GENWORTH FINANCIAL INC, 10-Q filed on 8/5/2021
Quarterly Report
v3.21.2
Cover Page - shares
6 Months Ended
Jun. 30, 2021
Jul. 27, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001276520  
Current Fiscal Year End Date --12-31  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2021  
Entity Registrant Name GENWORTH FINANCIAL, INC.  
Entity File Number 001-32195  
Entity Tax Identification Number 80-0873306  
Entity Incorporation, State or Country Code DE  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Address, Address Line One 6620 West Broad Street  
Entity Address, State or Province VA  
Entity Address, City or Town Richmond  
Entity Address, Postal Zip Code 23230  
Entity Interactive Data Current Yes  
City Area Code 804  
Local Phone Number 281-6000  
Trading Symbol GNW  
Security Exchange Name NYSE  
Title of 12(b) Security Class A Common Stock, par value $.001 per share  
Entity Common Stock, Shares Outstanding   507,385,834
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Assets    
Fixed maturity securities available-for-sale, at fair value (amortized cost of $53,111 and $53,417 and allowance for credit losses of $— and $4 as of June 30, 2021 and December 31, 2020, respectively) $ 61,649 $ 63,495
Equity securities, at fair value 147 386
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of June 30, 2021 and December 31, 2020) 6,912 6,774
Less: Allowance for credit losses (33) (31)
Commercial mortgage loans, net 6,879 6,743
Policy loans 2,083 1,978
Other invested assets 2,260 2,099
Total investments 73,018 74,701
Cash, cash equivalents and restricted cash 2,214 2,561
Accrued investment income 573 655
Deferred acquisition costs 1,212 1,487
Intangible assets 151 157
Reinsurance recoverable 16,716 16,864
Less: Allowance for credit losses (50) (45)
Reinsurance recoverable, net 16,666 16,819
Other assets 403 404
Deferred tax asset 211 65
Separate account assets 6,202 6,081
Assets related to discontinued operations 0 2,817
Total assets 100,650 105,747
Liabilities and equity    
Future policy benefits 42,165 42,695
Policyholder account balances 19,944 21,503
Liability for policy and contract claims 11,546 11,486
Unearned premiums 695 775
Other liabilities 1,664 1,614
Long-term borrowings 2,924 3,403
Separate account liabilities 6,202 6,081
Liabilities related to discontinued operations 346 2,370
Total liabilities 85,486 89,927
Commitments and contingencies
Equity:    
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 596 million and 594 million shares issued as of June 30, 2021 and December 31, 2020, respectively; 508 million and 506 million shares outstanding as of June 30, 2021 and December 31, 2020, respectively 1 1
Additional paid-in capital 12,018 12,008
Accumulated other comprehensive income (loss) 3,834 4,425
Retained earnings 2,011 1,584
Treasury stock, at cost (88 million shares as of June 30, 2021 and December 31, 2020) (2,700) (2,700)
Total Genworth Financial, Inc.'s stockholders' equity 15,164 15,318
Noncontrolling interests 0 502
Total equity 15,164 15,820
Total liabilities and equity $ 100,650 $ 105,747
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Debt securities amortized costs $ 53,111 $ 53,417
Debt securities allowance for credit losses 0 4
Unamortized balance of loan origination fees $ 4 $ 4
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 596,000,000 594,000,000
Class A common stock, shares outstanding 508,000,000 506,000,000
Treasury stock, shares 88,000,000 88,000,000
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Revenues:        
Premiums $ 947 $ 957 $ 1,915 $ 1,903
Net investment income 844 779 1,645 1,561
Net investment gains (losses) 70 93 103 (6)
Policy fees and other income 180 174 363 354
Total revenues 2,041 2,003 4,026 3,812
Benefits and expenses:        
Benefits and other changes in policy reserves 1,161 1,447 2,379 2,784
Interest credited 127 139 258 280
Acquisition and operating expenses, net of deferrals 304 210 579 447
Amortization of deferred acquisition costs and intangibles 86 87 163 195
Interest expense 43 42 94 93
Total benefits and expenses 1,721 1,925 3,473 3,799
Income from continuing operations before income taxes 320 78 553 13
Provision for income taxes 75 23 134 18
Income (loss) from continuing operations 245 55 419 (5)
Income (loss) from discontinued operations, net of taxes (5) (473) 16 (485)
Net income (loss) 240 (418) 435 (490)
Less: net income from continuing operations attributable to noncontrolling interests 0 0 0 0
Less: net income from discontinued operations attributable to noncontrolling interests 0 23 8 17
Net income (loss) available to Genworth Financial, Inc.'s common stockholders 240 (441) 427 (507)
Net income (loss) available to Genworth Financial, Inc.'s common stockholders:        
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders 245 55 419 (5)
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders (5) (496) 8 (502)
Net income (loss) available to Genworth Financial, Inc.'s common stockholders $ 240 $ (441) $ 427 $ (507)
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share:        
Basic $ 0.48 $ 0.11 $ 0.83 $ (0.01)
Diluted 0.47 0.11 0.82 (0.01)
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share:        
Basic [1] 0.47 (0.87) 0.84 (1.00)
Diluted $ 0.47 $ (0.86) $ 0.83 $ (1.00)
Weighted-average common shares outstanding:        
Basic 507.0 505.4 506.5 504.8
Diluted [2] 515.0 512.5 514.4 504.8
[1] May not total due to whole number calculation.
[2] Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.3 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, dilutive potential weighted-average common shares outstanding would have been 511.1 million.
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Net income (loss) $ 240 $ (418) $ 435 $ (490)
Other comprehensive income (loss), net of taxes:        
Net unrealized gains (losses) on securities without an allowance for credit losses (58) 682 (380) 362
Net unrealized gains (losses) on securities with an allowance for credit losses 4 (8) 6 (8)
Derivatives qualifying as hedges 211 (78) (208) 675
Foreign currency translation and other adjustments 2 73 138 (25)
Total other comprehensive income (loss) 159 669 (444) 1,004
Total comprehensive income (loss) 399 251 (9) 514
Less: comprehensive income attributable to noncontrolling interests 0 60 155 7
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders $ 399 $ 191 $ (164) $ 507
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Millions
Total
Cumulative effect of change in accounting, net of taxes
Common stock
Common stock
Cumulative effect of change in accounting, net of taxes
Additional paid-in capital
Additional paid-in capital
Cumulative effect of change in accounting, net of taxes
Accumulated other comprehensive income (loss)
Accumulated other comprehensive income (loss)
Cumulative effect of change in accounting, net of taxes
Retained earnings
Retained earnings
Cumulative effect of change in accounting, net of taxes
Treasury stock, at cost
Treasury stock, at cost
Cumulative effect of change in accounting, net of taxes
Total Genworth Financial, Inc.'s stockholders' equity
Total Genworth Financial, Inc.'s stockholders' equity
Cumulative effect of change in accounting, net of taxes
Noncontrolling interests
Noncontrolling interests
Cumulative effect of change in accounting, net of taxes
Balances, beginning at Dec. 31, 2019 $ 14,632 $ (55) $ 1 $ 0 $ 11,990 $ 0 $ 3,433 $ 0 $ 1,461 $ (55) $ (2,700) $ 0 $ 14,185 $ (55) $ 447 $ 0
Comprehensive income (loss):                                
Net income (490)   0   0   0   (507)   0   (507)   17  
Other comprehensive income (loss), net of taxes 1,004   0   0   1,014   0   0   1,014   (10)  
Total comprehensive income (loss) 514                       507   7  
Dividends to noncontrolling interests (9)   0   0   0   0   0   0   (9)  
Stock-based compensation expense and exercises and other 6   0   6   0   0   0   6   0  
Balances, ending at Jun. 30, 2020 15,088   1   11,996   4,447   899   (2,700)   14,643   445  
Balances, beginning at Mar. 31, 2020 14,834   1   11,993   3,815   1,340   (2,700)   14,449   385  
Comprehensive income (loss):                                
Net income (418)   0   0   0   (441)   0   (441)   23  
Other comprehensive income (loss), net of taxes 669   0   0   632   0   0   632   37  
Total comprehensive income (loss) 251                       191   60  
Stock-based compensation expense and exercises and other 3   0   3   0   0   0   3   0  
Balances, ending at Jun. 30, 2020 15,088   1   11,996   4,447   899   (2,700)   14,643   445  
Balances, beginning at Dec. 31, 2020 15,820   1   12,008   4,425   1,584   (2,700)   15,318   502  
Sale of business that included noncontrolling interests (657)   0   0   0   0   0   0   (657)  
Comprehensive income (loss):                                
Net income 435   0   0   0   427   0   427   8  
Other comprehensive income (loss), net of taxes (444)   0   0   (591)   0   0   (591)   147  
Total comprehensive income (loss) (9)                       (164)   155  
Stock-based compensation expense and exercises and other 10   0   10   0   0   0   10   0  
Balances, ending at Jun. 30, 2021 15,164   1   12,018   3,834   2,011   (2,700)   15,164   0  
Balances, beginning at Mar. 31, 2021 14,758   1   12,011   3,675   1,771   (2,700)   14,758   0  
Comprehensive income (loss):                                
Net income 240   0   0   0   240   0   240   0  
Other comprehensive income (loss), net of taxes 159   0   0   159   0   0   159   0  
Total comprehensive income (loss) 399                       399   0  
Stock-based compensation expense and exercises and other 7   0   7   0   0   0   7   0  
Balances, ending at Jun. 30, 2021 $ 15,164   $ 1   $ 12,018   $ 3,834   $ 2,011   $ (2,700)   $ 15,164   $ 0  
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Cash flows from operating activities:    
Net income (loss) $ 435 $ (490)
Less (income) loss from discontinued operations, net of taxes (16) 485
Adjustments to reconcile net income (loss) to net cash from operating activities:    
Amortization of fixed maturity securities discounts and premiums (80) (58)
Net investment (gains) losses (103) 6
Charges assessed to policyholders (317) (314)
Acquisition costs deferred (3) (3)
Amortization of deferred acquisition costs and intangibles 163 195
Deferred income taxes 132 16
Derivative instruments, limited partnerships and other (189) 196
Stock-based compensation expense 25 19
Change in certain assets and liabilities:    
Accrued investment income and other assets (69) (84)
Insurance reserves 507 674
Current tax liabilities (4) 2
Other liabilities, policy and contract claims and other policy-related balances (60) 736
Cash used by operating activities—discontinued operations (192) (81)
Net cash from operating activities 229 1,299
Cash flows from (used by) investing activities:    
Fixed maturity securities 2,220 1,616
Commercial mortgage loans 392 302
Other invested assets 107 71
Proceeds from sales of investments:    
Fixed maturity and equity securities 1,306 1,006
Purchases and originations of investments:    
Fixed maturity and equity securities (2,868) (3,336)
Commercial mortgage loans (531) (271)
Other invested assets (240) (236)
Short-term investments, net (76) (17)
Policy loans, net 28 10
Proceeds from sale of business, net of cash transferred 270 0
Cash used by investing activities—discontinued operations (67) (32)
Net cash from (used by) investing activities 541 (887)
Cash flows used by financing activities:    
Deposits to universal life and investment contracts 349 516
Withdrawals from universal life and investment contracts (1,143) (914)
Redemption of non-recourse funding obligations 0 (315)
Repayment and repurchase of long-term debt (484) (471)
Other, net 65 49
Cash used by financing activities—discontinued operations 0 (9)
Net cash used by financing activities (1,213) (1,144)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $(1) and $(6) related to discontinued operations) 1 (12)
Net change in cash, cash equivalents and restricted cash (442) (744)
Cash, cash equivalents and restricted cash at beginning of period 2,656 3,341
Cash, cash equivalents and restricted cash at end of period 2,214 2,597
Less cash, cash equivalents and restricted cash of discontinued operations at end of period 0 74
Cash, cash equivalents and restricted cash of continuing operations at end of period $ 2,214 $ 2,523
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Statement of Cash Flows [Abstract]    
Discontinued operations exchange rate effect $ (1) $ (6)
v3.21.2
Formation of Genworth and Basis of Presentation
6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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. upon the completion of the reorganization.
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.
Unless the context otherwise requires, references to “Genworth Financial,” “Genworth,” the “Company,” “we” or “our” in the accompanying unaudited condensed consolidated financial statements and the notes thereto are to Genworth Financial, Inc. on a consolidated basis.
We operate our business through the following three operating segments:
 
   
Enact (formerly known as U.S. Mortgage Insurance).
We offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans at specified coverage percentages (“primary mortgage insurance”). We also selectively enter into insurance transactions with lenders and investors, under which we insure a portfolio of loans at or after origination (“pool mortgage insurance”).
 
   
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 products which have not been actively sold since 2011, but we continue to service our existing blocks of business. These products primarily include variable annuity, variable life insurance and corporate-owned life insurance, as well as funding agreements.
In addition to our three 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 international mortgage insurance businesses and discontinued operations.
On March 3, 2021, we completed a sale of our entire ownership interest of approximately 52% in Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) through an underwritten agreement. We sold our approximately 214.3 million shares of Genworth Australia for AUD2.28 per share. Our Australian mortgage insurance business, previously the primary business in the Australia Mortgage Insurance segment, is reported as discontinued operations and its financial position, results of operations and cash flows are separately reported for all periods presented. All prior periods reflected herein have been re-presented on this basis. See note 13 for additional information.
 
 
Unless otherwise indicated, references to the condensed consolidated balance sheets, the condensed consolidated statements of income, the condensed consolidated statements of cash flows and the notes to the condensed consolidated financial statements, exclude amounts related to 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 2020 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation.
Each reporting period, we assess our ability to continue as a going concern for one year from the date the financial statements are issued. As of June 30, 2021, Genworth Holdings has $823 million of unrestricted cash, cash equivalents and liquid assets. Our evaluation of our ability to meet our financial obligations included the following contractual obligations due within one year from the issue date of our unaudited condensed consolidated financial statements included herein, as well as other conditions and events and their relative significance in relation to our ability to meet our obligations:
 
   
As of June 30, 2021, Genworth Holdings had outstanding $513 million of its 7.625% senior notes, excluding the note premium, that was originally scheduled to mature in September 2021. We are currently in compliance with the terms of our debt agreements, and interest payments on our remaining senior notes are forecasted to be approximately $60 million for the next twelve months. In July 2021, Genworth Holdings early redeemed its 7.625% senior notes with a cash payment of approximately $532 million, comprised of the outstanding principal balance, accrued interest and a make-whole premium. See note 8 for additional details on our long-term borrowings.
 
   
As part of the settlement agreement reached in July 2020 regarding the case titled
AXA S.A. v. Genworth Financial International Holdings, LLC et al.,
we issued a secured promissory note to AXA S.A. (“AXA”) that is due in September 2022. On March 3, 2021, we repaid the first installment payment to AXA and a portion of the second installment from cash proceeds received from the Genworth Australia sale. Over the next year, we expect to pay AXA approximately $10 million primarily consisting of interest on the remaining promissory note, assuming we do not make any additional prepayments, and a one-time payment associated with a tax gross up on underwriting losses related to a product sold by a distributor in our former lifestyle protection insurance business. See note 13 for additional details related to the sale of our former lifestyle protection insurance business and amounts recorded related to discontinued operations.
 
   
Genworth Holdings received intercompany cash tax payments from its subsidiaries during the six months ended June 30, 2021 generated primarily from taxable income. Additional intercompany cash tax payments are expected in future periods.
 
   
Until the secured promissory note to AXA is paid, annual dividends above $50 million from Enact Holdings, Inc. (“Enact Holdings”), formerly known as Genworth Mortgage Holdings, Inc., our wholly-owned U.S. mortgage insurance subsidiary, are subject to mandatory prepayment conditions.
 
 
We received net cash proceeds of $370 million from the sale of Genworth Australia in March 2021, of which $247
million was used to prepay a portion of the AXA promissory note, as noted above, including accrued interest. We believe Genworth Holdings’ current unrestricted cash, cash equivalents and liquid assets provide sufficient liquidity to meet our financial obligations and maintain business operations for one year from the date the financial statements are issued, based on relevant conditions and events that are known and reasonably estimable, including current cash and management actions in the normal course. Accordingly, we no longer need to determine whether our plans alleviate doubt about our ability to meet our financial commitments and obligations within the next year.
The remaining AXA promissory note, including expected future claims, is estimated to be $344 million and is due in September 2022. In addition, Genworth Holdings has $400 million of senior notes due in both August 2023 and February 2024. To help address these debt obligations beyond the next year and reduce our overall indebtedness, we are actively taking additional steps toward raising capital by preparing for a potential partial sale of Enact Holdings, subject to market conditions, as well as the satisfaction of various conditions and approvals.
The impact of the ongoing coronavirus pandemic (“COVID-19”) is very difficult to predict. Its related outcomes and impact on our business and the capital markets, and our ability to raise capital will depend on economic impacts from social, global and political influences as a result of the pandemic, and the shape of the economic recovery, among other factors and uncertainties. While these risks exist, we believe our current liquidity is sufficient to meet our obligations for one year following the issuance of our unaudited condensed consolidated financial statements.
v3.21.2
Accounting Changes
6 Months Ended
Jun. 30, 2021
Disclosue of Accounting Changes [Abstract]  
Accounting Changes
(2) Accounting Changes
Accounting Pronouncements Recently Adopted
On January 1, 2021, we adopted new accounting guidance related to simplifying the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. We adopted this new accounting guidance using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, which did not have a significant impact on our consolidated financial statements and disclosures.
Accounting Pronouncements Not Yet Adopted
In August 2018, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance that significantly changes the recognition and measurement of long-duration insurance contracts and expands disclosure requirements, which impacts our life insurance deferred acquisition costs (“DAC”) and liabilities. In accordance with the guidance, the more significant changes include:
 
   
assumptions will no longer be locked-in at contract inception and all cash flow assumptions used to estimate the liability for future policy benefits (except the discount rate) will be reviewed at least annually in the same period each year or more frequently if actual experience indicates a change is required. Changes will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up adjustment by recalculating the net premium ratio (which will be capped at 100%) using actual historical and updated future cash flow assumptions;
 
   
the discount rate used to determine the liability for future policy benefits will be a current upper-medium grade (low credit risk) fixed-income instrument yield, which is generally interpreted to mean a
 
 
 
single-A rated bond rate for the same duration, and is required to be reviewed quarterly, with changes in the discount rate recorded in other comprehensive income (loss);
 
   
the provision for adverse deviation and the premium deficiency test will be eliminated;
 
   
market risk benefits associated with deposit-type contracts will be measured at fair value with changes related to instrument-specific credit risk recorded in other comprehensive income (loss) and remaining changes recorded in net income (loss);
 
   
the amortization method for DAC will generally be on a straight-line basis over the expected contract term; and
 
   
disclosures will be greatly expanded to include significant assumptions and product liability rollforwards.
This guidance is effective for us on January 1, 2023 using the modified retrospective method (with transition adjustments as of January 1, 2021) for all topics except for market risk benefits, which is required to be applied using the retrospective method, with early adoption permitted, which we do not intend to elect. We are currently in process of developing a detailed implementation plan that will allow us to obtain necessary data, modify systems, identify and develop key inputs and establish policies, systems and internal controls that will be necessary to implement this new accounting guidance. Given the nature and extent of the changes to our operations, this guidance is expected to have a significant impact on our consolidated financial statements, and may significantly reduce our equity at transition.
 
v3.21.2
Earnings (Loss) Per Share
6 Months Ended
Jun. 30, 2021
Earnings (Loss) Per Share
 
(3) Earnings (Loss) Per Share
Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) 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)
  
    2021    
   
    2020    
   
    2021    
    
    2020    
 
Weighted-average shares used in basic earnings per share calculations
     507.0       505.4       506.5        504.8  
Potentially dilutive securities:
                                 
Stock options, restricted stock units and stock appreciation rights
     8.0       7.1       7.9        —    
    
 
 
   
 
 
   
 
 
    
 
 
 
Weighted-average shares used in diluted earnings per share calculations 
(1)
     515.0       512.5       514.4        504.8  
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from continuing operations:
                                 
Income (loss) from continuing operations
   $ 245     $ 55     $ 419      $ (5
Less: net income from continuing operations attributable to noncontrolling interests
     —         —         —          —    
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders
   $ 245     $ 55     $ 419      $ (5
    
 
 
   
 
 
   
 
 
    
 
 
 
Basic per share
   $ 0.48     $ 0.11     $ 0.83      $ (0.01
    
 
 
   
 
 
   
 
 
    
 
 
 
Diluted per share
   $ 0.47     $ 0.11     $ 0.82      $ (0.01
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from discontinued operations:
                                 
Income (loss) from discontinued operations, net of taxes
   $ (5   $ (473   $ 16      $ (485
Less: net income from discontinued operations attributable to noncontrolling interests
     —         23       8        17  
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders
   $ (5   $ (496   $ 8      $ (502
    
 
 
   
 
 
   
 
 
    
 
 
 
Basic per share
   $ (0.01   $ (0.98   $ 0.02      $ (0.99
    
 
 
   
 
 
   
 
 
    
 
 
 
Diluted per share
   $ (0.01   $ (0.97   $ 0.02      $ (0.99
    
 
 
   
 
 
   
 
 
    
 
 
 
Net income (loss):
                                 
Income (loss) from continuing operations
   $ 245     $ 55     $ 419      $ (5
Income (loss) from discontinued operations, net of taxes
     (5     (473     16        (485
    
 
 
   
 
 
   
 
 
    
 
 
 
Net income (loss)
     240       (418     435        (490
Less: net income attributable to noncontrolling interests
     —         23       8        17  
    
 
 
   
 
 
   
 
 
    
 
 
 
Net income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 240     $ (441   $ 427      $ (507
    
 
 
   
 
 
   
 
 
    
 
 
 
Basic per share 
(2)
   $ 0.47     $ (0.87   $ 0.84      $ (1.00
    
 
 
   
 
 
   
 
 
    
 
 
 
Diluted per share 
(2)
   $ 0.47     $ (0.86   $ 0.83      $ (1.00
    
 
 
   
 
 
   
 
 
    
 
 
 
 
(1)
 
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.3 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, dilutive potential weighted-average common shares outstanding would have been 511.1 million.
(2)
 
May not total due to whole number calculation.
 
v3.21.2
Investments
6 Months Ended
Jun. 30, 2021
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)
  
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Fixed maturity securities—taxable
   $ 608     $ 594     $ 1,207     $ 1,205  
Fixed maturity securities—non-taxable
     1       1       3       3  
Equity securities
     2       2       5       4  
Commercial mortgage loans
     103       84       181       169  
Policy loans
     40       49       90       98  
Other invested assets
     112       66       201       113  
Cash, cash equivalents, restricted cash and short-term investments
     —         4       —         14  
    
 
 
   
 
 
   
 
 
   
 
 
 
Gross investment income before expenses and fees
     866       800       1,687       1,606  
Expenses and fees
     (22     (21     (42     (45
    
 
 
   
 
 
   
 
 
   
 
 
 
Net investment income
   $ 844     $ 779     $ 1,645     $ 1,561  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
 
(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)
  
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Available-for-sale fixed maturity securities:
                                
Realized gains
   $ 5     $ 103     $ 12     $ 105  
Realized losses
     (4     (5     (7     (5
    
 
 
   
 
 
   
 
 
   
 
 
 
Net realized gains (losses) on available-for-sale fixed maturity securities
     1       98       5       100  
    
 
 
   
 
 
   
 
 
   
 
 
 
Net change in allowance for credit losses on available-for-sale fixed maturity securities
     (4     (7     (6     (7
Write-down of available-for-sale fixed maturity securities 
(1)
     —         —         (1     —    
Net realized gains (losses) on equity securities sold
     (2     —         (7     —    
Net unrealized gains (losses) on equity securities still held
     6       5       (2     (7
Limited partnerships
     65       37       102       (3
Commercial mortgage loans
     (1     1       (2     1  
Derivative instruments 
(2)
     4       (36     12       (84
Other
     1       (5     2       (6
    
 
 
   
 
 
   
 
 
   
 
 
 
Net investment gains (losses)
   $ 70     $ 93     $ 103     $ (6
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis.
(2)
 
See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).
See Note 2—Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements in our 2020 Annual Report on Form 10-K for a discussion of our policy for evaluating and measuring the allowance for credit losses related to our available-for-sale fixed maturity securities. The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the three months ended June 30, 2021:​​​​​​​
 
(Amounts in millions)
 
Beginning
balance
   
Increase from
securities
without
allowance in
previous
periods
   
Increase
(decrease)
from securities
with allowance
in previous
periods
   
Securities

sold
   
Decrease
due to change
in intent or
requirement
to sell
   
Write-offs
   
Recoveries
   
Ending
balance
 
Fixed maturity securities:
                                                               
Non-U.S. corporate
  $ 3     $ —       $ 4     $ (7   $ —       $ —       $ —       $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
  $ 3     $ —       $ 4     $ (7   $ —       $ —       $ —       $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the three and six months ended June 30, 2020:
 
(Amounts in millions)
 
Beginning
balance
   
Increase from
securities
without
allowance in
previous
periods
   
Increase
(decrease)
from securities
with allowance
in previous
periods
   
Securities
sold
   
Decrease
due to
change in
intent or
requirement
to sell
   
Write-
offs
   
Recoveries
   
Ending
balance
 
Fixed maturity securities:
                                                               
Non-U.S. corporate
  $ —       $ 4     $ —       $ —       $ —       $ —       $ —       $ 4  
Commercial mortgage-backed
    —         3       —         —         —         —         —         3  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
  $ —       $ 7     $ —       $ —       $ —       $ —       $ —       $ 7  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the six months ended June 30, 2021:
 
(Amounts in millions)
 
Beginning
balance
   
Increase from
securities
without
allowance in
previous
periods
   
Increase
(decrease)
from securities
with allowance
in previous
periods
   
Securities
sold
   
Decrease
due to change
in intent or
requirement
to sell
   
Write-

offs
   
Recoveries
   
Ending
balance
 
Fixed maturity securities:
                                                               
Non-U.S. corporate
  $ 1     $ —       $ 6     $ (7   $ —       $ —       $ —       $ —    
Commercial mortgage-backed
    3       —         —         —         —         (3     —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
  $ 4     $ —       $ 6     $ (7   $ —       $ (3   $ —       $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
(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, 2021
   
December 31, 2020
 
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses
(1)
   $ 8,538     $ 10,159  
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses
(1)
     —         (7
Adjustments to DAC, present value of future profits, sales inducements, benefit reserves and policyholder contract balances
     (6,169     (7,302
Income taxes, net
     (504     (611
    
 
 
   
 
 
 
Net unrealized investment gains (losses)
     1,865       2,239  
Less: net unrealized investment gains (losses) attributable to noncontrolling interests
     —         25  
    
 
 
   
 
 
 
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.
   $ 1,865     $ 2,214  
    
 
 
   
 
 
 
 
(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)
  
2021
   
2020
 
Beginning balance
   $ 1,919     $ 1,140  
Unrealized gains (losses) arising during the period:
                
Unrealized gains (losses) on fixed maturity securities
     1,774       3,911  
Adjustment to deferred acquisition costs
     42       (111
Adjustment to present value of future profits
     1       5  
Adjustment to sales inducements
     2       (34
Adjustment to benefit reserves
     (1,887     (2,802
Provision for income taxes
     14       (207
    
 
 
   
 
 
 
Change in unrealized gains (losses) on investment securities
     (54     762  
Reclassification adjustments to net investment (gains) losses, net of taxes of $—
 
and $24
     —         (88
    
 
 
   
 
 
 
Change in net unrealized investment gains (losses)
     (54     674  
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests
     —         3  
    
 
 
   
 
 
 
Ending balance
   $ 1,865     $ 1,811  
    
 
 
   
 
 
 
 
 
    
As of or for the
six months ended

June 30,
 
(Amounts in millions)
  
2021
   
2020
 
Beginning balance
   $ 2,214     $ 1,456  
Unrealized gains (losses) arising during the period:
                
Unrealized gains (losses) on fixed maturity securities
     (1,609     2,199  
Adjustment to deferred acquisition costs
     (132     57  
Adjustment to present value of future profits
     2       4  
Adjustment to sales inducements
     5       2  
Adjustment to benefit reserves
     1,258       (1,694
Provision for income taxes
     106       (120
    
 
 
   
 
 
 
Change in unrealized gains (losses) on investment securities
     (370     448  
Reclassification adjustments to net investment (gains) losses, net of taxes of $1 and $25
     (4     (94
    
 
 
   
 
 
 
Change in net unrealized investment gains (losses)
     (374     354  
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests
     (25     (1
    
 
 
   
 
 
 
Ending balance
   $ 1,865     $ 1,811  
    
 
 
   
 
 
 
Amounts reclassified out of accumulated other comprehensive income (loss) to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis.
 
