GENWORTH FINANCIAL INC, 10-Q filed on 8/1/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Jul. 24, 2018
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Trading Symbol GNW  
Entity Registrant Name GENWORTH FINANCIAL INC  
Entity Central Index Key 0001276520  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   500,679,748
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Assets    
Fixed maturity securities available-for-sale, at fair value $ 60,032 $ 62,525
Equity securities, at fair value 758 820
Commercial mortgage loans 6,480 6,341
Restricted commercial mortgage loans related to securitization entities 90 107
Policy loans 1,872 1,786
Other invested assets 1,650 1,813
Total investments 70,882 73,392
Cash, cash equivalents and restricted cash 2,243 2,875
Accrued investment income 602 644
Deferred acquisition costs 3,086 2,329
Intangible assets and goodwill 354 301
Reinsurance recoverable 17,385 17,569
Other assets 574 453
Deferred tax asset 601 504
Separate account assets 6,750 7,230
Total assets 102,477 105,297
Liabilities and equity    
Future policy benefits 37,913 38,472
Policyholder account balances 23,366 24,195
Liability for policy and contract claims 9,665 9,594
Unearned premiums 3,669 3,967
Other liabilities 1,965 1,910
Borrowings related to securitization entities 28 40
Non-recourse funding obligations 310 310
Long-term borrowings 4,047 4,224
Deferred tax liability 23 27
Separate account liabilities 6,750 7,230
Total liabilities 87,736 89,969
Commitments and contingencies
Equity:    
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 589 million and 588 million shares issued as of June 30, 2018 and December 31, 2017, respectively; 501 million and 499 million shares outstanding as of June 30, 2018 and December 31, 2017, respectively 1 1
Additional paid-incapital 11,981 11,977
Net unrealized investment gains (losses):    
Net unrealized gains (losses) on securities not other-than-temporarily impaired 726 1,075
Net unrealized gains (losses) on other-than-temporarily impaired securities 10 10
Net unrealized investment gains (losses) 736 1,085
Derivatives qualifying as hedges 1,863 2,065
Foreign currency translation and other adjustments (272) (123)
Total accumulated other comprehensive income (loss) 2,327 3,027
Retained earnings 1,301 1,113
Treasury stock, at cost (88 million shares as of June 30, 2018 and December 31, 2017) (2,700) (2,700)
Total Genworth Financial, Inc.'s stockholders' equity 12,910 13,418
Noncontrolling interests 1,831 1,910
Total equity 14,741 15,328
Total liabilities and equity $ 102,477 $ 105,297
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Class A common stock, par value $ 0.001 $ 0.001
Class A common stock, shares authorized 1,500,000,000 1,500,000,000
Class A common stock, shares issued 589,000,000 588,000,000
Class A common stock, shares outstanding 501,000,000 499,000,000
Treasury stock, shares 88,000,000 88,000,000
v3.10.0.1
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues:        
Premiums $ 1,136 $ 1,111 $ 2,276 $ 2,247
Net investment income 828 801 1,632 1,591
Net investment gains (losses) (14) 101 (45) 135
Total revenues 2,159 2,223 4,274 4,394
Benefits and expenses:        
Benefits and other changes in policy reserves 1,205 1,206 2,516 2,452
Interest credited 152 163 308 330
Acquisition and operating expenses, net of deferrals 253 240 493 510
Amortization of deferred acquisition costs and intangibles 112 139 216 233
Interest expense 77 74 153 136
Total benefits and expenses 1,799 1,822 3,686 3,661
Income from continuing operations before income taxes 360 401 588 733
Provision for income taxes 111 130 174 246
Income from continuing operations 249 271 414 487
Loss from discontinued operations, net of taxes 0 0 0 0
Net income 249 271 414 487
Less: net income attributable to noncontrolling interests 59 69 112 130
Net income available to Genworth Financial, Inc.'s common stockholders $ 190 $ 202 $ 302 $ 357
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders per share:        
Basic $ 0.38 $ 0.40 $ 0.60 $ 0.72
Diluted 0.38 0.40 0.60 0.71
Net income available to Genworth Financial, Inc.'s common stockholders per share:        
Basic 0.38 0.40 0.60 0.72
Diluted $ 0.38 $ 0.40 $ 0.60 $ 0.71
Weighted-average common shares outstanding:        
Basic 500.6 499.0 500.1 498.8
Diluted 502.6 501.2 502.6 501.1
Supplemental disclosures:        
Total other-than-temporary impairments $ 0 $ (2) $ 0 $ (3)
Portion of other-than-temporary impairments included in other comprehensive income (loss) 0 0 0 0
Net other-than-temporary impairments 0 (2) 0 (3)
Other investments gains (losses) (14) 103 (45) 138
Net investment gains (losses) (14) 101 (45) 135
Policy fees and other income        
Revenues:        
Revenue from contract with customer including assessed tax $ 209 $ 210 $ 411 $ 421
v3.10.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Net income $ 249 $ 271 $ 414 $ 487
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities not other-than-temporarily impaired (185) (72) (526) (84)
Net unrealized gains (losses) on other-than-temporarily impaired securities (2) 0 (2) 1
Derivatives qualifying as hedges (64) 28 (216) (21)
Foreign currency translation and other adjustments (98) 61 (185) 180
Total other comprehensive income (loss) (349) 17 (929) 76
Total comprehensive income (loss) (100) 288 (515) 563
Less: comprehensive income attributable to noncontrolling interests 10 87 14 205
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders $ (110) $ 201 $ (529) $ 358
v3.10.0.1
Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Common stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Treasury stock, at cost
Total Genworth Financial, Inc.'s stockholders' equity
Noncontrolling interests
Balances, beginning at Dec. 31, 2016 $ 14,467 $ 1 $ 11,962 $ 3,094 $ 287 $ (2,700) $ 12,644 $ 1,823
Cumulative effect of change in accounting, net of taxes 9       9   9  
Comprehensive income (loss):                
Net income 487       357   357 130
Other comprehensive income (loss) net of taxes 76     1     1 75
Total comprehensive income (loss) 563           358 205
Dividends to noncontrolling interests (52)             (52)
Stock-based compensation expense and exercises and other 9   7       7 2
Balances, ending at Jun. 30, 2017 14,996 1 11,969 3,095 653 (2,700) 13,018 1,978
Balances, beginning at Dec. 31, 2017 15,328 1 11,977 3,027 1,113 (2,700) 13,418 1,910
Cumulative effect of change in accounting, net of taxes 17     131 (114)   17  
Repurchase of subsidiary shares (49)             (49)
Comprehensive income (loss):                
Net income 414       302   302 112
Other comprehensive income (loss) net of taxes (929)     (831)     (831) (98)
Total comprehensive income (loss) (515)           (529) 14
Dividends to noncontrolling interests (50)             (50)
Stock-based compensation expense and exercises and other 10   4       4 6
Balances, ending at Jun. 30, 2018 $ 14,741 $ 1 $ 11,981 $ 2,327 $ 1,301 $ (2,700) $ 12,910 $ 1,831
v3.10.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net income $ 414 $ 487
Adjustments to reconcile net income to net cash from operating activities:    
Amortization of fixed maturity securities discounts and premiums (62) (76)
Net investment (gains) losses 45 (135)
Charges assessed to policyholders (359) (365)
Acquisition costs deferred (40) (44)
Amortization of deferred acquisition costs and intangibles 216 233
Deferred income taxes 83 166
Trading securities, limited partnerships and derivative instruments (195) 431
Stock-based compensation expense 16 18
Change in certain assets and liabilities:    
Accrued investment income and other assets (89) (23)
Insurance reserves 691 806
Current tax liabilities (37) (32)
Other liabilities, policy and contract claims and other policy-related balances (122) (158)
Net cash from operating activities 561 1,308
Cash flows used by investing activities:    
Fixed maturity securities 1,979 2,358
Commercial mortgage loans 350 307
Restricted commercial mortgage loans related to securitization entities 16 11
Proceeds from sales of investments:    
Fixed maturity and equity securities 1,920 2,587
Purchases and originations of investments:    
Fixed maturity and equity securities (4,082) (4,733)
Commercial mortgage loans (489) (431)
Other invested assets, net 93 (638)
Policy loans, net 15 21
Payments for business purchased, net of cash acquired 0 (5)
Net cash used by investing activities (198) (523)
Cash flows used by financing activities:    
Deposits to universal life and investment contracts 503 429
Withdrawals from universal life and investment contracts (1,177) (1,091)
Proceeds from issuance of long-term debt 441 0
Repayment and repurchase of long-term debt (597) 0
Repayment of borrowings related to securitization entities (12) (12)
Repurchase of subsidiary shares (49) 0
Dividends paid to noncontrolling interests (50) (52)
Other, net (2) (29)
Net cash used by financing activities (943) (755)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (52) 39
Net change in cash, cash equivalents and restricted cash (632) 69
Cash, cash equivalents and restricted cash at beginning of period 2,875 2,784
Cash, cash equivalents and restricted cash at end of period $ 2,243 $ 2,853
v3.10.0.1
Formation of Genworth and Basis of Presentation
6 Months Ended
Jun. 30, 2018
Formation of Genworth and Basis of Presentation

(1) Formation of Genworth and Basis of Presentation

Genworth Holdings, Inc. (“Genworth Holdings”) (formerly known as Genworth Financial, Inc.) was incorporated in Delaware in 2003 in preparation for an initial public offering (“IPO”) of Genworth’s common stock, which was completed on May 28, 2004. On April 1, 2013, Genworth Holdings completed a holding company reorganization pursuant to which Genworth Holdings became a direct, 100% owned subsidiary of a new public holding company that it had formed. The new public holding company was incorporated in Delaware on December 5, 2012, in connection with the reorganization, and was renamed Genworth Financial, Inc. (“Genworth Financial”) upon the completion of the reorganization.

On October 21, 2016, Genworth Financial entered into an agreement and plan of merger (the “Merger Agreement”) with Asia Pacific Global Capital Co., Ltd. (the “Parent”), a limited liability company incorporated in the People’s Republic of China, and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”). China Oceanwide has agreed to acquire all of our outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth Financial’s stockholders voted on and approved a proposal to adopt the Merger Agreement.

The transaction remains subject to closing conditions, including the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions. Both parties are engaging with the relevant regulators regarding the applications and the pending transaction.

The accompanying unaudited condensed financial statements include on a consolidated basis the accounts of Genworth Financial and the affiliate companies in which it holds a majority voting interest or where it is the primary beneficiary of a variable interest entity (“VIE”). All intercompany accounts and transactions have been eliminated in consolidation.

References to “Genworth,” the “Company,” “we” or “our” in the accompanying unaudited condensed consolidated financial statements and these notes thereto are, unless the context otherwise requires, to Genworth Financial on a consolidated basis.

We operate our business through the following five operating segments:

 

    U.S. Mortgage Insurance. In the United States, we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“flow mortgage insurance”). We selectively provide mortgage insurance on a bulk basis (“bulk mortgage insurance”) with essentially all of our bulk writings being prime-based.

 

    Canada Mortgage Insurance. We offer flow mortgage insurance and also provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk in Canada.

 

    Australia Mortgage Insurance. In Australia, we offer flow mortgage insurance and selectively provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk.

 

    U.S. Life Insurance. We offer long-term care insurance products as well as service traditional life insurance and fixed annuity products in the United States.

 

    Runoff. The Runoff segment includes the results of non-strategic products which have not been actively sold but we continue to service our existing blocks of business. Our non-strategic products primarily include our variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. Institutional products consist of funding agreements and funding agreements backing notes.

In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes contained in our 2017 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation.

v3.10.0.1
Accounting Changes
6 Months Ended
Jun. 30, 2018
Accounting Changes

(2) Accounting Changes

Accounting Pronouncements Recently Adopted

On January 1, 2018, we early adopted new accounting guidance on the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”), or “stranded tax effects.” Under current U.S. GAAP, deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the period that the changes were enacted. This also includes situations in which the related tax effects were originally recognized in other comprehensive income as opposed to income from continuing operations. The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance:

 

     Accumulated other comprehensive income (loss)              

(Amounts in millions)

   Net unrealized
investment
gains (losses)
    Derivatives
qualifying
as hedges
     Foreign currency
translation
and other
adjustments
    Retained
earnings
    Total
stockholders’
equity
 

Deferred taxes:

           

Net unrealized gains on investment securities

   $ 192   $ —        $ —       $ (192   $ —    

Net unrealized gains on derivatives

     —         12      —         (12     —    

Investment in foreign subsidiaries

     (3     —          (46     49     —    

Accrued commission and general expenses

     —         —          (1     1     —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cumulative effect of changes in accounting

   $ 189   $ 12    $ (47   $ (154   $ —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

The accounting for the temporary differences related to investment in foreign subsidiaries recorded in accumulated other comprehensive income (loss) at adoption of the TCJA, were provisional. Therefore, additional reclassification adjustments may be recorded in future periods as tax effects of the TCJA on related temporary differences are finalized. However, no reclassification adjustments were recorded in the second quarter of 2018. Other than those effects related to the TCJA, our policy is to release stranded tax effects from accumulated other comprehensive income (loss) using the portfolio approach for items related to investments and derivatives, and upon disposition of a subsidiary for items related to outside basis differences.

On January 1, 2018, we early adopted new accounting guidance related to the hedge accounting model. The new guidance amends the hedge accounting model to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting and removed the requirements to separately measure and report hedge ineffectiveness. We adopted this new accounting using the modified retrospective method and recognized a gain of $2 million in accumulated other comprehensive income with a corresponding decrease to retained earnings at adoption. This gain was the cumulative amount of hedge ineffectiveness related to active hedges that was previously included in earnings.

On January 1, 2018, we adopted new accounting guidance that clarifies when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification as a liability or equity of the share-based compensation. We adopted this new accounting guidance prospectively and therefore, the guidance did not have any impact at adoption.

On January 1, 2018, we adopted new accounting guidance that clarifies the scope and accounting for gains and losses from the derecognition of nonfinancial assets or an in substance nonfinancial asset that is not a business and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control. We adopted this new accounting guidance using the modified retrospective method, which had no impact on our consolidated financial statements at adoption.

 

On January 1, 2018, we early adopted new accounting guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. We adopted this new accounting guidance prospectively and will apply it to our 2018 goodwill impairment test.

On January 1, 2018, we adopted new accounting guidance related to the classification and presentation of changes in restricted cash. The new guidance requires that changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents be shown in the statements of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively and modified the line item descriptions on our consolidated balance sheets and statements of cash flows in our consolidated financial statements. The other impacts from this new accounting guidance did not have a significant impact on our consolidated financial statements or disclosures.

On January 1, 2018, we adopted new accounting guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements or disclosures at adoption.

On January 1, 2018, we adopted new accounting guidance related to the classification of certain cash payments and cash receipts on our statement of cash flows. The guidance reduces diversity in practice related to eight specific cash flow issues. We adopted this new accounting guidance retrospectively. We will reclassify a $20 million make-whole premium that was incurred in the first quarter of 2016 previously included in the operating activities section of the statement of cash flows, within the line item “other liabilities, policy and contract claims and other policy-related balances” to the financing activities section within the line item “repayment and repurchase of long-term debt” in our 2018 annual consolidated financial statements filed on Form 10-K. The reclassification will result in an increase in net cash used by financing activities and an increase in net cash from operating activities. The remaining specific cash flow issues did not have a significant impact on our consolidated financial statements.

On January 1, 2018, we adopted new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, are measured at fair value with changes in fair value recognized in net income. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with other deferred tax assets. We adopted this new accounting guidance using the modified retrospective method and reclassified, after adjustments for deferred acquisition costs (“DAC”) and other intangible amortization and certain benefit reserves, taxes and noncontrolling interests, $25 million of gains related to equity securities from accumulated other comprehensive income and $17 million of gains related to limited partnerships previously recorded at cost to cumulative effect of change in accounting within retained earnings.

On January 1, 2018, we adopted new accounting guidance related to revenue from contracts with customers. The key principle of the new guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. Insurance contracts are specifically excluded from this new guidance. The Financial Accounting Standards Board (“the FASB”) has clarified the scope that all of our insurance contracts, including mortgage insurance and investment contracts are excluded from the scope of this new guidance. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements at adoption.

Accounting Pronouncements Not Yet Adopted

In June 2018, the FASB issued new guidance related to accounting for nonemployee share-based payments. The guidance aligns the measurement and classification of share-based payments to nonemployees issued in exchange for goods or services with the guidance for share-based payments to employees, with certain exceptions. The guidance is currently effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. While we are still evaluating the full impact, at this time we do not expect any impacts from this new guidance on our consolidated financial statements.

In March 2017, the FASB issued new guidance shortening the amortization period of certain callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. While we are still evaluating the full impact, at this time we do not expect any significant impact from this guidance on our consolidated financial statements.

In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The guidance requires that entities recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value, which would primarily include our commercial mortgage loans and reinsurance receivables. The new guidance retains most of the existing impairment guidance for available-for-sale debt securities but amends the presentation of credit losses to be presented as an allowance as opposed to a write-down and permits the reversal of credit losses when reassessing changes in the credit losses each reporting period. The new guidance is effective for us on January 1, 2020, with early adoption permitted beginning January 1, 2019. Upon adoption, the modified retrospective method will be used and a cumulative effect adjustment in retained earnings as of the beginning of the year of adoption will be recorded. We are in process of evaluating the impact the guidance may have on our consolidated financial statements.

In February 2016, the FASB issued new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-to-use asset and a corresponding liability on the balance sheet. The guidance is effective for us on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the period adopted in the financial statements, with certain practical expedients available, which we are in the processes of evaluating. While we are still evaluating the full impact, at this time we do not expect any significant impact from this guidance on our consolidated financial statements.

 

v3.10.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share

(3) Earnings Per Share

Basic and diluted earnings per share are calculated by dividing each income category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions, except per share amounts)

   2018      2017      2018      2017  

Weighted-average shares used in basic earnings per share calculations

     500.6      499.0      500.1      498.8

Potentially dilutive securities:

           

Stock options, restricted stock units and stock appreciation rights

     2.0      2.2      2.5      2.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted-average shares used in diluted earnings per share calculations

     502.6      501.2      502.6      501.1
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations:

           

Income from continuing operations

   $ 249    $ 271    $ 414    $ 487

Less: income from continuing operations attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

   $ 190    $ 202    $ 302    $ 357
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.72
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.71
  

 

 

    

 

 

    

 

 

    

 

 

 

Loss from discontinued operations:

           

Loss from discontinued operations, net of taxes

   $ —        $ —        $ —        $ —    

Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic per share

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted per share

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income:

           

Income from continuing operations

   $ 249    $ 271    $ 414    $ 487

Loss from discontinued operations, net of taxes

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     249      271      414      487

Less: net income attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 190    $ 202    $ 302    $ 357
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.72
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.71
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

v3.10.0.1
Investments
6 Months Ended
Jun. 30, 2018
Investments

(4) Investments

(a) Net Investment Income

Sources of net investment income were as follows for the periods indicated:

 

    Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

  2018     2017     2018     2017  

Fixed maturity securities—taxable

  $ 651   $ 649   $ 1,286   $ 1,290

Fixed maturity securities—non-taxable

    3     3     6     6

Equity securities

    10     9     20     17

Commercial mortgage loans

    77     76     159     153

Restricted commercial mortgage loans related to securitization entities

    2     2     4     4

Policy loans

    41     39     84     81

Other invested assets

    53     35     92     67

Restricted other invested assets related to securitization entities

    —         1     —         1

Cash, cash equivalents and short-term investments

    14     10     26     16
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment income before expenses and fees

    851     824     1,677     1,635

Expenses and fees

    (23     (23     (45     (44
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

  $ 828   $ 801   $ 1,632   $ 1,591
 

 

 

   

 

 

   

 

 

   

 

 

 

(b) Net Investment Gains (Losses)

The following table sets forth net investment gains (losses) for the periods indicated:

 

    Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

  2018     2017     2018     2017  

Available-for-sale securities:

       

Realized gains

  $ 13   $ 74   $ 20   $ 137

Realized losses

    (21     (11     (37     (45
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gains (losses) on available-for-sale securities

    (8     63     (17     92
 

 

 

   

 

 

   

 

 

   

 

 

 

Impairments:

       

Total other-than-temporary impairments

    —         (2     —         (3

Portion of other-than-temporary impairments included in other comprehensive income (loss)

    —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

 

Net other-than-temporary impairments

    —         (2     —         (3
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gains (losses) on equity securities sold

    8     —         10     —    

Net unrealized gains (losses) on equity securities still held

    3     —         (15     —    

Trading securities

    —         1     —         1

Limited partnerships

    (2     —         5     —    

Commercial mortgage loans

    —         1     —         2

Net gains (losses) related to securitization entities

    —         2     —         4

Derivative instruments (1)

    (15     36     (28     39
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses)

  $ (14   $ 101   $ (45   $ 135
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).

 

We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended June 30, 2018 and 2017 was $640 million and $228 million, respectively, which was approximately 97% and 95%, respectively, of book value. The aggregate fair value of securities sold at a loss during the six months ended June 30, 2018 and 2017 was $1,259 million and $1,104 million, respectively, which was approximately 97% and 96%, respectively, of book value.

The following represents the activity for credit losses recognized in net income on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (“OCI”) as of and for the periods indicated:

 

     As of or for the
three months ended
June 30,
     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Beginning balance

   $ 28    $ 41    $ 32    $ 42

Reductions:

           

Securities sold, paid down or disposed

     (3      (3      (7      (4
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

   $ 25    $ 38    $ 25    $ 38
  

 

 

    

 

 

    

 

 

    

 

 

 

(c) Unrealized Investment Gains and Losses

Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated:

 

(Amounts in millions)

  June 30,
2018
    December 31,
2017
 

Net unrealized gains (losses) on investment securities:

   

Fixed maturity securities

  $ 2,555   $ 5,125

Equity securities

    —         69
 

 

 

   

 

 

 

Subtotal (1)

    2,555     5,194

Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves

    (1,549     (3,451

Income taxes, net

    (230     (583
 

 

 

   

 

 

 

Net unrealized investment gains (losses)

    776     1,160

Less: net unrealized investment gains (losses) attributable to noncontrolling interests

    40     75
 

 

 

   

 

 

 

Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.

  $ 736   $ 1,085
 

 

 

   

 

 

 

 

(1) Excludes foreign exchange.

The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated:

 

     As of or for the
three months ended
June 30,
 

(Amounts in millions)

   2018      2017  

Beginning balance

   $ 917    $ 1,243

Unrealized gains (losses) arising during the period:

     

Unrealized gains (losses) on investment securities

     (905      995

Adjustment to deferred acquisition costs

     467      (741

Adjustment to present value of future profits

     20      (28

Adjustment to sales inducements

     9      (6

Adjustment to benefit reserves

     162      (269

Provision for income taxes

     54      17
  

 

 

    

 

 

 

Change in unrealized gains (losses) on investment securities

     (193      (32

Reclassification adjustments to net investment (gains) losses, net of taxes of $(2) and $21

     6      (40
  

 

 

    

 

 

 

Change in net unrealized investment gains (losses)

     (187      (72

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     (6      (9
  

 

 

    

 

 

 

Ending balance

   $ 736    $ 1,180
  

 

 

    

 

 

 

 

     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2018      2017  

Beginning balance

   $ 1,085    $ 1,262

Cumulative effect of changes in accounting:

     

Stranded tax effects

     189      —    

Recognition and measurement of financial assets and liabilities, net of taxes of $18 and $—

     (25      —    
  

 

 

    

 

 

 

Total cumulative effect of changes in accounting

     164      —    
  

 

 

    

 

 

 

Unrealized gains (losses) arising during the period:

     

Unrealized gains (losses) on investment securities

     (2,586      1,387

Adjustment to deferred acquisition costs

     909      (1,046

Adjustment to present value of future profits

     56      (33

Adjustment to sales inducements

     29      (11

Adjustment to benefit reserves

     902      (337

Provision for income taxes

     149      15
  

 

 

    

 

 

 

Change in unrealized gains (losses) on investment securities

     (541      (25

Reclassification adjustments to net investment (gains) losses, net of taxes of $(3) and $31

     13      (58
  

 

 

    

 

 

 

Change in net unrealized investment gains (losses)

     (528      (83

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     (15      (1
  

 

 

    

 

 

 

Ending balance

   $ 736    $ 1,180
  

 

 

    

 

 

 

 

(d) Fixed Maturity and Equity Securities

As of June 30, 2018, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows:

 

          Gross unrealized gains     Gross unrealized losses        

(Amounts in millions)

  Amortized
cost or
cost
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Fair
value
 

Fixed maturity securities:

           

U.S. government, agencies and government-sponsored enterprises

  $ 4,733   $ 632   $ —       $ (12   $ —       $ 5,353

State and political subdivisions

    2,699     195     —         (39     —         2,855

Non-U.S. government

    2,347     69     —         (36     —         2,380

U.S. corporate:

           

Utilities

    4,550     395     —         (66     —         4,879

Energy

    2,160     139     —         (29     —         2,270

Finance and insurance

    6,095     288     —         (108     —         6,275

Consumer—non-cyclical

    4,298     323     —         (80     —         4,541

Technology and communications

    2,709     133     —         (61     —         2,781

Industrial

    1,244     59     —         (20     —         1,283

Capital goods

    2,216     185     —         (40     —         2,361

Consumer—cyclical

    1,538     66     —         (31     —         1,573

Transportation

    1,200     83     —         (31     —         1,252

Other

    337     18     —         (1     —         354
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    26,347     1,689     —         (467     —         27,569
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

           

Utilities

    962     22     —         (22     —         962

Energy

    1,316     101     —         (18     —         1,399

Finance and insurance

    2,471     102     —         (36     —         2,537

Consumer—non-cyclical

    709     11     —         (18     —         702

Technology and communications

    992     30     —         (15     —         1,007

Industrial

    943     46     —         (12     —         977

Capital goods

    603     15     —         (7     —         611

Consumer—cyclical

    527     2     —         (7     —         522

Transportation

    690     48     —         (11     —         727

Other

    2,454     128     —         (24     —         2,558
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    11,667     505     —         (170     —         12,002
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    3,426     156     13     (28     —         3,567

Commercial mortgage-backed

    3,387     46     —         (84     —         3,349

Other asset-backed

    2,966     7     1     (17     —         2,957
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total available-for-sale fixed maturity securities

  $ 57,572   $ 3,299   $ 14   $ (853   $ —       $ 60,032
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

As of December 31, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

 

          Gross unrealized gains     Gross unrealized losses        

(Amounts in millions)

  Amortized
cost or
cost
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Fair
value
 

Fixed maturity securities:

           

U.S. government, agencies and government-sponsored enterprises

  $ 4,681   $ 870   $ —       $ (3   $ —       $ 5,548

State and political subdivisions

    2,678     270     —         (22     —         2,926

Non-U.S. government

    2,147     106     —         (20     —         2,233

U.S. corporate:

           

Utilities

    4,396     611     —         (9     —         4,998

Energy

    2,239     227     —         (8     —         2,458

Finance and insurance

    5,984     556     —         (12     —         6,528

Consumer—non-cyclical

    4,314     530     —         (13     —         4,831

Technology and communications

    2,665     192     —         (12     —         2,845

Industrial

    1,241     106     —         (1     —         1,346

Capital goods

    2,087     273     —         (5     —         2,355

Consumer—cyclical

    1,493     116     —         (4     —         1,605

Transportation

    1,160     134     —         (3     —         1,291

Other

    355     25     —         (1     —         379
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    25,934     2,770     —         (68     —         28,636
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

           

Utilities

    979     42     —         (4     —         1,017

Energy

    1,337     158     —         (5     —         1,490

Finance and insurance

    2,567     174     —         (6     —         2,735

Consumer—non-cyclical

    686     30     —         (4     —         712

Technology and communications

    913     71     —         (2     —         982

Industrial

    958     88     —         (2     —         1,044

Capital goods

    614     33     —         (2     —         645

Consumer—cyclical

    532     9     —         (1     —         540

Transportation

    656     68     —         (3     —         721

Other

    2,536     193     —         (4     —         2,725
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    11,778     866     —         (33     —         12,611
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    3,831     223     14     (11     —         4,057

Commercial mortgage-backed

    3,387     94     2     (37     —         3,446

Other asset-backed

    3,056     17     1     (6     —         3,068
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    57,492     5,216     17     (200     —         62,525

Equity securities

    756     72     —         (8     —         820
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total available-for-sale securities

  $ 58,248   $ 5,288   $ 17   $ (208   $ —       $ 63,345
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of June 30, 2018:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

Fixed maturity securities:

                 

U.S. government, agencies and government-sponsored enterprises

  $ 314   $ (6     35   $ 84   $ (6 )       5   $ 398   $ (12 )       40

State and political subdivisions

    482     (13     98     318     (26 )       41     800     (39 )       139

Non-U.S. government

    649     (18     85     418     (18 )       25     1,067     (36 )       110

U.S. corporate

    9,473     (354     1,322     1,215     (113 )       167     10,688     (467 )       1,489

Non-U.S. corporate

    4,146     (126     574     697     (44 )       96     4,843     (170 )       670

Residential mortgage-backed

    866     (19     133     321     (9 )       62     1,187     (28 )       195

Commercial mortgage-backed

    1,159     (29     168     590     (55 )       87     1,749     (84 )       255

Other asset-backed

    1,654     (14     301     194     (3 )       54     1,848     (17 )       355
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for fixed maturity securities in an unrealized loss position

  $ 18,743   $ (579     2,716   $ 3,837   $ (274     537     $ 22,580   $ (853     3,253
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Below cost:

                 

<20% Below cost

  $ 18,743   $ (579     2,714   $ 3,828   $ (270     533   $ 22,571   $ (849     3,247

20%-50% Below cost

    —         —         2     9     (4 )       4     9     (4 )       6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for fixed maturity securities in an unrealized loss position

  $ 18,743   $ (579     2,716   $ 3,837   $ (274     537   $ 22,580   $ (853     3,253
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment grade

  $ 17,627   $ (535     2,555   $ 3,704   $ (261     508   $ 21,331   $ (796     3,063

Below investment grade

    1,116     (44     161     133     (13 )       29     1,249     (57 )       190
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for fixed maturity securities in an unrealized loss position

  $ 18,743   $ (579     2,716   $ 3,837   $ (274     537   $ 22,580   $ (853     3,253
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of June 30, 2018:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

U.S. corporate:

                 

Utilities

  $ 1,187   $ (46     185   $ 214   $ (20     35   $ 1,401   $ (66     220

Energy

    639     (19     102     119     (10     12     758     (29     114

Finance and insurance

    2,596     (90     366     243     (18     32     2,839     (108     398

Consumer—non-cyclical

    1,579     (61     194     188     (19     23     1,767     (80     217

Technology and communications

    1,111     (42     142     159     (19     21     1,270     (61     163

Industrial

    416     (15     61     55     (5     7     471     (20     68

Capital goods

    717     (32     94     64     (8     11     781     (40     105

Consumer—cyclical

    668     (24     107     86     (7     11     754     (31     118

Transportation

    492     (24     67     73     (7     14     565     (31     81

Other

    68     (1     4     14     —         1     82     (1     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, U.S. corporate securities

    9,473     (354     1,322     1,215     (113     167     10,688     (467     1,489
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                 

Utilities

    359     (14     48     81     (8     10     440     (22     58

Energy

    346     (12     48     98     (6     12     444     (18     60

Finance and insurance

    1,007     (28     143     150     (8     25     1,157     (36     168

Consumer—non-cyclical

    323     (12     37     57     (6     5     380     (18     42

Technology and communications

    466     (13     65     23     (2     4     489     (15     69

Industrial

    280     (9     41     34     (3     4     314     (12     45

Capital goods

    227     (6     27     29     (1     4     256     (7     31

Consumer—cyclical

    283     (7     36     28     —         7     311     (7     43

Transportation

    206     (6     24     64     (5     8     270     (11     32

Other

    649     (19     105     133     (5     17     782     (24     122
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, non-U.S. corporate securities

    4,146     (126     574     697     (44     96     4,843     (170     670
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for corporate securities in an unrealized loss position

  $ 13,619   $ (480     1,896   $ 1,912   $ (157     263   $ 15,531   $ (637     2,159
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost.

 

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2017:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

Fixed maturity securities:

                 

U.S. government, agencies and government-sponsored enterprises

  $ 78   $ (1     21   $ 94   $ (2 )       7   $ 172   $ (3 )       28

State and political subdivisions

    125     (1     35     327     (21 )       42     452     (22 )       77

Non-U.S. government

    583     (7     26     239     (13 )       20     822     (20 )       46

U.S. corporate

    1,871     (26     296     1,347     (42 )       190     3,218     (68 )       486

Non-U.S. corporate

    1,323     (12     217     548     (21 )       77     1,871     (33 )       294

Residential mortgage-backed

    707     (7     81     130     (4 )       46     837     (11 )       127

Commercial mortgage-backed

    476     (4     69     646     (33 )       90     1,122     (37 )       159

Other asset-backed

    853     (4     160     230     (2 )       57     1,083     (6 )       217
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, fixed maturity securities

    6,016     (62     905     3,561     (138 )       529     9,577     (200 )       1,434

Equity securities

    74     (3     134     100     (5 )       58     174     (8 )       192
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for securities in an unrealized loss position

  $ 6,090   $ (65     1,039   $ 3,661   $ (143     587   $ 9,751   $ (208     1,626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Below cost—fixed maturity securities:

                 

<20% Below cost

  $ 6,016   $ (62     905   $ 3,555   $ (136 )       526   $ 9,571   $ (198 )       1,431

20%-50% Below cost

    —         —         —         6     (2 )       3     6     (2 )       3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    6,016     (62     905     3,561     (138 )       529     9,577     (200 )       1,434
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Below cost—equity securities:

                 

<20% Below cost

    74     (3     134     100     (5 )       58     174     (8 )       192
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity securities

    74     (3     134     100     (5 )       58     174     (8 )       192
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for securities in an unrealized loss position

  $ 6,090   $ (65     1,039   $ 3,661   $ (143     587   $ 9,751   $ (208     1,626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment grade

  $ 5,867   $ (55     898   $ 3,488   $ (135     528   $ 9,355   $ (190     1,426

Below investment grade

    223     (10     141     173     (8 )       59     396     (18 )       200
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for securities in an unrealized loss position

  $ 6,090   $ (65     1,039   $ 3,661   $ (143     587   $ 9,751   $ (208     1,626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2017:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

U.S. corporate:

                 

Utilities

  $ 181   $ (2     33   $ 219   $ (7     36   $ 400   $ (9     69

Energy

    106     (1     22     140     (7     15     246     (8     37

Finance and insurance

    626     (6     91     222     (6     30     848     (12     121

Consumer—non-cyclical

    299     (7     46     221     (6     31     520     (13     77

Technology and communications

    217     (4     32     210     (8     29     427     (12     61

Industrial

    —         —         —         62     (1     9     62     (1     9

Capital goods

    176     (2     25     81     (3     14     257     (5     39

Consumer—cyclical

    137     (2     24     95     (2     13     232     (4     37

Transportation

    117     (1     21     97     (2     13     214     (3     34

Other

    12     (1     2     —         —         —         12     (1     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, U.S. corporate securities

    1,871     (26     296     1,347     (42     190     3,218     (68     486
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                 

Utilities

    113     (1     23     72     (3     8     185     (4     31

Energy

    118     (2     19     74     (3     12     192     (5     31

Finance and insurance

    347     (3     56     117     (3     19     464     (6     75

Consumer—non-cyclical

    69     (1     11     60     (3     6     129     (4     17

Technology and communications

    107     (1     18     30     (1     6     137     (2     24

Industrial

    52     —         9     38     (2     5     90     (2     14

Capital goods

    54     —         11     46     (2     3     100     (2     14

Consumer—cyclical

    131     (1     21     —         —         —         131     (1     21

Transportation

    47     (1     7     64     (2     8     111     (3     15

Other

    285     (2     42     47     (2     10     332     (4     52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, non-U.S. corporate securities

    1,323     (12     217     548     (21     77     1,871     (33     294
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for corporate securities in an unrealized loss position

  $ 3,194   $ (38     513   $ 1,895   $ (63     267   $ 5,089   $ (101     780
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The scheduled maturity distribution of fixed maturity securities as of June 30, 2018 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Amounts in millions)

   Amortized
cost or
cost
     Fair
value
 

Due one year or less

   $ 1,692    $ 1,701

Due after one year through five years

     11,006      11,149

Due after five years through ten years

     12,517      12,601

Due after ten years

     22,578      24,708
  

 

 

    

 

 

 

Subtotal

     47,793      50,159

Residential mortgage-backed

     3,426      3,567

Commercial mortgage-backed

     3,387      3,349

Other asset-backed

     2,966      2,957
  

 

 

    

 

 

 

Total

   $ 57,572    $ 60,032
  

 

 

    

 

 

 

As of June 30, 2018, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 22%, 15% and 13%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio.

As of June 30, 2018, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of stockholders’ equity.

(e) Commercial Mortgage Loans

Our mortgage loans are collateralized by commercial properties, including multi-family residential buildings. The carrying value of commercial mortgage loans is stated at original cost net of principal payments, amortization and allowance for loan losses.

We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated:

 

     June 30, 2018     December 31, 2017  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

        

Retail

   $ 2,375     37   $ 2,239     35

Industrial

     1,644     25     1,628     26

Office

     1,482     23     1,510     24

Apartments

     474     7     478     8

Mixed use

     237     4     223     3

Other

     280     4     275     4
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     6,492     100     6,353     100
  

 

 

   

 

 

   

 

 

   

 

 

 

Unamortized balance of loan origination fees and costs

     (3       (3  

Allowance for losses

     (9       (9  
  

 

 

     

 

 

   

Total

   $ 6,480     $ 6,341  
  

 

 

     

 

 

   

 

     June 30, 2018     December 31, 2017  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Geographic region:

        

South Atlantic

   $ 1,669     26   $ 1,625     26

Pacific

     1,652     25     1,622     26

Middle Atlantic

     926     14     927     14

Mountain

     617     10     556     9

West North Central

     453     7     446     7

East North Central

     399     6     394     6

West South Central

     360     6     336     5

East South Central

     214     3     208     3

New England

     202     3     239     4
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     6,492     100     6,353     100
  

 

 

   

 

 

   

 

 

   

 

 

 

Unamortized balance of loan origination fees and costs

     (3       (3  

Allowance for losses

     (9       (9  
  

 

 

     

 

 

   

Total

   $ 6,480     $ 6,341  
  

 

 

     

 

 

   

The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   31 - 60 days
past due
    61 - 90 days
past due
    Greater than
90 days past
due
    Total
past due
    Current     Total  

Property type:

            

Retail

   $ —       $ —       $ —       $ —       $ 2,375   $ 2,375

Industrial

     —         —         —         —         1,644     1,644

Office

     —         —         6     6     1,476     1,482

Apartments

     —         —         —         —         474     474

Mixed use

     —         —         —         —         237     237

Other

     —         —         —         —         280     280
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ —       $ —       $ 6   $ 6   $ 6,486   $ 6,492
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total commercial mortgage loans

     —       —       —       —       100     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     December 31, 2017  

(Amounts in millions)

   31 - 60 days
past due
    61 - 90 days
past due
    Greater than
90 days past
due
    Total
past due
    Current     Total  

Property type:

            

Retail

   $ 5   $ —       $ —       $ 5   $ 2,234   $ 2,239

Industrial

     —         —         —         —         1,628     1,628

Office

     —         —         6     6     1,504     1,510

Apartments

     —         —         —         —         478     478

Mixed use

     —         —         —         —         223     223

Other

     —         —         —         —         275     275
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 5   $ —       $ 6   $ 11   $ 6,342   $ 6,353
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total commercial mortgage loans

     —       —       —       —       100     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

As of June 30, 2018 and December 31, 2017, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. We also did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of June 30, 2018 and December 31, 2017.

We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of June 30, 2018, our commercial mortgage loans greater than 90 days past due included an impaired loan. This loan had an appraised value in excess of the recorded investment and the current recorded investment of this loan is expected to be recoverable.

During the six months ended June 30, 2018 and the year ended December 31, 2017, we modified or extended two and ten commercial mortgage loans, respectively, with a total carrying value of $12 million and $27 million, respectively. All of these modifications or extensions were based on current market interest rates and did not result in any forgiveness in the outstanding principal amount owed by the borrower.

The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated:

 

     Three months ended     Six months ended  
     June 30,     June 30,  

(Amounts in millions)

   2018      2017     2018      2017  

Allowance for credit losses:

          

Beginning balance

   $ 9    $ 11   $ 9    $ 12

Charge-offs

     —          —         —          —    

Recoveries

     —          —         —          —    

Provision

     —          (1     —          (2
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance

   $ 9    $ 10   $ 9    $ 10
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending allowance for individually impaired loans

   $ —        $ —       $ —        $ —    
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending allowance for loans not individually impaired that were evaluated collectively for impairment

   $ 9    $ 10   $ 9    $ 10
  

 

 

    

 

 

   

 

 

    

 

 

 

Recorded investment:

          

Ending balance

   $ 6,492    $ 6,250   $ 6,492    $ 6,250
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance of individually impaired loans

   $ 6    $ —       $ 6    $ —    
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance of loans not individually impaired that were evaluated collectively for impairment

   $ 6,486    $ 6,250   $ 6,486    $ 6,250
  

 

 

    

 

 

   

 

 

    

 

 

 

As of June 30, 2018 and December 31, 2017, we had one individually impaired loan within the office property type with a recorded investment and unpaid principal balance of $6 million. As of June 30, 2017, we had no individually impaired commercial mortgage loans.

In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgage loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower’s liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments.

The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated:

 

    June 30, 2018  

(Amounts in millions)

  0% - 50%     51% - 60%     61% - 75%     76% - 100%     Greater
than 100%
    Total  

Property type:

           

Retail

  $ 848   $ 505   $ 1,022   $ —     $       $ 2,375

Industrial

    676     355     613     —                 1,644

Office

    438     447     589     8             1,482

Apartments

    201     122     146     5             474

Mixed use

    101     54     82     —                 237

Other

    49     42     189     —                 280
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

  $ 2,313   $ 1,525   $ 2,641   $ 13   $       $ 6,492
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

    36     23     41     —       —       100
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average debt service coverage ratio

    2.30     1.85     1.61     1.07              1.91
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    December 31, 2017  

(Amounts in millions)

  0% - 50%     51% - 60%     61% - 75%     76% - 100%     Greater
than 100% 
(1)
    Total  

Property type:

           

Retail

  $ 919   $ 500   $ 820   $ —     $       $ 2,239

Industrial

    731     363     532     2             1,628

Office

    575     386     534     13     2       1,510

Apartments

    226     101     146     5             478

Mixed use

    99     59     65     —                 223

Other

    68     28     179     —                 275
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

  $ 2,618   $ 1,437   $ 2,276   $ 20   $ 2     $ 6,353
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

    41     23     36     —       —       100
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average debt service coverage ratio

    2.65     1.85     1.62     0.62     1.04       2.09
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

 

The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   Less than
1.00
    1.00 - 1.25     1.26 - 1.50     1.51 - 2.00     Greater than
2.00
    Total  

Property type:

            

Retail

   $ 41   $ 216   $ 406   $ 1,137   $ 575   $ 2,375

Industrial

     19     66     208     751     600     1,644

Office

     34     70     178     678     522     1,482

Apartments

     12     18     79     186     179     474

Mixed use

     5     4     38     86     104     237

Other

     1     147     23     87     22     280
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 112   $ 521   $ 932   $ 2,925   $ 2,002   $ 6,492
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

     2     8     14     45     31     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average loan-to-value

     54     60     59     59     44     54
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     December 31, 2017  

(Amounts in millions)

   Less than
1.00
    1.00 - 1.25     1.26 - 1.50     1.51 - 2.00     Greater than
2.00
    Total  

Property type:

            

Retail

   $ 43   $ 235   $ 301   $ 1,020   $ 640   $ 2,239

Industrial

     23     61     174     700     670     1,628

Office

     51     61     157     569     672     1,510

Apartments

           17     77     191     193     478

Mixed use

     2     4     26     86     105     223

Other

     1     149     14     71     40     275
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 120   $ 527   $ 749   $ 2,637   $ 2,320   $ 6,353
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

     2     8     12     42     36     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average loan-to-value

     55     60     58     58     42     52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

As of June 30, 2018 and December 31, 2017, we did not have any floating rate commercial mortgage loans.

(f) Restricted Commercial Mortgage Loans Related To Securitization Entities

We have a consolidated securitization entity that holds commercial mortgage loans that are recorded as restricted commercial mortgage loans related to securitization entities.

(g) Limited Partnerships or Similar Entities

Limited partnerships are accounted for at fair value when our partnership interest is considered minor (generally less than 3% ownership in the limited partnerships) and we exercise no influence over operating and financial policies. If our ownership percentage exceeds that threshold, limited partnerships are accounted for using the equity method of accounting. In applying either method, we use financial information provided by the investee generally on a one-to-three month lag.

Investments in partnerships or similar entities are generally considered VIEs when the equity group lacks sufficient financial control. Generally, these investments are limited partner or non-managing member equity investments in a widely held fund that is sponsored and managed by a reputable asset manager. We are not the primary beneficiary of any VIE investment in a limited partnership or similar entity. As of June 30, 2018 and December 31, 2017, the total carrying value of these investments was $295 million and $222 million, respectively. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. We have not contributed, and do not plan to contribute, any additional financial or other support outside of what is contractually obligated.

v3.10.0.1
Derivative Instruments
6 Months Ended
Jun. 30, 2018
Derivative Instruments

(5) Derivative Instruments

Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange rates and other asset and liability prices. We use derivative instruments to mitigate or reduce certain of these risks. We have established policies for managing each of these risks, including prohibitions on derivatives market-making and other speculative derivatives activities. These policies require the use of derivative instruments in concert with other techniques to reduce or mitigate these risks. While we use derivatives to mitigate or reduce risks, certain derivatives do not meet the accounting requirements to be designated as hedging instruments and are denoted as “derivatives not designated as hedges” in the following disclosures. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as “derivatives designated as hedges,” which include both cash flow and fair value hedges.

The following table sets forth our positions in derivative instruments as of the dates indicated:

 

   

Derivative assets

   

Derivative liabilities

 
        Fair value         Fair value  

(Amounts in millions)

 

Balance sheet

classification

  June 30,
2018 
    December 31,
2017
   

Balance sheet
classification

  June 30,
2018 
    December 31,
2017
 

Derivatives designated as hedges

           

Cash flow hedges:

           

Interest rate swaps

  Other invested assets   $ 49     $ 74   Other liabilities   $ 71     $ 25

Foreign currency swaps

  Other invested assets     2       1   Other liabilities     1       —    
   

 

 

   

 

 

     

 

 

   

 

 

 

Total cash flow hedges

      51       75       72       25
   

 

 

   

 

 

     

 

 

   

 

 

 

Total derivatives designated as hedges

      51       75       72       25
   

 

 

   

 

 

     

 

 

   

 

 

 

Derivatives not designated as hedges

           

Interest rate caps and floors

  Other invested assets     1       —       Other liabilities     —         —    

Foreign currency swaps

  Other invested assets     1       11   Other liabilities     8       —    

Equity index options

  Other invested assets     70       80   Other liabilities     —         —    

Financial futures

  Other invested assets     —         —       Other liabilities     —         —    

Equity return swaps

  Other invested assets     1       —       Other liabilities     —         2

Other foreign currency contracts

  Other invested assets     106       110   Other liabilities     23       20

GMWB embedded derivatives

  Reinsurance recoverable (1)     12       14   Policyholder account balances (2)     235       250

Fixed index annuity embedded derivatives

  Other assets     —         —       Policyholder account balances (3)     420       419

Indexed universal life embedded derivatives

  Reinsurance recoverable     —         —       Policyholder account balances (4)     13       14
   

 

 

   

 

 

     

 

 

   

 

 

 

Total derivatives not designated as hedges

      191       215       699       705
   

 

 

   

 

 

     

 

 

   

 

 

 

Total derivatives

    $ 242     $ 290     $ 771     $ 730
   

 

 

   

 

 

     

 

 

   

 

 

 

 

(1) 

Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities.

(2) 

Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(3) 

Represents the embedded derivatives associated with our fixed index annuity liabilities.

(4) 

Represents the embedded derivatives associated with our indexed universal life liabilities.

 

The fair value of derivative positions presented above was not offset by the respective collateral amounts received or provided under these agreements.

The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for GMWB, fixed index annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated:

 

(Notional in millions)

   Measurement      December 31,
2017
     Additions      Maturities/
terminations
    June 30,
2018
 

Derivatives designated as hedges

             

Cash flow hedges:

             

Interest rate swaps

     Notional      $ 11,155    $ 1,436    $ (1,672   $ 10,919

Foreign currency swaps

     Notional        22      39      —         61
     

 

 

    

 

 

    

 

 

   

 

 

 

Total cash flow hedges

        11,177      1,475      (1,672     10,980
     

 

 

    

 

 

    

 

 

   

 

 

 

Total derivatives designated as hedges

        11,177      1,475      (1,672     10,980
     

 

 

    

 

 

    

 

 

   

 

 

 

Derivatives not designated as hedges

             

Interest rate swaps

     Notional        4,679      —          (5     4,674

Interest rate caps and floors

     Notional        —          805      —         805

Foreign currency swaps

     Notional        349      128      (23     454

Credit default swaps

     Notional        39      —          (19     20

Equity index options

     Notional        2,420      1,246      (927     2,739

Financial futures

     Notional        1,283      2,660      (2,680     1,263

Equity return swaps

     Notional        96      1      (78     19

Other foreign currency contracts

     Notional        3,264      398      (549     3,113
     

 

 

    

 

 

    

 

 

   

 

 

 

Total derivatives not designated as hedges

        12,130      5,238      (4,281     13,087
     

 

 

    

 

 

    

 

 

   

 

 

 

Total derivatives

      $ 23,307    $ 6,713    $ (5,953   $ 24,067
     

 

 

    

 

 

    

 

 

   

 

 

 

(Number of policies)

   Measurement      December 31,
2017
     Additions      Maturities/
terminations
    June 30,
2018
 

Derivatives not designated as hedges

             

GMWB embedded derivatives

     Policies        30,450      —          (1,343     29,107

Fixed index annuity embedded derivatives

     Policies        17,067      —          (255     16,812

Indexed universal life embedded derivatives

     Policies        985      —          (28     957

Cash Flow Hedges

Certain derivative instruments are designated as cash flow hedges. The changes in fair value of these instruments are recorded as a component of OCI. We designate and account for the following as cash flow hedges when they have met the effectiveness requirements: (i) various types of interest rate swaps to convert floating rate investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (v) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (vi) other instruments to hedge the cash flows of various forecasted transactions.

