC and VOBA due to:

◦the net decrease in future gross profits from favorable equity market performance in our annuities business;

partially offset by

◦an adjustment in the current period related to modeling improvements resulting from an actuarial system conversion in our life business;

•higher net costs associated with insurance-related activities due to:

◦higher paid claims, net of reinsurance, in our run-off and life businesses;

partially offset by

◦a decrease in guaranteed minimum death benefits (“GMDB”) liabilities and deferred sales inducements (“DSI”) resulting from favorable equity market performance in our annuities business; and

◦an adjustment in the current period related to modeling improvements resulting from an actuarial system conversion in our life business;

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•higher other expenses due to:

◦higher asset-based variable annuity expenses resulting from higher average separate account balances, a portion of which is offset in fee income;

◦a one-time credit in the prior period from the exit of various transition services agreements with MetLife; and

◦underwriting fees associated with funding agreements issued in connection with our institutional spread margin business;

partially offset by

◦lower establishment costs related to planned technology expenses.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 18% in the current period compared to 6% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

GMLB Riders for the Six Months Ended June 30, 2021 and 2020

The overall impact on income (loss) before provision for income tax from the performance of GMLB Riders, which includes (i) changes in carrying value of the GAAP liabilities, (ii) the mark-to-market of hedges and reinsurance, (iii) fees and (iv) associated DAC offsets, was as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
Liabilities	$	(605)	$	(1,938)
Hedges	(1,140)		3,617
Ceded reinsurance	(65)		103
Fees (1)	392		390
GMLB DAC	203		(390)
Total GMLB Riders	$	(1,215)	$	1,782

______________

(1)Excludes living benefit fees, included as a component of adjusted earnings, of $29 million and $28 million for the six months ended June 30, 2021 and 2020, respectively.

Six Months Ended June 30, 2021 Compared with the Six Months Ended June 30, 2020

Comparative results from GMLB Riders were unfavorable by $3.0 billion, primarily driven by:

•unfavorable changes in our GMLB hedges;

•unfavorable changes to the estimated fair value of Shield embedded derivative liabilities (“Shield liabilities”); and

•unfavorable changes in ceded reinsurance;

partially offset by

•favorable changes to the estimated fair value of variable annuity liability reserves; and

•favorable changes in GMLB DAC.

Higher relative equity markets resulted in the following impacts:

•unfavorable changes to the estimated fair value of Shield liabilities;

•unfavorable changes in our GMLB hedges; and

•unfavorable changes in ceded reinsurance;

partially offset by

•favorable changes to the estimated fair value of variable annuity liability reserves; and

•favorable changes to GMLB DAC.

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Higher interest rates resulted in the following impacts:

•unfavorable changes in our GMLB hedges;

•unfavorable changes to GMLB DAC;

•unfavorable changes in ceded reinsurance; and

•unfavorable changes to the estimated fair value of Shield liabilities;

partially offset by

•favorable changes to the estimated fair value of variable annuity liability reserves.

The narrowing of our credit default swap spreads combined with a decrease in the underlying variable annuity liability reserves resulted in an unfavorable change in the adjustment for nonperformance risk, net of a favorable change in GMLB DAC.

Liquidity and Capital Resources

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions, volatility or disruptions in global capital markets, particular markets or financial asset classes can impact us adversely, in part because we have a large investment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors. For further information regarding market factors that could affect our ability to meet liquidity and capital needs, including those related to the COVID-19 pandemic, see “— Overview — COVID-19 Pandemic.”

Rating Agencies

Credit rating agencies may continue to review and adjust our ratings. For example, in April 2020, Fitch revised the rating outlook for Brighthouse Life Insurance Company and certain affiliates to negative from stable due to the disruption to economic activity and the financial markets from the COVID-19 pandemic. This action by Fitch followed its revision of the rating outlook on the U.S. life insurance industry to negative. In April 2021, Fitch revised the rating outlook for Brighthouse Life Insurance Company and certain affiliates from negative back to stable. See “Risk Factors — Risks Related to Our Business — A downgrade or a potential downgrade in our financial strength ratings could result in a loss of business and materially adversely affect our financial condition and results of operations” included in our 2020 Annual Report for an in-depth description of the impact of a potential ratings downgrade.

Sources and Uses of Liquidity and Capital

In addition to the summary description of liquidity and capital sources discussed in “— Sources and Uses of Liquidity and Capital” in our 2020 Annual Report, the following additional information is provided regarding our primary sources of liquidity and capital:

Funding Agreements

From time to time, Brighthouse Life Insurance Company issues funding agreements and uses the proceeds from such issuances for spread lending purposes in connection with our institutional spread margin business or to provide additional liquidity. The institutional spread margin business is comprised of active funding agreements issued in connection with the programs described in more detail below. The activity under all such funding agreements is reported in policyholder account balances. See Note 3 of the Notes to the Consolidated Financial Statements included in our 2020 Annual Report for additional information on funding agreements.

Funding Agreement-Backed Commercial Paper Program

In July 2021, Brighthouse Life Insurance Company established a funding agreement-backed commercial paper program (the “FABCP Program”) for spread lending purposes, pursuant to which a special purpose limited liability company (the “SPLLC”) may issue commercial paper and deposit the proceeds with Brighthouse Life Insurance Company under a funding agreement issued by Brighthouse Life Insurance Company to the SPLLC. The maximum aggregate principal amount permitted to be outstanding at any one time under the FABCP Program is $3.0 billion. Activity related to this funding agreement will be reported in Corporate & Other.

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Funding Agreement-Backed Notes Program

In April 2021, Brighthouse Life Insurance Company established a funding agreement-backed notes program (the “FABN Program”), pursuant to which Brighthouse Life Insurance Company may issue funding agreements to a special purpose statutory 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. Activity related to these funding agreements is reported in Corporate & Other.

Federal Home Loan Bank Funding Agreements

Brighthouse Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Atlanta, where we maintain an active funding agreement program, under which funding agreements may be issued either (i) for spread lending purposes or (ii) to provide additional liquidity. Activity related to these funding agreements is reported in Corporate & Other.

Farmer Mac Funding Agreements

Brighthouse Life Insurance Company has a funding agreement program with the Federal Agricultural Mortgage Corporation and its affiliate Farmer Mac Mortgage Securities Corporation (“Farmer Mac”) with a term ending on December 31, 2023, pursuant to which the parties may enter into funding agreements in an aggregate amount of up to $500 million either (i) for spread lending purposes or (ii) to provide additional liquidity. Activity related to these funding agreements is reported in Corporate & Other.

Information regarding funding agreements issued for spread lending purposes is as follows:

	Aggregate Principal Amount Outstanding				Issuances
					Six Months Ended June 30,
	June 30, 2021		December 31, 2020		2021		2020
	(In millions)
FABCP Program (1)	$	—	$	—	$	—	$	—
FABN Program	2,000		—		2,000		—
FHLB Funding Agreements (2)	600		—		600		—
Farmer Mac Funding Agreements	25		—		25		—
Total	$	2,625	$	—	$	2,625	$	—

__________________

(1)Subsequent to June 30, 2021 and through August 4, 2021, Brighthouse Life Insurance Company has received deposits of $1.7 billion under the FABCP Program, which was established in July 2021.

(2)Additionally, in April 2020, Brighthouse Life Insurance Company issued funding agreements for an aggregate collateralized borrowing of $1.0 billion to provide a readily available source of contingent liquidity and repaid such borrowing during the fourth quarter of 2020.

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Note Regarding Forward-Looking Statements

This report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other oral or written statements that we make from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. We have tried, wherever possible, to identify such statements using words such as “anticipate,” “estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,” “goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,” “continue,” “aim,” “plan,” “believe” and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of BLIC. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others:

•differences between actual experience and actuarial assumptions and the effectiveness of our actuarial models;

•higher risk management costs and exposure to increased market risk due to guarantees within certain of our products;

•the effectiveness of our variable annuity exposure risk management strategy and the impact of such strategy on volatility in our profitability measures and negative effects on our statutory capital;

•material differences from actual outcomes compared to the sensitivities calculated under certain scenarios and sensitivities that we may utilize in connection with our variable annuity risk management strategies;

•the impact of interest rates on our future ULSG policyholder obligations and net income volatility;

•the impact of the COVID-19 pandemic;

•the potential material adverse effect of changes in accounting standards, practices or policies applicable to us, including changes in the accounting for long-duration contracts;

•loss of business and other negative impacts resulting from a downgrade or a potential downgrade in our financial strength ratings;

•the availability of reinsurance and the ability of the counterparties to our reinsurance or indemnification arrangements to perform their obligations thereunder;

•heightened competition, including with respect to service, product features, scale, price, actual or perceived financial strength, claims-paying ratings, financial strength ratings, e-business capabilities and name recognition;

•our ability to market and distribute our products through distribution channels;

•any failure of third parties to provide services we need, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance we need from third parties;

•the adverse impact on liabilities for policyholder claims as a result of extreme mortality events;

•the impact of adverse capital and credit market conditions, including with respect to our ability to meet liquidity needs and access capital;

•the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geo-political or catastrophic events, on our investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income;

•the impact of events that adversely affect issuers, guarantors or collateral relating to our investments or our derivatives counterparties, on impairments, valuation allowances, reserves, net investment income and changes in unrealized gain or loss positions;

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•the impact of changes in regulation and in supervisory and enforcement policies on our insurance business or other operations;

•the potential material negative tax impact of potential future tax legislation that could make some of our products less attractive to consumers;

•the effectiveness of our policies and procedures in managing risk;

•the loss or disclosure of confidential information, damage to our reputation and impairment of our ability to conduct business effectively as a result of any failure in cyber- or other information security systems;

•whether all or any portion of the tax consequences of our separation from MetLife are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact us;

•the uncertainty of the outcome of any disputes with MetLife over tax-related or other matters and agreements or disagreements regarding MetLife’s or our obligations under our other agreements; and

•other factors described in this report and from time to time in documents that we file with the SEC.

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in our 2020 Annual Report, particularly in the sections entitled “Risk Factors” and “Quantitative and Qualitative Disclosures About Market Risk,” as well as in our other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Item 4. Controls and Procedures

Management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that these disclosure controls and procedures were effective as of June 30, 2021.

MetLife provides certain services to the Company on a transitional basis through services agreements. The Company continues to change business processes, implement systems and establish new third-party arrangements, as a subsidiary of Brighthouse Financial, Inc. We consider these in aggregate to be material changes in our internal control over financial reporting.

Other than as noted above, there were no changes to the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, these internal controls over financial reporting.

Part II — Other Information

Item 1. Legal Proceedings

See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements.

Item 1A. Risk Factors

We discuss in this report, in our 2020 Annual Report and in our other filings with the SEC, various risks that may materially affect our business. In addition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Note Regarding Forward-Looking Statements” included herein. There have been no material changes to our risk factors from the risk factors previously disclosed in our 2020 Annual Report.

60

Item 6. Exhibits

(Note Regarding Reliance on Statements in Our Contracts: In reviewing the agreements included as exhibits herein, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about Brighthouse Life Insurance Company, its subsidiaries or affiliates, or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about Brighthouse Life Insurance Company, its subsidiaries and affiliates may be found elsewhere herein and Brighthouse Life Insurance Company’s other public filings, which are available without charge through the U.S. Securities and Exchange Commission website at www.sec.gov.)

Exhibit No.	Description
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
104*	The cover page of Brighthouse Life Insurance Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in Inline XBRL (included within the Exhibit 101 attachments).

* Filed herewith.

** Furnished herewith.

61

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BRIGHTHOUSE LIFE INSURANCE COMPANY
By:		/s/ Lynn A. Dumais
	Name:	Lynn A. Dumais
	Title:	Vice President and Chief Accounting Officer
		(Duly Authorized Officer and Principal Accounting Officer)

Date: August 9, 2021

62

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Eric T. Steigerwalt, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Brighthouse Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2021

/s/ Eric T. Steigerwalt

Eric T. Steigerwalt
Chairman of the Board, President and
Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Edward A. Spehar, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Brighthouse Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2021

/s/ Edward A. Spehar

Edward A. Spehar
Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Eric T. Steigerwalt, certify that, to my knowledge, (i) Brighthouse Life Insurance Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Brighthouse Life Insurance Company.

Date: August 9, 2021

/s/ Eric T. Steigerwalt

Eric T. Steigerwalt
Chairman of the Board, President and
Chief Executive Officer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Brighthouse Life Insurance Company (the “Company”) for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Edward A. Spehar, certify that, to my knowledge, (i) Brighthouse Life Insurance Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Brighthouse Life Insurance Company.

Date: August 9, 2021

/s/ Edward A. Spehar

Edward A. Spehar
Vice President and Chief Financial Officer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Brighthouse Life Insurance Company (the “Company”) for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 09, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity File Number	033-03094
Entity Central Index Key	0000733076
Entity Registrant Name	Brighthouse Life Insurance Company
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-0566090
Entity Address, Address Line One	11225 North Community House Road
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28277
City Area Code	980
Local Phone Number	365-7100
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,000

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $74,489 and $69,483, respectively; allowance for credit losses of $9 and $2, respectively)	$ 83,711	$ 81,299
Equity securities, at estimated fair value	86	133
Mortgage loans (net of allowance for credit losses of $96 and $94, respectively)	16,652	15,722
Policy loans	856	884
Limited partnerships and limited liability companies	3,545	2,809
Short-term investments, principally at estimated fair value	206	1,885
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $13 and $13, respectively)	2,876	3,757
Total investments	107,932	106,489
Cash and cash equivalents	4,195	3,684
Accrued investment income	809	656
Premiums, reinsurance and other receivables (net of allowance for credit losses of $10 and $10, respectively)	15,682	15,721
Deferred policy acquisition costs and value of business acquired	4,603	4,357
Other assets	393	395
Separate account assets	107,522	103,986
Total assets	241,136	235,288
Liabilities
Future policy benefits	43,222	44,266
Policyholder account balances	59,668	53,946
Other policy-related balances	3,091	3,114
Payables for collateral under securities loaned and other transactions	5,132	5,237
Long-term debt	842	843
Current income tax payable	133	110
Deferred income tax liability	1,002	1,461
Other liabilities	4,230	4,210
Separate account liabilities	107,522	103,986
Total liabilities	224,842	217,173
Contingencies, Commitments and Guarantees (Note 9)
Brighthouse Life Insurance Company’s stockholder’s equity:
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding	75	75
Additional paid-in capital	18,073	18,323
Retained earnings (deficit)	(6,181)	(5,719)
Accumulated other comprehensive income (loss)	4,312	5,421
Total Brighthouse Life Insurance Company’s stockholder’s equity	16,279	18,100
Noncontrolling interests	15	15
Total equity	16,294	18,115
Total liabilities and equity	$ 241,136	$ 235,288

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets
Fixed maturity securities, amortized cost	$ 74,489	$ 69,483
Fixed maturity securities, allowance for credit losses	9	2
Mortgage loans valuation allowances	96	94
Leveraged leases, allowance for credit losses	13	13
Reinsurance Recoverable, Allowance for Credit Loss	$ 10	$ 10
Brighthouse Life Insurance Company’s stockholder’s equity:
Common stock, par value	$ 25,000	$ 25,000
Common stock, shares authorized	4,000	4,000
Common stock, shares issued	3,000	3,000
Common stock, shares outstanding	3,000	3,000

XML

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues
Premiums	$ 156	$ 185	$ 337	$ 376
Universal life and investment-type product policy fees	761	697	1,504	1,398
Net investment income	1,196	635	2,365	1,531
Other revenues	74	67	170	151
Net investment gains (losses)	(33)	(33)	(21)	(52)
Net derivative gains (losses)	(718)	(2,650)	(2,105)	4,097
Total revenues	1,436	(1,099)	2,250	7,501
Expenses
Policyholder benefits and claims	714	811	1,358	1,944
Interest credited to policyholder account balances	282	269	572	520
Amortization of deferred policy acquisition costs and value of business acquired	6	(77)	56	625
Other expenses	465	447	889	857
Total expenses	1,467	1,450	2,875	3,946
Income (loss) before provision for income tax	(31)	(2,549)	(625)	3,555
Provision for income tax expense (benefit)	(23)	(552)	(164)	713
Net income (loss)	(8)	(1,997)	(461)	2,842
Less: Net income (loss) attributable to noncontrolling interests	1	1	1	1
Net income (loss) attributable to Brighthouse Life Insurance Company	(9)	(1,998)	(462)	2,841
Comprehensive income (loss)	1,119	168	(1,570)	4,237
Less: Comprehensive income (loss) attributable to noncontrolling interests	1	1	1	1
Comprehensive income (loss) attributable to Brighthouse Life Insurance Company	$ 1,118	$ 167	$ (1,571)	$ 4,236

XML

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Income (Loss)	Brighthouse Life Insurance Company’s Stockholder’s Equity	Noncontrolling Interests	Cumulative effect of change in accounting principle, net of income tax	Cumulative effect of change in accounting principle, net of income tax Retained Earnings (Deficit)	Cumulative effect of change in accounting principle, net of income tax Accumulated Other Comprehensive Income (Loss)	Cumulative effect of change in accounting principle, net of income tax Brighthouse Life Insurance Company’s Stockholder’s Equity	Cumulative Effect, Adjusted Balance	Cumulative Effect, Adjusted Balance Common Stock	Cumulative Effect, Adjusted Balance Additional Paid-in Capital	Cumulative Effect, Adjusted Balance Retained Earnings (Deficit)	Cumulative Effect, Adjusted Balance Accumulated Other Comprehensive Income (Loss)	Cumulative Effect, Adjusted Balance Brighthouse Life Insurance Company’s Stockholder’s Equity	Cumulative Effect, Adjusted Balance Noncontrolling Interests
Beginning Balance at Dec. 31, 2019	$ 18,479	$ 75	$ 19,073	$ (3,899)	$ 3,215	$ 18,464	$ 15	$ (11)	$ (14)	$ 3	$ (11)	$ 18,468	$ 75	$ 19,073	$ (3,913)	$ 3,218	$ 18,453	$ 15
Dividends paid to parent	(300)		(300)			(300)
Net income (loss)	4,839			4,839		4,839
Other comprehensive income (loss), net of income tax	(773)				(773)	(773)
Ending Balance at Mar. 31, 2020	22,234	75	18,773	926	2,445	22,219	15
Beginning Balance at Dec. 31, 2019	18,479	75	19,073	(3,899)	3,215	18,464	15	$ (11)	$ (14)	$ 3	$ (11)	$ 18,468	$ 75	$ 19,073	$ (3,913)	$ 3,218	$ 18,453	$ 15
Net income (loss)	2,842
Ending Balance at Jun. 30, 2020	21,901	75	18,773	(1,572)	4,610	21,886	15
Beginning Balance at Mar. 31, 2020	22,234	75	18,773	926	2,445	22,219	15
Dividends paid to parent	(500)			(500)		(500)
Change in noncontrolling interests	(1)					0	(1)
Net income (loss)	(1,997)			(1,998)		(1,998)	1
Other comprehensive income (loss), net of income tax	2,165				2,165	2,165
Ending Balance at Jun. 30, 2020	21,901	75	18,773	(1,572)	4,610	21,886	15
Beginning Balance at Dec. 31, 2020	18,115	75	18,323	(5,719)	5,421	18,100	15
Net income (loss)	(453)			(453)		(453)
Other comprehensive income (loss), net of income tax	(2,236)				(2,236)	(2,236)
Ending Balance at Mar. 31, 2021	15,426	75	18,323	(6,172)	3,185	15,411	15
Beginning Balance at Dec. 31, 2020	18,115	75	18,323	(5,719)	5,421	18,100	15
Net income (loss)	(461)
Ending Balance at Jun. 30, 2021	16,294	75	18,073	(6,181)	4,312	16,279	15
Beginning Balance at Mar. 31, 2021	15,426	75	18,323	(6,172)	3,185	15,411	15
Dividends paid to parent	(250)		(250)			(250)
Change in noncontrolling interests	(1)					0	(1)
Net income (loss)	(8)			(9)		(9)	1
Other comprehensive income (loss), net of income tax	1,127				1,127	1,127
Ending Balance at Jun. 30, 2021	$ 16,294	$ 75	$ 18,073	$ (6,181)	$ 4,312	$ 16,279	$ 15