 
(d) Fixed Maturity Securities
As of June 30, 2021, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows:
 
(Amounts in millions)
  
Amortized
cost or
cost
    
Gross
unrealized
gains
    
Gross
unrealized
losses
   
Allowance
for credit
losses
    
Fair

value
 
Fixed maturity securities:
                                           
U.S. government, agencies and government-sponsored enterprises
   $ 3,350      $ 1,135      $ (1   $ —        $ 4,484  
State and political subdivisions
     2,876        496        (1     —          3,371  
Non-U.S. government
     712        94        (4     —          802  
U.S. corporate:
                                           
Utilities
     4,276        820        (5     —          5,091  
Energy
     2,573        388        (9     —          2,952  
Finance and insurance
     7,895        1,107        (13     —          8,989  
Consumer—non-cyclical
     5,128        1,100        (4     —          6,224  
Technology and communications
     3,244        515        (5     —          3,754  
Industrial
     1,377        196        (1     —          1,572  
Capital goods
     2,424        447        (1     —          2,870  
Consumer—cyclical
     1,758        240        (4     —          1,994  
Transportation
     1,156        253        —         —          1,409  
Other
     394        40        —         —          434  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total U.S. corporate
     30,225        5,106        (42     —          35,289  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Non-U.S. corporate:
                                           
Utilities
     873        73        (1     —          945  
Energy
     1,189        210        —         —          1,399  
Finance and insurance
     2,108        298        (6     —          2,400  
Consumer—non-cyclical
     659        87        (1     —          745  
Technology and communications
     1,098        186        —         —          1,284  
Industrial
     1,003        138        (1     —          1,140  
Capital goods
     574        69        (1     —          642  
Consumer—cyclical
     325        29        (1     —          353  
Transportation
     467        74        —         —          541  
Other
     1,105        193        (3     —          1,295  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total non-U.S. corporate
     9,401        1,357        (14     —          10,744  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Residential mortgage-backed
     1,524        167        —         —          1,691  
Commercial mortgage-backed
     2,538        199        (3     —          2,734  
Other asset-backed
     2,485        50        (1     —          2,534  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total available-for-sale fixed maturity securities
   $ 53,111      $ 8,604      $ (66   $ —        $ 61,649  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
 
 
As of December 31, 2020, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows:
 
(Amounts in millions)
  
Amortized
cost or
cost
    
Gross
unrealized
gains
    
Gross
unrealized
losses
   
Allowance
for credit
losses
   
Fair
value
 
Fixed maturity securities:
                                          
U.S. government, agencies and government-sponsored enterprises
   $ 3,401      $ 1,404      $ —       $ —       $ 4,805  
State and political subdivisions
     2,622        544        (1     —         3,165  
Non-U.S. government
     728        130        (4     —         854  
U.S. corporate:
                                          
Utilities
     4,226        970        (2     —         5,194  
Energy
     2,532        367        (16     —         2,883  
Finance and insurance
     7,798        1,306        (2     —         9,102  
Consumer—non-cyclical
     5,115        1,323        (1     —         6,437  
Technology and communications
     3,142        619        —         —         3,761  
Industrial
     1,370        232        —         —         1,602  
Capital goods
     2,456        535        —         —         2,991  
Consumer—cyclical
     1,663        284        —         —         1,947  
Transportation
     1,198        304        (2     —         1,500  
Other
     395        45        —         —         440  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Total U.S. corporate
     29,895        5,985        (23     —         35,857  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                          
Utilities
     838        84        —         —         922  
Energy
     1,172        209        (1     —         1,380  
Finance and insurance
     2,130        353        (6     (1     2,476  
Consumer—non-cyclical
     662        112        (1     —         773  
Technology and communications
     1,062        229        —         —         1,291  
Industrial
     969        159        —         —         1,128  
Capital goods
     510        67        (1     —         576  
Consumer—cyclical
     331        41        (1     —         371  
Transportation
     483        88        (1     —         570  
Other
     1,088        236        —         —         1,324  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
     9,245        1,578        (11     (1     10,811  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
     1,698        211        —         —         1,909  
Commercial mortgage-backed
     2,759        231        (13     (3     2,974  
Other asset-backed
     3,069        55        (4     —         3,120  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
   $ 53,417      $ 10,138      $ (56   $ (4   $ 63,495  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
 
 
The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, 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, 2021:
 
   
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
  $ 30     $ (1     5     $ —       $ —         —       $ 30     $ (1     5  
State and political subdivisions
    100       (1     32       —         —         —         100       (1     32  
Non-U.S. government
    112       (3     22       18       (1     1       130       (4     23  
U.S. corporate
    1,482       (37     141       59       (5     8       1,541       (42     149  
Non-U.S. corporate
    434       (12     51       35       (2     7       469       (14     58  
Commercial mortgage-backed
    48       (1     6       53       (2     9       101       (3     15  
Other asset-backed
    280       (1     55       —         —         —         280       (1     55  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 2,486     $ (56     312     $ 165     $ (10     25     $ 2,651     $ (66     337  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% Below cost:
                                                                       
<20% Below cost
  $ 2,479     $ (53     311     $ 160     $ (8     24     $ 2,639     $ (61     335  
20%-50% Below cost
    7       (3     1       5       (2     1       12       (5     2  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 2,486     $ (56     312     $ 165     $ (10     25     $ 2,651     $ (66     337  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Investment grade
  $ 2,379     $ (50     293     $ 82     $ (4     15     $ 2,461     $ (54     308  
Below investment grade
    107       (6     19       83       (6     10       190       (12     29  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 2,486     $ (56     312     $ 165     $ (10     25     $ 2,651     $ (66     337  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses has not been recorded, 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, 2021:
 
   
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
  $ 82     $ (5     17     $ —       $ —         —       $ 82     $ (5     17  
Energy
    88       (4     10       59       (5     8       147       (9     18  
Finance and insurance
    540       (13     42       —         —         —         540       (13     42  
Consumer—non-cyclical
    202       (4     19       —         —         —         202       (4     19  
Technology and communications
    219       (5     22       —         —         —         219       (5     22  
Industrial
    67       (1     6       —         —         —         67       (1     6  
Capital goods
    95       (1     8       —         —         —         95       (1     8  
Consumer—cyclical
    189       (4     17       —         —         —         189       (4     17  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, U.S. corporate securities
    1,482       (37     141       59       (5     8       1,541       (42     149  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                       
Utilities
    42       (1     6       —         —         —         42       (1     6  
Finance and insurance
    271       (6     28       —         —         —         271       (6     28  
Consumer—non-cyclical
    —         —         —         6       (1     1       6       (1     1  
Technology and Industrial
    43       (1     4       —         —         —         43       (1     4  
Capital goods
    —         —         —         29       (1     6       29       (1     6  
Consumer—cyclical
    32       (1     8       —         —         —         32       (1     8  
Other
    46       (3     5       —         —         —         46       (3     5  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, non-U.S. corporate securities
    434       (12     51       35       (2     7       469       (14     58  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for corporate securities in an unrealized loss position
  $ 1,916     $ (49     192     $ 94     $ (7     15     $ 2,010     $ (56     207  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the tables above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the decline in fair value is largely due to recent market volatility and is not indicative of credit losses. The issuers continue to make timely principal and interest payments. For all securities in an unrealized loss position without an allowance for credit losses, 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 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 December 31, 2020:
 
   
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:
                                                                       
State and political subdivisions
  $ 28     $ (1     6     $ —       $ —         —       $ 28     $ (1     6  
Non-U.S. government
    44       (4     5       —         —         —         44       (4     5  
U.S. corporate
    345       (20     59       33       (3     4       378       (23     63  
Non-U.S. corporate
    145       (4     32       6       (1     1       151       (5     33  
Commercial mortgage-backed
    227       (11     34       1       (1     1       228       (12     35  
Other asset-backed
    238       (2     60       207       (2     48       445       (4     108  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 1,027     $ (42     196     $ 247     $ (7     54     $ 1,274     $ (49     250  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% Below cost:
                                                                       
<20% Below cost
  $ 1,017     $ (35     194     $ 246     $ (6     53     $ 1,263     $ (41     247  
20%-50% Below cost
    10       (7     2       1       (1     1       11       (8     3  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 1,027     $ (42     196     $ 247     $ (7     54     $ 1,274     $ (49     250  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Investment grade
  $ 852     $ (23     163     $ 207     $ (2     48     $ 1,059     $ (25     211  
Below investment grade
    175       (19     33       40       (5     6       215       (24     39  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 1,027     $ (42     196     $ 247     $ (7     54     $ 1,274     $ (49     250  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
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, 2020:
 
   
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
  $ 49     $ (2     9     $ —       $ —         —       $ 49     $ (2     9  
Energy
    106       (13     19       33       (3     4       139       (16     23  
Finance and insurance
    128       (2     15       —         —         —         128       (2     15  
Consumer—non-cyclical
    16       (1     5       —         —         —         16       (1     5  
Transportation
    46       (2     11       —         —         —         46       (2     11  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, U.S. corporate securities
    345       (20     59       33       (3     4       378       (23     63  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                       
Energy
    66       (1     10       —         —         —         66       (1     10  
Consumer—non-cyclical
    —         —         —         6       (1     1       6       (1     1  
Capital goods
    31       (1     8       —         —         —         31       (1     8  
Consumer—cyclical
    15       (1     6       —         —         —         15       (1     6  
Transportation
    33       (1     8       —         —         —         33       (1     8  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, non-U.S. corporate securities
    145       (4     32       6       (1     1       151       (5     33  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for corporate securities in an unrealized loss position
  $ 490     $ (24     91     $ 39     $ (4     5     $ 529     $ (28     96  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
The scheduled maturity distribution of fixed maturity securities as of June 30, 2021 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
   $ 1,268      $ 1,291  
Due after one year through five years
     8,367        9,030  
Due after five years through ten years
     13,587        15,158  
Due after ten years
     23,342        29,211  
    
 
 
    
 
 
 
Subtotal
     46,564        54,690  
Residential mortgage-backed
     1,524        1,691  
Commercial mortgage-backed
     2,538        2,734  
Other asset-backed
     2,485        2,534  
    
 
 
    
 
 
 
Total
   $ 53,111      $ 61,649  
    
 
 
    
 
 
 
 
 
As of June 30, 2021, securities issued by finance and insurance, consumer—non-cyclical, utilities and technology and communications industry groups represented approximately 25%, 15%, 13% and 11%, 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, 2021, 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 credit 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, 2021
   
December 31, 2020
 
(Amounts in millions)
  
Carrying
value
    
% of
total
   
Carrying
value
    
% of
total
 
Property type:
                                  
Retail
   $ 2,693        39   $ 2,442        36
Industrial
     1,558        23       1,638        24  
Office
     1,531        22       1,567        23  
Apartments
     573        8       529        8  
Mixed use
     298        4       286        4  
Other
     259        4       312        5  
    
 
 
    
 
 
   
 
 
    
 
 
 
Subtotal
     6,912        100     6,774        100
             
 
 
            
 
 
 
Allowance for credit losses
     (33              (31         
    
 
 
            
 
 
          
Total
   $ 6,879              $ 6,743           
    
 
 
            
 
 
          
 
 
    
June 30, 2021
   
December 31, 2020
 
(Amounts in millions)
  
Carrying
value
    
% of
total
   
Carrying
value
    
% of
total
 
Geographic region:
                                  
South Atlantic
   $ 1,788        26   $ 1,711        25
Pacific
     1,456        21       1,510        22  
Middle Atlantic
     988        14       994        15  
Mountain
     847        12       781        12  
West North Central
     466        7       467        7  
West South Central
     455        7       423        6  
East North Central
     447        6       441        6  
New England
     262        4       260        4  
East South Central
     203        3       187        3  
    
 
 
    
 
 
   
 
 
    
 
 
 
Subtotal
     6,912        100     6,774        100
             
 
 
            
 
 
 
Allowance for credit losses
     (33              (31         
    
 
 
            
 
 
          
Total
   $ 6,879              $ 6,743           
    
 
 
            
 
 
          
As of June 30, 2021 and December 31, 2020, all of our commercial mortgage loans were current. For a discussion of our policy related to placing commercial mortgage loans on non-accrual status, see Note 2—Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements in our 2020 Annual Report on Form 10-K. As of June 30, 2021 and December 31, 2020, we had no commercial mortgage loans on non-accrual status.
During the six months ended June 30, 2021 and the year ended December 31, 2020, we did not have any modifications or extensions that were considered troubled debt restructurings.
The following table sets forth the allowance for credit losses related to commercial mortgage loans as of or for the periods indicated:
 
    
Three months ended
June 30,
    
Six months ended
June 30,
 
(Amounts in millions)
  
    2021    
    
    2020    
    
    2021    
    
    2020    
 
Allowance for credit losses:
                                   
Beginning balance
   $ 32      $ 29      $ 31      $ 13  
Cumulative effect of change in accounting
     —          —          —          16  
Provision
     1        (1      2        (1
Write-offs
     —          —          —          —    
Recoveries
     —          —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Ending balance
   $ 33      $ 28      $ 33      $ 28  
    
 
 
    
 
 
    
 
 
    
 
 
 
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 debt-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 debt-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 debt-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 is not 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 commercial mortgage loans by year of origination and credit quality indicator as of June 30, 2021:
 
(Amounts in millions)
  
2021
    
2020
    
2019
    
2018
    
2017
    
2016 and
prior
    
Total
 
Debt-to-value:
                                                              
0% - 50%
   $ 7      $ 59      $ 25      $ 102      $ 157      $ 2,151      $ 2,501  
51% - 60%
     19        51        88        344        236        810        1,548  
61% - 75%
     503        426        649        504        273        508        2,863  
76% - 100%
     —          —          —          —          —          —          —    
Greater than 100%
     —          —          —          —          —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total amortized cost
   $ 529      $ 536      $ 762      $ 950      $ 666      $ 3,469      $ 6,912  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Debt service coverage ratio:
                                                              
Less than 1.00
   $ —        $ —        $ 8      $ 27      $ 12      $ 131      $ 178  
1.00 - 1.25
     3        52        67        53        42        283        500  
1.26 - 1.50
     91        81        230        200        57        383        1,042  
1.51 - 2.00
     385        281        289        441        302        1,153        2,851  
Greater than 2.00
     50        122        168        229        253        1,519        2,341  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total amortized cost
   $ 529      $ 536      $ 762      $ 950      $ 666      $ 3,469      $ 6,912  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
 
 
The following tables set forth the debt-to-value of commercial mortgage loans by property type as of the dates indicated:
 
    
June 30, 2021
 
(Amounts in millions)
  
0% - 50%
   
51% - 60%
   
61% - 75%
   
76% - 100%
   
Greater
than 100%
   
Total
 
Property type:
                                                
Retail
   $ 920     $ 605     $ 1,168     $ —       $ —       $ 2,693  
Industrial
     716       324       518       —         —         1,558  
Office
     468       452       611       —         —         1,531  
Apartments
     225       77       271       —         —         573  
Mixed use
     112       33       153       —         —         298  
Other
     60       57       142       —         —         259  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 2,501     $ 1,548     $ 2,863     $ —       $ —       $ 6,912  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     36     22     42     —       —       100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt service coverage ratio
     2.39       1.84       1.62       —         —         1.96  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
    
December 31, 2020
 
(Amounts in millions)
  
0% - 50%
   
51% - 60%
   
61% - 75%
   
76% - 100%
   
Greater
than 100%
   
Total
 
Property type:
                                                
Retail
   $ 913     $ 639     $ 859     $ 29     $ 2     $ 2,442  
Industrial
     798       351       456       33       —         1,638  
Office
     523       431       595       18       —         1,567  
Apartments
     199       86       238       6       —         529  
Mixed use
     112       47       127       —         —         286  
Other
     100       74       121       17       —         312  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 2,645     $ 1,628     $ 2,396     $ 103     $ 2     $ 6,774  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     39     24     35     2     —       100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt service coverage ratio
     2.40       1.83       1.61       1.49       0.64       1.97  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
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, 2021
 
(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
   $ 51     $ 163     $ 529     $ 1,190     $ 760     $ 2,693  
Industrial
     20       78       136       597       727       1,558  
Office
     70       90       169       658       544       1,531  
Apartments
     8       22       126       250       167       573  
Mixed use
     5       23       45       128       97       298  
Other
     24       124       37       28       46       259  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 178     $ 500     $ 1,042     $ 2,851     $ 2,341     $ 6,912  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     3     7     15     41     34     100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt-to-value
     58     61     62     59     44     54
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
    
December 31, 2020
 
(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
   $ 55     $ 169     $ 483     $ 969     $ 766     $ 2,442  
Industrial
     21       85       143       616       773       1,638  
Office
     101       99       170       634       563       1,567  
Apartments
     9       24       126       228       142       529  
Mixed use
     5       24       29       115       113       286  
Other
     25       125       41       28       93       312  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 216     $ 526     $ 992     $ 2,590     $ 2,450     $ 6,774  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     3     8     15     38     36     100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt-to-value
     57     62     62     57     44     53
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
(f) 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. However, for limited partnerships measured at fair value, we consider whether an adjustment to the estimated fair value is necessary when the measurement date is not aligned with our reporting date.
Investments in limited 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, 2021 and
 
 
December 31, 2020, the total carrying value of these investments was $1,306 million and $1,018 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.
v3.21.2
Derivative Instruments
6 Months Ended
Jun. 30, 2021
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 some 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 cash flow hedges.
The following table sets forth our positions in derivative instruments as of the dates indicated:
 
   
Derivative assets
   
Derivative liabilities
 
   
Balance sheet
classification
 
Fair value
   
Balance sheet
classification
 
Fair value
 
(Amounts in millions)
 
June 30,
2021
   
December 31,
2020
   
June 30,
2021
   
December 31,
2020
 
Derivatives designated as hedges
                                       
Cash flow hedges:
                                       
Interest rate swaps
  Other invested assets   $ 280     $ 468     Other liabilities   $ 53     $ 23  
Foreign currency swaps
  Other invested assets     2       1     Other liabilities     2       2  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total cash flow hedges
        282       469           55       25  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total derivatives designated as hedges
        282       469           55       25  
       
 
 
   
 
 
       
 
 
   
 
 
 
Derivatives not designated as hedges
                                       
Equity index options
  Other invested assets     47       63     Other liabilities     —         —    
Financial futures
  Other invested assets     —         —       Other liabilities     —         —    
Other foreign currency contracts
  Other invested assets     24       42     Other liabilities     —         1  
GMWB embedded derivatives
  Reinsurance recoverable
(1)
    18       26     Policyholder account balances 
(2)
    275       379  
Fixed index annuity embedded derivatives
  Other assets     —         —       Policyholder account balances
(3)
    339       399  
Indexed universal life embedded derivatives
  Reinsurance recoverable     —         —       Policyholder account balances
(4)
    24       26  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total derivatives not designated as hedges
        89       131           638       805  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total derivatives
      $ 371     $ 600         $ 693     $ 830  
       
 
 
   
 
 
       
 
 
   
 
 
 
 
(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 embedded derivatives, 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,
2020
    
Additions
    
Maturities/
terminations
   
June 30,
2021
 
Derivatives designated as hedges
                                           
Cash flow hedges:
                                           
Interest rate swaps
     Notional      $ 8,178      $ —        $ (405   $ 7,773  
Foreign currency swaps
     Notional        127        —          —         127  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total cash flow hedges
              8,305        —          (405     7,900  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total derivatives designated as hedges
              8,305        —          (405     7,900  
             
 
 
    
 
 
    
 
 
   
 
 
 
Derivatives not designated as hedges
                                           
Interest rate swaps
     Notional        4,674        —          (4,674     —    
Equity index options
     Notional        2,000        614        (803     1,811  
Financial futures
     Notional        1,104        1,972        (2,116     960  
Other foreign currency contracts
     Notional        1,186        22        (536     672  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total derivatives not designated as hedges
              8,964        2,608        (8,129     3,443  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total derivatives
            $ 17,269      $ 2,608      $ (8,534   $ 11,343  
             
 
 
    
 
 
    
 
 
   
 
 
 
 
(Number of policies)
  
Measurement
    
December 31,
2020
    
Additions
    
Maturities/
terminations
   
June 30,
2021
 
Derivatives not designated as hedges
                                           
GMWB embedded derivatives
     Policies          23,713        —          (982     22,731  
Fixed index annuity embedded derivatives
     Policies        12,778        —            (1,944       10,834  
Indexed universal life embedded derivatives
     Policies        842        —          (22     820  
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 other comprehensive income (loss) (“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; and (v) other instruments to hedge the cash flows of various forecasted transactions.
 