 

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2018:

 

(Amounts in millions)

   Gain (loss)
recognized
in OCI
     Gain (loss)
reclassified
into net
income
from OCI
     Classification of
gain (loss)
reclassified into
net income
 

Interest rate swaps hedging assets

   $ (54    $ 39      Net investment income  

Interest rate swaps hedging liabilities

     5      —          Interest expense  
Foreign currency swaps      1      —          Net investment income  
  

 

 

    

 

 

    

Total

   $ (48    $ 39   
  

 

 

    

 

 

    

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2017:

 

(Amounts in millions)

  Gain (loss)
recognized
in OCI
    Gain (loss)
reclassified
into net
income
from OCI
   

Classification of

gain (loss)

reclassified into

net income

  Gain (loss)
recognized
in net
income 
(1)
   

Classification of

gain (loss)

recognized in

net income

Interest rate swaps hedging assets

  $ 82   $ 31   Net investment income   $ —       Net investment gains (losses)

Interest rate swaps hedging assets

    —         1   Net investment gains (losses)     —       Net investment gains (losses)

Interest rate swaps hedging liabilities

    (6     —       Interest expense     —       Net investment gains (losses)

Foreign currency swaps

    (1     —       Net investment income     —       Net investment gains (losses)
 

 

 

   

 

 

     

 

 

   

Total

  $ 75   $ 32     $ —      
 

 

 

   

 

 

     

 

 

   

 

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2018:

 

(Amounts in millions)

  Gain (loss)
recognized
in OCI
    Gain (loss)
reclassified
into net
income
from OCI
   

Classification of

gain (loss)

reclassified into

net income

Interest rate swaps hedging assets

  $ (227   $ 74   Net investment income

Interest rate swaps hedging assets

    —         5   Net investment gains (losses)

Interest rate swaps hedging liabilities

    22     —       Interest expense
 

 

 

   

 

 

   

Total

  $ (205   $ 79  
 

 

 

   

 

 

   

 

The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2017:

 

(Amounts in millions)

  Gain (loss)
recognized
in OCI
    Gain (loss)
reclassified
into net
income
from OCI
   

Classification of

gain (loss)

reclassified into

net income

  Gain (loss)
recognized
in net
income
(1)
   

Classification of

gain (loss)

recognized in

net income

Interest rate swaps hedging assets

  $ 33   $ 61   Net investment income   $ —       Net investment gains (losses)

Interest rate swaps hedging assets

    —         2   Net investment gains (losses)     —       Net investment gains (losses)

Interest rate swaps hedging liabilities

    (2     —       Interest expense     —       Net investment gains (losses)

Foreign currency swaps

    (1     —       Net investment income     —       Net investment gains (losses)
 

 

 

   

 

 

     

 

 

   

Total

  $ 30   $ 63     $ —      
 

 

 

   

 

 

     

 

 

   

 

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated:

 

     Three months ended
June 30,
 

(Amounts in millions)

   2018     2017  

Derivatives qualifying as effective accounting hedges as of April 1

   $ 1,927   $ 2,036

Current period increases (decreases) in fair value, net of deferred taxes of $9 and $(27)

     (39     48

Reclassification to net (income), net of deferred taxes of $14 and $12

     (25     (20
  

 

 

   

 

 

 

Derivatives qualifying as effective accounting hedges as of June 30

   $ 1,863   $ 2,064
  

 

 

   

 

 

 
     Six months ended
June 30,
 

(Amounts in millions)

   2018     2017  

Derivatives qualifying as effective accounting hedges as of January 1

   $ 2,065   $ 2,085

Cumulative effect of changes in accounting:

    

Stranded tax effects

     12     —    

Changes to the hedge accounting model, net of deferred taxes of $(1) and $—

     2     —    
  

 

 

   

 

 

 

Total cumulative effect of changes in accounting

     14     —    
  

 

 

   

 

 

 

Current period increases (decreases) in fair value, net of deferred taxes of $43 and $(11)

     (165     19

Reclassification to net (income), net of deferred taxes of $28 and $23

     (51     (40
  

 

 

   

 

 

 

Derivatives qualifying as effective accounting hedges as of June 30

   $ 1,863   $ 2,064
  

 

 

   

 

 

 

 

The total of derivatives designated as cash flow hedges of $1,863 million, net of taxes, recorded in stockholders’ equity as of June 30, 2018 is expected to be reclassified to net income in the future, concurrently with and primarily offsetting changes in interest expense and interest income on floating rate instruments and interest income on future fixed rate bond purchases. Of this amount, $104 million, net of taxes, is expected to be reclassified to net income in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the six months ended June 30, 2018, we reclassified $5 million to net income in connection with forecasted transactions that were no longer considered probable of occurring.

Derivatives Not Designated As Hedges

We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed index annuities and indexed universal life; (iv) interest rate swaps and interest rate caps and floors where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency swaps, options and forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries and future dividends or other cash flows from certain foreign subsidiaries to our holding company; and (vii) equity index options to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain variable annuities that are required to be bifurcated as embedded derivatives. We also offer fixed index annuity and indexed universal life products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives.

We also had, prior to the fourth quarter of 2017, derivatives related to securitization entities where we were required to consolidate the related securitization entity as a result of our involvement in the structure. The counterparties for these derivatives typically only had recourse to the securitization entity. The interest rate swaps used for these entities were typically used to effectively convert the interest payments on the assets of the securitization entity to the same basis as the interest rate on the borrowings issued by the securitization entity. Credit default swaps were utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also included a settlement feature that allows the securitization entity to provide the par value of assets in the securitization entity for the amount of any losses incurred under the credit default swap.

 

The following tables provide the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated:

 

     Three months ended
June 30,
   

Classification of gain (loss)
recognized in net income

(Amounts in millions)

   2018     2017  

Interest rate swaps

   $ (2   $ (1   Net investment gains (losses)

Credit default swaps related to securitization entities

     —         2   Net investment gains (losses)

Equity index options

     8     13   Net investment gains (losses)

Financial futures

     (13     9   Net investment gains (losses)

Equity return swaps

     1     (6   Net investment gains (losses)

Other foreign currency contracts

     1     31   Net investment gains (losses)

Foreign currency swaps

     (10     2   Net investment gains (losses)

GMWB embedded derivatives

     13     1   Net investment gains (losses)

Fixed index annuity embedded derivatives

     (15     (16   Net investment gains (losses)

Indexed universal life embedded derivatives

     2     2   Net investment gains (losses)
  

 

 

   

 

 

   

Total derivatives not designated as hedges

   $ (15   $ 37  
  

 

 

   

 

 

   

 

     Six months ended
June 30,
   

Classification of gain (loss)
recognized in net income

(Amounts in millions)

   2018     2017  

Interest rate swaps

   $ (3   $ 1   Net investment gains (losses)

Credit default swaps related to securitization entities

     —         4   Net investment gains (losses)

Equity index options

     (7     26   Net investment gains (losses)

Financial futures

     (37     (8   Net investment gains (losses)

Equity return swaps

     (4     (14   Net investment gains (losses)

Other foreign currency contracts

     9     26   Net investment gains (losses)

Foreign currency swaps

     (18     5   Net investment gains (losses)

GMWB embedded derivatives

     27     34   Net investment gains (losses)

Fixed index annuity embedded derivatives

     (7     (36   Net investment gains (losses)

Indexed universal life embedded derivatives

     7     3   Net investment gains (losses)
  

 

 

   

 

 

   

Total derivatives not designated as hedges

   $ (33   $ 41  
  

 

 

   

 

 

   

Derivative Counterparty Credit Risk

Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity.

 

The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:

 

    June 30, 2018     December 31, 2017  

(Amounts in millions)

  Derivatives
assets
(1)
    Derivatives
liabilities
(2)
    Net
derivatives
    Derivatives
assets
(1)
    Derivatives
liabilities
(2)
    Net
derivatives
 

Amounts presented in the balance sheet:

           

Gross amounts recognized

  $ 234     $ 104     $ 130   $ 278     $ 47     $ 231

Gross amounts offset in the balance sheet

                      —                           —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net amounts presented in the balance sheet

    234       104       130     278       47       231

Gross amounts not offset in the balance sheet:

           

Financial instruments (3)

    (39 )       (39 )             (23 )       (23 )        

Collateral received

    (125 )             (125     (170 )             (170

Collateral pledged

          (427 )       427             (288 )       288

Over collateralization

    1       363       (362              264       (264
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net amount

  $ 71     $ 1     $ 70   $ 85     $     $ 85
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Included $4 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2018 and December 31, 2017, respectively.

(2) 

Included $1 million of accrual on derivatives classified as other liabilities as of June 30, 2018. Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2018 and December 31, 2017.

(3)

Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty.

Except for derivatives related to securitization entities, several of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party’s long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. Beginning in 2018, we have renegotiated with many of our counterparties to remove the credit downgrade provisions from the master swap agreements. If the provisions defined in these agreements had been triggered as of June 30, 2018 and December 31, 2017, we could have been allowed to claim $71 million and $85 million, respectively, or have been required to disburse up to $1 million as of June 30, 2018. The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements.

We actively responded to the risk in our derivatives portfolio arising from our counterparties’ right to terminate their bilateral over-the-counter derivatives transactions with us following the downgrades of our life insurance subsidiaries by Moody’s Investors Service, Inc. and A.M. Best Company, Inc. in February 2018. As of June 30, 2018, no counterparties exercised their rights to terminate or revise the terms of their transactions with us.

Credit Derivatives

We sell protection under single name credit default swaps in combination with purchasing a security to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction.

The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated:

 

     June 30, 2018      December 31, 2017  

(Amounts in millions)

   Notional
value
     Assets      Liabilities      Notional
value
     Assets      Liabilities  

Investment grade

                 

Matures in less than one year

   $ 20    $ —        $ —        $ 39    $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total credit default swaps on single name reference entities

   $ 20    $ —        $ —        $ 39    $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

v3.10.0.1
Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2018
Fair Value of Financial Instruments

(6) Fair Value of Financial Instruments

Assets and liabilities that are reflected in the accompanying unaudited condensed consolidated financial statements at fair value are not included in the following disclosure of fair value. Such items include cash and cash equivalents, short-term investments, investment securities, separate accounts, securities held as collateral and derivative instruments. Apart from certain of our borrowings and certain marketable securities, few of the instruments are actively traded and their fair values must often be determined using models. The fair value estimates are made at a specific point in time, based upon available market information and judgments about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets.

 

The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated:

 

     June 30, 2018  
     Notional
amount
    Carrying
amount
     Fair value  

(Amounts in millions)

        Total      Level 1      Level 2      Level 3  

Assets:

                      

Commercial mortgage loans

   $ (1)    $ 6,480    $ 6,514    $        —        $        —        $ 6,514

Restricted commercial mortgage loans

        (1)      90      96         —             —          96

Other invested assets

        (1)      151      151         —             —          151

Liabilities:

                      

Long-term borrowings

        (1)      4,047      3,727         —             3,577      150

Non-recourse funding obligations

        (1)      310      209         —             —          209

Borrowings related to securitization entities

        (1)      28      28         —             28      —    

Investment contracts

        (1)      13,757      14,007         —             —          14,007

Other firm commitments:

                      

Commitments to fund limited partnerships

     402       —          —             —             —          —    

Commitments to fund bank loan investments

     30       —          —             —             —          —    

Ordinary course of business lending commitments

     119       —          —             —             —          —    
     December 31, 2017  
     Notional
amount
    Carrying
amount
     Fair value  

(Amounts in millions)

        Total      Level 1      Level 2      Level 3  

Assets:

                      

Commercial mortgage loans

   $ (1)    $ 6,341    $ 6,573    $        —        $        —        $ 6,573

Restricted commercial mortgage loans

        (1)      107      116         —             —          116

Other invested assets

        (1)      277      299         —             —          299

Liabilities:

                      

Long-term borrowings

        (1)      4,224      3,725         —             3,566      159

Non-recourse funding obligations

        (1)      310      201         —             —          201

Borrowings related to securitization entities

        (1)      40      41         —             41      —    

Investment contracts

        (1)      14,700      15,123         —             5      15,118

Other firm commitments:

                      

Commitments to fund limited partnerships

     317       —          —             —             —          —    

Commitments to fund bank loan investments

     18       —          —             —             —          —    

Ordinary course of business lending commitments

     168       —          —             —             —          —    

 

(1)  These financial instruments do not have notional amounts.

Recurring Fair Value Measurements

We have fixed maturity, short-term investments, equity securities, limited partnerships, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are carried at fair value. Below is a description of the valuation techniques and inputs used to determine fair value by class of instrument.

 

Limited partnerships

Limited partnerships are valued based on comparable market transactions, discounted future cash flows, quoted market prices and/or estimates using the most recent data available for the underlying instrument. We utilize the net asset value (“NAV”) of the underlying fund statements as a practical expedient for fair value.

Fixed maturity, short-term investments and equity securities

The fair value of fixed maturity, short-term investments and equity securities are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, a security is valued using that market information for similar securities, which is also a market approach. When market information is not available for a specific security or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including mortgage-backed or asset-backed securities), an income approach may be used. In addition, a combination of the results from market and income approaches may be used to estimate fair value. These valuation techniques may change from period to period, based on the relevance and availability of market data.

We utilize certain third-party data providers when determining fair value. We consider information obtained from pricing services as well as broker quotes in our determination of fair value. Additionally, we utilize internal models to determine the valuation of securities using an income approach where the inputs are based on third-party provided market inputs. While we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information. We also use various methods to obtain an understanding of the valuation methodologies and procedures used by third-party data providers to ensure sufficient understanding to evaluate the valuation data received, including an understanding of the assumptions and inputs utilized to determine the appropriate fair value. For pricing services, we analyze the prices provided by our primary pricing services to other readily available pricing services and perform a detailed review of the assumptions and inputs from each pricing service to determine the appropriate fair value when pricing differences exceed certain thresholds. We evaluate changes in fair value that are greater than certain pre-defined thresholds each month to further aid in our review of the accuracy of fair value measurements and our understanding of changes in fair value, with more detailed reviews performed by the asset managers responsible for the related asset class associated with the security being reviewed. A pricing committee provides additional oversight and guidance in the evaluation and review of the pricing methodologies used to value our investment portfolio.

In general, we first obtain valuations from pricing services. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for identical securities are not readily observable and these securities are not typically valued by pricing services. If prices are unavailable from public pricing services we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models.

For pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. Additionally, on a monthly basis we review a sample of securities, examining the pricing service’s assumptions to determine if we agree with the service’s derived price. When available, we also evaluate the prices sampled as compared to other public prices. If a variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. In general, a pricing service does not provide a price for a security if sufficient information is not readily available to determine fair value or if such security is not in the specific sector or class covered by a particular pricing service. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3.

For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction and value all private fixed maturity securities at par that have less than 12 months to maturity. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. To evaluate the reasonableness of the internal model, we review a sample of private fixed maturity securities each month. In that review we compare the modeled prices to the prices of similar public securities in conjunction with analysis on current market indicators. If a pricing variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. At the end of each month, all internally modeled prices are compared to the prior month prices with an evaluation of all securities with a month-over-month change greater than a pre-defined threshold. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating and public bond spread as Level 3. In general, increases (decreases) in credit spreads will decrease (increase) the fair value for our fixed maturity securities.

For broker quotes, we consider the valuation methodology utilized by the third party and analyze a sample each month to assess reasonableness given then-current market conditions. Additionally, for broker quotes on certain structured securities, we validate prices received against other publicly available pricing sources. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements.

For remaining securities priced using internal models, we determine fair value using an income approach. We analyze a sample each month to assess reasonableness given then-current market conditions. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3.

A summary of the inputs used for our fixed maturity, short-term investments and equity securities based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar.

 

Level 1 measurements

Equity securities. The primary inputs to the valuation of exchange-traded equity securities include quoted prices for the identical instrument.

Short-term investments. Short-term investments primarily include commercial paper and other highly liquid debt instruments. The fair value of short-term investments classified as Level 1 is based on quoted prices for the identical instrument.

Separate account assets. The fair value of separate account assets is based on the quoted prices of the underlying fund investments and, therefore, represents Level 1 pricing.

Level 2 measurements

Fixed maturity securities

 

   

Third-party pricing services: In estimating the fair value of fixed maturity securities, approximately 91% of our portfolio is priced using third-party pricing sources. These pricing services utilize industry-standard valuation techniques that include market-based approaches, income-based approaches, a combination of market-based and income-based approaches or other proprietary, internally generated models as part of the valuation processes. These third-party pricing vendors maximize the use of publicly available data inputs to generate valuations for each asset class. Priority and type of inputs used may change frequently as certain inputs may be more direct drivers of valuation at the time of pricing. Examples of significant inputs incorporated by third-party pricing services may include sector and issuer spreads, seasoning, capital structure, security optionality, collateral data, prepayment assumptions, default assumptions, delinquencies, debt covenants, benchmark yields, trade data, dealer quotes, credit ratings, maturity and weighted-average life. We conduct regular meetings with our third-party pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers.

 

The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2018:

 

(Amounts in millions)

  Fair value    

Primary methodologies

 

Significant inputs

U.S. government, agencies and government-sponsored enterprises

  $ 5,353   Price quotes from trading desk, broker feeds   Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread

State and political subdivisions

  $ 2,803   Multi-dimensional attribute-based modeling systems, third-party pricing vendors   Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes

Non-U.S. government

  $ 2,364   Matrix pricing, spread priced to benchmark curves, price quotes from market makers   Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

U.S. corporate

  $ 24,571   Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models   Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports

Non-U.S. corporate

  $ 10,049   Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers   Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

Residential mortgage-backed

  $ 3,533   OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced   Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports

Commercial mortgage-backed

  $ 3,305   Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model   Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports

Other asset-backed

  $ 2,791   Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models   Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports

 

    Internal models: A portion of our non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $16 million, $1,067 million and $567 million, respectively, as of June 30, 2018. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants.

Equity securities. The primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active.

Securities lending collateral

The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services.

Short-term investments

The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by third-party pricing services.

Level 3 measurements

Fixed maturity securities

 

    Internal models: A portion of our U.S. corporate, non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as interest rate yield curve, as well as published credit spreads for similar securities where there are no external ratings of the instrument and include a significant unobservable input. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $3,201 million as of June 30, 2018.

 

    Broker quotes: A portion of our state and political subdivisions, U.S. corporate, non-U.S. corporate, residential mortgage-backed, commercial mortgage-backed and other asset-backed securities are valued using broker quotes. Broker quotes are obtained from third-party providers that have current market knowledge to provide a reasonable price for securities not routinely priced by third-party pricing services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $412 million as of June 30, 2018.

 

Equity securities. The primary inputs to the valuation include broker quotes where the underlying inputs are unobservable and for internal models, structure of the security and issuer rating.

Restricted other invested assets related to securitization entities

We previously held trading securities related to securitization entities that were classified as restricted other invested assets and were carried at fair value. The trading securities represented asset-backed securities. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities. The valuation for trading securities was determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there was observable market information for transactions of the same or similar instruments, which was provided to us by a third-party pricing service and was classified as Level 2. For certain securities that are not actively traded, we determined fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classified these valuations as Level 3.

GMWB embedded derivatives

We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. In addition to these inputs, we also consider risk and expense margins when determining the projected cash flows that would be determined by another market participant. While the risk and expense margins are considered in determining fair value, these inputs do not have a significant impact on the valuation. We determine fair value using an internal model based on the various inputs noted above. The resulting fair value measurement from the model is reviewed by the product actuarial, risk and finance professionals each reporting period with changes in fair value also being compared to changes in derivatives and other instruments used to mitigate changes in fair value from certain market risks, such as equity index volatility and interest rates.

For GMWB liabilities, non-performance risk is integrated into the discount rate. Our discount rate used to determine fair value of our GMWB liabilities includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the GMWB liabilities. As of June 30, 2018 and December 31, 2017, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $50 million and $63 million, respectively.

To determine the appropriate discount rate to reflect the non-performance risk of the GMWB liabilities, we evaluate the non-performance risk in our liabilities based on a hypothetical exit market transaction as there is no exit market for these types of liabilities. A hypothetical exit market can be viewed as a hypothetical transfer of the liability to another similarly rated insurance company which would closely resemble a reinsurance transaction. Another hypothetical exit market transaction can be viewed as a hypothetical transaction from the perspective of the GMWB policyholder. In determining the appropriate discount rate to incorporate non-performance risk of the GMWB liabilities, we also considered the impacts of state guarantees embedded in the related insurance product as a form of inseparable third-party guarantee. We believe that a hypothetical exit market participant would use a similar discount rate as described above to value the liabilities.

For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected equity market volatility with more significance being placed on projected near-term volatility and recent historical data. Given the different attributes and market characteristics of GMWB liabilities compared to equity index options in the derivative market, the equity index volatility assumption for GMWB liabilities may be different from the volatility assumption for equity index options, especially for the longer dated points on the curve.

Equity index and fund correlations are determined based on historical price observations for the fund and equity index.

For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder’s current account value and GMWB benefit.

We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity index volatility increases, the fair value of the GMWB liabilities will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the GMWB liability. Additionally, we consider lapse and utilization assumptions to be significant unobservable inputs. An increase in our lapse assumption would decrease the fair value of the GMWB liability, whereas an increase in our utilization rate would increase the fair value.

Fixed index annuity embedded derivatives

We have fixed indexed annuity products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease.

Indexed universal life embedded derivatives

We have indexed universal life products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease.

 

Borrowings related to securitization entities

We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities will result in an increase in the fair value of these borrowings.

Derivatives

We consider counterparty collateral arrangements and rights of set-off when evaluating our net credit risk exposure to our derivative counterparties. Accordingly, we are permitted to include consideration of these arrangements when determining whether any incremental adjustment should be made for both the counterparty’s and our non-performance risk in measuring fair value for our derivative instruments. As a result of these counterparty arrangements, we determined that any adjustment for credit risk would not be material and we have not recorded any incremental adjustment for our non-performance risk or the non-performance risk of the derivative counterparty for our derivative assets or liabilities. We determine fair value for our derivatives using an income approach with internal models based on relevant market inputs for each derivative instrument. We also compare the fair value determined using our internal model to the valuations provided by our derivative counterparties with any significant differences or changes in valuation being evaluated further by our derivatives professionals that are familiar with the instrument and market inputs used in the valuation.

Interest rate swaps. The valuation of interest rate swaps is determined using an income approach. The primary input into the valuation represents the forward interest rate swap curve, which is generally considered an observable input, and results in the derivative being classified as Level 2. For certain interest rate swaps, the inputs into the valuation also include the total returns of certain bonds that would primarily be considered an observable input and result in the derivative being classified as Level 2.

Interest rate caps and floors. The valuation of interest rate caps and floors is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, forward interest rate volatility and time value component associated with the optionality in the derivative which are generally considered observable inputs and results in the derivatives being classified as Level 2.

Interest rate swaps related to securitization entities. The valuation of interest rate swaps related to securitization entities was determined using an income approach. The primary input into the valuation represented the forward interest rate swap curve, which was generally considered an observable input, and resulted in the derivative being classified as Level 2.

Inflation indexed swaps. The valuation of inflation indexed swaps was determined using an income approach. The primary inputs into the valuation represented the forward interest rate swap curve, the current consumer price index and the forward consumer price index curve, which were generally considered observable inputs, and resulted in the derivative being classified as Level 2.

Foreign currency swaps. The valuation of foreign currency swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and foreign currency exchange rates, both of which are considered an observable input, and results in the derivative being classified as Level 2.

Credit default swaps. We have single name credit default swaps and we previously sold protection under index tranche credit default swaps. For single name credit default swaps, we utilize an income approach to determine fair value based on using current market information for the credit spreads of the reference entity, which is considered observable inputs based on the reference entities of our derivatives and results in these derivatives being classified as Level 2. For index tranche credit default swaps, we utilized an income approach that utilized current market information related to credit spreads and expected defaults and losses associated with the reference entities that comprised the respective index associated with each derivative. There were significant unobservable inputs associated with the timing and amount of losses from the reference entities as well as the timing or amount of losses, if any, that were absorbed by our tranche. Accordingly, the index tranche credit default swaps were classified as Level 3. As credit spreads widened for the underlying issuers comprising the index, the change in our valuation of these credit default swaps were unfavorable.

Credit default swaps related to securitization entities. Credit default swaps related to securitization entities represented customized index tranche credit default swaps and were valued using a similar methodology as described above for index tranche credit default swaps. We determined fair value of these credit default swaps after considering both the valuation methodology described above as well as the valuation provided by the derivative counterparty. In addition to the valuation methodology and inputs described for index tranche credit default swaps, these customized credit default swaps contained a feature that permitted the securitization entity to provide the par value of underlying assets in the securitization entity to settle any losses under the credit default swap. The valuation of this settlement feature was dependent upon the valuation of the underlying assets and the timing and amount of any expected loss on the credit default swap, which was considered a significant unobservable input. Accordingly, these customized index tranche credit default swaps related to securitization entities were classified as Level 3. As credit spreads widened for the underlying issuers comprising the customized index, the change in our valuation of these credit default swaps were unfavorable.

Equity index options. We have equity index options associated with various equity indices. The valuation of equity index options is determined using an income approach. The primary inputs into the valuation represent forward interest rates, equity index volatility, equity index and time value component associated with the optionality in the derivative, which are considered significant unobservable inputs in most instances. The equity index volatility surface is determined based on market information that is not readily observable and is developed based upon inputs received from several third-party sources. Accordingly, these options are classified as Level 3. As equity index volatility increases, our valuation of these options changes favorably.

Financial futures. The fair value of financial futures is based on the closing exchange prices. Accordingly, these financial futures are classified as Level 1. The period end valuation is zero as a result of settling the margins on these contracts on a daily basis.

Equity return swaps. The valuation of equity return swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and underlying equity index values, which are generally considered observable inputs, and results in the derivative being classified as Level 2.

Forward bond purchase commitments. The valuation of forward bond purchase commitments is determined using an income approach. The primary input into the valuation represents the current bond prices and interest rates, which are generally considered an observable input, and results in the derivative being classified as Level 2.

 

Other foreign currency contracts. We have certain foreign currency options classified as other foreign currency contracts. The valuation of foreign currency options is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, foreign currency exchange rates, forward interest rate, foreign currency exchange rate volatility, foreign equity index volatility and time value component associated with the optionality in the derivative. As a result of the significant unobservable inputs associated with the forward interest rate, foreign currency exchange rate volatility and foreign equity index volatility inputs, the derivative is classified as Level 3. As foreign currency exchange rate volatility and foreign equity index volatility increases, the change in our valuation of these options will be favorable for purchase options and unfavorable for options sold. We also have foreign currency forward contracts where the valuation is determined using an income approach. The primary inputs into the valuation represent the forward foreign currency exchange rates, which are generally considered observable inputs and results in the derivative being classified as Level 2.

 

The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3      NAV (1)  

Assets

              

Investments:

              

Fixed maturity securities:

              

U.S. government, agencies and government-sponsored enterprises

   $ 5,353    $ —        $ 5,353    $ —        $ —    

State and political subdivisions

     2,855      —          2,803      52      —    

Non-U.S. government

     2,380      —          2,380      —          —    

U.S. corporate:

              

Utilities

     4,879      —          4,257      622      —    

Energy

     2,270      —          2,132      138      —    

Finance and insurance

     6,275      —          5,817      458      —    

Consumer—non-cyclical

     4,541      —          4,462      79      —    

Technology and communications

     2,781      —          2,769      12      —    

Industrial

     1,283      —          1,243      40      —    

Capital goods

     2,361      —          2,242      119      —    

Consumer—cyclical

     1,573      —          1,319      254      —    

Transportation

     1,252      —          1,196      56      —    

Other

     354      —          201      153      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total U.S. corporate

     27,569      —          25,638      1,931      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. corporate:

              

Utilities

     962      —          629      333      —    

Energy

     1,399      —          1,224      175      —    

Finance and insurance

     2,537      —          2,387      150      —    

Consumer—non-cyclical

     702      —          594      108      —    

Technology and communications

     1,007      —          991      16      —    

Industrial

     977      —          872      105      —    

Capital goods

     611      —          445      166      —    

Consumer—cyclical

     522      —          474      48      —    

Transportation

     727      —          524      203      —    

Other

     2,558      —          2,476      82      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. corporate

     12,002      —          10,616      1,386      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Residential mortgage-backed

     3,567      —          3,533      34      —    

Commercial mortgage-backed

     3,349      —          3,305      44      —    

Other asset-backed

     2,957      —          2,791      166      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturity securities

     60,032      —          56,419      3,613      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Equity securities

     758      643      69      46      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other invested assets:

              

Derivative assets:

              

Interest rate swaps

     49      —          49      —          —    

Interest rate caps and floors

     1      —          1      —          —    

Foreign currency swaps

     3      —          3      —          —    

Equity index options

     70      —          —          70      —    

Equity return swaps

     1      —          1      —          —    

Other foreign currency contracts

     106      —          106      —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative assets

     230      —          160      70      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Securities lending collateral

     211      —          211      —          —    

Short-term investments

     708      1      707      —          —    

Limited partnerships

     248      —          —          —          248  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total other invested assets

     1,397      1      1,078      70      248  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Reinsurance recoverable (2)

     12      —          —          12      —    

Separate account assets

     6,750      6,750      —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 68,949    $ 7,394    $ 57,566    $ 3,741    $ 248  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  Limited partnerships that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

     December 31, 2017  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Assets

           

Investments:

           

Fixed maturity securities:

           

U.S. government, agencies and government-sponsored enterprises

   $ 5,548    $ —        $ 5,547    $ 1

State and political subdivisions

     2,926      —          2,889      37

Non-U.S. government

     2,233      —          2,233      —    

U.S. corporate:

           

Utilities

     4,998      —          4,424      574

Energy

     2,458      —          2,311      147

Finance and insurance

     6,528      —          5,902      626

Consumer—non-cyclical

     4,831      —          4,750      81

Technology and communications

     2,845      —          2,772      73

Industrial

     1,346      —          1,307      39

Capital goods

     2,355      —          2,234      121

Consumer—cyclical

     1,605      —          1,343      262

Transportation

     1,291      —          1,231      60

Other

     379      —          210      169
  

 

 

    

 

 

    

 

 

    

 

 

 

Total U.S. corporate

     28,636      —          26,484      2,152
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. corporate:

           

Utilities

     1,017      —          674      343

Energy

     1,490      —          1,314      176

Finance and insurance

     2,735      —          2,574      161

Consumer—non-cyclical

     712      —          588      124

Technology and communications

     982      —          953      29

Industrial

     1,044      —          928      116

Capital goods

     645      —          454      191

Consumer—cyclical

     540      —          486      54

Transportation

     721      —          551      170

Other

     2,725      —          2,673      52
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. corporate

     12,611      —          11,195      1,416
  

 

 

    

 

 

    

 

 

    

 

 

 

Residential mortgage-backed

     4,057      —          3,980      77

Commercial mortgage-backed

     3,446      —          3,416      30

Other asset-backed

     3,068      —          2,831      237
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturity securities

     62,525      —          58,575      3,950
  

 

 

    

 

 

    

 

 

    

 

 

 

Equity securities

     820      696      80      44
  

 

 

    

 

 

    

 

 

    

 

 

 

Other invested assets:

           

Derivative assets:

           

Interest rate swaps

     74      —          74      —    

Foreign currency swaps

     12      —          12      —    

Equity index options

     80      —          —          80

Other foreign currency contracts

     110      —          110      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative assets

     276      —          196      80
  

 

 

    

 

 

    

 

 

    

 

 

 

Securities lending collateral

     268      —          268      —    

Short-term investments

     902      107      795      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other invested assets

     1,446      107      1,259      80
  

 

 

    

 

 

    

 

 

    

 

 

 

Reinsurance recoverable (1)

     14      —          —          14

Separate account assets

     7,230      7,230      —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 72,035    $ 8,033    $ 59,914    $ 4,088
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1, which primarily represents mutual fund investments, we typically do not have any transfers between Level 1 and Level 2 measurement categories and did not have any such transfers during any period presented.

Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.

 

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of

April 1,
2018
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level  3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance
as of

June 30,
2018
    Total gains
(losses)
included in
net income
attributable

to assets
still held
 
    Included in
net income
    Included
in OCI
                 

Fixed maturity securities:

                     

State and political subdivisions

  $ 53   $ —       $ (1   $ —       $ —       $ —       $ —       $ —       $ —       $ 52   $ —    

U.S. corporate:

                     

Utilities

    553     (1     (7     66     (12     —         (2     25       —         622     —    

Energy

    146     —         —         —         —         —         (1     —         (7 )       138     —    

Finance and insurance

    580     —         (41     —         —         —         (74     —         (7 )       458     —    

Consumer—non-cyclical

    79     —         —         —         —         —         —         —         —         79     —    

Technology and communications

    25     —         1     4     —         —         (18     —         —         12     —    

Industrial

    39     —         1     —         —         —         —         —         —         40     —    

Capital goods

    103     —         (1     24     —         —         —         —         (7 )       119     —    

Consumer—cyclical

    252     —         (1     7     (3     —         (1     —         —         254     —    

Transportation

    57     —         —         —         —         —         (1     —         —         56     —    

Other

    166     —         —         —         (10     —         (3     —         —         153     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,000     (1     (48     101     (25     —         (100     25       (21 )       1,931     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    336     —         (4     —         —         —         —         15       (14 )       333     —    

Energy

    195     —         (2     —         —         —         (18     —         —         175     —    

Finance and insurance

    153     1     (3     1     —         —         (1     —         (1 )       150     1

Consumer—non-cyclical

    120     —         (1     —         —         —         (11     —         —         108     —    

Technology and communications

    28     —         1     —         —         —         (13     —         —         16     —    

Industrial

    108     —         (1     3     —         —         (5     —         —         105     —    

Capital goods

    186     1     —         —         —         —         (21     —         —         166     1

Consumer—cyclical

    52     —         —         —         (1     —         (3     —         —         48     —    

Transportation

    166     —         (2     22     —         —         —         17       —         203     —    

Other

    83     —         (1     —         —         —         —         —         —         82     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,427     2     (13     26     (1     —         (72     32       (15 )       1,386     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    34     —         1     17     —         —         (1     —         (17 )       34     —    

Commercial mortgage-backed

    6     —         —         28     —         —         —         13       (3 )       44     —    

Other asset-backed

    172     —         (1     6     —         —         (24     45       (32 )       166     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    3,692     1     (62     178     (26     —         (197     115       (88 )       3,613     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    45     —         —         1     —         —         —         —         —         46     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    60     8     —         15     —         —         (13     —         —         70     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    60     8     —         15     —         —         (13     —         —         70     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    60     8     —         15     —         —         (13     —         —         70     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable (2)

    13     (1     —         —         —         —         —         —         —         12     (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 3,810   $ 8   $ (62   $ 194   $ (26   $ —       $ (210   $ 115     $ (88   $ 3,741   $ 9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

(Amounts in millions)

  Beginning
balance
as of

April 1,
2017
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer 
into
Level 3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance
as of

June 30,
2017
    Total gains
(losses)
included in
net income
attributable

to assets
still held
 
    Included in
net income
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 1   $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ 1   $ —    

State and political subdivisions

    37     —         —         —         —         —         —         —         —         37     —    

U.S. corporate:

                     

Utilities

    578     —         13     30     —         —         —         30       (13 )       638     —    

Energy

    162     —         4     —         —         —         (7     1       —         160     —    

Finance and insurance

    818     4     39     24     (7     —         (3     —         (14 )       861     4

Consumer—non-cyclical

    122     —         —         —         —         —         —         —         —         122     —    

Technology and communications

    59     —         5     4     —         —         —         —         (10 )       58     —    

Industrial

    47     —         1     13     —         —         —         —         —         61     —    

Capital goods

    153     —         2     —         —         —         —         —         (37 )       118     —    

Consumer—cyclical

    263     —         4     —         —         —         (1     —         —         266     —    

Transportation

    97     —         4     —         —         —         (1     —         —         100     1

Other

    142     —         —         —         —         —         (3     37       —         176     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,441     4     72     71     (7     —         (15     68       (74 )       2,560     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    386     —         3     —         —         —         —         —         (30 )       359     —    

Energy

    206     —         3     —         —         —         —         —         (32 )       177     —    

Finance and insurance

    168     1     4     4     —         —         (5     —         —         172     1

Consumer—non-cyclical

    129     —         1     —         —         —         (1     —         —         129     —    

Technology and communications

    48     —         —         —         —         —         —         —         —         48     —    

Industrial

    110     —         2     —         —         —         —         —         —         112     —    

Capital goods

    170     —         1     —         —         —         (15     —         (7 )       149     —    

Consumer—cyclical

    67     —         —         —         —         —         —         —         —         67     —    

Transportation

    193     —         1     6     —         —         —         1       (11 )       190     —    

Other

    24     —         2     15     —         —         —         —         —         41     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,501     1     17     25     —         —         (20     1       (81 )       1,444     1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    46     —         1     —         —         —         —         26       —         73     —    

Commercial mortgage-backed

    59     (1     2     8     (9     —         —         —         (7 )       52     —    

Other asset-backed

    175     (7     10     10     (35     —         (5     9       (7 )       150     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    4,260     (3     102     114     (51     —         (40     104       (169 )       4,317     6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    47     —         —         1     —         —         —         —         —         48     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    77     13     —         9     —         —         (18     —         —         81     —    

Other foreign currency contracts

    1     (1     —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    78     12     —         9     —         —         (18     —         —         81     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    78     12     —         9     —         —         (18     —         —         81     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable (2)

    15     —         —         —         —         —         —         —         —         15     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 4,400   $ 9   $ 102   $ 124   $ (51   $ —       $ (58   $ 104     $ (169   $ 4,461   $ 6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2018
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3  
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance

as of
June 30,
2018
    Total gains
(losses)
included in
net income

attributable
to assets
still held
 
    Included
in net
income
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 1   $ —       $ —       $ —       $ —       $ —       $ (1   $ —       $ —       $ —       $ —    

State and political subdivisions

    37     1     (4     —         —         —         —         18       —         52     1

U.S. corporate:

                     

Utilities

    574     (1     (25     69     (12     —         (4     25       (4 )       622     —    

Energy

    147     —         (5     22     —         —         (19     —         (7 )       138     —    

Finance and insurance

    626     1     (67     26     —         —         (110     —         (18 )       458     1

Consumer—non-cyclical

    81     —         (2     —         —         —         —         —         —         79     —    

Technology and communications

    73     —         (5     4     —         —         (60     —         —         12     —    

Industrial

    39     —         1     —         —         —         —         —         —         40     —    

Capital goods

    121     —         (9     24     —         —         (10     —         (7 )       119     —    

Consumer—cyclical

    262     —         (10     17     (3     —         (12     —         —         254     —    

Transportation

    60     —         (1     —         —         —         (3     —         —         56     —    

Other

    169     —         (1     —         (10     —         (5     —         —         153     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,152     —         (124     162     (25     —         (223     25       (36 )       1,931     1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    343     —         (13     22     —         —         (20     15       (14 )       333     —    

Energy

    176     —         (6     23     —         —         (18     —         —         175     —    

Finance and insurance

    161     2     (11     1     —         —         (2     —         (1 )       150     2

Consumer—non-cyclical

    124     —         (4     —         —         —         (12     —         —         108     —    

Technology and communications

    29     —         —         —         —         —         (13     —         —         16     —    

Industrial

    116     —         (4     3     —         —         (10     —         —         105     —    

Capital goods

    191     1     (5     —         —         —         (21     —         —         166     1

Consumer—cyclical

    54     —         (2     —         (1     —         (3     —         —         48     —    

Transportation

    170     —         (6     22     —         —         —         17       —         203     —    

Other

    52     —         (3     33     —         —         —         —         —         82     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,416     3     (54     104     (1     —         (99     32       (15 )       1,386     3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    77     —         —         29     —         —         (1     —         (71 )       34     —    

Commercial mortgage-backed

    30     —         (2     35     —         —         —         13       (32 )       44     —    

Other asset-backed

    237     —         (3     61     —         —         (56     48       (121 )       166     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    3,950     4     (187     391     (26     —         (380     136       (275 )       3,613     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    44     —         —         5     (3     —         —         —         —         46     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    80     (7     —         29     —         —         (32     —         —         70     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    80     (7     —         29     —         —         (32     —         —         70     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    80     (7     —         29     —         —         (32     —         —         70     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable (2)

    14     (3     —         —         —         1     —         —         —         12     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 4,088   $ (6   $ (187   $ 425   $ (29   $ 1   $ (412   $ 136     $ (275   $ 3,741   $ (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2017
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance

as of
June 30,
2017
    Total gains
(losses)
included in
net income

attributable
to assets
still held
 
    Included
in net
income
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 2   $ —       $ —       $ —       $ —       $ —       $ (1   $ —       $ —       $ 1   $ —    

State and political subdivisions

    37     1     (1     —         —         —         —         —         —         37     1

U.S. corporate:

                     

Utilities

    576     —         20     44     —         —         (2     30       (30 )       638     —    

Energy

    210     (1     6     —         (10     —         (30     1       (16 )       160     (1

Finance and insurance

    786     8     51     53     (17     —         (6     —         (14 )       861     8

Consumer—non-cyclical

    121     —         1     —         —         —         —         —         —         122     —    

Technology and communications

    54     1     6     14     —         —         —         —         (17 )       58     1

Industrial

    48     —         —         13     —         —         —         —         —         61     —    

Capital goods

    152     —         3     —         —         —         —         —         (37 )       118     —    

Consumer—cyclical

    258     —         9     2     —         —         (3     —         —         266     —    

Transportation

    139     1     5     —         —         —         (3     —         (42 )       100     1

Other

    143     —         1     —         —         —         (5     37       —         176     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,487     9     102     126     (27     —         (49     68       (156 )       2,560     9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    386     —         5     30     —         —         —         —         (62 )       359     —    

Energy

    206     —         5     —         (1     —         (1     —         (32 )       177     —    

Finance and insurance

    182     3     8     4     —         —         (25     —         —         172     2

Consumer—non-cyclical

    139     —         2     —         —         —         (12     —         —         129     —    

Technology and communications

    67     —         —         —         —         —         (19     —         —         48     —    

Industrial

    109     —         3     —         —         —         —         —         —         112     —    

Capital goods

    169     —         2     —         —         —         (15     —         (7 )       149     —    

Consumer—cyclical

    69     —         —         —         —         —         (2     —         —         67     —    

Transportation

    181     —         3     6     —         —         —         11       (11 )       190     —    

Other

    25     —         1     15     —         —         —         —         —         41     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,533     3     29     55     (1     —         (73     11       (113 )       1,444     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    43     —         1     4     —         —         (1     26       —         73     —    

Commercial mortgage-backed

    54     (1     6     9     (9     —         —         —         (7 )       52     —    

Other asset-backed

    145     (7     10     64     (35     —         (7     14       (34 )       150     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    4,301     5     147     258     (72     —         (131     119       (310 )       4,317     12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    47     —         —         1     —         —         —         —         —         48     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    72     26     —         21     —         —         (38     —         —         81     —    

Other foreign currency contracts

    3     (3     —         —         —         —         —         —         —         —         (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    75     23     —         21     —         —         (38     —         —         81     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    75     23     —         21     —         —         (38     —         —         81     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Restricted other invested assets related to securitization entities

    131     —         —         —         (131     —         —         —         —         —         —    

Reinsurance recoverable (2)

    16     (2     —         —         —         1     —         —         —         15     (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 4,570   $ 26   $ 147   $ 280   $ (203   $ 1   $ (169   $ 119     $ (310   $ 4,461   $ 7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Total realized and unrealized gains (losses) included in net income:

           

Net investment income

   $ 2    $ 5    $ 5    $ 14

Net investment gains (losses)

     6      4      (11      12
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 8    $ 9    $ (6    $ 26
  

 

 

    

 

 

    

 

 

    

 

 

 

Total gains (losses) included in net income attributable to assets still held:

           

Net investment income

   $ 2    $ 6    $ 5    $ 13

Net investment gains (losses)

     7      —          (7      (6
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 9    $ 6    $ (2    $ 7
  

 

 

    

 

 

    

 

 

    

 

 

 

The amount presented for unrealized gains (losses) included in net income for available-for-sale securities represents impairments and accretion on certain fixed maturity securities.

 

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2018:

 

(Amounts in millions)

  Valuation technique     Fair value     Unobservable input     Range     Weighted-average  

Fixed maturity securities:

         

U.S. corporate:

         

Utilities

    Internal models     $ 616     Credit spreads       67bps - 262bps       138bps  

Energy

    Internal models       116     Credit spreads       80bps - 278bps       148bps  

Finance and insurance

    Internal models       439     Credit spreads       83bps - 290bps       157bps  

Consumer—non-cyclical

    Internal models       79     Credit spreads       90bps - 172bps       122bps  

Technology and communications

    Internal models       12     Credit spreads       63bps - 159bps       94bps  

Industrial

    Internal models       40     Credit spreads       109bps - 202bps       150bps  

Capital goods

    Internal models       119     Credit spreads       93bps - 241bps       136bps  

Consumer—cyclical

    Internal models       213     Credit spreads       74bps - 210bps       135bps  

Transportation

    Internal models       50     Credit spreads       59bps - 117bps       87bps  

Other

    Internal models       152     Credit spreads       74bps - 124bps       85bps  
   

 

 

       

Total U.S. corporate

    Internal models     $ 1,836     Credit spreads       59bps - 290bps       136bps  
   

 

 

       

Non-U.S. corporate:

         

Utilities

    Internal models     $ 333     Credit spreads       83bps - 179bps       128bps  

Energy

    Internal models       134     Credit spreads       93bps - 254bps       127bps  

Finance and insurance

    Internal models       143     Credit spreads       74bps - 235bps       137bps  

Consumer—non-cyclical

    Internal models       108     Credit spreads       61bps - 202bps       128bps  

Technology and communications

    Internal models       15     Credit spreads       144bps - 164bps       155bps  

Industrial

    Internal models       105     Credit spreads       107bps - 241bps       150bps  

Capital goods

    Internal models       166     Credit spreads       93bps - 248bps       152bps  

Consumer—cyclical

    Internal models       44     Credit spreads       84bps - 172bps       102bps  

Transportation

    Internal models       184     Credit spreads       80bps - 241bps       135bps  

Other

    Internal models       82     Credit spreads       108bps - 248bps       161bps  
   

 

 

       

Total non-U.S. corporate

    Internal models     $ 1,314     Credit spreads       61bps - 254bps       136bps  
   

 

 

       

Derivative assets:

         

Equity index options

   
Discounted
cash flows
 
 
  $ 70    
Equity index
volatility
 
 
    6% - 28%       18%  

Certain classes of instruments classified as Level 3 are excluded above as a result of not being material or due to limitations in being able to obtain the underlying inputs used by certain third-party sources, such as broker quotes, used as an input in determining fair value.