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement of Cash Flows [Abstract]
Net cash provided by (used in) operating activities	$ 438	$ 617
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities	5,110	3,681
Sales, maturities and repayments of equity securities	101	27
Sales, maturities and repayments of mortgage loans	1,379	823
Sales, maturities and repayments of limited partnerships and limited liability companies	117	86
Purchases of fixed maturity securities	(9,805)	(5,773)
Purchases of equity securities	(6)	0
Purchases of mortgage loans	(2,247)	(920)
Purchases of limited partnerships and limited liability companies	(379)	(298)
Cash received in connection with freestanding derivatives	2,138	4,958
Cash paid in connection with freestanding derivatives	(2,894)	(2,138)
Receipts on loans to affiliate	0	100
Issuances of loans to affiliate	(1)	(100)
Net change in policy loans	28	84
Net change in short-term investments	1,679	(2,099)
Net change in other invested assets	(19)	(23)
Net cash provided by (used in) investing activities	(4,799)	(1,592)
Cash flows from financing activities
Policyholder account balances: Deposits	6,608	4,572
Policyholder account balances: Withdrawals	(1,261)	(1,127)
Net change in payables for collateral under securities loaned and other transactions	(105)	3,479
Long-term and short-term debt issued	0	100
Long-term and short-term debt repaid	(1)	(101)
Dividends paid to parent	(250)	(800)
Financing element on certain derivative instruments and other derivative related transactions, net	(118)	(698)
Other, net	(1)	(25)
Net cash provided by (used in) financing activities	4,872	5,400
Change in cash, cash equivalents and restricted cash	511	4,425
Cash, cash equivalents and restricted cash, beginning of period	3,684	2,493
Cash, cash equivalents and restricted cash, end of period	4,195	6,918
Supplemental disclosures of cash flow information
Net cash paid (received) for interest	34	35
Net cash paid (received) for income tax	$ (21)	$ 1

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business, Basis of Presentation and Summary of Significant Accounting Policies

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“BLIC” and the “Company” refer to Brighthouse Life Insurance Company, a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. Brighthouse Life Insurance Company is a wholly-owned subsidiary of Brighthouse Holdings, LLC (“BH Holdings”) and an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (“BHF” together with its subsidiaries and affiliates, “Brighthouse Financial”). BLIC offers a range of individual annuities and individual life insurance products. The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Life Insurance Company and its subsidiaries, as well as partnerships and limited liability companies (“LLCs”) that the Company controls. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.

Reclassifications

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current period presentation as may be discussed when applicable in the Notes to the Interim Condensed Consolidated Financial Statements.

Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2020 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2020 Annual Report.

Adoption of New Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. There were no ASUs adopted as of June 30, 2021.

Future Adoption of New Accounting Pronouncements

In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts). This new guidance is effective for fiscal years beginning after January 1, 2023. The amendments to Topic 944 will result in significant changes to the accounting for long-duration insurance contracts. These changes (i) require all guarantees that qualify as market risk benefits to be measured at fair value, (ii) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (iii) modify the methods of amortization for deferred policy acquisition costs (“DAC”), and (iv) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances. The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis.

The Company continues to evaluate the new guidance and therefore is unable to estimate the impact on its financial statements. The most significant impact from the ASU is the requirement that all variable annuity guarantees will be considered market risk benefits and measured at fair value, whereas currently a significant amount of variable annuity guarantees are classified as insurance liabilities.

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

2. Segment Information

The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.

Annuities

The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.

Life

The Life segment consists of insurance products and services, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis.

Run-off

The Run-off segment consists of products that are no longer actively sold and are separately managed, including structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, certain funding agreements and universal life with secondary guarantees.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care and workers’ compensation business reinsured through 100% quota share reinsurance agreements, activities related to funding agreements associated with the Company’s institutional spread margin business, as well as direct-to-consumer life insurance that is no longer actively sold.

Financial Measures and Segment Accounting Policies

Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community and contract holders by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings should not be viewed as a substitute for net income (loss) attributable to Brighthouse Life Insurance Company and excludes net income (loss) attributable to noncontrolling interests.

Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends.

The following are significant items excluded from total revenues, net of income tax, in calculating adjusted earnings:

•Net investment gains (losses);

•Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and

•Certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB Fees”).

The following are significant items excluded from total expenses, net of income tax, in calculating adjusted earnings:

•Amounts associated with benefits related to GMIBs (“GMIB Costs”);

•Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and

•Amortization of DAC and value of business acquired (“VOBA”) related to: (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.

The tax impact of the adjustments mentioned above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate.

The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below.

Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital. Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.

Operating results by segment, as well as Corporate & Other, were as follows:

	Three Months Ended June 30, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	410	$	84	$	139	$	(89)	$	544
Provision for income tax expense (benefit)	78		17		18		(15)		98
Post-tax adjusted earnings	332		67		121		(74)		446
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	332	$	67	$	121	$	(75)	445
Adjustments for:
Net investment gains (losses)									(33)
Net derivative gains (losses)									(718)
Other adjustments to net income (loss)									176
Provision for income tax (expense) benefit									121
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(9)
Interest revenue	$	532	$	156	$	498	$	15
Interest expense	$	—	$	—	$	—	$	16

	Three Months Ended June 30, 2020
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	193	$	46	$	(147)	$	(98)	$	(6)
Provision for income tax expense (benefit)	32		10		(32)		(28)		(18)
Post-tax adjusted earnings	161		36		(115)		(70)		12
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	161	$	36	$	(115)	$	(71)	11
Adjustments for:
Net investment gains (losses)									(33)
Net derivative gains (losses)									(2,650)
Other adjustments to net income (loss)									140
Provision for income tax (expense) benefit									534
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(1,998)
Interest revenue	$	402	$	57	$	166	$	15
Interest expense	$	—	$	—	$	—	$	17

	Six Months Ended June 30, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	806	$	225	$	224	$	(155)	$	1,100
Provision for income tax expense (benefit)	153		46		27		(27)		199
Post-tax adjusted earnings	653		179		197		(128)		901
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	653	$	179	$	197	$	(129)	900
Adjustments for:
Net investment gains (losses)									(21)
Net derivative gains (losses)									(2,105)
Other adjustments to net income (loss)									401
Provision for income tax (expense) benefit									363
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(462)
Interest revenue	$	1,079	$	306	$	961	$	29
Interest expense	$	—	$	—	$	—	$	33

	Six Months Ended June 30, 2020
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	576	$	67	$	(236)	$	(181)	$	226
Provision for income tax expense (benefit)	104		14		(51)		(53)		14
Post-tax adjusted earnings	472		53		(185)		(128)		212
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	472	$	53	$	(185)	$	(129)	211
Adjustments for:
Net investment gains (losses)									(52)
Net derivative gains (losses)									4,097
Other adjustments to net income (loss)									(716)
Provision for income tax (expense) benefit									(699)
Net income (loss) attributable to Brighthouse Life Insurance Company									$	2,841
Interest revenue	$	860	$	157	$	490	$	31
Interest expense	$	—	$	—	$	—	$	34

Total revenues by segment, as well as Corporate & Other, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Annuities	$	1,104	$	922	$	2,251	$	1,935
Life	332		237		656		506
Run-off	661		332		1,289		825
Corporate & Other	34		35		69		73
Adjustments	(695)		(2,625)		(2,015)		4,162
Total	$	1,436	$	(1,099)	$	2,250	$	7,501

Total assets by segment, as well as Corporate & Other, were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Annuities	$	172,714	$	167,806
Life	17,899		17,796
Run-off	37,051		38,366
Corporate & Other	13,472		11,320
Total	$	241,136	$	235,288

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Insurance

6 Months Ended

Jun. 30, 2021

Insurance [Abstract]

Insurance

3. Insurance

Guarantees

As discussed in Notes 1 and 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report, the Company issues variable annuity contracts with guaranteed minimum benefits. Guaranteed minimum death benefits, the life contingent portion of guaranteed minimum withdrawal benefits (“GMWB”) and certain portions of GMIBs are accounted for as insurance liabilities in future policyholder benefits, while other guarantees are accounted for in whole or in part as embedded derivatives in policyholder account balances and are further discussed in Note 5.

The Company also has secondary guarantees on universal and variable life insurance contracts accounted for as insurance liabilities.

Information regarding the Company’s guarantee exposure was as follows at:

	June 30, 2021						December 31, 2020
	In the Event of Death			At Annuitization			In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts (1), (2)
Variable Annuity Guarantees
Total account value (3)	$	107,291		$	58,670		$	104,075		$	57,790
Separate account value	$	102,519		$	57,585		$	99,257		$	56,668
Net amount at risk	$	5,986	(4)	$	4,710	(5)	$	6,392	(4)	$	6,341	(5)
Average attained age of contract holders	71 years			70 years			70 years			70 years

	June 30, 2021		December 31, 2020
	Secondary Guarantees
	(Dollars in millions)
Universal Life Contracts
Total account value (3)	$	5,634	$	5,772
Net amount at risk (6)	$	68,043	$	69,083
Average attained age of policyholders	67 years		67 years
Variable Life Contracts
Total account value (3)	$	1,414	$	1,306
Net amount at risk (6)	$	10,851	$	11,234
Average attained age of policyholders	46 years		46 years

_______________

(1)The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2)Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured.

(3)Includes the contract holder’s investments in the general account and separate account, if applicable.

(4)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5)Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved.

(6)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

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Investments

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investments

4. Investments

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-for-sale

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	June 30, 2021										December 31, 2020
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	33,247	$	1	$	4,249	$	167	$	37,328	$	32,062	$	2	$	5,286	$	70	$	37,276
Foreign corporate	10,646		6		1,145		68		11,717		9,926		—		1,493		44		11,375
U.S. government and agency	7,191		—		1,987		78		9,100		5,871		—		2,599		6		8,464
RMBS	8,152		—		543		13		8,682		7,578		—		644		3		8,219
CMBS	6,459		—		462		14		6,907		6,120		—		586		9		6,697
State and political subdivision	3,896		—		866		5		4,757		3,607		—		948		—		4,555
ABS	3,297		—		56		3		3,350		2,831		—		60		10		2,881
Foreign government	1,601		2		276		5		1,870		1,488		—		345		1		1,832
Total fixed maturity securities	$	74,489	$	9	$	9,584	$	353	$	83,711	$	69,483	$	2	$	11,961	$	143	$	81,299

The Company held non-income producing fixed maturity securities with an estimated fair value of $5 million at both June 30, 2021 and December 31, 2020.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2021:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities (1)		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	1,187	$	8,902	$	15,856	$	30,636	$	17,908	$	74,489
Estimated fair value	$	1,204	$	9,410	$	17,167	$	36,991	$	18,939	$	83,711

_______________

(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	June 30, 2021								December 31, 2020
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	3,873	$	156	$	299	$	11	$	1,726	$	57	$	181	$	13
Foreign corporate	1,033		33		252		35		243		7		345		37
U.S. government and agency	1,685		78		—		—		236		6		—		—
RMBS	1,274		12		41		1		180		2		22		1
CMBS	595		12		59		2		331		7		44		2
State and political subdivision	259		5		—		—		46		—		—		—
ABS	756		2		185		1		506		3		629		7
Foreign government	147		5		—		—		55		1		—		—
Total fixed maturity securities	$	9,622	$	303	$	836	$	50	$	3,323	$	83	$	1,221	$	60
Total number of securities in an unrealized loss position	1,310				261				665				241

Allowance for Credit Losses for Fixed Maturity Securities

Evaluation and Measurement Methodologies

For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to

make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss) (“OCI”).

Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $520 million and $506 million at June 30, 2021 and December 31, 2020, respectively, and is included in accrued investment income.

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.

Current Period Evaluation

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $9 million, relating to four securities at June 30, 2021. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		Foreign Corporate		Foreign Government		Total
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	2	$	—	$	—	$	2
Allowance on securities where credit losses were not previously recorded	—		6		2		8
Change in allowance on securities with an allowance recorded in a previous period	(1)		—		—		(1)
Write-offs charged against allowance (1)	—		—		—		—
Balance, end of period	$	1	$	6	$	2	$	9
Six Months Ended June 30, 2020
Balance, beginning of period	$	3	$	1	$	—	$	4
Allowance on securities where credit losses were not previously recorded	3		2		—		5
Change in allowance on securities with an allowance recorded in a previous period	(1)		—		—		(1)
Write-offs charged against allowance (1)	(3)		(1)		—		(4)
Balance, end of period	$	2	$	2	$	—	$	4

_______________

(1)The Company did not record any write-offs during the six months ended June 30, 2021. The Company recorded total write-offs of $13 million during the six months ended June 30, 2020

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	June 30, 2021				December 31, 2020
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	10,225	61.4	%	$	9,687	61.6	%
Agricultural	3,737		22.4		3,479		22.1
Residential	2,786		16.7		2,650		16.9
Total mortgage loans (1)	16,748		100.5		15,816		100.6
Allowance for credit losses	(96)		(0.5)		(94)		(0.6)
Total mortgage loans, net	$	16,652	100.0	%	$	15,722	100.0	%

_______________

(1)Purchases of mortgage loans from third parties were $621 million and $799 million for the three months and six months ended June 30, 2021, respectively, and $331 million and $488 million for the three months and six months ended June 30, 2020, respectively, and were primarily comprised of residential mortgage loans.

Allowance for Credit Losses for Mortgage Loans

Evaluation and Measurement Methodologies

The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.

Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the impact of the ongoing worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at both June 30, 2021 and December 31, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $88 million at both June 30, 2021 and December 31, 2020.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.

Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity.

The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics.

Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	44	$	15	$	35	$	94
Current period provision	2		(2)		2		2
Balance, end of period	$	46	$	13	$	37	$	96
Six Months Ended June 30, 2020
Balance, beginning of period	$	27	$	16	$	21	$	64
Current period provision	10		—		18		28
Balance, end of period	$	37	$	16	$	39	$	92

PCD Mortgage Loans

Purchases of PCD mortgage loans are summarized as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
Purchase price	$	229	$	77
Allowance at acquisition date	1		2
Discount or premium attributable to other factors	(16)		2
Par value	$	214	$	81

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2021		2020		2019		2018		2017		Prior		Total
	(In millions)
June 30, 2021
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	692	$	333	$	1,424	$	972	$	513	$	3,563	$	7,497
65% to 75%	219		199		552		511		293		553		2,327
76% to 80%	—		—		—		—		44		88		132
Greater than 80%	—		—		—		30		—		239		269
Total commercial mortgage loans	911		532		1,976		1,513		850		4,443		10,225
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	433		540		538		716		342		896		3,465
65% to 75%	61		79		78		11		25		18		272
Total agricultural mortgage loans	494		619		616		727		367		914		3,737
Residential mortgage loans
Performing	66		208		351		332		177		1,594		2,728
Nonperforming	—		2		2		2		1		51		58
Total residential mortgage loans	66		210		353		334		178		1,645		2,786
Total	$	1,471	$	1,361	$	2,945	$	2,574	$	1,395	$	7,002	$	16,748

	2020		2019		2018		2017		2016		Prior		Total
	(In millions)
December 31, 2020
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	317	$	1,527	$	1,004	$	514	$	1,106	$	2,808	$	7,276
65% to 75%	200		450		482		322		59		498		2,011
76% to 80%	—		—		—		44		79		8		131
Greater than 80%	—		—		29		—		6		234		269
Total commercial mortgage loans	517		1,977		1,515		880		1,250		3,548		9,687
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	566		526		749		377		412		627		3,257
65% to 75%	81		80		10		33		—		18		222
Total agricultural mortgage loans	647		606		759		410		412		645		3,479
Residential mortgage loans
Performing	214		381		413		131		70		1,375		2,584
Nonperforming	2		6		4		—		1		53		66
Total residential mortgage loans	216		387		417		131		71		1,428		2,650
Total	$	1,380	$	2,970	$	2,691	$	1,421	$	1,733	$	5,621	$	15,816

The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	June 30, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	9,518	93.1	%	$	9,423	97.3	%
1.00x - 1.20x	359		3.5		204		2.1
Less than 1.00x	348		3.4		60		0.6
Total	$	10,225	100.0	%	$	9,687	100.0	%

The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.

Past Due Mortgage Loans by Portfolio Segment

The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both June 30, 2021 and December 31, 2020. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments. At June 30, 2021 and December 31, 2020, $33 million and $38 million, respectively, of the COVID-19 pandemic modified loans were classified as delinquent.

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	June 30, 2021								December 31, 2020
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	10,225	$	3,720	$	2,683	$	16,628	$	9,687	$	3,479	$	2,575	$	15,741
30-59 days past due	—		—		45		45		—		—		9		9
60-89 days past due	—		—		14		14		—		—		24		24
90-179 days past due	—		15		28		43		—		—		27		27
180+ days past due	—		2		16		18		—		—		15		15
Total	$	10,225	$	3,737	$	2,786	$	16,748	$	9,687	$	3,479	$	2,650	$	15,816

Mortgage Loans in Nonaccrual Status by Portfolio Segment

Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. At June 30, 2021 and December 31, 2020, $33 million and $38 million, respectively, of the COVID-19 pandemic modified loans were in nonaccrual status.

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
June 30, 2021	$	—	$	14	$	58	$	72
December 31, 2020	$	—	$	—	$	66	$	66

_______________

(1)The Company had $9 million and $7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2021 and December 31, 2020, respectively.

Current period investment income on mortgage loans in nonaccrual status was less than $1 million for both the six months ended June 30, 2021 and 2020.

Modified Mortgage Loans by Portfolio Segment

Under certain circumstances, modifications are granted to nonperforming mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring during both the six months ended June 30, 2021 and 2020.

Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs.

Other Invested Assets

Over 90% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 5 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes tax credit and renewable energy partnerships, leveraged leases and Federal Home Loan Bank (“FHLB”) stock.

Leveraged Leases

The carrying value of leveraged leases was $49 million and $50 million at June 30, 2021 and December 31, 2020, respectively. The allowance for credit losses was $13 million at both June 30, 2021 and December 31, 2020. Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 12 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both June 30, 2021 and December 31, 2020, all leveraged leases were performing.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”) and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”).

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Fixed maturity securities	$	9,231	$	11,818
Derivatives	200		162
Other	(17)		(16)
Subtotal	9,414		11,964
Amounts allocated from:
Future policy benefits	(3,514)		(4,598)
DAC, VOBA and DSI	(425)		(494)
Subtotal	(3,939)		(5,092)
Deferred income tax benefit (expense)	(1,150)		(1,443)
Net unrealized investment gains (losses)	$	4,325	$	5,429

The changes in net unrealized investment gains (losses) were as follows:

	Six Months Ended June 30, 2021
	(In millions)
Balance at December 31, 2020	$	5,429
Unrealized investment gains (losses) during the period	(2,550)
Unrealized investment gains (losses) relating to:
Future policy benefits	1,084
DAC, VOBA and DSI	69
Deferred income tax benefit (expense)	293
Balance at June 30, 2021	$	4,325
Change in net unrealized investment gains (losses)	$	(1,104)

Concentrations of Credit Risk

There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both June 30, 2021 and December 31, 2020.