 
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2021:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ 314     $ 52     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    (8     —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    3       —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ 309     $ 52         $ —        
   
 
 
   
 
 
       
 
 
     
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2020:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ (57   $ 46     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    1       —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    (4     —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ (60   $ 46         $ —        
   
 
 
   
 
 
       
 
 
     
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2021:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ (215   $ 104     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    36       —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    1       —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ (178   $ 104         $ —        
   
 
 
   
 
 
       
 
 
     
 
 
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2020:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ 984     $ 89     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging assets
    —         4     Net investment gains (losses)     —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    (62     —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    13       —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ 935     $ 93         $ —        
   
 
 
   
 
 
       
 
 
     
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)
  
2021
   
2020
 
Derivatives qualifying as effective accounting hedges as of April 1
   $ 1,792     $ 2,755  
Current period increases (decreases) in fair value, net of deferred taxes of $(64) and $12
     245       (48
Reclassification to net (income) loss, net of deferred taxes of $18 and $16
     (34     (30
    
 
 
   
 
 
 
Derivatives qualifying as effective accounting hedges as of June 30
   $ 2,003     $ 2,677  
    
 
 
   
 
 
 
 
    
Six months ended
June 30,
 
(Amounts in millions)
  
2021
   
2020
 
Derivatives qualifying as effective accounting hedges as of January 1
   $ 2,211     $ 2,002  
Current period increases (decreases) in fair value, net of deferred taxes of $38 and $(200)
     (140     735  
Reclassification to net (income) loss, net of deferred taxes of $36 and $33
     (68     (60
    
 
 
   
 
 
 
Derivatives qualifying as effective accounting hedges as of June 30
   $ 2,003     $ 2,677  
    
 
 
   
 
 
 
The total of derivatives designated as cash flow hedges of $2,003 million, net of taxes, recorded in stockholders’ equity as of June 30, 2021 is expected to be reclassified to net income (loss) 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, $138 million, net of taxes, is expected to be reclassified to net income (loss) 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, 2021 and 2020, we reclassified $4 million and $1 million, respectively, to net income (loss) 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) 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; and (iii) foreign currency options and forward contracts to mitigate currency risk associated with future dividends, cash payments to AXA under a promissory note reported as discontinued operations and/or other cash flows from certain foreign subsidiaries to our holding company. 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 insurance products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives.
The following table provides the pre-tax gain (loss) recognized in net income (loss) 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 (loss)
(Amounts in millions)
  
        2021        
   
        2020        
 
Interest rate swaps
   $ (1   $ (2   Net investment gains (losses)
Equity index options
     6       4     Net investment gains (losses)
Financial futures
     8       (123   Net investment gains (losses)
Other foreign currency contracts
     —         (2   Net investment gains (losses)
GMWB embedded derivatives
     2       129     Net investment gains (losses)
Fixed index annuity embedded derivatives
     (14     (45   Net investment gains (losses)
Indexed universal life embedded derivatives
     3       3     Net investment gains (losses)
    
 
 
   
 
 
     
Total derivatives not designated as hedges
   $ 4     $ (36    
    
 
 
   
 
 
     
 
    
Six months ended June 30,
   
Classification of gain (loss)
recognized
in net income (loss)
(Amounts in millions)
  
        2021        
   
        2020        
 
Interest rate swaps
   $ 3     $ (12   Net investment gains (losses)
Equity index options
     9       (9   Net investment gains (losses)
Financial futures
     (102     138     Net investment gains (losses)
Other foreign currency contracts
     —         8     Net investment gains (losses)
GMWB embedded derivatives
     107       (207   Net investment gains (losses)
Fixed index annuity embedded derivatives
     (18     (13   Net investment gains (losses)
Indexed universal life embedded derivatives
     13       7     Net investment gains (losses)
    
 
 
   
 
 
     
Total derivatives not designated as hedges
   $ 12     $ (88    
    
 
 
   
 
 
     
 
 
Derivative Counterparty Credit Risk
Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. 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, 2021
   
December 31, 2020
 
(Amounts in millions)
 
Derivative
assets
(1)
   
Derivative
liabilities 
(1)
   
Net
derivatives
   
Derivative
assets
(1)
   
Derivative
liabilities 
(1)
   
Net
derivatives
 
Amounts presented in the balance sheet:
                                               
Gross amounts recognized
  $ 353     $ 55     $ 298     $ 574     $ 26     $ 548  
Gross amounts offset in the balance sheet
    —         —         —         —         —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net amounts presented in the balance sheet
    353       55       298       574       26       548  
Gross amounts not offset in the balance sheet:
                                               
Financial instruments
(2)
    (42     (42     —         (20     (20     —    
Collateral received
    (238     —         (238     (401     —         (401
Collateral pledged
    —         (625     625       —         (505     505  
Over collateralization
    3       612       (609     2       499       (497
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net amount
  $ 76     $ —       $ 76     $ 155     $ —       $ 155  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Does not include amounts related to embedded derivatives as of June 30, 2021 and December 31, 2020.
(2)
 
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.
v3.21.2
Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2021
Fair Value of Financial Instruments
(6) Fair Value of Financial Instruments
Recurring Fair Value Measurements
We have fixed maturity securities, 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.
Fixed maturity, short-term investments and equity securities
The fair value of fixed maturity securities, 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, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) 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.
Further, 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.
In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, 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 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 similar securities are not readily observable and these securities are not typically valued by pricing services.
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.
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 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. 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. 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 or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of June 30, 2021.
For remaining securities priced using internal models, we determine fair value using an income approach. 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.
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 pricing
 
 
services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.
A summary of the inputs used for our fixed maturity securities, 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.
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, 90% of our portfolio was priced using third-party pricing services as of June 30, 2021. 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 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 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 pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2021:
 
(Amounts in millions)
 
Fair value
   
Primary methodologies
 
Significant inputs
U.S. government, agencies andgovernment-sponsored enterprises
  $ 4,484     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
  $ 3,296     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
  $ 802     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
  $ 31,509     Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, 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
  $ 8,510     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
  $ 1,678     OAS-based 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
  $ 2,714    
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
  $ 2,446     Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers   Spreads to daily updated swap 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 U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities was $1,578 million and $872 million, respectively, as of June 30, 2021. 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 pricing services.
Short-term investments
The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by pricing services.
Level 3 measurements
Fixed maturity securities
 
   
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 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 $336 million as of June 30, 2021.
 
   
Internal models:
A portion of our state and political subdivisions, 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 the interest rate yield curve, as well as published credit spreads for similar securities, which includes significant unobservable inputs. 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 $3,424 million as of June 30, 2021.
 
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.
Net asset value
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”) from the underlying fund statements as a practical expedient for fair value.
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.
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.
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 observable inputs, and results in the derivative being classified as Level 2.
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. 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 of June 30, 2021, a significant increase (decrease) in the equity index volatility discussed above would have resulted in a significantly higher (lower) fair value measurement.
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.
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 and time value component associated with the
optionality in the derivative, which are generally considered observable inputs and results in the derivative being classified as Level 2. 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.
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. We determine fair value using an internal model based on the various inputs noted above.
Non-performance risk is integrated into the discount rate used to value GMWB liabilities. 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, 2021 and December 31, 2020, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $52 million and $66 million, respectively.
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. As of June 30, 2021, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement.
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. As of June 30, 2021, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement.
Indexed universal life embedded derivatives
We have indexed universal life insurance 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. As of June 30, 2021, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement.
 
 
The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the date
s
 indicated:
 
    
June 30, 2021
 
(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
   $ 4,484      $ —        $ 4,484      $ —        $ —    
State and political subdivisions
     3,371        —          3,296        75        —    
Non-U.S. government
     802        —          802        —          —    
U.S. corporate:
                                            
Utilities
     5,091        —          4,249        842        —    
Energy
     2,952        —          2,875        77        —    
Finance and insurance
     8,989        —          8,328        661        —    
Consumer—non-cyclical
     6,224        —          6,115        109        —    
Technology and communications
     3,754        —          3,724        30        —    
Industrial
     1,572        —          1,552        20        —    
Capital goods
     2,870        —          2,811        59        —    
Consumer—cyclical
     1,994        —          1,855        139        —    
Transportation
     1,409        —          1,342        67        —    
Other
     434        —          236        198        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total U.S. corporate
     35,289        —          33,087        2,202        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Non-U.S. corporate:
                                            
Utilities
     945        —          597        348        —    
Energy
     1,399        —          1,247        152        —    
Finance and insurance
     2,400        —          2,198        202        —    
Consumer—non-cyclical
     745        —          671        74        —    
Technology and communications
     1,284        —          1,256        28        —    
Industrial
     1,140        —          1,046        94        —    
Capital goods
     642        —          461        181        —    
Consumer—cyclical
     353        —          206        147        —    
Transportation
     541        —          458        83        —    
Other
     1,295        —          1,242        53        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total non-U.S. corporate
     10,744        —          9,382        1,362        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Residential mortgage-backed
     1,691        —          1,678        13        —    
Commercial mortgage-backed
     2,734        —          2,714        20        —    
Other asset-backed
     2,534        —          2,446        88        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total fixed maturity securities
     61,649        —          57,889        3,760        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Equity securities
     147        48        61        38        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Other invested assets:
                                            
Derivative assets:
                                            
Interest rate swaps
     280        —          280        —          —    
Foreign currency swaps
     2        —          2        —          —    
Equity index options
     47        —          —          47        —    
Other foreign currency contracts
     24        —          24        —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative assets
     353        —          306        47        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Securities lending collateral
     105        —          105        —          —    
Short-term investments
     121        —          121        —          —    
Limited partnerships
     1,070        —          —          —          1,070  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total other invested assets
     1,649        —          532        47        1,070  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Reinsurance recoverable
(2)
     18        —          —          18        —    
Separate account assets
     6,202        6,202        —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total assets
   $ 69,665      $ 6,250      $ 58,482      $ 3,863      $ 1,070  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Limited partnerships that are measured at fair value using the NAV 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, 2020
 
(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
   $ 4,805      $ —        $ 4,805      $ —        $ —    
State and political subdivisions
     3,165        —          3,099        66        —    
Non-U.S. government
     854        —          854        —          —    
U.S. corporate:
                                            
Utilities
     5,194        —          4,352        842        —    
Energy
     2,883        —          2,755        128        —    
Finance and insurance
     9,102        —          8,495        607        —    
Consumer—non-cyclical
     6,437        —          6,328        109        —    
Technology and communications
     3,761        —          3,714        47        —    
Industrial
     1,602        —          1,562        40        —    
Capital goods
     2,991        —          2,931        60        —    
Consumer—cyclical
     1,947        —          1,797        150        —    
Transportation
     1,500        —          1,430        70        —    
Other
     440        —          221        219        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total U.S. corporate
     35,857        —          33,585        2,272        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Non-U.S. corporate:
                                            
Utilities
     922        —          570        352        —    
Energy
     1,380        —          1,135        245        —    
Finance and insurance
     2,476        —          2,171        305        —    
Consumer—non-cyclical
     773        —          706        67        —    
Technology and communications
     1,291        —          1,263        28        —    
Industrial
     1,128        —          1,033        95        —    
Capital goods
     576        —          398        178        —    
Consumer—cyclical
     371        —          225        146        —    
Transportation
     570        —          461        109        —    
Other
     1,324        —          1,241        83        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total non-U.S. corporate
     10,811        —          9,203        1,608        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Residential mortgage-backed
     1,909        —          1,895        14        —    
Commercial mortgage-backed
     2,974        —          2,954        20        —    
Other asset-backed
     3,120        —          3,011        109        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total fixed maturity securities
     63,495        —          59,406        4,089        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Equity securities
     386        276        59        51        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Other invested assets:
                                            
Derivative assets:
                                            
Interest rate swaps
     468        —          468        —          —    
Foreign currency swaps
     1        —          1        —          —    
Equity index options
     63        —          —          63        —    
Other foreign currency contracts
     42        —          42        —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative assets
     574        —          511        63        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Securities lending collateral
     67        —          67        —          —    
Short-term investments
     45        25        20        —          —    
Limited partnerships
     835        —          —          —          835  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total other invested assets
     1,521        25        598        63        835  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Reinsurance recoverable
(2)
     26        —          —          26        —    
Separate account assets
     6,081        6,081        —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total assets
   $ 71,509      $ 6,382      $ 60,063      $ 4,229      $ 835  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Limited partnerships that are measured at fair value using the NAV 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.
 
 
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,
2021
   
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,
2021
   
Total gains
(losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 68     $ 1     $ 6     $ —       $ —       $ —       $ —       $ —       $ —       $ 75     $ 1     $ 6  
U.S. corporate:
                                                                                               
Utilities
    793       —         23       8       —         —         (1     19       —         842       —         23  
Energy
    122       —         8       —         —         —         (1     —         (52     77       —         4  
Finance and insurance
    597       —         17       55       —         —         (8     —         —         661       —         17  
Consumer—non-cyclical
    106       —         2       —         —         —         (2     3       —         109       —         1  
Technology and communications
    40       —         2       —         —         —         —         —         (12     30       —         1  
Industrial
    20       —         —         —         —         —         —         —         —         20       —         —    
Capital goods
    58       —         1       —         —         —         —         —         —         59       —         1  
Consumer—cyclical
    147       —         1       —         —         —         (1     —         (8     139       —         1  
Transportation
    67       —         1       —         —         —         (1     —         —         67       —         1  
Other
    200       —         —         —         —         —         (2     —         —         198       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,150       —         55       63       —         —         (16     22       (72     2,202       —         50  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    375       —         5       —         —         —         (8     —         (24     348       —         4  
Energy
    243       —         10       —         —         —         (22     —         (79     152       —         5  
Finance and insurance
    290       —         17       —         (2     —         (52     —         (51     202       1       5  
Consumer—non-cyclical
    66       —         —         8       —         —         —         —         —         74       —         —    
Technology and communications
    28       —         —         —         —         —         —         —         —         28       —         —    
Industrial
    93       —         1       —         —         —         —         —         —         94       —         1  
Capital goods
    175       —         1       5       —         —         —         —         —         181       —         2  
Consumer—cyclical
    144       —         2       1       —         —         —         —         —         147       —         2  
Transportation
    82       —         1       —         —         —         —         —         —         83       —         2  
Other
    80       —         1       —         —         —         (13     —         (15     53       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,576       —         38       14       (2     —         (95     —         (169     1,362       1       22  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    13       —         1       —         —         —         (1     —         —         13       —         —    
Commercial mortgage-backed
    19       —         —         1       —         —         —         —         —         20       —         1  
Other asset-backed
    96       —         1       —         —         —         (5     —         (4     88       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    3,922       1       101       78       (2     —         (117     22       (245     3,760       2       80  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    43       —         —         —         —         —         (5     —         —         38       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    53       6       —         5       —         —         (17     —         —         47       2       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    53       6       —         5       —         —         (17     —         —         47       2       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    53       6       —         5       —         —         (17     —         —         47       2       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    18       (1     —         —         —         1       —         —         —         18       (1     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 4,036     $ 6     $ 101     $ 83     $ (2   $ 1     $ (139   $ 22     $ (245   $ 3,863     $ 3     $ 80  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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,
2020
   
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,
2020
   
Total gains (losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 83     $ —       $ 7     $ —       $ —       $ —       $ —       $ —       $ (27   $ 63     $ 1     $ 6  
Non-U.S. government
    1       —         —         —         —         —         (1     —         —         —         —         —    
U.S. corporate:
                                                                                               
Utilities
    843       —         37       32       —         —         (2     26       —         936       —         37  
Energy
    124       1       13       —         —         —         (2     —         (13     123       —         9  
Finance and insurance
    510       —         33       21       —         —         (12     —         (1     551       —         33  
Consumer—non-cyclical
    88       —         8       8       —         —         (1     —         —         103       —         8  
Technology and communications
    61       —         5       —         —         —         —         —         —         66       —         5  
Industrial
    37       —         2       —         —         —         —         —         —         39       —         2  
Capital goods
    90       —         7       —         —         —         —         —         —         97       —         7  
Consumer—cyclical
    179       —         11       —         —         —         (1     9       —         198       —         11  
Transportation
    43       —         2       —         —         —         (1     10       —         54       —         2  
Other
    138       —         2       —         —         —         (2     27       —         165       —         2  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,113       1       120       61       —         —         (21     72       (14     2,332       —         116  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    355       —         23       1       —         —         —         —         (22     357       —         23  
Energy
    236       —         22       —         —         —         (26     5       —         237       —         22  
Finance and insurance
    223       1       50       —         —         —         —         37       —         311       1       49  
Consumer—non-cyclical
    58       —         5       —         —         —         —         —         (9     54       —         4  
Technology and communications
    27       —         1       —         —         —         —         —         —         28       —         1  
Industrial
    92       —         8       —         —         —         —         —         (8     92       —         7  
Capital goods
    135       —         9       —         —         —         —         29       —         173       —         9  
Consumer—cyclical
    164       —         12       —         —         —         (3     —         (17     156       —         11  
Transportation
    108       —         11       —         —         —         —         22       —         141       —         11  
Other
    131       —         9       5       —         —         —         —         —         145       —         9  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,529       1       150       6       —         —         (29     93       (56     1,694       1       146  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    24       —         1       —         —         —         (1     3       (3     24       —         —    
Commercial mortgage-backed
    —         —         1       —         —         —         —         20       —         21       —         1  
Other asset-backed
    87       —         2       2       —         —         (1     —         —         90       —         3  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    3,837       2       281       69       —         —         (53     188       (100     4,224       2       272  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    50       —         —         6       (3     —         —         —         —         53       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    62       4       —         7       —         —         (7     —         —         66       8       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    62       4       —         7       —         —         (7     —         —         66       8       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    62       4       —         7       —         —         (7     —         —         66       8       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    47       (9     —         —         —         —         —         —         —         38       (9     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 3,996     $ (3   $ 281     $ 82     $ (3   $ —       $ (60   $ 188     $ (100   $ 4,381     $ 1     $ 272  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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,
2021
   
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,
2021
   
Total gains (losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 66     $ 2     $ 7     $ —       $ —       $ —       $ —       $ —       $ —       $ 75     $ 2     $ 7  
U.S. corporate:
                                                                                               
Utilities
    842       —         (7     16       —         —         (14     19       (14     842       —         (6
Energy
    128       —         4       —         —         —         (3     —         (52     77       —         —    
Finance and insurance
    607       —         (5     73       —         —         (25     17       (6     661       —         (5
Consumer—non-cyclical
    109       —         (1     —         —         —         (2     3       —         109       —         (2
Technology and communications
    47       —         —         12       —         —         —         4       (33     30       —         (1
Industrial
    40       —         —         —         —         —         (20     —         —         20       —         —    
Capital goods
    60       —         (1     —         —         —         —         —         —         59       —         (1
Consumer—cyclical
    150       —         (1     —         —         —         (2     —         (8     139       —         (1
Transportation
    70       —         —         —         —         —         (3     —         —         67       —         —    
Other
    219       —         (2     —         —         —         (5     6       (20     198       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,272       —         (13     101       —         —         (74     49       (133     2,202       —         (16
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    352       —         (2     30       —         —         (8     —         (24     348       —         (3
Energy
    245       —         8       —         —         —         (22     —         (79     152       —         3  
Finance and insurance
    305       1       1       —         (2     —         (52     —         (51     202       2       (11
Consumer—non-cyclical
    67       —         (1     8       —         —         —         —         —         74       —         (1
Technology and communications
    28       —         —         —         —         —         —         —         —         28       —         —    
Industrial
    95       —         (1     —         —         —         —         —         —         94       —         (1
Capital goods
    178       —         (2     5       —         —         —         —         —         181       —         (1
Consumer—cyclical
    146       —         —         17       —         —         —         —         (16     147       —         —    
Transportation
    109       —         —         —         —         —         (19     —         (7     83       —         1  
Other
    83       —         (1     —         —         —         (14     —         (15     53       —         (1
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,608       1       2       60       (2     —         (115     —         (192     1,362       2       (14
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    14       —         —         —         —         —         (1     —         —         13       —         —    
Commercial mortgage-backed
    20       —         (1     1       —         —         —         —         —         20       —         (1
Other asset-backed
    109       —         1       3       —         —         (9     2       (18     88       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    4,089       3       (4     165       (2     —         (199     51       (343     3,760       4       (23
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    51       —         —         —         (8     —         (5     —         —         38       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    63       9       —         10       —         —         (35     —         —         47       4       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    63       9       —         10       —         —         (35     —         —         47       4       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    63       9       —         10       —         —         (35     —         —         47       4       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    26       (9     —         —         —         1       —         —         —         18       (9     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 4,229     $ 3     $ (4   $ 175     $ (10   $ 1     $ (239   $ 51     $ (343   $ 3,863     $ (1   $ (23
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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,
2020
   
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,
2020
   
Total gains (losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 102     $ 1     $ (12   $ —       $ —       $ —       $ (1   $ —       $ (27   $ 63     $ 2     $ (13
Non-U.S. government
    —         —         —         —         —         —         (1     1       —         —         —         —    
U.S. corporate:
                                                                                               
Utilities
    865       —         12       32       —         —         (2     42       (13     936       —         14  
Energy
    129       1       (2     10       (21     —         (3     22       (13     123       —         (5
Finance and insurance
    572       2       2       21       —         —         (24     —         (22     551       —         5  
Consumer—non-cyclical
    94       —         2       8       —         —         (1     —         —         103       —         2  
Technology and communications
    50       —         1       20       —         —         —         —         (5     66       —         2  
Industrial
    40       —         (1     —         —         —         —         —         —         39       —         (1
Capital goods
    102       —         (1     —         —         —         (4     —         —         97       —         (1
Consumer—cyclical
    173       —         4       —         —         —         (3     24       —         198       —         4  
Transportation
    78       —         (2     —         —         —         (2     10       (30     54       —         1  
Other
    136       —         1       5       —         —         (4     27       —         165       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,239       3       16       96       (21     —         (43     125       (83     2,332       —         22  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    374       —         3       12       —         —         —         21       (53     357       —         3  
Energy
    247       —         (8     —         —         —         (26     24       —         237       —         (8
Finance and insurance
    234       2       9       15       —         —         —         58       (7     311       2       10  
Consumer—non-cyclical
    59       —         2       8       —         —         —         1       (16     54       —         1  
Technology and communications
    28       —         —         —         —         —         —         —         —         28       —         —    
Industrial
    104       —         1       —         —         —         (5     —         (8     92       —         —    
Capital goods
    161       1       (2     —         —         —         (16     29       —         173       —         (1
Consumer—cyclical
    147       —         (3     4       —         —         (7     32       (17     156       —         (5
Transportation
    191       —         2       —         —         —         —         22       (74     141       —         6  
Other
    140       —         —         5       —         —         (1     1       —         145       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,685       3       4       44       —         —         (55     188       (175     1,694       2       6  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    27       —         —         —         —         —         (1     4       (6     24       —         —    
Commercial mortgage-backed
    6       —         2       —         —         —         —         20       (7     21       —         1  
Other asset-backed
    93       —         (2     8       —         —         (8     —         (1     90       —         (2
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    4,152       7       8       148       (21     —         (109     338       (299     4,224       4       14  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    51       —         —         6       (4     —         —         —         —         53       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    81       (9     —         18       —         —         (24     —         —         66       5       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    81       (9     —         18       —         —         (24     —         —         66       5       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    81       (9     —         18       —         —         (24     —         —         66       5       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    20       17       —         —         —         1       —         —         —         38       17       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 4,304     $ 15     $ 8     $ 172     $ (25   $ 1     $ (133   $ 338     $ (299   $ 4,381     $ 26     $ 14  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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 (loss) 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)
  
2021
    
2020
    
2021
    
2020
 
Total realized and unrealized gains (losses) included in net income (loss):
                                   
Net investment income
   $ 1      $ 2      $ 3      $ 6  
Net investment gains (losses)
     5        (5      —          9  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 6      $ (3    $ 3      $ 15  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total gains (losses) included in net income (loss) attributable to assets still held:
                                   
Net investment income
   $ 2      $ 2      $ 4      $ 4  
Net investment gains (losses)
     1        (1      (5      22  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 3      $ 1      $ (1    $ 26  
    
 
 
    
 
 
    
 
 
    
 
 
 
The amount presented for realized and unrealized gains (losses) included in net income (loss) for fixed maturity securities primarily represents amortization and accretion of premiums and discounts 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, 2021:
 
(Amounts in millions)
  
Valuation
technique
    
Fair
value
    
Unobservable
input
    
Range
    
Weighted-
average
(1)
 
Fixed maturity securities:
                                            
U.S. corporate:
                                            
Utilities
     Internal models      $ 807        Credit spreads       
47bps - 210bps
       124bps  
Energy
     Internal models        66        Credit spreads        57bps - 203bps        128bps  
Finance and insurance
     Internal models        644        Credit spreads        44bps - 171bps        113bps  
Consumer—non-cyclical
     Internal models        109        Credit spreads        52bps - 203bps        117bps  
Technology and communications
     Internal models        30        Credit spreads        72bps - 150bps        122bps  
Industrial
     Internal models        21        Credit spreads        85bps - 159bps        127bps  
Capital goods
     Internal models        59        Credit spreads        62bps - 159bps        112bps  
Consumer—cyclical
     Internal models        138        Credit spreads        81bps - 156bps        122bps  
Transportation
     Internal models        55        Credit spreads        46bps - 134bps        87bps  
Other
     Internal models        177        Credit spreads        63bps - 143bps        82bps  
             
 
 
                            
Total U.S. corporate
     Internal models      $ 2,106        Credit spreads        44bps - 210bps        115bps  
             
 
 
                            
Non-U.S. corporate:
                                            
Utilities
     Internal models      $ 347        Credit spreads        58bps - 210bps        109bps  
Energy
     Internal models        140        Credit spreads        62bps - 187bps        113bps  
Finance and insurance
     Internal models        160        Credit spreads        78bps - 111bps        93bps  
Consumer—non-cyclical
     Internal models        72        Credit spreads        52bps - 121bps        89bps  
Technology and communications
     Internal models        28        Credit spreads        62bps - 106bps        89bps  
Industrial
     Internal models        94        Credit spreads        57bps - 156bps        98bps  
Capital goods
     Internal models        152        Credit spreads        52bps - 187bps        100bps  
Consumer—cyclical
     Internal models        61        Credit spreads        81bps - 156bps        111bps  
Transportation
     Internal models        83        Credit spreads        52bps - 156bps        85bps  
Other
     Internal models        54        Credit spreads        66bps - 343bps        123bps  
             
 
 
                            
Total non-U.S. corporate
     Internal models      $ 1,191        Credit spreads       
52bps - 343bps
       103bps  
             
 
 
                            
Derivative assets:
                                            
Equity index options
     Discounted cash flows  
 
   $ 47        Equity index
volatility
 
 
     6% - 48%        27%  
 
(1)
 
Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets.
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, 2021
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Liabilities
                                   
Policyholder account balances:
                                   