 

The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Liabilities

           

Policyholder account balances:

           

GMWB embedded derivatives (1)

   $ 235    $ —        $ —        $ 235

Fixed index annuity embedded derivatives

     420      —          —          420

Indexed universal life embedded derivatives

     13      —          —          13
  

 

 

    

 

 

    

 

 

    

 

 

 

Total policyholder account balances

     668      —          —          668
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities:

           

Interest rate swaps

     71      —          71      —    

Foreign currency swaps

     9      —          9      —    

Other foreign currency contracts

     23      —          23      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative liabilities

     103      —          103      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 771    $ —        $ 103    $ 668
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

     December 31, 2017  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Liabilities

           

Policyholder account balances:

           

GMWB embedded derivatives (1)

   $ 250    $ —        $ —        $ 250

Fixed index annuity embedded derivatives

     419      —          —          419

Indexed universal life embedded derivatives

     14      —          —          14
  

 

 

    

 

 

    

 

 

    

 

 

 

Total policyholder account balances

     683      —          —          683
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities:

           

Interest rate swaps

     25      —          25      —    

Equity return swaps

     2      —          2      —    

Other foreign currency contracts

     20      —          20      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative liabilities

     47      —          47      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 730    $ —        $ 47    $ 683
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of
April 1,
2018
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2018
    Total (gains)
losses
included in
net (income)
attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 242   $ (14   $ —       $ —       $ —       $ 7   $ —       $ —       $ —       $ 235   $ (14

Fixed index annuity embedded derivatives

    408     15     —         —         —         —         (3     —         —         420     15

Indexed universal life embedded derivatives

    13     (2     —         —         —         2     —         —         —         13     (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    663     (1     —         —         —         9     (3     —         —         668     (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 663   $ (1   $ —       $ —       $ —       $ 9   $ (3   $ —       $ —       $ 668   $ (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

(Amounts in millions)

  Beginning
balance
as of
April 1,
2017
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2017
    Total (gains)
losses
included in
net (income)
attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 275   $ (1   $ —       $ —       $ —       $ 7   $ —       $ —       $ —       $ 281   $ (2

Fixed index annuity embedded derivatives

    361     16     —         —         —         —         (1     —         —         376     16

Indexed universal life embedded derivatives

    12     (2     —         —         —         3     —         —         —         13     (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    648     13     —         —         —         10     (1     —         —         670     12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings related to securitization entities

    13     —         —         —         —         —         (1     —         —         12     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 661   $ 13   $ —       $ —       $ —       $ 10   $ (2   $ —       $ —       $ 682   $ 12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2018
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance

as of
June 30,
2018
    Total (gains)
losses
included in
net (income)

attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 250   $ (30   $ —       $ —       $ —       $ 15   $ —       $ —       $ —       $ 235   $ (26

Fixed index annuity embedded derivatives

    419     7     —         —         —         —         (6     —         —         420     7

Indexed universal life embedded derivatives

    14     (7     —         —         —         6     —         —         —         13     (7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    683     (30     —         —         —         21     (6     —         —         668     (26
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 683   $ (30   $ —       $ —       $ —       $ 21   $ (6   $ —       $ —       $ 668   $ (26
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2017
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance

as of
June 30,
2017
    Total (gains)
losses
included in
net (income)

attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 303   $ (36   $ —       $ —       $ —       $ 14   $ —       $ —       $ —       $ 281   $ (33

Fixed index annuity embedded derivatives

    344     36     —         —         —         —         (4     —         —         376     36

Indexed universal life embedded derivatives

    11     (3     —         —         —         5     —         —         —         13     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    658     (3     —         —         —         19     (4     —         —         670     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings related to securitization entities

    12     1     —         —         —         —         (1     —         —         12     1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 670   $ (2   $ —       $ —       $ —       $ 19   $ (5   $ —       $ —       $ 682   $ 1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

The following table presents the gains and losses included in net (income) from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Total realized and unrealized (gains) losses included in net (income):

           

Net investment income

   $ —      $ —      $ —      $ —  

Net investment (gains) losses

     (1      13      (30      (2
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1    $ 13    $ (30    $ (2
  

 

 

    

 

 

    

 

 

    

 

 

 

Total (gains) losses included in net (income) attributable to liabilities still held:

           

Net investment income

   $ —      $ —      $ —      $ —  

Net investment (gains) losses

     (1      12      (26      1
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1    $ 12    $ (26    $ 1
  

 

 

    

 

 

    

 

 

    

 

 

 

Purchases, sales, issuances and settlements represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases, sales and settlements of fixed maturity and equity securities and purchases, issuances and settlements of derivative instruments.

Issuances presented for GMWB embedded derivative liabilities are characterized as the change in fair value associated with the product fees recognized that are attributed to the embedded derivative to equal the expected future benefit costs upon issuance. Issuances for fixed index annuity and indexed universal life embedded derivative liabilities represent the amount of the premium received that is attributed to the value of the embedded derivative. Settlements of embedded derivatives are characterized as the change in fair value upon exercising the embedded derivative instrument, effectively representing a settlement of the embedded derivative instrument. We have shown these changes in fair value separately based on the classification of this activity as effectively issuing and settling the embedded derivative instrument with all remaining changes in the fair value of these embedded derivative instruments being shown separately in the category labeled “included in net (income)” in the tables presented above.

 

The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2018:

 

(Amounts in millions)

  Valuation technique     Fair value     Unobservable input   Range   Weighted-average

Policyholder account balances:

         
      Withdrawal
utilization rate
  42% - 86%   67%
      Lapse rate   2% - 9%   4%
      Non-performance
risk (credit
spreads)
  28bps - 83bps  

69bps

GMWB embedded derivatives (1)

   

Stochastic
cash flow
model
 
 
 
    $235   Equity index
volatility
  15% - 24%   21%

Fixed index annuity embedded derivatives

   
Option budget
method
 
    $420   Expected future
interest credited
  —% - 3%   1%

Indexed universal life embedded derivatives

   
Option budget
method
 
 
    $13   Expected future
interest credited
  3% - 9%   6%

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
v3.10.0.1
Liability for Policy and Contract Claims
6 Months Ended
Jun. 30, 2018
Liability for Policy and Contract Claims

(7) Liability for Policy and Contract Claims

The following table sets forth changes in our liability for policy and contract claims as of the dates indicated:

 

     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2018      2017  

Beginning balance

   $ 9,594    $ 9,256

Less reinsurance recoverables

     (2,419      (2,409
  

 

 

    

 

 

 

Net beginning balance

     7,175      6,847
  

 

 

    

 

 

 

Incurred related to insured events of:

     

Current year

     1,946      1,804

Prior years

     (244      (244
  

 

 

    

 

 

 

Total incurred

     1,702      1,560
  

 

 

    

 

 

 

Paid related to insured events of:

     

Current year

     (434      (450

Prior years

     (1,266      (1,224
  

 

 

    

 

 

 

Total paid

     (1,700      (1,674
  

 

 

    

 

 

 

Interest on liability for policy and contract claims

     163      147

Foreign currency translation

     (16      18
  

 

 

    

 

 

 

Net ending balance

     7,324      6,898

Add reinsurance recoverables

     2,341      2,341
  

 

 

    

 

 

 

Ending balance

   $ 9,665    $ 9,239
  

 

 

    

 

 

 

 

The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity.

For the six months ended June 30, 2018 and 2017, the favorable development of $244 million for both years related to insured events of prior years was primarily attributable to favorable claim terminations, including pending claims that terminate before becoming an active claim, in our long-term care insurance business. The favorable development for the six months ended June 30, 2018 and 2017, was also impacted by our mortgage insurance businesses, primarily from an improvement in net cures and aging of existing claims, including a favorable reserve adjustment of $26 million in our U.S. mortgage insurance business during the second quarter of 2018.

v3.10.0.1
Borrowings
6 Months Ended
Jun. 30, 2018
Borrowings

(8) Borrowings

(a) Long-Term Borrowings

The following table sets forth total long-term borrowings as of the dates indicated:

 

(Amounts in millions)

   June 30,
2018
    December 31,
2017
 

Genworth Holdings (1)

    

Floating Rate Senior Secured Term Loan Facility, due 2023

   $ 448   $ —    

6.52% Senior Notes, due 2018

     —         597

7.70% Senior Notes, due 2020

     397     397

7.20% Senior Notes, due 2021

     381     381

7.625% Senior Notes, due 2021

     704     704

4.90% Senior Notes, due 2023

     399     399

4.80% Senior Notes, due 2024

     400     400

6.50% Senior Notes, due 2034

     297     297

6.15% Fixed-to-Floating Rate Junior Subordinated Notes, due 2066

     598     598
  

 

 

   

 

 

 

Subtotal

     3,624     3,773

Bond consent fees

     (30     (33

Deferred borrowing charges

     (23     (16
  

 

 

   

 

 

 

Total Genworth Holdings

     3,571     3,724
  

 

 

   

 

 

 

Canada (2)

    

5.68% Senior Notes, due 2020

     209     219

4.24% Senior Notes, due 2024

     122     128
  

 

 

   

 

 

 

Subtotal

     331     347

Deferred borrowing charges

     (1     (1
  

 

 

   

 

 

 

Total Canada

     330     346
  

 

 

   

 

 

 

Australia (3)

    

Floating Rate Junior Notes, due 2025

     148     156

Deferred borrowing charges

     (2     (2
  

 

 

   

 

 

 

Total Australia

     146     154
  

 

 

   

 

 

 

Total

   $ 4,047   $ 4,224
  

 

 

   

 

 

 

 

(1)  We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread.
(2)  Senior notes issued by Genworth MI Canada Inc. (“Genworth Canada”), our majority-owned subsidiary.
(3)  Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited, our indirect wholly-owned subsidiary.

Genworth Holdings

On May 22, 2018, Genworth Holdings redeemed $597 million of its 6.52% senior notes that were issued in May 2008 and matured in May 2018. A cash payment of $616 million comprised of net proceeds of $441 million from the senior secured term loan facility (“Term Loan”), as described below, and $175 million of existing cash on hand was used to fully redeem the principal and accrued interest balance of the May 2018 senior notes.

 

On March 7, 2018, Genworth Holdings entered into a $450 million Term Loan, which matures in March 2023 and was issued at a 0.5% discount. Principal payments under the agreement are due quarterly, commencing on June 30, 2018, and are payable in equal amounts of 0.25% per quarter of the original principal amount with the remaining balance due at maturity. At our option, the Term Loan will bear interest at either an adjusted London Interbank Offered Rate (“LIBOR”) no lower than 1.0% plus a margin of 4.5% per annum or an alternate base rate plus a margin of 3.5% per annum. The interest rate on the Term Loan as of June 30, 2018 was 6.5%. We incurred $7 million of borrowing costs that were deferred. The Term Loan is unconditionally guaranteed by Genworth Financial, and Genworth Financial International Holdings, LLC (“GFIH”) has provided a limited recourse guarantee to the lenders of Genworth Holdings’ outstanding Term Loan, which is secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares. GFIH is our indirect wholly-owned subsidiary and owns approximately 40.5% of the outstanding common stock of Genworth Canada. The Term Loan is subject to other terms and conditions, including but not limited to: voluntary prepayments subject to prepayment penalties, mandatory prepayments in the event of certain asset sales or the incurrence of further indebtedness by Genworth Financial and various financial covenants.

v3.10.0.1
Income Taxes
6 Months Ended
Jun. 30, 2018
Income Taxes

(9) Income Taxes

The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:

 

     Three months ended
June 30,
    Six months ended
June 30,
 
     2018     2017     2018     2017  

Statutory U.S. federal income tax rate

     21.0     35.0     21.0     35.0

Increase (reduction) in rate resulting from:

        

TCJA, impact from change in tax rate

     5.4       —         3.3       —    

Swaps terminated prior to the TCJA

     3.9       —         3.2       —    

Effect of foreign operations

     3.4       (2.0     3.2       (1.0

Valuation allowance

     (2.0     —         (1.3     —    

Provision to return adjustments

     (1.6     —         (0.7     —    

Other, net

     0.7       (0.5     0.9       (0.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Effective rate

     30.8     32.5     29.6     33.6
  

 

 

   

 

 

   

 

 

   

 

 

 

The decrease in the effective tax rate for the three and six months ended June 30, 2018 was primarily attributable to the enactment of the TCJA, which includes a change in the U.S. corporate federal income tax rate from 35% to 21%. This decrease was partially offset by the effect of foreign operations, which had an overall increase on the effective tax rate as our primary foreign subsidiaries are now in jurisdictions with higher statutory tax rates than the United States. The decrease was also partially offset by tax expense in our long-term care insurance business related to gains on forward starting swaps settled prior to the enactment of the TCJA, which are tax effected at 35% as they are amortized into net investment income and from a provisional tax expense of $19 million in the current year related to a revaluation of deferred tax assets and liabilities on our foreign subsidiaries in light of the TCJA.

As of December 31, 2017, as prescribed by the SEC’s Staff Accounting Bulletin (“SAB”) 118, we recorded provisional estimates of the tax impact of certain changes in tax law under the TCJA. However, for other changes in the tax law where we were unable to record a reasonable estimate, no amounts were recorded.

 

As of June 30, 2018, we are still in the process of completing the accounting of our provisional estimates and refining our computations as follows:

Deferred tax assets and liabilities

We recorded a provisional tax benefit of $154 million in 2017 related to remeasurement of certain deferred tax assets and liabilities as a result of the newly enacted tax rate. The Internal Revenue Service has indicated that additional guidance will be forthcoming with respect to several technical areas within the TCJA, which could affect the measurement of these balances or potentially give rise to new deferred tax amounts. During the three months ended June 30, 2018, we recorded a provisional tax expense of $19 million related to a revaluation of deferred tax assets and liabilities on our foreign subsidiaries in light of the TCJA. This amount is considered provisional and additional refinements to the calculation may be required.

Foreign tax effects

We recorded a provisional tax expense of $63 million in 2017 related to the one-time transition tax on mandatory deemed repatriation of earnings and profits (“E&P”). We have not yet completed our calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based, in part, on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of our post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. During the six months ended June 30, 2018, there were no changes to the provisional estimates made in 2017 and no additional measurement period adjustment were recorded.

Insurance reserve transition adjustment

We recorded a provisional reclassification in deferred tax assets and liabilities in the amount of $134 million in 2017 related to the transition adjustment required under the TCJA with respect to life insurance policyholder reserves. We continue to refine our insurance reserve calculations and apply the new reserving rules under the TCJA on a product level basis. During the six months ended June 30, 2018, we updated our provisional estimate and identified a measurement period increase to this reclassification of $40 million which has been reflected in our consolidated balance sheet as of June 30, 2018. This measurement period adjustment had no impact on net income, and we will continue to refine this estimate throughout the measurement period.

As of June 30, 2018, we are still in the process of completing the accounting for the following areas for which a reasonable estimate could not be made.

Foreign tax effects

We are still in the process of analyzing the impact of the Global Intangible Low Taxed Income (“GILTI”) and Base Erosion Anti-Abuse Tax (“BEAT”), including accounting policy elections. During the six months ended June 30, 2018, we have included the current tax effects of GILTI and BEAT taxes in current year earnings, but we have not yet made a policy election with respect to the accounting for the potential deferred tax effects of the GILTI tax and no measurement period adjustment has been recorded.

State tax effects

We have not analyzed certain areas of state income taxes, including the treatment of the one-time transition tax. Accordingly, no reasonable estimate can be made, and no measurement period adjustment has been recorded.

 

Further regulatory guidance related to the TCJA is expected to be issued in 2018 which may result in changes to our current estimates. Any revisions to the estimated impacts of the TCJA will be recorded quarterly until the computations are complete which is expected no later than the fourth quarter of 2018.

v3.10.0.1
Segment Information
6 Months Ended
Jun. 30, 2018
Segment Information

(10) Segment Information

We have the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes our long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which have not been actively sold). In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations.

On December 22, 2017, the TCJA was signed into law. The TCJA reduced the U.S. corporate federal income tax rate to 21% effective for taxable years beginning on January 1, 2018 and migrated the worldwide tax system to a territorial international tax system. Therefore, beginning on January 1, 2018 we taxed our international businesses at their local statutory tax rates and our domestic businesses at the new enacted tax rate of 21%. We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities.

The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies.

Beginning in the first quarter of 2018, we assumed a tax rate of 21% on certain adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders and adjusted operating income available to Genworth Financial, Inc.’s common stockholders (unless otherwise indicated). In the prior year, we assumed a tax rate of 35%, the previous U.S. corporate federal income tax rate prior to the enactment of the TCJA, on certain adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders and adjusted operating income available to Genworth Financial, Inc.’s common stockholders. These adjustments are also net of the portion attributable to noncontrolling interests and net investment gains (losses) are adjusted for DAC and other intangible amortization and certain benefit reserves.

We recorded a pre-tax expense of $1 million in the first quarter of 2017 related to restructuring costs as we continued to evaluate and appropriately size our organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income during the periods presented.

 

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Revenues:

           

U.S. Mortgage Insurance segment

   $ 208    $ 189    $ 408    $ 376
  

 

 

    

 

 

    

 

 

    

 

 

 

Canada Mortgage Insurance segment

     150      204      308      373
  

 

 

    

 

 

    

 

 

    

 

 

 

Australia Mortgage Insurance segment

     136      97      243      219
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment:

           

Long-term care insurance

     1,035      1,036      2,055      2,030

Life insurance

     367      411      746      828

Fixed annuities

     176      210      358      415
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment

     1,578      1,657      3,159      3,273
  

 

 

    

 

 

    

 

 

    

 

 

 

Runoff segment

     80      89      148      176
  

 

 

    

 

 

    

 

 

    

 

 

 

Corporate and Other activities

     7      (13      8      (23
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 2,159    $ 2,223    $ 4,274    $ 4,394
  

 

 

    

 

 

    

 

 

    

 

 

 

The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 190    $ 202    $ 302    $ 357

Add: net income attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     249      271      414      487

Loss from discontinued operations, net of taxes

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations

     249      271      414      487

Less: income from continuing operations attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

     190      202      302      357

Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:

           

Net investment (gains) losses, net (1)

     12      (79      29      (99

Expenses related to restructuring

     —          —          —          1

Taxes on adjustments

     (2      28      (6      35
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

   $ 200    $ 151    $ 325    $ 294
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the three months ended June 30, 2018 and 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(1) million and zero, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(1) million and $22 million, respectively. For the six months ended June 30, 2018 and 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million and zero, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(12) million and $36 million, respectively.

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:

           

U.S. Mortgage Insurance segment

   $ 137    $ 91    $ 248    $ 164
  

 

 

    

 

 

    

 

 

    

 

 

 

Canada Mortgage Insurance segment

     46      41      95      77
  

 

 

    

 

 

    

 

 

    

 

 

 

Australia Mortgage Insurance segment

     22      12      41      25
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment:

           

Long-term care insurance

     22      33      (10      47

Life insurance

     4      (1      3      15

Fixed annuities

     31      7      59      30
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment

     57      39      52      92
  

 

 

    

 

 

    

 

 

    

 

 

 

Runoff segment

     13      11      23      25

Corporate and Other activities

     (75      (43      (134      (89
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

   $ 200    $ 151    $ 325    $ 294
  

 

 

    

 

 

    

 

 

    

 

 

 

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:

 

(Amounts in millions)

   June 30,
2018
     December 31,
2017
 

Assets:

     

U.S. Mortgage Insurance segment

   $ 3,393    $ 3,273

Canada Mortgage Insurance segment

     5,255      5,534

Australia Mortgage Insurance segment

     2,696      2,973

U.S. Life Insurance segment

     79,925      81,295

Runoff segment

     10,472      10,907

Corporate and Other activities

     736      1,315
  

 

 

    

 

 

 

Total assets

   $ 102,477    $ 105,297
  

 

 

    

 

 

 

v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies

(11) Commitments and Contingencies     

(a) Litigation and Regulatory Matters

We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including the risk of class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to breach of customer information. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships, post-closing obligations associated with previous dispositions and securities lawsuits. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations.

In January 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al. In February 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a second shareholder derivative suit filed by Martin Cohen in the Court of Chancery of the State of Delaware. The case was captioned Cohen v. McInerney, et al. On February 23, 2016, the Court of Chancery of the State of Delaware consolidated these derivative suits under the caption Genworth Financial, Inc. Consolidated Derivative Litigation. On March 28, 2016, plaintiffs in the consolidated action filed an amended complaint. The amended complaint alleges breaches of fiduciary duties concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. The amended consolidated complaint also adds Genworth’s current chief financial officer as a defendant, based on the current chief financial officer’s alleged conduct in her former capacity as Genworth’s controller and principal accounting officer. We moved to dismiss the consolidated action on May 27, 2016. Thereafter, plaintiffs filed a substantially similar second amended complaint which we moved to dismiss on September 16, 2016. The motion is fully briefed and awaiting disposition by the court. The action is stayed pending the completion of the proposed China Oceanwide transaction.

In October 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al. The complaint alleges that Genworth’s board of directors wrongfully refused plaintiff’s demand to commence litigation on behalf of Genworth and asserts claims for breaches of fiduciary duties, waste, contribution and indemnification, and unjust enrichment concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business, and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. We filed a motion to dismiss on November 14, 2016. The action is stayed pending the completion of the proposed China Oceanwide transaction.

In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated, et al, and James v. Genworth Financial, Inc. et al, were filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. A third putative stockholder class action lawsuit captioned Rosenfeld Family Trust v. Genworth Financial, Inc. et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors. In February 2017, a fourth putative class action lawsuit captioned Chopp v. Genworth Financial, Inc. et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors and a fifth putative class action lawsuit captioned Ratliff v. Genworth Financial, Inc. et al, was filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. The complaints in all five actions allege, among other things, that the preliminary proxy statement filed by Genworth with the SEC on December 21, 2016 contains false and/or materially misleading statements and/or omits material information. The complaints assert claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, and seek equitable relief, including declaratory and injunctive relief, and an award of attorneys’ fees and expenses. On February 2, 2017, the plaintiff in Rice filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 10, 2017, defendants filed an opposition to the preliminary injunction motion in the Rice action. Also on February 10, 2017, the plaintiff in Rosenfeld Family Trust filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 14, 2017, defendants filed a motion to transfer the Rosenfeld Family Trust action to the Eastern District of Virginia. On February 15, 2017, defendants filed a motion to transfer the Chopp action to the Eastern District of Virginia. On February 21, 2017, the parties to the Eastern District of Virginia actions (Rice, James and Ratliff) reached an agreement in principle to resolve the pending preliminary injunction motion in the Eastern District of Virginia through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction. On February 22, 2017, the plaintiffs in the Eastern District of Virginia withdrew their preliminary injunction motion in consideration of the agreed disclosures to be filed in a Form 8-K by February 24, 2017. Also on February 22, 2017, the court in the District of Delaware suspended briefing on the motion for preliminary injunction in the Rosenfeld Family Trust action and entered an order transferring the Rosenfeld Family Trust and Chopp actions to the Eastern District of Virginia. On February 23, 2017, the court in the Eastern District of Virginia set the Rosenfeld Family Trust preliminary injunction motion for a hearing on March 1, 2017. On February 26, 2017, defendants filed an opposition to the preliminary injunction motion in the Rosenfeld Family Trust action. On February 27, 2017, the parties in the Rosenfeld Family Trust action reached an agreement in principle to resolve the pending preliminary injunction motion in the Rosenfeld Family Trustaction through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction, and the plaintiff in the Rosenfeld Family Trust action withdrew its preliminary injunction motion in consideration of the agreed disclosures as filed in a Form 8-K on February 28, 2017. On March 6, 2017, the court in the Eastern District of Virginia entered an order setting a schedule for proceedings to appoint a lead plaintiff and lead counsel for the purported class action. On March 7, 2017, the court in the Eastern District of Virginia consolidated the RiceJamesRatliffRosenfeld Family Trust, and Chopp actions. On July 5, 2017, the court in the Eastern District of Virginia heard oral argument on the motion to appoint a lead plaintiff and lead counsel. On August 25, 2017, the court in the Eastern District of Virginia entered an order appointing the plaintiffs Alexander Rice and Brian James as lead plaintiffs and their counsel as lead counsel. In November, 2017, the parties reached an agreement in principle to settle the action based upon the previously provided additional disclosures, subject to confirmatory discovery and court approval. On April 4, 2018, the parties entered into a stipulation of settlement. On April 24, 2018, the court in the Eastern District of Virginia entered an order preliminarily approving the settlement and following a July 3, 2018 hearing, granted final approval of the settlement.

In December 2017, Genworth Holdings and Genworth Financial were named as defendants in an action captioned AXA S.A. v. Genworth Financial International Holdings, Inc., et al., in the High Court of Justice, Business and Property Courts of England and Wales. In the action, AXA seeks in excess of £28 million on an indemnity provided for in the 2015 agreement pursuant to which Genworth sold to AXA two insurance companies, Financial Insurance Company Limited and Financial Assurance Company Limited, relating to alleged remediation it has paid to customers who purchased payment protection insurance. AXA also alleges that it is incurring losses on an ongoing basis and therefore that further sums will be demanded. In February 2018, Genworth served a Particulars of Defence and counterclaim against AXA, and also served other counterclaims against various parties, including Santander Cards UK Limited (“Santander”), alleging that Santander is responsible for any remediation paid to payment protection insurance customers. AXA and Santander have applied to the court for orders dismissing or staying the counterclaims. We intend to vigorously defend this action.

At this time, other than as noted above, we cannot determine or predict the ultimate outcome of any of the pending legal and regulatory matters specifically identified above or the likelihood of potential future legal and regulatory matters against us. Except as disclosed above, we also are not able to provide an estimate or range of reasonably possible losses related to these matters. Therefore, we cannot ensure that the current investigations and proceedings will not have a material adverse effect on our business, financial condition or results of operations. In addition, it is possible that related investigations and proceedings may be commenced in the future, and we could become subject to additional unrelated investigations and lawsuits. Increased regulatory scrutiny and any resulting investigations or proceedings could result in new legal precedents and industry-wide regulations or practices that could adversely affect our business, financial condition and results of operations.

(b) Commitments

As of June 30, 2018, we were committed to fund $402 million in limited partnership investments, $90 million in U.S. commercial mortgage loan investments and $29 million in private placement investments. As of June 30, 2018, we were committed to fund $30 million of bank loan investments which had not yet been drawn.

v3.10.0.1
Changes in Accumulated Other Comprehensive Income
6 Months Ended
Jun. 30, 2018
Changes in Accumulated Other Comprehensive Income

(12) Changes in Accumulated Other Comprehensive Income

The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated:

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses)
(1)
     Derivatives
qualifying as
hedges 
(2)
     Foreign
currency
translation
and other
adjustments
     Total  

Balances as of April 1, 2018

   $ 917      $ 1,927      $ (217    $ 2,627

OCI before reclassifications

     (193 )        (39 )        (98      (330

Amounts reclassified from (to) OCI

     6        (25 )        —          (19
  

 

 

    

 

 

    

 

 

    

 

 

 

Current period OCI

     (187 )        (64 )        (98      (349
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018 before noncontrolling interests

     730        1,863        (315      2,278
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (6 )        —          (43      (49
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018

   $ 736      $ 1,863      $ (272    $ 2,327
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses) 
(1)
     Derivatives
qualifying as
hedges 
(2)
     Foreign
currency
translation
and other
adjustments
     Total  

Balances as of April 1, 2017

   $ 1,243      $ 2,036      $ (183    $ 3,096

OCI before reclassifications

     (32 )        48        61      77

Amounts reclassified from (to) OCI

     (40 )        (20 )        —          (60
  

 

 

    

 

 

    

 

 

    

 

 

 

Current period OCI

     (72 )        28        61      17
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2017 before noncontrolling interests

     1,171        2,064        (122      3,113
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (9 )        —          27      18
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2017

   $ 1,180      $ 2,064      $ (149    $ 3,095
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses)
(1)
     Derivatives
qualifying as
hedges 
(2)
     Foreign
currency
translation
and other
adjustments
     Total  

Balances as of January 1, 2018

   $ 1,085      $ 2,065      $ (123    $ 3,027

Cumulative effect of changes in accounting

     164        14        (47      131

OCI before reclassifications

     (541 )        (165 )        (185      (891

Amounts reclassified from (to) OCI

     13        (51 )        —          (38
  

 

 

    

 

 

    

 

 

    

 

 

 

Current period OCI

     (528 )        (216 )        (185      (929
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018 before noncontrolling interests

     721        1,863        (355      2,229
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (15 )        —          (83      (98
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018

   $ 736      $ 1,863      $ (272    $ 2,327
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses)
(1)
    Derivatives
qualifying as
hedges
 (2)
    Foreign
currency
translation
and other
adjustments
    Total  

Balances as of January 1, 2017

   $ 1,262     $ 2,085     $ (253   $ 3,094

OCI before reclassifications

     (25 )       19       180     174

Amounts reclassified from (to) OCI

     (58 )       (40 )       —         (98
  

 

 

   

 

 

   

 

 

   

 

 

 

Current period OCI

     (83 )       (21 )       180     76
  

 

 

   

 

 

   

 

 

   

 

 

 

Balances as of June 30, 2017 before noncontrolling interests

     1,179       2,064       (73     3,170
  

 

 

   

 

 

   

 

 

   

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (1 )       —         76     75
  

 

 

   

 

 

   

 

 

   

 

 

 

Balances as of June 30, 2017

   $ 1,180     $ 2,064     $ (149   $ 3,095
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

The foreign currency translation and other adjustments balance included $(14) million and $(5) million, respectively, net of taxes of $5 million and $1 million, respectively, related to a net unrecognized postretirement benefit obligation as of June 30, 2018 and 2017. The amount also includes taxes of $(46) million and $23 million, respectively, related to foreign currency translation adjustments as of June 30, 2018 and 2017. These balances include the impact of adopting new accounting guidance related to stranded tax effects.

The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented:

 

    Amount reclassified from accumulated
other comprehensive income (loss)
   

Affected line item in the

consolidated statements

of income

    Three months ended
June 30,
    Six months ended
June 30,
   

(Amounts in millions)

  2018     2017     2018     2017    

Net unrealized investment (gains) losses:

         

Unrealized (gains) losses on investments (1)

  $ 8   $ (61   $ 16   $ (89   Net investment (gains) losses

(Provision) benefit for income taxes

    (2     21     (3     31   Provision for income taxes
 

 

 

   

 

 

   

 

 

   

 

 

   

Total

  $ 6   $ (40   $ 13   $ (58  
 

 

 

   

 

 

   

 

 

   

 

 

   

Derivatives qualifying as hedges:

         

Interest rate swaps hedging assets

  $ (39   $ (31   $ (74   $ (61   Net investment income

Interest rate swaps hedging assets

    —         (1     (5     (2   Net investment (gains) losses

Inflation indexed swaps

    —         —         —         —       Net investment income

Benefit for income taxes

    14     12     28     23   Provision for income taxes
 

 

 

   

 

 

   

 

 

   

 

 

   

Total

  $ (25   $ (20   $ (51   $ (40  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

(1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.
v3.10.0.1
Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2018
Condensed Consolidating Financial Information

(13) Condensed Consolidating Financial Information

Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior and subordinated notes and the holders of the senior and subordinated notes, on an unsecured unsubordinated and subordinated basis, respectively, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, each outstanding series of senior notes and outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior and subordinated notes indentures in respect of such senior and subordinated notes. Genworth Holdings is a direct, 100% owned subsidiary of Genworth Financial.

The following condensed consolidating financial information of Genworth Financial and its direct and indirect subsidiaries has been prepared pursuant to rules regarding the preparation of consolidating financial information of Regulation S-X.

The condensed consolidating financial information presents the condensed consolidating balance sheet information as of June 30, 2018 and December 31, 2017, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and six months ended June 30, 2018 and 2017 and the condensed consolidating cash flow statement information for the six months ended June 30, 2018 and 2017.

 

The condensed consolidating financial information reflects Genworth Financial (“Parent Guarantor”), Genworth Holdings (“Issuer”) and each of Genworth Financial’s other direct and indirect subsidiaries (the “All Other Subsidiaries”) on a combined basis, none of which guarantee the senior notes or subordinated notes, as well as the eliminations necessary to present Genworth Financial’s financial information on a consolidated basis and total consolidated amounts.

The accompanying condensed consolidating financial information is presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries and intercompany activity.

The following table presents the condensed consolidating balance sheet information as of June 30, 2018:

 

(Amounts in millions)

  Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Assets

         

Investments:

         

Fixed maturity securities available-for-sale, at fair value

  $ —       $ —       $ 60,232   $ (200   $ 60,032

Equity securities, at fair value

    —         —         758     —         758

Commercial mortgage loans

    —         —         6,480     —         6,480

Restricted commercial mortgage loans related to securitization entities

    —         —         90     —         90

Policy loans

    —         —         1,872     —         1,872

Other invested assets

    —         78     1,584     (12     1,650

Investments in subsidiaries

    13,052     12,180     —         (25,232     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

    13,052     12,258     71,016     (25,444     70,882

Cash, cash equivalents and restricted cash

    —         547     1,696     —         2,243

Accrued investment income

    —         —         606     (4     602

Deferred acquisition costs

    —         —         3,086     —         3,086

Intangible assets and goodwill

    —         —         354     —         354

Reinsurance recoverable

    —         —         17,385     —         17,385

Other assets

    5     50     519     —         574

Intercompany notes receivable

    —         165     1     (166     —    

Deferred tax assets

    (15     918     (302     —         601

Separate account assets

    —         —         6,750     —         6,750
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 13,042   $ 13,938   $ 101,111   $ (25,614   $ 102,477
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and equity

         

Liabilities:

         

Future policy benefits

  $ —       $ —       $ 37,913   $ —       $ 37,913

Policyholder account balances

    —         —         23,366     —         23,366

Liability for policy and contract claims

    —         —         9,665     —         9,665

Unearned premiums

    —         —         3,669     —         3,669

Other liabilities

    7     167     1,808     (17     1,965

Intercompany notes payable

    125     200     41     (366     —    

Borrowings related to securitization entities

    —         —         28     —         28

Non-recourse funding obligations

    —         —         310     —         310

Long-term borrowings

    —         3,571     476     —         4,047

Deferred tax liability

    —         —         23     —         23

Separate account liabilities

    —         —         6,750     —         6,750
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    132     3,938     84,049     (383     87,736
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

         

Common stock

    1     —         3     (3     1

Additional paid-in capital

    11,981     9,095     18,420     (27,515     11,981

Accumulated other comprehensive income (loss)

    2,327     2,414     2,338     (4,752     2,327

Retained earnings

    1,301     (1,509     (5,830     7,339     1,301

Treasury stock, at cost

    (2,700     —         —         —         (2,700
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    12,910     10,000     14,931     (24,931     12,910

Noncontrolling interests

    —         —         2,131     (300     1,831
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    12,910     10,000     17,062     (25,231     14,741
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 13,042   $ 13,938   $ 101,111   $ (25,614   $ 102,477
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating balance sheet information as of December 31, 2017:

 

(Amounts in millions)

  Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Assets

         

Investments:

         

Fixed maturity securities available-for-sale, at fair value

  $ —       $ —       $ 62,725   $ (200   $ 62,525

Equity securities, at fair value

    —         —         820     —         820

Commercial mortgage loans

    —         —         6,341     —         6,341

Restricted commercial mortgage loans related to securitization entities

    —         —         107     —         107

Policy loans

    —         —         1,786     —         1,786

Other invested assets

    —         75     1,742     (4     1,813

Investments in subsidiaries

    13,561     12,867     —         (26,428     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

    13,561     12,942     73,521     (26,632     73,392

Cash, cash equivalents and restricted cash

    —         795     2,080     —         2,875

Accrued investment income

    —         —         647     (3     644

Deferred acquisition costs

    —         —         2,329     —         2,329

Intangible assets and goodwill

    —         —         301     —         301

Reinsurance recoverable

    —         —         17,569     —         17,569

Other assets

    3     54     397     (1     453

Intercompany notes receivable

    —         155     59     (214     —    

Deferred tax assets

    27     —         477     —         504

Separate account assets

    —         —         7,230     —         7,230
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 13,591   $ 13,946   $ 104,610   $ (26,850   $ 105,297
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and equity

         

Liabilities:

         

Future policy benefits

  $ —       $ —       $ 38,472   $ —       $ 38,472

Policyholder account balances

    —         —         24,195     —         24,195

Liability for policy and contract claims

    —         —         9,594     —         9,594

Unearned premiums

    —         —         3,967     —         3,967

Other liabilities

    41     119     1,759     (9     1,910

Intercompany notes payable

    132     259     23     (414     —    

Borrowings related to securitization entities

    —         —         40     —         40

Non-recourse funding obligations

    —         —         310     —         310

Long-term borrowings

    —         3,724     500     —         4,224

Deferred tax liability

    —         (807     834     —         27

Separate account liabilities

    —         —         7,230     —         7,230
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    173     3,295     86,924     (423     89,969
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

         

Common stock

    1     —         3     (3     1

Additional paid-in capital

    11,977     9,096     18,420     (27,516     11,977

Accumulated other comprehensive income (loss)

    3,027     3,037     3,051     (6,088     3,027

Retained earnings

    1,113     (1,482     (5,998     7,480     1,113

Treasury stock, at cost

    (2,700     —         —         —         (2,700
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    13,418     10,651     15,476     (26,127     13,418

Noncontrolling interests

    —         —         2,210     (300     1,910
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    13,418     10,651     17,686     (26,427     15,328
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 13,591   $ 13,946   $ 104,610   $ (26,850   $ 105,297
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the condensed consolidating income statement information for the three months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Revenues:

          

Premiums

   $ —       $ —       $ 1,136   $ —       $ 1,136

Net investment income

     —         4     828     (4     828

Net investment gains (losses)

     —         (8     (6     —         (14

Policy fees and other income

     —         1     209     (1     209
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     —         (3     2,167     (5     2,159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefits and expenses:

          

Benefits and other changes in policy reserves

     —         —         1,205     —         1,205

Interest credited

     —         —         152     —         152

Acquisition and operating expenses, net of deferrals

     7     —         246     —         253

Amortization of deferred acquisition costs and intangibles

     —         —         112     —         112

Interest expense

     1     70     11     (5     77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     8     70     1,726     (5     1,799
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (8     (73     441     —         360

Provision (benefit) for income taxes

     32     (14     93     —         111

Equity in income of subsidiaries

     230     151     —         (381     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     190     92     348     (381     249

Loss from discontinued operations, net of taxes

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     190     92     348     (381     249

Less: net income attributable to noncontrolling interests

     —         —         59     —         59
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 190   $ 92   $ 289   $ (381   $ 190
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating income statement information for the three months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
     Eliminations     Consolidated  

Revenues:

           

Premiums

   $ —       $ —       $ 1,111    $ —       $ 1,111

Net investment income

     (1     2     803      (3     801

Net investment gains (losses)

     —         (5     106      —         101

Policy fees and other income

     —         (1     211      —         210
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     (1     (4     2,231      (3     2,223
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Benefits and expenses:

           

Benefits and other changes in policy reserves

     —         —         1,206      —         1,206

Interest credited

     —         —         163      —         163

Acquisition and operating expenses, net of deferrals

     15     —         225      —         240

Amortization of deferred acquisition costs and intangibles

     —         —         139      —         139

Interest expense

     —         66     11      (3     74
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total benefits and expenses

     15     66     1,744      (3     1,822
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (16     (70     487      —         401

Provision (benefit) for income taxes

     (7     (24     161      —         130

Equity in income of subsidiaries

     211     145     —          (356     —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations

     202     99     326      (356     271

Loss from discontinued operations, net of taxes

     —         —         —          —         —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income

     202     99     326      (356     271

Less: net income attributable to noncontrolling interests

     —         —         69      —         69
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 202   $ 99   $ 257    $ (356   $ 202
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

The following table presents the condensed consolidating income statement information for the six months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Revenues:

          

Premiums

   $ —       $ —       $ 2,276   $ —       $ 2,276

Net investment income

     (1     7     1,633     (7     1,632

Net investment gains (losses)

     —         (2     (43     —         (45

Policy fees and other income

     —         1     412     (2     411
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     (1     6     4,278     (9     4,274
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefits and expenses:

          

Benefits and other changes in policy reserves

     —         —         2,516     —         2,516

Interest credited

     —         —         308     —         308

Acquisition and operating expenses, net of deferrals

     14     —         479     —         493

Amortization of deferred acquisition costs and intangibles

     —         —         216     —         216

Interest expense

     1     138     23     (9     153
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     15     138     3,542     (9     3,686
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (16     (132     736     —         588

Provision (benefit) for income taxes

     38     (31     167     —         174

Equity in income of subsidiaries

     356     196     —         (552     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     302     95     569     (552     414

Loss from discontinued operations, net of taxes

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     302     95     569     (552     414

Less: net income attributable to noncontrolling interests

     —         —         112     —         112
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 302   $ 95   $ 457   $ (552   $ 302
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating income statement information for the six months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
     Eliminations     Consolidated  

Revenues:

           

Premiums

   $ —       $ —       $ 2,247    $ —       $ 2,247

Net investment income

     (2     3     1,597      (7     1,591

Net investment gains (losses)

     —         (8     143      —         135

Policy fees and other income

     —         (1     422      —         421
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     (2     (6     4,409      (7     4,394
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Benefits and expenses:

           

Benefits and other changes in policy reserves

     —         —         2,452      —         2,452

Interest credited

     —         —         330      —         330

Acquisition and operating expenses, net of deferrals

     28     —         482      —         510

Amortization of deferred acquisition costs and intangibles

     —         —         233      —         233

Interest expense

     —         121     22      (7     136
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total benefits and expenses

     28     121     3,519      (7     3,661
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (30     (127     890      —         733

Provision (benefit) for income taxes

     (4     (44     294      —         246

Equity in income of subsidiaries

     383     268     —          (651     —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations

     357     185     596      (651     487

Loss from discontinued operations, net of taxes

     —         —         —          —         —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income

     357     185     596      (651     487

Less: net income attributable to noncontrolling interests

     —         —         130      —         130
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 357   $ 185   $ 466    $ (651   $ 357
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 190   $ 92   $ 348   $ (381   $ 249

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (179     (167     (185     346     (185

Net unrealized gains (losses) on other-than-temporarily impaired securities

     (2     (1     (2     3     (2

Derivatives qualifying as hedges

     (64     (64     (68     132     (64

Foreign currency translation and other adjustments

     (55     (46     (97     100     (98
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (300     (278     (352     581     (349
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

     (110     (186     (4     200     (100

Less: comprehensive income attributable to noncontrolling interests

     —         —         10     —         10
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders

   $ (110   $ (186   $ (14   $ 200   $ (110
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 202   $ 99   $ 326   $ (356   $ 271

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (63     (70     (71     132     (72

Derivatives qualifying as hedges

     28     28     32     (60     28

Foreign currency translation and other adjustments

     34     29     61     (63     61
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (1     (13     22     9     17
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     201     86     348     (347     288

Less: comprehensive income attributable to noncontrolling interests

     —         —         87     —         87
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income available to Genworth Financial, Inc.’s common stockholders

   $ 201   $ 86   $ 261   $ (347   $ 201
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 302   $ 95   $ 569   $ (552   $ 414

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (511     (462     (526     973     (526

Net unrealized gains (losses) on other-than-temporarily impaired securities

     (2     (1     (2     3     (2

Derivatives qualifying as hedges

     (216     (217     (233     450     (216

Foreign currency translation and other adjustments

     (102     (82     (185     184     (185
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (831     (762     (946     1,610     (929
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

     (529     (667     (377     1,058     (515

Less: comprehensive income attributable to noncontrolling interests

     —         —         14     —         14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders

   $ (529   $ (667   $ (391   $ 1,058   $ (529
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 357   $ 185   $ 596   $ (651   $ 487

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (83     (101     (84     184     (84

Net unrealized gains (losses) on other-than-temporarily impaired securities

     1     1     1     (2     1

Derivatives qualifying as hedges

     (21     (21     (20     41     (21

Foreign currency translation and other adjustments

     104     97     180     (201     180
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     1     (24     77     22     76
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     358     161     673     (629     563

Less: comprehensive income attributable to noncontrolling interests

     —         —         205     —         205
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income available to Genworth Financial, Inc.’s common stockholders

   $ 358   $ 161   $ 468   $ (629   $ 358
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2018:

 

(Amounts in millions)

  Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Cash flows from (used by) operating activities:

         

Net income

  $ 302   $ 95   $ 569   $ (552   $ 414

Adjustments to reconcile net income to net cash from (used by) operating activities:

         

Equity in income from subsidiaries

    (356     (196     —         552     —    

Dividends from subsidiaries

    50     91     (141     —         —    

Amortization of fixed maturity securities discounts and premiums

    —         3     (65     —         (62

Net investment losses

    —         2     43     —         45

Charges assessed to policyholders

    —         —         (359     —         (359

Acquisition costs deferred

    —         —         (40     —         (40

Amortization of deferred acquisition costs and intangibles

    —         —         216     —         216

Deferred income taxes

    42     (117     158     —         83

Trading securities, limited partnerships and derivative instruments

    —         22     (217     —         (195

Stock-based compensation expense

    15     —         1     —         16

Change in certain assets and liabilities:

         

Accrued investment income and other assets

    (1     59     (147     —         (89

Insurance reserves

    —         —         691     —         691

Current tax liabilities

    (27     87     (97     —         (37

Other liabilities, policy and contract claims and other policy-related balances

    (15     (50     (49     (8     (122
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash from (used by) operating activities

    10     (4     563     (8     561
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used by investing activities:

         

Proceeds from maturities and repayments of investments:

         

Fixed maturity securities

    —         —         1,979     —         1,979

Commercial mortgage loans

    —         —         350     —         350

Restricted commercial mortgage loans related to securitization entities

    —         —         16     —         16

Proceeds from sales of investments:

         

Fixed maturity and equity securities

    —         —         1,920     —         1,920

Purchases and originations of investments:

         

Fixed maturity and equity securities

    —         —         (4,082     —         (4,082

Commercial mortgage loans

    —         —         (489     —         (489

Other invested assets, net

    —         —         85     8     93

Policy loans, net

    —         —         15     —         15

Intercompany notes receivable

    —         (10     58     (48     —    

Capital contributions to subsidiaries

    (1     —         1     —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

    (1     (10     (147     (40     (198
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used by financing activities:

         

Deposits to universal life and investment contracts

    —         —         503     —         503

Withdrawals from universal life and investment contracts

    —         —         (1,177     —         (1,177

Proceeds from the issuance of long-term debt

    —         441     —         —         441

Repayment and repurchase of long-term debt

    —         (597     —         —         (597

Repayment of borrowings related to securitization entities

    —         —         (12     —         (12

Repurchase of subsidiary shares

    —         —         (49     —         (49

Dividends paid to noncontrolling interests

    —         —         (50     —         (50

Intercompany notes payable

    (7     (59     18     48     —    

Other, net

    (2     (19     19     —         (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by financing activities

    (9     (234     (748     48     (943
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

    —         —         (52     —         (52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash, cash equivalents and restricted cash

    —         (248     (384     —         (632

Cash, cash equivalents and restricted cash at beginning of period

    —         795     2,080     —         2,875
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

  $ —       $ 547   $ 1,696   $ —       $ 2,243
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Cash flows from (used by) operating activities:

          

Net income

   $ 357   $ 185   $ 596   $ (651   $ 487

Adjustments to reconcile net income to net cash from (used by) operating activities:

          

Equity in income from subsidiaries

     (383     (268     —         651     —    

Dividends from subsidiaries

     —         64     (64     —         —    

Amortization of fixed maturity securities discounts and premiums

     —         3     (79     —         (76

Net investment (gains) losses

     —         8     (143     —         (135

Charges assessed to policyholders

     —         —         (365     —         (365

Acquisition costs deferred

     —         —         (44     —         (44

Amortization of deferred acquisition costs and intangibles

     —         —         233     —         233

Deferred income taxes

     6     (14     174     —         166

Trading securities, limited partnerships and derivative instruments

     —         1     430     —         431

Stock-based compensation expense

     14     —         4     —         18

Change in certain assets and liabilities:

          

Accrued investment income and other assets

     (6     (30     12     1     (23

Insurance reserves

     —         —         806     —         806

Current tax liabilities

     (4     (88     60     —         (32

Other liabilities, policy and contract claims and other policy-related balances

     (9     64     (210     (3     (158
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash from (used by) operating activities

     (25     (75     1,410     (2     1,308
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used by investing activities:

          

Proceeds from maturities and repayments of investments:

          

Fixed maturity securities

     —         —         2,358     —         2,358

Commercial mortgage loans

     —         —         307     —         307

Restricted commercial mortgage loans related to securitization entities

     —         —         11     —         11

Proceeds from sales of investments:

          

Fixed maturity and equity securities

     —         —         2,587     —         2,587

Purchases and originations of investments:

          

Fixed maturity and equity securities

     —         (46     (4,687     —         (4,733

Commercial mortgage loans

     —         —         (431     —         (431

Other invested assets, net

     —         —         (640     2     (638

Policy loans, net

     —         —         21     —         21

Intercompany notes receivable

     —         (51     47     4     —    

Capital contributions to subsidiaries

     (7     —         7     —         —    

Payments for business purchased, net of cash acquired

     (7     —         2     —         (5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

     (14     (97     (418     6     (523
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from (used by) financing activities:

          

Deposits to universal life and investment contracts

     —         —         429     —         429

Withdrawals from universal life and investment contracts

     —         —         (1,091     —         (1,091

Repayment of borrowings related to securitization entities

     —         —         (12     —         (12

Dividends paid to noncontrolling interests

     —         —         (52     —         (52

Intercompany notes payable

     40     (47     11     (4     —    

Other, net

     (1     (21     (7     —         (29
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash from (used by) financing activities

     39     (68     (722     (4     (755
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     —         —         39     —         39
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash, cash equivalents and restricted cash

     —         (240     309     —         69

Cash, cash equivalents and restricted cash at beginning of period

     —         998     1,786     —         2,784
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ —       $ 758   $ 2,095   $ —       $ 2,853
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Our insurance company subsidiaries are restricted by state and foreign laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders and contractholders, not stockholders. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on statutory results as of December 31, 2017, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $500 million to us in 2018 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $500 million is unrestricted, our insurance subsidiaries may not pay dividends to us in 2018 at this level if they need to retain capital for growth and to meet capital requirements and desired thresholds. As of June 30, 2018, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $12.6 billion and $11.9 billion, respectively.

v3.10.0.1
Accounting Changes (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Pronouncements Recently Adopted

Accounting Pronouncements Recently Adopted

On January 1, 2018, we early adopted new accounting guidance on the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”), or “stranded tax effects.” Under current U.S. GAAP, deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the period that the changes were enacted. This also includes situations in which the related tax effects were originally recognized in other comprehensive income as opposed to income from continuing operations. The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance:

 

     Accumulated other comprehensive income (loss)              

(Amounts in millions)

   Net unrealized
investment
gains (losses)
    Derivatives
qualifying
as hedges
     Foreign currency
translation
and other
adjustments
    Retained
earnings
    Total
stockholders’
equity
 

Deferred taxes:

           

Net unrealized gains on investment securities

   $ 192   $ —        $ —       $ (192   $ —    

Net unrealized gains on derivatives

     —         12      —         (12     —    

Investment in foreign subsidiaries

     (3     —          (46     49     —    

Accrued commission and general expenses

     —         —          (1     1     —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cumulative effect of changes in accounting

   $ 189   $ 12    $ (47   $ (154   $ —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

The accounting for the temporary differences related to investment in foreign subsidiaries recorded in accumulated other comprehensive income (loss) at adoption of the TCJA, were provisional. Therefore, additional reclassification adjustments may be recorded in future periods as tax effects of the TCJA on related temporary differences are finalized. However, no reclassification adjustments were recorded in the second quarter of 2018. Other than those effects related to the TCJA, our policy is to release stranded tax effects from accumulated other comprehensive income (loss) using the portfolio approach for items related to investments and derivatives, and upon disposition of a subsidiary for items related to outside basis differences.