Securities Lending

Elements of the securities lending program are presented below at:

	June 30, 2021		December 31, 2020
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,071	$	2,373
Estimated fair value	$	3,969	$	3,603
Cash collateral received from counterparties (2)	$	4,025	$	3,674
Securities collateral received from counterparties (3)	$	7	$	—
Reinvestment portfolio — estimated fair value	$	4,193	$	3,830

_______________

(1)Included within fixed maturity securities.

(2)Included within payables for collateral under securities loaned and other transactions.

(3)Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	June 30, 2021								December 31, 2020
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	1,255	$	2,336	$	433	$	4,024	$	937	$	2,300	$	437	$	3,674
U.S. corporate	1		—		—		1		—		—		—		—
Total	$	1,256	$	2,336	$	433	$	4,025	$	937	$	2,300	$	437	$	3,674

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2021 was $1.2 billion, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities, non-agency RMBS and U.S. and foreign corporate securities) with 61% invested in agency RMBS, cash and cash equivalents and U.S. government and agency securities at June 30, 2021. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	9,895	$	10,131
Invested assets held in trust (reinsurance agreements) (2)	5,719		5,711
Invested assets pledged as collateral (3)	5,448		5,595
Total invested assets on deposit, held in trust and pledged as collateral	$	21,062	$	21,437

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $112 million and $59 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $119 million and $101 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report) and derivative transactions (see Note 5).

See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $63 million and $39 million at redemption value at June 30, 2021 and December 31, 2020, respectively.

Variable Interest Entities

A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.

The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either June 30, 2021 or December 31, 2020.

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	June 30, 2021				December 31, 2020
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	14,410	$	13,494	$	13,494	$	12,416
Limited partnerships and LLCs	2,985		4,323		2,307		3,565
Total	$	17,395	$	17,817	$	15,801	$	15,981

The Company’s investments in unconsolidated VIEs are described below.

Fixed Maturity Securities

The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities.

Limited Partnerships and LLCs

The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, hedge funds, and to a lesser extent tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 9.

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Investment income:
Fixed maturity securities	$	694	$	667	$	1,374	$	1,325
Equity securities	1		1		2		3
Mortgage loans	166		166		329		332
Policy loans	11		8		21		14
Limited partnerships and LLCs (1)	350		(190)		688		(108)
Cash, cash equivalents and short-term investments	1		12		2		32
Other	8		11		18		24
Total investment income	1,231		675		2,434		1,622
Less: Investment expenses	35		40		69		91
Net investment income	$	1,196	$	635	$	2,365	$	1,531

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $339 million and $670 million for the three months and six months ended June 30, 2021, respectively, and ($193) million and ($120) million for the three months and six months ended June 30, 2020, respectively.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Fixed maturity securities	$	(31)	$	(20)	$	(23)	$	(26)
Equity securities	3		7		3		(7)
Mortgage loans	(5)		(22)		(1)		(26)
Limited partnerships and LLCs	1		(2)		1		(3)
Other	(1)		4		(1)		10
Total net investment gains (losses)	$	(33)	$	(33)	$	(21)	$	(52)

Sales or Disposals of Fixed Maturity Securities

Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Proceeds	$	949	$	619	$	2,167	$	1,266
Gross investment gains	$	8	$	14	$	39	$	31
Gross investment losses	(38)		(36)		(55)		(42)
Net investment gains (losses)	$	(30)	$	(22)	$	(16)	$	(11)

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Derivatives

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

5. Derivatives

Accounting for Derivatives

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives.

Derivative Strategies

Types of Derivative Instruments and Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate derivatives: swaps, caps, swaptions and forwards;

•Foreign currency exchange rate derivatives: forwards and swaps;

•Equity derivatives: options, total return swaps and variance swaps; and

•Credit derivatives: single and index reference credit default swaps and swaptions.

For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report.

Primary Risks Managed by Derivatives

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at:

		June 30, 2021						December 31, 2020
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate forwards	Interest rate	$	240	$	28	$	—	$	290	$	66	$	—
Foreign currency swaps	Foreign currency exchange rate	2,859		144		59		2,750		122		112
Total qualifying hedges		3,099		172		59		3,040		188		112
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	2,845		366		19		2,295		463		—
Interest rate caps	Interest rate	3,100		8		—		2,350		2		—
Interest rate options	Interest rate	28,590		302		178		25,980		712		122
Interest rate forwards	Interest rate	10,498		244		244		8,086		851		78
Foreign currency swaps	Foreign currency exchange rate	963		79		25		989		85		32
Foreign currency forwards	Foreign currency exchange rate	234		2		—		201		—		—
Credit default swaps — purchased	Credit	18		—		1		18		—		—
Credit default swaps — written	Credit	1,774		41		1		1,755		41		—
Credit default options	Credit	300		—		—		100		—		—
Equity index options	Equity market	29,176		1,188		944		31,576		1,071		838
Equity variance swaps	Equity market	359		9		7		1,098		13		20
Equity total return swaps	Equity market	25,760		259		403		15,056		143		822
Total non-designated or non-qualifying derivatives		103,617		2,498		1,822		89,504		3,381		1,912
Embedded derivatives:
Ceded guaranteed minimum income benefits	Other	N/A		219		—		N/A		283		—
Direct index-linked annuities	Other	N/A		—		5,466		N/A		—		3,855
Direct guaranteed minimum benefits	Other	N/A		—		1,908		N/A		—		2,751
Assumed guaranteed minimum benefits	Other	N/A		—		471		N/A		—		596
Assumed index-linked annuities	Other	N/A		—		427		N/A		—		382
Total embedded derivatives		N/A		219		8,272		N/A		283		7,584
Total		$	106,716	$	2,889	$	10,153	$	92,544	$	3,852	$	9,608

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2021 and December 31, 2020. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in ASC 815; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship.

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	1	$	19
Foreign currency exchange rate derivatives	1		—		7		95
Total cash flow hedges	1		—		8		114
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	722		—		—		—
Foreign currency exchange rate derivatives	18		—		—		—
Credit derivatives	8		—		—		—
Equity derivatives	(306)		—		—		—
Embedded derivatives	(1,161)		—		—		—
Total non-qualifying hedges	(719)		—		—		—
Total	$	(718)	$	—	$	8	$	114
Three Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	—	$	(4)
Foreign currency exchange rate derivatives	4		(3)		9		(135)
Total cash flow hedges	4		(3)		9		(139)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(165)		—		—		—
Foreign currency exchange rate derivatives	(27)		(2)		—		—
Credit derivatives	29		—		—		—
Equity derivatives	(1,606)		—		—		—
Embedded derivatives	(880)		—		—		—
Total non-qualifying hedges	(2,649)		(2)		—		—
Total	$	(2,645)	$	(5)	$	9	$	(139)

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Six Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	2	$	(33)
Foreign currency exchange rate derivatives	6		(3)		15		80
Total cash flow hedges	7		(3)		17		47
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(1,190)		—		—		—
Foreign currency exchange rate derivatives	11		3		—		—
Credit derivatives	11		—		—		—
Equity derivatives	(448)		—		—		—
Embedded derivatives	(496)		—		—		—
Total non-qualifying hedges	(2,112)		3		—		—
Total	$	(2,105)	$	—	$	17	$	47
Six Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	1	$	93
Foreign currency exchange rate derivatives	4		(3)		20		321
Total cash flow hedges	5		(3)		21		414
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	4,756		—		—		—
Foreign currency exchange rate derivatives	105		(9)		—		—
Credit derivatives	(2)		—		—		—
Equity derivatives	358		—		—		—
Embedded derivatives	(1,113)		—		—		—
Total non-qualifying hedges	4,104		(9)		—		—
Total	$	4,109	$	(12)	$	21	$	414

At June 30, 2021 and December 31, 2020, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was two years and three years, respectively.

At June 30, 2021 and December 31, 2020, the balance in AOCI associated with cash flow hedges was $200 million and $162 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

	June 30, 2021					December 31, 2020
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	14	$	683	2.4	$	15	$	683	2.9
Baa	27		1,081		5.2	26		1,072		5.2
Ba	—		6		4.5	—		—		—
Caa and Lower	(1)		4		4.5	—		—		—
Total	$	40	$	1,774	4.1	$	41	$	1,755	4.3

_______________

(1)The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Counterparty Credit Risk

The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.

The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

See Note 6 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
June 30, 2021
Derivative assets	$	2,674	$	(1,326)	$	(993)	$	355	$	(304)	$	51
Derivative liabilities	$	1,872	$	(1,326)	$	—	$	546	$	(475)	$	71
December 31, 2020
Derivative assets	$	3,574	$	(1,342)	$	(1,327)	$	905	$	(840)	$	65
Derivative liabilities	$	2,010	$	(1,342)	$	—	$	668	$	(630)	$	38

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level.

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	546	$	668
Estimated Fair Value of Collateral Provided: (2)
Fixed maturity securities	$	887	$	1,205

_______________

(1)After taking into consideration the existence of netting agreements.

(2)Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately.

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Fair Value

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value

6. Fair Value

Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

	June 30, 2021
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,800	$	528	$	37,328
Foreign corporate	—		11,368		349		11,717
U.S. government and agency	3,264		5,836		—		9,100
RMBS	—		8,648		34		8,682
CMBS	—		6,905		2		6,907
State and political subdivision	—		4,757		—		4,757
ABS	—		3,169		181		3,350
Foreign government	—		1,858		12		1,870
Total fixed maturity securities	3,264		79,341		1,106		83,711
Equity securities	21		62		3		86
Short-term investments	142		64		—		206
Derivative assets: (1)
Interest rate	—		948		—		948
Foreign currency exchange rate	—		219		6		225
Credit	—		27		14		41
Equity market	—		1,447		9		1,456
Total derivative assets	—		2,641		29		2,670
Embedded derivatives within asset host contracts (2)	—		—		219		219
Separate account assets	42		107,480		—		107,522
Total assets	$	3,469	$	189,588	$	1,357	$	194,414
Liabilities
Derivative liabilities: (1)
Interest rate	$	—	$	441	$	—	$	441
Foreign currency exchange rate	—		84		—		84
Credit	—		—		2		2
Equity market	—		1,347		7		1,354
Total derivative liabilities	—		1,872		9		1,881
Embedded derivatives within liability host contracts (2)	—		—		8,272		8,272
Total liabilities	$	—	$	1,872	$	8,281	$	10,153

	December 31, 2020
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,789	$	487	$	37,276
Foreign corporate	—		11,178		197		11,375
U.S. government and agency	2,108		6,356		—		8,464
RMBS	—		8,197		22		8,219
CMBS	—		6,692		5		6,697
State and political subdivision	—		4,555		—		4,555
ABS	—		2,841		40		2,881
Foreign government	—		1,832		—		1,832
Total fixed maturity securities	2,108		78,440		751		81,299
Equity securities	31		99		3		133
Short-term investments	1,669		216		—		1,885
Derivative assets: (1)
Interest rate	—		2,094		—		2,094
Foreign currency exchange rate	—		206		1		207
Credit	—		27		14		41
Equity market	—		1,213		14		1,227
Total derivative assets	—		3,540		29		3,569
Embedded derivatives within asset host contracts (2)	—		—		283		283
Separate account assets	86		103,897		3		103,986
Total assets	$	3,894	$	186,192	$	1,069	$	191,155
Liabilities
Derivative liabilities: (1)
Interest rate	$	—	$	200	$	—	$	200
Foreign currency exchange rate	—		137		7		144
Equity market	—		1,660		20		1,680
Total derivative liabilities	—		1,997		27		2,024
Embedded derivatives within liability host contracts (2)	—		—		7,584		7,584
Total liabilities	$	—	$	1,997	$	7,611	$	9,608

_______________

(1)Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the consolidated balance sheets.

Valuation Controls and Procedures

The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards.

The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments.

A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used.

Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the six months ended June 30, 2021.

Determination of Fair Value

Fixed Maturity Securities

The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.

U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues.

U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded.

Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance.

Equity Securities and Short-term Investments

The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below.

Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active.

Derivatives

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”).

The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Embedded Derivatives

Embedded derivatives principally include certain direct and ceded variable annuity guarantees and equity crediting rates within index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The Company issues certain variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMAB”), the non-life contingent portion of GMWBs and certain portions of GMIBs are accounted for as embedded derivatives and measured at estimated fair value separately from the host variable annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets, with changes in estimated fair value reported in net derivative gains (losses).

The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations of policyholder behavior. The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. The percentage of fees included in the initial fair value measurement is not updated in subsequent periods.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for BHF’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims-paying ability of the issuing insurance subsidiaries as compared to BHF’s overall financial strength.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

The Company issues and assumes through reinsurance index-linked annuities which allow the policyholder to participate in returns from equity indices. The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Transfers Into or Out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

					June 30, 2021			December 31, 2020			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing  techniques	•	Mortality rates	0.03%	-	12.13%	0.03%	-	12.13%	Decrease (1)
			•	Lapse rates	0.25%	-	15.00%	0.25%	-	15.00%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.25%	-	10.00%	0.25%	-	10.00%	(4)
			•	Long-term equity volatilities	16.66%	-	22.21%	16.66%	-	22.21%	Increase (5)
			•	Nonperformance risk spread	(0.26)%	-	1.37%	0.47%	-	1.97%	Decrease (6)

_______________

(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

(3)The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued

based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a higher (lower) fair value.

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		State and Political Subdivision		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Net Embedded Derivatives (3)		Separate Account Assets (4)
	(In millions)
Three Months Ended June 30, 2021
Balance, beginning of period	$	667	$	126	$	—	$	—	$	3	$	—	$	8	$	(6,774)	$	2
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	—		—		—		—		—		—		8		(1,161)		—
Total realized/unrealized gains (losses) included in AOCI	20		1		—		—		—		—		10		—		—
Purchases (7)	231		163		—		12		—		—		—		—		—
Sales (7)	(12)		(9)		—		—		—		—		(6)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(118)		—
Transfers into Level 3 (8)	54		—		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(83)		(64)		—		—		—		—		—		—		(2)
Balance, end of period	$	877	$	217	$	—	$	12	$	3	$	—	$	20	$	(8,053)	$	—
Three Months Ended June 30, 2020
Balance, beginning of period	$	838	$	218	$	72	$	7	$	4	$	2	$	50	$	(4,747)	$	4
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(2)		—		—		—		—		—		(3)		(880)		—
Total realized/unrealized gains (losses) included in AOCI	60		3		—		—		—		—		(11)		—		—
Purchases (7)	186		85		—		—		—		—		—		—		—
Sales (7)	(46)		(1)		—		—		—		(2)		(16)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(177)		—
Transfers into Level 3 (8)	86		26		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(228)		(158)		(72)		(7)		(1)		—		—		—		(1)
Balance, end of period	$	894	$	173	$	—	$	—	$	3	$	—	$	20	$	(5,804)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021(9)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	(1,139)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)	$	20	$	1	$	—	$	—	$	—	$	—	$	10	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	(924)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)	$	58	$	3	$	—	$	—	$	—	$	—	$	(10)	$	—	$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		State and Political Subdivision		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Net Embedded Derivatives (3)		Separate Account Assets (4)
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	684	$	67	$	—	$	—	$	3	$	—	$	2	$	(7,301)	$	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(1)		—		—		—		—		—		16		(496)		—
Total realized/unrealized gains (losses) included in AOCI	(1)		1		—		—		—		—		9		—		—
Purchases (7)	327		181		—		12		—		—		(1)		—		—
Sales (7)	(9)		(14)		—		—		—		—		(6)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(256)		—
Transfers into Level 3 (8)	54		—		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(177)		(18)		—		—		—		—		—		—		(3)
Balance, end of period	$	877	$	217	$	—	$	12	$	3	$	—	$	20	$	(8,053)	$	—
Six Months Ended June 30, 2020
Balance, beginning of period	$	457	$	117	$	73	$	—	$	8	$	5	$	16	$	(4,365)	$	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(4)		—		—		—		—		—		(2)		(1,113)		—
Total realized/unrealized gains (losses) included in AOCI	16		—		—		—		—		—		20		—		—
Purchases (7)	444		104		—		—		—		—		—		—		—
Sales (7)	(45)		(6)		—		—		—		(5)		(14)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(326)		—
Transfers into Level 3 (8)	158		30		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(132)		(72)		(73)		—		(5)		—		—		—		—
Balance, end of period	$	894	$	173	$	—	$	—	$	3	$	—	$	20	$	(5,804)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021 (9)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	2	$	(476)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)	$	(1)	$	1	$	—	$	—	$	—	$	—	$	9	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	(17)	$	(1,166)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)	$	15	$	—	$	—	$	—	$	—	$	—	$	20	$	—	$	—

_______________

(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(3)Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(4)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses).

(5)Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(6)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(7)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(8)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(9)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	June 30, 2021
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	16,652	$	—	$	—	$	17,605	$	17,605
Policy loans	$	856	$	—	$	460	$	566	$	1,026
Other invested assets	$	78	$	—	$	62	$	16	$	78
Premiums, reinsurance and other receivables	$	3,180	$	—	$	118	$	3,860	$	3,978
Liabilities
Policyholder account balances	$	20,358	$	—	$	—	$	22,060	$	22,060
Long-term debt	$	842	$	—	$	37	$	1,087	$	1,124
Other liabilities	$	1,260	$	—	$	434	$	843	$	1,277
Separate account liabilities	$	1,413	$	—	$	1,413	$	—	$	1,413

	December 31, 2020
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	15,722	$	—	$	—	$	16,836	$	16,836
Policy loans	$	884	$	—	$	475	$	881	$	1,356
Other invested assets	$	54	$	—	$	39	$	15	$	54
Premiums, reinsurance and other receivables	$	3,114	$	—	$	90	$	3,808	$	3,898
Liabilities
Policyholder account balances	$	17,361	$	—	$	—	$	18,962	$	18,962
Long-term debt	$	843	$	—	$	39	$	1,031	$	1,070
Other liabilities	$	891	$	—	$	121	$	787	$	908
Separate account liabilities	$	1,331	$	—	$	1,331	$	—	$	1,331

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Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Equity

7. Equity

Capital Transactions

During the second quarter of 2021, Brighthouse Life Insurance Company paid an ordinary cash dividend of $250 million to BH Holdings, which was accounted for as a return of capital. During the second quarter of 2020, Brighthouse Life Insurance Company paid an ordinary cash dividend of $500 million to BH Holdings. During the first quarter of 2020, Brighthouse Life Insurance Company paid an ordinary cash dividend of $300 million to BH Holdings, which was accounted for as a return of capital.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months Ended June 30, 2021
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at March 31, 2021	$	3,150	$	49	$	(14)	$	3,185
OCI before reclassifications	1,284		114		2		1,400
Deferred income tax benefit (expense)	(270)		(24)		(1)		(295)
AOCI before reclassifications, net of income tax	4,164		139		(13)		4,290
Amounts reclassified from AOCI	30		(2)		—		28
Deferred income tax benefit (expense)	(7)		1		—		(6)
Amounts reclassified from AOCI, net of income tax	23		(1)		—		22
Balance at June 30, 2021	$	4,187	$	138	$	(13)	$	4,312

	Three Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at March 31, 2020	$	1,867	$	598	$	(20)	$	2,445
OCI before reclassifications	2,865		(139)		6		2,732
Deferred income tax benefit (expense)	(602)		29		(9)		(582)
AOCI before reclassifications, net of income tax	4,130		488		(23)		4,595
Amounts reclassified from AOCI	23		(4)		—		19
Deferred income tax benefit (expense)	(5)		1		—		(4)
Amounts reclassified from AOCI, net of income tax	18		(3)		—		15
Balance at June 30, 2020	$	4,148	$	485	$	(23)	$	4,610

	Six Months Ended June 30, 2021
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at December 31, 2020	$	5,321	$	108	$	(8)	$	5,421
OCI before reclassifications	(1,453)		47		(6)		(1,412)
Deferred income tax benefit (expense)	305		(10)		1		296
AOCI before reclassifications, net of income tax	4,173		145		(13)		4,305
Amounts reclassified from AOCI	18		(9)		—		9
Deferred income tax benefit (expense)	(4)		2		—		(2)
Amounts reclassified from AOCI, net of income tax	14		(7)		—		7
Balance at June 30, 2021	$	4,187	$	138	$	(13)	$	4,312

	Six Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at December 31, 2019	$	3,066	$	163	$	(14)	$	3,215
OCI before reclassifications (2)	1,356		414		—		1,770
Deferred income tax benefit (expense)	(284)		(87)		(9)		(380)
AOCI before reclassifications, net of income tax	4,138		490		(23)		4,605
Amounts reclassified from AOCI	13		(6)		—		7
Deferred income tax benefit (expense)	(3)		1		—		(2)
Amounts reclassified from AOCI, net of income tax	10		(5)		—		5
Balance at June 30, 2020	$	4,148	$	485	$	(23)	$	4,610

_______________

(1)See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

(2)Includes $3 million related to the adoption of the allowance for credit losses guidance.