GMWB embedded derivatives
(1)
   $ 275      $ —        $ —        $ 275  
Fixed index annuity embedded derivatives
     339        —          —          339  
Indexed universal life embedded derivatives
     24        —          —          24  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total policyholder account balances
     638        —          —          638  
    
 
 
    
 
 
    
 
 
    
 
 
 
Derivative liabilities:
                                   
Interest rate swaps
     53        —          53        —    
Foreign currency swaps
     2        —          2        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative liabilities
     55        —          55        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total liabilities
   $ 693      $ —        $ 55      $ 638  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
 
    
December 31, 2020
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Liabilities
                                   
Policyholder account balances:
                                   
GMWB embedded derivatives
(1)
   $ 379      $ —        $ —        $ 379  
Fixed index annuity embedded derivatives
     399        —          —          399  
Indexed universal life embedded derivatives
     26        —          —          26  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total policyholder account balances
     804        —          —          804  
    
 
 
    
 
 
    
 
 
    
 
 
 
Derivative liabilities:
                                   
Interest rate swaps
     23        —          23        —    
Foreign currency swaps
     2        —          2        —    
Other foreign currency contracts
     1        —          1        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative liabilities
     26        —          26        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total liabilities
   $ 830      $ —        $ 26      $ 804  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(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:
 
   
Beginning
balance

as of
April 1,
2021
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June
30,
2021
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 272     $ (3   $ —       $ —       $ —       $ 6     $ —       $ —       $ —       $ 275     $ (4   $ —    
Fixed index annuity embedded derivatives
    362       14       —         —         —         —         (37     —         —         339       14       —    
Indexed universal life embedded derivatives
    23       (3     —         —         —         4       —         —         —         24       (3     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    657       8       —         —         —         10       (37     —         —         638       7       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 657     $ 8     $ —       $ —       $ —       $ 10     $ (37   $ —       $ —       $ 638     $ 7     $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
 
   
Beginning
balance

as of
April 1,
2020
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June 30,
2020
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 691     $ (138   $ —       $ —       $ —       $ 6     $ —       $ —       $ —       $ 559     $ (137   $ —    
Fixed index annuity embedded derivatives
    413       45       —         —         —         —         (11     —         —         447       45       —    
Indexed universal life embedded derivatives
    21       (3     —         —         —         5       —         —         —         23       (3     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    1,125       (96     —         —         —         11       (11     —         —         1,029       (95     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 1,125     $ (96   $ —       $ —       $ —       $ 11     $ (11   $ —       $ —       $ 1,029     $ (95   $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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:
 
   
Beginning
balance

as of
January
1, 2021
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June
30,
2021
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 379     $ (116   $ —       $ —       $ —       $ 12     $ —       $ —       $ —       $ 275     $ (111   $ —    
Fixed index annuity embedded derivatives
    399       18       —         —         —         —         (78     —         —         339       18       —    
Indexed universal life embedded derivatives
    26       (13     —         —         —         11       —         —         —         24       (13     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    804       (111     —         —         —         23       (78     —         —         638       (106     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 804     $ (111   $ —       $ —       $ —       $ 23     $ (78   $ —       $ —       $ 638     $ (106   $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
 
   
Beginning
balance

as of
January 1,
2020
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June 30,
2020
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 323     $ 224     $ —       $ —       $ —       $ 12     $ —       $ —       $ —       $ 559     $ 231     $ —    
Fixed index annuity embedded derivatives
    452       13       —         —         —         —         (18     —         —         447       13       —    
Indexed universal life embedded derivatives
    19       (7     —         —         —         11       —         —         —         23       (7     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    794       230       —         —         —         23       (18     —         —         1,029       237       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 794     $ 230     $ —       $ —       $ —       $ 23     $ (18   $ —       $ —       $ 1,029     $ 237     $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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) loss 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)
 
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Total realized and unrealized (gains) losses included in net (income) loss:
                               
Net investment income
  $ —       $ —       $ —       $ —    
Net investment (gains) losses
    8       (96     (111     230  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $ 8     $ (96   $ (111   $ 230  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total (gains) losses included in net (income) loss attributable to liabilities still held:
                               
Net investment income
  $ —       $ —       $ —       $ —    
Net investment (gains) losses
    7       (95     (106     237  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $ 7     $ (95   $ (106   $ 237  
   
 
 
   
 
 
   
 
 
   
 
 
 
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) loss” 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, 2021:
 
(Amounts in millions)
  
Valuation technique
  
Fair
value
    
Unobservable input
  
Range
  
Weighted-
average
(1)
Policyholder account balances:
                            
                   Withdrawal utilization rate    59% - 88%    75%
                   Lapse rate    2% - 9%    4%
                  
Non-performance risk
(credit spreads)
  
14bps - 83bps
   65bps
GMWB embedded derivatives 
(2)
   Stochastic cash flow model    $ 275      Equity index volatility    16% - 26%    22%
Fixed index annuity embedded derivatives
   Option budget method    $ 339      Expected future interest credited    —  % - 3%    1%
Indexed universal life embedded derivatives
   Option budget method    $ 24      Expected future interest credited    3% - 9%    5%
 
(1)
 
Unobservable inputs weighted by the policyholder account balances associated with the instrument.
(2)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs.
Assets and Liabilities Not Required to Be Carried at Fair Value
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, cash equivalents and restricted cash, 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, 2021
 
    
Notional

amount
   
Carrying

amount
    
Fair value
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Assets:
                                                    
Commercial mortgage loans, net
                 
(1)
 
  $ 6,879      $ 7,270      $ —        $ —        $ 7,270  
Bank loan investments
                 
(1)
 
    308        314        —          —          314  
Liabilities:
                                                    
Long-term borrowings
                 
(1)
 
    2,924        2,813        —          2,813        —    
Investment contracts
                 
(1)
 
    9,360        10,172        —          —          10,172  
Other firm commitments:
                                                    
Commitments to fund limited partnerships
     1,187       —          —          —          —          —    
Commitments to fund bank loan investments
     273       —          —          —          —          —    
Ordinary course of business lending commitments
     156       —          —          —          —          —    
 
(1)
 
These financial instruments do not have notional amounts.
 
    
December 31, 2020
 
    
Notional

amount
   
Carrying

amount
    
Fair value
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Assets:
                                                    
Commercial mortgage loans, net
                 
(1)
 
  $ 6,743      $ 7,145      $ —        $ —        $ 7,145  
Bank loan investments
                 
(1)
 
    344        354        —          —          354  
Liabilities:
                                                    
Long-term borrowings
                 
(1)
 
    3,403        3,090        —          3,090        —    
Investment contracts
                 
(1)
 
    10,276        11,353        —          —          11,353  
Other firm commitments:
                                                    
Commitments to fund limited partnerships
     1,090       —          —          —          —          —    
Commitments to fund bank loan investments
     32       —          —          —          —          —    
Ordinary course of business lending commitments
     117       —          —          —          —          —    
 
(1)
 
These financial instruments do not have notional amounts.
 
v3.21.2
Liability for Policy and Contract Claims
6 Months Ended
Jun. 30, 2021
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)
  
2021
    
2020
 
Beginning balance
   $ 11,486      $ 10,750  
Less reinsurance recoverables
     (2,431      (2,406
    
 
 
    
 
 
 
Net beginning balance
     9,055        8,344  
    
 
 
    
 
 
 
Incurred related to insured events of:
                 
Current year
     1,991        2,178  
Prior years
     (332      (258
    
 
 
    
 
 
 
Total incurred
     1,659        1,920  
    
 
 
    
 
 
 
Paid related to insured events of:
                 
Current year
     (477      (434
Prior years
     (1,255      (1,298
    
 
 
    
 
 
 
Total paid
     (1,732      (1,732
    
 
 
    
 
 
 
Interest on liability for policy and contract claims
     202        205  
Foreign currency translation
     —          (2
    
 
 
    
 
 
 
Net ending balance
     9,184        8,735  
Add reinsurance recoverables
     2,362        2,319  
    
 
 
    
 
 
 
Ending balance
   $ 11,546      $ 11,054  
    
 
 
    
 
 
 
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 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. In addition, loss reserves recorded on new delinquencies in our Enact segment have a high degree of estimation, particularly due to the level of uncertainty regarding whether borrowers in forbearance will ultimately cure or result in a claim payment.
For the six months ended June 30, 2021, the favorable development of $332 million related to insured events of prior years was primarily attributable to our long-term care insurance business largely from favorable development on prior year incurred but not reported claims, favorable claim terminations mostly attributable to higher mortality and favorable experience on pending claims that did not become an active claim. These decreases were partially offset by higher reserves associated with changes to incidence and mortality experience driven by COVID-19, which we believe are temporary.
 
v3.21.2
Borrowings
6 Months Ended
Jun. 30, 2021
Borrowings
(8) Borrowings
The following table sets forth total long-term borrowings as of the dates indicated:
 
(Amounts in millions)
  
June 30,
2021
    
December 31,
2020
 
Genworth Holdings
(1)
                 
7.20% Senior Notes, due 2021
   $ —        $ 338  
7.625% Senior Notes, due 2021
     514        660  
4.90% Senior Notes, due 2023
     400        400  
4.80% Senior Notes, due 2024
     400        400  
6.50% Senior Notes, due 2034
     297        297  
Floating Rate Junior Subordinated Notes, due 2066
     598        598  
    
 
 
    
 
 
 
Subtotal
     2,209        2,693  
Bond consent fees
     (16      (19
Deferred borrowing charges
     (8      (9
    
 
 
    
 
 
 
Total Genworth Holdings
     2,185        2,665  
    
 
 
    
 
 
 
Enact Holdings
                 
6.50% Senior Notes, due 2025
(2)
     750        750  
Deferred borrowing charges
     (11      (12
    
 
 
    
 
 
 
Total Enact Holdings
     739        738  
    
 
 
    
 
 
 
Total
   $ 2,924      $ 3,403  
    
 
 
    
 
 
 
 
(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 Enact Holdings, our wholly-owned U.S. mortgage insurance subsidiary, who has the option to redeem the notes in whole or in part at any time prior to February 15, 2025, by paying a make-whole premium plus accrued and unpaid interest.
Genworth Holdings paid its 7.20% senior notes with a principal balance of $338 million at maturity on February 16, 2021. Genworth Holdings’ 7.20% senior notes were fully redeemed with a cash payment of $350 million, comprised of the outstanding principal balance and accrued interest.
In March 2021, Genworth Holdings repurchased $146 million principal amount of its 7.625% senior notes due in September 2021 for a pre-tax loss of $4 million and paid accrued interest thereon. On July 21, 2021, Genworth Holdings early redeemed the remainder of its 7.625% senior notes originally scheduled to mature in September 2021. The senior notes were fully redeemed with a cash payment of $532 million, comprised of the outstanding principal balance of $513 million, accrued interest of approximately $13 million and a make-whole premium of approximately $6 million.
v3.21.2
Income Taxes
6 Months Ended
Jun. 30, 2021
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,
 
    
    2021    
   
    2020    
   
2021
   
2020
(2)
 
Statutory U.S. federal income tax rate
     21.0     21.0     21.0     21.0
Increase (reduction) in rate resulting from:
                                
Swaps terminated prior to the TCJA
(1)
     2.1       9.2       2.9       97.2  
Stock-based compensation
     —         0.2       0.1       14.6  
Non-deductible expense
     0.7       1.3       0.6       14.5  
Tax favored investments
     (0.3     (1.6     (0.4     (16.3
Other, net
     (0.1     (0.6     —         7.5  
    
 
 
   
 
 
   
 
 
   
 
 
 
Effective rate
     23.4     29.5     24.2     138.5
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Tax Cuts and Jobs Act.
(2)
 
For the six months ended June 30, 2020, the effective tax rate of 138.5% and the associated higher percentages included in the effective tax rate reconciliation are principally due to the prior year low pre-tax income.
The decrease in the effective tax rate for the three months ended June 30, 2021 was primarily attributable to tax expense 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, in relation to higher pre-tax income in the current year.
The decrease in the effective tax rate for the six months ended June 30, 2021 was mostly attributable to tax expense on forward starting swaps settled prior to the enactment of the TCJA and non-deductible expenses in relation to higher pre-tax income in the current year. The decrease was also attributable to higher tax expense related to stock-based compensation in the prior year.
U.S. GAAP generally requires an annualized effective tax rate to be used for interim reporting periods, utilizing projections of full year results. However, in certain circumstances it is appropriate to record the actual effective tax rate for the period if a reliable full year estimate cannot be made. For the three and six months ended June 30, 2020, we elected to record the actual effective tax rate for the periods, primarily due to the sensitivity of the full year annualized effective rate in relation to small changes in projected pre-tax income.
v3.21.2
Segment Information
6 Months Ended
Jun. 30, 2021
Segment Information
(10) Segment Information
We have the following three operating business segments: Enact, formerly known as U.S. 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 since 2011). In addition to our three 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 international mortgage insurance businesses and discontinued operations.
We tax our businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. 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 (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), 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 estimated future credit losses, 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. 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.
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.
During the six months ended June 30, 2021, we repurchased $146 million principal amount of Genworth Holdings’ senior notes due in September 2021 for a pre-tax loss of $4 million. During the three and six months ended June 30, 2020, we repurchased $52 million and $66 million, respectively, principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $3 million and $4 million, respectively. In January 2020, we paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont Life Insurance Company I, our indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) as they relate to gains (losses) on the early extinguishment of debt.
We recorded a pre-tax expense of $5 million and $26 million for the three and six months ended June 30, 2021, respectively, and $1 million and $2 million for the three and six months ended June 30, 2020, respectively, related to restructuring costs as we continue to evaluate and appropriately size our organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) 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)
  
2021
    
2020
    
2021
    
2020
 
Revenues:
                                   
Enact segment
   $ 276      $ 274      $ 564      $ 535  
U.S. Life Insurance segment:
                                   
Long-term care insurance
     1,226        1,200        2,366        2,206  
Life insurance
     329        335        677        683  
Fixed annuities
     122        129        254        262  
    
 
 
    
 
 
    
 
 
    
 
 
 
U.S. Life Insurance segment
     1,677        1,664        3,297        3,151  
    
 
 
    
 
 
    
 
 
    
 
 
 
Runoff segment
     88        90        164        97  
    
 
 
    
 
 
    
 
 
    
 
 
 
Corporate and Other activities
     —          (25      1        29  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total revenues
   $ 2,041      $ 2,003      $ 4,026      $ 3,812  
    
 
 
    
 
 
    
 
 
    
 
 
 
The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) 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)
  
2021
   
2020
   
2021
   
2020
 
Net income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 240     $ (441   $ 427     $ (507
Add: net income from continuing operations attributable to noncontrolling interests
     —         —         —         —    
Add: net income from discontinued operations attributable to noncontrolling interests
     —         23       8       17  
    
 
 
   
 
 
   
 
 
   
 
 
 
Net income (loss)
     240       (418     435       (490
Less: income (loss) from discontinued operations, net of taxes
     (5     (473     16       (485
    
 
 
   
 
 
   
 
 
   
 
 
 
Income (loss) from continuing operations
     245       55       419       (5
Less: net income from continuing operations attributable to noncontrolling interests
     —         —         —         —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders
     245       55       419       (5
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
                                
Net investment (gains) losses, net
(1)
     (70     (97     (103     (9
(Gains) losses on early extinguishment of debt
     —         (3     4       9  
Expenses related to restructuring
     5       1       26       2  
Taxes on adjustments
     14       21       16       —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 194     $ (23   $ 362     $ (3
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
For the three and six months ended June 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million and $(15) million, respectively.
    
Three months ended
June 30,
   
Six months ended
June 30,
 
(Amounts in millions)
  
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
                                
Enact segment
   $ 135     $ (3   $ 261     $ 145  
U.S. Life Insurance segment:
                                
Long-term care insurance
     98       48       193       49  
Life insurance
     (40     (81     (103     (158
Fixed annuities
     13       28       43       34  
    
 
 
   
 
 
   
 
 
   
 
 
 
U.S. Life Insurance segment
     71       (5     133       (75
    
 
 
   
 
 
   
 
 
   
 
 
 
Runoff segment
     15       24       27       11  
Corporate and Other activities
     (27     (39     (59     (84
    
 
 
   
 
 
   
 
 
   
 
 
 
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 194     $ (23   $ 362     $ (3
    
 
 
   
 
 
   
 
 
   
 
 
 
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,
2021
    
December 31,
2020
 
Assets:
                 
Enact segment
   $ 5,845      $ 5,627  
U.S. Life Insurance segment
     82,522        84,671  
Runoff segment
     9,593        9,735  
Corporate and Other activities
     2,690        2,897  
    
 
 
    
 
 
 
Segment assets from continuing operations
     100,650        102,930  
Assets related to discontinued operations
     —          2,817  
    
 
 
    
 
 
 
Total assets
   $ 100,650      $ 105,747  
    
 
 
    
 
 
 
v3.21.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2021
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 business, 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, its current chief executive officer, its former chief executive officer, its then 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, its current chief executive officer, its former chief executive officer, its then 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 former 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 added Genworth’s then current chief financial officer as a defendant, based on 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 was stayed pending the outcome of the proposed China Oceanwide transaction. On January 14, 2021, the parties submitted a joint letter to the Court requesting that the action remain stayed until April 15, 2021, or until the closing or termination of the merger in the event the merger closed or was terminated prior to April 15, 2021. On April 6, 2021, Genworth Financial terminated the proposed China Oceanwide transaction, thereby lifting the stay. In June 2021, the parties submitted a supplemental briefing on our motion to dismiss, which is now fully briefed and awaiting disposition by the Court. We intend to vigorously defend this action.
In October 2016, Genworth Financial, its current chief executive officer, its former chief executive officer, its then current chief financial officer, its then 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 former 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 was stayed pending the outcome of the proposed China Oceanwide transaction. On January 14, 2021, the parties submitted a joint letter to the Court requesting that the action remai
n
 stayed until April 15, 2021, or until the closing or termination of the merger in the event the merger closed or was terminated prior to April 15, 2021. On April 6, 2021, Genworth Financial terminated the proposed China Oceanwide transaction, thereby lifting the stay. We intend to vigorously defend this action.
In September 2018, Genworth Life and Annuity Insurance Company (“GLAIC”), our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned
TVPX ARX INC., as Securities Intermediary for Consolidated Wealth Management, LTD. on behalf of itself and all others similarly situated v. Genworth Life and Annuity Insurance Company
. Plaintiff alleges unlawful and excessive cost of insurance charges were imposed on policyholders. The complaint asserts claims for breach of contract, alleging that Genworth improperly considered non-mortality factors when calculating cost of insurance rates and failed to decrease cost of insurance charges in light of improved expectations of future mortality, and seeks unspecified compensatory damages, costs, and equitable relief. On October 29, 2018, we filed a motion to enjoin the case in the Middle District of Georgia, and a motion to dismiss and motion to stay in the Eastern District of Virginia. We moved to enjoin the prosecution of the Eastern District of Virginia action on the basis that it involves claims released in a prior nationwide class action settlement (the “McBride settlement”) that was approved by the Middle District of Georgia. Plaintiff filed an amended complaint on November 13, 2018. On December 6, 2018, we moved the Middle District of Georgia for leave to file our counterclaim, which alleges that plaintiff breached the covenant not to sue contained in the prior settlement agreement by filing its current action. On March 15, 2019, the Middle District of Georgia granted our motion to enjoin and denied our motion for leave to file our counterclaim. As such, plaintiff is enjoined from pursuing its class action in the Eastern District of Virginia. On March 29, 2019, plaintiff filed a notice of appeal in the Middle District of Georgia, notifying the Court of its appeal to the United States Court of Appeals for the Eleventh Circuit from the order granting our motion to enjoin. On March 29, 2019, we filed our notice of cross-appeal in the Middle District of Georgia, notifying the Court of our cross-appeal to the Eleventh Circuit from the portion of the order denying our motion for leave to file our counterclaim. On April 8, 2019, the Eastern District of Virginia dismissed the case without prejudice, with leave for plaintiff to refile an amended complaint only if a final appellate Court decision vacates the injunction and reverses the Middle District of Georgia’s opinion. On May 21, 2019, plaintiff filed its appeal and memorandum in support in the Eleventh Circuit. We filed our response to plaintiff’s appeal memorandum on July 3, 2019. The Eleventh Circuit Court of Appeals heard oral argument on plaintiff’s appeal and our cross-appeal on April 21, 2020. On May 26, 2020, the Eleventh Circuit Court of Appeals vacated the Middle District of Georgia’s order enjoining Plaintiff’s class action and remanded the case back to the Middle District of Georgia for further factual development as to whether Genworth has altered how it calculates or charges cost of insurance since the McBride settlement. The Eleventh Circuit Court of Appeals did not reach a decision on Genworth’s counterclaim. On June 30, 2021, we filed in the Middle District of Georgia our renewed motion to enforce the class action settlement and release, and renewed our motion for leave to file a counterclaim. We intend to continue to vigorously defend the dismissal of this action.
In September 2018, Genworth Financial, Genworth Holdings, Genworth North America Corporation, Genworth Financial International Holdings, LLC (“GFIH”) and Genworth Life Insurance Company (“GLIC”) were named as defendants in a putative class action lawsuit pending in the Court of Chancery of the State of Delaware captioned
Richard F. Burkhart, William E. Kelly, Richard S. Lavery, Thomas R. Pratt, Gerald Green, individually and on behalf of all other persons similarly situated v. Genworth et al
. Plaintiffs allege that GLIC paid dividends to its parent and engaged in certain reinsurance transactions causing it to maintain inadequate capital capable of meeting its obligations to GLIC policyholders and agents. The complaint alleges causes of
action for intentional fraudulent transfer and constructive fraudulent transfer, and seeks injunctive relief. We moved to dismiss this action in December 2018. On January 29, 2019, plaintiffs exercised their right to amend their complaint. On March 12, 2019, we moved to dismiss plaintiffs’ amended complaint. On April 26, 2019, plaintiffs filed a memorandum in opposition to our motion to dismiss, which we replied to on June 14, 2019. On August 7, 2019, plaintiffs filed a motion seeking to prevent proceeds that GFIH expected to receive from the then planned sale of its shares in Genworth MI Canada Inc. (“Genworth Canada”) from being transferred out of GFIH. On September 11, 2019, plaintiffs filed a renewed motion seeking the same relief from their August 7, 2019 motion with an exception that allowed GFIH to transfer
 $450 million of expected proceeds from the sale of Genworth Canada through a dividend to Genworth Holdings to allow the pay-off of a senior secured term loan facility dated March 7, 2018 among Genworth Holdings as the borrower, GFIH as the limited guarantor and the lending parties thereto. Oral arguments on our motion to dismiss and plaintiffs’ motion occurred on October 21, 2019, and plaintiffs’ motion was denied. On January 31, 2020, the Court granted in part our motion to dismiss, dismissing claims relating to $395 million in dividends GLIC paid to its parent from 2012 to 2014 (out of the $410 million in total dividends subject to plaintiffs’ claims). The Court denied the balance of the motion to dismiss leaving a claim relating to $15 million in dividends and unquantified claims relating to the 2016 termination of a reinsurance transaction. On March 27, 2020, we filed our answer to plaintiffs’ amended complaint. On May 26, 2021, the plaintiffs filed a second amended and supplemental class action complaint adding additional factual allegations and three new causes of action. On July 26, 2021, we moved to dismiss the three new causes of action and answered the balance of the second amended and supplemental class action complaint. We intend to continue to vigorously defend this action.
On April 6, 2020, GLAIC, our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Eastern District of Virginia, captioned
Brighton Trustees, LLC, on behalf of and as trustee for Diamond LS Trust; and Bank of Utah, solely as securities intermediary for Diamond LS Trust; on behalf of themselves and all others similarly situated v. Genworth Life and Annuity Insurance Company
. On May 13, 2020, GLAIC was also named as a defendant in a putative class action lawsuit filed in the United States District Court for the Eastern District of Virginia, captioned
Ronald L. Daubenmier, individually and on behalf of himself and all others similarly situated v. Genworth Life and Annuity Insurance Company
. On June 26, 2020, plaintiffs filed a consent motion to consolidate the two cases. On June 30, 2020, the United States District Court for the Eastern District of Virginia issued an order consolidating the Brighton Trustees and Daubenmier cases. On July 17, 2020, the Brighton Trustees and Daubenmier plaintiffs filed a consolidated complaint, alleging that GLAIC subjected policyholders to an unlawful and excessive cost of insurance increase. The consolidated complaint asserts claims for breach of contract and injunctive relief, and seeks damages in excess of $5 million. On August 31, 2020, we filed an answer to plaintiffs’ consolidated complaint. The trial is scheduled to commence on April 1, 2022. We intend to continue to vigorously defend this action.
In January 2021, GLIC and Genworth Life Insurance Company of New York were named as defendants in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned
Judy Halcom, Hugh Penson, Harold Cherry, and Richard Landino, individually, and on behalf of all others similarly situated v. Genworth Life Insurance Company and Genworth Life Insurance Company of New York
. Plaintiffs seek to represent long-term care insurance policyholders, alleging that the defendants made misleading and inadequate disclosures regarding premium increases for long-term care insurance policies. The complaint asserts claims for breach of contract, conversion, and declaratory and injunctive relief, and seeks damages in excess of $5 
million. The trial is scheduled to commence on June 1, 2022. On June 18, 2021, following two days of mediation, the parties reached an agreement in principle to settle this matter on a nationwide basis. The parties will need to enter into a definitive settlement agreement, file for approval of the settlement with the Court and have the Court approve the settlement in order to finalize the settlement of this matter. No assurance can be given that a final settlement will be reached. If we enter into a settlement agreement 
consistent with the agreement in principle we reached on June 18, 2021, we do not anticipate the result to have a material negative impact on our results of operations or financial position. If we do not enter into a final settlement, we intend to continue to vigorously defend this action.
In January 2021, GLAIC, our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit pending in the United States District Court for the District of Oregon captioned
Patsy H. McMillan, Individually and On Behalf Of All Others Similarly Situated, v. Genworth Life and Annuity Insurance Company
. Plaintiff seeks to represent life insurance policyholders, alleging that GLAIC impermissibly calculated cost of insurance rates to be higher than that permitted by her policy. The complaint asserts claims for breach of contract, conversion, and declaratory and injunctive relief, and seeks damages in excess of $5 million. On April 5, 2021, we filed an answer to the plaintiff’s complaint. We intend to continue to vigorously defend thi
s
 action.
At this time 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 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, 2021, we were committed to fund $1,187 million in limited partnership investments, $58 million in U.S. commercial mortgage loan investments and $98 million in private placement investments. As of June 30, 2021, we were also committed to fund $273 million of bank loan investments which had not yet been drawn.
v3.21.2
Changes in Accumulated Other Comprehensive Income (Loss)
6 Months Ended
Jun. 30, 2021
Changes In Accumulated Other Comprehensive Income (Loss)
(12) Changes in Accumulated Other Comprehensive Income (Loss)
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, 2021
   $ 1,919     $ 1,792     $ (36   $ 3,675  
OCI before reclassifications
     (54     245       2       193  
Amounts reclassified from (to) OCI
     —         (34     —         (34
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     (54     211       2       159  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021 before noncontrolling interests
     1,865       2,003       (34     3,834  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     —         —         —         —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021
   $ 1,865     $ 2,003     $ (34   $ 3,834  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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, 2020
   $ 1,140     $ 2,755     $ (80   $ 3,815  
OCI before reclassifications
     762       (48     73       787  
Amounts reclassified from (to) OCI
     (88     (30     —         (118
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     674       (78     73       669  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020 before noncontrolling interests
     1,814       2,677       (7     4,484  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     3       —         34       37  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020
   $ 1,811     $ 2,677     $ (41   $ 4,447  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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, 2021
   $ 2,214     $ 2,211     $ —       $ 4,425  
OCI before reclassifications
     (370     (140     138       (372
Amounts reclassified from (to) OCI
     (4     (68     —         (72
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     (374     (208     138       (444
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021 before noncontrolling interests
     1,840       2,003       138       3,981  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     (25     —         172       147  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021
   $ 1,865     $ 2,003     $ (34   $ 3,834  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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, 2020
   $ 1,456     $ 2,002     $ (25   $ 3,433  
OCI before reclassifications
     448       735       (25     1,158  
Amounts reclassified from (to) OCI
     (94     (60     —         (154
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     354       675       (25     1,004  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020 before noncontrolling interests
     1,810       2,677       (50     4,437  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     (1     —         (9     (10
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020
   $ 1,811     $ 2,677     $ (41   $ 4,447  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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 in the charts above included $(15) million, net of taxes of $4 million, related to a net unrecognized postretirement benefit obligation as of June 30, 2021. The balance also included taxes of $(1) million and $22 million, respectively, related to foreign currency translation adjustments as of June 30, 2021 and 2020.
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)
 