On January 1, 2018, we early adopted new accounting guidance related to the hedge accounting model. The new guidance amends the hedge accounting model to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting and removed the requirements to separately measure and report hedge ineffectiveness. We adopted this new accounting using the modified retrospective method and recognized a gain of $2 million in accumulated other comprehensive income with a corresponding decrease to retained earnings at adoption. This gain was the cumulative amount of hedge ineffectiveness related to active hedges that was previously included in earnings.

On January 1, 2018, we adopted new accounting guidance that clarifies when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification as a liability or equity of the share-based compensation. We adopted this new accounting guidance prospectively and therefore, the guidance did not have any impact at adoption.

On January 1, 2018, we adopted new accounting guidance that clarifies the scope and accounting for gains and losses from the derecognition of nonfinancial assets or an in substance nonfinancial asset that is not a business and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control. We adopted this new accounting guidance using the modified retrospective method, which had no impact on our consolidated financial statements at adoption.

 

On January 1, 2018, we early adopted new accounting guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. We adopted this new accounting guidance prospectively and will apply it to our 2018 goodwill impairment test.

On January 1, 2018, we adopted new accounting guidance related to the classification and presentation of changes in restricted cash. The new guidance requires that changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents be shown in the statements of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively and modified the line item descriptions on our consolidated balance sheets and statements of cash flows in our consolidated financial statements. The other impacts from this new accounting guidance did not have a significant impact on our consolidated financial statements or disclosures.

On January 1, 2018, we adopted new accounting guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements or disclosures at adoption.

On January 1, 2018, we adopted new accounting guidance related to the classification of certain cash payments and cash receipts on our statement of cash flows. The guidance reduces diversity in practice related to eight specific cash flow issues. We adopted this new accounting guidance retrospectively. We will reclassify a $20 million make-whole premium that was incurred in the first quarter of 2016 previously included in the operating activities section of the statement of cash flows, within the line item “other liabilities, policy and contract claims and other policy-related balances” to the financing activities section within the line item “repayment and repurchase of long-term debt” in our 2018 annual consolidated financial statements filed on Form 10-K. The reclassification will result in an increase in net cash used by financing activities and an increase in net cash from operating activities. The remaining specific cash flow issues did not have a significant impact on our consolidated financial statements.

On January 1, 2018, we adopted new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, are measured at fair value with changes in fair value recognized in net income. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with other deferred tax assets. We adopted this new accounting guidance using the modified retrospective method and reclassified, after adjustments for deferred acquisition costs (“DAC”) and other intangible amortization and certain benefit reserves, taxes and noncontrolling interests, $25 million of gains related to equity securities from accumulated other comprehensive income and $17 million of gains related to limited partnerships previously recorded at cost to cumulative effect of change in accounting within retained earnings.

On January 1, 2018, we adopted new accounting guidance related to revenue from contracts with customers. The key principle of the new guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. Insurance contracts are specifically excluded from this new guidance. The Financial Accounting Standards Board (“the FASB”) has clarified the scope that all of our insurance contracts, including mortgage insurance and investment contracts are excluded from the scope of this new guidance. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements at adoption.

Accounting Pronouncements Not Yet Adopted

Accounting Pronouncements Not Yet Adopted

In June 2018, the FASB issued new guidance related to accounting for nonemployee share-based payments. The guidance aligns the measurement and classification of share-based payments to nonemployees issued in exchange for goods or services with the guidance for share-based payments to employees, with certain exceptions. The guidance is currently effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. While we are still evaluating the full impact, at this time we do not expect any impacts from this new guidance on our consolidated financial statements.

In March 2017, the FASB issued new guidance shortening the amortization period of certain callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. While we are still evaluating the full impact, at this time we do not expect any significant impact from this guidance on our consolidated financial statements.

In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The guidance requires that entities recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value, which would primarily include our commercial mortgage loans and reinsurance receivables. The new guidance retains most of the existing impairment guidance for available-for-sale debt securities but amends the presentation of credit losses to be presented as an allowance as opposed to a write-down and permits the reversal of credit losses when reassessing changes in the credit losses each reporting period. The new guidance is effective for us on January 1, 2020, with early adoption permitted beginning January 1, 2019. Upon adoption, the modified retrospective method will be used and a cumulative effect adjustment in retained earnings as of the beginning of the year of adoption will be recorded. We are in process of evaluating the impact the guidance may have on our consolidated financial statements.

In February 2016, the FASB issued new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-to-use asset and a corresponding liability on the balance sheet. The guidance is effective for us on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the period adopted in the financial statements, with certain practical expedients available, which we are in the processes of evaluating. While we are still evaluating the full impact, at this time we do not expect any significant impact from this guidance on our consolidated financial statements.

v3.10.0.1
Accounting Changes (Tables)
6 Months Ended
Jun. 30, 2018
Summary of Components for Cumulative Effect Adjustment

The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance:

 

     Accumulated other comprehensive income (loss)              

(Amounts in millions)

   Net unrealized
investment
gains (losses)
    Derivatives
qualifying
as hedges
     Foreign currency
translation
and other
adjustments
    Retained
earnings
    Total
stockholders’
equity
 

Deferred taxes:

           

Net unrealized gains on investment securities

   $ 192   $ —        $ —       $ (192   $ —    

Net unrealized gains on derivatives

     —         12      —         (12     —    

Investment in foreign subsidiaries

     (3     —          (46     49     —    

Accrued commission and general expenses

     —         —          (1     1     —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cumulative effect of changes in accounting

   $ 189   $ 12    $ (47   $ (154   $ —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

v3.10.0.1
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2018
Earnings Per Share

Basic and diluted earnings per share are calculated by dividing each income category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions, except per share amounts)

   2018      2017      2018      2017  

Weighted-average shares used in basic earnings per share calculations

     500.6      499.0      500.1      498.8

Potentially dilutive securities:

           

Stock options, restricted stock units and stock appreciation rights

     2.0      2.2      2.5      2.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted-average shares used in diluted earnings per share calculations

     502.6      501.2      502.6      501.1
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations:

           

Income from continuing operations

   $ 249    $ 271    $ 414    $ 487

Less: income from continuing operations attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

   $ 190    $ 202    $ 302    $ 357
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.72
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.71
  

 

 

    

 

 

    

 

 

    

 

 

 

Loss from discontinued operations:

           

Loss from discontinued operations, net of taxes

   $ —        $ —        $ —        $ —    

Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic per share

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted per share

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income:

           

Income from continuing operations

   $ 249    $ 271    $ 414    $ 487

Loss from discontinued operations, net of taxes

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     249      271      414      487

Less: net income attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 190    $ 202    $ 302    $ 357
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.72
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted per share

   $ 0.38    $ 0.40    $ 0.60    $ 0.71
  

 

 

    

 

 

    

 

 

    

 

 

 

 

v3.10.0.1
Investments (Tables)
6 Months Ended
Jun. 30, 2018
Net Investment Income

Sources of net investment income were as follows for the periods indicated:

 

    Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

  2018     2017     2018     2017  

Fixed maturity securities—taxable

  $ 651   $ 649   $ 1,286   $ 1,290

Fixed maturity securities—non-taxable

    3     3     6     6

Equity securities

    10     9     20     17

Commercial mortgage loans

    77     76     159     153

Restricted commercial mortgage loans related to securitization entities

    2     2     4     4

Policy loans

    41     39     84     81

Other invested assets

    53     35     92     67

Restricted other invested assets related to securitization entities

    —         1     —         1

Cash, cash equivalents and short-term investments

    14     10     26     16
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment income before expenses and fees

    851     824     1,677     1,635

Expenses and fees

    (23     (23     (45     (44
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

  $ 828   $ 801   $ 1,632   $ 1,591
 

 

 

   

 

 

   

 

 

   

 

 

 

 

Net Investment Gains (Losses)

The following table sets forth net investment gains (losses) for the periods indicated:

 

    Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

  2018     2017     2018     2017  

Available-for-sale securities:

       

Realized gains

  $ 13   $ 74   $ 20   $ 137

Realized losses

    (21     (11     (37     (45
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gains (losses) on available-for-sale securities

    (8     63     (17     92
 

 

 

   

 

 

   

 

 

   

 

 

 

Impairments:

       

Total other-than-temporary impairments

    —         (2     —         (3

Portion of other-than-temporary impairments included in other comprehensive income (loss)

    —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

 

Net other-than-temporary impairments

    —         (2     —         (3
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gains (losses) on equity securities sold

    8     —         10     —    

Net unrealized gains (losses) on equity securities still held

    3     —         (15     —    

Trading securities

    —         1     —         1

Limited partnerships

    (2     —         5     —    

Commercial mortgage loans

    —         1     —         2

Net gains (losses) related to securitization entities

    —         2     —         4

Derivative instruments (1)

    (15     36     (28     39
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses)

  $ (14   $ 101   $ (45   $ 135
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).
Credit Losses Recognized in Net Income

The following represents the activity for credit losses recognized in net income on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (“OCI”) as of and for the periods indicated:

 

     As of or for the
three months ended
June 30,
     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Beginning balance

   $ 28    $ 41    $ 32    $ 42

Reductions:

           

Securities sold, paid down or disposed

     (3      (3      (7      (4
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

   $ 25    $ 38    $ 25    $ 38
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Unrealized Investment Gains and Losses

Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated:

 

(Amounts in millions)

  June 30,
2018
    December 31,
2017
 

Net unrealized gains (losses) on investment securities:

   

Fixed maturity securities

  $ 2,555   $ 5,125

Equity securities

    —         69
 

 

 

   

 

 

 

Subtotal (1)

    2,555     5,194

Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves

    (1,549     (3,451

Income taxes, net

    (230     (583
 

 

 

   

 

 

 

Net unrealized investment gains (losses)

    776     1,160

Less: net unrealized investment gains (losses) attributable to noncontrolling interests

    40     75
 

 

 

   

 

 

 

Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.

  $ 736   $ 1,085
 

 

 

   

 

 

 

 

(1) Excludes foreign exchange.
Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in Accumulated Other Comprehensive Income (Loss)

The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated:

 

     As of or for the
three months ended
June 30,
 

(Amounts in millions)

   2018      2017  

Beginning balance

   $ 917    $ 1,243

Unrealized gains (losses) arising during the period:

     

Unrealized gains (losses) on investment securities

     (905      995

Adjustment to deferred acquisition costs

     467      (741

Adjustment to present value of future profits

     20      (28

Adjustment to sales inducements

     9      (6

Adjustment to benefit reserves

     162      (269

Provision for income taxes

     54      17
  

 

 

    

 

 

 

Change in unrealized gains (losses) on investment securities

     (193      (32

Reclassification adjustments to net investment (gains) losses, net of taxes of $(2) and $21

     6      (40
  

 

 

    

 

 

 

Change in net unrealized investment gains (losses)

     (187      (72

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     (6      (9
  

 

 

    

 

 

 

Ending balance

   $ 736    $ 1,180
  

 

 

    

 

 

 

 

     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2018      2017  

Beginning balance

   $ 1,085    $ 1,262

Cumulative effect of changes in accounting:

     

Stranded tax effects

     189      —    

Recognition and measurement of financial assets and liabilities, net of taxes of $18 and $—

     (25      —    
  

 

 

    

 

 

 

Total cumulative effect of changes in accounting

     164      —    
  

 

 

    

 

 

 

Unrealized gains (losses) arising during the period:

     

Unrealized gains (losses) on investment securities

     (2,586      1,387

Adjustment to deferred acquisition costs

     909      (1,046

Adjustment to present value of future profits

     56      (33

Adjustment to sales inducements

     29      (11

Adjustment to benefit reserves

     902      (337

Provision for income taxes

     149      15
  

 

 

    

 

 

 

Change in unrealized gains (losses) on investment securities

     (541      (25

Reclassification adjustments to net investment (gains) losses, net of taxes of $(3) and $31

     13      (58
  

 

 

    

 

 

 

Change in net unrealized investment gains (losses)

     (528      (83

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     (15      (1
  

 

 

    

 

 

 

Ending balance

   $ 736    $ 1,180
  

 

 

    

 

 

 

 

(d) Fixed Maturity and Equity Securities

Fixed Maturity and Equity Securities

As of June 30, 2018, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows:

 

          Gross unrealized gains     Gross unrealized losses        

(Amounts in millions)

  Amortized
cost or
cost
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Fair
value
 

Fixed maturity securities:

           

U.S. government, agencies and government-sponsored enterprises

  $ 4,733   $ 632   $ —       $ (12   $ —       $ 5,353

State and political subdivisions

    2,699     195     —         (39     —         2,855

Non-U.S. government

    2,347     69     —         (36     —         2,380

U.S. corporate:

           

Utilities

    4,550     395     —         (66     —         4,879

Energy

    2,160     139     —         (29     —         2,270

Finance and insurance

    6,095     288     —         (108     —         6,275

Consumer—non-cyclical

    4,298     323     —         (80     —         4,541

Technology and communications

    2,709     133     —         (61     —         2,781

Industrial

    1,244     59     —         (20     —         1,283

Capital goods

    2,216     185     —         (40     —         2,361

Consumer—cyclical

    1,538     66     —         (31     —         1,573

Transportation

    1,200     83     —         (31     —         1,252

Other

    337     18     —         (1     —         354
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    26,347     1,689     —         (467     —         27,569
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

           

Utilities

    962     22     —         (22     —         962

Energy

    1,316     101     —         (18     —         1,399

Finance and insurance

    2,471     102     —         (36     —         2,537

Consumer—non-cyclical

    709     11     —         (18     —         702

Technology and communications

    992     30     —         (15     —         1,007

Industrial

    943     46     —         (12     —         977

Capital goods

    603     15     —         (7     —         611

Consumer—cyclical

    527     2     —         (7     —         522

Transportation

    690     48     —         (11     —         727

Other

    2,454     128     —         (24     —         2,558
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    11,667     505     —         (170     —         12,002
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    3,426     156     13     (28     —         3,567

Commercial mortgage-backed

    3,387     46     —         (84     —         3,349

Other asset-backed

    2,966     7     1     (17     —         2,957
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total available-for-sale fixed maturity securities

  $ 57,572   $ 3,299   $ 14   $ (853   $ —       $ 60,032
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

As of December 31, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

 

          Gross unrealized gains     Gross unrealized losses        

(Amounts in millions)

  Amortized
cost or
cost
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Not other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
    Fair
value
 

Fixed maturity securities:

           

U.S. government, agencies and government-sponsored enterprises

  $ 4,681   $ 870   $ —       $ (3   $ —       $ 5,548

State and political subdivisions

    2,678     270     —         (22     —         2,926

Non-U.S. government

    2,147     106     —         (20     —         2,233

U.S. corporate:

           

Utilities

    4,396     611     —         (9     —         4,998

Energy

    2,239     227     —         (8     —         2,458

Finance and insurance

    5,984     556     —         (12     —         6,528

Consumer—non-cyclical

    4,314     530     —         (13     —         4,831

Technology and communications

    2,665     192     —         (12     —         2,845

Industrial

    1,241     106     —         (1     —         1,346

Capital goods

    2,087     273     —         (5     —         2,355

Consumer—cyclical

    1,493     116     —         (4     —         1,605

Transportation

    1,160     134     —         (3     —         1,291

Other

    355     25     —         (1     —         379
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    25,934     2,770     —         (68     —         28,636
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

           

Utilities

    979     42     —         (4     —         1,017

Energy

    1,337     158     —         (5     —         1,490

Finance and insurance

    2,567     174     —         (6     —         2,735

Consumer—non-cyclical

    686     30     —         (4     —         712

Technology and communications

    913     71     —         (2     —         982

Industrial

    958     88     —         (2     —         1,044

Capital goods

    614     33     —         (2     —         645

Consumer—cyclical

    532     9     —         (1     —         540

Transportation

    656     68     —         (3     —         721

Other

    2,536     193     —         (4     —         2,725
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    11,778     866     —         (33     —         12,611
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    3,831     223     14     (11     —         4,057

Commercial mortgage-backed

    3,387     94     2     (37     —         3,446

Other asset-backed

    3,056     17     1     (6     —         3,068
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    57,492     5,216     17     (200     —         62,525

Equity securities

    756     72     —         (8     —         820
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total available-for-sale securities

  $ 58,248   $ 5,288   $ 17   $ (208   $ —       $ 63,345
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

Maturity Distribution of Fixed Maturity Securities

The scheduled maturity distribution of fixed maturity securities as of June 30, 2018 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Amounts in millions)

   Amortized
cost or
cost
     Fair
value
 

Due one year or less

   $ 1,692    $ 1,701

Due after one year through five years

     11,006      11,149

Due after five years through ten years

     12,517      12,601

Due after ten years

     22,578      24,708
  

 

 

    

 

 

 

Subtotal

     47,793      50,159

Residential mortgage-backed

     3,426      3,567

Commercial mortgage-backed

     3,387      3,349

Other asset-backed

     2,966      2,957
  

 

 

    

 

 

 

Total

   $ 57,572    $ 60,032
  

 

 

    

 

 

 

 

Aging of Past Due Commercial Mortgage Loans by Property Type

The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   31 - 60 days
past due
    61 - 90 days
past due
    Greater than
90 days past
due
    Total
past due
    Current     Total  

Property type:

            

Retail

   $ —       $ —       $ —       $ —       $ 2,375   $ 2,375

Industrial

     —         —         —         —         1,644     1,644

Office

     —         —         6     6     1,476     1,482

Apartments

     —         —         —         —         474     474

Mixed use

     —         —         —         —         237     237

Other

     —         —         —         —         280     280
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ —       $ —       $ 6   $ 6   $ 6,486   $ 6,492
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total commercial mortgage loans

     —       —       —       —       100     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     December 31, 2017  

(Amounts in millions)

   31 - 60 days
past due
    61 - 90 days
past due
    Greater than
90 days past
due
    Total
past due
    Current     Total  

Property type:

            

Retail

   $ 5   $ —       $ —       $ 5   $ 2,234   $ 2,239

Industrial

     —         —         —         —         1,628     1,628

Office

     —         —         6     6     1,504     1,510

Apartments

     —         —         —         —         478     478

Mixed use

     —         —         —         —         223     223

Other

     —         —         —         —         275     275
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 5   $ —       $ 6   $ 11   $ 6,342   $ 6,353
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total commercial mortgage loans

     —       —       —       —       100     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans

The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated:

 

     Three months ended     Six months ended  
     June 30,     June 30,  

(Amounts in millions)

   2018      2017     2018      2017  

Allowance for credit losses:

          

Beginning balance

   $ 9    $ 11   $ 9    $ 12

Charge-offs

     —          —         —          —    

Recoveries

     —          —         —          —    

Provision

     —          (1     —          (2
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance

   $ 9    $ 10   $ 9    $ 10
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending allowance for individually impaired loans

   $ —        $ —       $ —        $ —    
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending allowance for loans not individually impaired that were evaluated collectively for impairment

   $ 9    $ 10   $ 9    $ 10
  

 

 

    

 

 

   

 

 

    

 

 

 

Recorded investment:

          

Ending balance

   $ 6,492    $ 6,250   $ 6,492    $ 6,250
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance of individually impaired loans

   $ 6    $ —       $ 6    $ —    
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance of loans not individually impaired that were evaluated collectively for impairment

   $ 6,486    $ 6,250   $ 6,486    $ 6,250
  

 

 

    

 

 

   

 

 

    

 

 

 

 

Investment Securities  
Gross Unrealized Losses and Fair Values of Securities in a Continuous Unrealized Loss Position

The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of June 30, 2018:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

Fixed maturity securities:

                 

U.S. government, agencies and government-sponsored enterprises

  $ 314   $ (6     35   $ 84   $ (6 )       5   $ 398   $ (12 )       40

State and political subdivisions

    482     (13     98     318     (26 )       41     800     (39 )       139

Non-U.S. government

    649     (18     85     418     (18 )       25     1,067     (36 )       110

U.S. corporate

    9,473     (354     1,322     1,215     (113 )       167     10,688     (467 )       1,489

Non-U.S. corporate

    4,146     (126     574     697     (44 )       96     4,843     (170 )       670

Residential mortgage-backed

    866     (19     133     321     (9 )       62     1,187     (28 )       195

Commercial mortgage-backed

    1,159     (29     168     590     (55 )       87     1,749     (84 )       255

Other asset-backed

    1,654     (14     301     194     (3 )       54     1,848     (17 )       355
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for fixed maturity securities in an unrealized loss position

  $ 18,743   $ (579     2,716   $ 3,837   $ (274     537     $ 22,580   $ (853     3,253
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Below cost:

                 

<20% Below cost

  $ 18,743   $ (579     2,714   $ 3,828   $ (270     533   $ 22,571   $ (849     3,247

20%-50% Below cost

    —         —         2     9     (4 )       4     9     (4 )       6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for fixed maturity securities in an unrealized loss position

  $ 18,743   $ (579     2,716   $ 3,837   $ (274     537   $ 22,580   $ (853     3,253
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment grade

  $ 17,627   $ (535     2,555   $ 3,704   $ (261     508   $ 21,331   $ (796     3,063

Below investment grade

    1,116     (44     161     133     (13 )       29     1,249     (57 )       190
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for fixed maturity securities in an unrealized loss position

  $ 18,743   $ (579     2,716   $ 3,837   $ (274     537   $ 22,580   $ (853     3,253
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of June 30, 2018:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

U.S. corporate:

                 

Utilities

  $ 1,187   $ (46     185   $ 214   $ (20     35   $ 1,401   $ (66     220

Energy

    639     (19     102     119     (10     12     758     (29     114

Finance and insurance

    2,596     (90     366     243     (18     32     2,839     (108     398

Consumer—non-cyclical

    1,579     (61     194     188     (19     23     1,767     (80     217

Technology and communications

    1,111     (42     142     159     (19     21     1,270     (61     163

Industrial

    416     (15     61     55     (5     7     471     (20     68

Capital goods

    717     (32     94     64     (8     11     781     (40     105

Consumer—cyclical

    668     (24     107     86     (7     11     754     (31     118

Transportation

    492     (24     67     73     (7     14     565     (31     81

Other

    68     (1     4     14     —         1     82     (1     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, U.S. corporate securities

    9,473     (354     1,322     1,215     (113     167     10,688     (467     1,489
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                 

Utilities

    359     (14     48     81     (8     10     440     (22     58

Energy

    346     (12     48     98     (6     12     444     (18     60

Finance and insurance

    1,007     (28     143     150     (8     25     1,157     (36     168

Consumer—non-cyclical

    323     (12     37     57     (6     5     380     (18     42

Technology and communications

    466     (13     65     23     (2     4     489     (15     69

Industrial

    280     (9     41     34     (3     4     314     (12     45

Capital goods

    227     (6     27     29     (1     4     256     (7     31

Consumer—cyclical

    283     (7     36     28     —         7     311     (7     43

Transportation

    206     (6     24     64     (5     8     270     (11     32

Other

    649     (19     105     133     (5     17     782     (24     122
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, non-U.S. corporate securities

    4,146     (126     574     697     (44     96     4,843     (170     670
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for corporate securities in an unrealized loss position

  $ 13,619   $ (480     1,896   $ 1,912   $ (157     263   $ 15,531   $ (637     2,159
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost.

 

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2017:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

Fixed maturity securities:

                 

U.S. government, agencies and government-sponsored enterprises

  $ 78   $ (1     21   $ 94   $ (2 )       7   $ 172   $ (3 )       28

State and political subdivisions

    125     (1     35     327     (21 )       42     452     (22 )       77

Non-U.S. government

    583     (7     26     239     (13 )       20     822     (20 )       46

U.S. corporate

    1,871     (26     296     1,347     (42 )       190     3,218     (68 )       486

Non-U.S. corporate

    1,323     (12     217     548     (21 )       77     1,871     (33 )       294

Residential mortgage-backed

    707     (7     81     130     (4 )       46     837     (11 )       127

Commercial mortgage-backed

    476     (4     69     646     (33 )       90     1,122     (37 )       159

Other asset-backed

    853     (4     160     230     (2 )       57     1,083     (6 )       217
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, fixed maturity securities

    6,016     (62     905     3,561     (138 )       529     9,577     (200 )       1,434

Equity securities

    74     (3     134     100     (5 )       58     174     (8 )       192
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for securities in an unrealized loss position

  $ 6,090   $ (65     1,039   $ 3,661   $ (143     587   $ 9,751   $ (208     1,626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Below cost—fixed maturity securities:

                 

<20% Below cost

  $ 6,016   $ (62     905   $ 3,555   $ (136 )       526   $ 9,571   $ (198 )       1,431

20%-50% Below cost

    —         —         —         6     (2 )       3     6     (2 )       3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    6,016     (62     905     3,561     (138 )       529     9,577     (200 )       1,434
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Below cost—equity securities:

                 

<20% Below cost

    74     (3     134     100     (5 )       58     174     (8 )       192
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity securities

    74     (3     134     100     (5 )       58     174     (8 )       192
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for securities in an unrealized loss position

  $ 6,090   $ (65     1,039   $ 3,661   $ (143     587   $ 9,751   $ (208     1,626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment grade

  $ 5,867   $ (55     898   $ 3,488   $ (135     528   $ 9,355   $ (190     1,426

Below investment grade

    223     (10     141     173     (8 )       59     396     (18 )       200
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for securities in an unrealized loss position

  $ 6,090   $ (65     1,039   $ 3,661   $ (143     587   $ 9,751   $ (208     1,626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2017:

 

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    Number of
securities
 

Description of Securities

                 

U.S. corporate:

                 

Utilities

  $ 181   $ (2     33   $ 219   $ (7     36   $ 400   $ (9     69

Energy

    106     (1     22     140     (7     15     246     (8     37

Finance and insurance

    626     (6     91     222     (6     30     848     (12     121

Consumer—non-cyclical

    299     (7     46     221     (6     31     520     (13     77

Technology and communications

    217     (4     32     210     (8     29     427     (12     61

Industrial

    —         —         —         62     (1     9     62     (1     9

Capital goods

    176     (2     25     81     (3     14     257     (5     39

Consumer—cyclical

    137     (2     24     95     (2     13     232     (4     37

Transportation

    117     (1     21     97     (2     13     214     (3     34

Other

    12     (1     2     —         —         —         12     (1     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, U.S. corporate securities

    1,871     (26     296     1,347     (42     190     3,218     (68     486
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                 

Utilities

    113     (1     23     72     (3     8     185     (4     31

Energy

    118     (2     19     74     (3     12     192     (5     31

Finance and insurance

    347     (3     56     117     (3     19     464     (6     75

Consumer—non-cyclical

    69     (1     11     60     (3     6     129     (4     17

Technology and communications

    107     (1     18     30     (1     6     137     (2     24

Industrial

    52     —         9     38     (2     5     90     (2     14

Capital goods

    54     —         11     46     (2     3     100     (2     14

Consumer—cyclical

    131     (1     21     —         —         —         131     (1     21

Transportation

    47     (1     7     64     (2     8     111     (3     15

Other

    285     (2     42     47     (2     10     332     (4     52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal, non-U.S. corporate securities

    1,323     (12     217     548     (21     77     1,871     (33     294
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total for corporate securities in an unrealized loss position

  $ 3,194   $ (38     513   $ 1,895   $ (63     267   $ 5,089   $ (101     780
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Loan To Value Ratio  
Commercial Mortgage Loans by Property Type

The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated:

 

    June 30, 2018  

(Amounts in millions)

  0% - 50%     51% - 60%     61% - 75%     76% - 100%     Greater
than 100%
    Total  

Property type:

           

Retail

  $ 848   $ 505   $ 1,022   $ —     $       $ 2,375

Industrial

    676     355     613     —                 1,644

Office

    438     447     589     8             1,482

Apartments

    201     122     146     5             474

Mixed use

    101     54     82     —                 237

Other

    49     42     189     —                 280
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

  $ 2,313   $ 1,525   $ 2,641   $ 13   $       $ 6,492
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

    36     23     41     —       —       100
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average debt service coverage ratio

    2.30     1.85     1.61     1.07              1.91
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    December 31, 2017  

(Amounts in millions)

  0% - 50%     51% - 60%     61% - 75%     76% - 100%     Greater
than 100% 
(1)
    Total  

Property type:

           

Retail

  $ 919   $ 500   $ 820   $ —     $       $ 2,239

Industrial

    731     363     532     2             1,628

Office

    575     386     534     13     2       1,510

Apartments

    226     101     146     5             478

Mixed use

    99     59     65     —                 223

Other

    68     28     179     —                 275
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

  $ 2,618   $ 1,437   $ 2,276   $ 20   $ 2     $ 6,353
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

    41     23     36     —       —       100
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average debt service coverage ratio

    2.65     1.85     1.62     0.62     1.04       2.09
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.

Debt Service Coverage Ratio  
Commercial Mortgage Loans by Property Type

The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   Less than
1.00
    1.00 - 1.25     1.26 - 1.50     1.51 - 2.00     Greater than
2.00
    Total  

Property type:

            

Retail

   $ 41   $ 216   $ 406   $ 1,137   $ 575   $ 2,375

Industrial

     19     66     208     751     600     1,644

Office

     34     70     178     678     522     1,482

Apartments

     12     18     79     186     179     474

Mixed use

     5     4     38     86     104     237

Other

     1     147     23     87     22     280
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 112   $ 521   $ 932   $ 2,925   $ 2,002   $ 6,492
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

     2     8     14     45     31     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average loan-to-value

     54     60     59     59     44     54
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     December 31, 2017  

(Amounts in millions)

   Less than
1.00
    1.00 - 1.25     1.26 - 1.50     1.51 - 2.00     Greater than
2.00
    Total  

Property type:

            

Retail

   $ 43   $ 235   $ 301   $ 1,020   $ 640   $ 2,239

Industrial

     23     61     174     700     670     1,628

Office

     51     61     157     569     672     1,510

Apartments

           17     77     191     193     478

Mixed use

     2     4     26     86     105     223

Other

     1     149     14     71     40     275
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 120   $ 527   $ 749   $ 2,637   $ 2,320   $ 6,353
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

     2     8     12     42     36     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average loan-to-value

     55     60     58     58     42     52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Commercial Mortgage Loan | Real Estate Properties  
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans

We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated:

 

     June 30, 2018     December 31, 2017  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

        

Retail

   $ 2,375     37   $ 2,239     35

Industrial

     1,644     25     1,628     26

Office

     1,482     23     1,510     24

Apartments

     474     7     478     8

Mixed use

     237     4     223     3

Other

     280     4     275     4
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     6,492     100     6,353     100
  

 

 

   

 

 

   

 

 

   

 

 

 

Unamortized balance of loan origination fees and costs

     (3       (3  

Allowance for losses

     (9       (9  
  

 

 

     

 

 

   

Total

   $ 6,480     $ 6,341  
  

 

 

     

 

 

   

 

Other Geographic Area | Commercial Mortgage Loan  
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans

We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated:

 

     June 30, 2018     December 31, 2017  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

        

Retail

   $ 2,375     37   $ 2,239     35

Industrial

     1,644     25     1,628     26

Office

     1,482     23     1,510     24

Apartments

     474     7     478     8

Mixed use

     237     4     223     3

Other

     280     4     275     4
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     6,492     100     6,353     100
  

 

 

   

 

 

   

 

 

   

 

 

 

Unamortized balance of loan origination fees and costs

     (3       (3  

Allowance for losses

     (9       (9  
  

 

 

     

 

 

   

Total

   $ 6,480     $ 6,341  
  

 

 

     

 

 

   

 

     June 30, 2018     December 31, 2017  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Geographic region:

        

South Atlantic

   $ 1,669     26   $ 1,625     26

Pacific

     1,652     25     1,622     26

Middle Atlantic

     926     14     927     14

Mountain

     617     10     556     9

West North Central

     453     7     446     7

East North Central

     399     6     394     6

West South Central

     360     6     336     5

East South Central

     214     3     208     3

New England

     202     3     239     4
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     6,492     100     6,353     100
  

 

 

   

 

 

   

 

 

   

 

 

 

Unamortized balance of loan origination fees and costs

     (3       (3  

Allowance for losses

     (9       (9  
  

 

 

     

 

 

   

Total

   $ 6,480     $ 6,341  
  

 

 

     

 

 

   

 

v3.10.0.1
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Schedule Of Positions in Derivative Instruments

The following table sets forth our positions in derivative instruments as of the dates indicated:

 

   

Derivative assets

   

Derivative liabilities

 
        Fair value         Fair value  

(Amounts in millions)

 

Balance sheet

classification

  June 30,
2018 
    December 31,
2017
   

Balance sheet
classification

  June 30,
2018 
    December 31,
2017
 

Derivatives designated as hedges

           

Cash flow hedges:

           

Interest rate swaps

  Other invested assets   $ 49     $ 74   Other liabilities   $ 71     $ 25

Foreign currency swaps

  Other invested assets     2       1   Other liabilities     1       —    
   

 

 

   

 

 

     

 

 

   

 

 

 

Total cash flow hedges

      51       75       72       25
   

 

 

   

 

 

     

 

 

   

 

 

 

Total derivatives designated as hedges

      51       75       72       25
   

 

 

   

 

 

     

 

 

   

 

 

 

Derivatives not designated as hedges

           

Interest rate caps and floors

  Other invested assets     1       —       Other liabilities     —         —    

Foreign currency swaps

  Other invested assets     1       11   Other liabilities     8       —    

Equity index options

  Other invested assets     70       80   Other liabilities     —         —    

Financial futures

  Other invested assets     —         —       Other liabilities     —         —    

Equity return swaps

  Other invested assets     1       —       Other liabilities     —         2

Other foreign currency contracts

  Other invested assets     106       110   Other liabilities     23       20

GMWB embedded derivatives

  Reinsurance recoverable (1)     12       14   Policyholder account balances (2)     235       250

Fixed index annuity embedded derivatives

  Other assets     —         —       Policyholder account balances (3)     420       419

Indexed universal life embedded derivatives

  Reinsurance recoverable     —         —       Policyholder account balances (4)     13       14
   

 

 

   

 

 

     

 

 

   

 

 

 

Total derivatives not designated as hedges

      191       215       699       705
   

 

 

   

 

 

     

 

 

   

 

 

 

Total derivatives

    $ 242     $ 290     $ 771     $ 730
   

 

 

   

 

 

     

 

 

   

 

 

 

 

(1) 

Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities.

(2) 

Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(3) 

Represents the embedded derivatives associated with our fixed index annuity liabilities.

(4) 

Represents the embedded derivatives associated with our indexed universal life liabilities.

Schedule of Notional Amounts Outstanding on Derivative Instruments

The following tables represent activity associated with derivative instruments as of the dates indicated:

 

(Notional in millions)

   Measurement      December 31,
2017
     Additions      Maturities/
terminations
    June 30,
2018
 

Derivatives designated as hedges

             

Cash flow hedges:

             

Interest rate swaps

     Notional      $ 11,155    $ 1,436    $ (1,672   $ 10,919

Foreign currency swaps

     Notional        22      39      —         61
     

 

 

    

 

 

    

 

 

   

 

 

 

Total cash flow hedges

        11,177      1,475      (1,672     10,980
     

 

 

    

 

 

    

 

 

   

 

 

 

Total derivatives designated as hedges

        11,177      1,475      (1,672     10,980
     

 

 

    

 

 

    

 

 

   

 

 

 

Derivatives not designated as hedges

             

Interest rate swaps

     Notional        4,679      —          (5     4,674

Interest rate caps and floors

     Notional        —          805      —         805

Foreign currency swaps

     Notional        349      128      (23     454

Credit default swaps

     Notional        39      —          (19     20

Equity index options

     Notional        2,420      1,246      (927     2,739

Financial futures

     Notional        1,283      2,660      (2,680     1,263

Equity return swaps

     Notional        96      1      (78     19

Other foreign currency contracts

     Notional        3,264      398      (549     3,113
     

 

 

    

 

 

    

 

 

   

 

 

 

Total derivatives not designated as hedges

        12,130      5,238      (4,281     13,087
     

 

 

    

 

 

    

 

 

   

 

 

 

Total derivatives

      $ 23,307    $ 6,713    $ (5,953   $ 24,067
     

 

 

    

 

 

    

 

 

   

 

 

 

(Number of policies)

   Measurement      December 31,
2017
     Additions      Maturities/
terminations
    June 30,
2018
 

Derivatives not designated as hedges

             

GMWB embedded derivatives

     Policies        30,450      —          (1,343     29,107

Fixed index annuity embedded derivatives

     Policies        17,067      —          (255     16,812

Indexed universal life embedded derivatives

     Policies        985      —          (28     957

 

Schedule of Pre-Tax Income Effects of Cash Flow Hedges

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2018:

 

(Amounts in millions)

   Gain (loss)
recognized
in OCI
     Gain (loss)
reclassified
into net
income
from OCI
     Classification of
gain (loss)
reclassified into
net income
 

Interest rate swaps hedging assets

   $ (54    $ 39      Net investment income  

Interest rate swaps hedging liabilities

     5      —          Interest expense  
Foreign currency swaps      1      —          Net investment income  
  

 

 

    

 

 

    

Total

   $ (48    $ 39   
  

 

 

    

 

 

    

The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2017:

 

(Amounts in millions)

  Gain (loss)
recognized
in OCI
    Gain (loss)
reclassified
into net
income
from OCI
   

Classification of

gain (loss)

reclassified into

net income

  Gain (loss)
recognized
in net
income 
(1)
   

Classification of

gain (loss)

recognized in

net income

Interest rate swaps hedging assets

  $ 82   $ 31   Net investment income   $ —       Net investment gains (losses)

Interest rate swaps hedging assets

    —         1   Net investment gains (losses)     —       Net investment gains (losses)

Interest rate swaps hedging liabilities

    (6     —       Interest expense     —       Net investment gains (losses)

Foreign currency swaps

    (1     —       Net investment income     —       Net investment gains (losses)
 

 

 

   

 

 

     

 

 

   

Total

  $ 75   $ 32     $ —      
 

 

 

   

 

 

     

 

 

   

 

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2018:

 

(Amounts in millions)

  Gain (loss)
recognized
in OCI
    Gain (loss)
reclassified
into net
income
from OCI
   

Classification of

gain (loss)

reclassified into

net income

Interest rate swaps hedging assets

  $ (227   $ 74   Net investment income

Interest rate swaps hedging assets

    —         5   Net investment gains (losses)

Interest rate swaps hedging liabilities

    22     —       Interest expense
 

 

 

   

 

 

   

Total

  $ (205   $ 79  
 

 

 

   

 

 

   

 

The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2017:

 

(Amounts in millions)

  Gain (loss)
recognized
in OCI
    Gain (loss)
reclassified
into net
income
from OCI
   

Classification of

gain (loss)

reclassified into

net income

  Gain (loss)
recognized
in net
income
(1)
   

Classification of

gain (loss)

recognized in

net income

Interest rate swaps hedging assets

  $ 33   $ 61   Net investment income   $ —       Net investment gains (losses)

Interest rate swaps hedging assets

    —         2   Net investment gains (losses)     —       Net investment gains (losses)

Interest rate swaps hedging liabilities

    (2     —       Interest expense     —       Net investment gains (losses)

Foreign currency swaps

    (1     —       Net investment income     —       Net investment gains (losses)
 

 

 

   

 

 

     

 

 

   

Total

  $ 30   $ 63     $ —      
 

 

 

   

 

 

     

 

 

   

 

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedge

The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated:

 

     Three months ended
June 30,
 

(Amounts in millions)

   2018     2017  

Derivatives qualifying as effective accounting hedges as of April 1

   $ 1,927   $ 2,036

Current period increases (decreases) in fair value, net of deferred taxes of $9 and $(27)

     (39     48

Reclassification to net (income), net of deferred taxes of $14 and $12

     (25     (20
  

 

 

   

 

 

 

Derivatives qualifying as effective accounting hedges as of June 30

   $ 1,863   $ 2,064
  

 

 

   

 

 

 
     Six months ended
June 30,
 

(Amounts in millions)

   2018     2017  

Derivatives qualifying as effective accounting hedges as of January 1

   $ 2,065   $ 2,085

Cumulative effect of changes in accounting:

    

Stranded tax effects

     12     —    

Changes to the hedge accounting model, net of deferred taxes of $(1) and $—

     2     —    
  

 

 

   

 

 

 

Total cumulative effect of changes in accounting

     14     —    
  

 

 

   

 

 

 

Current period increases (decreases) in fair value, net of deferred taxes of $43 and $(11)

     (165     19

Reclassification to net (income), net of deferred taxes of $28 and $23

     (51     (40
  

 

 

   

 

 

 

Derivatives qualifying as effective accounting hedges as of June 30

   $ 1,863   $ 2,064
  

 

 

   

 

 

 

 

 

Schedule of Pre-Tax Gain (Loss) Recognized in Net Income for Effects of Derivatives Not Designated as Hedges

The following tables provide the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated:

 

     Three months ended
June 30,
   

Classification of gain (loss)
recognized in net income

(Amounts in millions)

   2018     2017  

Interest rate swaps

   $ (2   $ (1   Net investment gains (losses)

Credit default swaps related to securitization entities

     —         2   Net investment gains (losses)

Equity index options

     8     13   Net investment gains (losses)

Financial futures

     (13     9   Net investment gains (losses)

Equity return swaps

     1     (6   Net investment gains (losses)

Other foreign currency contracts

     1     31   Net investment gains (losses)

Foreign currency swaps

     (10     2   Net investment gains (losses)

GMWB embedded derivatives

     13     1   Net investment gains (losses)

Fixed index annuity embedded derivatives

     (15     (16   Net investment gains (losses)

Indexed universal life embedded derivatives

     2     2   Net investment gains (losses)
  

 

 

   

 

 

   

Total derivatives not designated as hedges

   $ (15   $ 37  
  

 

 

   

 

 

   

 

     Six months ended
June 30,
   

Classification of gain (loss)
recognized in net income

(Amounts in millions)

   2018     2017  

Interest rate swaps

   $ (3   $ 1   Net investment gains (losses)

Credit default swaps related to securitization entities

     —         4   Net investment gains (losses)

Equity index options

     (7     26   Net investment gains (losses)

Financial futures

     (37     (8   Net investment gains (losses)

Equity return swaps

     (4     (14   Net investment gains (losses)

Other foreign currency contracts

     9     26   Net investment gains (losses)

Foreign currency swaps

     (18     5   Net investment gains (losses)

GMWB embedded derivatives

     27     34   Net investment gains (losses)

Fixed index annuity embedded derivatives

     (7     (36   Net investment gains (losses)

Indexed universal life embedded derivatives

     7     3   Net investment gains (losses)
  

 

 

   

 

 

   

Total derivatives not designated as hedges

   $ (33   $ 41  
  

 

 

   

 

 

   

 

Derivative Assets and Liabilities Subject to Master Netting Arrangement

The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:

 

    June 30, 2018     December 31, 2017  

(Amounts in millions)

  Derivatives
assets
(1)
    Derivatives
liabilities
(2)
    Net
derivatives
    Derivatives
assets
(1)
    Derivatives
liabilities
(2)
    Net
derivatives
 

Amounts presented in the balance sheet:

           

Gross amounts recognized

  $ 234     $ 104     $ 130   $ 278     $ 47     $ 231

Gross amounts offset in the balance sheet

                      —                           —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net amounts presented in the balance sheet

    234       104       130     278       47       231

Gross amounts not offset in the balance sheet:

           

Financial instruments (3)

    (39 )       (39 )             (23 )       (23 )        

Collateral received

    (125 )             (125     (170 )             (170

Collateral pledged

          (427 )       427             (288 )       288

Over collateralization

    1       363       (362              264       (264
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net amount

  $ 71     $ 1     $ 70   $ 85     $     $ 85
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Included $4 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2018 and December 31, 2017, respectively.

(2) 

Included $1 million of accrual on derivatives classified as other liabilities as of June 30, 2018. Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2018 and December 31, 2017.

(3)

Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty.