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(31)	$	(19)	$	(16)	$	(7)	Net investment gains (losses)
Net unrealized investment gains (losses)	1		(4)		(2)		(6)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(30)		(23)		(18)		(13)
Income tax (expense) benefit	7		5		4		3
Net unrealized investment gains (losses), net of income tax	(23)		(18)		(14)		(10)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		—		1		1		Net derivative gains (losses)
Interest rate swaps	1		—		2		1		Net investment income
Foreign currency swaps	1		4		6		4		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	2		4		9		6
Income tax (expense) benefit	(1)		(1)		(2)		(1)
Gains (losses) on cash flow hedges, net of income tax	1		3		7		5
Total reclassifications, net of income tax	$	(22)	$	(15)	$	(7)	$	(5)

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Other Revenues and Other Expenses

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

8. Other Revenues and Other Expenses

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $66 million and $131 million for the three months and six months ended June 30, 2021, respectively, and $55 million and $114 million for the three months and six months ended June 30, 2020, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Compensation	$	89	$	82	$	174	$	155
Contracted services and other labor costs	62		69		115		130
Transition services agreements	29		15		59		51
Establishment costs	28		53		44		93
Premium and other taxes, licenses and fees	11		12		24		23
Volume related costs, excluding compensation, net of DAC capitalization	170		150		328		272
Interest expense on debt	16		17		33		34
Other	60		49		112		99
Total other expenses	$	465	$	447	$	889	$	857

Related Party Expenses

See Note 10 for a discussion of related party expenses included in the table above.

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Contingencies, Commitments and Guarantees

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Commitments and Guarantees

9. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at June 30, 2021.

Matters as to Which an Estimate Can Be Made

For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of June 30, 2021, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $10 million.

Matters as to Which an Estimate Cannot Be Made

For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Sales Practices Claims

Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Cost of Insurance Class Actions

Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part. Plaintiff was granted leave to amend the complaint. The Company intends to vigorously defend this matter.

Lawrence Martin v. Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY. Plaintiff is the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY filed a motion to dismiss in June 2021. The Company intends to vigorously defend this matter.

Summary

Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Other Contingencies

As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for certain non-litigation loss contingencies when assertions are made involving disputes or other matters with counterparties to contractual arrangements entered into by the Company, including with third-party vendors. The Company establishes liabilities for such non-litigation loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed.

Disputes have arisen with counterparties in connection with reinsurance arrangements where the Company is acting as either the reinsured or the reinsurer. These disputes involve assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and in certain of such disputes the counterparty has made a request to arbitrate the dispute.

As of June 30, 2021, the Company estimates the amount of reasonably possible losses in excess of the amounts accrued for certain non-litigation loss contingencies to be up to approximately $125 million, which are primarily associated with reinsurance-related matters. For certain other reinsurance-related matters, the Company is not currently able to estimate the reasonably possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of such loss.

On a quarterly and annual basis, the Company reviews relevant information with respect to non-litigation contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $646 million and $210 million at June 30, 2021 and December 31, 2020, respectively.

Commitments to Fund Partnership Investments and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $2.2 billion and $1.7 billion at June 30, 2021 and December 31, 2020, respectively.

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from $6 million to $112 million, with a cumulative maximum of $118 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company’s recorded liabilities were $1 million at both June 30, 2021 and December 31, 2020 for indemnities, guarantees and commitments.

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Related Party Transactions

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

10. Related Party TransactionsThe Company has various existing arrangements with its Brighthouse Financial affiliates and had previous arrangements with MetLife, Inc. (together with its subsidiaries and affiliates, “MetLife”) for services necessary to conduct its activities. Certain of the MetLife services have continued, however, MetLife ceased to be a related party in June 2018. See Note 8 for amounts related to continuing transition services. Other material arrangements between the Company and its related parties not disclosed elsewhere are as follows:

Reinsurance Agreements

The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by related parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth.

Information regarding the significant effects of assumed reinsurance with New England Life Insurance Company (“NELICO”), an affiliate, included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Premiums	$	—	$	—	$	2	$	—
Universal life and investment-type product policy fees	$	1	$	2	$	3	$	4
Other revenues	$	—	$	1	$	1	$	1
Policyholder benefits and claims	$	4	$	6	$	11	$	23
Other expenses	$	(9)	$	(7)	$	(13)	$	(12)

Information regarding the significant effects of assumed reinsurance with NELICO included on the interim condensed consolidated balance sheets was as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Assets
Premiums, reinsurance and other receivables (net of allowance for credit losses)	$	25	$	24
Liabilities
Future policy benefits	$	118	$	120
Policyholder account balances	$	471	$	596
Other policy-related balances	$	13	$	10
Other liabilities	$	13	$	9

The Company assumes risks from NELICO related to guaranteed minimum benefits written directly by the cedent. The assumed reinsurance agreements contain embedded derivatives and changes in the estimated fair value are included within net derivative gains (losses). The embedded derivatives associated with these agreements are included within policyholder account balances and were $471 million and $596 million at June 30, 2021 and December 31, 2020, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($50) million and $126 million for the three months and six months ended June 30, 2021, respectively, and $30 million and ($236) million for the three months and six months ended June 30, 2020, respectively.

Shared Services and Overhead Allocations

Brighthouse Services, LLC, an affiliate, currently provides the Company certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting and information technology. Revenues received from an affiliate related to these agreements, recorded in universal life and investment-type product policy fees, were $59 million and $116 million for the three months and six months ended June 30, 2021, respectively, and $50 million and $103 million for the three months and six months ended June 30, 2020, respectively. Costs incurred under these arrangements were $256 million and $484 million for the three months and six months ended June 30, 2021, respectively, and $261 million and $517 million for the three months and six months ended June 30, 2020, respectively, and were recorded in other expenses.

Included in these costs were those incurred related to the establishment of services and infrastructure to replace those previously provided by MetLife. The Company did not incur any costs for the three months and six months ended June 30, 2021 and incurred costs of $20 million and $42 million for the three months and six months ended June 30, 2020, respectively. The Company has been charged a fee to reflect the value of the available infrastructure and services provided by these costs. While management believes the method used to allocate expenses under this arrangement has been reasonable, the allocated expenses may not have been indicative of those of a standalone entity. These establishment costs were fully allocated as of December 31, 2020.

The Company had net receivables from/(payables to) affiliates, related to the items discussed above, of ($97) million and ($21) million at June 30, 2021 and December 31, 2020, respectively.

Broker-Dealer Transactions

The related party expense for the Company was commissions paid on the sale of variable products and passed through to the broker-dealer affiliate. The related party revenue for the Company was fee income passed through the broker-dealer affiliate from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. Fee income received related to these transactions and recorded in other revenues was $56 million and $111 million for the three months and six months ended June 30, 2021, respectively, and $46 million and $96 million for the three months and six months ended June 30, 2020, respectively. Commission expenses incurred related to these transactions and recorded in other expenses was $251 million and $487 million for the three months and six months ended June 30, 2021, respectively, and $197 million and $401 million for the three months and six months ended June 30, 2020, respectively. The Company also had related party fee income receivables of $18 million at both June 30, 2021 and December 31, 2020.

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Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Event

Dividend Transaction

On July 26, 2021, Brighthouse Reinsurance Company of Delaware received approval from the Delaware Department of Insurance for the payment of a $600 million extraordinary dividend to Brighthouse Life Insurance Company. Such dividend has not been paid as of August 9, 2021.

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Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Use of Estimates, Policy [Policy Text Block]

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation of Subsidiaries, Policy [Policy Text Block]

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Life Insurance Company and its subsidiaries, as well as partnerships and limited liability companies (“LLCs”) that the Company controls. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.

Reclassifications

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current period presentation as may be discussed when applicable in the Notes to the Interim Condensed Consolidated Financial Statements.

Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2020 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2020 Annual Report.

New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of New Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. There were no ASUs adopted as of June 30, 2021.

Future Adoption of New Accounting Pronouncements

In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts). This new guidance is effective for fiscal years beginning after January 1, 2023. The amendments to Topic 944 will result in significant changes to the accounting for long-duration insurance contracts. These changes (i) require all guarantees that qualify as market risk benefits to be measured at fair value, (ii) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (iii) modify the methods of amortization for deferred policy acquisition costs (“DAC”), and (iv) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances. The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis.

The Company continues to evaluate the new guidance and therefore is unable to estimate the impact on its financial statements. The most significant impact from the ASU is the requirement that all variable annuity guarantees will be considered market risk benefits and measured at fair value, whereas currently a significant amount of variable annuity guarantees are classified as insurance liabilities.

Investments, Policy [Policy Text Block]

For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to

make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss) (“OCI”).

Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $520 million and $506 million at June 30, 2021 and December 31, 2020, respectively, and is included in accrued investment income.

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.

The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.

Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the impact of the ongoing worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at both June 30, 2021 and December 31, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $88 million at both June 30, 2021 and December 31, 2020.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.

Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity.

The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics.

Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments. Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. Under certain circumstances, modifications are granted to nonperforming mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest.Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs.

Derivatives, Policy [Policy Text Block]

Derivative Strategies

Types of Derivative Instruments and Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate derivatives: swaps, caps, swaptions and forwards;

•Foreign currency exchange rate derivatives: forwards and swaps;

•Equity derivatives: options, total return swaps and variance swaps; and

•Credit derivatives: single and index reference credit default swaps and swaptions.

Counterparty Credit RiskGenerally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

Operating results by segment, as well as Corporate & Other, were as follows:

	Three Months Ended June 30, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	410	$	84	$	139	$	(89)	$	544
Provision for income tax expense (benefit)	78		17		18		(15)		98
Post-tax adjusted earnings	332		67		121		(74)		446
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	332	$	67	$	121	$	(75)	445
Adjustments for:
Net investment gains (losses)									(33)
Net derivative gains (losses)									(718)
Other adjustments to net income (loss)									176
Provision for income tax (expense) benefit									121
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(9)
Interest revenue	$	532	$	156	$	498	$	15
Interest expense	$	—	$	—	$	—	$	16

	Three Months Ended June 30, 2020
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	193	$	46	$	(147)	$	(98)	$	(6)
Provision for income tax expense (benefit)	32		10		(32)		(28)		(18)
Post-tax adjusted earnings	161		36		(115)		(70)		12
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	161	$	36	$	(115)	$	(71)	11
Adjustments for:
Net investment gains (losses)									(33)
Net derivative gains (losses)									(2,650)
Other adjustments to net income (loss)									140
Provision for income tax (expense) benefit									534
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(1,998)
Interest revenue	$	402	$	57	$	166	$	15
Interest expense	$	—	$	—	$	—	$	17

	Six Months Ended June 30, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	806	$	225	$	224	$	(155)	$	1,100
Provision for income tax expense (benefit)	153		46		27		(27)		199
Post-tax adjusted earnings	653		179		197		(128)		901
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	653	$	179	$	197	$	(129)	900
Adjustments for:
Net investment gains (losses)									(21)
Net derivative gains (losses)									(2,105)
Other adjustments to net income (loss)									401
Provision for income tax (expense) benefit									363
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(462)
Interest revenue	$	1,079	$	306	$	961	$	29
Interest expense	$	—	$	—	$	—	$	33

	Six Months Ended June 30, 2020
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	576	$	67	$	(236)	$	(181)	$	226
Provision for income tax expense (benefit)	104		14		(51)		(53)		14
Post-tax adjusted earnings	472		53		(185)		(128)		212
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	472	$	53	$	(185)	$	(129)	211
Adjustments for:
Net investment gains (losses)									(52)
Net derivative gains (losses)									4,097
Other adjustments to net income (loss)									(716)
Provision for income tax (expense) benefit									(699)
Net income (loss) attributable to Brighthouse Life Insurance Company									$	2,841
Interest revenue	$	860	$	157	$	490	$	31
Interest expense	$	—	$	—	$	—	$	34

Total assets by segment, as well as Corporate & Other, were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Annuities	$	172,714	$	167,806
Life	17,899		17,796
Run-off	37,051		38,366
Corporate & Other	13,472		11,320
Total	$	241,136	$	235,288

Reconciliation of Revenue from Segments to Consolidated

Total revenues by segment, as well as Corporate & Other, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Annuities	$	1,104	$	922	$	2,251	$	1,935
Life	332		237		656		506
Run-off	661		332		1,289		825
Corporate & Other	34		35		69		73
Adjustments	(695)		(2,625)		(2,015)		4,162
Total	$	1,436	$	(1,099)	$	2,250	$	7,501

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Insurance (Tables)

6 Months Ended

Jun. 30, 2021

Insurance [Abstract]

Guarantees related to Annuity, Universal and Variable Life Contracts

Information regarding the Company’s guarantee exposure was as follows at:

	June 30, 2021						December 31, 2020
	In the Event of Death			At Annuitization			In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts (1), (2)
Variable Annuity Guarantees
Total account value (3)	$	107,291		$	58,670		$	104,075		$	57,790
Separate account value	$	102,519		$	57,585		$	99,257		$	56,668
Net amount at risk	$	5,986	(4)	$	4,710	(5)	$	6,392	(4)	$	6,341	(5)
Average attained age of contract holders	71 years			70 years			70 years			70 years

	June 30, 2021		December 31, 2020
	Secondary Guarantees
	(Dollars in millions)
Universal Life Contracts
Total account value (3)	$	5,634	$	5,772
Net amount at risk (6)	$	68,043	$	69,083
Average attained age of policyholders	67 years		67 years
Variable Life Contracts
Total account value (3)	$	1,414	$	1,306
Net amount at risk (6)	$	10,851	$	11,234
Average attained age of policyholders	46 years		46 years

_______________

(1)The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2)Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured.

(3)Includes the contract holder’s investments in the general account and separate account, if applicable.

(4)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5)Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved.

(6)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

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Investments (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	June 30, 2021										December 31, 2020
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	33,247	$	1	$	4,249	$	167	$	37,328	$	32,062	$	2	$	5,286	$	70	$	37,276
Foreign corporate	10,646		6		1,145		68		11,717		9,926		—		1,493		44		11,375
U.S. government and agency	7,191		—		1,987		78		9,100		5,871		—		2,599		6		8,464
RMBS	8,152		—		543		13		8,682		7,578		—		644		3		8,219
CMBS	6,459		—		462		14		6,907		6,120		—		586		9		6,697
State and political subdivision	3,896		—		866		5		4,757		3,607		—		948		—		4,555
ABS	3,297		—		56		3		3,350		2,831		—		60		10		2,881
Foreign government	1,601		2		276		5		1,870		1,488		—		345		1		1,832
Total fixed maturity securities	$	74,489	$	9	$	9,584	$	353	$	83,711	$	69,483	$	2	$	11,961	$	143	$	81,299

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2021:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities (1)		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	1,187	$	8,902	$	15,856	$	30,636	$	17,908	$	74,489
Estimated fair value	$	1,204	$	9,410	$	17,167	$	36,991	$	18,939	$	83,711

_______________

(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	June 30, 2021								December 31, 2020
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	3,873	$	156	$	299	$	11	$	1,726	$	57	$	181	$	13
Foreign corporate	1,033		33		252		35		243		7		345		37
U.S. government and agency	1,685		78		—		—		236		6		—		—
RMBS	1,274		12		41		1		180		2		22		1
CMBS	595		12		59		2		331		7		44		2
State and political subdivision	259		5		—		—		46		—		—		—
ABS	756		2		185		1		506		3		629		7
Foreign government	147		5		—		—		55		1		—		—
Total fixed maturity securities	$	9,622	$	303	$	836	$	50	$	3,323	$	83	$	1,221	$	60
Total number of securities in an unrealized loss position	1,310				261				665				241

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		Foreign Corporate		Foreign Government		Total
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	2	$	—	$	—	$	2
Allowance on securities where credit losses were not previously recorded	—		6		2		8
Change in allowance on securities with an allowance recorded in a previous period	(1)		—		—		(1)
Write-offs charged against allowance (1)	—		—		—		—
Balance, end of period	$	1	$	6	$	2	$	9
Six Months Ended June 30, 2020
Balance, beginning of period	$	3	$	1	$	—	$	4
Allowance on securities where credit losses were not previously recorded	3		2		—		5
Change in allowance on securities with an allowance recorded in a previous period	(1)		—		—		(1)
Write-offs charged against allowance (1)	(3)		(1)		—		(4)
Balance, end of period	$	2	$	2	$	—	$	4

_______________

(1)The Company did not record any write-offs during the six months ended June 30, 2021. The Company recorded total write-offs of $13 million during the six months ended June 30, 2020

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	June 30, 2021				December 31, 2020
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	10,225	61.4	%	$	9,687	61.6	%
Agricultural	3,737		22.4		3,479		22.1
Residential	2,786		16.7		2,650		16.9
Total mortgage loans (1)	16,748		100.5		15,816		100.6
Allowance for credit losses	(96)		(0.5)		(94)		(0.6)
Total mortgage loans, net	$	16,652	100.0	%	$	15,722	100.0	%

_______________

(1)Purchases of mortgage loans from third parties were $621 million and $799 million for the three months and six months ended June 30, 2021, respectively, and $331 million and $488 million for the three months and six months ended June 30, 2020, respectively, and were primarily comprised of residential mortgage loans.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	44	$	15	$	35	$	94
Current period provision	2		(2)		2		2
Balance, end of period	$	46	$	13	$	37	$	96
Six Months Ended June 30, 2020
Balance, beginning of period	$	27	$	16	$	21	$	64
Current period provision	10		—		18		28
Balance, end of period	$	37	$	16	$	39	$	92