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Net unrealized investment (gains) losses:
                                   
Unrealized (gains) losses on investments
(1)
  $ —       $ (112   $ (5   $ (119   Net investment (gains) losses
Income taxes
    —         24       1       25     Provision for income taxes
   
 
 
   
 
 
   
 
 
   
 
 
     
Total
  $ —       $ (88   $ (4   $ (94    
   
 
 
   
 
 
   
 
 
   
 
 
     
Derivatives qualifying as hedges:
                                   
Interest rate swaps hedging assets
  $ (52   $ (46   $ (104   $ (89   Net investment income
Interest rate swaps hedging assets
    —         —         —         (4   Net investment (gains) losses
Income taxes
    18       16       36       33     Provision for income taxes
   
 
 
   
 
 
   
 
 
   
 
 
     
Total
  $ (34   $ (30   $ (68   $ (60    
   
 
 
   
 
 
   
 
 
   
 
 
     
 
(1)
 
Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.
v3.21.2
Discontinued Operations
6 Months Ended
Jun. 30, 2021
Discontinued Operations
(13) Discontinued Operations
As discussed in note 1, on March 3, 2021, we completed the sale of Genworth Australia through an underwritten agreement and received approximately AUD483 million ($370 million) in net cash proceeds. In the first quarter of 2021, we recognized an after-tax loss on sale of $3 million. In addition, we recorded an after-tax favorable adjustment of $11 million in the first quarter of 2021 associated with a refinement to our tax matters agreement liability.
The assets and liabilities related to Genworth Australia were segregated in our condensed consolidated balance sheet until deconsolidation. The major asset and liability categories of Genworth Australia were as follows for the periods indicated:
 
(Amounts in millions)
  
June 30,
2021
    
December 31,
2020
 
Assets
                 
Investments:
                 
Fixed maturity securities available-for-sale, at fair value
   $ —        $ 2,295  
Equity securities, at fair value
     —          90  
Other invested assets
     —          154  
    
 
 
    
 
 
 
Total investments
     —          2,539  
Cash, cash equivalents and restricted cash
     —          95  
Accrued investment income
     —          16  
Deferred acquisition costs
     —          42  
Intangible assets
     —          43  
Other assets
     —          40  
Deferred tax asset
     —          42  
    
 
 
    
 
 
 
Assets related to discontinued operations
   $ —        $ 2,817  
    
 
 
    
 
 
 
Liabilities
                 
Liability for policy and contract claims
   $ —        $ 331  
Unearned premiums
     —          1,193  
Other liabilities
     —          104  
Long-term borrowings
     —          145  
    
 
 
    
 
 
 
Liabilities related to discontinued operations
   $ —        $ 1,773  
    
 
 
    
 
 
 
Deferred tax assets and liabilities that result in future taxable or deductible amounts to the remaining consolidated group have been reflected in assets or liabilities of continuing operations and not reflected in assets or liabilities related to discontinued operations.
A summary of operating results related to Genworth Australia reported as discontinued operations was as follows for the periods indicated:
 
    
Three months
ended
June 30,
    
Six months
ended
June 30,
 
(Amounts in millions)
  
2021
    
2020
    
2021
   
2020
 
Revenues:
                                  
Premiums
   $ —        $ 62      $ 51     $ 131  
Net investment income
     —          7        4       18  
Net investment gains (losses)
     —          66        (5     13  
Policy fees and other income
     —          —          —         1  
    
 
 
    
 
 
    
 
 
   
 
 
 
Total revenues
     —          135        50       163  
    
 
 
    
 
 
    
 
 
   
 
 
 
Benefits and expenses:
                                  
Benefits and other changes in policy reserves
     —          39        11       63  
Acquisition and operating expenses, net of deferrals
     —          13        7       25  
Amortization of deferred acquisition costs and intangibles
     —          6        6       14  
Goodwill impairment
     —          5        —         5  
Interest expense
     —          2        1       3  
    
 
 
    
 
 
    
 
 
   
 
 
 
Total benefits and expenses
     —          65        25       110  
    
 
 
    
 
 
    
 
 
   
 
 
 
Income before income taxes and loss on sale
(1)
     —          70        25       53  
Provision for income taxes
     —          23        8       18  
    
 
 
    
 
 
    
 
 
   
 
 
 
Income before loss on sale
     —          47        17       35  
Loss on sale, net of taxes
     —          —          (3     —    
    
 
 
    
 
 
    
 
 
   
 
 
 
Income from discontinued operations, net of taxes
     —          47        14       35  
    
 
 
    
 
 
    
 
 
   
 
 
 
Less: net income from discontinued operations attributable to noncontrolling interests
     —          23        8       17  
    
 
 
    
 
 
    
 
 
   
 
 
 
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders
   $ —        $ 24      $ 6     $ 18  
    
 
 
    
 
 
    
 
 
   
 
 
 
 
(1)
 
The three months ended June 30, 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $37 million. The six months ended June 30, 2021 and 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $13 million and $28 million, respectively.
Lifestyle protection insurance
On December 1, 2015, we completed the sale of our lifestyle protection insurance business to AXA. In 2017, AXA sued us for damages on an indemnity in the 2015 agreement related to alleged remediation it paid to customers who purchased payment protection insurance (“PPI”). On July 20, 2020, we reached a settlement agreement related to losses incurred from mis-selling complaints on policies sold from 1970 through 2004. As part of the settlement agreement, we agreed to make payments for certain PPI mis-selling claims, along with a significant portion of future claims that are still being processed. Under the settlement agreement, we issued a secured promissory note to AXA, in which we agreed to make deferred cash payments in two installments in June 2022 and September 2022. Future claims that are still being processed will be added to the September 2022 installment payment.
In connection with the Genworth Australia sale, we made a mandatory principal payment to AXA of approximately £176 million ($245 million) in March 2021. The mandatory payment fully repaid the first installment obligation originally due in June 2022 and partially prepaid the September 2022 installment payment.
The following table presents the remaining amounts owed to AXA under the settlement agreement, which are reflected as liabilities related to discontinued operations in our condensed consolidated balance sheets as of the periods presented:
 
(Amounts in millions)
  
British Pounds
   
U.S. Dollar
 
  
June 30,
2021
   
December 31,
2020
   
June 30,
2021
   
December 31,
2020
 
Installment payments due to AXA:
                                
June 2022:
                                
Beginning balance
   £ 159     £ 159     $ 217     $ 217  
Prepayments
(1)
     (159     —         (217     —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Ending balance
     —         159       —         217  
    
 
 
   
 
 
   
 
 
   
 
 
 
September 2022:
                                
Beginning balance
     187       158       256       217  
Prepayments
(1)
     (17     —         (28     —    
Amounts billed as future losses
     41       29       56       39  
Foreign exchange and other
     —         —         8       —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Ending balance
     211       187       292       256  
    
 
 
   
 
 
   
 
 
   
 
 
 
Total amounts due under the promissory note
     211       346       292       473  
Future claims:
                                
Estimated beginning balance
     79       107       108       146  
Change in estimated future claims
     —         1       —         1  
Less: Amounts billed
     (41     (29     (56     (39
    
 
 
   
 
 
   
 
 
   
 
 
 
Estimated future billings
     38       79       52       108  
    
 
 
   
 
 
   
 
 
   
 
 
 
Total amounts due to AXA under the settlement agreement
(2)
   £ 249     £ 425     $ 344     $ 581  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
On March 3, 2021, we completed the sale of Genworth Australia and received net proceeds of approximately AUD483 million ($370 million). The sale of Genworth Australia resulted in a mandatory principal payment of approximately £176 million ($245 million) related to our outstanding secured promissory note issued to AXA, dated as of July 20, 2020, as amended by the parties in connection with the Genworth Australia sale.
(2)
 
Amounts exclude accrued interest on the promissory note and certain other expenses. As of June 30, 2021, due principally to the mandatory payment made in connection with the Genworth Australia sale, we reduced the amount of accrued interest payable on the promissory note resulting in a reduction in the total amount owed to AXA of approximately $2 million.
An after-tax loss of $4 million and $5
million related to the settlement is included in income (loss) from discontinued operations for the three and six months ended June 30, 2021, respectively. The after-tax loss for the six months ended June 30, 2021 is comprised of foreign currency remeasurement losses and legal costs, partially offset by derivative hedge gains associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments made in British Pounds. For the three and six months ended June 30, 2020, we recorded
an after-tax loss from discontinued operations of $520 million related to the settlement. In connection with our prepayment of the promissory note, interest now accrues at a fixed rate of
 2.75% and is due quarterly.
To secure our obligation under the amended promissory note, we granted a 19.9% security interest in the outstanding common stock of Enact Holdings to AXA. AXA does not have the right to sell or repledge the collateral and is not entitled to any voting rights. The collateral will be released back to us upon full repayment of the promissory note. Accordingly, the collateral arrangement has no impact on our consolidated financial statements. In the event AXA recovers amounts from third parties related to the mis-selling losses, including from the distributor responsible for the sale of the policies, we have certain rights to share in those recoveries to recoup payments for the underlying mis-selling losses. As of June 30, 2021, we have not recorded any amounts associated with recoveries from third parties.
The promissory note is also subject to certain mandatory prepayments upon the occurrence of:
 
   
the consummation of certain qualifying debt transactions in which total gross proceeds of at least $750 million are raised;
 
   
the consummation of certain qualifying equity issuances or dispositions with respect to Enact Holdings, or any of our subsidiaries, in which total net cash proceeds of at least $475 million are raised;
 
   
certain asset dispositions of Enact Holdings;
 
   
transactions involving a change of control of Genworth; and
 
   
receipt of dividends and sale proceeds from Enact Holdings above certain threshold amounts.
The promissory note also contains certain negative and affirmative covenants, restrictions imposed on the collateral, representations and warranties and customary events of default.
In addition to the promissory note, we also have an unrelated liability that is owed to AXA associated with underwriting losses on a product sold by a distributor in our former lifestyle protection insurance business. For the six months ended June 30, 2021, we recorded a $4 million after-tax loss due to an adjustment to the underwriting losses. As of June 30, 2021 and December 31, 2020, the balance of the liability is $4 million and $16 million, respectively, and is included as liabilities related to discontinued operations in our condensed consolidated balance sheets. During the second quarter of 2021, we reached a settlement with AXA and made a cash payment of approximately €15 million ($18 million) for the amounts owed related to the underwriting losses. The remaining amount accrued as of June 30, 2021 represents our best estimate of amounts owed for a tax gross up associated with the underwriting losses.
We have established our current best estimates for future claims that are still being processed under the settlement agreement, as well as for a tax gross up related to underwriting losses and other expenses; however, there may be future adjustments to these estimates. If amounts are different from our estimates, it could result in an adjustment to our liabilities and an additional amount reflected in income (loss) from discontinued operations.
v3.21.2
Accounting Changes (Policies)
6 Months Ended
Jun. 30, 2021
Disclosue of Accounting Changes [Abstract]  
Accounting Pronouncements Recently Adopted
Accounting Pronouncements Recently Adopted
On January 1, 2021, we adopted new accounting guidance related to simplifying the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. We adopted this new accounting guidance using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, which did not have a significant impact on our consolidated financial statements and disclosures.
Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Not Yet Adopted
In August 2018, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance that significantly changes the recognition and measurement of long-duration insurance contracts and expands disclosure requirements, which impacts our life insurance deferred acquisition costs (“DAC”) and liabilities. In accordance with the guidance, the more significant changes include:
 
   
assumptions will no longer be locked-in at contract inception and all cash flow assumptions used to estimate the liability for future policy benefits (except the discount rate) will be reviewed at least annually in the same period each year or more frequently if actual experience indicates a change is required. Changes will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up adjustment by recalculating the net premium ratio (which will be capped at 100%) using actual historical and updated future cash flow assumptions;
 
   
the discount rate used to determine the liability for future policy benefits will be a current upper-medium grade (low credit risk) fixed-income instrument yield, which is generally interpreted to mean a
 
 
single-A rated bond rate for the same duration, and is required to be reviewed quarterly, with changes in the discount rate recorded in other comprehensive income (loss);
 
   
the provision for adverse deviation and the premium deficiency test will be eliminated;
 
   
market risk benefits associated with deposit-type contracts will be measured at fair value with changes related to instrument-specific credit risk recorded in other comprehensive income (loss) and remaining changes recorded in net income (loss);
 
   
the amortization method for DAC will generally be on a straight-line basis over the expected contract term; and
 
   
disclosures will be greatly expanded to include significant assumptions and product liability rollforwards.
This guidance is effective for us on January 1, 2023 using the modified retrospective method (with transition adjustments as of January 1, 2021) for all topics except for market risk benefits, which is required to be applied using the retrospective method, with early adoption permitted, which we do not intend to elect. We are currently in process of developing a detailed implementation plan that will allow us to obtain necessary data, modify systems, identify and develop key inputs and establish policies, systems and internal controls that will be necessary to implement this new accounting guidance. Given the nature and extent of the changes to our operations, this guidance is expected to have a significant impact on our consolidated financial statements, and may significantly reduce our equity at transition.
 
v3.21.2
Earnings (Loss) Per Share (Tables)
6 Months Ended
Jun. 30, 2021
Earnings (Loss) Per Share
Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) 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)
  
    2021    
   
    2020    
   
    2021    
    
    2020    
 
Weighted-average shares used in basic earnings per share calculations
     507.0       505.4       506.5        504.8  
Potentially dilutive securities:
                                 
Stock options, restricted stock units and stock appreciation rights
     8.0       7.1       7.9        —    
    
 
 
   
 
 
   
 
 
    
 
 
 
Weighted-average shares used in diluted earnings per share calculations 
(1)
     515.0       512.5       514.4        504.8  
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from continuing operations:
                                 
Income (loss) from continuing operations
   $ 245     $ 55     $ 419      $ (5
Less: net income from continuing operations attributable to noncontrolling interests
     —         —         —          —    
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders
   $ 245     $ 55     $ 419      $ (5
    
 
 
   
 
 
   
 
 
    
 
 
 
Basic per share
   $ 0.48     $ 0.11     $ 0.83      $ (0.01
    
 
 
   
 
 
   
 
 
    
 
 
 
Diluted per share
   $ 0.47     $ 0.11     $ 0.82      $ (0.01
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from discontinued operations:
                                 
Income (loss) from discontinued operations, net of taxes
   $ (5   $ (473   $ 16      $ (485
Less: net income from discontinued operations attributable to noncontrolling interests
     —         23       8        17  
    
 
 
   
 
 
   
 
 
    
 
 
 
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders
   $ (5   $ (496   $ 8      $ (502
    
 
 
   
 
 
   
 
 
    
 
 
 
Basic per share
   $ (0.01   $ (0.98   $ 0.02      $ (0.99
    
 
 
   
 
 
   
 
 
    
 
 
 
Diluted per share
   $ (0.01   $ (0.97   $ 0.02      $ (0.99
    
 
 
   
 
 
   
 
 
    
 
 
 
Net income (loss):
                                 
Income (loss) from continuing operations
   $ 245     $ 55     $ 419      $ (5
Income (loss) from discontinued operations, net of taxes
     (5     (473     16        (485
    
 
 
   
 
 
   
 
 
    
 
 
 
Net income (loss)
     240       (418     435        (490
Less: net income attributable to noncontrolling interests
     —         23       8        17  
    
 
 
   
 
 
   
 
 
    
 
 
 
Net income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 240     $ (441   $ 427      $ (507
    
 
 
   
 
 
   
 
 
    
 
 
 
Basic per share 
(2)
   $ 0.47     $ (0.87   $ 0.84      $ (1.00
    
 
 
   
 
 
   
 
 
    
 
 
 
Diluted per share 
(2)
   $ 0.47     $ (0.86   $ 0.83      $ (1.00
    
 
 
   
 
 
   
 
 
    
 
 
 
 
(1)
 
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.3 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, dilutive potential weighted-average common shares outstanding would have been 511.1 million.
(2)
 
May not total due to whole number calculation.
v3.21.2
Investments (Tables)
6 Months Ended
Jun. 30, 2021
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)
  
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Fixed maturity securities—taxable
   $ 608     $ 594     $ 1,207     $ 1,205  
Fixed maturity securities—non-taxable
     1       1       3       3  
Equity securities
     2       2       5       4  
Commercial mortgage loans
     103       84       181       169  
Policy loans
     40       49       90       98  
Other invested assets
     112       66       201       113  
Cash, cash equivalents, restricted cash and short-term investments
     —         4       —         14  
    
 
 
   
 
 
   
 
 
   
 
 
 
Gross investment income before expenses and fees
     866       800       1,687       1,606  
Expenses and fees
     (22     (21     (42     (45
    
 
 
   
 
 
   
 
 
   
 
 
 
Net investment income
   $ 844     $ 779     $ 1,645     $ 1,561  
    
 
 
   
 
 
   
 
 
   
 
 
 
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)
  
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Available-for-sale fixed maturity securities:
                                
Realized gains
   $ 5     $ 103     $ 12     $ 105  
Realized losses
     (4     (5     (7     (5
    
 
 
   
 
 
   
 
 
   
 
 
 
Net realized gains (losses) on available-for-sale fixed maturity securities
     1       98       5       100  
    
 
 
   
 
 
   
 
 
   
 
 
 
Net change in allowance for credit losses on available-for-sale fixed maturity securities
     (4     (7     (6     (7
Write-down of available-for-sale fixed maturity securities 
(1)
     —         —         (1     —    
Net realized gains (losses) on equity securities sold
     (2     —         (7     —    
Net unrealized gains (losses) on equity securities still held
     6       5       (2     (7
Limited partnerships
     65       37       102       (3
Commercial mortgage loans
     (1     1       (2     1  
Derivative instruments 
(2)
     4       (36     12       (84
Other
     1       (5     2       (6
    
 
 
   
 
 
   
 
 
   
 
 
 
Net investment gains (losses)
   $ 70     $ 93     $ 103     $ (6
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis.
(2)
 
See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).
Allowance for credit losses related to fixed maturity securities The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the three months ended June 30, 2021:
(Amounts in millions)
 
Beginning
balance
   
Increase from
securities
without
allowance in
previous
periods
   
Increase
(decrease)
from securities
with allowance
in previous
periods
   
Securities

sold
   
Decrease
due to change
in intent or
requirement
to sell
   
Write-offs
   
Recoveries
   
Ending
balance
 
Fixed maturity securities:
                                                               
Non-U.S. corporate
  $ 3     $ —       $ 4     $ (7   $ —       $ —       $ —       $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
  $ 3     $ —       $ 4     $ (7   $ —       $ —       $ —       $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the three and six months ended June 30, 2020:
 
(Amounts in millions)
 
Beginning
balance
   
Increase from
securities
without
allowance in
previous
periods
   
Increase
(decrease)
from securities
with allowance
in previous
periods
   
Securities
sold
   
Decrease
due to
change in
intent or
requirement
to sell
   
Write-
offs
   
Recoveries
   
Ending
balance
 
Fixed maturity securities:
                                                               
Non-U.S. corporate
  $ —       $ 4     $ —       $ —       $ —       $ —       $ —       $ 4  
Commercial mortgage-backed
    —         3       —         —         —         —         —         3  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
  $ —       $ 7     $ —       $ —       $ —       $ —       $ —       $ 7  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the six months ended June 30, 2021:
 
(Amounts in millions)
 
Beginning
balance
   
Increase from
securities
without
allowance in
previous
periods
   
Increase
(decrease)
from securities
with allowance
in previous
periods
   
Securities
sold
   
Decrease
due to change
in intent or
requirement
to sell
   
Write-

offs
   
Recoveries
   
Ending
balance
 
Fixed maturity securities:
                                                               
Non-U.S. corporate
  $ 1     $ —       $ 6     $ (7   $ —       $ —       $ —       $ —    
Commercial mortgage-backed
    3       —         —         —         —         (3     —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
  $ 4     $ —       $ 6     $ (7   $ —       $ (3   $ —       $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
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, 2021
   
December 31, 2020
 
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses
(1)
   $ 8,538     $ 10,159  
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses
(1)
     —         (7
Adjustments to DAC, present value of future profits, sales inducements, benefit reserves and policyholder contract balances
     (6,169     (7,302
Income taxes, net
     (504     (611
    
 
 
   
 
 
 
Net unrealized investment gains (losses)
     1,865       2,239  
Less: net unrealized investment gains (losses) attributable to noncontrolling interests
     —         25  
    
 
 
   
 
 
 
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.
   $ 1,865     $ 2,214  
    
 
 
   
 
 
 
 
(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)
  
2021
   
2020
 
Beginning balance
   $ 1,919     $ 1,140  
Unrealized gains (losses) arising during the period:
                
Unrealized gains (losses) on fixed maturity securities
     1,774       3,911  
Adjustment to deferred acquisition costs
     42       (111
Adjustment to present value of future profits
     1       5  
Adjustment to sales inducements
     2       (34
Adjustment to benefit reserves
     (1,887     (2,802
Provision for income taxes
     14       (207
    
 
 
   
 
 
 
Change in unrealized gains (losses) on investment securities
     (54     762  
Reclassification adjustments to net investment (gains) losses, net of taxes of $—
 
and $24
     —         (88
    
 
 
   
 
 
 
Change in net unrealized investment gains (losses)
     (54     674  
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests
     —         3  
    
 
 
   
 
 
 
Ending balance
   $ 1,865     $ 1,811  
    
 
 
   
 
 
 
    
As of or for the
six months ended

June 30,
 
(Amounts in millions)
  
2021
   
2020
 
Beginning balance
   $ 2,214     $ 1,456  
Unrealized gains (losses) arising during the period:
                
Unrealized gains (losses) on fixed maturity securities
     (1,609     2,199  
Adjustment to deferred acquisition costs
     (132     57  
Adjustment to present value of future profits
     2       4  
Adjustment to sales inducements
     5       2  
Adjustment to benefit reserves
     1,258       (1,694
Provision for income taxes
     106       (120
    
 
 
   
 
 
 
Change in unrealized gains (losses) on investment securities
     (370     448  
Reclassification adjustments to net investment (gains) losses, net of taxes of $1 and $25
     (4     (94
    