Schedule of Credit Default Swaps Where We Sell Protection on Single Name Reference Entities and Fair Values

The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated:

 

     June 30, 2018      December 31, 2017  

(Amounts in millions)

   Notional
value
     Assets      Liabilities      Notional
value
     Assets      Liabilities  

Investment grade

                 

Matures in less than one year

   $ 20    $ —        $ —        $ 39    $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total credit default swaps on single name reference entities

   $ 20    $ —        $ —        $ 39    $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

v3.10.0.1
Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Financial Instruments Not Required to be Carried at Fair Value

The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated:

 

     June 30, 2018  
     Notional
amount
    Carrying
amount
     Fair value  

(Amounts in millions)

        Total      Level 1      Level 2      Level 3  

Assets:

                      

Commercial mortgage loans

   $ (1)    $ 6,480    $ 6,514    $        —        $        —        $ 6,514

Restricted commercial mortgage loans

        (1)      90      96         —             —          96

Other invested assets

        (1)      151      151         —             —          151

Liabilities:

                      

Long-term borrowings

        (1)      4,047      3,727         —             3,577      150

Non-recourse funding obligations

        (1)      310      209         —             —          209

Borrowings related to securitization entities

        (1)      28      28         —             28      —    

Investment contracts

        (1)      13,757      14,007         —             —          14,007

Other firm commitments:

                      

Commitments to fund limited partnerships

     402       —          —             —             —          —    

Commitments to fund bank loan investments

     30       —          —             —             —          —    

Ordinary course of business lending commitments

     119       —          —             —             —          —    
     December 31, 2017  
     Notional
amount
    Carrying
amount
     Fair value  

(Amounts in millions)

        Total      Level 1      Level 2      Level 3  

Assets:

                      

Commercial mortgage loans

   $ (1)    $ 6,341    $ 6,573    $        —        $        —        $ 6,573

Restricted commercial mortgage loans

        (1)      107      116         —             —          116

Other invested assets

        (1)      277      299         —             —          299

Liabilities:

                      

Long-term borrowings

        (1)      4,224      3,725         —             3,566      159

Non-recourse funding obligations

        (1)      310      201         —             —          201

Borrowings related to securitization entities

        (1)      40      41         —             41      —    

Investment contracts

        (1)      14,700      15,123         —             5      15,118

Other firm commitments:

                      

Commitments to fund limited partnerships

     317       —          —             —             —          —    

Commitments to fund bank loan investments

     18       —          —             —             —          —    

Ordinary course of business lending commitments

     168       —          —             —             —          —    

 

(1)  These financial instruments do not have notional amounts.
Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2

The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2018:

 

(Amounts in millions)

  Fair value    

Primary methodologies

 

Significant inputs

U.S. government, agencies and government-sponsored enterprises

  $ 5,353   Price quotes from trading desk, broker feeds   Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread

State and political subdivisions

  $ 2,803   Multi-dimensional attribute-based modeling systems, third-party pricing vendors   Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes

Non-U.S. government

  $ 2,364   Matrix pricing, spread priced to benchmark curves, price quotes from market makers   Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

U.S. corporate

  $ 24,571   Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models   Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports

Non-U.S. corporate

  $ 10,049   Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers   Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

Residential mortgage-backed

  $ 3,533   OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced   Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports

Commercial mortgage-backed

  $ 3,305   Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model   Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports

Other asset-backed

  $ 2,791   Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models   Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports

 

    Internal models: A portion of our non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $16 million, $1,067 million and $567 million, respectively, as of June 30, 2018. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants.
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis

The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3      NAV (1)  

Assets

              

Investments:

              

Fixed maturity securities:

              

U.S. government, agencies and government-sponsored enterprises

   $ 5,353    $ —        $ 5,353    $ —        $ —    

State and political subdivisions

     2,855      —          2,803      52      —    

Non-U.S. government

     2,380      —          2,380      —          —    

U.S. corporate:

              

Utilities

     4,879      —          4,257      622      —    

Energy

     2,270      —          2,132      138      —    

Finance and insurance

     6,275      —          5,817      458      —    

Consumer—non-cyclical

     4,541      —          4,462      79      —    

Technology and communications

     2,781      —          2,769      12      —    

Industrial

     1,283      —          1,243      40      —    

Capital goods

     2,361      —          2,242      119      —    

Consumer—cyclical

     1,573      —          1,319      254      —    

Transportation

     1,252      —          1,196      56      —    

Other

     354      —          201      153      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total U.S. corporate

     27,569      —          25,638      1,931      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. corporate:

              

Utilities

     962      —          629      333      —    

Energy

     1,399      —          1,224      175      —    

Finance and insurance

     2,537      —          2,387      150      —    

Consumer—non-cyclical

     702      —          594      108      —    

Technology and communications

     1,007      —          991      16      —    

Industrial

     977      —          872      105      —    

Capital goods

     611      —          445      166      —    

Consumer—cyclical

     522      —          474      48      —    

Transportation

     727      —          524      203      —    

Other

     2,558      —          2,476      82      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. corporate

     12,002      —          10,616      1,386      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Residential mortgage-backed

     3,567      —          3,533      34      —    

Commercial mortgage-backed

     3,349      —          3,305      44      —    

Other asset-backed

     2,957      —          2,791      166      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturity securities

     60,032      —          56,419      3,613      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Equity securities

     758      643      69      46      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other invested assets:

              

Derivative assets:

              

Interest rate swaps

     49      —          49      —          —    

Interest rate caps and floors

     1      —          1      —          —    

Foreign currency swaps

     3      —          3      —          —    

Equity index options

     70      —          —          70      —    

Equity return swaps

     1      —          1      —          —    

Other foreign currency contracts

     106      —          106      —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative assets

     230      —          160      70      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Securities lending collateral

     211      —          211      —          —    

Short-term investments

     708      1      707      —          —    

Limited partnerships

     248      —          —          —          248  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total other invested assets

     1,397      1      1,078      70      248  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Reinsurance recoverable (2)

     12      —          —          12      —    

Separate account assets

     6,750      6,750      —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 68,949    $ 7,394    $ 57,566    $ 3,741    $ 248  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  Limited partnerships that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

     December 31, 2017  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Assets

           

Investments:

           

Fixed maturity securities:

           

U.S. government, agencies and government-sponsored enterprises

   $ 5,548    $ —        $ 5,547    $ 1

State and political subdivisions

     2,926      —          2,889      37

Non-U.S. government

     2,233      —          2,233      —    

U.S. corporate:

           

Utilities

     4,998      —          4,424      574

Energy

     2,458      —          2,311      147

Finance and insurance

     6,528      —          5,902      626

Consumer—non-cyclical

     4,831      —          4,750      81

Technology and communications

     2,845      —          2,772      73

Industrial

     1,346      —          1,307      39

Capital goods

     2,355      —          2,234      121

Consumer—cyclical

     1,605      —          1,343      262

Transportation

     1,291      —          1,231      60

Other

     379      —          210      169
  

 

 

    

 

 

    

 

 

    

 

 

 

Total U.S. corporate

     28,636      —          26,484      2,152
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. corporate:

           

Utilities

     1,017      —          674      343

Energy

     1,490      —          1,314      176

Finance and insurance

     2,735      —          2,574      161

Consumer—non-cyclical

     712      —          588      124

Technology and communications

     982      —          953      29

Industrial

     1,044      —          928      116

Capital goods

     645      —          454      191

Consumer—cyclical

     540      —          486      54

Transportation

     721      —          551      170

Other

     2,725      —          2,673      52
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. corporate

     12,611      —          11,195      1,416
  

 

 

    

 

 

    

 

 

    

 

 

 

Residential mortgage-backed

     4,057      —          3,980      77

Commercial mortgage-backed

     3,446      —          3,416      30

Other asset-backed

     3,068      —          2,831      237
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturity securities

     62,525      —          58,575      3,950
  

 

 

    

 

 

    

 

 

    

 

 

 

Equity securities

     820      696      80      44
  

 

 

    

 

 

    

 

 

    

 

 

 

Other invested assets:

           

Derivative assets:

           

Interest rate swaps

     74      —          74      —    

Foreign currency swaps

     12      —          12      —    

Equity index options

     80      —          —          80

Other foreign currency contracts

     110      —          110      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative assets

     276      —          196      80
  

 

 

    

 

 

    

 

 

    

 

 

 

Securities lending collateral

     268      —          268      —    

Short-term investments

     902      107      795      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other invested assets

     1,446      107      1,259      80
  

 

 

    

 

 

    

 

 

    

 

 

 

Reinsurance recoverable (1)

     14      —          —          14

Separate account assets

     7,230      7,230      —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 72,035    $ 8,033    $ 59,914    $ 4,088
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of

April 1,
2018
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level  3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance
as of

June 30,
2018
    Total gains
(losses)
included in
net income
attributable

to assets
still held
 
    Included in
net income
    Included
in OCI
                 

Fixed maturity securities:

                     

State and political subdivisions

  $ 53   $ —       $ (1   $ —       $ —       $ —       $ —       $ —       $ —       $ 52   $ —    

U.S. corporate:

                     

Utilities

    553     (1     (7     66     (12     —         (2     25       —         622     —    

Energy

    146     —         —         —         —         —         (1     —         (7 )       138     —    

Finance and insurance

    580     —         (41     —         —         —         (74     —         (7 )       458     —    

Consumer—non-cyclical

    79     —         —         —         —         —         —         —         —         79     —    

Technology and communications

    25     —         1     4     —         —         (18     —         —         12     —    

Industrial

    39     —         1     —         —         —         —         —         —         40     —    

Capital goods

    103     —         (1     24     —         —         —         —         (7 )       119     —    

Consumer—cyclical

    252     —         (1     7     (3     —         (1     —         —         254     —    

Transportation

    57     —         —         —         —         —         (1     —         —         56     —    

Other

    166     —         —         —         (10     —         (3     —         —         153     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,000     (1     (48     101     (25     —         (100     25       (21 )       1,931     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    336     —         (4     —         —         —         —         15       (14 )       333     —    

Energy

    195     —         (2     —         —         —         (18     —         —         175     —    

Finance and insurance

    153     1     (3     1     —         —         (1     —         (1 )       150     1

Consumer—non-cyclical

    120     —         (1     —         —         —         (11     —         —         108     —    

Technology and communications

    28     —         1     —         —         —         (13     —         —         16     —    

Industrial

    108     —         (1     3     —         —         (5     —         —         105     —    

Capital goods

    186     1     —         —         —         —         (21     —         —         166     1

Consumer—cyclical

    52     —         —         —         (1     —         (3     —         —         48     —    

Transportation

    166     —         (2     22     —         —         —         17       —         203     —    

Other

    83     —         (1     —         —         —         —         —         —         82     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,427     2     (13     26     (1     —         (72     32       (15 )       1,386     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    34     —         1     17     —         —         (1     —         (17 )       34     —    

Commercial mortgage-backed

    6     —         —         28     —         —         —         13       (3 )       44     —    

Other asset-backed

    172     —         (1     6     —         —         (24     45       (32 )       166     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    3,692     1     (62     178     (26     —         (197     115       (88 )       3,613     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    45     —         —         1     —         —         —         —         —         46     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    60     8     —         15     —         —         (13     —         —         70     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    60     8     —         15     —         —         (13     —         —         70     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    60     8     —         15     —         —         (13     —         —         70     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable (2)

    13     (1     —         —         —         —         —         —         —         12     (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 3,810   $ 8   $ (62   $ 194   $ (26   $ —       $ (210   $ 115     $ (88   $ 3,741   $ 9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

(Amounts in millions)

  Beginning
balance
as of

April 1,
2017
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance
as of

June 30,
2017
    Total gains
(losses)
included in
net income
attributable

to assets
still held
 
    Included in
net income
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 1   $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ 1   $ —    

State and political subdivisions

    37     —         —         —         —         —         —         —         —         37     —    

U.S. corporate:

                     

Utilities

    578     —         13     30     —         —         —         30       (13 )       638     —    

Energy

    162     —         4     —         —         —         (7     1       —         160     —    

Finance and insurance

    818     4     39     24     (7     —         (3     —         (14 )       861     4

Consumer—non-cyclical

    122     —         —         —         —         —         —         —         —         122     —    

Technology and communications

    59     —         5     4     —         —         —         —         (10 )       58     —    

Industrial

    47     —         1     13     —         —         —         —         —         61     —    

Capital goods

    153     —         2     —         —         —         —         —         (37 )       118     —    

Consumer—cyclical

    263     —         4     —         —         —         (1     —         —         266     —    

Transportation

    97     —         4     —         —         —         (1     —         —         100     1

Other

    142     —         —         —         —         —         (3     37       —         176     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,441     4     72     71     (7     —         (15     68       (74 )       2,560     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    386     —         3     —         —         —         —         —         (30 )       359     —    

Energy

    206     —         3     —         —         —         —         —         (32 )       177     —    

Finance and insurance

    168     1     4     4     —         —         (5     —         —         172     1

Consumer—non-cyclical

    129     —         1     —         —         —         (1     —         —         129     —    

Technology and communications

    48     —         —         —         —         —         —         —         —         48     —    

Industrial

    110     —         2     —         —         —         —         —         —         112     —    

Capital goods

    170     —         1     —         —         —         (15     —         (7 )       149     —    

Consumer—cyclical

    67     —         —         —         —         —         —         —         —         67     —    

Transportation

    193     —         1     6     —         —         —         1       (11 )       190     —    

Other

    24     —         2     15     —         —         —         —         —         41     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,501     1     17     25     —         —         (20     1       (81 )       1,444     1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    46     —         1     —         —         —         —         26       —         73     —    

Commercial mortgage-backed

    59     (1     2     8     (9     —         —         —         (7 )       52     —    

Other asset-backed

    175     (7     10     10     (35     —         (5     9       (7 )       150     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    4,260     (3     102     114     (51     —         (40     104       (169 )       4,317     6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    47     —         —         1     —         —         —         —         —         48     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    77     13     —         9     —         —         (18     —         —         81     —    

Other foreign currency contracts

    1     (1     —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    78     12     —         9     —         —         (18     —         —         81     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    78     12     —         9     —         —         (18     —         —         81     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable (2)

    15     —         —         —         —         —         —         —         —         15     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 4,400   $ 9   $ 102   $ 124   $ (51   $ —       $ (58   $ 104     $ (169   $ 4,461   $ 6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2018
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance

as of
June 30,
2018
    Total gains
(losses)
included in
net income

attributable
to assets
still held
 
    Included
in net
income
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 1   $ —       $ —       $ —       $ —       $ —       $ (1   $ —       $ —       $ —       $ —    

State and political subdivisions

    37     1     (4     —         —         —         —         18       —         52     1

U.S. corporate:

                     

Utilities

    574     (1     (25     69     (12     —         (4     25       (4 )       622     —    

Energy

    147     —         (5     22     —         —         (19     —         (7 )       138     —    

Finance and insurance

    626     1     (67     26     —         —         (110     —         (18 )       458     1

Consumer—non-cyclical

    81     —         (2     —         —         —         —         —         —         79     —    

Technology and communications

    73     —         (5     4     —         —         (60     —         —         12     —    

Industrial

    39     —         1     —         —         —         —         —         —         40     —    

Capital goods

    121     —         (9     24     —         —         (10     —         (7 )       119     —    

Consumer—cyclical

    262     —         (10     17     (3     —         (12     —         —         254     —    

Transportation

    60     —         (1     —         —         —         (3     —         —         56     —    

Other

    169     —         (1     —         (10     —         (5     —         —         153     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,152     —         (124     162     (25     —         (223     25       (36 )       1,931     1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    343     —         (13     22     —         —         (20     15       (14 )       333     —    

Energy

    176     —         (6     23     —         —         (18     —         —         175     —    

Finance and insurance

    161     2     (11     1     —         —         (2     —         (1 )       150     2

Consumer—non-cyclical

    124     —         (4     —         —         —         (12     —         —         108     —    

Technology and communications

    29     —         —         —         —         —         (13     —         —         16     —    

Industrial

    116     —         (4     3     —         —         (10     —         —         105     —    

Capital goods

    191     1     (5     —         —         —         (21     —         —         166     1

Consumer—cyclical

    54     —         (2     —         (1     —         (3     —         —         48     —    

Transportation

    170     —         (6     22     —         —         —         17       —         203     —    

Other

    52     —         (3     33     —         —         —         —         —         82     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,416     3     (54     104     (1     —         (99     32       (15 )       1,386     3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    77     —         —         29     —         —         (1     —         (71 )       34     —    

Commercial mortgage-backed

    30     —         (2     35     —         —         —         13       (32 )       44     —    

Other asset-backed

    237     —         (3     61     —         —         (56     48       (121 )       166     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    3,950     4     (187     391     (26     —         (380     136       (275 )       3,613     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    44     —         —         5     (3     —         —         —         —         46     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    80     (7     —         29     —         —         (32     —         —         70     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    80     (7     —         29     —         —         (32     —         —         70     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    80     (7     —         29     —         —         (32     —         —         70     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reinsurance recoverable (2)

    14     (3     —         —         —         1     —         —         —         12     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 4,088   $ (6   $ (187   $ 425   $ (29   $ 1   $ (412   $ 136     $ (275   $ 3,741   $ (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2017
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3 
(1)
    Transfer
out of
Level 3 
(1)
    Ending
balance

as of
June 30,
2017
    Total gains
(losses)
included in
net income

attributable
to assets
still held
 
    Included
in net
income
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 2   $ —       $ —       $ —       $ —       $ —       $ (1   $ —       $ —       $ 1   $ —    

State and political subdivisions

    37     1     (1     —         —         —         —         —         —         37     1

U.S. corporate:

                     

Utilities

    576     —         20     44     —         —         (2     30       (30 )       638     —    

Energy

    210     (1     6     —         (10     —         (30     1       (16 )       160     (1

Finance and insurance

    786     8     51     53     (17     —         (6     —         (14 )       861     8

Consumer—non-cyclical

    121     —         1     —         —         —         —         —         —         122     —    

Technology and communications

    54     1     6     14     —         —         —         —         (17 )       58     1

Industrial

    48     —         —         13     —         —         —         —         —         61     —    

Capital goods

    152     —         3     —         —         —         —         —         (37 )       118     —    

Consumer—cyclical

    258     —         9     2     —         —         (3     —         —         266     —    

Transportation

    139     1     5     —         —         —         (3     —         (42 )       100     1

Other

    143     —         1     —         —         —         (5     37       —         176     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. corporate

    2,487     9     102     126     (27     —         (49     68       (156 )       2,560     9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-U.S. corporate:

                     

Utilities

    386     —         5     30     —         —         —         —         (62 )       359     —    

Energy

    206     —         5     —         (1     —         (1     —         (32 )       177     —    

Finance and insurance

    182     3     8     4     —         —         (25     —         —         172     2

Consumer—non-cyclical

    139     —         2     —         —         —         (12     —         —         129     —    

Technology and communications

    67     —         —         —         —         —         (19     —         —         48     —    

Industrial

    109     —         3     —         —         —         —         —         —         112     —    

Capital goods

    169     —         2     —         —         —         (15     —         (7 )       149     —    

Consumer—cyclical

    69     —         —         —         —         —         (2     —         —         67     —    

Transportation

    181     —         3     6     —         —         —         11       (11 )       190     —    

Other

    25     —         1     15     —         —         —         —         —         41     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-U.S. corporate

    1,533     3     29     55     (1     —         (73     11       (113 )       1,444     2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Residential mortgage-backed

    43     —         1     4     —         —         (1     26       —         73     —    

Commercial mortgage-backed

    54     (1     6     9     (9     —         —         —         (7 )       52     —    

Other asset-backed

    145     (7     10     64     (35     —         (7     14       (34 )       150     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    4,301     5     147     258     (72     —         (131     119       (310 )       4,317     12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    47     —         —         1     —         —         —         —         —         48     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

                     

Derivative assets:

                     

Equity index options

    72     26     —         21     —         —         (38     —         —         81     —    

Other foreign currency contracts

    3     (3     —         —         —         —         —         —         —         —         (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    75     23     —         21     —         —         (38     —         —         81     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    75     23     —         21     —         —         (38     —         —         81     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Restricted other invested assets related to securitization entities

    131     —         —         —         (131     —         —         —         —         —         —    

Reinsurance recoverable (2)

    16     (2     —         —         —         1     —         —         —         15     (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 4,570   $ 26   $ 147   $ 280   $ (203   $ 1   $ (169   $ 119     $ (310   $ 4,461   $ 7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
(2)  Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value

The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Total realized and unrealized gains (losses) included in net income:

           

Net investment income

   $ 2    $ 5    $ 5    $ 14

Net investment gains (losses)

     6      4      (11      12
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 8    $ 9    $ (6    $ 26
  

 

 

    

 

 

    

 

 

    

 

 

 

Total gains (losses) included in net income attributable to assets still held:

           

Net investment income

   $ 2    $ 6    $ 5    $ 13

Net investment gains (losses)

     7      —          (7      (6
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 9    $ 6    $ (2    $ 7
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Summary of Significant Unobservable Inputs Used for Certain Asset and Liability Fair Value Measurements

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2018:

 

(Amounts in millions)

  Valuation technique     Fair value     Unobservable input     Range     Weighted-average  

Fixed maturity securities:

         

U.S. corporate:

         

Utilities

    Internal models     $ 616     Credit spreads       67bps - 262bps       138bps  

Energy

    Internal models       116     Credit spreads       80bps - 278bps       148bps  

Finance and insurance

    Internal models       439     Credit spreads       83bps - 290bps       157bps  

Consumer—non-cyclical

    Internal models       79     Credit spreads       90bps - 172bps       122bps  

Technology and communications

    Internal models       12     Credit spreads       63bps - 159bps       94bps  

Industrial

    Internal models       40     Credit spreads       109bps - 202bps       150bps  

Capital goods

    Internal models       119     Credit spreads       93bps - 241bps       136bps  

Consumer—cyclical

    Internal models       213     Credit spreads       74bps - 210bps       135bps  

Transportation

    Internal models       50     Credit spreads       59bps - 117bps       87bps  

Other

    Internal models       152     Credit spreads       74bps - 124bps       85bps  
   

 

 

       

Total U.S. corporate

    Internal models     $ 1,836     Credit spreads       59bps - 290bps       136bps  
   

 

 

       

Non-U.S. corporate:

         

Utilities

    Internal models     $ 333     Credit spreads       83bps - 179bps       128bps  

Energy

    Internal models       134     Credit spreads       93bps - 254bps       127bps  

Finance and insurance

    Internal models       143     Credit spreads       74bps - 235bps       137bps  

Consumer—non-cyclical

    Internal models       108     Credit spreads       61bps - 202bps       128bps  

Technology and communications

    Internal models       15     Credit spreads       144bps - 164bps       155bps  

Industrial

    Internal models       105     Credit spreads       107bps - 241bps       150bps  

Capital goods

    Internal models       166     Credit spreads       93bps - 248bps       152bps  

Consumer—cyclical

    Internal models       44     Credit spreads       84bps - 172bps       102bps  

Transportation

    Internal models       184     Credit spreads       80bps - 241bps       135bps  

Other

    Internal models       82     Credit spreads       108bps - 248bps       161bps  
   

 

 

       

Total non-U.S. corporate

    Internal models     $ 1,314     Credit spreads       61bps - 254bps       136bps  
   

 

 

       

Derivative assets:

         

Equity index options

   
Discounted
cash flows
 
 
  $ 70    
Equity index
volatility
 
 
    6% - 28%       18%  

The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2018:

 

(Amounts in millions)

  Valuation technique     Fair value     Unobservable input   Range   Weighted-average

Policyholder account balances:

         
      Withdrawal
utilization rate
  42% - 86%   67%
      Lapse rate   2% - 9%   4%
      Non-performance
risk (credit
spreads)
  28bps - 83bps  

69bps

GMWB embedded derivatives (1)

   

Stochastic
cash flow
model
 
 
 
    $235   Equity index
volatility
  15% - 24%   21%

Fixed index annuity embedded derivatives

   
Option budget
method
 
    $420   Expected future
interest credited
  —% - 3%   1%

Indexed universal life embedded derivatives

   
Option budget
method
 
 
    $13   Expected future
interest credited
  3% - 9%   6%

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis

The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

 

     June 30, 2018  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Liabilities

           

Policyholder account balances:

           

GMWB embedded derivatives (1)

   $ 235    $ —        $ —        $ 235

Fixed index annuity embedded derivatives

     420      —          —          420

Indexed universal life embedded derivatives

     13      —          —          13
  

 

 

    

 

 

    

 

 

    

 

 

 

Total policyholder account balances

     668      —          —          668
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities:

           

Interest rate swaps

     71      —          71      —    

Foreign currency swaps

     9      —          9      —    

Other foreign currency contracts

     23      —          23      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative liabilities

     103      —          103      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 771    $ —        $ 103    $ 668
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

     December 31, 2017  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Liabilities

           

Policyholder account balances:

           

GMWB embedded derivatives (1)

   $ 250    $ —        $ —        $ 250

Fixed index annuity embedded derivatives

     419      —          —          419

Indexed universal life embedded derivatives

     14      —          —          14
  

 

 

    

 

 

    

 

 

    

 

 

 

Total policyholder account balances

     683      —          —          683
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities:

           

Interest rate swaps

     25      —          25      —    

Equity return swaps

     2      —          2      —    

Other foreign currency contracts

     20      —          20      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative liabilities

     47      —          47      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 730    $ —        $ 47    $ 683
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of
April 1,
2018
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2018
    Total (gains)
losses
included in
net (income)
attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 242   $ (14   $ —       $ —       $ —       $ 7   $ —       $ —       $ —       $ 235   $ (14

Fixed index annuity embedded derivatives

    408     15     —         —         —         —         (3     —         —         420     15

Indexed universal life embedded derivatives

    13     (2     —         —         —         2     —         —         —         13     (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    663     (1     —         —         —         9     (3     —         —         668     (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 663   $ (1   $ —       $ —       $ —       $ 9   $ (3   $ —       $ —       $ 668   $ (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

(Amounts in millions)

  Beginning
balance
as of
April 1,
2017
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2017
    Total (gains)
losses
included in
net (income)
attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 275   $ (1   $ —       $ —       $ —       $ 7   $ —       $ —       $ —       $ 281   $ (2

Fixed index annuity embedded derivatives

    361     16     —         —         —         —         (1     —         —         376     16

Indexed universal life embedded derivatives

    12     (2     —         —         —         3     —         —         —         13     (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    648     13     —         —         —         10     (1     —         —         670     12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings related to securitization entities

    13     —         —         —         —         —         (1     —         —         12     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 661   $ 13   $ —       $ —       $ —       $ 10   $ (2   $ —       $ —       $ 682   $ 12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2018
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance

as of
June 30,
2018
    Total (gains)
losses
included in
net (income)

attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 250   $ (30   $ —       $ —       $ —       $ 15   $ —       $ —       $ —       $ 235   $ (26

Fixed index annuity embedded derivatives

    419     7     —         —         —         —         (6     —         —         420     7

Indexed universal life embedded derivatives

    14     (7     —         —         —         6     —         —         —         13     (7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    683     (30     —         —         —         21     (6     —         —         668     (26
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 683   $ (30   $ —       $ —       $ —       $ 21   $ (6   $ —       $ —       $ 668   $ (26
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

(Amounts in millions)

  Beginning
balance

as of
January 1,
2017
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
into
Level 3
    Transfer
out of
Level 3
    Ending
balance

as of
June 30,
2017
    Total (gains)
losses
included in
net (income)

attributable
to liabilities
still held
 
    Included
in net
(income)
    Included
in OCI
                 

Policyholder account balances:

                     

GMWB embedded derivatives (1)

  $ 303   $ (36   $ —       $ —       $ —       $ 14   $ —       $ —       $ —       $ 281   $ (33

Fixed index annuity embedded derivatives

    344     36     —         —         —         —         (4     —         —         376     36

Indexed universal life embedded derivatives

    11     (3     —         —         —         5     —         —         —         13     (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total policyholder account balances

    658     (3     —         —         —         19     (4     —         —         670     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings related to securitization entities

    12     1     —         —         —         —         (1     —         —         12     1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 liabilities

  $ 670   $ (2   $ —       $ —       $ —       $ 19   $ (5   $ —       $ —       $ 682   $ 1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value

The following table presents the gains and losses included in net (income) from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Total realized and unrealized (gains) losses included in net (income):

           

Net investment income

   $ —      $ —      $ —      $ —  

Net investment (gains) losses

     (1      13      (30      (2
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1    $ 13    $ (30    $ (2
  

 

 

    

 

 

    

 

 

    

 

 

 

Total (gains) losses included in net (income) attributable to liabilities still held:

           

Net investment income

   $ —      $ —      $ —      $ —  

Net investment (gains) losses

     (1      12      (26      1
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1    $ 12    $ (26    $ 1
  

 

 

    

 

 

    

 

 

    

 

 

 

 

v3.10.0.1
Liability for Policy and Contract Claims (Tables)
6 Months Ended
Jun. 30, 2018
Changes in Liability for Policy and Contract Claims

The following table sets forth changes in our liability for policy and contract claims as of the dates indicated:

 

     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2018      2017  

Beginning balance

   $ 9,594    $ 9,256

Less reinsurance recoverables

     (2,419      (2,409
  

 

 

    

 

 

 

Net beginning balance

     7,175      6,847
  

 

 

    

 

 

 

Incurred related to insured events of:

     

Current year

     1,946      1,804

Prior years

     (244      (244
  

 

 

    

 

 

 

Total incurred

     1,702      1,560
  

 

 

    

 

 

 

Paid related to insured events of:

     

Current year

     (434      (450

Prior years

     (1,266      (1,224
  

 

 

    

 

 

 

Total paid

     (1,700      (1,674
  

 

 

    

 

 

 

Interest on liability for policy and contract claims

     163      147

Foreign currency translation

     (16      18
  

 

 

    

 

 

 

Net ending balance

     7,324      6,898

Add reinsurance recoverables

     2,341      2,341
  

 

 

    

 

 

 

Ending balance

   $ 9,665    $ 9,239
  

 

 

    

 

 

 

 

 

v3.10.0.1
Borrowings (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Long Term Borrowings

The following table sets forth total long-term borrowings as of the dates indicated:

 

(Amounts in millions)

   June 30,
2018
    December 31,
2017
 

Genworth Holdings (1)

    

Floating Rate Senior Secured Term Loan Facility, due 2023

   $ 448   $ —    

6.52% Senior Notes, due 2018

     —         597

7.70% Senior Notes, due 2020

     397     397

7.20% Senior Notes, due 2021

     381     381

7.625% Senior Notes, due 2021

     704     704

4.90% Senior Notes, due 2023

     399     399

4.80% Senior Notes, due 2024

     400     400

6.50% Senior Notes, due 2034

     297     297

6.15% Fixed-to-Floating Rate Junior Subordinated Notes, due 2066

     598     598
  

 

 

   

 

 

 

Subtotal

     3,624     3,773

Bond consent fees

     (30     (33

Deferred borrowing charges

     (23     (16
  

 

 

   

 

 

 

Total Genworth Holdings

     3,571     3,724
  

 

 

   

 

 

 

Canada (2)

    

5.68% Senior Notes, due 2020

     209     219

4.24% Senior Notes, due 2024

     122     128
  

 

 

   

 

 

 

Subtotal

     331     347

Deferred borrowing charges

     (1     (1
  

 

 

   

 

 

 

Total Canada

     330     346
  

 

 

   

 

 

 

Australia (3)

    

Floating Rate Junior Notes, due 2025

     148     156

Deferred borrowing charges

     (2     (2
  

 

 

   

 

 

 

Total Australia

     146     154
  

 

 

   

 

 

 

Total

   $ 4,047   $ 4,224
  

 

 

   

 

 

 

 

(1)  We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread.
(2)  Senior notes issued by Genworth MI Canada Inc. (“Genworth Canada”), our majority-owned subsidiary.
(3)  Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited, our indirect wholly-owned subsidiary.
v3.10.0.1
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2018
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate

The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:

 

     Three months ended
June 30,
    Six months ended
June 30,
 
     2018     2017     2018     2017  

Statutory U.S. federal income tax rate

     21.0     35.0     21.0     35.0

Increase (reduction) in rate resulting from:

        

TCJA, impact from change in tax rate

     5.4       —         3.3       —    

Swaps terminated prior to the TCJA

     3.9       —         3.2       —    

Effect of foreign operations

     3.4       (2.0     3.2       (1.0

Valuation allowance

     (2.0     —         (1.3     —    

Provision to return adjustments

     (1.6     —         (0.7     —    

Other, net

     0.7       (0.5     0.9       (0.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Effective rate

     30.8     32.5     29.6     33.6
  

 

 

   

 

 

   

 

 

   

 

 

 

 

v3.10.0.1
Segment Information (Tables)
6 Months Ended
Jun. 30, 2018
Summary of Revenues of Major Product Groups for Segments and Corporate and Other Activities

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Revenues:

           

U.S. Mortgage Insurance segment

   $ 208    $ 189    $ 408    $ 376
  

 

 

    

 

 

    

 

 

    

 

 

 

Canada Mortgage Insurance segment

     150      204      308      373
  

 

 

    

 

 

    

 

 

    

 

 

 

Australia Mortgage Insurance segment

     136      97      243      219
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment:

           

Long-term care insurance

     1,035      1,036      2,055      2,030

Life insurance

     367      411      746      828

Fixed annuities

     176      210      358      415
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment

     1,578      1,657      3,159      3,273
  

 

 

    

 

 

    

 

 

    

 

 

 

Runoff segment

     80      89      148      176
  

 

 

    

 

 

    

 

 

    

 

 

 

Corporate and Other activities

     7      (13      8      (23
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 2,159    $ 2,223    $ 4,274    $ 4,394
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities

The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated:

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 190    $ 202    $ 302    $ 357

Add: net income attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     249      271      414      487

Loss from discontinued operations, net of taxes

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations

     249      271      414      487

Less: income from continuing operations attributable to noncontrolling interests

     59      69      112      130
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations available to Genworth Financial, Inc.’s common stockholders

     190      202      302      357

Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders:

           

Net investment (gains) losses, net (1)

     12      (79      29      (99

Expenses related to restructuring

     —          —          —          1

Taxes on adjustments

     (2      28      (6      35
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

   $ 200    $ 151    $ 325    $ 294
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the three months ended June 30, 2018 and 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(1) million and zero, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(1) million and $22 million, respectively. For the six months ended June 30, 2018 and 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million and zero, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(12) million and $36 million, respectively.

 

     Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions)

   2018      2017      2018      2017  

Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:

           

U.S. Mortgage Insurance segment

   $ 137    $ 91    $ 248    $ 164
  

 

 

    

 

 

    

 

 

    

 

 

 

Canada Mortgage Insurance segment

     46      41      95      77
  

 

 

    

 

 

    

 

 

    

 

 

 

Australia Mortgage Insurance segment

     22      12      41      25
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment:

           

Long-term care insurance

     22      33      (10      47

Life insurance

     4      (1      3      15

Fixed annuities

     31      7      59      30
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Life Insurance segment

     57      39      52      92
  

 

 

    

 

 

    

 

 

    

 

 

 

Runoff segment

     13      11      23      25

Corporate and Other activities

     (75      (43      (134      (89
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders

   $ 200    $ 151    $ 325    $ 294
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Summary of Total Assets for Segments and Corporate and Other Activities

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:

 

(Amounts in millions)

   June 30,
2018
     December 31,
2017
 

Assets:

     

U.S. Mortgage Insurance segment

   $ 3,393    $ 3,273

Canada Mortgage Insurance segment

     5,255      5,534

Australia Mortgage Insurance segment

     2,696      2,973

U.S. Life Insurance segment

     79,925      81,295

Runoff segment

     10,472      10,907

Corporate and Other activities

     736      1,315
  

 

 

    

 

 

 

Total assets

   $ 102,477    $ 105,297
  

 

 

    

 

 

 

 

v3.10.0.1
Changes in Accumulated Other Comprehensive Income (Tables)
6 Months Ended
Jun. 30, 2018
Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes

The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated:

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses)
(1)
     Derivatives
qualifying as
hedges 
(2)
     Foreign
currency
translation
and other
adjustments
     Total  

Balances as of April 1, 2018

   $ 917      $ 1,927      $ (217    $ 2,627

OCI before reclassifications

     (193 )        (39 )        (98      (330

Amounts reclassified from (to) OCI

     6        (25 )        —          (19
  

 

 

    

 

 

    

 

 

    

 

 

 

Current period OCI

     (187 )        (64 )        (98      (349
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018 before noncontrolling interests

     730        1,863        (315      2,278
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (6 )        —          (43      (49
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018

   $ 736      $ 1,863      $ (272    $ 2,327
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses) 
(1)
     Derivatives
qualifying as
hedges 
(2)
     Foreign
currency
translation
and other
adjustments
     Total  

Balances as of April 1, 2017

   $ 1,243      $ 2,036      $ (183    $ 3,096

OCI before reclassifications

     (32 )        48        61      77

Amounts reclassified from (to) OCI

     (40 )        (20 )        —          (60
  

 

 

    

 

 

    

 

 

    

 

 

 

Current period OCI

     (72 )        28        61      17
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2017 before noncontrolling interests

     1,171        2,064        (122      3,113
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (9 )        —          27      18
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2017

   $ 1,180      $ 2,064      $ (149    $ 3,095
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses)
(1)
     Derivatives
qualifying as
hedges 
(2)
     Foreign
currency
translation
and other
adjustments
     Total  

Balances as of January 1, 2018

   $ 1,085      $ 2,065      $ (123    $ 3,027

Cumulative effect of changes in accounting

     164        14        (47      131

OCI before reclassifications

     (541 )        (165 )        (185      (891

Amounts reclassified from (to) OCI

     13        (51 )        —          (38
  

 

 

    

 

 

    

 

 

    

 

 

 

Current period OCI

     (528 )        (216 )        (185      (929
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018 before noncontrolling interests

     721        1,863        (355      2,229
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (15 )        —          (83      (98
  

 

 

    

 

 

    

 

 

    

 

 

 

Balances as of June 30, 2018

   $ 736      $ 1,863      $ (272    $ 2,327
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.

 

(Amounts in millions)

   Net
unrealized
investment
gains
(losses)
(1)
    Derivatives
qualifying as
hedges
 (2)
    Foreign
currency
translation
and other
adjustments
    Total  

Balances as of January 1, 2017

   $ 1,262     $ 2,085     $ (253   $ 3,094

OCI before reclassifications

     (25 )       19       180     174

Amounts reclassified from (to) OCI

     (58 )       (40 )       —         (98
  

 

 

   

 

 

   

 

 

   

 

 

 

Current period OCI

     (83 )       (21 )       180     76
  

 

 

   

 

 

   

 

 

   

 

 

 

Balances as of June 30, 2017 before noncontrolling interests

     1,179       2,064       (73     3,170
  

 

 

   

 

 

   

 

 

   

 

 

 

Less: change in OCI attributable to noncontrolling interests

     (1 )       —         76     75
  

 

 

   

 

 

   

 

 

   

 

 

 

Balances as of June 30, 2017

   $ 1,180     $ 2,064     $ (149   $ 3,095
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
(2) See note 5 for additional information.
Reclassifications in (out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes

The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented:

 

    Amount reclassified from accumulated
other comprehensive income (loss)
   

Affected line item in the

consolidated statements

of income

    Three months ended
June 30,
    Six months ended
June 30,
   

(Amounts in millions)

  2018     2017     2018     2017    

Net unrealized investment (gains) losses:

         

Unrealized (gains) losses on investments (1)

  $ 8   $ (61   $ 16   $ (89   Net investment (gains) losses

(Provision) benefit for income taxes

    (2     21     (3     31   Provision for income taxes
 

 

 

   

 

 

   

 

 

   

 

 

   

Total

  $ 6   $ (40   $ 13   $ (58  
 

 

 

   

 

 

   

 

 

   

 

 

   

Derivatives qualifying as hedges:

         

Interest rate swaps hedging assets

  $ (39   $ (31   $ (74   $ (61   Net investment income

Interest rate swaps hedging assets

    —         (1     (5     (2   Net investment (gains) losses

Inflation indexed swaps

    —         —         —         —       Net investment income

Benefit for income taxes

    14     12     28     23   Provision for income taxes
 

 

 

   

 

 

   

 

 

   

 

 

   

Total

  $ (25   $ (20   $ (51   $ (40  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

(1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.
v3.10.0.1
Condensed Consolidating Financial Information (Tables)
6 Months Ended
Jun. 30, 2018
Condensed Consolidating Balance Sheet

The following table presents the condensed consolidating balance sheet information as of June 30, 2018:

 

(Amounts in millions)

  Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Assets

         

Investments:

         

Fixed maturity securities available-for-sale, at fair value

  $ —       $ —       $ 60,232   $ (200   $ 60,032

Equity securities, at fair value

    —         —         758     —         758

Commercial mortgage loans

    —         —         6,480     —         6,480

Restricted commercial mortgage loans related to securitization entities

    —         —         90     —         90

Policy loans

    —         —         1,872     —         1,872

Other invested assets

    —         78     1,584     (12     1,650

Investments in subsidiaries

    13,052     12,180     —         (25,232     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

    13,052     12,258     71,016     (25,444     70,882

Cash, cash equivalents and restricted cash

    —         547     1,696     —         2,243

Accrued investment income

    —         —         606     (4     602

Deferred acquisition costs

    —         —         3,086     —         3,086

Intangible assets and goodwill

    —         —         354     —         354

Reinsurance recoverable

    —         —         17,385     —         17,385

Other assets

    5     50     519     —         574

Intercompany notes receivable

    —         165     1     (166     —    

Deferred tax assets

    (15     918     (302     —         601

Separate account assets

    —         —         6,750     —         6,750
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 13,042   $ 13,938   $ 101,111   $ (25,614   $ 102,477
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and equity

         

Liabilities:

         

Future policy benefits

  $ —       $ —       $ 37,913   $ —       $ 37,913

Policyholder account balances

    —         —         23,366     —         23,366

Liability for policy and contract claims

    —         —         9,665     —         9,665

Unearned premiums

    —         —         3,669     —         3,669

Other liabilities

    7     167     1,808     (17     1,965

Intercompany notes payable

    125     200     41     (366     —    

Borrowings related to securitization entities

    —         —         28     —         28

Non-recourse funding obligations

    —         —         310     —         310

Long-term borrowings

    —         3,571     476     —         4,047

Deferred tax liability

    —         —         23     —         23

Separate account liabilities

    —         —         6,750     —         6,750
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    132     3,938     84,049     (383     87,736
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

         

Common stock

    1     —         3     (3     1

Additional paid-in capital

    11,981     9,095     18,420     (27,515     11,981

Accumulated other comprehensive income (loss)

    2,327     2,414     2,338     (4,752     2,327

Retained earnings

    1,301     (1,509     (5,830     7,339     1,301

Treasury stock, at cost

    (2,700     —         —         —         (2,700
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    12,910     10,000     14,931     (24,931     12,910

Noncontrolling interests

    —         —         2,131     (300     1,831
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    12,910     10,000     17,062     (25,231     14,741
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 13,042   $ 13,938   $ 101,111   $ (25,614   $ 102,477
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating balance sheet information as of December 31, 2017:

 

(Amounts in millions)

  Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Assets

         

Investments:

         

Fixed maturity securities available-for-sale, at fair value

  $ —       $ —       $ 62,725   $ (200   $ 62,525

Equity securities, at fair value

    —         —         820     —         820

Commercial mortgage loans

    —         —         6,341     —         6,341

Restricted commercial mortgage loans related to securitization entities

    —         —         107     —         107

Policy loans

    —         —         1,786     —         1,786

Other invested assets

    —         75     1,742     (4     1,813

Investments in subsidiaries

    13,561     12,867     —         (26,428     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments

    13,561     12,942     73,521     (26,632     73,392

Cash, cash equivalents and restricted cash

    —         795     2,080     —         2,875

Accrued investment income

    —         —         647     (3     644

Deferred acquisition costs

    —         —         2,329     —         2,329

Intangible assets and goodwill

    —         —         301     —         301

Reinsurance recoverable

    —         —         17,569     —         17,569

Other assets

    3     54     397     (1     453

Intercompany notes receivable

    —         155     59     (214     —    

Deferred tax assets

    27     —         477     —         504

Separate account assets

    —         —         7,230     —         7,230
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 13,591   $ 13,946   $ 104,610   $ (26,850   $ 105,297
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and equity

         

Liabilities:

         

Future policy benefits

  $ —       $ —       $ 38,472   $ —       $ 38,472

Policyholder account balances

    —         —         24,195     —         24,195

Liability for policy and contract claims

    —         —         9,594     —         9,594

Unearned premiums

    —         —         3,967     —         3,967

Other liabilities

    41     119     1,759     (9     1,910

Intercompany notes payable

    132     259     23     (414     —    

Borrowings related to securitization entities

    —         —         40     —         40

Non-recourse funding obligations

    —         —         310     —         310

Long-term borrowings

    —         3,724     500     —         4,224

Deferred tax liability

    —         (807     834     —         27

Separate account liabilities

    —         —         7,230     —         7,230
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    173     3,295     86,924     (423     89,969
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

         

Common stock

    1     —         3     (3     1

Additional paid-in capital

    11,977     9,096     18,420     (27,516     11,977

Accumulated other comprehensive income (loss)

    3,027     3,037     3,051     (6,088     3,027

Retained earnings

    1,113     (1,482     (5,998     7,480     1,113

Treasury stock, at cost

    (2,700     —         —         —         (2,700
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Genworth Financial, Inc.’s stockholders’ equity

    13,418     10,651     15,476     (26,127     13,418

Noncontrolling interests

    —         —         2,210     (300     1,910
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    13,418     10,651     17,686     (26,427     15,328
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

  $ 13,591   $ 13,946   $ 104,610   $ (26,850   $ 105,297
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

Condensed Consolidating Income Statement

The following table presents the condensed consolidating income statement information for the three months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Revenues:

          

Premiums

   $ —       $ —       $ 1,136   $ —       $ 1,136

Net investment income

     —         4     828     (4     828

Net investment gains (losses)

     —         (8     (6     —         (14

Policy fees and other income

     —         1     209     (1     209
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     —         (3     2,167     (5     2,159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefits and expenses:

          

Benefits and other changes in policy reserves

     —         —         1,205     —         1,205

Interest credited

     —         —         152     —         152

Acquisition and operating expenses, net of deferrals

     7     —         246     —         253

Amortization of deferred acquisition costs and intangibles

     —         —         112     —         112

Interest expense

     1     70     11     (5     77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     8     70     1,726     (5     1,799
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (8     (73     441     —         360

Provision (benefit) for income taxes

     32     (14     93     —         111

Equity in income of subsidiaries

     230     151     —         (381     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     190     92     348     (381     249

Loss from discontinued operations, net of taxes

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     190     92     348     (381     249

Less: net income attributable to noncontrolling interests

     —         —         59     —         59
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 190   $ 92   $ 289   $ (381   $ 190
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating income statement information for the three months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
     Eliminations     Consolidated  

Revenues:

           

Premiums

   $ —       $ —       $ 1,111    $ —       $ 1,111

Net investment income

     (1     2     803      (3     801

Net investment gains (losses)

     —         (5     106      —         101

Policy fees and other income

     —         (1     211      —         210
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     (1     (4     2,231      (3     2,223
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Benefits and expenses:

           

Benefits and other changes in policy reserves

     —         —         1,206      —         1,206

Interest credited

     —         —         163      —         163

Acquisition and operating expenses, net of deferrals

     15     —         225      —         240

Amortization of deferred acquisition costs and intangibles

     —         —         139      —         139

Interest expense

     —         66     11      (3     74
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total benefits and expenses

     15     66     1,744      (3     1,822
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (16     (70     487      —         401

Provision (benefit) for income taxes

     (7     (24     161      —         130

Equity in income of subsidiaries

     211     145     —          (356     —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations

     202     99     326      (356     271

Loss from discontinued operations, net of taxes

     —         —         —          —         —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income

     202     99     326      (356     271

Less: net income attributable to noncontrolling interests

     —         —         69      —         69
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 202   $ 99   $ 257    $ (356   $ 202
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

The following table presents the condensed consolidating income statement information for the six months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Revenues:

          

Premiums

   $ —       $ —       $ 2,276   $ —       $ 2,276

Net investment income

     (1     7     1,633     (7     1,632

Net investment gains (losses)

     —         (2     (43     —         (45

Policy fees and other income

     —         1     412     (2     411
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     (1     6     4,278     (9     4,274
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefits and expenses:

          

Benefits and other changes in policy reserves

     —         —         2,516     —         2,516

Interest credited

     —         —         308     —         308

Acquisition and operating expenses, net of deferrals

     14     —         479     —         493

Amortization of deferred acquisition costs and intangibles

     —         —         216     —         216

Interest expense

     1     138     23     (9     153
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total benefits and expenses

     15     138     3,542     (9     3,686
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (16     (132     736     —         588

Provision (benefit) for income taxes

     38     (31     167     —         174

Equity in income of subsidiaries

     356     196     —         (552     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     302     95     569     (552     414

Loss from discontinued operations, net of taxes

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     302     95     569     (552     414

Less: net income attributable to noncontrolling interests

     —         —         112     —         112
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 302   $ 95   $ 457   $ (552   $ 302
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating income statement information for the six months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
     Eliminations     Consolidated  

Revenues:

           

Premiums

   $ —       $ —       $ 2,247    $ —       $ 2,247

Net investment income

     (2     3     1,597      (7     1,591

Net investment gains (losses)

     —         (8     143      —         135

Policy fees and other income

     —         (1     422      —         421
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     (2     (6     4,409      (7     4,394
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Benefits and expenses:

           

Benefits and other changes in policy reserves

     —         —         2,452      —         2,452

Interest credited

     —         —         330      —         330

Acquisition and operating expenses, net of deferrals

     28     —         482      —         510

Amortization of deferred acquisition costs and intangibles

     —         —         233      —         233

Interest expense

     —         121     22      (7     136
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total benefits and expenses

     28     121     3,519      (7     3,661
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries

     (30     (127     890      —         733

Provision (benefit) for income taxes

     (4     (44     294      —         246

Equity in income of subsidiaries

     383     268     —          (651     —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations

     357     185     596      (651     487

Loss from discontinued operations, net of taxes

     —         —         —          —         —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income

     357     185     596      (651     487

Less: net income attributable to noncontrolling interests

     —         —         130      —         130
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income available to Genworth Financial, Inc.’s common stockholders

   $ 357   $ 185   $ 466    $ (651   $ 357
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 190   $ 92   $ 348   $ (381   $ 249

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (179     (167     (185     346     (185

Net unrealized gains (losses) on other-than-temporarily impaired securities

     (2     (1     (2     3     (2

Derivatives qualifying as hedges

     (64     (64     (68     132     (64

Foreign currency translation and other adjustments

     (55     (46     (97     100     (98
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (300     (278     (352     581     (349
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

     (110     (186     (4     200     (100

Less: comprehensive income attributable to noncontrolling interests

     —         —         10     —         10
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders

   $ (110   $ (186   $ (14   $ 200   $ (110
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 202   $ 99   $ 326   $ (356   $ 271

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (63     (70     (71     132     (72

Derivatives qualifying as hedges

     28     28     32     (60     28

Foreign currency translation and other adjustments

     34     29     61     (63     61
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (1     (13     22     9     17
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     201     86     348     (347     288

Less: comprehensive income attributable to noncontrolling interests

     —         —         87     —         87
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income available to Genworth Financial, Inc.’s common stockholders

   $ 201   $ 86   $ 261   $ (347   $ 201
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2018:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 302   $ 95   $ 569   $ (552   $ 414

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (511     (462     (526     973     (526

Net unrealized gains (losses) on other-than-temporarily impaired securities

     (2     (1     (2     3     (2

Derivatives qualifying as hedges

     (216     (217     (233     450     (216

Foreign currency translation and other adjustments

     (102     (82     (185     184     (185
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (831     (762     (946     1,610     (929
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

     (529     (667     (377     1,058     (515

Less: comprehensive income attributable to noncontrolling interests

     —         —         14     —         14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders

   $ (529   $ (667   $ (391   $ 1,058   $ (529
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 357   $ 185   $ 596   $ (651   $ 487

Other comprehensive income (loss), net of taxes:

          

Net unrealized gains (losses) on securities not other-than-temporarily impaired

     (83     (101     (84     184     (84

Net unrealized gains (losses) on other-than-temporarily impaired securities

     1     1     1     (2     1

Derivatives qualifying as hedges

     (21     (21     (20     41     (21

Foreign currency translation and other adjustments

     104     97     180     (201     180
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     1     (24     77     22     76
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     358     161     673     (629     563

Less: comprehensive income attributable to noncontrolling interests

     —         —         205     —         205
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income available to Genworth Financial, Inc.’s common stockholders

   $ 358   $ 161   $ 468   $ (629   $ 358
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Condensed Consolidating Statement of Cash Flows

The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2018:

 

(Amounts in millions)

  Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Cash flows from (used by) operating activities:

         

Net income

  $ 302   $ 95   $ 569   $ (552   $ 414

Adjustments to reconcile net income to net cash from (used by) operating activities:

         

Equity in income from subsidiaries

    (356     (196     —         552     —    

Dividends from subsidiaries

    50     91     (141     —         —    

Amortization of fixed maturity securities discounts and premiums

    —         3     (65     —         (62

Net investment losses

    —         2     43     —         45

Charges assessed to policyholders

    —         —         (359     —         (359

Acquisition costs deferred

    —         —         (40     —         (40

Amortization of deferred acquisition costs and intangibles

    —         —         216     —         216

Deferred income taxes

    42     (117     158     —         83

Trading securities, limited partnerships and derivative instruments

    —         22     (217     —         (195

Stock-based compensation expense

    15     —         1     —         16

Change in certain assets and liabilities:

         

Accrued investment income and other assets

    (1     59     (147     —         (89

Insurance reserves

    —         —         691     —         691

Current tax liabilities

    (27     87     (97     —         (37

Other liabilities, policy and contract claims and other policy-related balances

    (15     (50     (49     (8     (122
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash from (used by) operating activities

    10     (4     563     (8     561
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used by investing activities:

         

Proceeds from maturities and repayments of investments:

         

Fixed maturity securities

    —         —         1,979     —         1,979

Commercial mortgage loans

    —         —         350     —         350

Restricted commercial mortgage loans related to securitization entities

    —         —         16     —         16

Proceeds from sales of investments:

         

Fixed maturity and equity securities

    —         —         1,920     —         1,920

Purchases and originations of investments:

         

Fixed maturity and equity securities

    —         —         (4,082     —         (4,082

Commercial mortgage loans

    —         —         (489     —         (489

Other invested assets, net

    —         —         85     8     93

Policy loans, net

    —         —         15     —         15

Intercompany notes receivable

    —         (10     58     (48     —    

Capital contributions to subsidiaries

    (1     —         1     —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

    (1     (10     (147     (40     (198
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used by financing activities:

         

Deposits to universal life and investment contracts

    —         —         503     —         503

Withdrawals from universal life and investment contracts

    —         —         (1,177     —         (1,177

Proceeds from the issuance of long-term debt

    —         441     —         —         441

Repayment and repurchase of long-term debt

    —         (597     —         —         (597

Repayment of borrowings related to securitization entities

    —         —         (12     —         (12

Repurchase of subsidiary shares

    —         —         (49     —         (49

Dividends paid to noncontrolling interests

    —         —         (50     —         (50

Intercompany notes payable

    (7     (59     18     48     —    

Other, net

    (2     (19     19     —         (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by financing activities

    (9     (234     (748     48     (943
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

    —         —         (52     —         (52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash, cash equivalents and restricted cash