Purchases of PCD Mortgage Loans

Purchases of PCD mortgage loans are summarized as follows:

	Six Months Ended June 30,
	2021		2020
	(In millions)
Purchase price	$	229	$	77
Allowance at acquisition date	1		2
Discount or premium attributable to other factors	(16)		2
Par value	$	214	$	81

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2021		2020		2019		2018		2017		Prior		Total
	(In millions)
June 30, 2021
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	692	$	333	$	1,424	$	972	$	513	$	3,563	$	7,497
65% to 75%	219		199		552		511		293		553		2,327
76% to 80%	—		—		—		—		44		88		132
Greater than 80%	—		—		—		30		—		239		269
Total commercial mortgage loans	911		532		1,976		1,513		850		4,443		10,225
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	433		540		538		716		342		896		3,465
65% to 75%	61		79		78		11		25		18		272
Total agricultural mortgage loans	494		619		616		727		367		914		3,737
Residential mortgage loans
Performing	66		208		351		332		177		1,594		2,728
Nonperforming	—		2		2		2		1		51		58
Total residential mortgage loans	66		210		353		334		178		1,645		2,786
Total	$	1,471	$	1,361	$	2,945	$	2,574	$	1,395	$	7,002	$	16,748

	2020		2019		2018		2017		2016		Prior		Total
	(In millions)
December 31, 2020
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	317	$	1,527	$	1,004	$	514	$	1,106	$	2,808	$	7,276
65% to 75%	200		450		482		322		59		498		2,011
76% to 80%	—		—		—		44		79		8		131
Greater than 80%	—		—		29		—		6		234		269
Total commercial mortgage loans	517		1,977		1,515		880		1,250		3,548		9,687
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	566		526		749		377		412		627		3,257
65% to 75%	81		80		10		33		—		18		222
Total agricultural mortgage loans	647		606		759		410		412		645		3,479
Residential mortgage loans
Performing	214		381		413		131		70		1,375		2,584
Nonperforming	2		6		4		—		1		53		66
Total residential mortgage loans	216		387		417		131		71		1,428		2,650
Total	$	1,380	$	2,970	$	2,691	$	1,421	$	1,733	$	5,621	$	15,816

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	June 30, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	9,518	93.1	%	$	9,423	97.3	%
1.00x - 1.20x	359		3.5		204		2.1
Less than 1.00x	348		3.4		60		0.6
Total	$	10,225	100.0	%	$	9,687	100.0	%

Past Due Mortgage Loans by Portfolio Segment

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	June 30, 2021								December 31, 2020
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	10,225	$	3,720	$	2,683	$	16,628	$	9,687	$	3,479	$	2,575	$	15,741
30-59 days past due	—		—		45		45		—		—		9		9
60-89 days past due	—		—		14		14		—		—		24		24
90-179 days past due	—		15		28		43		—		—		27		27
180+ days past due	—		2		16		18		—		—		15		15
Total	$	10,225	$	3,737	$	2,786	$	16,748	$	9,687	$	3,479	$	2,650	$	15,816

Mortgage Loans in Nonaccrual Status by Portfolio Segment

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
June 30, 2021	$	—	$	14	$	58	$	72
December 31, 2020	$	—	$	—	$	66	$	66

_______________

(1)The Company had $9 million and $7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2021 and December 31, 2020, respectively.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Fixed maturity securities	$	9,231	$	11,818
Derivatives	200		162
Other	(17)		(16)
Subtotal	9,414		11,964
Amounts allocated from:
Future policy benefits	(3,514)		(4,598)
DAC, VOBA and DSI	(425)		(494)
Subtotal	(3,939)		(5,092)
Deferred income tax benefit (expense)	(1,150)		(1,443)
Net unrealized investment gains (losses)	$	4,325	$	5,429

The changes in net unrealized investment gains (losses) were as follows:

	Six Months Ended June 30, 2021
	(In millions)
Balance at December 31, 2020	$	5,429
Unrealized investment gains (losses) during the period	(2,550)
Unrealized investment gains (losses) relating to:
Future policy benefits	1,084
DAC, VOBA and DSI	69
Deferred income tax benefit (expense)	293
Balance at June 30, 2021	$	4,325
Change in net unrealized investment gains (losses)	$	(1,104)

Securities Lending

Elements of the securities lending program are presented below at:

	June 30, 2021		December 31, 2020
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,071	$	2,373
Estimated fair value	$	3,969	$	3,603
Cash collateral received from counterparties (2)	$	4,025	$	3,674
Securities collateral received from counterparties (3)	$	7	$	—
Reinvestment portfolio — estimated fair value	$	4,193	$	3,830

_______________

(1)Included within fixed maturity securities.

(2)Included within payables for collateral under securities loaned and other transactions.

(3)Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	June 30, 2021								December 31, 2020
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	1,255	$	2,336	$	433	$	4,024	$	937	$	2,300	$	437	$	3,674
U.S. corporate	1		—		—		1		—		—		—		—
Total	$	1,256	$	2,336	$	433	$	4,025	$	937	$	2,300	$	437	$	3,674

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	9,895	$	10,131
Invested assets held in trust (reinsurance agreements) (2)	5,719		5,711
Invested assets pledged as collateral (3)	5,448		5,595
Total invested assets on deposit, held in trust and pledged as collateral	$	21,062	$	21,437

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $112 million and $59 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $119 million and $101 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report) and derivative transactions (see Note 5).

Variable Interest Entities

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	June 30, 2021				December 31, 2020
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	14,410	$	13,494	$	13,494	$	12,416
Limited partnerships and LLCs	2,985		4,323		2,307		3,565
Total	$	17,395	$	17,817	$	15,801	$	15,981

Components of Net Investment Income

The components of net investment income were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Investment income:
Fixed maturity securities	$	694	$	667	$	1,374	$	1,325
Equity securities	1		1		2		3
Mortgage loans	166		166		329		332
Policy loans	11		8		21		14
Limited partnerships and LLCs (1)	350		(190)		688		(108)
Cash, cash equivalents and short-term investments	1		12		2		32
Other	8		11		18		24
Total investment income	1,231		675		2,434		1,622
Less: Investment expenses	35		40		69		91
Net investment income	$	1,196	$	635	$	2,365	$	1,531

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $339 million and $670 million for the three months and six months ended June 30, 2021, respectively, and ($193) million and ($120) million for the three months and six months ended June 30, 2020, respectively.

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Fixed maturity securities	$	(31)	$	(20)	$	(23)	$	(26)
Equity securities	3		7		3		(7)
Mortgage loans	(5)		(22)		(1)		(26)
Limited partnerships and LLCs	1		(2)		1		(3)
Other	(1)		4		(1)		10
Total net investment gains (losses)	$	(33)	$	(33)	$	(21)	$	(52)

Sales or Disposals of Fixed Maturity Securities

Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Proceeds	$	949	$	619	$	2,167	$	1,266
Gross investment gains	$	8	$	14	$	39	$	31
Gross investment losses	(38)		(36)		(55)		(42)
Net investment gains (losses)	$	(30)	$	(22)	$	(16)	$	(11)

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at:

		June 30, 2021						December 31, 2020
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate forwards	Interest rate	$	240	$	28	$	—	$	290	$	66	$	—
Foreign currency swaps	Foreign currency exchange rate	2,859		144		59		2,750		122		112
Total qualifying hedges		3,099		172		59		3,040		188		112
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	2,845		366		19		2,295		463		—
Interest rate caps	Interest rate	3,100		8		—		2,350		2		—
Interest rate options	Interest rate	28,590		302		178		25,980		712		122
Interest rate forwards	Interest rate	10,498		244		244		8,086		851		78
Foreign currency swaps	Foreign currency exchange rate	963		79		25		989		85		32
Foreign currency forwards	Foreign currency exchange rate	234		2		—		201		—		—
Credit default swaps — purchased	Credit	18		—		1		18		—		—
Credit default swaps — written	Credit	1,774		41		1		1,755		41		—
Credit default options	Credit	300		—		—		100		—		—
Equity index options	Equity market	29,176		1,188		944		31,576		1,071		838
Equity variance swaps	Equity market	359		9		7		1,098		13		20
Equity total return swaps	Equity market	25,760		259		403		15,056		143		822
Total non-designated or non-qualifying derivatives		103,617		2,498		1,822		89,504		3,381		1,912
Embedded derivatives:
Ceded guaranteed minimum income benefits	Other	N/A		219		—		N/A		283		—
Direct index-linked annuities	Other	N/A		—		5,466		N/A		—		3,855
Direct guaranteed minimum benefits	Other	N/A		—		1,908		N/A		—		2,751
Assumed guaranteed minimum benefits	Other	N/A		—		471		N/A		—		596
Assumed index-linked annuities	Other	N/A		—		427		N/A		—		382
Total embedded derivatives		N/A		219		8,272		N/A		283		7,584
Total		$	106,716	$	2,889	$	10,153	$	92,544	$	3,852	$	9,608

Derivative Instruments, Gain (Loss)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	1	$	19
Foreign currency exchange rate derivatives	1		—		7		95
Total cash flow hedges	1		—		8		114
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	722		—		—		—
Foreign currency exchange rate derivatives	18		—		—		—
Credit derivatives	8		—		—		—
Equity derivatives	(306)		—		—		—
Embedded derivatives	(1,161)		—		—		—
Total non-qualifying hedges	(719)		—		—		—
Total	$	(718)	$	—	$	8	$	114
Three Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	—	$	(4)
Foreign currency exchange rate derivatives	4		(3)		9		(135)
Total cash flow hedges	4		(3)		9		(139)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(165)		—		—		—
Foreign currency exchange rate derivatives	(27)		(2)		—		—
Credit derivatives	29		—		—		—
Equity derivatives	(1,606)		—		—		—
Embedded derivatives	(880)		—		—		—
Total non-qualifying hedges	(2,649)		(2)		—		—
Total	$	(2,645)	$	(5)	$	9	$	(139)

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Six Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	2	$	(33)
Foreign currency exchange rate derivatives	6		(3)		15		80
Total cash flow hedges	7		(3)		17		47
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(1,190)		—		—		—
Foreign currency exchange rate derivatives	11		3		—		—
Credit derivatives	11		—		—		—
Equity derivatives	(448)		—		—		—
Embedded derivatives	(496)		—		—		—
Total non-qualifying hedges	(2,112)		3		—		—
Total	$	(2,105)	$	—	$	17	$	47
Six Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	1	$	93
Foreign currency exchange rate derivatives	4		(3)		20		321
Total cash flow hedges	5		(3)		21		414
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	4,756		—		—		—
Foreign currency exchange rate derivatives	105		(9)		—		—
Credit derivatives	(2)		—		—		—
Equity derivatives	358		—		—		—
Embedded derivatives	(1,113)		—		—		—
Total non-qualifying hedges	4,104		(9)		—		—
Total	$	4,109	$	(12)	$	21	$	414

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	1	$	19
Foreign currency exchange rate derivatives	1		—		7		95
Total cash flow hedges	1		—		8		114
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	722		—		—		—
Foreign currency exchange rate derivatives	18		—		—		—
Credit derivatives	8		—		—		—
Equity derivatives	(306)		—		—		—
Embedded derivatives	(1,161)		—		—		—
Total non-qualifying hedges	(719)		—		—		—
Total	$	(718)	$	—	$	8	$	114
Three Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	—	$	(4)
Foreign currency exchange rate derivatives	4		(3)		9		(135)
Total cash flow hedges	4		(3)		9		(139)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(165)		—		—		—
Foreign currency exchange rate derivatives	(27)		(2)		—		—
Credit derivatives	29		—		—		—
Equity derivatives	(1,606)		—		—		—
Embedded derivatives	(880)		—		—		—
Total non-qualifying hedges	(2,649)		(2)		—		—
Total	$	(2,645)	$	(5)	$	9	$	(139)

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Six Months Ended June 30, 2021
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	2	$	(33)
Foreign currency exchange rate derivatives	6		(3)		15		80
Total cash flow hedges	7		(3)		17		47
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(1,190)		—		—		—
Foreign currency exchange rate derivatives	11		3		—		—
Credit derivatives	11		—		—		—
Equity derivatives	(448)		—		—		—
Embedded derivatives	(496)		—		—		—
Total non-qualifying hedges	(2,112)		3		—		—
Total	$	(2,105)	$	—	$	17	$	47
Six Months Ended June 30, 2020
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	1	$	—	$	1	$	93
Foreign currency exchange rate derivatives	4		(3)		20		321
Total cash flow hedges	5		(3)		21		414
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	4,756		—		—		—
Foreign currency exchange rate derivatives	105		(9)		—		—
Credit derivatives	(2)		—		—		—
Equity derivatives	358		—		—		—
Embedded derivatives	(1,113)		—		—		—
Total non-qualifying hedges	4,104		(9)		—		—
Total	$	4,109	$	(12)	$	21	$	414

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

	June 30, 2021					December 31, 2020
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	14	$	683	2.4	$	15	$	683	2.9
Baa	27		1,081		5.2	26		1,072		5.2
Ba	—		6		4.5	—		—		—
Caa and Lower	(1)		4		4.5	—		—		—
Total	$	40	$	1,774	4.1	$	41	$	1,755	4.3

_______________

(1)The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Estimated Fair Value of Derivative Assets after Master Netting Agreements and Cash Collateral

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
June 30, 2021
Derivative assets	$	2,674	$	(1,326)	$	(993)	$	355	$	(304)	$	51
Derivative liabilities	$	1,872	$	(1,326)	$	—	$	546	$	(475)	$	71
December 31, 2020
Derivative assets	$	3,574	$	(1,342)	$	(1,327)	$	905	$	(840)	$	65
Derivative liabilities	$	2,010	$	(1,342)	$	—	$	668	$	(630)	$	38

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

Estimated Fair Value of Derivative Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
June 30, 2021
Derivative assets	$	2,674	$	(1,326)	$	(993)	$	355	$	(304)	$	51
Derivative liabilities	$	1,872	$	(1,326)	$	—	$	546	$	(475)	$	71
December 31, 2020
Derivative assets	$	3,574	$	(1,342)	$	(1,327)	$	905	$	(840)	$	65
Derivative liabilities	$	2,010	$	(1,342)	$	—	$	668	$	(630)	$	38

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

Schedule of Derivative Instruments

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	546	$	668
Estimated Fair Value of Collateral Provided: (2)
Fixed maturity securities	$	887	$	1,205

_______________

(1)After taking into consideration the existence of netting agreements.

(2)Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately.

XML

Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

	June 30, 2021
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,800	$	528	$	37,328
Foreign corporate	—		11,368		349		11,717
U.S. government and agency	3,264		5,836		—		9,100
RMBS	—		8,648		34		8,682
CMBS	—		6,905		2		6,907
State and political subdivision	—		4,757		—		4,757
ABS	—		3,169		181		3,350
Foreign government	—		1,858		12		1,870
Total fixed maturity securities	3,264		79,341		1,106		83,711
Equity securities	21		62		3		86
Short-term investments	142		64		—		206
Derivative assets: (1)
Interest rate	—		948		—		948
Foreign currency exchange rate	—		219		6		225
Credit	—		27		14		41
Equity market	—		1,447		9		1,456
Total derivative assets	—		2,641		29		2,670
Embedded derivatives within asset host contracts (2)	—		—		219		219
Separate account assets	42		107,480		—		107,522
Total assets	$	3,469	$	189,588	$	1,357	$	194,414
Liabilities
Derivative liabilities: (1)
Interest rate	$	—	$	441	$	—	$	441
Foreign currency exchange rate	—		84		—		84
Credit	—		—		2		2
Equity market	—		1,347		7		1,354
Total derivative liabilities	—		1,872		9		1,881
Embedded derivatives within liability host contracts (2)	—		—		8,272		8,272
Total liabilities	$	—	$	1,872	$	8,281	$	10,153

	December 31, 2020
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,789	$	487	$	37,276
Foreign corporate	—		11,178		197		11,375
U.S. government and agency	2,108		6,356		—		8,464
RMBS	—		8,197		22		8,219
CMBS	—		6,692		5		6,697
State and political subdivision	—		4,555		—		4,555
ABS	—		2,841		40		2,881
Foreign government	—		1,832		—		1,832
Total fixed maturity securities	2,108		78,440		751		81,299
Equity securities	31		99		3		133
Short-term investments	1,669		216		—		1,885
Derivative assets: (1)
Interest rate	—		2,094		—		2,094
Foreign currency exchange rate	—		206		1		207
Credit	—		27		14		41
Equity market	—		1,213		14		1,227
Total derivative assets	—		3,540		29		3,569
Embedded derivatives within asset host contracts (2)	—		—		283		283
Separate account assets	86		103,897		3		103,986
Total assets	$	3,894	$	186,192	$	1,069	$	191,155
Liabilities
Derivative liabilities: (1)
Interest rate	$	—	$	200	$	—	$	200
Foreign currency exchange rate	—		137		7		144
Equity market	—		1,660		20		1,680
Total derivative liabilities	—		1,997		27		2,024
Embedded derivatives within liability host contracts (2)	—		—		7,584		7,584
Total liabilities	$	—	$	1,997	$	7,611	$	9,608

_______________

(1)Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the consolidated balance sheets.

Fair Value Inputs, Quantitative Information

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

					June 30, 2021			December 31, 2020			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing  techniques	•	Mortality rates	0.03%	-	12.13%	0.03%	-	12.13%	Decrease (1)
			•	Lapse rates	0.25%	-	15.00%	0.25%	-	15.00%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.25%	-	10.00%	0.25%	-	10.00%	(4)
			•	Long-term equity volatilities	16.66%	-	22.21%	16.66%	-	22.21%	Increase (5)
			•	Nonperformance risk spread	(0.26)%	-	1.37%	0.47%	-	1.97%	Decrease (6)

_______________

(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

(3)The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		State and Political Subdivision		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Net Embedded Derivatives (3)		Separate Account Assets (4)
	(In millions)
Three Months Ended June 30, 2021
Balance, beginning of period	$	667	$	126	$	—	$	—	$	3	$	—	$	8	$	(6,774)	$	2
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	—		—		—		—		—		—		8		(1,161)		—
Total realized/unrealized gains (losses) included in AOCI	20		1		—		—		—		—		10		—		—
Purchases (7)	231		163		—		12		—		—		—		—		—
Sales (7)	(12)		(9)		—		—		—		—		(6)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(118)		—
Transfers into Level 3 (8)	54		—		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(83)		(64)		—		—		—		—		—		—		(2)
Balance, end of period	$	877	$	217	$	—	$	12	$	3	$	—	$	20	$	(8,053)	$	—
Three Months Ended June 30, 2020
Balance, beginning of period	$	838	$	218	$	72	$	7	$	4	$	2	$	50	$	(4,747)	$	4
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(2)		—		—		—		—		—		(3)		(880)		—
Total realized/unrealized gains (losses) included in AOCI	60		3		—		—		—		—		(11)		—		—
Purchases (7)	186		85		—		—		—		—		—		—		—
Sales (7)	(46)		(1)		—		—		—		(2)		(16)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(177)		—
Transfers into Level 3 (8)	86		26		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(228)		(158)		(72)		(7)		(1)		—		—		—		(1)
Balance, end of period	$	894	$	173	$	—	$	—	$	3	$	—	$	20	$	(5,804)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021(9)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	(1,139)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)	$	20	$	1	$	—	$	—	$	—	$	—	$	10	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	(924)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)	$	58	$	3	$	—	$	—	$	—	$	—	$	(10)	$	—	$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		State and Political Subdivision		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Net Embedded Derivatives (3)		Separate Account Assets (4)
	(In millions)
Six Months Ended June 30, 2021
Balance, beginning of period	$	684	$	67	$	—	$	—	$	3	$	—	$	2	$	(7,301)	$	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(1)		—		—		—		—		—		16		(496)		—
Total realized/unrealized gains (losses) included in AOCI	(1)		1		—		—		—		—		9		—		—
Purchases (7)	327		181		—		12		—		—		(1)		—		—
Sales (7)	(9)		(14)		—		—		—		—		(6)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(256)		—
Transfers into Level 3 (8)	54		—		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(177)		(18)		—		—		—		—		—		—		(3)
Balance, end of period	$	877	$	217	$	—	$	12	$	3	$	—	$	20	$	(8,053)	$	—
Six Months Ended June 30, 2020
Balance, beginning of period	$	457	$	117	$	73	$	—	$	8	$	5	$	16	$	(4,365)	$	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(4)		—		—		—		—		—		(2)		(1,113)		—
Total realized/unrealized gains (losses) included in AOCI	16		—		—		—		—		—		20		—		—
Purchases (7)	444		104		—		—		—		—		—		—		—
Sales (7)	(45)		(6)		—		—		—		(5)		(14)		—		—
Issuances (7)	—		—		—		—		—		—		—		—		—
Settlements (7)	—		—		—		—		—		—		—		(326)		—
Transfers into Level 3 (8)	158		30		—		—		—		—		—		—		—
Transfers out of Level 3 (8)	(132)		(72)		(73)		—		(5)		—		—		—		—
Balance, end of period	$	894	$	173	$	—	$	—	$	3	$	—	$	20	$	(5,804)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021 (9)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	2	$	(476)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)	$	(1)	$	1	$	—	$	—	$	—	$	—	$	9	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	(17)	$	(1,166)	$	—
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)	$	15	$	—	$	—	$	—	$	—	$	—	$	20	$	—	$	—

_______________

(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(3)Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(4)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses).