 
 
   
 
 
 
Change in net unrealized investment gains (losses)
     (374     354  
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests
     (25     (1
    
 
 
   
 
 
 
Ending balance
   $ 1,865     $ 1,811  
    
 
 
   
 
 
 
Fixed Maturity Securities
As of June 30, 2021, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows:
 
(Amounts in millions)
  
Amortized
cost or
cost
    
Gross
unrealized
gains
    
Gross
unrealized
losses
   
Allowance
for credit
losses
    
Fair

value
 
Fixed maturity securities:
                                           
U.S. government, agencies and government-sponsored enterprises
   $ 3,350      $ 1,135      $ (1   $ —        $ 4,484  
State and political subdivisions
     2,876        496        (1     —          3,371  
Non-U.S. government
     712        94        (4     —          802  
U.S. corporate:
                                           
Utilities
     4,276        820        (5     —          5,091  
Energy
     2,573        388        (9     —          2,952  
Finance and insurance
     7,895        1,107        (13     —          8,989  
Consumer—non-cyclical
     5,128        1,100        (4     —          6,224  
Technology and communications
     3,244        515        (5     —          3,754  
Industrial
     1,377        196        (1     —          1,572  
Capital goods
     2,424        447        (1     —          2,870  
Consumer—cyclical
     1,758        240        (4     —          1,994  
Transportation
     1,156        253        —         —          1,409  
Other
     394        40        —         —          434  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total U.S. corporate
     30,225        5,106        (42     —          35,289  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Non-U.S. corporate:
                                           
Utilities
     873        73        (1     —          945  
Energy
     1,189        210        —         —          1,399  
Finance and insurance
     2,108        298        (6     —          2,400  
Consumer—non-cyclical
     659        87        (1     —          745  
Technology and communications
     1,098        186        —         —          1,284  
Industrial
     1,003        138        (1     —          1,140  
Capital goods
     574        69        (1     —          642  
Consumer—cyclical
     325        29        (1     —          353  
Transportation
     467        74        —         —          541  
Other
     1,105        193        (3     —          1,295  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total non-U.S. corporate
     9,401        1,357        (14     —          10,744  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Residential mortgage-backed
     1,524        167        —         —          1,691  
Commercial mortgage-backed
     2,538        199        (3     —          2,734  
Other asset-backed
     2,485        50        (1     —          2,534  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total available-for-sale fixed maturity securities
   $ 53,111      $ 8,604      $ (66   $ —        $ 61,649  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
 
As of December 31, 2020, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows:
 
(Amounts in millions)
  
Amortized
cost or
cost
    
Gross
unrealized
gains
    
Gross
unrealized
losses
   
Allowance
for credit
losses
   
Fair
value
 
Fixed maturity securities:
                                          
U.S. government, agencies and government-sponsored enterprises
   $ 3,401      $ 1,404      $ —       $ —       $ 4,805  
State and political subdivisions
     2,622        544        (1     —         3,165  
Non-U.S. government
     728        130        (4     —         854  
U.S. corporate:
                                          
Utilities
     4,226        970        (2     —         5,194  
Energy
     2,532        367        (16     —         2,883  
Finance and insurance
     7,798        1,306        (2     —         9,102  
Consumer—non-cyclical
     5,115        1,323        (1     —         6,437  
Technology and communications
     3,142        619        —         —         3,761  
Industrial
     1,370        232        —         —         1,602  
Capital goods
     2,456        535        —         —         2,991  
Consumer—cyclical
     1,663        284        —         —         1,947  
Transportation
     1,198        304        (2     —         1,500  
Other
     395        45        —         —         440  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Total U.S. corporate
     29,895        5,985        (23     —         35,857  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                          
Utilities
     838        84        —         —         922  
Energy
     1,172        209        (1     —         1,380  
Finance and insurance
     2,130        353        (6     (1     2,476  
Consumer—non-cyclical
     662        112        (1     —         773  
Technology and communications
     1,062        229        —         —         1,291  
Industrial
     969        159        —         —         1,128  
Capital goods
     510        67        (1     —         576  
Consumer—cyclical
     331        41        (1     —         371  
Transportation
     483        88        (1     —         570  
Other
     1,088        236        —         —         1,324  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
     9,245        1,578        (11     (1     10,811  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
     1,698        211        —         —         1,909  
Commercial mortgage-backed
     2,759        231        (13     (3     2,974  
Other asset-backed
     3,069        55        (4     —         3,120  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Total available-for-sale fixed maturity securities
   $ 53,417      $ 10,138      $ (56   $ (4   $ 63,495  
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
 
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 for which an allowance for credit losses has not been recorded, 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, 2021:
 
   
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
  $ 30     $ (1     5     $ —       $ —         —       $ 30     $ (1     5  
State and political subdivisions
    100       (1     32       —         —         —         100       (1     32  
Non-U.S. government
    112       (3     22       18       (1     1       130       (4     23  
U.S. corporate
    1,482       (37     141       59       (5     8       1,541       (42     149  
Non-U.S. corporate
    434       (12     51       35       (2     7       469       (14     58  
Commercial mortgage-backed
    48       (1     6       53       (2     9       101       (3     15  
Other asset-backed
    280       (1     55       —         —         —         280       (1     55  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 2,486     $ (56     312     $ 165     $ (10     25     $ 2,651     $ (66     337  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% Below cost:
                                                                       
<20% Below cost
  $ 2,479     $ (53     311     $ 160     $ (8     24     $ 2,639     $ (61     335  
20%-50% Below cost
    7       (3     1       5       (2     1       12       (5     2  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 2,486     $ (56     312     $ 165     $ (10     25     $ 2,651     $ (66     337  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Investment grade
  $ 2,379     $ (50     293     $ 82     $ (4     15     $ 2,461     $ (54     308  
Below investment grade
    107       (6     19       83       (6     10       190       (12     29  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 2,486     $ (56     312     $ 165     $ (10     25     $ 2,651     $ (66     337  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses has not been recorded, 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, 2021:
 
   
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
  $ 82     $ (5     17     $ —       $ —         —       $ 82     $ (5     17  
Energy
    88       (4     10       59       (5     8       147       (9     18  
Finance and insurance
    540       (13     42       —         —         —         540       (13     42  
Consumer—non-cyclical
    202       (4     19       —         —         —         202       (4     19  
Technology and communications
    219       (5     22       —         —         —         219       (5     22  
Industrial
    67       (1     6       —         —         —         67       (1     6  
Capital goods
    95       (1     8       —         —         —         95       (1     8  
Consumer—cyclical
    189       (4     17       —         —         —         189       (4     17  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, U.S. corporate securities
    1,482       (37     141       59       (5     8       1,541       (42     149  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                       
Utilities
    42       (1     6       —         —         —         42       (1     6  
Finance and insurance
    271       (6     28       —         —         —         271       (6     28  
Consumer—non-cyclical
    —         —         —         6       (1     1       6       (1     1  
Technology and Industrial
    43       (1     4       —         —         —         43       (1     4  
Capital goods
    —         —         —         29       (1     6       29       (1     6  
Consumer—cyclical
    32       (1     8       —         —         —         32       (1     8  
Other
    46       (3     5       —         —         —         46       (3     5  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, non-U.S. corporate securities
    434       (12     51       35       (2     7       469       (14     58  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for corporate securities in an unrealized loss position
  $ 1,916     $ (49     192     $ 94     $ (7     15     $ 2,010     $ (56     207  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
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 December 31, 2020:
 
   
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:
                                                                       
State and political subdivisions
  $ 28     $ (1     6     $ —       $ —         —       $ 28     $ (1     6  
Non-U.S. government
    44       (4     5       —         —         —         44       (4     5  
U.S. corporate
    345       (20     59       33       (3     4       378       (23     63  
Non-U.S. corporate
    145       (4     32       6       (1     1       151       (5     33  
Commercial mortgage-backed
    227       (11     34       1       (1     1       228       (12     35  
Other asset-backed
    238       (2     60       207       (2     48       445       (4     108  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 1,027     $ (42     196     $ 247     $ (7     54     $ 1,274     $ (49     250  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% Below cost:
                                                                       
<20% Below cost
  $ 1,017     $ (35     194     $ 246     $ (6     53     $ 1,263     $ (41     247  
20%-50% Below cost
    10       (7     2       1       (1     1       11       (8     3  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 1,027     $ (42     196     $ 247     $ (7     54     $ 1,274     $ (49     250  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Investment grade
  $ 852     $ (23     163     $ 207     $ (2     48     $ 1,059     $ (25     211  
Below investment grade
    175       (19     33       40       (5     6       215       (24     39  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for fixed maturity securities in an unrealized loss position
  $ 1,027     $ (42     196     $ 247     $ (7     54     $ 1,274     $ (49     250  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
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, 2020:
 
   
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
  $ 49     $ (2     9     $ —       $ —         —       $ 49     $ (2     9  
Energy
    106       (13     19       33       (3     4       139       (16     23  
Finance and insurance
    128       (2     15       —         —         —         128       (2     15  
Consumer—non-cyclical
    16       (1     5       —         —         —         16       (1     5  
Transportation
    46       (2     11       —         —         —         46       (2     11  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, U.S. corporate securities
    345       (20     59       33       (3     4       378       (23     63  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                       
Energy
    66       (1     10       —         —         —         66       (1     10  
Consumer—non-cyclical
    —         —         —         6       (1     1       6       (1     1  
Capital goods
    31       (1     8       —         —         —         31       (1     8  
Consumer—cyclical
    15       (1     6       —         —         —         15       (1     6  
Transportation
    33       (1     8       —         —         —         33       (1     8  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Subtotal, non-U.S. corporate securities
    145       (4     32       6       (1     1       151       (5     33  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total for corporate securities in an unrealized loss position
  $ 490     $ (24     91     $ 39     $ (4     5     $ 529     $ (28     96  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Maturity Distribution of Fixed Maturity Securities
The scheduled maturity distribution of fixed maturity securities as of June 30, 2021 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
   $ 1,268      $ 1,291  
Due after one year through five years
     8,367        9,030  
Due after five years through ten years
     13,587        15,158  
Due after ten years
     23,342        29,211  
    
 
 
    
 
 
 
Subtotal
     46,564        54,690  
Residential mortgage-backed
     1,524        1,691  
Commercial mortgage-backed
     2,538        2,734  
Other asset-backed
     2,485        2,534  
    
 
 
    
 
 
 
Total
   $ 53,111      $ 61,649  
    
 
 
    
 
 
 
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, 2021
   
December 31, 2020
 
(Amounts in millions)
  
Carrying
value
    
% of
total
   
Carrying
value
    
% of
total
 
Property type:
                                  
Retail
   $ 2,693        39   $ 2,442        36
Industrial
     1,558        23       1,638        24  
Office
     1,531        22       1,567        23  
Apartments
     573        8       529        8  
Mixed use
     298        4       286        4  
Other
     259        4       312        5  
    
 
 
    
 
 
   
 
 
    
 
 
 
Subtotal
     6,912        100     6,774        100
             
 
 
            
 
 
 
Allowance for credit losses
     (33              (31         
    
 
 
            
 
 
          
Total
   $ 6,879              $ 6,743           
    
 
 
            
 
 
          
 
    
June 30, 2021
   
December 31, 2020
 
(Amounts in millions)
  
Carrying
value
    
% of
total
   
Carrying
value
    
% of
total
 
Geographic region:
                                  
South Atlantic
   $ 1,788        26   $ 1,711        25
Pacific
     1,456        21       1,510        22  
Middle Atlantic
     988        14       994        15  
Mountain
     847        12       781        12  
West North Central
     466        7       467        7  
West South Central
     455        7       423        6  
East North Central
     447        6       441        6  
New England
     262        4       260        4  
East South Central
     203        3       187        3  
    
 
 
    
 
 
   
 
 
    
 
 
 
Subtotal
     6,912        100     6,774        100
             
 
 
            
 
 
 
Allowance for credit losses
     (33              (31         
    
 
 
            
 
 
          
Total
   $ 6,879              $ 6,743           
    
 
 
            
 
 
          
Allowance for Credit Losses in Commercial Mortgage Loans
The following table sets forth the allowance for credit losses related to commercial mortgage loans as of or for the periods indicated:
 
    
Three months ended
June 30,
    
Six months ended
June 30,
 
(Amounts in millions)
  
    2021    
    
    2020    
    
    2021    
    
    2020    
 
Allowance for credit losses:
                                   
Beginning balance
   $ 32      $ 29      $ 31      $ 13  
Cumulative effect of change in accounting
     —          —          —          16  
Provision
     1        (1      2        (1
Write-offs
     —          —          —          —    
Recoveries
     —          —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Ending balance
   $ 33      $ 28      $ 33      $ 28  
    
 
 
    
 
 
    
 
 
    
 
 
 
Commercial Mortgage Loans By Credit Quality Indicator
The following tables set forth commercial mortgage loans by year of origination and credit quality indicator as of June 30, 2021:
 
(Amounts in millions)
  
2021
    
2020
    
2019
    
2018
    
2017
    
2016 and
prior
    
Total
 
Debt-to-value:
                                                              
0% - 50%
   $ 7      $ 59      $ 25      $ 102      $ 157      $ 2,151      $ 2,501  
51% - 60%
     19        51        88        344        236        810        1,548  
61% - 75%
     503        426        649        504        273        508        2,863  
76% - 100%
     —          —          —          —          —          —          —    
Greater than 100%
     —          —          —          —          —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total amortized cost
   $ 529      $ 536      $ 762      $ 950      $ 666      $ 3,469      $ 6,912  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Debt service coverage ratio:
                                                              
Less than 1.00
   $ —        $ —        $ 8      $ 27      $ 12      $ 131      $ 178  
1.00 - 1.25
     3        52        67        53        42        283        500  
1.26 - 1.50
     91        81        230        200        57        383        1,042  
1.51 - 2.00
     385        281        289        441        302        1,153        2,851  
Greater than 2.00
     50        122        168        229        253        1,519        2,341  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total amortized cost
   $ 529      $ 536      $ 762      $ 950      $ 666      $ 3,469      $ 6,912  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Loan To Value Ratio  
Commercial Mortgage Loans By Credit Quality Indicator
The following tables set forth the debt-to-value of commercial mortgage loans by property type as of the dates indicated:
 
    
June 30, 2021
 
(Amounts in millions)
  
0% - 50%
   
51% - 60%
   
61% - 75%
   
76% - 100%
   
Greater
than 100%
   
Total
 
Property type:
                                                
Retail
   $ 920     $ 605     $ 1,168     $ —       $ —       $ 2,693  
Industrial
     716       324       518       —         —         1,558  
Office
     468       452       611       —         —         1,531  
Apartments
     225       77       271       —         —         573  
Mixed use
     112       33       153       —         —         298  
Other
     60       57       142       —         —         259  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 2,501     $ 1,548     $ 2,863     $ —       $ —       $ 6,912  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     36     22     42     —       —       100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt service coverage ratio
     2.39       1.84       1.62       —         —         1.96  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
    
December 31, 2020
 
(Amounts in millions)
  
0% - 50%
   
51% - 60%
   
61% - 75%
   
76% - 100%
   
Greater
than 100%
   
Total
 
Property type:
                                                
Retail
   $ 913     $ 639     $ 859     $ 29     $ 2     $ 2,442  
Industrial
     798       351       456       33       —         1,638  
Office
     523       431       595       18       —         1,567  
Apartments
     199       86       238       6       —         529  
Mixed use
     112       47       127       —         —         286  
Other
     100       74       121       17       —         312  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 2,645     $ 1,628     $ 2,396     $ 103     $ 2     $ 6,774  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     39     24     35     2     —       100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt service coverage ratio
     2.40       1.83       1.61       1.49       0.64       1.97  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Debt Service Coverage Ratio  
Commercial Mortgage Loans By Credit Quality Indicator
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, 2021
 
(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
   $ 51     $ 163     $ 529     $ 1,190     $ 760     $ 2,693  
Industrial
     20       78       136       597       727       1,558  
Office
     70       90       169       658       544       1,531  
Apartments
     8       22       126       250       167       573  
Mixed use
     5       23       45       128       97       298  
Other
     24       124       37       28       46       259  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 178     $ 500     $ 1,042     $ 2,851     $ 2,341     $ 6,912  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     3     7     15     41     34     100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt-to-value
     58     61     62     59     44     54
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
    
December 31, 2020
 
(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
   $ 55     $ 169     $ 483     $ 969     $ 766     $ 2,442  
Industrial
     21       85       143       616       773       1,638  
Office
     101       99       170       634       563       1,567  
Apartments
     9       24       126       228       142       529  
Mixed use
     5       24       29       115       113       286  
Other
     25       125       41       28       93       312  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total amortized cost
   $ 216     $ 526     $ 992     $ 2,590     $ 2,450     $ 6,774  
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
% of total
     3     8     15     38     36     100
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average debt-to-value
     57     62     62     57     44     53
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
v3.21.2
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2021
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
 
   
Balance sheet
classification
 
Fair value
   
Balance sheet
classification
 
Fair value
 
(Amounts in millions)
 
June 30,
2021
   
December 31,
2020
   
June 30,
2021
   
December 31,
2020
 
Derivatives designated as hedges
                                       
Cash flow hedges:
                                       
Interest rate swaps
  Other invested assets   $ 280     $ 468     Other liabilities   $ 53     $ 23  
Foreign currency swaps
  Other invested assets     2       1     Other liabilities     2       2  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total cash flow hedges
        282       469           55       25  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total derivatives designated as hedges
        282       469           55       25  
       
 
 
   
 
 
       
 
 
   
 
 
 
Derivatives not designated as hedges
                                       
Equity index options
  Other invested assets     47       63     Other liabilities     —         —    
Financial futures
  Other invested assets     —         —       Other liabilities     —         —    
Other foreign currency contracts
  Other invested assets     24       42     Other liabilities     —         1  
GMWB embedded derivatives
  Reinsurance recoverable
(1)
    18       26     Policyholder account balances 
(2)
    275       379  
Fixed index annuity embedded derivatives
  Other assets     —         —       Policyholder account balances
(3)
    339       399  
Indexed universal life embedded derivatives
  Reinsurance recoverable     —         —       Policyholder account balances
(4)
    24       26  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total derivatives not designated as hedges
        89       131           638       805  
       
 
 
   
 
 
       
 
 
   
 
 
 
Total derivatives
      $ 371     $ 600         $ 693     $ 830  
       
 
 
   
 
 
       
 
 
   
 
 
 
 
(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,
2020
    
Additions
    
Maturities/
terminations
   
June 30,
2021
 
Derivatives designated as hedges
                                           
Cash flow hedges:
                                           
Interest rate swaps
     Notional      $ 8,178      $ —        $ (405   $ 7,773  
Foreign currency swaps
     Notional        127        —          —         127  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total cash flow hedges
              8,305        —          (405     7,900  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total derivatives designated as hedges
              8,305        —          (405     7,900  
             
 
 
    
 
 
    
 
 
   
 
 
 
Derivatives not designated as hedges
                                           
Interest rate swaps
     Notional        4,674        —          (4,674     —    
Equity index options
     Notional        2,000        614        (803     1,811  
Financial futures
     Notional        1,104        1,972        (2,116     960  
Other foreign currency contracts
     Notional        1,186        22        (536     672  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total derivatives not designated as hedges
              8,964        2,608        (8,129     3,443  
             
 
 
    
 
 
    
 
 
   
 
 
 
Total derivatives
            $ 17,269      $ 2,608      $ (8,534   $ 11,343  
             
 
 
    
 
 
    
 
 
   
 
 
 
 
(Number of policies)
  
Measurement
    
December 31,
2020
    
Additions
    
Maturities/
terminations
   
June 30,
2021
 
Derivatives not designated as hedges
                                           
GMWB embedded derivatives
     Policies          23,713        —          (982     22,731  
Fixed index annuity embedded derivatives
     Policies        12,778        —            (1,944       10,834  
Indexed universal life embedded derivatives
     Policies        842        —          (22     820  
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2021:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ 314     $ 52     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    (8     —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    3       —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ 309     $ 52         $ —        
   
 
 
   
 
 
       
 
 
     
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2020:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ (57   $ 46     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    1       —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    (4     —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ (60   $ 46         $ —        
   
 
 
   
 
 
       
 
 
     
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2021:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ (215   $ 104     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    36       —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    1       —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ (178   $ 104         $ —        
   
 
 
   
 
 
       
 
 
     
 
The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2020:
 
(Amounts in millions)
 
Gain (loss)
recognized in OCI
   
Gain (loss)
reclassified into
net income (loss)
from OCI
   
Classification of gain
(loss) reclassified into
net income (loss)
 
Gain (loss)
recognized in
net income (loss)
   
Classification of gain
(loss) recognized in
net income (loss)
Interest rate swaps hedging assets
  $ 984     $ 89     Net investment income   $ —       Net investment gains (losses)
Interest rate swaps hedging assets
    —         4     Net investment gains (losses)     —       Net investment gains (losses)
Interest rate swaps hedging liabilities
    (62     —       Interest expense     —       Net investment gains (losses)
Foreign currency swaps
    13       —       Net investment income     —       Net investment gains (losses)
   
 
 
   
 
 
       
 
 
     
Total
  $ 935     $ 93         $ —        
   
 
 
   
 
 
       
 
 
     
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)
  
2021
   
2020
 
Derivatives qualifying as effective accounting hedges as of April 1
   $ 1,792     $ 2,755  
Current period increases (decreases) in fair value, net of deferred taxes of $(64) and $12
     245       (48
Reclassification to net (income) loss, net of deferred taxes of $18 and $16
     (34     (30
    
 
 
   
 
 
 
Derivatives qualifying as effective accounting hedges as of June 30
   $ 2,003     $ 2,677  
    
 
 
   
 
 
 
 
    
Six months ended
June 30,
 
(Amounts in millions)
  
2021
   
2020
 
Derivatives qualifying as effective accounting hedges as of January 1
   $ 2,211     $ 2,002  
Current period increases (decreases) in fair value, net of deferred taxes of $38 and $(200)
     (140     735  
Reclassification to net (income) loss, net of deferred taxes of $36 and $33
     (68     (60
    
 
 
   
 
 
 
Derivatives qualifying as effective accounting hedges as of June 30
   $ 2,003     $ 2,677  
    
 
 
   
 
 
 
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (loss) for Effects of Derivatives Not Designated as Hedges
The following table provides the pre-tax gain (loss) recognized in net income (loss) 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 (loss)
(Amounts in millions)
  
        2021        
   
        2020        
 
Interest rate swaps
   $ (1   $ (2   Net investment gains (losses)
Equity index options
     6       4     Net investment gains (losses)
Financial futures
     8       (123   Net investment gains (losses)
Other foreign currency contracts
     —         (2   Net investment gains (losses)
GMWB embedded derivatives
     2       129     Net investment gains (losses)
Fixed index annuity embedded derivatives
     (14     (45   Net investment gains (losses)
Indexed universal life embedded derivatives
     3       3     Net investment gains (losses)
    
 
 
   
 
 
     
Total derivatives not designated as hedges
   $ 4     $ (36    
    
 
 
   
 
 
     
 
    
Six months ended June 30,
   
Classification of gain (loss)
recognized
in net income (loss)
(Amounts in millions)
  
        2021        
   
        2020        
 
Interest rate swaps
   $ 3     $ (12   Net investment gains (losses)
Equity index options
     9       (9   Net investment gains (losses)
Financial futures
     (102     138     Net investment gains (losses)
Other foreign currency contracts
     —         8     Net investment gains (losses)
GMWB embedded derivatives
     107       (207   Net investment gains (losses)
Fixed index annuity embedded derivatives
     (18     (13   Net investment gains (losses)
Indexed universal life embedded derivatives
     13       7     Net investment gains (losses)
    
 
 
   
 
 
     
Total derivatives not designated as hedges
   $ 12     $ (88    
    
 
 
   
 
 
     
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, 2021
   
December 31, 2020
 
(Amounts in millions)
 
Derivative
assets
(1)
   
Derivative
liabilities 
(1)
   
Net
derivatives
   
Derivative
assets
(1)
   
Derivative
liabilities 
(1)
   
Net
derivatives
 
Amounts presented in the balance sheet:
                                               
Gross amounts recognized
  $ 353     $ 55     $ 298     $ 574     $ 26     $ 548  
Gross amounts offset in the balance sheet
    —         —         —         —         —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net amounts presented in the balance sheet
    353       55       298       574       26       548  
Gross amounts not offset in the balance sheet:
                                               
Financial instruments
(2)
    (42     (42     —         (20     (20     —    
Collateral received
    (238     —         (238     (401     —         (401
Collateral pledged
    —         (625     625       —         (505     505  
Over collateralization
    3       612       (609     2       499       (497
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net amount
  $ 76     $ —       $ 76     $ 155     $ —       $ 155  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Does not include amounts related to embedded derivatives as of June 30, 2021 and December 31, 2020.
(2)
 
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.
v3.21.2
Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2021
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 pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2021:
 
(Amounts in millions)
 
Fair value
   
Primary methodologies
 
Significant inputs
U.S. government, agencies andgovernment-sponsored enterprises
  $ 4,484     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
  $ 3,296     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
  $ 802     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
  $ 31,509     Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, 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
  $ 8,510     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
  $ 1,678     OAS-based 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
  $ 2,714    
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
  $ 2,446     Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers   Spreads to daily updated swap 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
 
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 date
s
 indicated:
 