    —         (248     (384     —         (632

Cash, cash equivalents and restricted cash at beginning of period

    —         795     2,080     —         2,875
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

  $ —       $ 547   $ 1,696   $ —       $ 2,243
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2017:

 

(Amounts in millions)

   Parent
Guarantor
    Issuer     All Other
Subsidiaries
    Eliminations     Consolidated  

Cash flows from (used by) operating activities:

          

Net income

   $ 357   $ 185   $ 596   $ (651   $ 487

Adjustments to reconcile net income to net cash from (used by) operating activities:

          

Equity in income from subsidiaries

     (383     (268     —         651     —    

Dividends from subsidiaries

     —         64     (64     —         —    

Amortization of fixed maturity securities discounts and premiums

     —         3     (79     —         (76

Net investment (gains) losses

     —         8     (143     —         (135

Charges assessed to policyholders

     —         —         (365     —         (365

Acquisition costs deferred

     —         —         (44     —         (44

Amortization of deferred acquisition costs and intangibles

     —         —         233     —         233

Deferred income taxes

     6     (14     174     —         166

Trading securities, limited partnerships and derivative instruments

     —         1     430     —         431

Stock-based compensation expense

     14     —         4     —         18

Change in certain assets and liabilities:

          

Accrued investment income and other assets

     (6     (30     12     1     (23

Insurance reserves

     —         —         806     —         806

Current tax liabilities

     (4     (88     60     —         (32

Other liabilities, policy and contract claims and other policy-related balances

     (9     64     (210     (3     (158
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash from (used by) operating activities

     (25     (75     1,410     (2     1,308
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used by investing activities:

          

Proceeds from maturities and repayments of investments:

          

Fixed maturity securities

     —         —         2,358     —         2,358

Commercial mortgage loans

     —         —         307     —         307

Restricted commercial mortgage loans related to securitization entities

     —         —         11     —         11

Proceeds from sales of investments:

          

Fixed maturity and equity securities

     —         —         2,587     —         2,587

Purchases and originations of investments:

          

Fixed maturity and equity securities

     —         (46     (4,687     —         (4,733

Commercial mortgage loans

     —         —         (431     —         (431

Other invested assets, net

     —         —         (640     2     (638

Policy loans, net

     —         —         21     —         21

Intercompany notes receivable

     —         (51     47     4     —    

Capital contributions to subsidiaries

     (7     —         7     —         —    

Payments for business purchased, net of cash acquired

     (7     —         2     —         (5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

     (14     (97     (418     6     (523
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from (used by) financing activities:

          

Deposits to universal life and investment contracts

     —         —         429     —         429

Withdrawals from universal life and investment contracts

     —         —         (1,091     —         (1,091

Repayment of borrowings related to securitization entities

     —         —         (12     —         (12

Dividends paid to noncontrolling interests

     —         —         (52     —         (52

Intercompany notes payable

     40     (47     11     (4     —    

Other, net

     (1     (21     (7     —         (29
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash from (used by) financing activities

     39     (68     (722     (4     (755
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     —         —         39     —         39
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash, cash equivalents and restricted cash

     —         (240     309     —         69

Cash, cash equivalents and restricted cash at beginning of period

     —         998     1,786     —         2,784
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ —       $ 758   $ 2,095   $ —       $ 2,853
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