(5)Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(6)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(7)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(8)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(9)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	June 30, 2021
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	16,652	$	—	$	—	$	17,605	$	17,605
Policy loans	$	856	$	—	$	460	$	566	$	1,026
Other invested assets	$	78	$	—	$	62	$	16	$	78
Premiums, reinsurance and other receivables	$	3,180	$	—	$	118	$	3,860	$	3,978
Liabilities
Policyholder account balances	$	20,358	$	—	$	—	$	22,060	$	22,060
Long-term debt	$	842	$	—	$	37	$	1,087	$	1,124
Other liabilities	$	1,260	$	—	$	434	$	843	$	1,277
Separate account liabilities	$	1,413	$	—	$	1,413	$	—	$	1,413

	December 31, 2020
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	15,722	$	—	$	—	$	16,836	$	16,836
Policy loans	$	884	$	—	$	475	$	881	$	1,356
Other invested assets	$	54	$	—	$	39	$	15	$	54
Premiums, reinsurance and other receivables	$	3,114	$	—	$	90	$	3,808	$	3,898
Liabilities
Policyholder account balances	$	17,361	$	—	$	—	$	18,962	$	18,962
Long-term debt	$	843	$	—	$	39	$	1,031	$	1,070
Other liabilities	$	891	$	—	$	121	$	787	$	908
Separate account liabilities	$	1,331	$	—	$	1,331	$	—	$	1,331

XML

Equity (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months Ended June 30, 2021
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at March 31, 2021	$	3,150	$	49	$	(14)	$	3,185
OCI before reclassifications	1,284		114		2		1,400
Deferred income tax benefit (expense)	(270)		(24)		(1)		(295)
AOCI before reclassifications, net of income tax	4,164		139		(13)		4,290
Amounts reclassified from AOCI	30		(2)		—		28
Deferred income tax benefit (expense)	(7)		1		—		(6)
Amounts reclassified from AOCI, net of income tax	23		(1)		—		22
Balance at June 30, 2021	$	4,187	$	138	$	(13)	$	4,312

	Three Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at March 31, 2020	$	1,867	$	598	$	(20)	$	2,445
OCI before reclassifications	2,865		(139)		6		2,732
Deferred income tax benefit (expense)	(602)		29		(9)		(582)
AOCI before reclassifications, net of income tax	4,130		488		(23)		4,595
Amounts reclassified from AOCI	23		(4)		—		19
Deferred income tax benefit (expense)	(5)		1		—		(4)
Amounts reclassified from AOCI, net of income tax	18		(3)		—		15
Balance at June 30, 2020	$	4,148	$	485	$	(23)	$	4,610

	Six Months Ended June 30, 2021
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at December 31, 2020	$	5,321	$	108	$	(8)	$	5,421
OCI before reclassifications	(1,453)		47		(6)		(1,412)
Deferred income tax benefit (expense)	305		(10)		1		296
AOCI before reclassifications, net of income tax	4,173		145		(13)		4,305
Amounts reclassified from AOCI	18		(9)		—		9
Deferred income tax benefit (expense)	(4)		2		—		(2)
Amounts reclassified from AOCI, net of income tax	14		(7)		—		7
Balance at June 30, 2021	$	4,187	$	138	$	(13)	$	4,312

	Six Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Total
	(In millions)
Balance at December 31, 2019	$	3,066	$	163	$	(14)	$	3,215
OCI before reclassifications (2)	1,356		414		—		1,770
Deferred income tax benefit (expense)	(284)		(87)		(9)		(380)
AOCI before reclassifications, net of income tax	4,138		490		(23)		4,605
Amounts reclassified from AOCI	13		(6)		—		7
Deferred income tax benefit (expense)	(3)		1		—		(2)
Amounts reclassified from AOCI, net of income tax	10		(5)		—		5
Balance at June 30, 2020	$	4,148	$	485	$	(23)	$	4,610

_______________

(1)See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

(2)Includes $3 million related to the adoption of the allowance for credit losses guidance.

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(31)	$	(19)	$	(16)	$	(7)	Net investment gains (losses)
Net unrealized investment gains (losses)	1		(4)		(2)		(6)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(30)		(23)		(18)		(13)
Income tax (expense) benefit	7		5		4		3
Net unrealized investment gains (losses), net of income tax	(23)		(18)		(14)		(10)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		—		1		1		Net derivative gains (losses)
Interest rate swaps	1		—		2		1		Net investment income
Foreign currency swaps	1		4		6		4		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	2		4		9		6
Income tax (expense) benefit	(1)		(1)		(2)		(1)
Gains (losses) on cash flow hedges, net of income tax	1		3		7		5
Total reclassifications, net of income tax	$	(22)	$	(15)	$	(7)	$	(5)

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Other Revenues and Other Expenses (Tables)

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Other Expenses

Information on other expenses was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Compensation	$	89	$	82	$	174	$	155
Contracted services and other labor costs	62		69		115		130
Transition services agreements	29		15		59		51
Establishment costs	28		53		44		93
Premium and other taxes, licenses and fees	11		12		24		23
Volume related costs, excluding compensation, net of DAC capitalization	170		150		328		272
Interest expense on debt	16		17		33		34
Other	60		49		112		99
Total other expenses	$	465	$	447	$	889	$	857

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Effects of reinsurance

Information regarding the significant effects of assumed reinsurance with New England Life Insurance Company (“NELICO”), an affiliate, included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Premiums	$	—	$	—	$	2	$	—
Universal life and investment-type product policy fees	$	1	$	2	$	3	$	4
Other revenues	$	—	$	1	$	1	$	1
Policyholder benefits and claims	$	4	$	6	$	11	$	23
Other expenses	$	(9)	$	(7)	$	(13)	$	(12)

Information regarding the significant effects of assumed reinsurance with NELICO included on the interim condensed consolidated balance sheets was as follows at:

	June 30, 2021		December 31, 2020
	(In millions)
Assets
Premiums, reinsurance and other receivables (net of allowance for credit losses)	$	25	$	24
Liabilities
Future policy benefits	$	118	$	120
Policyholder account balances	$	471	$	596
Other policy-related balances	$	13	$	10
Other liabilities	$	13	$	9

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Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details)	6 Months Ended
	Jun. 30, 2021 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Reportable Segments	3

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Segment Information (Operating Results) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	$ (31)		$ (2,549)		$ (625)	$ 3,555
Provision for income tax expense (benefit)	(23)		(552)		(164)	713
Post-tax adjusted earnings	(8)	$ (453)	(1,997)	$ 4,839	(461)	2,842
Less: Net income (loss) attributable to noncontrolling interests	1		1		1	1
Net investment gains (losses)	(33)		(33)		(21)	(52)
Net derivative gains (losses)	(718)		(2,650)		(2,105)	4,097
Other adjustments to net income (loss)	74		67		170	151
Net income (loss) attributable to Brighthouse Life Insurance Company	(9)		(1,998)		(462)	2,841
Annuities
Segment Reporting Information [Line Items]
Interest revenue	532		402		1,079	860
Interest expense	0		0		0	0
Life
Segment Reporting Information [Line Items]
Interest revenue	156		57		306	157
Interest expense	0		0		0	0
Run-off
Segment Reporting Information [Line Items]
Interest revenue	498		166		961	490
Interest expense	0		0		0	0
Corporate & Other
Segment Reporting Information [Line Items]
Interest revenue	15		15		29	31
Interest expense	16		17		33	34
Operating Segments
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	544		(6)		1,100	226
Provision for income tax expense (benefit)	98		(18)		199	14
Post-tax adjusted earnings	446		12		901	212
Less: Net income (loss) attributable to noncontrolling interests	1		1		1	1
Adjusted earnings	445		11		900	211
Operating Segments | Annuities
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	410		193		806	576
Provision for income tax expense (benefit)	78		32		153	104
Post-tax adjusted earnings	332		161		653	472
Less: Net income (loss) attributable to noncontrolling interests	0		0		0	0
Adjusted earnings	332		161		653	472
Operating Segments | Life
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	84		46		225	67
Provision for income tax expense (benefit)	17		10		46	14
Post-tax adjusted earnings	67		36		179	53
Less: Net income (loss) attributable to noncontrolling interests	0		0		0	0
Adjusted earnings	67		36		179	53
Operating Segments | Run-off
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	139		(147)		224	(236)
Provision for income tax expense (benefit)	18		(32)		27	(51)
Post-tax adjusted earnings	121		(115)		197	(185)
Less: Net income (loss) attributable to noncontrolling interests	0		0		0	0
Adjusted earnings	121		(115)		197	(185)
Operating Segments | Corporate & Other
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	(89)		(98)		(155)	(181)
Provision for income tax expense (benefit)	(15)		(28)		(27)	(53)
Post-tax adjusted earnings	(74)		(70)		(128)	(128)
Less: Net income (loss) attributable to noncontrolling interests	1		1		1	1
Adjusted earnings	(75)		(71)		(129)	(129)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Provision for income tax expense (benefit)	121		534		363	(699)
Net investment gains (losses)	(33)		(33)		(21)	(52)
Net derivative gains (losses)	(718)		(2,650)		(2,105)	4,097
Other adjustments to net income (loss)	$ 176		$ 140		$ 401	$ (716)

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Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Total revenues	$ 1,436	$ (1,099)	$ 2,250	$ 7,501
Annuities
Segment Reporting Information [Line Items]
Total revenues	1,104	922	2,251	1,935
Life
Segment Reporting Information [Line Items]
Total revenues	332	237	656	506
Run-off
Segment Reporting Information [Line Items]
Total revenues	661	332	1,289	825
Corporate & Other
Segment Reporting Information [Line Items]
Total revenues	34	35	69	73
Segment Reconciling Items
Segment Reporting Information [Line Items]
Total revenues	$ (695)	$ (2,625)	$ (2,015)	$ 4,162

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Segment Information (Assets) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 241,136	$ 235,288
Annuities
Segment Reporting Information [Line Items]
Total assets	172,714	167,806
Life
Segment Reporting Information [Line Items]
Total assets	17,899	17,796
Run-off
Segment Reporting Information [Line Items]
Total assets	37,051	38,366
Corporate & Other
Segment Reporting Information [Line Items]
Total assets	$ 13,472	$ 11,320

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Segment Information (Narrative) (Details)	6 Months Ended
	Jun. 30, 2021 segment
Segment Reporting [Abstract]
Number of segments	3

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Insurance (Guarantees Related to Annuity Contracts) (Details) - Variable Annuity Guarantees - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
In the Event of Death
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value (3)	$ 107,291	$ 104,075
Separate account value	102,519	99,257
Net amount at risk	$ 5,986	$ 6,392
Average attained age of contract holders	71 years	70 years
At Annuitization
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value (3)	$ 58,670	$ 57,790
Separate account value	57,585	56,668
Net amount at risk	$ 4,710	$ 6,341
Average attained age of contract holders	70 years	70 years

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Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Secondary Guarantees - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Universal Life Contracts
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value (3)	$ 5,634	$ 5,772
Net amount at risk	$ 68,043	$ 69,083
Average attained age of policyholders	67 years	67 years
Variable Life Contracts
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value (3)	$ 1,414	$ 1,306
Net amount at risk	$ 10,851	$ 11,234
Average attained age of policyholders	46 years	46 years

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Investments (Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	$ 74,489	$ 69,483
Fixed maturity securities, allowance for credit losses	9	2	$ 4	$ 4
Fixed maturity securities, gross unrealized gains	9,584	11,961
Fixed maturity securities, gross unrealized losses	353	143
Fixed maturity securities, estimated fair value	83,711	81,299
U.S. corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	33,247	32,062
Fixed maturity securities, allowance for credit losses	1	2	2	3
Fixed maturity securities, gross unrealized gains	4,249	5,286
Fixed maturity securities, gross unrealized losses	167	70
Fixed maturity securities, estimated fair value	37,328	37,276
Foreign corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	10,646	9,926
Fixed maturity securities, allowance for credit losses	6	0	2	1
Fixed maturity securities, gross unrealized gains	1,145	1,493
Fixed maturity securities, gross unrealized losses	68	44
Fixed maturity securities, estimated fair value	11,717	11,375
U.S. government and agency
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	7,191	5,871
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	1,987	2,599
Fixed maturity securities, gross unrealized losses	78	6
Fixed maturity securities, estimated fair value	9,100	8,464
RMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	8,152	7,578
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	543	644
Fixed maturity securities, gross unrealized losses	13	3
Fixed maturity securities, estimated fair value	8,682	8,219
CMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	6,459	6,120
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	462	586
Fixed maturity securities, gross unrealized losses	14	9
Fixed maturity securities, estimated fair value	6,907	6,697
State and political subdivision
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	3,896	3,607
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	866	948
Fixed maturity securities, gross unrealized losses	5	0
Fixed maturity securities, estimated fair value	4,757	4,555
ABS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	3,297	2,831
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	56	60
Fixed maturity securities, gross unrealized losses	3	10
Fixed maturity securities, estimated fair value	3,350	2,881
Foreign government
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	1,601	1,488
Fixed maturity securities, allowance for credit losses	2	0	$ 0	$ 0
Fixed maturity securities, gross unrealized gains	276	345
Fixed maturity securities, gross unrealized losses	5	1
Fixed maturity securities, estimated fair value	$ 1,870	$ 1,832

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Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Amortized cost, due in one year or less	$ 1,187
Amortized cost, due after one year through five years	8,902
Amortized cost, due after five years through ten years	15,856
Amortized cost, due after ten years	30,636
Amortized cost, Structured Securities	17,908
Fixed maturity securities, amortized cost	74,489	$ 69,483
Estimated fair value, due in one year or less	1,204
Estimated fair value, due after one year through five years	9,410
Estimated fair value, due after five years through ten years	17,167
Estimated fair value, due after ten years	36,991
Estimated fair value, Structured Securities	18,939
Fixed maturity securities, estimated fair value	$ 83,711	$ 81,299

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Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector) (Details) $ in Millions	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	$ 9,622	$ 3,323
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	$ 303	$ 83
Fixed maturity securities in continuous unrealized loss position, less than 12 months, number of securities	1,310	665
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	$ 836	$ 1,221
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	$ 50	$ 60
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, number of securities	261	241
U.S. corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	$ 3,873	$ 1,726
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	156	57
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	299	181
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	11	13
Foreign corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,033	243
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	33	7
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	252	345
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	35	37
U.S. government and agency
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,685	236
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	78	6
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	0	0
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	0	0
RMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,274	180
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	12	2
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	41	22
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	1	1
CMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	595	331
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	12	7
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	59	44
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	2	2
State and political subdivision
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	259	46
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	5	0
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	0	0
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	0	0
ABS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	756	506
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	2	3
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	185	629
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	1	7
Foreign government
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	147	55
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	5	1
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	0	0
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	$ 0	$ 0

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Investments (Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Fixed maturity securities, allowance for credit losses, beginning of period	$ 2	$ 4
Allowance on securities where credit losses were not previously recorded	8	5
Change in allowance on securities with an allowance recorded in a previous period	(1)	(1)
Write-offs charged against allowance	0	(4)
Fixed maturity securities, allowance for credit losses, end of period	9	4
U.S. corporate
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Fixed maturity securities, allowance for credit losses, beginning of period	2	3
Allowance on securities where credit losses were not previously recorded	0	3
Change in allowance on securities with an allowance recorded in a previous period	(1)	(1)
Write-offs charged against allowance	0	(3)
Fixed maturity securities, allowance for credit losses, end of period	1	2
Foreign corporate
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Fixed maturity securities, allowance for credit losses, beginning of period	0	1
Allowance on securities where credit losses were not previously recorded	6	2
Change in allowance on securities with an allowance recorded in a previous period	0	0
Write-offs charged against allowance	0	(1)
Fixed maturity securities, allowance for credit losses, end of period	6	2
Foreign government
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Fixed maturity securities, allowance for credit losses, beginning of period	0	0
Allowance on securities where credit losses were not previously recorded	2	0
Change in allowance on securities with an allowance recorded in a previous period	0	0
Write-offs charged against allowance	0	0
Fixed maturity securities, allowance for credit losses, end of period	$ 2	$ 0

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Investments (Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 16,748	$ 15,816
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	100.50%	100.60%
Financing receivable, allowance for credit losses	$ (96)	$ (94)	$ (92)	$ (64)
Financing receivable, allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	(0.50%)	(0.60%)
Financing receivable, net of allowance for credit losses	$ 16,652	$ 15,722
Financing receivable, after allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	100.00%	100.00%
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 10,225	$ 9,687
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	61.40%	61.60%
Financing receivable, allowance for credit losses	$ (46)	$ (44)	(37)	(27)
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 3,737	$ 3,479
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	22.40%	22.10%
Financing receivable, allowance for credit losses	$ (13)	$ (15)	(16)	(16)
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 2,786	$ 2,650
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	16.70%	16.90%
Financing receivable, allowance for credit losses	$ (37)	$ (35)	$ (39)	$ (21)

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Investments (Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	$ 94	$ 64
Current period provision	2	28
Financing receivable, allowance for credit losses, end of period	96	92
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	44	27
Current period provision	2	10
Financing receivable, allowance for credit losses, end of period	46	37
Agricultural
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	15	16
Current period provision	(2)	0
Financing receivable, allowance for credit losses, end of period	13	16
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	35	21
Current period provision	2	18
Financing receivable, allowance for credit losses, end of period	$ 37	$ 39