    
June 30, 2021
 
(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
   $ 4,484      $ —        $ 4,484      $ —        $ —    
State and political subdivisions
     3,371        —          3,296        75        —    
Non-U.S. government
     802        —          802        —          —    
U.S. corporate:
                                            
Utilities
     5,091        —          4,249        842        —    
Energy
     2,952        —          2,875        77        —    
Finance and insurance
     8,989        —          8,328        661        —    
Consumer—non-cyclical
     6,224        —          6,115        109        —    
Technology and communications
     3,754        —          3,724        30        —    
Industrial
     1,572        —          1,552        20        —    
Capital goods
     2,870        —          2,811        59        —    
Consumer—cyclical
     1,994        —          1,855        139        —    
Transportation
     1,409        —          1,342        67        —    
Other
     434        —          236        198        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total U.S. corporate
     35,289        —          33,087        2,202        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Non-U.S. corporate:
                                            
Utilities
     945        —          597        348        —    
Energy
     1,399        —          1,247        152        —    
Finance and insurance
     2,400        —          2,198        202        —    
Consumer—non-cyclical
     745        —          671        74        —    
Technology and communications
     1,284        —          1,256        28        —    
Industrial
     1,140        —          1,046        94        —    
Capital goods
     642        —          461        181        —    
Consumer—cyclical
     353        —          206        147        —    
Transportation
     541        —          458        83        —    
Other
     1,295        —          1,242        53        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total non-U.S. corporate
     10,744        —          9,382        1,362        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Residential mortgage-backed
     1,691        —          1,678        13        —    
Commercial mortgage-backed
     2,734        —          2,714        20        —    
Other asset-backed
     2,534        —          2,446        88        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total fixed maturity securities
     61,649        —          57,889        3,760        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Equity securities
     147        48        61        38        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Other invested assets:
                                            
Derivative assets:
                                            
Interest rate swaps
     280        —          280        —          —    
Foreign currency swaps
     2        —          2        —          —    
Equity index options
     47        —          —          47        —    
Other foreign currency contracts
     24        —          24        —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative assets
     353        —          306        47        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Securities lending collateral
     105        —          105        —          —    
Short-term investments
     121        —          121        —          —    
Limited partnerships
     1,070        —          —          —          1,070  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total other invested assets
     1,649        —          532        47        1,070  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Reinsurance recoverable
(2)
     18        —          —          18        —    
Separate account assets
     6,202        6,202        —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total assets
   $ 69,665      $ 6,250      $ 58,482      $ 3,863      $ 1,070  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Limited partnerships that are measured at fair value using the NAV 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, 2020
 
(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
   $ 4,805      $ —        $ 4,805      $ —        $ —    
State and political subdivisions
     3,165        —          3,099        66        —    
Non-U.S. government
     854        —          854        —          —    
U.S. corporate:
                                            
Utilities
     5,194        —          4,352        842        —    
Energy
     2,883        —          2,755        128        —    
Finance and insurance
     9,102        —          8,495        607        —    
Consumer—non-cyclical
     6,437        —          6,328        109        —    
Technology and communications
     3,761        —          3,714        47        —    
Industrial
     1,602        —          1,562        40        —    
Capital goods
     2,991        —          2,931        60        —    
Consumer—cyclical
     1,947        —          1,797        150        —    
Transportation
     1,500        —          1,430        70        —    
Other
     440        —          221        219        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total U.S. corporate
     35,857        —          33,585        2,272        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Non-U.S. corporate:
                                            
Utilities
     922        —          570        352        —    
Energy
     1,380        —          1,135        245        —    
Finance and insurance
     2,476        —          2,171        305        —    
Consumer—non-cyclical
     773        —          706        67        —    
Technology and communications
     1,291        —          1,263        28        —    
Industrial
     1,128        —          1,033        95        —    
Capital goods
     576        —          398        178        —    
Consumer—cyclical
     371        —          225        146        —    
Transportation
     570        —          461        109        —    
Other
     1,324        —          1,241        83        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total non-U.S. corporate
     10,811        —          9,203        1,608        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Residential mortgage-backed
     1,909        —          1,895        14        —    
Commercial mortgage-backed
     2,974        —          2,954        20        —    
Other asset-backed
     3,120        —          3,011        109        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total fixed maturity securities
     63,495        —          59,406        4,089        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Equity securities
     386        276        59        51        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Other invested assets:
                                            
Derivative assets:
                                            
Interest rate swaps
     468        —          468        —          —    
Foreign currency swaps
     1        —          1        —          —    
Equity index options
     63        —          —          63        —    
Other foreign currency contracts
     42        —          42        —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative assets
     574        —          511        63        —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Securities lending collateral
     67        —          67        —          —    
Short-term investments
     45        25        20        —          —    
Limited partnerships
     835        —          —          —          835  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total other invested assets
     1,521        25        598        63        835  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Reinsurance recoverable
(2)
     26        —          —          26        —    
Separate account assets
     6,081        6,081        —          —          —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total assets
   $ 71,509      $ 6,382      $ 60,063      $ 4,229      $ 835  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Limited partnerships that are measured at fair value using the NAV 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.
 
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,
2021
   
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,
2021
   
Total gains
(losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 68     $ 1     $ 6     $ —       $ —       $ —       $ —       $ —       $ —       $ 75     $ 1     $ 6  
U.S. corporate:
                                                                                               
Utilities
    793       —         23       8       —         —         (1     19       —         842       —         23  
Energy
    122       —         8       —         —         —         (1     —         (52     77       —         4  
Finance and insurance
    597       —         17       55       —         —         (8     —         —         661       —         17  
Consumer—non-cyclical
    106       —         2       —         —         —         (2     3       —         109       —         1  
Technology and communications
    40       —         2       —         —         —         —         —         (12     30       —         1  
Industrial
    20       —         —         —         —         —         —         —         —         20       —         —    
Capital goods
    58       —         1       —         —         —         —         —         —         59       —         1  
Consumer—cyclical
    147       —         1       —         —         —         (1     —         (8     139       —         1  
Transportation
    67       —         1       —         —         —         (1     —         —         67       —         1  
Other
    200       —         —         —         —         —         (2     —         —         198       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,150       —         55       63       —         —         (16     22       (72     2,202       —         50  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    375       —         5       —         —         —         (8     —         (24     348       —         4  
Energy
    243       —         10       —         —         —         (22     —         (79     152       —         5  
Finance and insurance
    290       —         17       —         (2     —         (52     —         (51     202       1       5  
Consumer—non-cyclical
    66       —         —         8       —         —         —         —         —         74       —         —    
Technology and communications
    28       —         —         —         —         —         —         —         —         28       —         —    
Industrial
    93       —         1       —         —         —         —         —         —         94       —         1  
Capital goods
    175       —         1       5       —         —         —         —         —         181       —         2  
Consumer—cyclical
    144       —         2       1       —         —         —         —         —         147       —         2  
Transportation
    82       —         1       —         —         —         —         —         —         83       —         2  
Other
    80       —         1       —         —         —         (13     —         (15     53       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,576       —         38       14       (2     —         (95     —         (169     1,362       1       22  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    13       —         1       —         —         —         (1     —         —         13       —         —    
Commercial mortgage-backed
    19       —         —         1       —         —         —         —         —         20       —         1  
Other asset-backed
    96       —         1       —         —         —         (5     —         (4     88       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    3,922       1       101       78       (2     —         (117     22       (245     3,760       2       80  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    43       —         —         —         —         —         (5     —         —         38       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    53       6       —         5       —         —         (17     —         —         47       2       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    53       6       —         5       —         —         (17     —         —         47       2       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    53       6       —         5       —         —         (17     —         —         47       2       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    18       (1     —         —         —         1       —         —         —         18       (1     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 4,036     $ 6     $ 101     $ 83     $ (2   $ 1     $ (139   $ 22     $ (245   $ 3,863     $ 3     $ 80  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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,
2020
   
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,
2020
   
Total gains (losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 83     $ —       $ 7     $ —       $ —       $ —       $ —       $ —       $ (27   $ 63     $ 1     $ 6  
Non-U.S. government
    1       —         —         —         —         —         (1     —         —         —         —         —    
U.S. corporate:
                                                                                               
Utilities
    843       —         37       32       —         —         (2     26       —         936       —         37  
Energy
    124       1       13       —         —         —         (2     —         (13     123       —         9  
Finance and insurance
    510       —         33       21       —         —         (12     —         (1     551       —         33  
Consumer—non-cyclical
    88       —         8       8       —         —         (1     —         —         103       —         8  
Technology and communications
    61       —         5       —         —         —         —         —         —         66       —         5  
Industrial
    37       —         2       —         —         —         —         —         —         39       —         2  
Capital goods
    90       —         7       —         —         —         —         —         —         97       —         7  
Consumer—cyclical
    179       —         11       —         —         —         (1     9       —         198       —         11  
Transportation
    43       —         2       —         —         —         (1     10       —         54       —         2  
Other
    138       —         2       —         —         —         (2     27       —         165       —         2  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,113       1       120       61       —         —         (21     72       (14     2,332       —         116  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    355       —         23       1       —         —         —         —         (22     357       —         23  
Energy
    236       —         22       —         —         —         (26     5       —         237       —         22  
Finance and insurance
    223       1       50       —         —         —         —         37       —         311       1       49  
Consumer—non-cyclical
    58       —         5       —         —         —         —         —         (9     54       —         4  
Technology and communications
    27       —         1       —         —         —         —         —         —         28       —         1  
Industrial
    92       —         8       —         —         —         —         —         (8     92       —         7  
Capital goods
    135       —         9       —         —         —         —         29       —         173       —         9  
Consumer—cyclical
    164       —         12       —         —         —         (3     —         (17     156       —         11  
Transportation
    108       —         11       —         —         —         —         22       —         141       —         11  
Other
    131       —         9       5       —         —         —         —         —         145       —         9  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,529       1       150       6       —         —         (29     93       (56     1,694       1       146  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    24       —         1       —         —         —         (1     3       (3     24       —         —    
Commercial mortgage-backed
    —         —         1       —         —         —         —         20       —         21       —         1  
Other asset-backed
    87       —         2       2       —         —         (1     —         —         90       —         3  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    3,837       2       281       69       —         —         (53     188       (100     4,224       2       272  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    50       —         —         6       (3     —         —         —         —         53       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    62       4       —         7       —         —         (7     —         —         66       8       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    62       4       —         7       —         —         (7     —         —         66       8       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    62       4       —         7       —         —         (7     —         —         66       8       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    47       (9     —         —         —         —         —         —         —         38       (9     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 3,996     $ (3   $ 281     $ 82     $ (3   $ —       $ (60   $ 188     $ (100   $ 4,381     $ 1     $ 272  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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,
2021
   
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,
2021
   
Total gains (losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 66     $ 2     $ 7     $ —       $ —       $ —       $ —       $ —       $ —       $ 75     $ 2     $ 7  
U.S. corporate:
                                                                                               
Utilities
    842       —         (7     16       —         —         (14     19       (14     842       —         (6
Energy
    128       —         4       —         —         —         (3     —         (52     77       —         —    
Finance and insurance
    607       —         (5     73       —         —         (25     17       (6     661       —         (5
Consumer—non-cyclical
    109       —         (1     —         —         —         (2     3       —         109       —         (2
Technology and communications
    47       —         —         12       —         —         —         4       (33     30       —         (1
Industrial
    40       —         —         —         —         —         (20     —         —         20       —         —    
Capital goods
    60       —         (1     —         —         —         —         —         —         59       —         (1
Consumer—cyclical
    150       —         (1     —         —         —         (2     —         (8     139       —         (1
Transportation
    70       —         —         —         —         —         (3     —         —         67       —         —    
Other
    219       —         (2     —         —         —         (5     6       (20     198       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,272       —         (13     101       —         —         (74     49       (133     2,202       —         (16
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    352       —         (2     30       —         —         (8     —         (24     348       —         (3
Energy
    245       —         8       —         —         —         (22     —         (79     152       —         3  
Finance and insurance
    305       1       1       —         (2     —         (52     —         (51     202       2       (11
Consumer—non-cyclical
    67       —         (1     8       —         —         —         —         —         74       —         (1
Technology and communications
    28       —         —         —         —         —         —         —         —         28       —         —    
Industrial
    95       —         (1     —         —         —         —         —         —         94       —         (1
Capital goods
    178       —         (2     5       —         —         —         —         —         181       —         (1
Consumer—cyclical
    146       —         —         17       —         —         —         —         (16     147       —         —    
Transportation
    109       —         —         —         —         —         (19     —         (7     83       —         1  
Other
    83       —         (1     —         —         —         (14     —         (15     53       —         (1
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,608       1       2       60       (2     —         (115     —         (192     1,362       2       (14
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    14       —         —         —         —         —         (1     —         —         13       —         —    
Commercial mortgage-backed
    20       —         (1     1       —         —         —         —         —         20       —         (1
Other asset-backed
    109       —         1       3       —         —         (9     2       (18     88       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    4,089       3       (4     165       (2     —         (199     51       (343     3,760       4       (23
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    51       —         —         —         (8     —         (5     —         —         38       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    63       9       —         10       —         —         (35     —         —         47       4       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    63       9       —         10       —         —         (35     —         —         47       4       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    63       9       —         10       —         —         (35     —         —         47       4       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    26       (9     —         —         —         1       —         —         —         18       (9     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 4,229     $ 3     $ (4   $ 175     $ (10   $ 1     $ (239   $ 51     $ (343   $ 3,863     $ (1   $ (23
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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,
2020
   
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,
2020
   
Total gains (losses)
attributable to
assets still held
 
 
Included
in net
income
(loss)
   
Included
in OCI
   
Included
in net
income
(loss)
   
Included
in OCI
 
Fixed maturity securities:
                                                                                               
State and political subdivisions
  $ 102     $ 1     $ (12   $ —       $ —       $ —       $ (1   $ —       $ (27   $ 63     $ 2     $ (13
Non-U.S. government
    —         —         —         —         —         —         (1     1       —         —         —         —    
U.S. corporate:
                                                                                               
Utilities
    865       —         12       32       —         —         (2     42       (13     936       —         14  
Energy
    129       1       (2     10       (21     —         (3     22       (13     123       —         (5
Finance and insurance
    572       2       2       21       —         —         (24     —         (22     551       —         5  
Consumer—non-cyclical
    94       —         2       8       —         —         (1     —         —         103       —         2  
Technology and communications
    50       —         1       20       —         —         —         —         (5     66       —         2  
Industrial
    40       —         (1     —         —         —         —         —         —         39       —         (1
Capital goods
    102       —         (1     —         —         —         (4     —         —         97       —         (1
Consumer—cyclical
    173       —         4       —         —         —         (3     24       —         198       —         4  
Transportation
    78       —         (2     —         —         —         (2     10       (30     54       —         1  
Other
    136       —         1       5       —         —         (4     27       —         165       —         1  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total U.S. corporate
    2,239       3       16       96       (21     —         (43     125       (83     2,332       —         22  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-U.S. corporate:
                                                                                               
Utilities
    374       —         3       12       —         —         —         21       (53     357       —         3  
Energy
    247       —         (8     —         —         —         (26     24       —         237       —         (8
Finance and insurance
    234       2       9       15       —         —         —         58       (7     311       2       10  
Consumer—non-cyclical
    59       —         2       8       —         —         —         1       (16     54       —         1  
Technology and communications
    28       —         —         —         —         —         —         —         —         28       —         —    
Industrial
    104       —         1       —         —         —         (5     —         (8     92       —         —    
Capital goods
    161       1       (2     —         —         —         (16     29       —         173       —         (1
Consumer—cyclical
    147       —         (3     4       —         —         (7     32       (17     156       —         (5
Transportation
    191       —         2       —         —         —         —         22       (74     141       —         6  
Other
    140       —         —         5       —         —         (1     1       —         145       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total non-U.S. corporate
    1,685       3       4       44       —         —         (55     188       (175     1,694       2       6  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Residential mortgage-backed
    27       —         —         —         —         —         (1     4       (6     24       —         —    
Commercial mortgage-backed
    6       —         2       —         —         —         —         20       (7     21       —         1  
Other asset-backed
    93       —         (2     8       —         —         (8     —         (1     90       —         (2
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total fixed maturity securities
    4,152       7       8       148       (21     —         (109     338       (299     4,224       4       14  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity securities
    51       —         —         6       (4     —         —         —         —         53       —         —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other invested assets:
                                                                                               
Derivative assets:
                                                                                               
Equity index options
    81       (9     —         18       —         —         (24     —         —         66       5       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total derivative assets
    81       (9     —         18       —         —         (24     —         —         66       5       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other invested assets
    81       (9     —         18       —         —         (24     —         —         66       5       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Reinsurance recoverable
(2)
    20       17       —         —         —         1       —         —         —         38       17       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 assets
  $ 4,304     $ 15     $ 8     $ 172     $ (25   $ 1     $ (133   $ 338     $ (299   $ 4,381     $ 26     $ 14  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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 (loss) 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)
  
2021
    
2020
    
2021
    
2020
 
Total realized and unrealized gains (losses) included in net income (loss):
                                   
Net investment income
   $ 1      $ 2      $ 3      $ 6  
Net investment gains (losses)
     5        (5      —          9  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 6      $ (3    $ 3      $ 15  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total gains (losses) included in net income (loss) attributable to assets still held:
                                   
Net investment income
   $ 2      $ 2      $ 4      $ 4  
Net investment gains (losses)
     1        (1      (5      22  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 3      $ 1      $ (1    $ 26  
    
 
 
    
 
 
    
 
 
    
 
 
 
Summary of Significant Unobservable Inputs Used for Certain Asset 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, 2021:
 
(Amounts in millions)
  
Valuation
technique
    
Fair
value
    
Unobservable
input
    
Range
    
Weighted-
average
(1)
 
Fixed maturity securities:
                                            
U.S. corporate:
                                            
Utilities
     Internal models      $ 807        Credit spreads       
47bps - 210bps
       124bps  
Energy
     Internal models        66        Credit spreads        57bps - 203bps        128bps  
Finance and insurance
     Internal models        644        Credit spreads        44bps - 171bps        113bps  
Consumer—non-cyclical
     Internal models        109        Credit spreads        52bps - 203bps        117bps  
Technology and communications
     Internal models        30        Credit spreads        72bps - 150bps        122bps  
Industrial
     Internal models        21        Credit spreads        85bps - 159bps        127bps  
Capital goods
     Internal models        59        Credit spreads        62bps - 159bps        112bps  
Consumer—cyclical
     Internal models        138        Credit spreads        81bps - 156bps        122bps  
Transportation
     Internal models        55        Credit spreads        46bps - 134bps        87bps  
Other
     Internal models        177        Credit spreads        63bps - 143bps        82bps  
             
 
 
                            
Total U.S. corporate
     Internal models      $ 2,106        Credit spreads        44bps - 210bps        115bps  
             
 
 
                            
Non-U.S. corporate:
                                            
Utilities
     Internal models      $ 347        Credit spreads        58bps - 210bps        109bps  
Energy
     Internal models        140        Credit spreads        62bps - 187bps        113bps  
Finance and insurance
     Internal models        160        Credit spreads        78bps - 111bps        93bps  
Consumer—non-cyclical
     Internal models        72        Credit spreads        52bps - 121bps        89bps  
Technology and communications
     Internal models        28        Credit spreads        62bps - 106bps        89bps  
Industrial
     Internal models        94        Credit spreads        57bps - 156bps        98bps  
Capital goods
     Internal models        152        Credit spreads        52bps - 187bps        100bps  
Consumer—cyclical
     Internal models        61        Credit spreads        81bps - 156bps        111bps  
Transportation
     Internal models        83        Credit spreads        52bps - 156bps        85bps  
Other
     Internal models        54        Credit spreads        66bps - 343bps        123bps  
             
 
 
                            
Total non-U.S. corporate
     Internal models      $ 1,191        Credit spreads       
52bps - 343bps
       103bps  
             
 
 
                            
Derivative assets:
                                            
Equity index options
     Discounted cash flows  
 
   $ 47        Equity index
volatility
 
 
     6% - 48%        27%  
 
(1)
 
Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets.
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, 2021
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Liabilities
                                   
Policyholder account balances:
                                   
GMWB embedded derivatives
(1)
   $ 275      $ —        $ —        $ 275  
Fixed index annuity embedded derivatives
     339        —          —          339  
Indexed universal life embedded derivatives
     24        —          —          24  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total policyholder account balances
     638        —          —          638  
    
 
 
    
 
 
    
 
 
    
 
 
 
Derivative liabilities:
                                   
Interest rate swaps
     53        —          53        —    
Foreign currency swaps
     2        —          2        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative liabilities
     55        —          55        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total liabilities
   $ 693      $ —        $ 55      $ 638  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
 
    
December 31, 2020
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Liabilities
                                   
Policyholder account balances:
                                   
GMWB embedded derivatives
(1)
   $ 379      $ —        $ —        $ 379  
Fixed index annuity embedded derivatives
     399        —          —          399  
Indexed universal life embedded derivatives
     26        —          —          26  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total policyholder account balances
     804        —          —          804  
    
 
 
    
 
 
    
 
 
    
 
 
 
Derivative liabilities:
                                   
Interest rate swaps
     23        —          23        —    
Foreign currency swaps
     2        —          2        —    
Other foreign currency contracts
     1        —          1        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total derivative liabilities
     26        —          26        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total liabilities
   $ 830      $ —        $ 26      $ 804  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(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:
 
   
Beginning
balance

as of
April 1,
2021
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June
30,
2021
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 272     $ (3   $ —       $ —       $ —       $ 6     $ —       $ —       $ —       $ 275     $ (4   $ —    
Fixed index annuity embedded derivatives
    362       14       —         —         —         —         (37     —         —         339       14       —    
Indexed universal life embedded derivatives
    23       (3     —         —         —         4       —         —         —         24       (3     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    657       8       —         —         —         10       (37     —         —         638       7       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 657     $ 8     $ —       $ —       $ —       $ 10     $ (37   $ —       $ —       $ 638     $ 7     $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
 
   
Beginning
balance

as of
April 1,
2020
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June 30,
2020
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 691     $ (138   $ —       $ —       $ —       $ 6     $ —       $ —       $ —       $ 559     $ (137   $ —    
Fixed index annuity embedded derivatives
    413       45       —         —         —         —         (11     —         —         447       45       —    
Indexed universal life embedded derivatives
    21       (3     —         —         —         5       —         —         —         23       (3     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    1,125       (96     —         —         —         11       (11     —         —         1,029       (95     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 1,125     $ (96   $ —       $ —       $ —       $ 11     $ (11   $ —       $ —       $ 1,029     $ (95   $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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:
 
   
Beginning
balance

as of
January
1, 2021
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June
30,
2021
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 379     $ (116   $ —       $ —       $ —       $ 12     $ —       $ —       $ —       $ 275     $ (111   $ —    
Fixed index annuity embedded derivatives
    399       18       —         —         —         —         (78     —         —         339       18       —    
Indexed universal life embedded derivatives
    26       (13     —         —         —         11       —         —         —         24       (13     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    804       (111     —         —         —         23       (78     —         —         638       (106     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 804     $ (111   $ —       $ —       $ —       $ 23     $ (78   $ —       $ —       $ 638     $ (106   $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
 
   
Beginning
balance

as of
January 1,
2020
   
Total realized and
unrealized (gains)
losses
                           
Transfer
into
Level 3
   
Transfer
out of
Level 3
   
Ending
balance

as of
June 30,
2020
   
Total (gains)
losses attributable
to liabilities still
held
 
(Amounts in millions)
 
Included
in net
(income)
loss
   
Included
in OCI
   
Purchases
   
Sales
   
Issuances
   
Settlements
   
Included
in net
(income)
loss
   
Included
in OCI
 
Policyholder account balances:
                                                                                               
GMWB embedded derivatives 
(1)
  $ 323     $ 224     $ —       $ —       $ —       $ 12     $ —       $ —       $ —       $ 559     $ 231     $ —    
Fixed index annuity embedded derivatives
    452       13       —         —         —         —         (18     —         —         447       13       —    
Indexed universal life embedded derivatives
    19       (7     —         —         —         11       —         —         —         23       (7     —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total policyholder account balances
    794       230       —         —         —         23       (18     —         —         1,029       237       —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Level 3 liabilities
  $ 794     $ 230     $ —       $ —       $ —       $ 23     $ (18   $ —       $ —       $ 1,029     $ 237     $ —    
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
(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) loss 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)
 
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Total realized and unrealized (gains) losses included in net (income) loss:
                               
Net investment income
  $ —       $ —       $ —       $ —    
Net investment (gains) losses
    8       (96     (111     230  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $ 8     $ (96   $ (111   $ 230  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total (gains) losses included in net (income) loss attributable to liabilities still held:
                               
Net investment income
  $ —       $ —       $ —       $ —    
Net investment (gains) losses
    7       (95     (106     237  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $ 7     $ (95   $ (106   $ 237  
   
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements
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, 2021:
 
(Amounts in millions)
  
Valuation technique
  
Fair
value
    
Unobservable input
  
Range
  
Weighted-
average
(1)
Policyholder account balances:
                            
                   Withdrawal utilization rate    59% - 88%    75%
                   Lapse rate    2% - 9%    4%
                  
Non-performance risk
(credit spreads)
  
14bps - 83bps
   65bps
GMWB embedded derivatives 
(2)
   Stochastic cash flow model    $ 275      Equity index volatility    16% - 26%    22%
Fixed index annuity embedded derivatives
   Option budget method    $ 339      Expected future interest credited    —  % - 3%    1%
Indexed universal life embedded derivatives
   Option budget method    $ 24      Expected future interest credited    3% - 9%    5%
 
(1)
 
Unobservable inputs weighted by the policyholder account balances associated with the instrument.
(2)
 
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs.
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, 2021
 
    
Notional

amount
   
Carrying

amount
    
Fair value
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Assets:
                                                    
Commercial mortgage loans, net
                 
(1)
 
  $ 6,879      $ 7,270      $ —        $ —        $ 7,270  
Bank loan investments
                 
(1)
 
    308        314        —          —          314  
Liabilities:
                                                    
Long-term borrowings
                 
(1)
 
    2,924        2,813        —          2,813        —    
Investment contracts
                 
(1)
 
    9,360        10,172        —          —          10,172  
Other firm commitments:
                                                    
Commitments to fund limited partnerships
     1,187       —          —          —          —          —    
Commitments to fund bank loan investments
     273       —          —          —          —          —    
Ordinary course of business lending commitments
     156       —          —          —          —          —    
 
(1)
 
These financial instruments do not have notional amounts.
 