v3.10.0.1
Formation of Genworth and Basis of Presentation - Additional Information (Detail)
$ / shares in Units, $ in Billions
6 Months Ended
Oct. 21, 2016
USD ($)
$ / shares
Jun. 30, 2018
Segment
Apr. 01, 2013
Entity Information [Line Items]      
Number of operating segments | Segment   5  
Genworth Holdings      
Entity Information [Line Items]      
Percentage of subsidiary equity ownership     100.00%
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement      
Entity Information [Line Items]      
Total transaction value to acquire all of our outstanding common stock | $ $ 2.7    
Per share amount to acquire all of our outstanding common stock | $ / shares $ 5.43    
v3.10.0.1
Accounting Changes - Summary of Components for Cumulative Effect Adjustment (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Jan. 01, 2018
Deferred taxes:    
Cumulative effect of changes in accounting $ 164  
Tax Cuts And Jobs Act of 2017    
Deferred taxes:    
Net unrealized gains on investment securities   $ 0
Net unrealized gains on derivatives   0
Investment in foreign subsidiaries   0
Accrued commission and general expenses   0
Cumulative effect of changes in accounting   0
Accumulated other comprehensive income (loss) / Net unrealized investment (gains) losses | Tax Cuts And Jobs Act of 2017    
Deferred taxes:    
Net unrealized gains on investment securities   192
Net unrealized gains on derivatives   0
Investment in foreign subsidiaries   (3)
Accrued commission and general expenses   0
Cumulative effect of changes in accounting   189
Accumulated other comprehensive income (loss) / Derivatives qualifying as hedges | Tax Cuts And Jobs Act of 2017    
Deferred taxes:    
Net unrealized gains on investment securities   0
Net unrealized gains on derivatives   12
Investment in foreign subsidiaries   0
Accrued commission and general expenses   0
Cumulative effect of changes in accounting   12
Accumulated other comprehensive income (loss) / Foreign currency translation and other adjustments | Tax Cuts And Jobs Act of 2017    
Deferred taxes:    
Net unrealized gains on investment securities   0
Net unrealized gains on derivatives   0
Investment in foreign subsidiaries   (46)
Accrued commission and general expenses   (1)
Cumulative effect of changes in accounting   (47)
Retained earnings | Tax Cuts And Jobs Act of 2017    
Deferred taxes:    
Net unrealized gains on investment securities   (192)
Net unrealized gains on derivatives   (12)
Investment in foreign subsidiaries   49
Accrued commission and general expenses   1
Cumulative effect of changes in accounting   $ (154)
v3.10.0.1
Accounting Changes - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jan. 01, 2018
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Accounting Policies [Abstract]        
Cumulative effect on retained earnings   $ 17 $ 9  
Accumulated other comprehensive income   2,327   $ 3,027
Net cash from operating activities   561 1,308  
Net cash from financing activities   $ (943) $ (755)  
Accounting Standards Update 2016-15 | Other Liabilities, Policy and Contract Claims and Other Policy Related Balances        
Accounting Policies [Abstract]        
Net cash from operating activities $ 20      
Accounting Standards Update 2016-15 | Repayment and Repurchase of Long-Term Debt        
Accounting Policies [Abstract]        
Net cash from financing activities (20)      
Accounting Standards Update 2017-12 | Derivative and Hedging        
Accounting Policies [Abstract]        
Cumulative effect on retained earnings (2)      
Accumulated other comprehensive income 2      
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Limited Partner        
Accounting Policies [Abstract]        
Cumulative effect on retained earnings 17      
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Equity Securities        
Accounting Policies [Abstract]        
Cumulative effect on retained earnings 25      
Accumulated other comprehensive income $ (25)      
v3.10.0.1
Earning Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Earnings Per Share [Abstract]        
Weighted-average shares used in basic earnings per share calculations 500.6 499.0 500.1 498.8
Stock options, restricted stock units and stock appreciation rights 2.0 2.2 2.5 2.3
Weighted-average shares used in diluted earnings per share calculations 502.6 501.2 502.6 501.1
Income from continuing operations:        
Income from continuing operations $ 249 $ 271 $ 414 $ 487
Less: income from continuing operations attributable to noncontrolling interests 59 69 112 130
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders $ 190 $ 202 $ 302 $ 357
Basic per share $ 0.38 $ 0.40 $ 0.60 $ 0.72
Diluted per share $ 0.38 $ 0.40 $ 0.60 $ 0.71
Loss from discontinued operations:        
Loss from discontinued operations, net of taxes $ 0 $ 0 $ 0 $ 0
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests 0 0 0 0
Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders $ 0 $ 0 $ 0 $ 0
Basic per share $ 0 $ 0 $ 0 $ 0
Diluted per share $ 0 $ 0 $ 0 $ 0
Net income:        
Income from continuing operations $ 249 $ 271 $ 414 $ 487
Loss from discontinued operations, net of taxes 0 0 0 0
Net income 249 271 414 487
Less: net income attributable to noncontrolling interests 59 69 112 130
Net income available to Genworth Financial, Inc.'s common stockholders $ 190 $ 202 $ 302 $ 357
Basic per share $ 0.38 $ 0.40 $ 0.60 $ 0.72
Diluted per share $ 0.38 $ 0.40 $ 0.60 $ 0.71
v3.10.0.1
Net Investment Income (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Net Investment Income [Line Items]        
Gross investment income before expenses and fees $ 851 $ 824 $ 1,677 $ 1,635
Expenses and fees (23) (23) (45) (44)
Net investment income 828 801 1,632 1,591
Fixed maturity securities - taxable        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 651 649 1,286 1,290
Fixed maturity securities - non-taxable        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 3 3 6 6
Commercial mortgage loans        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 77 76 159 153
Restricted commercial mortgage loans related to securitization entities        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 2 2 4 4
Equity Securities        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 10 9 20 17
Other invested assets        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 53 35 92 67
Restricted other invested assets related to securitization entities        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 0 1 0 1
Policy Loans        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 41 39 84 81
Cash, cash equivalents and short-term investments        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees $ 14 $ 10 $ 26 $ 16
v3.10.0.1
Net Investment Gains (Losses) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Investments [Abstract]        
Realized gains $ 13 $ 74 $ 20 $ 137
Realized losses (21) (11) (37) (45)
Net realized gains (losses) on available-for-sale securities (8) 63 (17) 92
Total other-than-temporary impairments 0 (2) 0 (3)
Portion of other-than-temporary impairments included in other comprehensive income (loss) 0 0 0 0
Net other-than-temporary impairments 0 (2) 0 (3)
Net realized gains (losses) on equity securities sold 8 0 10 0
Net unrealized gains (losses) on equity securities still held 3 0 (15) 0
Trading securities 0 1 0 1
Limited partnerships (2) 0 5 0
Commercial mortgage loans 0 1 0 2
Net gains (losses) related to securitization entities 0 2 0 4
Derivative instruments [1] (15) 36 (28) 39
Net investment gains (losses) $ (14) $ 101 $ (45) $ 135
[1] See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).
v3.10.0.1
Investments - Additional Information (Detail)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
USD ($)
Loan
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Loan
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Loan
Schedule of Investments [Line Items]          
Aggregate fair value of securities sold $ 640 $ 228 $ 1,259 $ 1,104  
Aggregate fair value of securities sold, percentage of book value 97.00% 95.00% 97.00% 96.00%  
Percentage of investment portfolio by which no other industry group exceeded     10.00%    
Percentage of stockholders' equity by which no single issuer of fixed maturity securities exceeded     10    
Commercial mortgage loans outstanding more than 90 days, interest accruing $ 0   $ 0   $ 0
Commercial mortgage loans on nonaccrual status, past due less than 90 days $ 0   $ 0   $ 0
Commercial mortgage loans modified or extended, number of loans | Loan 2   2   10
Commercial mortgage loans modified or extended, carrying value $ 12   $ 12   $ 27
Commercial mortgage loans, recorded investment 6,492   6,492   6,353
Investments in partnerships or similar entities generally considered VIEs 295   295   222
Floating rate commercial mortgage loans          
Schedule of Investments [Line Items]          
Commercial mortgage loans, recorded investment $ 0   $ 0   0
Limited Partnership Interests          
Schedule of Investments [Line Items]          
Minimum threshold ownership percentage of limited partnership interest, equity method 3.00%   3.00%    
Finance and insurance | Fixed maturity securities          
Schedule of Investments [Line Items]          
Percent of investment portfolio, greater than 10%     22.00%    
Utilities | Fixed maturity securities          
Schedule of Investments [Line Items]          
Percent of investment portfolio, greater than 10%     15.00%    
Consumer-non-cyclical | Fixed maturity securities          
Schedule of Investments [Line Items]          
Percent of investment portfolio, greater than 10%     13.00%    
Industrial          
Schedule of Investments [Line Items]          
Individually impaired commercial mortgage loans   $ 0   $ 0  
Commercial mortgage loans, recorded investment $ 1,644   $ 1,644   $ 1,628
Office          
Schedule of Investments [Line Items]          
Impaired loans, number of loans | Loan 1   1   1
Impaired loans, unpaid principal balance $ 6   $ 6   $ 6
Commercial mortgage loans, recorded investment $ 1,482   $ 1,482   $ 1,510
v3.10.0.1
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]        
Cumulative credit losses, beginning balance $ 28 $ 41 $ 32 $ 42
Securities sold, paid down or disposed (3) (3) (7) (4)
Cumulative credit losses, ending balance $ 25 $ 38 $ 25 $ 38
v3.10.0.1
Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Mar. 31, 2018
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]            
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves $ (1,549) $ (3,451)        
Income taxes, net (230) (583)        
Net unrealized investment gains (losses) including noncontrolling interests 776 1,160        
Less: net unrealized investment gains (losses) attributable to noncontrolling interests 40 75        
Net unrealized investment gains (losses) 736 1,085 $ 917 $ 1,180 $ 1,243 $ 1,262
Net Unrealized Gains (Losses) On Investment Securities            
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]            
Fixed maturity securities 2,555 5,125        
Equity securities   69        
Subtotal [1] $ 2,555 $ 5,194        
[1] Excludes foreign exchange.
v3.10.0.1
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Investments [Abstract]        
Net unrealized investment gains (losses), beginning of period $ 917 $ 1,243 $ 1,085 $ 1,262
Cumulative effect of changes in accounting        
Stranded tax effects     189  
Recognition and measurement of financial assets and liabilities, net of taxes of $18 and $-     (25)  
Recognition and measurement of financial assets and liabilities,tax amount     18  
Total cumulative effect of changes in accounting 164   164  
Unrealized gains (losses) on investment securities (905) 995 (2,586) 1,387
Adjustment to deferred acquisition costs 467 (741) 909 (1,046)
Adjustment to present value of future profits 20 (28) 56 (33)
Adjustment to sales inducements 9 (6) 29 (11)
Adjustment to benefit reserves 162 (269) 902 (337)
Provision for income taxes 54 17 149 15
Change in unrealized gains (losses) on investment securities (193) (32) (541) (25)
Reclassification adjustments to net investment (gains) losses, net of taxes 6 (40) 13 (58)
Change in net unrealized investment gains (losses) (187) (72) (528) (83)
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (6) (9) (15) (1)
Net unrealized investment gains (losses), end of period $ 736 $ 1,180 $ 736 $ 1,180
v3.10.0.1
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]        
Recognition and measurement of financial assets and liabilities,tax amount     $ 18  
Reclassification adjustments to net investment (gains) losses, taxes $ (2) $ 21 $ (3) $ 31
v3.10.0.1
Amortized Cost or Cost, Gross Unrealized Gains (Losses) and Fair Value of Fixed Maturity and Equity Securities Classified as Available-for-Sale (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Schedule of Investments [Line Items]    
Amortized cost or cost, total $ 57,572 $ 58,248
Fair value, total 60,032 63,345
Amortized cost or cost, fixed maturity securities 57,572 57,492
Fair value, fixed maturity securities 60,032 62,525
Amortized cost or cost, equity securities   756
Fair value, equity securities 758 820
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 4,733 4,681
Fair value, fixed maturity securities 5,353 5,548
Fixed maturity securities | State and Political Subdivisions    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,699 2,678
Fair value, fixed maturity securities 2,855 2,926
Fixed maturity securities | Non-U.S. government    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,347 2,147
Fair value, fixed maturity securities 2,380 2,233
Fixed maturity securities | U.S. corporate    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 26,347 25,934
Fair value, fixed maturity securities 27,569 28,636
Fixed maturity securities | U.S. corporate | Utilities    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 4,550 4,396
Fair value, fixed maturity securities 4,879 4,998
Fixed maturity securities | U.S. corporate | Energy    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,160 2,239
Fair value, fixed maturity securities 2,270 2,458
Fixed maturity securities | U.S. corporate | Finance and insurance    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 6,095 5,984
Fair value, fixed maturity securities 6,275 6,528
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 4,298 4,314
Fair value, fixed maturity securities 4,541 4,831
Fixed maturity securities | U.S. corporate | Technology and communications    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,709 2,665
Fair value, fixed maturity securities 2,781 2,845
Fixed maturity securities | U.S. corporate | Industrial    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 1,244 1,241
Fair value, fixed maturity securities 1,283 1,346
Fixed maturity securities | U.S. corporate | Capital goods    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,216 2,087
Fair value, fixed maturity securities 2,361 2,355
Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 1,538 1,493
Fair value, fixed maturity securities 1,573 1,605
Fixed maturity securities | U.S. corporate | Transportation    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 1,200 1,160
Fair value, fixed maturity securities 1,252 1,291
Fixed maturity securities | U.S. corporate | Other    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 337 355
Fair value, fixed maturity securities 354 379
Fixed maturity securities | Non-U.S. corporate    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 11,667 11,778
Fair value, fixed maturity securities 12,002 12,611
Fixed maturity securities | Non-U.S. corporate | Utilities    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 962 979
Fair value, fixed maturity securities 962 1,017
Fixed maturity securities | Non-U.S. corporate | Energy    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 1,316 1,337
Fair value, fixed maturity securities 1,399 1,490
Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,471 2,567
Fair value, fixed maturity securities 2,537 2,735
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 709 686
Fair value, fixed maturity securities 702 712
Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 992 913
Fair value, fixed maturity securities 1,007 982
Fixed maturity securities | Non-U.S. corporate | Industrial    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 943 958
Fair value, fixed maturity securities 977 1,044
Fixed maturity securities | Non-U.S. corporate | Capital goods    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 603 614
Fair value, fixed maturity securities 611 645
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 527 532
Fair value, fixed maturity securities 522 540
Fixed maturity securities | Non-U.S. corporate | Transportation    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 690 656
Fair value, fixed maturity securities 727 721
Fixed maturity securities | Non-U.S. corporate | Other    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,454 2,536
Fair value, fixed maturity securities 2,558 2,725
Fixed maturity securities | Residential mortgage-backed    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 3,426 3,831
Fair value, fixed maturity securities 3,567 4,057
Fixed maturity securities | Commercial mortgage-backed    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 3,387 3,387
Fair value, fixed maturity securities 3,349 3,446
Fixed maturity securities | Other asset-backed    
Schedule of Investments [Line Items]    
Amortized cost or cost, fixed maturity securities 2,966 3,056
Fair value, fixed maturity securities 2,957 3,068
Not other-than-temporary impairments    
Schedule of Investments [Line Items]    
Gross unrealized gains, equity securities   72
Gross unrealized losses, equity securities   (8)
Gross unrealized gains 3,299 5,288
Gross unrealized losses (853) (208)
Gross unrealized gains, fixed maturity securities 3,299 5,216
Gross unrealized losses, fixed maturity securities (853) (200)
Not other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 632 870
Gross unrealized losses, fixed maturity securities (12) (3)
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 195 270
Gross unrealized losses, fixed maturity securities (39) (22)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 69 106
Gross unrealized losses, fixed maturity securities (36) (20)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 1,689 2,770
Gross unrealized losses, fixed maturity securities (467) (68)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 395 611
Gross unrealized losses, fixed maturity securities (66) (9)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 139 227
Gross unrealized losses, fixed maturity securities (29) (8)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 288 556
Gross unrealized losses, fixed maturity securities (108) (12)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 323 530
Gross unrealized losses, fixed maturity securities (80) (13)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 133 192
Gross unrealized losses, fixed maturity securities (61) (12)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 59 106
Gross unrealized losses, fixed maturity securities (20) (1)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 185 273
Gross unrealized losses, fixed maturity securities (40) (5)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 66 116
Gross unrealized losses, fixed maturity securities (31) (4)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 83 134
Gross unrealized losses, fixed maturity securities (31) (3)
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 18 25
Gross unrealized losses, fixed maturity securities (1) (1)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 505 866
Gross unrealized losses, fixed maturity securities (170) (33)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 22 42
Gross unrealized losses, fixed maturity securities (22) (4)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 101 158
Gross unrealized losses, fixed maturity securities (18) (5)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 102 174
Gross unrealized losses, fixed maturity securities (36) (6)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 11 30
Gross unrealized losses, fixed maturity securities (18) (4)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 30 71
Gross unrealized losses, fixed maturity securities (15) (2)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 46 88
Gross unrealized losses, fixed maturity securities (12) (2)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 15 33
Gross unrealized losses, fixed maturity securities (7) (2)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 2 9
Gross unrealized losses, fixed maturity securities (7) (1)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 48 68
Gross unrealized losses, fixed maturity securities (11) (3)
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 128 193
Gross unrealized losses, fixed maturity securities (24) (4)
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 156 223
Gross unrealized losses, fixed maturity securities (28) (11)
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 46 94
Gross unrealized losses, fixed maturity securities (84) (37)
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 7 17
Gross unrealized losses, fixed maturity securities (17) (6)
Other-than-temporary impairments    
Schedule of Investments [Line Items]    
Gross unrealized gains, equity securities   0
Gross unrealized losses, equity securities   0
Gross unrealized gains 14 17
Gross unrealized losses 0 0
Gross unrealized gains, fixed maturity securities 14 17
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. government    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 0
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 13 14
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 0 2
Gross unrealized losses, fixed maturity securities 0 0
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed    
Schedule of Investments [Line Items]    
Gross unrealized gains, fixed maturity securities 1 1
Gross unrealized losses, fixed maturity securities $ 0 $ 0
v3.10.0.1
Gross Unrealized Losses and Fair Value of Investment Securities (Detail)
$ in Millions
Jun. 30, 2018
USD ($)
Securities
Dec. 31, 2017
USD ($)
Securities
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 18,743 $ 6,090
Less than 12 months, Gross unrealized losses $ (579) $ (65)
Less than 12 months, Number of securities in a continuous loss position | Securities 2,716 1,039
12 months or more, Fair value $ 3,837 $ 3,661
12 months or more, Gross unrealized losses $ (274) $ (143)
12 months or more, Number of securities in a continuous loss position | Securities 537 587
Fair value $ 22,580 $ 9,751
Gross unrealized losses $ (853) $ (208)
Number of securities in a continuous loss position | Securities 3,253 1,626
Investment grade    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 17,627 $ 5,867
Less than 12 months, Gross unrealized losses $ (535) $ (55)
Less than 12 months, Number of securities in a continuous loss position | Securities 2,555 898
12 months or more, Fair value $ 3,704 $ 3,488
12 months or more, Gross unrealized losses $ (261) $ (135)
12 months or more, Number of securities in a continuous loss position | Securities 508 528
Fair value $ 21,331 $ 9,355
Gross unrealized losses $ (796) $ (190)
Number of securities in a continuous loss position | Securities 3,063 1,426
Below investment grade    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 1,116 $ 223
Less than 12 months, Gross unrealized losses $ (44) $ (10)
Less than 12 months, Number of securities in a continuous loss position | Securities 161 141
12 months or more, Fair value $ 133 $ 173
12 months or more, Gross unrealized losses $ (13) $ (8)
12 months or more, Number of securities in a continuous loss position | Securities 29 59
Fair value $ 1,249 $ 396
Gross unrealized losses $ (57) $ (18)
Number of securities in a continuous loss position | Securities 190 200
Fixed maturity securities    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 18,743 $ 6,016
Less than 12 months, Gross unrealized losses $ (579) $ (62)
Less than 12 months, Number of securities in a continuous loss position | Securities 2,716 905
12 months or more, Fair value $ 3,837 $ 3,561
12 months or more, Gross unrealized losses $ (274) $ (138)
12 months or more, Number of securities in a continuous loss position | Securities 537 529
Fair value $ 22,580 $ 9,577
Gross unrealized losses $ (853) $ (200)
Number of securities in a continuous loss position | Securities 3,253 1,434
Fixed maturity securities | Less Than 20 Percent Below Cost    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 18,743 $ 6,016
Less than 12 months, Gross unrealized losses $ (579) $ (62)
Less than 12 months, Number of securities in a continuous loss position | Securities 2,714 905
12 months or more, Fair value $ 3,828 $ 3,555
12 months or more, Gross unrealized losses $ (270) $ (136)
12 months or more, Number of securities in a continuous loss position | Securities 533 526
Fair value $ 22,571 $ 9,571
Gross unrealized losses $ (849) $ (198)
Number of securities in a continuous loss position | Securities 3,247 1,431
Fixed maturity securities | 20 To 50 percent below cost    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 0 $ 0
Less than 12 months, Gross unrealized losses $ 0 $ 0
Less than 12 months, Number of securities in a continuous loss position | Securities 2 0
12 months or more, Fair value $ 9 $ 6
12 months or more, Gross unrealized losses $ (4) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 4 3
Fair value $ 9 $ 6
Gross unrealized losses $ (4) $ (2)
Number of securities in a continuous loss position | Securities 6 3
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 314 $ 78
Less than 12 months, Gross unrealized losses $ (6) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 35 21
12 months or more, Fair value $ 84 $ 94
12 months or more, Gross unrealized losses $ (6) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 5 7
Fair value $ 398 $ 172
Gross unrealized losses $ (12) $ (3)
Number of securities in a continuous loss position | Securities 40 28
Fixed maturity securities | State and Political Subdivisions    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 482 $ 125
Less than 12 months, Gross unrealized losses $ (13) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 98 35
12 months or more, Fair value $ 318 $ 327
12 months or more, Gross unrealized losses $ (26) $ (21)
12 months or more, Number of securities in a continuous loss position | Securities 41 42
Fair value $ 800 $ 452
Gross unrealized losses $ (39) $ (22)
Number of securities in a continuous loss position | Securities 139 77
Fixed maturity securities | Non-U.S. government    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 649 $ 583
Less than 12 months, Gross unrealized losses $ (18) $ (7)
Less than 12 months, Number of securities in a continuous loss position | Securities 85 26
12 months or more, Fair value $ 418 $ 239
12 months or more, Gross unrealized losses $ (18) $ (13)
12 months or more, Number of securities in a continuous loss position | Securities 25 20
Fair value $ 1,067 $ 822
Gross unrealized losses $ (36) $ (20)
Number of securities in a continuous loss position | Securities 110 46
Fixed maturity securities | U.S. corporate    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 9,473 $ 1,871
Less than 12 months, Gross unrealized losses $ (354) $ (26)
Less than 12 months, Number of securities in a continuous loss position | Securities 1,322 296
12 months or more, Fair value $ 1,215 $ 1,347
12 months or more, Gross unrealized losses $ (113) $ (42)
12 months or more, Number of securities in a continuous loss position | Securities 167 190
Fair value $ 10,688 $ 3,218
Gross unrealized losses $ (467) $ (68)
Number of securities in a continuous loss position | Securities 1,489 486
Fixed maturity securities | Non-U.S. corporate    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 4,146 $ 1,323
Less than 12 months, Gross unrealized losses $ (126) $ (12)
Less than 12 months, Number of securities in a continuous loss position | Securities 574 217
12 months or more, Fair value $ 697 $ 548
12 months or more, Gross unrealized losses $ (44) $ (21)
12 months or more, Number of securities in a continuous loss position | Securities 96 77
Fair value $ 4,843 $ 1,871
Gross unrealized losses $ (170) $ (33)
Number of securities in a continuous loss position | Securities 670 294
Fixed maturity securities | Residential mortgage-backed    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 866 $ 707
Less than 12 months, Gross unrealized losses $ (19) $ (7)
Less than 12 months, Number of securities in a continuous loss position | Securities 133 81
12 months or more, Fair value $ 321 $ 130
12 months or more, Gross unrealized losses $ (9) $ (4)
12 months or more, Number of securities in a continuous loss position | Securities 62 46
Fair value $ 1,187 $ 837
Gross unrealized losses $ (28) $ (11)
Number of securities in a continuous loss position | Securities 195 127
Fixed maturity securities | Commercial mortgage-backed    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 1,159 $ 476
Less than 12 months, Gross unrealized losses $ (29) $ (4)
Less than 12 months, Number of securities in a continuous loss position | Securities 168 69
12 months or more, Fair value $ 590 $ 646
12 months or more, Gross unrealized losses $ (55) $ (33)
12 months or more, Number of securities in a continuous loss position | Securities 87 90
Fair value $ 1,749 $ 1,122
Gross unrealized losses $ (84) $ (37)
Number of securities in a continuous loss position | Securities 255 159
Fixed maturity securities | Other asset-backed    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 1,654 $ 853
Less than 12 months, Gross unrealized losses $ (14) $ (4)
Less than 12 months, Number of securities in a continuous loss position | Securities 301 160
12 months or more, Fair value $ 194 $ 230
12 months or more, Gross unrealized losses $ (3) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 54 57
Fair value $ 1,848 $ 1,083
Gross unrealized losses $ (17) $ (6)
Number of securities in a continuous loss position | Securities 355 217
Equity Securities    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value   $ 74
Less than 12 months, Gross unrealized losses   $ (3)
Less than 12 months, Number of securities in a continuous loss position | Securities   134
12 months or more, Fair value   $ 100
12 months or more, Gross unrealized losses   $ (5)
12 months or more, Number of securities in a continuous loss position | Securities   58
Fair value   $ 174
Gross unrealized losses   $ (8)
Number of securities in a continuous loss position | Securities   192
Equity Securities | Less Than 20 Percent Below Cost    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value   $ 74
Less than 12 months, Gross unrealized losses   $ (3)
Less than 12 months, Number of securities in a continuous loss position | Securities   134
12 months or more, Fair value   $ 100
12 months or more, Gross unrealized losses   $ (5)
12 months or more, Number of securities in a continuous loss position | Securities   58
Fair value   $ 174
Gross unrealized losses   $ (8)
Number of securities in a continuous loss position | Securities   192
v3.10.0.1
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail)
$ in Millions
Jun. 30, 2018
USD ($)
Securities
Dec. 31, 2017
USD ($)
Securities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 18,743 $ 6,090
Less than 12 months, Gross unrealized losses $ (579) $ (65)
Less than 12 months, Number of securities in a continuous loss position | Securities 2,716 1,039
12 months or more, Fair value $ 3,837 $ 3,661
12 months or more, Gross unrealized losses $ (274) $ (143)
12 months or more, Number of securities in a continuous loss position | Securities 537 587
Fair value $ 22,580 $ 9,751
Gross unrealized losses $ (853) $ (208)
Number of securities in a continuous loss position | Securities 3,253 1,626
Fixed maturity securities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 18,743 $ 6,016
Less than 12 months, Gross unrealized losses $ (579) $ (62)
Less than 12 months, Number of securities in a continuous loss position | Securities 2,716 905
12 months or more, Fair value $ 3,837 $ 3,561
12 months or more, Gross unrealized losses $ (274) $ (138)
12 months or more, Number of securities in a continuous loss position | Securities 537 529
Fair value $ 22,580 $ 9,577
Gross unrealized losses $ (853) $ (200)
Number of securities in a continuous loss position | Securities 3,253 1,434
Fixed maturity securities | U.S. corporate    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 9,473 $ 1,871
Less than 12 months, Gross unrealized losses $ (354) $ (26)
Less than 12 months, Number of securities in a continuous loss position | Securities 1,322 296
12 months or more, Fair value $ 1,215 $ 1,347
12 months or more, Gross unrealized losses $ (113) $ (42)
12 months or more, Number of securities in a continuous loss position | Securities 167 190
Fair value $ 10,688 $ 3,218
Gross unrealized losses $ (467) $ (68)
Number of securities in a continuous loss position | Securities 1,489 486
Fixed maturity securities | U.S. corporate | Utilities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 1,187 $ 181
Less than 12 months, Gross unrealized losses $ (46) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 185 33
12 months or more, Fair value $ 214 $ 219
12 months or more, Gross unrealized losses $ (20) $ (7)
12 months or more, Number of securities in a continuous loss position | Securities 35 36
Fair value $ 1,401 $ 400
Gross unrealized losses $ (66) $ (9)
Number of securities in a continuous loss position | Securities 220 69
Fixed maturity securities | U.S. corporate | Energy    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 639 $ 106
Less than 12 months, Gross unrealized losses $ (19) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 102 22
12 months or more, Fair value $ 119 $ 140
12 months or more, Gross unrealized losses $ (10) $ (7)
12 months or more, Number of securities in a continuous loss position | Securities 12 15
Fair value $ 758 $ 246
Gross unrealized losses $ (29) $ (8)
Number of securities in a continuous loss position | Securities 114 37
Fixed maturity securities | U.S. corporate | Finance and insurance    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 2,596 $ 626
Less than 12 months, Gross unrealized losses $ (90) $ (6)
Less than 12 months, Number of securities in a continuous loss position | Securities 366 91
12 months or more, Fair value $ 243 $ 222
12 months or more, Gross unrealized losses $ (18) $ (6)
12 months or more, Number of securities in a continuous loss position | Securities 32 30
Fair value $ 2,839 $ 848
Gross unrealized losses $ (108) $ (12)
Number of securities in a continuous loss position | Securities 398 121
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 1,579 $ 299
Less than 12 months, Gross unrealized losses $ (61) $ (7)
Less than 12 months, Number of securities in a continuous loss position | Securities 194 46
12 months or more, Fair value $ 188 $ 221
12 months or more, Gross unrealized losses $ (19) $ (6)
12 months or more, Number of securities in a continuous loss position | Securities 23 31
Fair value $ 1,767 $ 520
Gross unrealized losses $ (80) $ (13)
Number of securities in a continuous loss position | Securities 217 77
Fixed maturity securities | U.S. corporate | Technology and communications    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 1,111 $ 217
Less than 12 months, Gross unrealized losses $ (42) $ (4)
Less than 12 months, Number of securities in a continuous loss position | Securities 142 32
12 months or more, Fair value $ 159 $ 210
12 months or more, Gross unrealized losses $ (19) $ (8)
12 months or more, Number of securities in a continuous loss position | Securities 21 29
Fair value $ 1,270 $ 427
Gross unrealized losses $ (61) $ (12)
Number of securities in a continuous loss position | Securities 163 61
Fixed maturity securities | U.S. corporate | Industrial    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 416 $ 0
Less than 12 months, Gross unrealized losses $ (15) $ 0
Less than 12 months, Number of securities in a continuous loss position | Securities 61 0
12 months or more, Fair value $ 55 $ 62
12 months or more, Gross unrealized losses $ (5) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 7 9
Fair value $ 471 $ 62
Gross unrealized losses $ (20) $ (1)
Number of securities in a continuous loss position | Securities 68 9
Fixed maturity securities | U.S. corporate | Capital goods    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 717 $ 176
Less than 12 months, Gross unrealized losses $ (32) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 94 25
12 months or more, Fair value $ 64 $ 81
12 months or more, Gross unrealized losses $ (8) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 11 14
Fair value $ 781 $ 257
Gross unrealized losses $ (40) $ (5)
Number of securities in a continuous loss position | Securities 105 39
Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 668 $ 137
Less than 12 months, Gross unrealized losses $ (24) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 107 24
12 months or more, Fair value $ 86 $ 95
12 months or more, Gross unrealized losses $ (7) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 11 13
Fair value $ 754 $ 232
Gross unrealized losses $ (31) $ (4)
Number of securities in a continuous loss position | Securities 118 37
Fixed maturity securities | U.S. corporate | Transportation    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 492 $ 117
Less than 12 months, Gross unrealized losses $ (24) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 67 21
12 months or more, Fair value $ 73 $ 97
12 months or more, Gross unrealized losses $ (7) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 14 13
Fair value $ 565 $ 214
Gross unrealized losses $ (31) $ (3)
Number of securities in a continuous loss position | Securities 81 34
Fixed maturity securities | U.S. corporate | Other    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 68 $ 12
Less than 12 months, Gross unrealized losses $ (1) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 4 2
12 months or more, Fair value $ 14 $ 0
12 months or more, Gross unrealized losses $ 0 $ 0
12 months or more, Number of securities in a continuous loss position | Securities 1 0
Fair value $ 82 $ 12
Gross unrealized losses $ (1) $ (1)
Number of securities in a continuous loss position | Securities 5 2
Fixed maturity securities | Non-U.S. corporate    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 4,146 $ 1,323
Less than 12 months, Gross unrealized losses $ (126) $ (12)
Less than 12 months, Number of securities in a continuous loss position | Securities 574 217
12 months or more, Fair value $ 697 $ 548
12 months or more, Gross unrealized losses $ (44) $ (21)
12 months or more, Number of securities in a continuous loss position | Securities 96 77
Fair value $ 4,843 $ 1,871
Gross unrealized losses $ (170) $ (33)
Number of securities in a continuous loss position | Securities 670 294
Fixed maturity securities | Non-U.S. corporate | Utilities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 359 $ 113
Less than 12 months, Gross unrealized losses $ (14) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 48 23
12 months or more, Fair value $ 81 $ 72
12 months or more, Gross unrealized losses $ (8) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 10 8
Fair value $ 440 $ 185
Gross unrealized losses $ (22) $ (4)
Number of securities in a continuous loss position | Securities 58 31
Fixed maturity securities | Non-U.S. corporate | Energy    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 346 $ 118
Less than 12 months, Gross unrealized losses $ (12) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 48 19
12 months or more, Fair value $ 98 $ 74
12 months or more, Gross unrealized losses $ (6) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 12 12
Fair value $ 444 $ 192
Gross unrealized losses $ (18) $ (5)
Number of securities in a continuous loss position | Securities 60 31
Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 1,007 $ 347
Less than 12 months, Gross unrealized losses $ (28) $ (3)
Less than 12 months, Number of securities in a continuous loss position | Securities 143 56
12 months or more, Fair value $ 150 $ 117
12 months or more, Gross unrealized losses $ (8) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 25 19
Fair value $ 1,157 $ 464
Gross unrealized losses $ (36) $ (6)
Number of securities in a continuous loss position | Securities 168 75
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 323 $ 69
Less than 12 months, Gross unrealized losses $ (12) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 37 11
12 months or more, Fair value $ 57 $ 60
12 months or more, Gross unrealized losses $ (6) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 5 6
Fair value $ 380 $ 129
Gross unrealized losses $ (18) $ (4)
Number of securities in a continuous loss position | Securities 42 17
Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 466 $ 107
Less than 12 months, Gross unrealized losses $ (13) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 65 18
12 months or more, Fair value $ 23 $ 30
12 months or more, Gross unrealized losses $ (2) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 4 6
Fair value $ 489 $ 137
Gross unrealized losses $ (15) $ (2)
Number of securities in a continuous loss position | Securities 69 24
Fixed maturity securities | Non-U.S. corporate | Industrial    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 280 $ 52
Less than 12 months, Gross unrealized losses $ (9) $ 0
Less than 12 months, Number of securities in a continuous loss position | Securities 41 9
12 months or more, Fair value $ 34 $ 38
12 months or more, Gross unrealized losses $ (3) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 4 5
Fair value $ 314 $ 90
Gross unrealized losses $ (12) $ (2)
Number of securities in a continuous loss position | Securities 45 14
Fixed maturity securities | Non-U.S. corporate | Capital goods    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 227 $ 54
Less than 12 months, Gross unrealized losses $ (6) $ 0
Less than 12 months, Number of securities in a continuous loss position | Securities 27 11
12 months or more, Fair value $ 29 $ 46
12 months or more, Gross unrealized losses $ (1) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 4 3
Fair value $ 256 $ 100
Gross unrealized losses $ (7) $ (2)
Number of securities in a continuous loss position | Securities 31 14
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 283 $ 131
Less than 12 months, Gross unrealized losses $ (7) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 36 21
12 months or more, Fair value $ 28 $ 0
12 months or more, Gross unrealized losses   $ 0
12 months or more, Number of securities in a continuous loss position | Securities 7 0
Fair value $ 311 $ 131
Gross unrealized losses $ (7) $ (1)
Number of securities in a continuous loss position | Securities 43 21
Fixed maturity securities | Non-U.S. corporate | Transportation    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 206 $ 47
Less than 12 months, Gross unrealized losses $ (6) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 24 7
12 months or more, Fair value $ 64 $ 64
12 months or more, Gross unrealized losses $ (5) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 8 8
Fair value $ 270 $ 111
Gross unrealized losses $ (11) $ (3)
Number of securities in a continuous loss position | Securities 32 15
Fixed maturity securities | Non-U.S. corporate | Other    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 649 $ 285
Less than 12 months, Gross unrealized losses $ (19) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 105 42
12 months or more, Fair value $ 133 $ 47
12 months or more, Gross unrealized losses $ (5) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 17 10
Fair value $ 782 $ 332
Gross unrealized losses $ (24) $ (4)
Number of securities in a continuous loss position | Securities 122 52
Fixed maturity securities | Corporate Debt Securities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 13,619 $ 3,194
Less than 12 months, Gross unrealized losses $ (480) $ (38)
Less than 12 months, Number of securities in a continuous loss position | Securities 1,896 513
12 months or more, Fair value $ 1,912 $ 1,895
12 months or more, Gross unrealized losses $ (157) $ (63)
12 months or more, Number of securities in a continuous loss position | Securities 263 267
Fair value $ 15,531 $ 5,089
Gross unrealized losses $ (637) $ (101)
Number of securities in a continuous loss position | Securities 2,159 780
v3.10.0.1
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Amortized cost or cost    
Due one year or less $ 1,692  
Due after one year through five years 11,006  
Due after five years through ten years 12,517  
Due after ten years 22,578  
Subtotal 47,793  
Amortized cost or cost, fixed maturity securities 57,572 $ 57,492
Fair value    
Due one year or less 1,701  
Due after one year through five years 11,149  
Due after five years through ten years 12,601  
Due after ten years 24,708  
Subtotal 50,159  
Fair value, fixed maturity securities 60,032 $ 62,525
Residential mortgage-backed    
Amortized cost or cost    
Fixed maturity securities 3,426  
Fair value    
Fixed maturity securities 3,567  
Commercial mortgage-backed    
Amortized cost or cost    
Fixed maturity securities 3,387  
Fair value    
Fixed maturity securities 3,349  
Other asset-backed    
Amortized cost or cost    
Fixed maturity securities 2,966  
Fair value    
Fixed maturity securities $ 2,957  
v3.10.0.1
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,492 $ 6,353
Unamortized balance of loan origination fees and costs $ (3) $ (3)
% of total 100.00% 100.00%
Allowance for losses $ (9) $ (9)
Total 6,480 6,341
Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 6,492 6,353
Unamortized balance of loan origination fees and costs $ (3) $ (3)
% of total 100.00% 100.00%
Allowance for losses $ (9) $ (9)
Total 6,480 6,341
South Atlantic | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,669 $ 1,625
% of total 26.00% 26.00%
Pacific | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,652 $ 1,622
% of total 25.00% 26.00%
Middle Atlantic | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 926 $ 927
% of total 14.00% 14.00%
Mountain | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 617 $ 556
% of total 10.00% 9.00%
West North Central | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 453 $ 446
% of total 7.00% 7.00%
East North Central | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 399 $ 394
% of total 6.00% 6.00%
West South Central | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 360 $ 336
% of total 6.00% 5.00%
East South Central | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 214 $ 208
% of total 3.00% 3.00%
New England | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 202 $ 239
% of total 3.00% 4.00%
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,375 $ 2,239
% of total 37.00% 35.00%
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,644 $ 1,628
% of total 25.00% 26.00%
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,482 $ 1,510
% of total 23.00% 24.00%
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 474 $ 478
% of total 7.00% 8.00%
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 237 $ 223
% of total 4.00% 3.00%
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 280 $ 275
% of total 4.00% 4.00%
v3.10.0.1
Aging of Past Due Commercial Mortgage Loans by Property Type (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,492 $ 6,353
% of total 100.00% 100.00%
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,375 $ 2,239
% of total 37.00% 35.00%
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,644 $ 1,628
% of total 25.00% 26.00%
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,482 $ 1,510
% of total 23.00% 24.00%
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 474 $ 478
% of total 7.00% 8.00%
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 237 $ 223
% of total 4.00% 3.00%
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 280 $ 275
% of total 4.00% 4.00%
31-60 days past due    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 5
% of total 0.00% 0.00%
31-60 days past due | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 5
31-60 days past due | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
31-60 days past due | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
31-60 days past due | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
31-60 days past due | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
31-60 days past due | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
61-90 days past due    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 0
% of total 0.00% 0.00%
61-90 days past due | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 0
61-90 days past due | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
61-90 days past due | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
61-90 days past due | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
61-90 days past due | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
61-90 days past due | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Greater than 90 days past due    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6 $ 6
% of total 0.00% 0.00%
Greater than 90 days past due | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 0
Greater than 90 days past due | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Greater than 90 days past due | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 6 6
Greater than 90 days past due | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Greater than 90 days past due | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Greater than 90 days past due | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Total past due    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6 $ 11
% of total 0.00% 0.00%
Total past due | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 5
Total past due | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Total past due | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 6 6
Total past due | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Total past due | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Total past due | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Current    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,486 $ 6,342
% of total 100.00% 100.00%
Current | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,375 $ 2,234
Current | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 1,644 1,628
Current | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 1,476 1,504
Current | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 474 478
Current | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 237 223
Current | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 280 $ 275
v3.10.0.1
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]          
Beginning balance     $ 9    
Ending balance $ 9   9    
Ending balance 6,492   6,492   $ 6,353
Allowance for Credit Losses          
Financing Receivable, Allowance for Credit Losses [Line Items]          
Beginning balance 9 $ 11 9 $ 12  
Charge-offs 0 0 0 0  
Recoveries 0 0 0 0  
Provision 0 (1) 0 (2)  
Ending balance 9 10 9 10  
Ending allowance for individually impaired loans 0 0 0 0  
Ending allowance for loans not individually impaired that were evaluated collectively for impairment 9 10 9 10  
Commercial Mortgage Loans Recorded Investment          
Financing Receivable, Allowance for Credit Losses [Line Items]          
Ending balance 6,492 6,250 6,492 6,250  
Ending balance of individually impaired loans 6 0 6 0  
Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,486 $ 6,250 $ 6,486 $ 6,250  
v3.10.0.1
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,492 $ 6,353
% of total 100.00% 100.00%
Weighted-average debt service coverage ratio 1.91 2.09
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,375 $ 2,239
% of total 37.00% 35.00%
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,644 $ 1,628
% of total 25.00% 26.00%
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,482 $ 1,510
% of total 23.00% 24.00%
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 474 $ 478
% of total 7.00% 8.00%
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 237 $ 223
% of total 4.00% 3.00%
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 280 $ 275
% of total 4.00% 4.00%
0% - 50%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,313 $ 2,618
% of total 36.00% 41.00%
Weighted-average debt service coverage ratio 2.30 2.65
0% - 50% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 848 $ 919
0% - 50% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 676 731
0% - 50% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 438 575
0% - 50% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 201 226
0% - 50% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 101 99
0% - 50% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 49 68
51% - 60%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,525 $ 1,437
% of total 23.00% 23.00%
Weighted-average debt service coverage ratio 1.85 1.85
51% - 60% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 505 $ 500
51% - 60% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 355 363
51% - 60% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 447 386
51% - 60% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 122 101
51% - 60% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 54 59
51% - 60% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 42 28
61% - 75%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,641 $ 2,276
% of total 41.00% 36.00%
Weighted-average debt service coverage ratio 1.61 1.62
61% - 75% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,022 $ 820
61% - 75% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 613 532
61% - 75% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 589 534
61% - 75% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 146 146
61% - 75% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 82 65
61% - 75% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 189 179
76% - 100%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 13 $ 20
% of total 0.00% 0.00%
Weighted-average debt service coverage ratio 1.07 0.62
76% - 100% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 0 $ 0
76% - 100% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 2
76% - 100% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 8 13
76% - 100% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 5 5
76% - 100% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
76% - 100% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 0 0
Greater than 100%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] $ 0 $ 2
% of total [1] 0.00% 0.00%
Weighted-average debt service coverage ratio [1] 0.00 1.04
Greater than 100% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] $ 0 $ 0
Greater than 100% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] 0 0
Greater than 100% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] 0 2
Greater than 100% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] 0 0
Greater than 100% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] 0 0
Greater than 100% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] $ 0 $ 0
[1] Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.
v3.10.0.1
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2017
Jun. 30, 2018
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,353 $ 6,492
Greater than 100%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment [1] 2 $ 0
Greater than 100% | Loans in Good Standing    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2  
Weighted-average loan-to-value 102.00%  
[1] Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable.
v3.10.0.1
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,492 $ 6,353
% of total 100.00% 100.00%
Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,492 $ 6,353
% of total 100.00% 100.00%
Weighted-average loan-to-value 54.00% 52.00%
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,375 $ 2,239
% of total 37.00% 35.00%
Retail | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,375 $ 2,239
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,644 $ 1,628
% of total 25.00% 26.00%
Industrial | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,644 $ 1,628
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,482 $ 1,510
% of total 23.00% 24.00%
Office | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,482 $ 1,510
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 474 $ 478
% of total 7.00% 8.00%
Apartments | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 474 $ 478
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 237 $ 223
% of total 4.00% 3.00%
Mixed Use | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 237 $ 223
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 280 $ 275
% of total 4.00% 4.00%
Other | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 280 $ 275
Less than 1.00 | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 112 $ 120
% of total 2.00% 2.00%
Weighted-average loan-to-value 54.00% 55.00%
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 41 $ 43
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 19 23
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 34 51
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 12 0
Less than 1.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 5 2
Less than 1.00 | Other | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 1 1
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 521 $ 527
% of total 8.00% 8.00%
Weighted-average loan-to-value 60.00% 60.00%
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 216 $ 235
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 66 61
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 70 61
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 18 17
1.00 - 1.25 | Mixed Use | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 4 4
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 147 149
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 932 $ 749
% of total 14.00% 12.00%
Weighted-average loan-to-value 59.00% 58.00%
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 406 $ 301
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 208 174
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 178 157
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 79 77
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 38 26
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 23 14
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,925 $ 2,637
% of total 45.00% 42.00%
Weighted-average loan-to-value 59.00% 58.00%
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,137 $ 1,020
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 751 700
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 678 569
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 186 191
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 86 86
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 87 71
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,002 $ 2,320
% of total 31.00% 36.00%
Weighted-average loan-to-value 44.00% 42.00%
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 575 $ 640
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 600 670
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 522 672
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 179 193
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment 104 105
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 22 $ 40
v3.10.0.1
Schedule of Positions in Derivative Instruments (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Derivative [Line Items]    
Derivative assets, fair value $ 242 $ 290
Derivative liabilities, fair value 771 730
Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value 668 683
Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 103 47
Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 230 276
Interest rate swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 71 25
Interest rate swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 49 74
Foreign currency swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 9  
Foreign currency swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 3 12
Interest rate caps and floors | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 1  
Equity index options | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 70 80
Equity return swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value   2
Equity return swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 1  
Other foreign currency contracts | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 23 20
Other foreign currency contracts | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 106 110
GMWB embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [1] 235 250
GMWB embedded derivatives | Reinsurance recoverable    
Derivative [Line Items]    
Derivative assets, fair value [2] 12 14
Fixed index annuity embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value 420 419
Indexed universal life embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value 13 14
Designated As Hedging Instrument    
Derivative [Line Items]    
Derivative assets, fair value 51 75
Derivative liabilities, fair value 72 25
Designated As Hedging Instrument | Cash Flow Hedges    
Derivative [Line Items]    
Derivative assets, fair value 51 75
Derivative liabilities, fair value 72 25
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 71 25
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 49 74
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 1  
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 2 1
Derivatives not designated as hedges    
Derivative [Line Items]    
Derivative assets, fair value 191 215
Derivative liabilities, fair value 699 705
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 8 0
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 1 11
Derivatives not designated as hedges | Interest rate caps and floors | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 0 0
Derivatives not designated as hedges | Interest rate caps and floors | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 1 0
Derivatives not designated as hedges | Equity index options | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 0 0
Derivatives not designated as hedges | Equity index options | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 70 80
Derivatives not designated as hedges | Financial futures | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 0 0
Derivatives not designated as hedges | Financial futures | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 0 0
Derivatives not designated as hedges | Equity return swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 0 2
Derivatives not designated as hedges | Equity return swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 1 0
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 23 20
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 106 110
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [3] 235 250
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable    
Derivative [Line Items]    
Derivative assets, fair value [4] 12 14
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [5] 420 419
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets    
Derivative [Line Items]    
Derivative assets, fair value 0 0
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [6] 13 14
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Reinsurance recoverable    
Derivative [Line Items]    
Derivative assets, fair value $ 0 $ 0
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
[2] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.
[3] Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
[4] Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities.
[5] Represents the embedded derivatives associated with our fixed index annuity liabilities.
[6] Represents the embedded derivatives associated with our indexed universal life liabilities.
v3.10.0.1
Activity Associated with Derivative Instruments (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2018
USD ($)
Policies
Derivative [Line Items]  
Notional amount, beginning balance $ 23,307
Additions 6,713
Maturities/ terminations (5,953)
Notional amount, ending balance 24,067
Designated As Hedging Instrument  
Derivative [Line Items]  
Notional amount, beginning balance 11,177
Additions 1,475
Maturities/ terminations (1,672)
Notional amount, ending balance 10,980
Designated As Hedging Instrument | Cash Flow Hedges  
Derivative [Line Items]  
Notional amount, beginning balance 11,177
Additions 1,475
Maturities/ terminations (1,672)
Notional amount, ending balance 10,980
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps  
Derivative [Line Items]  
Notional amount, beginning balance 11,155
Additions 1,436
Maturities/ terminations (1,672)
Notional amount, ending balance 10,919
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps  
Derivative [Line Items]  
Notional amount, beginning balance 22
Additions 39
Maturities/ terminations 0
Notional amount, ending balance 61
Derivatives not designated as hedges  
Derivative [Line Items]  
Notional amount, beginning balance 12,130
Additions 5,238
Maturities/ terminations (4,281)
Notional amount, ending balance 13,087
Derivatives not designated as hedges | Interest rate swaps  
Derivative [Line Items]  
Notional amount, beginning balance 4,679
Additions 0
Maturities/ terminations (5)
Notional amount, ending balance 4,674
Derivatives not designated as hedges | Foreign currency swaps  
Derivative [Line Items]  
Notional amount, beginning balance 349
Additions 128
Maturities/ terminations (23)
Notional amount, ending balance 454
Derivatives not designated as hedges | Interest rate caps and floors  
Derivative [Line Items]  
Notional amount, beginning balance 0
Additions 805
Maturities/ terminations 0
Notional amount, ending balance 805
Derivatives not designated as hedges | Credit default swaps  
Derivative [Line Items]  
Notional amount, beginning balance 39
Additions 0
Maturities/ terminations (19)
Notional amount, ending balance 20
Derivatives not designated as hedges | Equity index options  
Derivative [Line Items]  
Notional amount, beginning balance 2,420
Additions 1,246
Maturities/ terminations (927)
Notional amount, ending balance 2,739
Derivatives not designated as hedges | Financial futures  
Derivative [Line Items]  
Notional amount, beginning balance 1,283
Additions 2,660
Maturities/ terminations (2,680)
Notional amount, ending balance 1,263
Derivatives not designated as hedges | Equity return swaps  
Derivative [Line Items]  
Notional amount, beginning balance 96
Additions 1
Maturities/ terminations (78)
Notional amount, ending balance 19
Derivatives not designated as hedges | Other foreign currency contracts  
Derivative [Line Items]  
Notional amount, beginning balance 3,264
Additions 398
Maturities/ terminations (549)
Notional amount, ending balance $ 3,113
Derivatives not designated as hedges | GMWB embedded derivatives  
Derivative [Line Items]  
Notional amount, beginning balance | Policies 30,450
Additions | Policies 0
Maturities/ terminations | Policies (1,343)
Notional amount, ending balance | Policies 29,107
Derivatives not designated as hedges | Fixed index annuity embedded derivatives  
Derivative [Line Items]  
Notional amount, beginning balance | Policies 17,067
Additions | Policies 0
Maturities/ terminations | Policies (255)
Notional amount, ending balance | Policies 16,812
Derivatives not designated as hedges | Indexed universal life embedded derivatives  
Derivative [Line Items]  
Notional amount, beginning balance | Policies 985
Additions | Policies 0
Maturities/ terminations | Policies (28)
Notional amount, ending balance | Policies 957
v3.10.0.1
Schedule of Pre-Tax Income Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI $ (48) $ 75 $ (205) $ 30
Gain (loss) reclassified into net income from OCI 39 32 79 63
Gain (loss) recognized in net income [1]   0   0
Interest Rate Swaps Hedging Assets | Net Investment (Gains) Losses        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI   0 0 0
Gain (loss) reclassified into net income from OCI   1 5 2
Gain (loss) recognized in net income [1]   0   0
Interest Rate Swaps Hedging Assets | Net Investment Income        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI (54) 82 (227) 33
Gain (loss) reclassified into net income from OCI 39 31 74 61
Foreign currency swaps | Net Investment (Gains) Losses        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in net income [1]   0   0
Foreign currency swaps | Net Investment Income        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI 1 (1)   (1)
Gain (loss) reclassified into net income from OCI 0 0   0
Interest Rate Swaps Hedging Liabilities | Net Investment (Gains) Losses        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in net income [1]   0   0
Interest Rate Swaps Hedging Liabilities | Interest Expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI 5 (6) 22 (2)
Gain (loss) reclassified into net income from OCI $ 0 $ 0 $ 0 $ 0
[1] Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.
v3.10.0.1
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Derivative Instruments [Abstract]        
Derivatives qualifying as effective accounting hedges, beginning of period $ 1,927 $ 2,036 $ 2,065 $ 2,085
Cumulative effect of changes in accounting:        
Stranded tax effects     12  
Changes to the hedge accounting model, net of deferred taxes     2  
Total cumulative effect of changes in accounting     14  
Current period increases (decreases) in fair value, net of deferred taxes (39) 48 (165) 19
Reclassification to net (income), net of deferred taxes (25) (20) (51) (40)
Derivatives qualifying as effective accounting hedges, end of period $ 1,863 $ 2,064 $ 1,863 $ 2,064
v3.10.0.1
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Changes to the hedge accounting model, deferred taxes     $ (1)  
Current period increases (decreases) in fair value, deferred taxes $ 9 $ (27) 43 $ (11)
Reclassification to net (income), deferred taxes $ 14 $ 12 $ 28 $ 23
v3.10.0.1
Derivative Instruments - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Derivative [Line Items]            
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax $ 1,863 $ 1,927 $ 2,065 $ 2,064 $ 2,036 $ 2,085
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur 2057          
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income in the next 12 months, net of tax $ 104          
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring 5          
Derivative assets | Subject to enforceable master netting arrangement            
Derivative [Line Items]            
Amount to claim from counterparties if the downgrade provisions had been triggered [1] 71   85      
Derivative liabilities | Subject to enforceable master netting arrangement            
Derivative [Line Items]            
Amounts required for disbursement to counterparties if the downgrade provisions had been triggered [2] $ 1   $ 0      
[1] Included $4 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2018 and December 31, 2017, respectively.
[2] Included $1 million of accrual on derivatives classified as other liabilities as of June 30, 2018. Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2018 and December 31, 2017.
v3.10.0.1
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss $ (15) $ 37 $ (33) $ 41
Interest rate swaps | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss (2) (1) (3) 1
Credit default swaps related to securitization entities | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 0 2 0 4
Equity index options | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 8 13 (7) 26
Financial futures | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss (13) 9 (37) (8)
Equity return swaps | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 1 (6) (4) (14)
Other foreign currency contracts | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 1 31 9 26
Foreign currency swaps | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss (10) 2 (18) 5
GMWB embedded derivatives | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 13 1 27 34
Fixed index annuity embedded derivatives | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss (15) (16) (7) (36)
Indexed universal life embedded derivatives | Net Investment (Gains) Losses        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss $ 2 $ 2 $ 7 $ 3
v3.10.0.1
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Derivative [Line Items]    
Gross amounts recognized, derivatives liabilities $ 771 $ 730
Gross amounts recognized, derivatives assets 242 290
Subject to enforceable master netting arrangement    
Derivative [Line Items]    
Gross amounts recognized, derivatives assets 130 231
Gross amounts offset in the balance sheet, derivatives assets 0 0
Net amounts presented in the balance sheet, derivatives assets 130 231
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets [1] 0 0
Collateral received (125) (170)
Collateral pledged 427 288
Over collateralization, derivatives assets (362) (264)
Net amount, derivatives assets 70 85
Subject to enforceable master netting arrangement | Derivative assets    
Derivative [Line Items]    
Gross amounts recognized, net derivatives [2] 234 278
Gross amounts offset in the balance sheet, net derivatives [2] 0 0
Net amounts presented in the balance sheet, net derivatives [2] 234 278
Gross amounts not offset in the balance sheet, financial instruments, net derivatives [1],[2] (39) (23)
Collateral received [2] (125) (170)
Collateral pledged [2] 0 0
Over collateralization, derivatives assets [2] 1 0
Net amount [2] 71 85
Subject to enforceable master netting arrangement | Derivative liabilities    
Derivative [Line Items]    
Gross amounts recognized, derivatives liabilities [3] 104 47
Gross amounts offset in the balance sheet, derivatives liabilities [3] 0 0
Net amounts presented in the balance sheet, derivatives liabilities [3] 104 47
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities [1],[3] (39) (23)
Collateral pledged [3] 0 0
Collateral pledged [3] (427) (288)
Over collateralization, derivatives liabilities [3] 363 264
Net amount, derivatives liabilities [3] $ 1 $ 0
[1] Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty.
[2] Included $4 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2018 and December 31, 2017, respectively.
[3] Included $1 million of accrual on derivatives classified as other liabilities as of June 30, 2018. Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2018 and December 31, 2017.
v3.10.0.1
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Derivative [Line Items]    
Net amounts presented in the balance sheet, accruals on derivative assets $ 130 $ 231
Other assets | Derivative assets    
Derivative [Line Items]    
Net amounts presented in the balance sheet, accruals on derivative assets 4 $ 2
Other liabilities | Derivative liabilities    
Derivative [Line Items]    
Net amounts presented in the balance sheet, derivatives liabilities $ 1  
v3.10.0.1
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Derivative [Line Items]    
Notional value $ 24,067 $ 23,307
Credit default swaps | Single Name Reference Entities    
Derivative [Line Items]    
Notional value 20 39
Assets 0 0
Liabilities 0 0
Credit default swaps | Single Name Reference Entities | Investment grade | Matures in less than one year    
Derivative [Line Items]    
Notional value 20 39
Assets 0 0
Liabilities $ 0 $ 0
v3.10.0.1
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans $ 6,480 $ 6,341
Restricted commercial mortgage loans 90 107
Other invested assets 1,650 1,813
Long-term borrowings 4,047 4,224
Non-recourse funding obligations 310 310
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 0 0
Restricted commercial mortgage loans 0 0
Other invested assets 0 0
Long-term borrowings 0 0
Non-recourse funding obligations 0 0
Borrowings related to securitization entities 0 0
Investment contracts 0 0
Commitments to fund limited partnerships 0 0
Commitments to fund bank loan investments 0 0
Ordinary course of business lending commitments 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 0 0
Restricted commercial mortgage loans 0 0
Other invested assets 0 0
Long-term borrowings 3,577 3,566
Non-recourse funding obligations 0 0
Borrowings related to securitization entities 28 41
Investment contracts 0 5
Commitments to fund limited partnerships 0 0
Commitments to fund bank loan investments 0 0
Ordinary course of business lending commitments 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 6,514 6,573
Restricted commercial mortgage loans 96 116
Other invested assets 151 299
Long-term borrowings 150 159
Non-recourse funding obligations 209 201
Borrowings related to securitization entities 0 0
Investment contracts 14,007 15,118
Commitments to fund limited partnerships 0 0
Commitments to fund bank loan investments 0 0
Ordinary course of business lending commitments 0 0
Carrying value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 6,480 6,341
Restricted commercial mortgage loans 90 107
Other invested assets 151 277
Long-term borrowings 4,047 4,224
Non-recourse funding obligations 310 310
Borrowings related to securitization entities 28 40
Investment contracts 13,757 14,700
Commitments to fund limited partnerships 0 0
Commitments to fund bank loan investments 0 0
Ordinary course of business lending commitments 0 0
Fair value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 6,514 6,573
Restricted commercial mortgage loans 96 116
Other invested assets 151 299
Long-term borrowings 3,727 3,725
Non-recourse funding obligations 209 201
Borrowings related to securitization entities 28 41
Investment contracts 14,007 15,123
Commitments to fund limited partnerships 0 0
Commitments to fund bank loan investments 0 0
Ordinary course of business lending commitments 0 0
Notional amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans [1] 0 0
Restricted commercial mortgage loans [1] 0 0
Other invested assets [1] 0 0
Long-term borrowings [1] 0 0
Non-recourse funding obligations [1] 0 0
Borrowings related to securitization entities [1] 0 0
Investment contracts [1] 0 0
Commitments to fund limited partnerships 402 317
Commitments to fund bank loan investments 30 18
Ordinary course of business lending commitments $ 119 $ 168
[1] These financial instruments do not have notional amounts.
v3.10.0.1
Fair Value of Financial Instruments - Additional Information (Detail)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 60,032 $ 62,525
GMWB non-performance risk impact $ 50 $ 63
Period end valuation 0 0
Fixed maturity securities | Non-U.S. government    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 2,380 $ 2,233
Fixed maturity securities | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 27,569 28,636
Fixed maturity securities | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 12,002 12,611
Level 2    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 56,419 58,575
Level 2 | Fixed maturity securities | Non-U.S. government    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 2,380 2,233
Level 2 | Fixed maturity securities | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 25,638 26,484
Level 2 | Fixed maturity securities | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 10,616 11,195
Level 2 | Fixed maturity securities | Third-Party Pricing Services    
Fair Value of Financial Instruments [Line Items]    
Percentage of available for sale debt securities 91.00%  
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. government    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 2,364  
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 24,571  
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 10,049  
Level 2 | Fixed maturity securities | Internal models | Non-U.S. government    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 16  
Level 2 | Fixed maturity securities | Internal models | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 1,067  
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 567  
Level 3    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 3,613 3,950
Level 3 | Fixed maturity securities | Non-U.S. government    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 0 0
Level 3 | Fixed maturity securities | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 1,931 2,152
Level 3 | Fixed maturity securities | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 1,386 $ 1,416
Level 3 | Fixed maturity securities | Internal models    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 3,201  
Level 3 | Fixed maturity securities | Broker Quotes    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 412  
v3.10.0.1
Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 60,032 $ 62,525
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 5,353 5,548
Fixed maturity securities | State and Political Subdivisions    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,855 2,926
Fixed maturity securities | Non-U.S. government    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,380 2,233
Fixed maturity securities | U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 27,569 28,636
Fixed maturity securities | Non-U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 12,002 12,611
Fixed maturity securities | Residential mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 3,567 4,057
Fixed maturity securities | Commercial mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 3,349 3,446
Fixed maturity securities | Other asset-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,957 3,068
Level 2    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 56,419 58,575
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 5,353 5,547
Level 2 | Fixed maturity securities | State and Political Subdivisions    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,803 2,889
Level 2 | Fixed maturity securities | Non-U.S. government    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,380 2,233
Level 2 | Fixed maturity securities | U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 25,638 26,484
Level 2 | Fixed maturity securities | Non-U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 10,616 11,195
Level 2 | Fixed maturity securities | Residential mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 3,533 3,980
Level 2 | Fixed maturity securities | Commercial mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 3,305 3,416
Level 2 | Fixed maturity securities | Other asset-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,791 $ 2,831
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 5,353  
Primary methodologies Price quotes from trading desk, broker feeds  
Significant inputs Bid side prices, trade prices, Option Adjusted Spread ("OAS") to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | State and Political Subdivisions    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 2,803  
Primary methodologies Multi-dimensional attribute-based modeling systems, third-party pricing vendors  
Significant inputs Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. government    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 2,364  
Primary methodologies Matrix pricing, spread priced to benchmark curves, price quotes from market makers  
Significant inputs Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 24,571  
Primary methodologies Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-basedmodels  
Significant inputs Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine ("TRACE") reports  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 10,049  
Primary methodologies Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers  
Significant inputs Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Residential mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 3,533  
Primary methodologies OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced  
Significant inputs Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Commercial mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 3,305  
Primary methodologies Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model  
Significant inputs Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports  
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Other asset-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 2,791  
Primary methodologies Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models  
Significant inputs Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports  
v3.10.0.1
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities $ 60,032 $ 62,525
Available-for-sale equity securities 758 820
Derivative assets, fair value 242 290
Limited partnerships 248  
Total other invested assets 1,650 1,813
Separate account assets 6,750 7,230
Total assets 68,949 72,035
Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Available-for-sale equity securities [1] 0  
Limited partnerships [1] 248  
Separate account assets [1] 0  
Total assets [1] 248  
Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 230 276
Securities lending collateral 211 268
Short-term investments 708 902
Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
Securities lending collateral [1] 0  
Short-term investments [1] 0  
Interest rate swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 49 74
Interest rate swaps | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
Interest rate caps and floors | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 1  
Interest rate caps and floors | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
Foreign currency swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 3 12
Foreign currency swaps | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
Equity index options | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 70 80
Equity index options | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
Other foreign currency contracts | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 106 110
Other foreign currency contracts | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
GMWB embedded derivatives | Reinsurance recoverable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [2] 12 14
GMWB embedded derivatives | Reinsurance recoverable | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1],[2] 0  
Equity return swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 1  
Equity return swaps | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [1] 0  
Fair value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total other invested assets 151 299
Fair value | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total other invested assets 1,397 1,446
Fair value | Other invested assets | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total other invested assets [1] 248  
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 5,353 5,548
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | State and Political Subdivisions    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,855 2,926
Fixed maturity securities | State and Political Subdivisions | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. government    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,380 2,233
Fixed maturity securities | Non-U.S. government | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 27,569 28,636
Fixed maturity securities | U.S. corporate | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 4,879 4,998
Fixed maturity securities | U.S. corporate | Utilities | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,270 2,458
Fixed maturity securities | U.S. corporate | Energy | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 6,275 6,528
Fixed maturity securities | U.S. corporate | Finance and insurance | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 4,541 4,831
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,781 2,845
Fixed maturity securities | U.S. corporate | Technology and communications | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,283 1,346
Fixed maturity securities | U.S. corporate | Industrial | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,361 2,355
Fixed maturity securities | U.S. corporate | Capital goods | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,573 1,605
Fixed maturity securities | U.S. corporate | Consumer-cyclical | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,252 1,291
Fixed maturity securities | U.S. corporate | Transportation | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 354 379
Fixed maturity securities | U.S. corporate | Other | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 12,002 12,611
Fixed maturity securities | Non-U.S. corporate | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 962 1,017
Fixed maturity securities | Non-U.S. corporate | Utilities | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,399 1,490
Fixed maturity securities | Non-U.S. corporate | Energy | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,537 2,735
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 702 712
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,007 982
Fixed maturity securities | Non-U.S. corporate | Technology and communications | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 977 1,044
Fixed maturity securities | Non-U.S. corporate | Industrial | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 611 645
Fixed maturity securities | Non-U.S. corporate | Capital goods | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 522 540
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 727 721
Fixed maturity securities | Non-U.S. corporate | Transportation | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Non-U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,558 2,725
Fixed maturity securities | Non-U.S. corporate | Other | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Residential mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 3,567 4,057
Fixed maturity securities | Residential mortgage-backed | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Commercial mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 3,349 3,446
Fixed maturity securities | Commercial mortgage-backed | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Fixed maturity securities | Other asset-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,957 3,068
Fixed maturity securities | Other asset-backed | Net Asset Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities [1] 0  
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Available-for-sale equity securities 643 696
Limited partnerships 0  
Total other invested assets 0 0
Separate account assets 6,750 7,230
Total assets 7,394 8,033
Level 1 | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Securities lending collateral 0 0
Short-term investments 1 107
Level 1 | Interest rate swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 1 | Interest rate caps and floors | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0  
Level 1 | Foreign currency swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 1 | Equity index options | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 1 | Other foreign currency contracts | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 1 | GMWB embedded derivatives | Reinsurance recoverable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [2] 0 0
Level 1 | Equity return swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0  
Level 1 | Fair value | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total other invested assets 1 107
Level 1 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | State and Political Subdivisions    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. government    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Non-U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Residential mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Commercial mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 1 | Fixed maturity securities | Other asset-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 56,419 58,575