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Investments (PCD Mortgage Loans) (Details) - Mortgage Loans - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables purchased with credit deterioration, purchase price	$ 229	$ 77
Financing receivables purchased with credit deterioration, allowance at acquisition date	1	2
Financing receivables purchased with credit deterioration, discount or premium attributable to other factors	(16)	2
Financing receivables purchased with credit deterioration, par value	$ 214	$ 81

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Investments (Credit Quality of Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	$ 1,471	$ 1,380
Financing receivable, originated in FY before latest FY	1,361	2,970
Financing receivable, originated two years before latest FY	2,945	2,691
Financing receivable, originated three years before latest FY	2,574	1,421
Financing receivable, originated four years before latest FY	1,395	1,733
Financing receivable, originated five or more years before latest FY	7,002	5,621
Financing receivable, before allowance for credit losses	16,748	15,816
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	911	517
Financing receivable, originated in FY before latest FY	532	1,977
Financing receivable, originated two years before latest FY	1,976	1,515
Financing receivable, originated three years before latest FY	1,513	880
Financing receivable, originated four years before latest FY	850	1,250
Financing receivable, originated five or more years before latest FY	4,443	3,548
Financing receivable, before allowance for credit losses	$ 10,225	$ 9,687
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	100.00%	100.00%
Commercial | Debt Service Coverage Ratio, Greater than 1.20x
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, before allowance for credit losses	$ 9,518	$ 9,423
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	93.10%	97.30%
Commercial | Debt Service Coverage Ratio, 1.00x to 1.20x
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, before allowance for credit losses	$ 359	$ 204
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	3.50%	2.10%
Commercial | Debt Service Coverage Ratio, Less than 1.00x
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, before allowance for credit losses	$ 348	$ 60
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	3.40%	0.60%
Commercial | Loan-to-Value Ratio, Less than 65%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	$ 692	$ 317
Financing receivable, originated in FY before latest FY	333	1,527
Financing receivable, originated two years before latest FY	1,424	1,004
Financing receivable, originated three years before latest FY	972	514
Financing receivable, originated four years before latest FY	513	1,106
Financing receivable, originated five or more years before latest FY	3,563	2,808
Financing receivable, before allowance for credit losses	7,497	7,276
Commercial | Loan-to-Value Ratio, 65% to 75%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	219	200
Financing receivable, originated in FY before latest FY	199	450
Financing receivable, originated two years before latest FY	552	482
Financing receivable, originated three years before latest FY	511	322
Financing receivable, originated four years before latest FY	293	59
Financing receivable, originated five or more years before latest FY	553	498
Financing receivable, before allowance for credit losses	2,327	2,011
Commercial | Loan-to-Value Ratio, 76% to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	0
Financing receivable, originated in FY before latest FY	0	0
Financing receivable, originated two years before latest FY	0	0
Financing receivable, originated three years before latest FY	0	44
Financing receivable, originated four years before latest FY	44	79
Financing receivable, originated five or more years before latest FY	88	8
Financing receivable, before allowance for credit losses	132	131
Commercial | Loan-to-Value Ratio, Greater than 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	0
Financing receivable, originated in FY before latest FY	0	0
Financing receivable, originated two years before latest FY	0	29
Financing receivable, originated three years before latest FY	30	0
Financing receivable, originated four years before latest FY	0	6
Financing receivable, originated five or more years before latest FY	239	234
Financing receivable, before allowance for credit losses	269	269
Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	494	647
Financing receivable, originated in FY before latest FY	619	606
Financing receivable, originated two years before latest FY	616	759
Financing receivable, originated three years before latest FY	727	410
Financing receivable, originated four years before latest FY	367	412
Financing receivable, originated five or more years before latest FY	914	645
Financing receivable, before allowance for credit losses	3,737	3,479
Agricultural | Loan-to-Value Ratio, Less than 65%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	433	566
Financing receivable, originated in FY before latest FY	540	526
Financing receivable, originated two years before latest FY	538	749
Financing receivable, originated three years before latest FY	716	377
Financing receivable, originated four years before latest FY	342	412
Financing receivable, originated five or more years before latest FY	896	627
Financing receivable, before allowance for credit losses	3,465	3,257
Agricultural | Loan-to-Value Ratio, 65% to 75%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	61	81
Financing receivable, originated in FY before latest FY	79	80
Financing receivable, originated two years before latest FY	78	10
Financing receivable, originated three years before latest FY	11	33
Financing receivable, originated four years before latest FY	25	0
Financing receivable, originated five or more years before latest FY	18	18
Financing receivable, before allowance for credit losses	272	222
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	66	216
Financing receivable, originated in FY before latest FY	210	387
Financing receivable, originated two years before latest FY	353	417
Financing receivable, originated three years before latest FY	334	131
Financing receivable, originated four years before latest FY	178	71
Financing receivable, originated five or more years before latest FY	1,645	1,428
Financing receivable, before allowance for credit losses	2,786	2,650
Residential | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	66	214
Financing receivable, originated in FY before latest FY	208	381
Financing receivable, originated two years before latest FY	351	413
Financing receivable, originated three years before latest FY	332	131
Financing receivable, originated four years before latest FY	177	70
Financing receivable, originated five or more years before latest FY	1,594	1,375
Financing receivable, before allowance for credit losses	2,728	2,584
Residential | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	2
Financing receivable, originated in FY before latest FY	2	6
Financing receivable, originated two years before latest FY	2	4
Financing receivable, originated three years before latest FY	2	0
Financing receivable, originated four years before latest FY	1	1
Financing receivable, originated five or more years before latest FY	51	53
Financing receivable, before allowance for credit losses	$ 58	$ 66

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Investments (Past Due Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	$ 16,748	$ 15,816
Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	16,628	15,741
30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	45	9
60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	14	24
90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	43	27
180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	18	15
Commercial
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	10,225	9,687
Commercial | Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	10,225	9,687
Commercial | 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Commercial | 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Commercial | 90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Commercial | 180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Agricultural
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	3,737	3,479
Agricultural | Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	3,720	3,479
Agricultural | 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Agricultural | 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Agricultural | 90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	15	0
Agricultural | 180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	2	0
Residential
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	2,786	2,650
Residential | Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	2,683	2,575
Residential | 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	45	9
Residential | 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	14	24
Residential | 90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	28	27
Residential | 180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	$ 16	$ 15

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Investments (Mortgage Loans in Nonaccrual Status by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	$ 72	$ 66
Commercial
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	0	0
Agricultural
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	14	0
Residential
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	$ 58	$ 66

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Investments (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss
Fixed maturity securities	$ 9,231	$ 11,818
Derivatives	200	162
Other	(17)	(16)
Subtotal	9,414	11,964
Amounts allocated from: Future policy benefits	(3,514)	(4,598)
Amounts allocated from: DAC, VOBA and DSI	(425)	(494)
Subtotal	(3,939)	(5,092)
Deferred income tax benefit (expense)	(1,150)	(1,443)
Net unrealized investment gains (losses)	$ 4,325	$ 5,429

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Investments (Changes in Net Unrealized Investment Gains (Losses)) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Unrealized investment gains (losses), beginning of period	$ 5,429
Unrealized investment gains (losses) during the period	(2,550)
Unrealized investment gains (losses) relating to: Future policy benefits	1,084
Unrealized investment gains (losses) relating to: DAC, VOBA and DSI	69
Unrealized investment gains (losses) relating to: Deferred income tax benefit (expense)	293
Unrealized investment gains (losses), end of period	4,325
Change in net unrealized investment gains (losses)	$ (1,104)

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Investments (Securities Lending) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	$ 4,025	$ 3,674
Securities collateral received from counterparties	7	0
Reinvestment portfolio — estimated fair value	4,193	3,830
Amortized cost
Securities Financing Transaction [Line Items]
Securities on loan	3,071	2,373
Estimated fair value
Securities Financing Transaction [Line Items]
Securities on loan	$ 3,969	$ 3,603

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Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	$ 4,025	$ 3,674
Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1,256	937
Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	2,336	2,300
Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	433	437
U.S. government and agency
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	4,024	3,674
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1,255	937
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	2,336	2,300
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	433	437
U.S. corporate
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1	0
U.S. corporate | Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1	0
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	0	0
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	$ 0	$ 0

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Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Invested assets on deposit (regulatory deposits)	$ 9,895	$ 10,131
Invested assets held in trust (reinsurance agreements)	5,719	5,711
Invested assets pledged as collateral	5,448	5,595
Total invested assets on deposit, held in trust and pledged as collateral	$ 21,062	$ 21,437

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Investments (Variable Interest Entities) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Carrying amount	$ 241,136	$ 235,288
VIE, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying amount	17,395	15,801
Maximum exposure to loss	17,817	15,981
VIE, Not Primary Beneficiary | Fixed maturity securities
Variable Interest Entity [Line Items]
Carrying amount	14,410	13,494
Maximum exposure to loss	13,494	12,416
VIE, Not Primary Beneficiary | Limited partnerships and LLCs
Variable Interest Entity [Line Items]
Carrying amount	2,985	2,307
Maximum exposure to loss	$ 4,323	$ 3,565

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Investments (Net Investment Income) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Investment Income [Line Items]
Gross investment income	$ 1,231	$ 675	$ 2,434	$ 1,622
Less: Investment expenses	35	40	69	91
Net investment income	1,196	635	2,365	1,531
Fixed maturity securities
Net Investment Income [Line Items]
Gross investment income	694	667	1,374	1,325
Equity securities
Net Investment Income [Line Items]
Gross investment income	1	1	2	3
Mortgage loans
Net Investment Income [Line Items]
Gross investment income	166	166	329	332
Policy loans
Net Investment Income [Line Items]
Gross investment income	11	8	21	14
Limited partnerships and LLCs
Net Investment Income [Line Items]
Gross investment income	350	(190)	688	(108)
Cash, cash equivalents and short-term investments
Net Investment Income [Line Items]
Gross investment income	1	12	2	32
Other
Net Investment Income [Line Items]
Gross investment income	$ 8	$ 11	$ 18	$ 24

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Investments (Components of Net Investment Gains (Losses)) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Net investment gains (losses), fixed maturity securities	$ (31)	$ (20)	$ (23)	$ (26)
Net investment gains (losses), equity securities	3	7	3	(7)
Net investment gains (losses), mortgage loans	(5)	(22)	(1)	(26)
Net investment gains (losses), limited partnerships and LLCs	1	(2)	1	(3)
Net investment gains (losses), other	(1)	4	(1)	10
Net investment gains (losses)	$ (33)	$ (33)	$ (21)	$ (52)

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Investments (Sales or Disposals of Fixed Maturity Securities) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales or disposals of fixed maturity securities	$ 949	$ 619	$ 2,167	$ 1,266
Fixed maturity securities, gross investment gains	8	14	39	31
Fixed maturity securities, gross investment losses	(38)	(36)	(55)	(42)
Fixed maturity securities, net investment gains (losses)	$ (30)	$ (22)	$ (16)	$ (11)

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Investments (Fixed Maturity Securities - Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, estimated fair value	$ 83,711		$ 81,299
Fixed maturity securities, allowance for credit losses	$ 9	$ 4	2	$ 4
Fixed maturity securities with allowance for credit losses, number of securities	4
Fixed maturity securities, total write-offs	$ 0	$ 13
Non-Income Producing
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, estimated fair value	5
Fixed maturity securities
Debt Securities, Available-for-sale [Line Items]
Accrued interest receivable	$ 520		$ 506

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Investments (Mortgage Loans - Narrative) (Details) - Mortgage Loans - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables purchased from third parties	$ 621	$ 331	$ 799	$ 488
Accrued interest receivable	88		88		$ 88
Financing receivable, before allowance for credit losses	16,748		16,748		15,816
COVID-19 Pandemic financing receivables in nonaccrual status	33		33		38
COVID-19 Pandemic Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 33		$ 33		$ 38
Minimum | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses by performance status as a percentage of financing receivables, before allowance for credit losses	99.00%		99.00%		99.00%
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables in nonaccrual status, investment income			$ 1	$ 1
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 2,786		2,786		$ 2,650
Financing receivables in nonaccrual status with no allowance for credit losses	9		9		7
Residential | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 2,728		$ 2,728		$ 2,584

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Investments (Other Invested Assets - Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Leveraged leases, net of allowance for credit losses	$ 49	$ 49
Leveraged leases, allowance for credit losses	$ 13	$ 13
Leveraged leases by performance status as a percentage of leveraged leases	100.00%	100.00%
Minimum
Derivative [Line Items]
Percentage of other invested assets comprised of freestanding derivatives with positive estimated fair values	90.00%

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Investments (Securities Lending - Narrative) (Details) $ in Millions	Jun. 30, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Cash collateral on deposit from counterparties	$ 1,200
Percentage of reinvestment portfolio invested in liquid assets	61.00%

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Investments (Invested Assets on Deposit, Held in Trust and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Restricted Cash and Cash Equivalents Items [Line Items]
Invested assets on deposit (regulatory deposits)	$ 9,895	$ 10,131
Invested assets held in trust (reinsurance agreements)	5,719	5,711
Restricted Cash and Cash Equivalents
Restricted Cash and Cash Equivalents Items [Line Items]
Invested assets on deposit (regulatory deposits)	112	59
Invested assets held in trust (reinsurance agreements)	119	101
Federal Home Loan Bank stock	$ 63	$ 39

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Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Investment Income [Line Items]
Net investment income	$ 1,196	$ 635	$ 2,365	$ 1,531
Other limited partnership interests
Net Investment Income [Line Items]
Net investment income	$ 339	$ (193)	$ 670	$ (120)

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Derivatives (Primary Risks Managed by Derivatives) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 106,716	$ 92,544
Derivative assets	2,889	3,852
Derivative liabilities	10,153	9,608
Embedded Derivative, Fair Value of Embedded Derivative Asset	219	283
Embedded Derivative, Fair Value of Embedded Derivative Liability	8,272	7,584
Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	3,099	3,040
Derivative assets	172	188
Derivative liabilities	59	112
Derivatives Designated as Hedging Instruments: | Cash flow hedges: | Interest rate forwards
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	240	290
Derivative assets	28	66
Derivative liabilities	0	0
Derivatives Designated as Hedging Instruments: | Cash flow hedges: | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,859	2,750
Derivative assets	144	122
Derivative liabilities	59	112
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	103,617	89,504
Derivative assets	2,498	3,381
Derivative liabilities	1,822	1,912
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,845	2,295
Derivative assets	366	463
Derivative liabilities	19	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	3,100	2,350
Derivative assets	8	2
Derivative liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	28,590	25,980
Derivative assets	302	712
Derivative liabilities	178	122
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	10,498	8,086
Derivative assets	244	851
Derivative liabilities	244	78
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	963	989
Derivative assets	79	85
Derivative liabilities	25	32
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	234	201
Derivative assets	2	0
Derivative liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	18	18
Derivative assets	0	0
Derivative liabilities	1	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	1,774	1,755
Derivative assets	41	41
Derivative liabilities	1	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default options
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	300	100
Derivative assets	0	0
Derivative liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	29,176	31,576
Derivative assets	1,188	1,071
Derivative liabilities	944	838
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	359	1,098
Derivative assets	9	13
Derivative liabilities	7	20
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	25,760	15,056
Derivative assets	259	143
Derivative liabilities	403	822
Ceded guaranteed minimum income benefits
Derivatives, Fair Value [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	219	283
Embedded Derivative, Fair Value of Embedded Derivative Liability	0	0
Direct guaranteed minimum benefits
Derivatives, Fair Value [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	0	0
Embedded Derivative, Fair Value of Embedded Derivative Liability	1,908	2,751
Assumed guaranteed minimum benefits
Derivatives, Fair Value [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	0	0
Embedded Derivative, Fair Value of Embedded Derivative Liability	471	596
Direct index-linked annuities
Derivatives, Fair Value [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	0	0
Embedded Derivative, Fair Value of Embedded Derivative Liability	5,466	3,855
Direct index-linked annuities | Assumed index-linked annuities
Derivatives, Fair Value [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	0	0
Embedded Derivative, Fair Value of Embedded Derivative Liability	$ 427	$ 382

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Derivatives (Derivatives Pertaining to Hedged Items) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	$ 0	$ (5)	$ 0	$ (12)
Amount of Gains (Losses) Deferred in AOCI	114	(139)	47	414
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	(2)	3	(9)
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	(3)	(3)	(3)
Amount of Gains (Losses) Deferred in AOCI	114	(139)	47	414
Net Derivative Gains (Losses) Recognized for Derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(718)	(2,645)	(2,105)	4,109
Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(719)	(2,649)	(2,112)	4,104
Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	1	4	7	5
Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	8	9	17	21
Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0	0	0
Net Investment Income | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	8	9	17	21
Interest rate derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Interest rate derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	19	(4)	(33)	93
Interest rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	722	(165)	(1,190)	4,756
Interest rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0	1	1
Interest rate derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0	0	0
Interest rate derivatives | Net Investment Income | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	1	0	2	1
Foreign currency exchange rate derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	(2)	3	(9)
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Foreign currency exchange rate derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	(3)	(3)	(3)
Amount of Gains (Losses) Deferred in AOCI	95	(135)	80	321
Foreign currency exchange rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	18	(27)	11	105
Foreign currency exchange rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	1	4	6	4
Foreign currency exchange rate derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0	0	0
Foreign currency exchange rate derivatives | Net Investment Income | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	7	9	15	20
Credit derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Credit derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	8	29	11	(2)
Credit derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0	0	0
Equity derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Equity derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(306)	(1,606)	(448)	358
Equity derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0	0	0
Embedded derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Embedded derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(1,161)	(880)	(496)	(1,113)
Embedded derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 0	$ 0	$ 0	$ 0

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Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 40		$ 41
Maximum Amount of Future Payments under Credit Default Swaps	$ 1,774		1,755
Weighted Average Years to Maturity (2)	4 years 1 month 6 days	4 years 3 months 18 days
Credit default swaps | Aaa/Aa/A
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 14		15
Maximum Amount of Future Payments under Credit Default Swaps	$ 683		683
Weighted Average Years to Maturity (2)	2 years 4 months 24 days	2 years 10 months 24 days
Credit default swaps | Baa
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 27		26
Maximum Amount of Future Payments under Credit Default Swaps	$ 1,081		1,072
Weighted Average Years to Maturity (2)	5 years 2 months 12 days	5 years 2 months 12 days
Credit default swaps | Ba
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 0		0
Maximum Amount of Future Payments under Credit Default Swaps	$ 6		0
Weighted Average Years to Maturity (2)	4 years 6 months	0 years
Credit default swaps | Caa and Lower
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ (1)		0
Maximum Amount of Future Payments under Credit Default Swaps	$ 4		$ 0
Weighted Average Years to Maturity (2)	4 years 6 months	0 years

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Derivatives (Derivatives Asset and Liability after Master Netting Arrangement or a Similar Arrangement) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Offsetting Derivative Assets [Abstract]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	$ 2,674	$ 3,574
Derivative Asset, Not Offset, Policy Election Deduction	(1,326)	(1,342)
Derivative Asset, Collateral, Obligation to Return Cash, Offset	(993)	(1,327)
Derivative Asset, Fair Value, Amount Offset Against Collateral	355	905
Derivative Asset, Collateral, Obligation to Return Securities, Offset	(304)	(840)
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	51	65
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	1,872	2,010
Derivative Liability, Not Offset, Policy Election Deduction	(1,326)	(1,342)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset	0	0
Derivative Liability, Fair Value, Amount Offset Against Collateral	546	668
Derivative Liability, Collateral, Right to Reclaim Securities, Offset	(475)	(630)
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	$ 71	$ 38

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Derivatives (Estimated Fair Value of OTC-Bilateral Derivatives) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Estimated Fair Value of Derivatives in Net Liability Position	$ 546	$ 668
Fixed Maturity Securities
Derivative [Line Items]
Estimated Fair Value of Collateral Provided	$ 887	$ 1,205

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Derivatives (Derivatives Pertaining to Hedged Items - Narrative) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Accumulated Other Comprehensive Income (Loss), Cumulative changes in Net	$ 200	$ 162
Maximum Length of Time Hedged in Cash Flow Hedge	2 years	3 years

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Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets [Abstract]
Fixed maturity securities, estimated fair value	$ 83,711	$ 81,299
Equity securities	86	133
Short-term investments	206	1,885
Derivative assets: (1)	2,889	3,852
Embedded derivatives within asset host contracts (2)	219	283
Separate account assets	107,522	103,986
Liabilities [Abstract]
Derivative liabilities: (1)	10,153	9,608
Embedded derivatives within liability host contracts (2)	8,272	7,584
Recurring
Assets [Abstract]
Fixed maturity securities, estimated fair value	83,711	81,299
Equity securities	86	133
Short-term investments	206	1,885
Derivative assets: (1)	2,670	3,569
Embedded derivatives within asset host contracts (2)	219	283
Separate account assets	107,522	103,986
Total assets	194,414	191,155
Liabilities [Abstract]
Derivative liabilities: (1)	1,881	2,024
Embedded derivatives within liability host contracts (2)	8,272	7,584
Total liabilities	10,153	9,608
Recurring | Interest rate
Assets [Abstract]
Derivative assets: (1)	948	2,094
Liabilities [Abstract]
Derivative liabilities: (1)	441	200
Recurring | Foreign currency exchange rate
Assets [Abstract]
Derivative assets: (1)	225	207
Liabilities [Abstract]
Derivative liabilities: (1)	84	144
Recurring | Credit
Assets [Abstract]
Derivative assets: (1)	41	41
Liabilities [Abstract]
Derivative liabilities: (1)	2
Recurring | Equity market
Assets [Abstract]
Derivative assets: (1)	1,456	1,227
Liabilities [Abstract]
Derivative liabilities: (1)	1,354	1,680
Recurring | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	37,328	37,276
Recurring | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	11,717	11,375
Recurring | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	9,100	8,464
Recurring | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	8,682	8,219
Recurring | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	6,907	6,697
Recurring | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	4,757	4,555
Recurring | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,350	2,881
Recurring | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	1,870	1,832
Recurring | Level 1
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,264	2,108
Equity securities	21	31
Short-term investments	142	1,669
Derivative assets: (1)	0	0
Embedded derivatives within asset host contracts (2)	0	0
Separate account assets	42	86
Total assets	3,469	3,894
Liabilities [Abstract]
Derivative liabilities: (1)	0	0
Embedded derivatives within liability host contracts (2)	0	0
Total liabilities	0	0
Recurring | Level 1 | Interest rate
Assets [Abstract]
Derivative assets: (1)	0	0
Liabilities [Abstract]
Derivative liabilities: (1)	0	0
Recurring | Level 1 | Foreign currency exchange rate
Assets [Abstract]
Derivative assets: (1)	0	0
Liabilities [Abstract]
Derivative liabilities: (1)	0	0
Recurring | Level 1 | Credit
Assets [Abstract]
Derivative assets: (1)	0	0
Liabilities [Abstract]
Derivative liabilities: (1)	0
Recurring | Level 1 | Equity market
Assets [Abstract]
Derivative assets: (1)	0	0
Liabilities [Abstract]
Derivative liabilities: (1)	0	0
Recurring | Level 1 | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,264	2,108
Recurring | Level 1 | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 2
Assets [Abstract]
Fixed maturity securities, estimated fair value	79,341	78,440
Equity securities	62	99
Short-term investments	64	216
Derivative assets: (1)	2,641	3,540
Embedded derivatives within asset host contracts (2)	0	0
Separate account assets	107,480	103,897
Total assets	189,588	186,192
Liabilities [Abstract]
Derivative liabilities: (1)	1,872	1,997
Embedded derivatives within liability host contracts (2)	0	0
Total liabilities	1,872	1,997
Recurring | Level 2 | Interest rate
Assets [Abstract]
Derivative assets: (1)	948	2,094
Liabilities [Abstract]
Derivative liabilities: (1)	441	200
Recurring | Level 2 | Foreign currency exchange rate
Assets [Abstract]
Derivative assets: (1)	219	206
Liabilities [Abstract]
Derivative liabilities: (1)	84	137
Recurring | Level 2 | Credit
Assets [Abstract]
Derivative assets: (1)	27	27
Liabilities [Abstract]
Derivative liabilities: (1)	0
Recurring | Level 2 | Equity market
Assets [Abstract]
Derivative assets: (1)	1,447	1,213
Liabilities [Abstract]
Derivative liabilities: (1)	1,347	1,660
Recurring | Level 2 | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	36,800	36,789
Recurring | Level 2 | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	11,368	11,178
Recurring | Level 2 | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	5,836	6,356
Recurring | Level 2 | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	8,648	8,197
Recurring | Level 2 | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	6,905	6,692
Recurring | Level 2 | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	4,757	4,555
Recurring | Level 2 | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,169	2,841
Recurring | Level 2 | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	1,858	1,832
Recurring | Level 3
Assets [Abstract]
Fixed maturity securities, estimated fair value	1,106	751
Equity securities	3	3
Short-term investments	0	0
Derivative assets: (1)	29	29
Embedded derivatives within asset host contracts (2)	219	283
Separate account assets	0	3
Total assets	1,357	1,069
Liabilities [Abstract]
Derivative liabilities: (1)	9	27
Embedded derivatives within liability host contracts (2)	8,272	7,584
Total liabilities	8,281	7,611
Recurring | Level 3 | Interest rate
Assets [Abstract]
Derivative assets: (1)	0	0
Liabilities [Abstract]
Derivative liabilities: (1)	0	0
Recurring | Level 3 | Foreign currency exchange rate
Assets [Abstract]
Derivative assets: (1)	6	1
Liabilities [Abstract]
Derivative liabilities: (1)	0	7
Recurring | Level 3 | Credit
Assets [Abstract]
Derivative assets: (1)	14	14
Liabilities [Abstract]
Derivative liabilities: (1)	2
Recurring | Level 3 | Equity market
Assets [Abstract]
Derivative assets: (1)	9	14
Liabilities [Abstract]
Derivative liabilities: (1)	7	20
Recurring | Level 3 | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	528	487
Recurring | Level 3 | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	349	197
Recurring | Level 3 | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 3 | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	34	22
Recurring | Level 3 | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	2	5
Recurring | Level 3 | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 3 | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	181	40
Recurring | Level 3 | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	$ 12	$ 0

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Fair Value (Assets and Liabilities Measured - Quantitative Information) (Details) - Level 3	Jun. 30, 2021	Dec. 31, 2020
Measurement Input, Mortality Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.0003	0.0003
Measurement Input, Mortality Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.1213	0.1213
Measurement Input, Lapse Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.0025	0.0025
Measurement Input, Lapse Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.1500	0.1500
Measurement Input, Utilization Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.0000	0.0000
Measurement Input, Utilization Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.2500	0.2500
Measurement Input, Withdrawal Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.0025	0.0025
Measurement Input, Withdrawal Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.1000	0.1000
Measurement Input, Long Term Equity Volatilities | Minimum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.1666	0.1666
Measurement Input, Long Term Equity Volatilities | Maximum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.2221	0.2221
Measurement Input, Entity Credit Risk | Minimum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	(0.0026)	0.0047
Measurement Input, Entity Credit Risk | Maximum
Fair Value, Option, Quantitative Disclosures
Embedded Derivative Liability, Measurement Input	0.0137	0.0197

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Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Derivatives (2)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	$ 8	$ 50	$ 2	$ 16
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	8	(3)	16	(2)
Total realized/unrealized gains (losses) included in AOCI	10	(11)	9	20
Purchases (7)	0	0	(1)	0
Sales (7)	(6)	(16)	(6)	(14)
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	0	0	0	0
Balance, end of period	20	20	20	20
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	3	3	2	(17)
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	10	(10)	9	20
Net Embedded Derivatives (3)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(6,774)	(4,747)	(7,301)	(4,365)
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	(1,161)	(880)	(496)	(1,113)
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (7)	0	0	0	0
Sales (7)	0	0	0	0
Issuances (7)	0	0	0	0
Settlements (7)	(118)	(177)	(256)	(326)
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	0	0	0	0
Balance, end of period	(8,053)	(5,804)	(8,053)	(5,804)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	(1,139)	(924)	(476)	(1,166)
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	0	0	0	0
Corporate (1)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	667	838	684	457
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	(2)	(1)	(4)
Total realized/unrealized gains (losses) included in AOCI	20	60	(1)	16
Purchases (7)	231	186	327	444
Sales (7)	(12)	(46)	(9)	(45)
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	54	86	54	158
Transfers out of Level 3 (8)	(83)	(228)	(177)	(132)
Balance, end of period	877	894	877	894
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	(1)	(1)
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	20	58	(1)	15
Structured Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	126	218	67	117
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	1	3	1	0
Purchases (7)	163	85	181	104
Sales (7)	(9)	(1)	(14)	(6)
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	26	0	30
Transfers out of Level 3 (8)	(64)	(158)	(18)	(72)
Balance, end of period	217	173	217	173
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	1	3	1	0
State and Political Subdivision
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	72	0	73
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (7)	0	0	0	0
Sales (7)	0	0	0	0
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	0	(72)	0	(73)
Balance, end of period	0	0	0	0
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	0	0	0	0
Foreign government
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	7	0	0
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (7)	12	0	12	0
Sales (7)	0	0	0	0
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	0	(7)	0	0
Balance, end of period	12	0	12	0
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	0	0	0	0
Equity Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	3	4	3	8
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (7)	0	0	0	0
Sales (7)	0	0	0	0
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	0	(1)	0	(5)
Balance, end of period	3	3	3	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	0	0	0	0
Short-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	2	0	5
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (7)	0	0	0	0
Sales (7)	0	(2)	0	(5)
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	0	0	0	0
Balance, end of period	0	0	0	0
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	0	0	0	0
Separate Account Assets (4)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	2	4	3	3
Total realized/unrealized gains (losses) included in net income (loss) (5) (6)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (7)	0	0	0	0
Sales (7)	0	0	0	0
Issuances (7)	0	0	0	0
Settlements (7)	0	0	0	0
Transfers into Level 3 (8)	0	0	0	0
Transfers out of Level 3 (8)	(2)	(1)	(3)	0
Balance, end of period	0	3	0	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at end of period	$ 0	$ 0	$ 0	$ 0

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Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets
Policy loans	$ 856	$ 884
Liabilities
Separate account liabilities	107,522	103,986
Carrying Value
Assets
Mortgage loans	16,652	15,722
Policy loans	856	884
Other invested assets	78	54
Premiums, reinsurance and other receivables	3,180	3,114
Liabilities
Policyholder account balances	20,358	17,361
Long-term debt	842	843
Other liabilities	1,260	891
Separate account liabilities	1,413	1,331
Estimated Fair Value
Assets
Mortgage loans	17,605	16,836
Policy loans	1,026	1,356
Other invested assets	78	54
Premiums, reinsurance and other receivables	3,978	3,898
Liabilities
Policyholder account balances	22,060	18,962
Long-term debt	1,124	1,070
Other liabilities	1,277	908
Separate account liabilities	1,413	1,331
Estimated Fair Value | Level 1
Assets
Mortgage loans	0	0
Policy loans	0	0
Other invested assets	0	0
Premiums, reinsurance and other receivables	0	0
Liabilities
Policyholder account balances	0	0
Long-term debt	0	0
Other liabilities	0	0
Separate account liabilities	0	0
Estimated Fair Value | Level 2
Assets
Mortgage loans	0	0
Policy loans	460	475
Other invested assets	62	39
Premiums, reinsurance and other receivables	118	90
Liabilities
Policyholder account balances	0	0
Long-term debt	37	39
Other liabilities	434	121
Separate account liabilities	1,413	1,331
Estimated Fair Value | Level 3
Assets
Mortgage loans	17,605	16,836
Policy loans	566	881
Other invested assets	16	15
Premiums, reinsurance and other receivables	3,860	3,808
Liabilities
Policyholder account balances	22,060	18,962
Long-term debt	1,087	1,031
Other liabilities	843	787
Separate account liabilities	$ 0	$ 0

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Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 3,185	$ 2,445	$ 5,421	$ 3,215
OCI before reclassifications	1,400	2,732	(1,412)	1,770
Deferred income tax benefit (expense)	(295)	(582)	296	(380)
AOCI before reclassifications, net of income tax	4,290	4,595	4,305	4,605
Amounts reclassified from AOCI	28	19	9	7
Deferred income tax benefit (expense)	(6)	(4)	(2)	(2)
Amounts reclassified from AOCI, net of income tax	22	15	7	5
Balance, end of period	4,312	4,610	4,312	4,610
Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	3,150	1,867	5,321	3,066
OCI before reclassifications	1,284	2,865	(1,453)	1,356
Deferred income tax benefit (expense)	(270)	(602)	305	(284)
AOCI before reclassifications, net of income tax	4,164	4,130	4,173	4,138
Amounts reclassified from AOCI	30	23	18	13
Deferred income tax benefit (expense)	(7)	(5)	(4)	(3)
Amounts reclassified from AOCI, net of income tax	23	18	14	10
Balance, end of period	4,187	4,148	4,187	4,148
Unrealized Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	49	598	108	163
OCI before reclassifications	114	(139)	47	414
Deferred income tax benefit (expense)	(24)	29	(10)	(87)
AOCI before reclassifications, net of income tax	139	488	145	490
Amounts reclassified from AOCI	(2)	(4)	(9)	(6)
Deferred income tax benefit (expense)	1	1	2	1
Amounts reclassified from AOCI, net of income tax	(1)	(3)	(7)	(5)
Balance, end of period	138	485	138	485
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(14)	(20)	(8)	(14)
OCI before reclassifications	2	6	(6)	0
Deferred income tax benefit (expense)	(1)	(9)	1	(9)
AOCI before reclassifications, net of income tax	(13)	(23)	(13)	(23)
Amounts reclassified from AOCI	0	0	0	0
Deferred income tax benefit (expense)	0	0	0	0
Amounts reclassified from AOCI, net of income tax	0	0	0	0
Balance, end of period	$ (13)	$ (23)	$ (13)	(23)
Cumulative effect of change in accounting principle, net of income tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period				$ 3

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Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	$ (33)		$ (33)		$ (21)	$ (52)
Net investment income	1,196		635		2,365	1,531
Net derivative gains (losses)	(718)		(2,650)		(2,105)	4,097
Income (loss) before provision for income tax	(31)		(2,549)		(625)	3,555
Income tax (expense) benefit	23		552		164	(713)
Net income (loss)	(8)	$ (453)	(1,997)	$ 4,839	(461)	2,842
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	(22)		(15)		(7)	(5)
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses):
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	(31)		(19)		(16)	(7)
Net derivative gains (losses)	1		(4)		(2)	(6)
Income (loss) before provision for income tax	(30)		(23)		(18)	(13)
Income tax (expense) benefit	7		5		4	3
Net income (loss)	(23)		(18)		(14)	(10)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives - cash flow hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) before provision for income tax	2		4		9	6
Income tax (expense) benefit	(1)		(1)		(2)	(1)
Net income (loss)	1		3		7	5
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives - cash flow hedges: | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income	1		0		2	1
Net derivative gains (losses)	0		0		1	1
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives - cash flow hedges: | Foreign currency swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	$ 1		$ 4		$ 6	$ 4

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Equity (Capital Transactions - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020
Equity [Abstract]
Dividend to parent accounted for as a return of capital	$ 250		$ 300
Dividends paid to parent	$ 250	$ 500	$ 300

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Other Revenues and Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Compensation	$ 89	$ 82	$ 174	$ 155
Contracted services and other labor costs	62	69	115	130
Transition services agreements	29	15	59	51
Establishment costs	28	53	44	93
Premium and other taxes, licenses and fees	11	12	24	23
Volume related costs, excluding compensation, net of DAC capitalization	170	150	328	272
Interest expense on debt	16	17	33	34
Other	60	49	112	99
Total other expenses	$ 465	$ 447	$ 889	$ 857

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Other Revenues and Other Expenses (Other Revenues - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Distribution service
Revenue from Contract with Customer, Including Assessed Tax	$ 66	$ 55	$ 131	$ 114

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Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Cumulative maximum indemnities and guarantees contractual limitation	$ 118
Liabilities for indemnities, guarantees and commitments	1	$ 1
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Indemnities And Guarantees Contractual Limitation Range	6
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Loss Contingency, Range of Possible Loss, Portion Not Accrued	10
Indemnities And Guarantees Contractual Limitation Range	112
Maximum | Non-litigation loss
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Loss Contingency, Range of Possible Loss, Portion Not Accrued	125
Mortgage Loan Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	646	210
Commitments to Fund Partnership Investments and Private Corporate Bond Investments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 2,200	$ 1,700

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Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - Affiliated Entity - Assumed - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Premiums:
Reinsurance assumed	$ 0	$ 0	$ 2	$ 0
Universal life and investment-type product policy fees:
Reinsurance assumed	1	2	3	4
Other revenues:
Reinsurance assumed	0	1	1	1
Policyholder benefits and claims:
Reinsurance assumed	4	6	11	23
Other Expenses
Reinsurance assumed	$ (9)	$ (7)	$ (13)	$ (12)

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Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets:
Premiums, reinsurance and other receivables (net of allowance for credit losses)	$ 15,682	$ 15,721
Liabilities:
Policyholder account balances	59,668	53,946
Other liabilities	4,230	4,210
Affiliated Entity | Assumed
Assets:
Premiums, reinsurance and other receivables (net of allowance for credit losses)	25	24
Liabilities:
Future policy benefits	118	120
Policyholder account balances	471	596
Other policy-related balances	13	10
Other liabilities	$ 13	$ 9

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Related Party Transactions (Related Party Reinsurance Transactions - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Embedded Derivative, Fair Value of Embedded Derivative Liability	$ 8,272		$ 8,272		$ 7,584
Affiliated Entity | Assumed guaranteed minimum benefits
Embedded Derivative, Fair Value of Embedded Derivative Liability	471		471		$ 596
Embedded Derivatives Gains (Losses)	$ (50)	$ 30	$ 126	$ (236)

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Related Party Transactions (Shared Service and Overhead Allocations - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Insurance Commissions and Fees	$ 761	$ 697	$ 1,504	$ 1,398
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	256	261	484	517
Related Party Transaction, Amounts of Transaction	0	20	0	42
Affiliated Entity
Insurance Commissions and Fees	59	$ 50	116	$ 103
All Services and Transactions Except Broker Dealer Activities [Member]
Due from (to) Related Parties	$ (97)		$ (97)		$ (21)

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Related Party Transactions (Broker Dealer - Narrative) (Details) - Broker Dealer Activities [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue from Related Parties	$ 56	$ 46	$ 111	$ 96
Related Party Transaction, Expenses from Transactions with Related Party	251	$ 197	487	$ 401
Due from Related Parties	$ 18		$ 18		$ 18

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Subsequent Events (Details) $ in Millions	Jul. 26, 2021 USD ($)
Subsequent Event | Brighthouse Reinsurance Company of Delaware
Subsequent Event [Line Items]
Dividend declared	$ 600