Available-for-sale equity securities 69 80
Limited partnerships 0  
Total other invested assets 0 0
Separate account assets 0 0
Total assets 57,566 59,914
Level 2 | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 160 196
Securities lending collateral 211 268
Short-term investments 707 795
Level 2 | Interest rate swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 49 74
Level 2 | Interest rate caps and floors | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 1  
Level 2 | Foreign currency swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 3 12
Level 2 | Equity index options | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 2 | Other foreign currency contracts | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 106 110
Level 2 | GMWB embedded derivatives | Reinsurance recoverable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [2] 0 0
Level 2 | Equity return swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 1  
Level 2 | Fair value | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total other invested assets 1,078 1,259
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 5,353 5,547
Level 2 | Fixed maturity securities | State and Political Subdivisions    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,803 2,889
Level 2 | Fixed maturity securities | Non-U.S. government    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,380 2,233
Level 2 | Fixed maturity securities | U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 25,638 26,484
Level 2 | Fixed maturity securities | U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 4,257 4,424
Level 2 | Fixed maturity securities | U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,132 2,311
Level 2 | Fixed maturity securities | U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 5,817 5,902
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 4,462 4,750
Level 2 | Fixed maturity securities | U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,769 2,772
Level 2 | Fixed maturity securities | U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,243 1,307
Level 2 | Fixed maturity securities | U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,242 2,234
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,319 1,343
Level 2 | Fixed maturity securities | U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,196 1,231
Level 2 | Fixed maturity securities | U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 201 210
Level 2 | Fixed maturity securities | Non-U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 10,616 11,195
Level 2 | Fixed maturity securities | Non-U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 629 674
Level 2 | Fixed maturity securities | Non-U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,224 1,314
Level 2 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,387 2,574
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 594 588
Level 2 | Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 991 953
Level 2 | Fixed maturity securities | Non-U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 872 928
Level 2 | Fixed maturity securities | Non-U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 445 454
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 474 486
Level 2 | Fixed maturity securities | Non-U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 524 551
Level 2 | Fixed maturity securities | Non-U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,476 2,673
Level 2 | Fixed maturity securities | Residential mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 3,533 3,980
Level 2 | Fixed maturity securities | Commercial mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 3,305 3,416
Level 2 | Fixed maturity securities | Other asset-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 2,791 2,831
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 3,613 3,950
Available-for-sale equity securities 46 44
Limited partnerships 0  
Total other invested assets 151 299
Separate account assets 0 0
Total assets 3,741 4,088
Level 3 | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 70 80
Securities lending collateral 0 0
Short-term investments 0 0
Level 3 | Interest rate swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 3 | Interest rate caps and floors | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0  
Level 3 | Foreign currency swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 3 | Equity index options | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 70 80
Level 3 | Other foreign currency contracts | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0 0
Level 3 | GMWB embedded derivatives | Reinsurance recoverable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [2] 12 14
Level 3 | Equity return swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 0  
Level 3 | Fair value | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total other invested assets 70 80
Level 3 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 1
Level 3 | Fixed maturity securities | State and Political Subdivisions    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 52 37
Level 3 | Fixed maturity securities | Non-U.S. government    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 0 0
Level 3 | Fixed maturity securities | U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,931 2,152
Level 3 | Fixed maturity securities | U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 622 574
Level 3 | Fixed maturity securities | U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 138 147
Level 3 | Fixed maturity securities | U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 458 626
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 79 81
Level 3 | Fixed maturity securities | U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 12 73
Level 3 | Fixed maturity securities | U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 40 39
Level 3 | Fixed maturity securities | U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 119 121
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 254 262
Level 3 | Fixed maturity securities | U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 56 60
Level 3 | Fixed maturity securities | U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 153 169
Level 3 | Fixed maturity securities | Non-U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 1,386 1,416
Level 3 | Fixed maturity securities | Non-U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 333 343
Level 3 | Fixed maturity securities | Non-U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 175 176
Level 3 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 150 161
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 108 124
Level 3 | Fixed maturity securities | Non-U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 16 29
Level 3 | Fixed maturity securities | Non-U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 105 116
Level 3 | Fixed maturity securities | Non-U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 166 191
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 48 54
Level 3 | Fixed maturity securities | Non-U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 203 170
Level 3 | Fixed maturity securities | Non-U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 82 52
Level 3 | Fixed maturity securities | Residential mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 34 77
Level 3 | Fixed maturity securities | Commercial mortgage-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 44 30
Level 3 | Fixed maturity securities | Other asset-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities $ 166 $ 237
[1] Limited partnerships that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
[2] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.
v3.10.0.1
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance $ 3,810 $ 4,400 $ 4,088 $ 4,570
Total realized and unrealized gains (losses), Included in net income 8 9 (6) 26
Total realized and unrealized gains (losses), Included in OCI (62) 102 (187) 147
Purchases 194 124 425 280
Sales (26) (51) (29) (203)
Issuances 0 0 1 1
Settlements (210) (58) (412) (169)
Transfer into Level 3 [1] 115 104 136 119
Transfer out of Level 3 [1] (88) (169) (275) (310)
Ending balance 3,741 4,461 3,741 4,461
Total gains (losses) included in net income attributable to assets still held 9 6 (2) 7
Other invested assets        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 60 78 80 75
Total realized and unrealized gains (losses), Included in net income 8 12 (7) 23
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 15 9 29 21
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (13) (18) (32) (38)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 70 81 70 81
Total gains (losses) included in net income attributable to assets still held 8 0 (4) (3)
Other invested assets | Derivative assets        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 60 78 80 75
Total realized and unrealized gains (losses), Included in net income 8 12 (7) 23
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 15 9 29 21
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (13) (18) (32) (38)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 70 81 70 81
Total gains (losses) included in net income attributable to assets still held 8 0 (4) (3)
Other invested assets | Derivative assets | Equity index options        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 60 77 80 72
Total realized and unrealized gains (losses), Included in net income 8 13 (7) 26
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 15 9 29 21
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (13) (18) (32) (38)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 70 81 70 81
Total gains (losses) included in net income attributable to assets still held 8 0 (4) 0
Other invested assets | Derivative assets | Other foreign currency contracts        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance   1   3
Total realized and unrealized gains (losses), Included in net income   (1)   (3)
Total realized and unrealized gains (losses), Included in OCI   0   0
Purchases   0   0
Sales   0   0
Issuances   0   0
Settlements   0   0
Transfer into Level 3 [1]   0   0
Transfer out of Level 3 [1]   0   0
Ending balance   0   0
Total gains (losses) included in net income attributable to assets still held   0   (3)
Restricted other invested assets related to securitization entities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance       131
Total realized and unrealized gains (losses), Included in net income       0
Total realized and unrealized gains (losses), Included in OCI       0
Purchases       0
Sales       (131)
Issuances       0
Settlements       0
Transfer into Level 3 [1]       0
Transfer out of Level 3 [1]       0
Ending balance   0   0
Total gains (losses) included in net income attributable to assets still held       0
Reinsurance recoverable        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance [2] 13 15 14 16
Total realized and unrealized gains (losses), Included in net income [2] (1) 0 (3) (2)
Total realized and unrealized gains (losses), Included in OCI [2] 0 0 0 0
Purchases [2] 0 0 0 0
Sales [2] 0 0 0 0
Issuances [2] 0 0 1 1
Settlements [2] 0 0 0 0
Transfer into Level 3 [1],[2] 0 0 0 0
Transfer out of Level 3 [1],[2] 0 0 0 0
Ending balance [2] 12 15 12 15
Total gains (losses) included in net income attributable to assets still held [2] (1) 0 (3) (2)
Fixed maturity securities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 3,692 4,260 3,950 4,301
Total realized and unrealized gains (losses), Included in net income 1 (3) 4 5
Total realized and unrealized gains (losses), Included in OCI (62) 102 (187) 147
Purchases 178 114 391 258
Sales (26) (51) (26) (72)
Issuances 0 0 0 0
Settlements (197) (40) (380) (131)
Transfer into Level 3 [1] 115 104 136 119
Transfer out of Level 3 [1] (88) (169) (275) (310)
Ending balance 3,613 4,317 3,613 4,317
Total gains (losses) included in net income attributable to assets still held 2 6 5 12
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance   1 1 2
Total realized and unrealized gains (losses), Included in net income   0 0 0
Total realized and unrealized gains (losses), Included in OCI   0 0 0
Purchases   0 0 0
Sales   0 0 0
Issuances   0 0 0
Settlements   0 (1) (1)
Transfer into Level 3 [1]   0 0 0
Transfer out of Level 3 [1]   0 0 0
Ending balance 0 1 0 1
Total gains (losses) included in net income attributable to assets still held   0 0 0
Fixed maturity securities | State and Political Subdivisions        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 53 37 37 37
Total realized and unrealized gains (losses), Included in net income 0 0 1 1
Total realized and unrealized gains (losses), Included in OCI (1) 0 (4) (1)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 0 0 18 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 52 37 52 37
Total gains (losses) included in net income attributable to assets still held 0 0 1 1
Fixed maturity securities | U.S. corporate        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 2,000 2,441 2,152 2,487
Total realized and unrealized gains (losses), Included in net income (1) 4 0 9
Total realized and unrealized gains (losses), Included in OCI (48) 72 (124) 102
Purchases 101 71 162 126
Sales (25) (7) (25) (27)
Issuances 0 0 0 0
Settlements (100) (15) (223) (49)
Transfer into Level 3 [1] 25 68 25 68
Transfer out of Level 3 [1] (21) (74) (36) (156)
Ending balance 1,931 2,560 1,931 2,560
Total gains (losses) included in net income attributable to assets still held 0 5 1 9
Fixed maturity securities | U.S. corporate | Utilities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 553 578 574 576
Total realized and unrealized gains (losses), Included in net income (1) 0 (1) 0
Total realized and unrealized gains (losses), Included in OCI (7) 13 (25) 20
Purchases 66 30 69 44
Sales (12) 0 (12) 0
Issuances 0 0 0 0
Settlements (2) 0 (4) (2)
Transfer into Level 3 [1] 25 30 25 30
Transfer out of Level 3 [1] 0 (13) (4) (30)
Ending balance 622 638 622 638
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | U.S. corporate | Energy        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 146 162 147 210
Total realized and unrealized gains (losses), Included in net income 0 0 0 (1)
Total realized and unrealized gains (losses), Included in OCI 0 4 (5) 6
Purchases 0 0 22 0
Sales 0 0 0 (10)
Issuances 0 0 0 0
Settlements (1) (7) (19) (30)
Transfer into Level 3 [1] 0 1 0 1
Transfer out of Level 3 [1] (7) 0 (7) (16)
Ending balance 138 160 138 160
Total gains (losses) included in net income attributable to assets still held 0 0 0 (1)
Fixed maturity securities | U.S. corporate | Finance and insurance        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 580 818 626 786
Total realized and unrealized gains (losses), Included in net income 0 4 1 8
Total realized and unrealized gains (losses), Included in OCI (41) 39 (67) 51
Purchases 0 24 26 53
Sales 0 (7) 0 (17)
Issuances 0 0 0 0
Settlements (74) (3) (110) (6)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] (7) (14) (18) (14)
Ending balance 458 861 458 861
Total gains (losses) included in net income attributable to assets still held 0 4 1 8
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 79 122 81 121
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 0 (2) 1
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 79 122 79 122
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | U.S. corporate | Technology and communications        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 25 59 73 54
Total realized and unrealized gains (losses), Included in net income 0 0 0 1
Total realized and unrealized gains (losses), Included in OCI 1 5 (5) 6
Purchases 4 4 4 14
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (18) 0 (60) 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 (10) 0 (17)
Ending balance 12 58 12 58
Total gains (losses) included in net income attributable to assets still held 0 0 0 1
Fixed maturity securities | U.S. corporate | Industrial        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 39 47 39 48
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 1 1 0
Purchases 0 13 0 13
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 40 61 40 61
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | U.S. corporate | Capital goods        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 103 153 121 152
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (1) 2 (9) 3
Purchases 24 0 24 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 (10) 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] (7) (37) (7) (37)
Ending balance 119 118 119 118
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | U.S. corporate | Consumer-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 252 263 262 258
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (1) 4 (10) 9
Purchases 7 0 17 2
Sales (3) 0 (3) 0
Issuances 0 0 0 0
Settlements (1) (1) (12) (3)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 254 266 254 266
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | U.S. corporate | Transportation        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 57 97 60 139
Total realized and unrealized gains (losses), Included in net income 0 0 0 1
Total realized and unrealized gains (losses), Included in OCI 0 4 (1) 5
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) (1) (3) (3)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 (42)
Ending balance 56 100 56 100
Total gains (losses) included in net income attributable to assets still held 0 1 0 1
Fixed maturity securities | U.S. corporate | Other        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 166 142 169 143
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 0 (1) 1
Purchases 0 0 0 0
Sales (10) 0 (10) 0
Issuances 0 0 0 0
Settlements (3) (3) (5) (5)
Transfer into Level 3 [1] 0 37 0 37
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 153 176 153 176
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 1,427 1,501 1,416 1,533
Total realized and unrealized gains (losses), Included in net income 2 1 3 3
Total realized and unrealized gains (losses), Included in OCI (13) 17 (54) 29
Purchases 26 25 104 55
Sales (1) 0 (1) (1)
Issuances 0 0 0 0
Settlements (72) (20) (99) (73)
Transfer into Level 3 [1] 32 1 32 11
Transfer out of Level 3 [1] (15) (81) (15) (113)
Ending balance 1,386 1,444 1,386 1,444
Total gains (losses) included in net income attributable to assets still held 2 1 3 2
Fixed maturity securities | Non-U.S. corporate | Utilities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 336 386 343 386
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (4) 3 (13) 5
Purchases 0 0 22 30
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 (20) 0
Transfer into Level 3 [1] 15 0 15 0
Transfer out of Level 3 [1] (14) (30) (14) (62)
Ending balance 333 359 333 359
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Energy        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 195 206 176 206
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (2) 3 (6) 5
Purchases 0 0 23 0
Sales 0 0 0 (1)
Issuances 0 0 0 0
Settlements (18) 0 (18) (1)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 (32) 0 (32)
Ending balance 175 177 175 177
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Finance and insurance        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 153 168 161 182
Total realized and unrealized gains (losses), Included in net income 1 1 2 3
Total realized and unrealized gains (losses), Included in OCI (3) 4 (11) 8
Purchases 1 4 1 4
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) (5) (2) (25)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] (1) 0 (1) 0
Ending balance 150 172 150 172
Total gains (losses) included in net income attributable to assets still held 1 1 2 2
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 120 129 124 139
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (1) 1 (4) 2
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (11) (1) (12) (12)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 108 129 108 129
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Technology and communications        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 28 48 29 67
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (13) 0 (13) (19)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 16 48 16 48
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Industrial        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 108 110 116 109
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (1) 2 (4) 3
Purchases 3 0 3 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (5) 0 (10) 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 105 112 105 112
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Capital goods        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 186 170 191 169
Total realized and unrealized gains (losses), Included in net income 1 0 1 0
Total realized and unrealized gains (losses), Included in OCI 0 1 (5) 2
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (21) (15) (21) (15)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 (7) 0 (7)
Ending balance 166 149 166 149
Total gains (losses) included in net income attributable to assets still held 1 0 1 0
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 52 67 54 69
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 0 (2) 0
Purchases 0 0 0 0
Sales (1) 0 (1) 0
Issuances 0 0 0 0
Settlements (3) 0 (3) (2)
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 48 67 48 67
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Transportation        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 166 193 170 181
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (2) 1 (6) 3
Purchases 22 6 22 6
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 17 1 17 11
Transfer out of Level 3 [1] 0 (11) 0 (11)
Ending balance 203 190 203 190
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Non-U.S. corporate | Other        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 83 24 52 25
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI (1) 2 (3) 1
Purchases 0 15 33 15
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 82 41 82 41
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Residential mortgage-backed        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 34 46 77 43
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 1 0 1
Purchases 17 0 29 4
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) 0 (1) (1)
Transfer into Level 3 [1] 0 26 0 26
Transfer out of Level 3 [1] (17) 0 (71) 0
Ending balance 34 73 34 73
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Commercial mortgage-backed        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 6 59 30 54
Total realized and unrealized gains (losses), Included in net income 0 (1) 0 (1)
Total realized and unrealized gains (losses), Included in OCI 0 2 (2) 6
Purchases 28 8 35 9
Sales 0 (9) 0 (9)
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 13 0 13 0
Transfer out of Level 3 [1] (3) (7) (32) (7)
Ending balance 44 52 44 52
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Fixed maturity securities | Other asset-backed        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 172 175 237 145
Total realized and unrealized gains (losses), Included in net income 0 (7) 0 (7)
Total realized and unrealized gains (losses), Included in OCI (1) 10 (3) 10
Purchases 6 10 61 64
Sales 0 (35) 0 (35)
Issuances 0 0 0 0
Settlements (24) (5) (56) (7)
Transfer into Level 3 [1] 45 9 48 14
Transfer out of Level 3 [1] (32) (7) (121) (34)
Ending balance 166 150 166 150
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Equity Securities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 45 47 44 47
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 1 1 5 1
Sales 0 0 (3) 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance 46 48 46 48
Total gains (losses) included in net income attributable to assets still held $ 0 $ 0 $ 0 $ 0
[1] The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
[2] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.
v3.10.0.1
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair value of financial instruments [Abstract]        
Total realized and unrealized gains (losses) included in net income, assets $ 8 $ 9 $ (6) $ 26
Net gains (losses) included in net income attributable to assets still held, assets 9 6 (2) 7
Net Investment Income        
Fair value of financial instruments [Abstract]        
Total realized and unrealized gains (losses) included in net income, assets 2 5 5 14
Net gains (losses) included in net income attributable to assets still held, assets 2 6 5 13
Net Investment (Gains) Losses        
Fair value of financial instruments [Abstract]        
Total realized and unrealized gains (losses) included in net income, assets 6 4 (11) 12
Net gains (losses) included in net income attributable to assets still held, assets $ 7 $ 0 $ (7) $ (6)
v3.10.0.1
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value $ 771 $ 730
Fixed maturity securities available-for-sale, at fair value 60,032 62,525
Derivative assets, fair value 242 290
Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value 668 683
Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value [1] 235 250
Policyholder account balances | Fixed index annuity embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value 420 419
Policyholder account balances | Indexed universal life embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value 13 14
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Fixed maturity securities available-for-sale, at fair value $ 3,613 3,950
Level 3 | Other invested assets | Equity index options    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Discounted cash flows  
Derivative assets, fair value $ 70  
Fair value input, equity index volatility, lower limit 6.00%  
Fair value input, equity index volatility, upper limit 28.00%  
Fair value input, equity index volatility, weighted-average 18.00%  
Level 3 | Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value $ 668 683
Level 3 | Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique [1] Stochastic cash flow model  
Derivative liabilities, fair value [1] $ 235 250
Fair value, withdrawal utilization rate, lower limit [1] 42.00%  
Fair value, withdrawal utilization rate, upper limit [1] 86.00%  
Fair value, lapse rate, lower limit [1] 2.00%  
Fair value, lapse rate, upper limit [1] 9.00%  
Fair value input, credit spreads, lower limit [1] 0.28%  
Fair value input, credit spreads, upper limit [1] 0.83%  
Fair value input, equity index volatility, lower limit [1] 15.00%  
Fair value input, equity index volatility, upper limit [1] 24.00%  
Fair value, withdrawal utilization rate, weighted-average [1] 67.00%  
Fair value, lapse rate, weighted-average [1] 4.00%  
Fair value input, credit spreads, weighted-average [1] 0.69%  
Fair value input, equity index volatility, weighted-average [1] 21.00%  
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Option budget method  
Derivative liabilities, fair value $ 420 419
Fair value, expected future interest credited, lower limit 0.00%  
Fair value, expected future interest credited, upper limit 3.00%  
Fair value, expected future interest credited, weighted-average 1.00%  
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Option budget method  
Derivative liabilities, fair value $ 13 $ 14
Fair value, expected future interest credited, lower limit 3.00%  
Fair value, expected future interest credited, upper limit 9.00%  
Fair value, expected future interest credited, weighted-average 6.00%  
Internal Models | Level 3 | U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 1,836  
Fair value input, credit spreads, lower limit 0.59%  
Fair value input, credit spreads, upper limit 2.90%  
Fair value input, credit spreads, weighted-average 1.36%  
Internal Models | Level 3 | U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 616  
Fair value input, credit spreads, lower limit 0.67%  
Fair value input, credit spreads, upper limit 2.62%  
Fair value input, credit spreads, weighted-average 1.38%  
Internal Models | Level 3 | U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 116  
Fair value input, credit spreads, lower limit 0.80%  
Fair value input, credit spreads, upper limit 2.78%  
Fair value input, credit spreads, weighted-average 1.48%  
Internal Models | Level 3 | U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 439  
Fair value input, credit spreads, lower limit 0.83%  
Fair value input, credit spreads, upper limit 2.90%  
Fair value input, credit spreads, weighted-average 1.57%  
Internal Models | Level 3 | U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 79  
Fair value input, credit spreads, lower limit 0.90%  
Fair value input, credit spreads, upper limit 1.72%  
Fair value input, credit spreads, weighted-average 1.22%  
Internal Models | Level 3 | U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 12  
Fair value input, credit spreads, lower limit 0.63%  
Fair value input, credit spreads, upper limit 1.59%  
Fair value input, credit spreads, weighted-average 0.94%  
Internal Models | Level 3 | U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 40  
Fair value input, credit spreads, lower limit 1.09%  
Fair value input, credit spreads, upper limit 2.02%  
Internal Models | Level 3 | U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 119  
Fair value input, credit spreads, lower limit 0.93%  
Fair value input, credit spreads, upper limit 2.41%  
Fair value input, credit spreads, weighted-average 1.36%  
Internal Models | Level 3 | U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 213  
Fair value input, credit spreads, lower limit 0.74%  
Fair value input, credit spreads, upper limit 2.10%  
Fair value input, credit spreads, weighted-average 1.35%  
Internal Models | Level 3 | U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 50  
Fair value input, credit spreads, lower limit 0.59%  
Fair value input, credit spreads, upper limit 1.17%  
Fair value input, credit spreads, weighted-average 0.87%  
Internal Models | Level 3 | U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 152  
Fair value input, credit spreads, lower limit 0.74%  
Fair value input, credit spreads, upper limit 1.24%  
Fair value input, credit spreads, weighted-average 0.85%  
Internal Models | Level 3 | Non-U.S. corporate    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 1,314  
Fair value input, credit spreads, lower limit 0.61%  
Fair value input, credit spreads, upper limit 2.54%  
Fair value input, credit spreads, weighted-average 1.36%  
Internal Models | Level 3 | Non-U.S. corporate | Utilities    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 333  
Fair value input, credit spreads, lower limit 0.83%  
Fair value input, credit spreads, upper limit 1.79%  
Fair value input, credit spreads, weighted-average 1.28%  
Internal Models | Level 3 | Non-U.S. corporate | Energy    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 134  
Fair value input, credit spreads, lower limit 0.93%  
Fair value input, credit spreads, upper limit 2.54%  
Fair value input, credit spreads, weighted-average 1.27%  
Internal Models | Level 3 | Non-U.S. corporate | Finance and insurance    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 143  
Fair value input, credit spreads, lower limit 0.74%  
Fair value input, credit spreads, upper limit 2.35%  
Fair value input, credit spreads, weighted-average 1.37%  
Internal Models | Level 3 | Non-U.S. corporate | Consumer-non-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 108  
Fair value input, credit spreads, lower limit 0.61%  
Fair value input, credit spreads, upper limit 2.02%  
Fair value input, credit spreads, weighted-average 1.28%  
Internal Models | Level 3 | Non-U.S. corporate | Technology and communications    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 15  
Fair value input, credit spreads, lower limit 1.44%  
Fair value input, credit spreads, upper limit 1.64%  
Fair value input, credit spreads, weighted-average 1.55%  
Internal Models | Level 3 | Non-U.S. corporate | Industrial    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 105  
Fair value input, credit spreads, lower limit 1.07%  
Fair value input, credit spreads, upper limit 2.41%  
Fair value input, credit spreads, weighted-average 1.50%  
Internal Models | Level 3 | Non-U.S. corporate | Capital goods    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 166  
Fair value input, credit spreads, lower limit 0.93%  
Fair value input, credit spreads, upper limit 2.48%  
Fair value input, credit spreads, weighted-average 1.52%  
Internal Models | Level 3 | Non-U.S. corporate | Consumer-cyclical    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 44  
Fair value input, credit spreads, lower limit 0.84%  
Fair value input, credit spreads, upper limit 1.72%  
Fair value input, credit spreads, weighted-average 1.02%  
Internal Models | Level 3 | Non-U.S. corporate | Transportation    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 184  
Fair value input, credit spreads, lower limit 0.80%  
Fair value input, credit spreads, upper limit 2.41%  
Fair value input, credit spreads, weighted-average 1.35%  
Internal Models | Level 3 | Non-U.S. corporate | Other    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Internal models  
Fixed maturity securities available-for-sale, at fair value $ 82  
Fair value input, credit spreads, lower limit 1.08%  
Fair value input, credit spreads, upper limit 2.48%  
Fair value input, credit spreads, weighted-average 1.61%  
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
v3.10.0.1
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value $ 771 $ 730
Total liabilities 771 730
Other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 103 47
Other liabilities | Interest rate swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 71 25
Other liabilities | Foreign currency swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 9  
Other liabilities | Other foreign currency contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 23 20
Other liabilities | Equity return swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value   2
Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 668 683
Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value [1] 235 250
Policyholder account balances | Fixed index annuity embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 420 419
Policyholder account balances | Indexed universal life embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 13 14
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities 0 0
Level 1 | Other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 1 | Other liabilities | Interest rate swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 1 | Other liabilities | Foreign currency swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0  
Level 1 | Other liabilities | Other foreign currency contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 1 | Other liabilities | Equity return swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value   0
Level 1 | Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 1 | Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value [1] 0 0
Level 1 | Policyholder account balances | Fixed index annuity embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 1 | Policyholder account balances | Indexed universal life embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities 103 47
Level 2 | Other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 103 47
Level 2 | Other liabilities | Interest rate swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 71 25
Level 2 | Other liabilities | Foreign currency swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 9  
Level 2 | Other liabilities | Other foreign currency contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 23 20
Level 2 | Other liabilities | Equity return swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value   2
Level 2 | Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 2 | Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value [1] 0 0
Level 2 | Policyholder account balances | Fixed index annuity embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 2 | Policyholder account balances | Indexed universal life embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities 668 683
Level 3 | Other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 3 | Other liabilities | Interest rate swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 3 | Other liabilities | Foreign currency swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0  
Level 3 | Other liabilities | Other foreign currency contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 0 0
Level 3 | Other liabilities | Equity return swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value   0
Level 3 | Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 668 683
Level 3 | Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value [1] 235 250
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 420 419
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value $ 13 $ 14
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
v3.10.0.1
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance $ 663 $ 661 $ 683 $ 670
Total realized and unrealized (gains) losses included in net (income) (1) 13 (30) (2)
Total realized and unrealized (gains) losses included in OCI 0 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 9 10 21 19
Settlements (3) (2) (6) (5)
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 668 682 668 682
Total (gains) losses included in net (income) attributable to liabilities still held (1) 12 (26) 1
Policyholder account balances        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 663 648 683 658
Total realized and unrealized (gains) losses included in net (income) (1) 13 (30) (3)
Total realized and unrealized (gains) losses included in OCI 0 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 9 10 21 19
Settlements (3) (1) (6) (4)
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 668 670 668 670
Total (gains) losses included in net (income) attributable to liabilities still held (1) 12 (26) 0
Policyholder account balances | GMWB embedded derivatives        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance [1] 242 275 250 303
Total realized and unrealized (gains) losses included in net (income) [1] (14) (1) (30) (36)
Total realized and unrealized (gains) losses included in OCI [1] 0 0 0 0
Purchases [1] 0 0 0 0
Sales [1] 0 0 0 0
Issuances [1] 7 7 15 14
Settlements [1] 0 0 0 0
Transfer into Level 3 [1] 0 0 0 0
Transfer out of Level 3 [1] 0 0 0 0
Ending balance [1] 235 281 235 281
Total (gains) losses included in net (income) attributable to liabilities still held [1] (14) (2) (26) (33)
Policyholder account balances | Fixed index annuity embedded derivatives        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 408 361 419 344
Total realized and unrealized (gains) losses included in net (income) 15 16 7 36
Total realized and unrealized (gains) losses included in OCI 0 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (3) (1) (6) (4)
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 420 376 420 376
Total (gains) losses included in net (income) attributable to liabilities still held 15 16 7 36
Policyholder account balances | Indexed universal life embedded derivatives        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 13 12 14 11
Total realized and unrealized (gains) losses included in net (income) (2) (2) (7) (3)
Total realized and unrealized (gains) losses included in OCI 0 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 2 3 6 5
Settlements 0 0 0 0
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 13 13 13 13
Total (gains) losses included in net (income) attributable to liabilities still held $ (2) (2) $ (7) (3)
Borrowings related to securitization entities        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance   13   12
Total realized and unrealized (gains) losses included in net (income)   0   1
Total realized and unrealized (gains) losses included in OCI   0   0
Purchases   0   0
Sales   0   0
Issuances   0   0
Settlements   (1)   (1)
Transfer into Level 3   0   0
Transfer out of Level 3   0   0
Ending balance   12   12
Total (gains) losses included in net (income) attributable to liabilities still held   $ 0   $ 1
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
v3.10.0.1
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Total realized and unrealized (gains) losses included in net (income) loss, liabilities $ (1) $ 13 $ (30) $ (2)
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities (1) 12 (26) 1
Net Investment Income        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Total realized and unrealized (gains) losses included in net (income) loss, liabilities 0 0 0 0
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities 0 0 0 0
Net Investment (Gains) Losses        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Total realized and unrealized (gains) losses included in net (income) loss, liabilities (1) 13 (30) (2)
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities $ (1) $ 12 $ (26) $ 1
v3.10.0.1
Changes in Liability for Policy and Contract Claims (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]    
Beginning balance $ 9,594 $ 9,256
Less reinsurance recoverables (2,419) (2,409)
Net beginning balance 7,175 6,847
Current year 1,946 1,804
Prior years (244) (244)
Total incurred 1,702 1,560
Current year (434) (450)
Prior years (1,266) (1,224)
Total paid (1,700) (1,674)
Interest on liability for policy and contract claims 163 147
Foreign currency translation (16) 18
Net ending balance 7,324 6,898
Add reinsurance recoverables 2,341 2,341
Ending balance $ 9,665 $ 9,239
v3.10.0.1
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Jun. 30, 2017
Liability for Claims and Claims Adjustment Expense [Line Items]      
Incurred related to insured events of prior year   $ 244 $ 244
Long-term Care Insurance      
Liability for Claims and Claims Adjustment Expense [Line Items]      
Incurred related to insured events of prior year   $ 244 $ 244
U.S. Mortgage Insurance      
Liability for Claims and Claims Adjustment Expense [Line Items]      
Favorable reserve adjustment $ 26    
v3.10.0.1
Borrowings - Long Term Borrowings (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Debt Instrument [Line Items]    
Total $ 4,047 $ 4,224
Genworth Holdings    
Debt Instrument [Line Items]    
Long-term borrowings 3,624 3,773
Bond consent fees (30) (33)
Deferred borrowing charges (23) (16)
Total [1] 3,571 3,724
Genworth Holdings | Floating Rate Senior Secured Term Loan Facility, Due 2023    
Debt Instrument [Line Items]    
Long-term borrowings 448 0
Genworth Holdings | 6.52% Senior Notes, Due 2018    
Debt Instrument [Line Items]    
Long-term borrowings 0 597
Genworth Holdings | 7.70% Senior Notes, Due 2020    
Debt Instrument [Line Items]    
Long-term borrowings 397 397
Genworth Holdings | 7.20% Senior Notes, Due 2021    
Debt Instrument [Line Items]    
Long-term borrowings 381 381
Genworth Holdings | 7.625% Senior Notes, Due 2021    
Debt Instrument [Line Items]    
Long-term borrowings 704 704
Genworth Holdings | 4.90% Senior Notes, Due 2023    
Debt Instrument [Line Items]    
Long-term borrowings 399 399
Genworth Holdings | 4.80% Senior Notes, Due 2024    
Debt Instrument [Line Items]    
Long-term borrowings 400 400
Genworth Holdings | 6.50% Senior Notes, Due 2034    
Debt Instrument [Line Items]    
Long-term borrowings 297 297
Genworth Holdings | 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066    
Debt Instrument [Line Items]    
Long-term borrowings 598 598
Genworth Canada    
Debt Instrument [Line Items]    
Long-term borrowings 331 347
Deferred borrowing charges (1) (1)
Total [2] 330 346
Genworth Canada | 5.68% Senior Notes, Due 2020    
Debt Instrument [Line Items]    
Long-term borrowings 209 219
Genworth Canada | 4.24% Senior Notes, due 2024    
Debt Instrument [Line Items]    
Long-term borrowings 122 128
Genworth Financial Mortgage Insurance Pty Limited    
Debt Instrument [Line Items]    
Deferred borrowing charges (2) (2)
Total [3] 146 154
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2025    
Debt Instrument [Line Items]    
Long-term borrowings $ 148 $ 156
[1] We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread.
[2] Senior notes issued by Genworth MI Canada Inc. ("Genworth Canada"), our majority-owned subsidiary.
[3] Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited, our indirect wholly-owned subsidiary.
v3.10.0.1
Borrowings - Long Term Borrowings (Parenthetical) (Detail)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
May 22, 2018
Floating Rate Senior Secured Term Loan Facility, Due 2023 | Genworth Holdings      
Debt Instrument [Line Items]      
Debt instrument, maturity year 2023 2023  
6.52% Senior Notes, Due 2018 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 6.52% 6.52% 6.52%
Debt instrument, maturity year 2018 2018  
7.70% Senior Notes, Due 2020 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 7.70% 7.70%  
Debt instrument, maturity year 2020 2020  
7.20% Senior Notes, Due 2021 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 7.20% 7.20%  
Debt instrument, maturity year 2021 2021  
7.625% Senior Notes, Due 2021 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 7.625% 7.625%  
Debt instrument, maturity year 2021 2021  
4.90% Senior Notes, Due 2023 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 4.90% 4.90%  
Debt instrument, maturity year 2023 2023  
4.80% Senior Notes, Due 2024 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 4.80% 4.80%  
Debt instrument, maturity year 2024 2024  
6.50% Senior Notes, Due 2034 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 6.50% 6.50%  
Debt instrument, maturity year 2034 2034  
6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | Genworth Holdings      
Debt Instrument [Line Items]      
Interest rate 6.15% 6.15%  
Debt instrument, maturity year 2066 2066  
5.68% Senior Notes, Due 2020 | Genworth Canada      
Debt Instrument [Line Items]      
Interest rate 5.68% 5.68%  
Debt instrument, maturity year 2020 2020  
4.24% Senior Notes, due 2024 | Genworth Canada      
Debt Instrument [Line Items]      
Interest rate 4.24% 4.24%  
Debt instrument, maturity year 2024 2024  
Floating Rate Junior Notes, Due 2025 | Genworth Financial Mortgage Insurance Pty Limited      
Debt Instrument [Line Items]      
Debt instrument, maturity year 2025 2025  
Fixed Rate Senior Notes | Genworth Holdings      
Debt Instrument [Line Items]      
Debt instrument, redemption description We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread.    
Fixed Rate Senior Notes | Genworth Holdings | Minimum      
Debt Instrument [Line Items]      
Senior notes redemption option 100.00%    
v3.10.0.1
Borrowings - Additional Information (Detail) - USD ($)
6 Months Ended
May 22, 2018
Mar. 07, 2018
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Debt Instrument [Line Items]          
Net proceeds of from senior secured term loan facility     $ 441,000,000 $ 0  
Genworth Holdings          
Debt Instrument [Line Items]          
Borrowing costs that were deferred     $ 23,000,000   $ 16,000,000
Genworth Holdings | Senior Secured Term Loan Facility          
Debt Instrument [Line Items]          
Facility, maximum borrowing capacity   $ 450,000,000      
Line of credit maturity date   Mar. 07, 2023      
Discount rate   0.50%      
Payments under agreement, due date   Jun. 30, 2018      
Quarterly equal payable of original principal, percentage   0.25%      
Term loan variable interest rate, description     The Term Loan will bear interest at either an adjusted London Interbank Offered Rate ("LIBOR") no lower than 1.0% plus a margin of 4.5% per annum or an alternate base rate plus a margin of 3.5% per annum.    
Interest rate on the Term Loan     6.50%    
Borrowing costs that were deferred   $ 7,000,000      
Genworth Holdings | LIBOR | Senior Secured Term Loan Facility          
Debt Instrument [Line Items]          
Adjusted London Interbank Offered Rate ("LIBOR")   1.00%      
Term loan variable interest rate   4.50%      
Genworth Holdings | Base Rate [Member] | Senior Secured Term Loan Facility          
Debt Instrument [Line Items]          
Term loan variable interest rate   3.50%      
Genworth Holdings | 6.52% Senior Notes, Due 2018          
Debt Instrument [Line Items]          
Redeemed principal amount of senior notes $ 597,000,000        
Adjusted London Interbank Offered Rate ("LIBOR") 6.52%   6.52%   6.52%
Debt instrument maturity month and year 2018-05        
Repayment of senior notes $ 616,000,000        
Net proceeds of from senior secured term loan facility 441,000,000        
Cash on hand $ 175,000,000        
Genworth Financial International Holdings | Genworth Canada          
Debt Instrument [Line Items]          
Ownership percentage   40.50%      
v3.10.0.1
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Income Tax Examination [Line Items]          
Statutory U.S. federal income tax rate 21.00% 35.00% 21.00% 35.00% 35.00%
TCJA, impact from change in tax rate 5.40% 0.00% 3.30% 0.00%  
Swaps terminated prior to the TCJA 3.90% 0.00% 3.20% 0.00%  
Effect of foreign operations 3.40% (2.00%) 3.20% (1.00%)  
Valuation allowance (2.00%) 0.00% (1.30%) 0.00%  
Provision to return adjustments (1.60%) 0.00% (0.70%) 0.00%  
Other, net 0.70% (0.50%) 0.90% (0.40%)  
Effective rate 30.80% 32.50% 29.60% 33.60%  
v3.10.0.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Income Taxes [Line Items]          
U.S. corporate federal tax rate 21.00% 35.00% 21.00% 35.00% 35.00%
SAB 118 Disclosures          
Income Taxes [Line Items]          
Tax effect related to revaluation of deferred tax assets and liabilities on foreign subsidiaries     $ 19    
TCJA, impact from change in tax rate         $ 154
2017 Tax Act, income tax provision due to one-time transition tax related to foreign earnings         63
2017 Tax Act, income tax provision due to one-time transition tax related to insurance policyholders reserves     $ 40   $ 134
v3.10.0.1
Segment Information - Additional Information (Detail)
$ in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Jun. 30, 2018
USD ($)
Segment
Jun. 30, 2017
USD ($)
Dec. 31, 2017
Segment Reporting Information [Line Items]            
Number of operating segments | Segment       5    
Corporate federal income tax rate 21.00% 35.00%   21.00% 35.00% 35.00%
Assumed tax rate on adjustments to net operating income       21.00%   35.00%
Expenses related to restructuring | $ $ 0 $ 0 $ 1 $ 0 $ 1  
v3.10.0.1
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Revenues $ 2,159 $ 2,223 $ 4,274 $ 4,394
Segment, Continuing Operations | U.S. Mortgage Insurance        
Segment Reporting Information [Line Items]        
Revenues 208 189 408 376
Segment, Continuing Operations | Canada Mortgage Insurance        
Segment Reporting Information [Line Items]        
Revenues 150 204 308 373
Segment, Continuing Operations | Australia Mortgage Insurance        
Segment Reporting Information [Line Items]        
Revenues 136 97 243 219
Segment, Continuing Operations | Long-term Care Insurance        
Segment Reporting Information [Line Items]        
Revenues 1,035 1,036 2,055 2,030
Segment, Continuing Operations | Life Insurance        
Segment Reporting Information [Line Items]        
Revenues 367 411 746 828
Segment, Continuing Operations | Fixed Annuities        
Segment Reporting Information [Line Items]        
Revenues 176 210 358 415
Segment, Continuing Operations | U.S. Life Insurance        
Segment Reporting Information [Line Items]        
Revenues 1,578 1,657 3,159 3,273
Segment, Continuing Operations | Runoff        
Segment Reporting Information [Line Items]        
Revenues 80 89 148 176
Segment, Continuing Operations | Corporate and Other        
Segment Reporting Information [Line Items]        
Revenues $ 7 $ (13) $ 8 $ (23)
v3.10.0.1
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]          
Net income available to Genworth Financial, Inc.'s common stockholders $ 190 $ 202   $ 302 $ 357
Add: net income attributable to noncontrolling interests 59 69   112 130
Net income 249 271   414 487
Loss from discontinued operations, net of taxes 0 0   0 0
Income from continuing operations 249 271   414 487
Less: income from continuing operations attributable to noncontrolling interests 59 69   112 130
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders 190 202   302 357
Net investment (gains) losses, net [1] 12 (79)   29 (99)
Expenses related to restructuring 0 0 $ 1 0 1
Taxes on adjustments (2) 28   (6) 35
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 200 151   325 294
Segment, Continuing Operations | U.S. Mortgage Insurance          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 137 91   248 164
Segment, Continuing Operations | Canada Mortgage Insurance          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 46 41   95 77
Segment, Continuing Operations | Australia Mortgage Insurance          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 22 12   41 25
Segment, Continuing Operations | Long-term Care Insurance          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 22 33   (10) 47
Segment, Continuing Operations | Life Insurance          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 4 (1)   3 15
Segment, Continuing Operations | Fixed Annuities          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 31 7   59 30
Segment, Continuing Operations | U.S. Life Insurance          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 57 39   52 92
Segment, Continuing Operations | Runoff          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 13 11   23 25
Segment, Continuing Operations | Corporate and Other          
Segment Reporting Information [Line Items]          
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders $ (75) $ (43)   $ (134) $ (89)
[1] For the three months ended June 30, 2018 and 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(1) million and zero, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(1) million and $22 million, respectively. For the six months ended June 30, 2018 and 2017, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million and zero, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(12) million and $36 million, respectively.
v3.10.0.1
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - Net Investment (Gains) Losses - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Adjustment for DAC and other intangibles and certain benefit reserves $ (1) $ 0 $ (4) $ 0
Adjustment for portion attributable to noncontrolling interests $ (1) $ 22 $ (12) $ 36
v3.10.0.1
Summary of Total Assets for Segments and Corporate and Other Activities (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]    
Total assets $ 102,477 $ 105,297
Segment, Continuing Operations    
Segment Reporting Information [Line Items]    
Total assets 102,477 105,297
Segment, Continuing Operations | U.S. Mortgage Insurance    
Segment Reporting Information [Line Items]    
Total assets 3,393 3,273
Segment, Continuing Operations | Canada Mortgage Insurance    
Segment Reporting Information [Line Items]    
Total assets 5,255 5,534
Segment, Continuing Operations | Australia Mortgage Insurance    
Segment Reporting Information [Line Items]    
Total assets 2,696 2,973
Segment, Continuing Operations | U.S. Life Insurance    
Segment Reporting Information [Line Items]    
Total assets 79,925 81,295
Segment, Continuing Operations | Runoff    
Segment Reporting Information [Line Items]    
Total assets 10,472 10,907
Segment, Continuing Operations | Corporate and Other    
Segment Reporting Information [Line Items]    
Total assets $ 736 $ 1,315
v3.10.0.1
Commitments and Contingencies - Additional Information (Detail)
£ in Millions, $ in Millions
1 Months Ended
Dec. 31, 2017
GBP (£)
Company
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Commitments and Contingencies Disclosure [Line Items]      
Indemnity limit | £ £ 28    
Number of insurance company sold | Company 2    
Commitment to fund limited partnership investments   $ 402  
Commitment to fund U.S. commercial mortgage loan investments   90  
Commitment to fund private placement investments   29  
Notional amount      
Commitments and Contingencies Disclosure [Line Items]      
Commitment to fund bank loan investments   $ 30 $ 18
v3.10.0.1
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance     $ 3,027  
Cumulative effect of changes in accounting     131  
OCI before reclassifications $ (330) $ 77 (891) $ 174
Amounts reclassified from (to) OCI (19) (60) (38) (98)
Total other comprehensive income (loss) (349) 17 (929) 76
Balances before nonnontrolling interests 2,278 3,113 2,229 3,170
Less: change in OCI attributable to noncontrolling interests (49) 18 (98) 75
Ending balance 2,327   2,327  
Net unrealized investment (gains) losses        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance [1] 917 1,243 1,085 1,262
Cumulative effect of changes in accounting [1]     164  
OCI before reclassifications [1] (193) (32) (541) (25)
Amounts reclassified from (to) OCI [1] 6 (40) 13 (58)
Total other comprehensive income (loss) [1] (187) (72) (528) (83)
Balances before nonnontrolling interests [1] 730 1,171 721 1,179
Less: change in OCI attributable to noncontrolling interests [1] (6) (9) (15) (1)
Ending balance [1] 736 1,180 736 1,180
Derivatives qualifying as hedges        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance [2] 1,927 2,036 2,065 2,085
Cumulative effect of changes in accounting [2]     14  
OCI before reclassifications [2] (39) 48 (165) 19
Amounts reclassified from (to) OCI [2] (25) (20) (51) (40)
Total other comprehensive income (loss) [2] (64) 28 (216) (21)
Balances before nonnontrolling interests [2] 1,863 2,064 1,863 2,064
Less: change in OCI attributable to noncontrolling interests [2] 0 0 0 0
Ending balance [2] 1,863 2,064 1,863 2,064
Foreign currency translation and other adjustments        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance (217) (183) (123) (253)
Cumulative effect of changes in accounting     (47)  
OCI before reclassifications (98) 61 (185) 180
Amounts reclassified from (to) OCI 0 0 0 0
Total other comprehensive income (loss) (98) 61 (185) 180
Balances before nonnontrolling interests (315) (122) (355) (73)
Less: change in OCI attributable to noncontrolling interests (43) 27 (83) 76
Ending balance (272) (149) (272) (149)
Accumulated other comprehensive income (loss)        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance 2,627 3,096 3,027 3,094
Total other comprehensive income (loss)     (831) 1
Ending balance $ 2,327 $ 3,095 $ 2,327 $ 3,095
[1] Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.
[2] See note 5 for additional information.
v3.10.0.1
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Unrecognized postretirement benefit obligation, current period OCI $ (14) $ (5)
Unrecognized postretirement benefit obligation, current period OCI, tax 5 1
Foreign currency translation and other adjustments, current period OCI, tax $ (46) $ 23
v3.10.0.1
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net investment income $ (828) $ (801) $ (1,632) $ (1,591)
Net investment (gains) losses 14 (101) 45 (135)
(Provision) benefit for income taxes (111) (130) (174) (246)
(Income) loss from continuing operations (249) (271) (414) (487)
Amount reclassified from accumulated other comprehensive income (loss) | Net unrealized investment (gains) losses        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net investment (gains) losses [1] 8 (61) 16 (89)
(Provision) benefit for income taxes (2) 21 (3) 31
(Income) loss from continuing operations 6 (40) 13 (58)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
(Provision) benefit for income taxes 14 12 28 23
(Income) loss from continuing operations (25) (20) (51) (40)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Interest rate swaps        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net investment income (39) (31) (74) (61)
Net investment (gains) losses 0 (1) (5) (2)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Inflation indexed swaps        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net investment income $ 0 $ 0 $ 0 $ 0
[1] Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.
v3.10.0.1
Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Assets        
Fixed maturity securities available-for-sale, at fair value $ 60,032 $ 62,525    
Equity securities, at fair value 758 820    
Commercial mortgage loans 6,480 6,341    
Restricted commercial mortgage loans related to securitization entities 90 107    
Policy loans 1,872 1,786    
Other invested assets 1,650 1,813    
Investments in subsidiaries 0 0    
Total investments 70,882 73,392    
Cash, cash equivalents and restricted cash 2,243 2,875 $ 2,853 $ 2,784
Accrued investment income 602 644    
Deferred acquisition costs 3,086 2,329    
Intangible assets and goodwill 354 301    
Reinsurance recoverable 17,385 17,569    
Other assets 574 453    
Intercompany notes receivable 0 0    
Deferred tax assets 601 504    
Separate account assets 6,750 7,230    
Total assets 102,477 105,297    
Liabilities and equity        
Future policy benefits 37,913 38,472    
Policyholder account balances 23,366 24,195    
Liability for policy and contract claims 9,665 9,594 9,239 9,256
Unearned premiums 3,669 3,967    
Other liabilities 1,965 1,910    
Intercompany notes payable 0 0    
Borrowings related to securitization entities 28 40    
Non-recourse funding obligations 310 310    
Long-term borrowings 4,047 4,224    
Deferred tax liability 23 27    
Separate account liabilities 6,750 7,230    
Total liabilities 87,736 89,969    
Equity:        
Common stock 1 1    
Additional paid-incapital 11,981 11,977    
Accumulated other comprehensive income (loss) 2,327 3,027    
Retained earnings 1,301 1,113    
Treasury stock, at cost (2,700) (2,700)    
Total Genworth Financial, Inc.'s stockholders' equity 12,910 13,418    
Noncontrolling interests 1,831 1,910    
Total equity 14,741 15,328 14,996 14,467
Total liabilities and equity 102,477 105,297    
Reportable Legal Entities | Parent Guarantor        
Assets        
Fixed maturity securities available-for-sale, at fair value 0 0    
Equity securities, at fair value 0 0    
Commercial mortgage loans 0 0    
Restricted commercial mortgage loans related to securitization entities 0 0    
Policy loans 0 0    
Other invested assets 0 0    
Investments in subsidiaries 13,052 13,561    
Total investments 13,052 13,561    
Cash, cash equivalents and restricted cash 0 0 0 0
Accrued investment income 0 0    
Deferred acquisition costs 0 0    
Intangible assets and goodwill 0 0    
Reinsurance recoverable 0 0    
Other assets 5 3    
Intercompany notes receivable 0 0    
Deferred tax assets (15) 27    
Separate account assets 0 0    
Total assets 13,042 13,591    
Liabilities and equity        
Future policy benefits 0 0    
Policyholder account balances 0 0    
Liability for policy and contract claims 0 0    
Unearned premiums 0 0    
Other liabilities 7 41    
Intercompany notes payable 125 132    
Borrowings related to securitization entities 0 0    
Non-recourse funding obligations 0 0    
Long-term borrowings 0 0    
Deferred tax liability 0 0    
Separate account liabilities 0 0    
Total liabilities 132 173    
Equity:        
Common stock 1 1    
Additional paid-incapital 11,981 11,977    
Accumulated other comprehensive income (loss) 2,327 3,027    
Retained earnings 1,301 1,113    
Treasury stock, at cost (2,700) (2,700)    
Total Genworth Financial, Inc.'s stockholders' equity 12,910 13,418    
Noncontrolling interests 0 0    
Total equity 12,910 13,418    
Total liabilities and equity 13,042 13,591    
Reportable Legal Entities | Issuer        
Assets        
Fixed maturity securities available-for-sale, at fair value 0 0    
Equity securities, at fair value 0 0    
Commercial mortgage loans 0 0    
Restricted commercial mortgage loans related to securitization entities 0 0    
Policy loans 0 0    
Other invested assets 78 75    
Investments in subsidiaries 12,180 12,867    
Total investments 12,258 12,942    
Cash, cash equivalents and restricted cash 547 795 758 998
Accrued investment income 0 0    
Deferred acquisition costs 0 0    
Intangible assets and goodwill 0 0    
Reinsurance recoverable 0 0    
Other assets 50 54    
Intercompany notes receivable 165 155    
Deferred tax assets 918 0    
Separate account assets 0 0    
Total assets 13,938 13,946    
Liabilities and equity        
Future policy benefits 0 0    
Policyholder account balances 0 0    
Liability for policy and contract claims 0 0    
Unearned premiums 0 0    
Other liabilities 167 119    
Intercompany notes payable 200 259    
Borrowings related to securitization entities 0 0    
Non-recourse funding obligations 0 0    
Long-term borrowings 3,571 3,724    
Deferred tax liability 0 (807)    
Separate account liabilities 0 0    
Total liabilities 3,938 3,295    
Equity:        
Common stock 0 0    
Additional paid-incapital 9,095 9,096    
Accumulated other comprehensive income (loss) 2,414 3,037    
Retained earnings (1,509) (1,482)    
Treasury stock, at cost 0 0    
Total Genworth Financial, Inc.'s stockholders' equity 10,000 10,651    
Noncontrolling interests 0 0    
Total equity 10,000 10,651    
Total liabilities and equity 13,938 13,946    
Reportable Legal Entities | All Other Subsidiaries        
Assets        
Fixed maturity securities available-for-sale, at fair value 60,232 62,725    
Equity securities, at fair value 758 820    
Commercial mortgage loans 6,480 6,341    
Restricted commercial mortgage loans related to securitization entities 90 107    
Policy loans 1,872 1,786    
Other invested assets 1,584 1,742    
Investments in subsidiaries 0 0    
Total investments 71,016 73,521    
Cash, cash equivalents and restricted cash 1,696 2,080 2,095 1,786
Accrued investment income 606 647    
Deferred acquisition costs 3,086 2,329    
Intangible assets and goodwill 354 301    
Reinsurance recoverable 17,385 17,569    
Other assets 519 397    
Intercompany notes receivable 1 59    
Deferred tax assets (302) 477    
Separate account assets 6,750 7,230    
Total assets 101,111 104,610    
Liabilities and equity        
Future policy benefits 37,913 38,472    
Policyholder account balances 23,366 24,195    
Liability for policy and contract claims 9,665 9,594    
Unearned premiums 3,669 3,967    
Other liabilities 1,808 1,759    
Intercompany notes payable 41 23    
Borrowings related to securitization entities 28 40    
Non-recourse funding obligations 310 310    
Long-term borrowings 476 500    
Deferred tax liability 23 834    
Separate account liabilities 6,750 7,230    
Total liabilities 84,049 86,924    
Equity:        
Common stock 3 3    
Additional paid-incapital 18,420 18,420    
Accumulated other comprehensive income (loss) 2,338 3,051    
Retained earnings (5,830) (5,998)    
Treasury stock, at cost 0 0    
Total Genworth Financial, Inc.'s stockholders' equity 14,931 15,476    
Noncontrolling interests 2,131 2,210    
Total equity 17,062 17,686    
Total liabilities and equity 101,111 104,610    
Eliminations        
Assets        
Fixed maturity securities available-for-sale, at fair value (200) (200)    
Equity securities, at fair value 0 0    
Commercial mortgage loans 0 0    
Restricted commercial mortgage loans related to securitization entities 0 0    
Policy loans 0 0    
Other invested assets (12) (4)    
Investments in subsidiaries (25,232) (26,428)    
Total investments (25,444) (26,632)    
Cash, cash equivalents and restricted cash 0 0 $ 0 $ 0
Accrued investment income (4) (3)    
Deferred acquisition costs 0 0    
Intangible assets and goodwill 0 0    
Reinsurance recoverable 0 0    
Other assets 0 (1)    
Intercompany notes receivable (166) (214)    
Deferred tax assets 0 0    
Separate account assets 0 0    
Total assets (25,614) (26,850)    
Liabilities and equity        
Future policy benefits 0 0    
Policyholder account balances 0 0    
Liability for policy and contract claims 0 0    
Unearned premiums 0 0    
Other liabilities (17) (9)    
Intercompany notes payable (366) (414)    
Borrowings related to securitization entities 0 0    
Non-recourse funding obligations 0 0    
Long-term borrowings 0 0    
Deferred tax liability 0 0    
Separate account liabilities 0 0    
Total liabilities (383) (423)    
Equity:        
Common stock (3) (3)    
Additional paid-incapital (27,515) (27,516)    
Accumulated other comprehensive income (loss) (4,752) (6,088)    
Retained earnings 7,339 7,480    
Treasury stock, at cost 0 0    
Total Genworth Financial, Inc.'s stockholders' equity (24,931) (26,127)    
Noncontrolling interests (300) (300)    
Total equity (25,231) (26,427)    
Total liabilities and equity $ (25,614) $ (26,850)    
v3.10.0.1
Condensed Consolidating Income Statement (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues:        
Premiums $ 1,136 $ 1,111 $ 2,276 $ 2,247
Net investment income 828 801 1,632 1,591
Net investment gains (losses) (14) 101 (45) 135
Total revenues 2,159 2,223 4,274 4,394
Benefits and expenses:        
Benefits and other changes in policy reserves 1,205 1,206 2,516 2,452
Interest credited 152 163 308 330
Acquisition and operating expenses, net of deferrals 253 240 493 510
Amortization of deferred acquisition costs and intangibles 112 139 216 233
Interest expense 77 74 153 136
Total benefits and expenses 1,799 1,822 3,686 3,661
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries 360 401 588 733
Provision (benefit) for income taxes 111 130 174 246
Equity in income of subsidiaries 0 0 0 0
Income from continuing operations 249 271 414 487
Loss from discontinued operations, net of taxes 0 0 0 0
Net income 249 271 414 487
Less: net income attributable to noncontrolling interests 59 69 112 130
Net income available to Genworth Financial, Inc.'s common stockholders 190 202 302 357
Policy fees and other income        
Revenues:        
Revenue from contract with customer including assessed tax 209 210 411 421
Reportable Legal Entities | Parent Guarantor        
Revenues:        
Premiums 0 0 0 0
Net investment income 0 (1) (1) (2)
Net investment gains (losses) 0 0 0 0
Total revenues 0 (1) (1) (2)
Benefits and expenses:        
Benefits and other changes in policy reserves 0 0 0 0
Interest credited 0 0 0 0
Acquisition and operating expenses, net of deferrals 7 15 14 28
Amortization of deferred acquisition costs and intangibles 0 0 0 0
Interest expense 1 0 1 0
Total benefits and expenses 8 15 15 28
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (8) (16) (16) (30)
Provision (benefit) for income taxes 32 (7) 38 (4)
Equity in income of subsidiaries 230 211 356 383
Income from continuing operations 190 202 302 357
Loss from discontinued operations, net of taxes 0 0 0 0
Net income 190 202 302 357
Less: net income attributable to noncontrolling interests 0 0 0 0
Net income available to Genworth Financial, Inc.'s common stockholders 190 202 302 357
Reportable Legal Entities | Issuer        
Revenues:        
Premiums 0 0 0 0
Net investment income 4 2 7 3
Net investment gains (losses) (8) (5) (2) (8)
Total revenues (3) (4) 6 (6)
Benefits and expenses:        
Benefits and other changes in policy reserves 0 0 0 0
Interest credited 0 0 0 0
Acquisition and operating expenses, net of deferrals 0 0 0 0
Amortization of deferred acquisition costs and intangibles 0 0 0 0
Interest expense 70 66 138 121
Total benefits and expenses 70 66 138 121
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (73) (70) (132) (127)
Provision (benefit) for income taxes (14) (24) (31) (44)
Equity in income of subsidiaries 151 145 196 268
Income from continuing operations 92 99 95 185
Loss from discontinued operations, net of taxes 0 0 0 0
Net income 92 99 95 185
Less: net income attributable to noncontrolling interests 0 0 0 0
Net income available to Genworth Financial, Inc.'s common stockholders 92 99 95 185
Reportable Legal Entities | All Other Subsidiaries        
Revenues:        
Premiums 1,136 1,111 2,276 2,247
Net investment income 828 803 1,633 1,597
Net investment gains (losses) (6) 106 (43) 143
Total revenues 2,167 2,231 4,278 4,409
Benefits and expenses:        
Benefits and other changes in policy reserves 1,205 1,206 2,516 2,452
Interest credited 152 163 308 330
Acquisition and operating expenses, net of deferrals 246 225 479 482
Amortization of deferred acquisition costs and intangibles 112 139 216 233
Interest expense 11 11 23 22
Total benefits and expenses 1,726 1,744 3,542 3,519
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries 441 487 736 890
Provision (benefit) for income taxes 93 161 167 294
Equity in income of subsidiaries 0 0 0 0
Income from continuing operations 348 326 569 596
Loss from discontinued operations, net of taxes 0 0 0 0
Net income 348 326 569 596
Less: net income attributable to noncontrolling interests 59 69 112 130
Net income available to Genworth Financial, Inc.'s common stockholders 289 257 457 466
Reportable Legal Entities | Policy fees and other income | Parent Guarantor        
Revenues:        
Revenue from contract with customer including assessed tax 0 0 0 0
Reportable Legal Entities | Policy fees and other income | Issuer        
Revenues:        
Revenue from contract with customer including assessed tax 1 (1) 1 (1)
Reportable Legal Entities | Policy fees and other income | All Other Subsidiaries        
Revenues:        
Revenue from contract with customer including assessed tax 209 211 412 422
Eliminations        
Revenues:        
Premiums 0 0 0 0
Net investment income (4) (3) (7) (7)
Net investment gains (losses) 0 0 0 0
Total revenues (5) (3) (9) (7)
Benefits and expenses:        
Benefits and other changes in policy reserves 0 0 0 0
Interest credited 0 0 0 0
Acquisition and operating expenses, net of deferrals 0 0 0 0
Amortization of deferred acquisition costs and intangibles 0 0 0 0
Interest expense (5) (3) (9) (7)
Total benefits and expenses (5) (3) (9) (7)
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries 0 0 0 0
Provision (benefit) for income taxes 0 0 0 0
Equity in income of subsidiaries (381) (356) (552) (651)
Income from continuing operations (381) (356) (552) (651)
Loss from discontinued operations, net of taxes 0 0 0 0
Net income (381) (356) (552) (651)
Less: net income attributable to noncontrolling interests 0 0 0 0
Net income available to Genworth Financial, Inc.'s common stockholders (381) (356) (552) (651)
Eliminations | Policy fees and other income        
Revenues:        
Revenue from contract with customer including assessed tax $ (1) $ 0 $ (2) $ 0
v3.10.0.1
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Condensed Financial Statements, Captions [Line Items]        
Net income $ 249 $ 271 $ 414 $ 487
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities not other-than-temporarily impaired (185) (72) (526) (84)
Net unrealized gains (losses) on other-than-temporarily impaired securities (2) 0 (2) 1
Derivatives qualifying as hedges (64) 28 (216) (21)
Foreign currency translation and other adjustments (98) 61 (185) 180
Total other comprehensive income (loss) (349) 17 (929) 76
Total comprehensive income (loss) (100) 288 (515) 563
Less: comprehensive income attributable to noncontrolling interests 10 87 14 205
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders (110) 201 (529) 358
Reportable Legal Entities | Parent Guarantor        
Condensed Financial Statements, Captions [Line Items]        
Net income 190 202 302 357
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities not other-than-temporarily impaired (179) (63) (511) (83)
Net unrealized gains (losses) on other-than-temporarily impaired securities (2)   (2) 1
Derivatives qualifying as hedges (64) 28 (216) (21)
Foreign currency translation and other adjustments (55) 34 (102) 104
Total other comprehensive income (loss) (300) (1) (831) 1
Total comprehensive income (loss) (110) 201 (529) 358
Less: comprehensive income attributable to noncontrolling interests 0 0 0 0
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders (110) 201 (529) 358
Reportable Legal Entities | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Net income 92 99 95 185
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities not other-than-temporarily impaired (167) (70) (462) (101)
Net unrealized gains (losses) on other-than-temporarily impaired securities (1)   (1) 1
Derivatives qualifying as hedges (64) 28 (217) (21)
Foreign currency translation and other adjustments (46) 29 (82) 97
Total other comprehensive income (loss) (278) (13) (762) (24)
Total comprehensive income (loss) (186) 86 (667) 161
Less: comprehensive income attributable to noncontrolling interests 0 0 0 0
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders (186) 86 (667) 161
Reportable Legal Entities | All Other Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Net income 348 326 569 596
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities not other-than-temporarily impaired (185) (71) (526) (84)
Net unrealized gains (losses) on other-than-temporarily impaired securities (2)   (2) 1
Derivatives qualifying as hedges (68) 32 (233) (20)
Foreign currency translation and other adjustments (97) 61 (185) 180
Total other comprehensive income (loss) (352) 22 (946) 77
Total comprehensive income (loss) (4) 348 (377) 673
Less: comprehensive income attributable to noncontrolling interests 10 87 14 205
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders (14) 261 (391) 468
Eliminations        
Condensed Financial Statements, Captions [Line Items]        
Net income (381) (356) (552) (651)
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities not other-than-temporarily impaired 346 132 973 184
Net unrealized gains (losses) on other-than-temporarily impaired securities 3   3 (2)
Derivatives qualifying as hedges 132 (60) 450 41
Foreign currency translation and other adjustments 100 (63) 184 (201)
Total other comprehensive income (loss) 581 9 1,610 22
Total comprehensive income (loss) 200 (347) 1,058 (629)
Less: comprehensive income attributable to noncontrolling interests 0 0 0 0
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders $ 200 $ (347) $ 1,058 $ (629)
v3.10.0.1
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Cash flows from (used by) operating activities:        
Net income $ 249 $ 271 $ 414 $ 487
Adjustments to reconcile net income to net cash from (used by) operating activities:        
Equity in income from subsidiaries 0 0 0 0
Dividends from subsidiaries     0 0
Amortization of fixed maturity securities discounts and premiums     (62) (76)
Net investment (gains) losses 14 (101) 45 (135)
Charges assessed to policyholders     (359) (365)
Acquisition costs deferred     (40) (44)
Amortization of deferred acquisition costs and intangibles     216 233
Deferred income taxes     83 166
Trading securities, limited partnerships and derivative instruments     (195) 431
Stock-based compensation expense     16 18
Change in certain assets and liabilities:        
Accrued investment income and other assets     (89) (23)
Insurance reserves     691 806
Current tax liabilities     (37) (32)
Other liabilities, policy and contract claims and other policy-related balances     (122) (158)
Net cash from (used by) operating activities     561 1,308
Cash flows used by investing activities:        
Fixed maturity securities     1,979 2,358
Commercial mortgage loans     350 307
Restricted commercial mortgage loans related to securitization entities     16 11
Proceeds from sales of investments:        
Fixed maturity and equity securities     1,920 2,587
Purchases and originations of investments:        
Fixed maturity and equity securities     (4,082) (4,733)
Commercial mortgage loans     (489) (431)
Other invested assets, net     93 (638)
Policy loans, net     15 21
Intercompany notes receivable     0 0
Capital contributions to subsidiaries     0 0
Payments for business purchased, net of cash acquired     0 (5)
Net cash used by investing activities     (198) (523)
Cash flows from (used by) financing activities:        
Deposits to universal life and investment contracts     503 429
Withdrawals from universal life and investment contracts     (1,177) (1,091)
Proceeds from the issuance of long-term debt     441 0
Repayment and repurchase of long-term debt     (597) 0
Repayment of borrowings related to securitization entities     (12) (12)
Repurchase of subsidiary shares     (49) 0
Dividends paid to noncontrolling interests     (50) (52)
Intercompany notes payable     0 0
Other, net     (2) (29)
Net cash from (used by) financing activities     (943) (755)
Effect of exchange rate changes on cash, cash equivalents and restricted cash     (52) 39
Net change in cash, cash equivalents and restricted cash     (632) 69
Cash, cash equivalents and restricted cash at beginning of period     2,875 2,784
Cash, cash equivalents and restricted cash at end of period 2,243 2,853 2,243 2,853
Reportable Legal Entities | Parent Guarantor        
Cash flows from (used by) operating activities:        
Net income 190 202 302 357
Adjustments to reconcile net income to net cash from (used by) operating activities:        
Equity in income from subsidiaries (230) (211) (356) (383)
Dividends from subsidiaries     50 0
Amortization of fixed maturity securities discounts and premiums     0 0
Net investment (gains) losses 0 0 0 0
Charges assessed to policyholders     0 0
Acquisition costs deferred     0 0
Amortization of deferred acquisition costs and intangibles     0 0
Deferred income taxes     42 6
Trading securities, limited partnerships and derivative instruments     0 0
Stock-based compensation expense     15 14
Change in certain assets and liabilities:        
Accrued investment income and other assets     (1) (6)
Insurance reserves     0 0
Current tax liabilities     (27) (4)
Other liabilities, policy and contract claims and other policy-related balances     (15) (9)
Net cash from (used by) operating activities     10 (25)
Cash flows used by investing activities:        
Fixed maturity securities     0 0
Commercial mortgage loans     0 0
Restricted commercial mortgage loans related to securitization entities     0 0
Proceeds from sales of investments:        
Fixed maturity and equity securities     0 0
Purchases and originations of investments:        
Fixed maturity and equity securities     0 0
Commercial mortgage loans     0 0
Other invested assets, net     0 0
Policy loans, net     0 0
Intercompany notes receivable     0 0
Capital contributions to subsidiaries     (1) (7)
Payments for business purchased, net of cash acquired       (7)
Net cash used by investing activities     (1) (14)
Cash flows from (used by) financing activities:        
Deposits to universal life and investment contracts     0 0
Withdrawals from universal life and investment contracts     0 0
Proceeds from the issuance of long-term debt     0  
Repayment and repurchase of long-term debt     0  
Repayment of borrowings related to securitization entities     0 0
Repurchase of subsidiary shares     0  
Dividends paid to noncontrolling interests     0 0
Intercompany notes payable     (7) 40
Other, net     (2) (1)
Net cash from (used by) financing activities     (9) 39
Effect of exchange rate changes on cash, cash equivalents and restricted cash     0 0
Net change in cash, cash equivalents and restricted cash     0 0
Cash, cash equivalents and restricted cash at beginning of period     0 0
Cash, cash equivalents and restricted cash at end of period 0 0 0 0
Reportable Legal Entities | Issuer        
Cash flows from (used by) operating activities:        
Net income 92 99 95 185
Adjustments to reconcile net income to net cash from (used by) operating activities:        
Equity in income from subsidiaries (151) (145) (196) (268)
Dividends from subsidiaries     91 64
Amortization of fixed maturity securities discounts and premiums     3 3
Net investment (gains) losses 8 5 2 8
Charges assessed to policyholders     0 0
Acquisition costs deferred     0 0
Amortization of deferred acquisition costs and intangibles     0 0
Deferred income taxes     (117) (14)
Trading securities, limited partnerships and derivative instruments     22 1
Stock-based compensation expense     0 0
Change in certain assets and liabilities:        
Accrued investment income and other assets     59 (30)
Insurance reserves     0 0
Current tax liabilities     87 (88)
Other liabilities, policy and contract claims and other policy-related balances     (50) 64
Net cash from (used by) operating activities     (4) (75)
Cash flows used by investing activities:        
Fixed maturity securities     0 0
Commercial mortgage loans     0 0
Restricted commercial mortgage loans related to securitization entities     0 0
Proceeds from sales of investments:        
Fixed maturity and equity securities     0 0
Purchases and originations of investments:        
Fixed maturity and equity securities     0 (46)
Commercial mortgage loans     0 0
Other invested assets, net     0 0
Policy loans, net     0 0
Intercompany notes receivable     (10) (51)
Capital contributions to subsidiaries     0 0
Payments for business purchased, net of cash acquired       0
Net cash used by investing activities     (10) (97)
Cash flows from (used by) financing activities:        
Deposits to universal life and investment contracts     0 0
Withdrawals from universal life and investment contracts     0 0
Proceeds from the issuance of long-term debt     441  
Repayment and repurchase of long-term debt     (597)  
Repayment of borrowings related to securitization entities     0 0
Repurchase of subsidiary shares     0  
Dividends paid to noncontrolling interests     0 0
Intercompany notes payable     (59) (47)
Other, net     (19) (21)
Net cash from (used by) financing activities     (234) (68)
Effect of exchange rate changes on cash, cash equivalents and restricted cash     0 0
Net change in cash, cash equivalents and restricted cash     (248) (240)
Cash, cash equivalents and restricted cash at beginning of period     795 998
Cash, cash equivalents and restricted cash at end of period 547 758 547 758
Reportable Legal Entities | All Other Subsidiaries        
Cash flows from (used by) operating activities:        
Net income 348 326 569 596
Adjustments to reconcile net income to net cash from (used by) operating activities:        
Equity in income from subsidiaries 0 0 0 0
Dividends from subsidiaries     (141) (64)
Amortization of fixed maturity securities discounts and premiums     (65) (79)
Net investment (gains) losses 6 (106) 43 (143)
Charges assessed to policyholders     (359) (365)
Acquisition costs deferred     (40) (44)
Amortization of deferred acquisition costs and intangibles     216 233
Deferred income taxes     158 174
Trading securities, limited partnerships and derivative instruments     (217) 430
Stock-based compensation expense     1 4
Change in certain assets and liabilities:        
Accrued investment income and other assets     (147) 12
Insurance reserves     691 806
Current tax liabilities     (97) 60
Other liabilities, policy and contract claims and other policy-related balances     (49) (210)
Net cash from (used by) operating activities     563 1,410
Cash flows used by investing activities:        
Fixed maturity securities     1,979 2,358
Commercial mortgage loans     350 307
Restricted commercial mortgage loans related to securitization entities     16 11
Proceeds from sales of investments:        
Fixed maturity and equity securities     1,920 2,587
Purchases and originations of investments:        
Fixed maturity and equity securities     (4,082) (4,687)
Commercial mortgage loans     (489) (431)
Other invested assets, net     85 (640)
Policy loans, net     15 21
Intercompany notes receivable     58 47
Capital contributions to subsidiaries     1 7
Payments for business purchased, net of cash acquired       2
Net cash used by investing activities     (147) (418)
Cash flows from (used by) financing activities:        
Deposits to universal life and investment contracts     503 429
Withdrawals from universal life and investment contracts     (1,177) (1,091)
Proceeds from the issuance of long-term debt     0  
Repayment and repurchase of long-term debt     0  
Repayment of borrowings related to securitization entities     (12) (12)
Repurchase of subsidiary shares     (49)  
Dividends paid to noncontrolling interests     (50) (52)
Intercompany notes payable     18 11
Other, net     19 (7)
Net cash from (used by) financing activities     (748) (722)
Effect of exchange rate changes on cash, cash equivalents and restricted cash     (52) 39
Net change in cash, cash equivalents and restricted cash     (384) 309
Cash, cash equivalents and restricted cash at beginning of period     2,080 1,786
Cash, cash equivalents and restricted cash at end of period 1,696 2,095 1,696 2,095
Eliminations        
Cash flows from (used by) operating activities:        
Net income (381) (356) (552) (651)
Adjustments to reconcile net income to net cash from (used by) operating activities:        
Equity in income from subsidiaries 381 356 552 651
Dividends from subsidiaries     0 0
Amortization of fixed maturity securities discounts and premiums     0 0
Net investment (gains) losses 0 0 0 0
Charges assessed to policyholders     0 0
Acquisition costs deferred     0 0
Amortization of deferred acquisition costs and intangibles     0 0
Deferred income taxes     0 0
Trading securities, limited partnerships and derivative instruments     0 0
Stock-based compensation expense     0 0
Change in certain assets and liabilities:        
Accrued investment income and other assets     0 1
Insurance reserves     0 0
Current tax liabilities     0 0
Other liabilities, policy and contract claims and other policy-related balances     (8) (3)
Net cash from (used by) operating activities     (8) (2)
Cash flows used by investing activities:        
Fixed maturity securities     0 0
Commercial mortgage loans     0 0
Restricted commercial mortgage loans related to securitization entities     0 0
Proceeds from sales of investments:        
Fixed maturity and equity securities     0 0
Purchases and originations of investments:        
Fixed maturity and equity securities     0 0
Commercial mortgage loans     0 0
Other invested assets, net     8 2
Policy loans, net     0 0
Intercompany notes receivable     (48) 4
Capital contributions to subsidiaries     0 0
Payments for business purchased, net of cash acquired       0
Net cash used by investing activities     (40) 6
Cash flows from (used by) financing activities:        
Deposits to universal life and investment contracts     0 0
Withdrawals from universal life and investment contracts     0 0
Proceeds from the issuance of long-term debt     0  
Repayment and repurchase of long-term debt     0  
Repayment of borrowings related to securitization entities     0 0
Repurchase of subsidiary shares     0  
Dividends paid to noncontrolling interests     0 0
Intercompany notes payable     48 (4)
Other, net     0 0
Net cash from (used by) financing activities     48 (4)
Effect of exchange rate changes on cash, cash equivalents and restricted cash     0 0
Net change in cash, cash equivalents and restricted cash     0 0
Cash, cash equivalents and restricted cash at beginning of period     0 0
Cash, cash equivalents and restricted cash at end of period $ 0 $ 0 $ 0 $ 0
v3.10.0.1
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Condensed Financial Statements, Captions [Line Items]    
Amount of dividend our subsidiaries could pay in 2018 without obtaining regulatory approval   $ 500
Genworth Financial's Subsidiaries    
Condensed Financial Statements, Captions [Line Items]    
Restricted net assets $ 12,600  
Genworth Holdings' Subsidiaries    
Condensed Financial Statements, Captions [Line Items]    
Restricted net assets $ 11,900