    
December 31, 2020
 
    
Notional

amount
   
Carrying

amount
    
Fair value
 
(Amounts in millions)
  
Total
    
Level 1
    
Level 2
    
Level 3
 
Assets:
                                                    
Commercial mortgage loans, net
                 
(1)
 
  $ 6,743      $ 7,145      $ —        $ —        $ 7,145  
Bank loan investments
                 
(1)
 
    344        354        —          —          354  
Liabilities:
                                                    
Long-term borrowings
                 
(1)
 
    3,403        3,090        —          3,090        —    
Investment contracts
                 
(1)
 
    10,276        11,353        —          —          11,353  
Other firm commitments:
                                                    
Commitments to fund limited partnerships
     1,090       —          —          —          —          —    
Commitments to fund bank loan investments
     32       —          —          —          —          —    
Ordinary course of business lending commitments
     117       —          —          —          —          —    
 
(1)
 
These financial instruments do not have notional amounts.
 
v3.21.2
Liability for Policy and Contract Claims (Tables)
6 Months Ended
Jun. 30, 2021
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)
  
2021
    
2020
 
Beginning balance
   $ 11,486      $ 10,750  
Less reinsurance recoverables
     (2,431      (2,406
    
 
 
    
 
 
 
Net beginning balance
     9,055        8,344  
    
 
 
    
 
 
 
Incurred related to insured events of:
                 
Current year
     1,991        2,178  
Prior years
     (332      (258
    
 
 
    
 
 
 
Total incurred
     1,659        1,920  
    
 
 
    
 
 
 
Paid related to insured events of:
                 
Current year
     (477      (434
Prior years
     (1,255      (1,298
    
 
 
    
 
 
 
Total paid
     (1,732      (1,732
    
 
 
    
 
 
 
Interest on liability for policy and contract claims
     202        205  
Foreign currency translation
     —          (2
    
 
 
    
 
 
 
Net ending balance
     9,184        8,735  
Add reinsurance recoverables
     2,362        2,319  
    
 
 
    
 
 
 
Ending balance
   $ 11,546      $ 11,054  
    
 
 
    
 
 
 
v3.21.2
Borrowings (Tables)
6 Months Ended
Jun. 30, 2021
Schedule of Long Term Borrowings
The following table sets forth total long-term borrowings as of the dates indicated:
 
(Amounts in millions)
  
June 30,
2021
    
December 31,
2020
 
Genworth Holdings
(1)
                 
7.20% Senior Notes, due 2021
   $ —        $ 338  
7.625% Senior Notes, due 2021
     514        660  
4.90% Senior Notes, due 2023
     400        400  
4.80% Senior Notes, due 2024
     400        400  
6.50% Senior Notes, due 2034
     297        297  
Floating Rate Junior Subordinated Notes, due 2066
     598        598  
    
 
 
    
 
 
 
Subtotal
     2,209        2,693  
Bond consent fees
     (16      (19
Deferred borrowing charges
     (8      (9
    
 
 
    
 
 
 
Total Genworth Holdings
     2,185        2,665  
    
 
 
    
 
 
 
Enact Holdings
                 
6.50% Senior Notes, due 2025
(2)
     750        750  
Deferred borrowing charges
     (11      (12
    
 
 
    
 
 
 
Total Enact Holdings
     739        738  
    
 
 
    
 
 
 
Total
   $ 2,924      $ 3,403  
    
 
 
    
 
 
 
 
(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 Enact Holdings, our wholly-owned U.S. mortgage insurance subsidiary, who has the option to redeem the notes in whole or in part at any time prior to February 15, 2025, by paying a make-whole premium plus accrued and unpaid interest.
v3.21.2
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2021
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,
 
    
    2021    
   
    2020    
   
2021
   
2020
(2)
 
Statutory U.S. federal income tax rate
     21.0     21.0     21.0     21.0
Increase (reduction) in rate resulting from:
                                
Swaps terminated prior to the TCJA
(1)
     2.1       9.2       2.9       97.2  
Stock-based compensation
     —         0.2       0.1       14.6  
Non-deductible expense
     0.7       1.3       0.6       14.5  
Tax favored investments
     (0.3     (1.6     (0.4     (16.3
Other, net
     (0.1     (0.6     —         7.5  
    
 
 
   
 
 
   
 
 
   
 
 
 
Effective rate
     23.4     29.5     24.2     138.5
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Tax Cuts and Jobs Act.
(2)
 
For the six months ended June 30, 2020, the effective tax rate of 138.5% and the associated higher percentages included in the effective tax rate reconciliation are principally due to the prior year low pre-tax income.
v3.21.2
Segment Information (Tables)
6 Months Ended
Jun. 30, 2021
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)
  
2021
    
2020
    
2021
    
2020
 
Revenues:
                                   
Enact segment
   $ 276      $ 274      $ 564      $ 535  
U.S. Life Insurance segment:
                                   
Long-term care insurance
     1,226        1,200        2,366        2,206  
Life insurance
     329        335        677        683  
Fixed annuities
     122        129        254        262  
    
 
 
    
 
 
    
 
 
    
 
 
 
U.S. Life Insurance segment
     1,677        1,664        3,297        3,151  
    
 
 
    
 
 
    
 
 
    
 
 
 
Runoff segment
     88        90        164        97  
    
 
 
    
 
 
    
 
 
    
 
 
 
Corporate and Other activities
     —          (25      1        29  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total revenues
   $ 2,041      $ 2,003      $ 4,026      $ 3,812  
    
 
 
    
 
 
    
 
 
    
 
 
 
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities
The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) 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)
  
2021
   
2020
   
2021
   
2020
 
Net income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 240     $ (441   $ 427     $ (507
Add: net income from continuing operations attributable to noncontrolling interests
     —         —         —         —    
Add: net income from discontinued operations attributable to noncontrolling interests
     —         23       8       17  
    
 
 
   
 
 
   
 
 
   
 
 
 
Net income (loss)
     240       (418     435       (490
Less: income (loss) from discontinued operations, net of taxes
     (5     (473     16       (485
    
 
 
   
 
 
   
 
 
   
 
 
 
Income (loss) from continuing operations
     245       55       419       (5
Less: net income from continuing operations attributable to noncontrolling interests
     —         —         —         —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders
     245       55       419       (5
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
                                
Net investment (gains) losses, net
(1)
     (70     (97     (103     (9
(Gains) losses on early extinguishment of debt
     —         (3     4       9  
Expenses related to restructuring
     5       1       26       2  
Taxes on adjustments
     14       21       16       —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 194     $ (23   $ 362     $ (3
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
For the three and six months ended June 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million and $(15) million, respectively.
    
Three months ended
June 30,
   
Six months ended
June 30,
 
(Amounts in millions)
  
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
                                
Enact segment
   $ 135     $ (3   $ 261     $ 145  
U.S. Life Insurance segment:
                                
Long-term care insurance
     98       48       193       49  
Life insurance
     (40     (81     (103     (158
Fixed annuities
     13       28       43       34  
    
 
 
   
 
 
   
 
 
   
 
 
 
U.S. Life Insurance segment
     71       (5     133       (75
    
 
 
   
 
 
   
 
 
   
 
 
 
Runoff segment
     15       24       27       11  
Corporate and Other activities
     (27     (39     (59     (84
    
 
 
   
 
 
   
 
 
   
 
 
 
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders
   $ 194     $ (23   $ 362     $ (3
    
 
 
   
 
 
   
 
 
   
 
 
 
Schedule of Revenue, Net Income and Assets by Geographic Location
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,
2021
    
December 31,
2020
 
Assets:
                 
Enact segment
   $ 5,845      $ 5,627  
U.S. Life Insurance segment
     82,522        84,671  
Runoff segment
     9,593        9,735  
Corporate and Other activities
     2,690        2,897  
    
 
 
    
 
 
 
Segment assets from continuing operations
     100,650        102,930  
Assets related to discontinued operations
     —          2,817  
    
 
 
    
 
 
 
Total assets
   $ 100,650      $ 105,747  
    
 
 
    
 
 
 
v3.21.2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables)
6 Months Ended
Jun. 30, 2021
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, 2021
   $ 1,919     $ 1,792     $ (36   $ 3,675  
OCI before reclassifications
     (54     245       2       193  
Amounts reclassified from (to) OCI
     —         (34     —         (34
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     (54     211       2       159  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021 before noncontrolling interests
     1,865       2,003       (34     3,834  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     —         —         —         —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021
   $ 1,865     $ 2,003     $ (34   $ 3,834  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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, 2020
   $ 1,140     $ 2,755     $ (80   $ 3,815  
OCI before reclassifications
     762       (48     73       787  
Amounts reclassified from (to) OCI
     (88     (30     —         (118
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     674       (78     73       669  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020 before noncontrolling interests
     1,814       2,677       (7     4,484  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     3       —         34       37  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020
   $ 1,811     $ 2,677     $ (41   $ 4,447  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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, 2021
   $ 2,214     $ 2,211     $ —       $ 4,425  
OCI before reclassifications
     (370     (140     138       (372
Amounts reclassified from (to) OCI
     (4     (68     —         (72
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     (374     (208     138       (444
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021 before noncontrolling interests
     1,840       2,003       138       3,981  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     (25     —         172       147  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2021
   $ 1,865     $ 2,003     $ (34   $ 3,834  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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, 2020
   $ 1,456     $ 2,002     $ (25   $ 3,433  
OCI before reclassifications
     448       735       (25     1,158  
Amounts reclassified from (to) OCI
     (94     (60     —         (154
    
 
 
   
 
 
   
 
 
   
 
 
 
Current period OCI
     354       675       (25     1,004  
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020 before noncontrolling interests
     1,810       2,677       (50     4,437  
    
 
 
   
 
 
   
 
 
   
 
 
 
Less: change in OCI attributable to noncontrolling interests
     (1     —         (9     (10
    
 
 
   
 
 
   
 
 
   
 
 
 
Balances as of June 30, 2020
   $ 1,811     $ 2,677     $ (41   $ 4,447  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(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)
 
    2021    
   
    2020    
   
    2021    
   
    2020    
 
Net unrealized investment (gains) losses:
                                   
Unrealized (gains) losses on investments
(1)
  $ —       $ (112   $ (5   $ (119   Net investment (gains) losses
Income taxes
    —         24       1       25     Provision for income taxes
   
 
 
   
 
 
   
 
 
   
 
 
     
Total
  $ —       $ (88   $ (4   $ (94    
   
 
 
   
 
 
   
 
 
   
 
 
     
Derivatives qualifying as hedges:
                                   
Interest rate swaps hedging assets
  $ (52   $ (46   $ (104   $ (89   Net investment income
Interest rate swaps hedging assets
    —         —         —         (4   Net investment (gains) losses
Income taxes
    18       16       36       33     Provision for income taxes
   
 
 
   
 
 
   
 
 
   
 
 
     
Total
  $ (34   $ (30   $ (68   $ (60    
   
 
 
   
 
 
   
 
 
   
 
 
     
 
(1)
 
Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.
v3.21.2
Discontinued Operations (Tables)
6 Months Ended
Jun. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Summary Of Balance Sheet Disclosures Relating To Disposal Group
The assets and liabilities related to Genworth Australia were segregated in our condensed consolidated balance sheet until deconsolidation. The major asset and liability categories of Genworth Australia were as follows for the periods indicated:
 
(Amounts in millions)
  
June 30,
2021
    
December 31,
2020
 
Assets
                 
Investments:
                 
Fixed maturity securities available-for-sale, at fair value
   $ —        $ 2,295  
Equity securities, at fair value
     —          90  
Other invested assets
     —          154  
    
 
 
    
 
 
 
Total investments
     —          2,539  
Cash, cash equivalents and restricted cash
     —          95  
Accrued investment income
     —          16  
Deferred acquisition costs
     —          42  
Intangible assets
     —          43  
Other assets
     —          40  
Deferred tax asset
     —          42  
    
 
 
    
 
 
 
Assets related to discontinued operations
   $ —        $ 2,817  
    
 
 
    
 
 
 
Liabilities
                 
Liability for policy and contract claims
   $ —        $ 331  
Unearned premiums
     —          1,193  
Other liabilities
     —          104  
Long-term borrowings
     —          145  
    
 
 
    
 
 
 
Liabilities related to discontinued operations
   $ —        $ 1,773  
    
 
 
    
 
 
 
Summary of Operating Results Related to Discontinued Operations
A summary of operating results related to Genworth Australia reported as discontinued operations was as follows for the periods indicated:
 
    
Three months
ended
June 30,
    
Six months
ended
June 30,
 
(Amounts in millions)
  
2021
    
2020
    
2021
   
2020
 
Revenues:
                                  
Premiums
   $ —        $ 62      $ 51     $ 131  
Net investment income
     —          7        4       18  
Net investment gains (losses)
     —          66        (5     13  
Policy fees and other income
     —          —          —         1  
    
 
 
    
 
 
    
 
 
   
 
 
 
Total revenues
     —          135        50       163  
    
 
 
    
 
 
    
 
 
   
 
 
 
Benefits and expenses:
                                  
Benefits and other changes in policy reserves
     —          39        11       63  
Acquisition and operating expenses, net of deferrals
     —          13        7       25  
Amortization of deferred acquisition costs and intangibles
     —          6        6       14  
Goodwill impairment
     —          5        —         5  
Interest expense
     —          2        1       3  
    
 
 
    
 
 
    
 
 
   
 
 
 
Total benefits and expenses
     —          65        25       110  
    
 
 
    
 
 
    
 
 
   
 
 
 
Income before income taxes and loss on sale
(1)
     —          70        25       53  
Provision for income taxes
     —          23        8       18  
    
 
 
    
 
 
    
 
 
   
 
 
 
Income before loss on sale
     —          47        17       35  
Loss on sale, net of taxes
     —          —          (3     —    
    
 
 
    
 
 
    
 
 
   
 
 
 
Income from discontinued operations, net of taxes
     —          47        14       35  
    
 
 
    
 
 
    
 
 
   
 
 
 
Less: net income from discontinued operations attributable to noncontrolling interests
     —          23        8       17  
    
 
 
    
 
 
    
 
 
   
 
 
 
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders
   $ —        $ 24      $ 6     $ 18  
    
 
 
    
 
 
    
 
 
   
 
 
 
 
(1)
 
The three months ended June 30, 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $37 million. The six months ended June 30, 2021 and 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $13 million and $28 million, respectively.
Assets and liabilities held for sale and operating results related to discontinued operations
The following table presents the remaining amounts owed to AXA under the settlement agreement, which are reflected as liabilities related to discontinued operations in our condensed consolidated balance sheets as of the periods presented:
 
(Amounts in millions)
  
British Pounds
   
U.S. Dollar
 
  
June 30,
2021
   
December 31,
2020
   
June 30,
2021
   
December 31,
2020
 
Installment payments due to AXA:
                                
June 2022:
                                
Beginning balance
   £ 159     £ 159     $ 217     $ 217  
Prepayments
(1)
     (159     —         (217     —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Ending balance
     —         159       —         217  
    
 
 
   
 
 
   
 
 
   
 
 
 
September 2022:
                                
Beginning balance
     187       158       256       217  
Prepayments
(1)
     (17     —         (28     —    
Amounts billed as future losses
     41       29       56       39  
Foreign exchange and other
     —         —         8       —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Ending balance
     211       187       292       256  
    
 
 
   
 
 
   
 
 
   
 
 
 
Total amounts due under the promissory note
     211       346       292       473  
Future claims:
                                
Estimated beginning balance
     79       107       108       146  
Change in estimated future claims
     —         1       —         1  
Less: Amounts billed
     (41     (29     (56     (39
    
 
 
   
 
 
   
 
 
   
 
 
 
Estimated future billings
     38       79       52       108  
    
 
 
   
 
 
   
 
 
   
 
 
 
Total amounts due to AXA under the settlement agreement
(2)
   £ 249     £ 425     $ 344     $ 581  
    
 
 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
On March 3, 2021, we completed the sale of Genworth Australia and received net proceeds of approximately AUD483 million ($370 million). The sale of Genworth Australia resulted in a mandatory principal payment of approximately £176 million ($245 million) related to our outstanding secured promissory note issued to AXA, dated as of July 20, 2020, as amended by the parties in connection with the Genworth Australia sale.
(2)
 
Amounts exclude accrued interest on the promissory note and certain other expenses. As of June 30, 2021, due principally to the mandatory payment made in connection with the Genworth Australia sale, we reduced the amount of accrued interest payable on the promissory note resulting in a reduction in the total amount owed to AXA of approximately $2 million.
v3.21.2
Formation of Genworth and Basis of Presentation - Additional Information (Detail)
shares in Millions, $ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2020
Jul. 31, 2021
USD ($)
Mar. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
Segment
shares
Jun. 30, 2021
$ / shares
Jun. 30, 2021
USD ($)
Apr. 01, 2013
Number of operating segments | Segment       3      
Domestic Insurance Subsidiaries | Minimum              
Dividends receivable           $ 50  
AXA Promissory Note Due September 2022 [Member]              
Debt instrument face amount           344  
Debt instrument, maturity month and year       2022-09      
Senior Notes Due [Member]              
Debt instrument face amount           400  
Senior Notes Due August 2023 [Member]              
Debt instrument, maturity month and year       2023-08      
Senior Notes Due February 2024 [Member]              
Debt instrument, maturity month and year       2024-02      
AXA Settlement Agreement              
Litigation Settlement, Expense       $ 10      
Genworth Mortgage Insurance Australia Limited              
Proceeds from divestiture of businesses and interests in affiliates     $ 370        
Genworth Holdings              
Percentage of subsidiary equity ownership             100.00%
Debt instrument, maturity month and year 2020-06            
Debt instrument interest payment on outstanding debt           60  
Unrestricted cash and cash equivalents           823  
Genworth Holdings | 7.625% Senior Notes, Due 2021              
Debt instrument face amount           $ 513  
Debt instrument interest rate           7.625%  
Debt instrument, maturity month and year       2021-09      
Genworth Holdings | Subsequent Event | 7.625% Senior Notes, Due 2021              
Debt instrument interest rate   7.625%          
Genworth Holdings | Subsequent Event | 7.625% Senior Notes, Due 2021 | Outstanding Principal Accrued Interest And Make Whole Premium              
Early repayment of senior debt   $ 532          
Genworth Australia              
Percentage of subsidiary equity ownership           52.00%  
Number of subsidiaries shares sold | shares       214.3      
Sale of stock price | $ / shares         $ 2.28    
AXA SA              
Redemption of secured debt     $ 247        
v3.21.2
Earning (Loss) Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Earnings Per Share [Abstract]        
Weighted-average shares used in basic earnings per share calculations 507.0 505.4 506.5 504.8
Stock options, restricted stock units and stock appreciation rights 8.0 7.1 7.9 0.0
Weighted-average shares used in diluted earnings per share calculations [1] 515.0 512.5 514.4 504.8
Income (loss) from continuing operations:        
Income (loss) from continuing operations $ 245 $ 55 $ 419 $ (5)
Less: net income from continuing operations attributable to noncontrolling interests 0 0 0 0
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders $ 245 $ 55 $ 419 $ (5)
Basic per share $ 0.48 $ 0.11 $ 0.83 $ (0.01)
Diluted per share $ 0.47 $ 0.11 $ 0.82 $ (0.01)
Income (loss) from discontinued operations:        
Income (loss) from discontinued operations, net of taxes $ (5) $ (473) $ 16 $ (485)
Less: net income from discontinued operations attributable to noncontrolling interests 0 23 8 17
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders $ (5) $ (496) $ 8 $ (502)
Basic per share $ (0.01) $ (0.98) $ 0.02 $ (0.99)
Diluted per share $ (0.01) $ (0.97) $ 0.02 $ (0.99)
Net income (loss):        
Income (loss) from continuing operations $ 245 $ 55 $ 419 $ (5)
Income (loss) from discontinued operations, net of taxes (5) (473) 16 (485)
Net income (loss) 240 (418) 435 (490)
Less: net income attributable to noncontrolling interests 0 23 8 17
Net income (loss) available to Genworth Financial, Inc.'s common stockholders $ 240 $ (441) $ 427 $ (507)
Basic per share [2] $ 0.47 $ (0.87) $ 0.84 $ (1.00)
Diluted per share $ 0.47 $ (0.86) $ 0.83 $ (1.00)
[1] Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.3 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, dilutive potential weighted-average common shares outstanding would have been 511.1 million.
[2] May not total due to whole number calculation.
v3.21.2
Earning (Loss) Per Share (Parenthetical) (Detail)
shares in Millions
6 Months Ended
Jun. 30, 2020
shares
Earnings Per Share Disclosure [Line Items]  
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) 6.3
Weighted-average number of diluted shares if not in a loss position 511.1
v3.21.2
Net Investment Income (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Net Investment Income [Line Items]        
Gross investment income before expenses and fees $ 866 $ 800 $ 1,687 $ 1,606
Expenses and fees (22) (21) (42) (45)
Net investment income 844 779 1,645 1,561
Fixed maturity securities—taxable        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 608 594 1,207 1,205
Fixed maturity securities—non-taxable        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 1 1 3 3
Equity Securities        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 2 2 5 4
Commercial mortgage loans        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 103 84 181 169
Policy Loans        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 40 49 90 98
Other invested assets        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees 112 66 201 113
Cash, cash equivalents, restricted cash and short-term investments        
Net Investment Income [Line Items]        
Gross investment income before expenses and fees $ 0 $ 4 $ 0 $ 14
v3.21.2
Net Investment Gains (Losses) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Available-for-sale fixed maturity securities:        
Realized gains $ 5 $ 103 $ 12 $ 105
Realized losses (4) (5) (7) (5)
Net realized gains (losses) on available-for-sale fixed maturity securities 1 98 5 100
Net change in allowance for credit losses on available-for-sale fixed maturity securities (4) (7) (6) (7)
Write-down of available-for-sale fixed maturity securities [1] 0 0 (1) 0
Net realized gains (losses) on equity securities sold (2) 0 (7) 0
Net unrealized gains (losses) on equity securities still held 6 5 (2) (7)
Limited partnerships 65 37 102 (3)
Commercial mortgage loans (1) 1 (2) 1
Derivative instruments [2] 4 (36) 12 (84)
Other 1 (5) 2 (6)
Total net investment gains (losses) $ 70 $ 93 $ 103 $ (6)
[1] Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis.
[2] See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).
v3.21.2
Net Investment Allowance for Credit Losses (Detail) - Fixed maturity securities - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]      
Beginning Balance $ 3 $ 0 $ 4
Increase from securities without allowance in previous periods 0 7 0
Increase (decrease) from securities with allowance in previous periods 4 0 6
Securities Sold (7) 0 (7)
Decrease due to change in intent or requirement to sell 0 0 0
Write-offs 0 0 (3)
Recoveries 0 0 0
Ending Balance 0 7 0
Non-U.S. corporate      
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]      
Beginning Balance 3 0 1
Increase from securities without allowance in previous periods 0 4 0
Increase (decrease) from securities with allowance in previous periods 4 0 6
Securities Sold (7) 0 (7)
Decrease due to change in intent or requirement to sell 0 0 0
Write-offs 0 0 0
Recoveries 0 0 0
Ending Balance 0 4 0
Commercial mortgage-backed      
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]      
Beginning Balance   0 3
Increase from securities without allowance in previous periods   3 0
Increase (decrease) from securities with allowance in previous periods   0 0
Securities Sold   0 0
Decrease due to change in intent or requirement to sell   0 0
Write-offs   0 (3)
Recoveries   0 0
Ending Balance $ 0 $ 3 $ 0
v3.21.2
Investments - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Schedule of Investments [Line Items]    
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 on nonaccrual status $ 0 $ 0
Total Assets 100,650 105,747
Modified or extended troubled debt restructurings $ 0 0
Limited Partnership Interests    
Schedule of Investments [Line Items]    
Minimum threshold ownership percentage of limited partnership interest, equity method 3.00%  
Limited Partnership Interests | Variable interest Entity, not primary beneficiary    
Schedule of Investments [Line Items]    
Total Assets $ 1,306 $ 1,018
Finance and insurance | Fixed maturity securities    
Schedule of Investments [Line Items]    
Percent of investment portfolio, greater than 10% 25.00%  
Utilities | Fixed maturity securities    
Schedule of Investments [Line Items]    
Percent of investment portfolio, greater than 10% 13.00%  
Consumer-non-cyclical | Fixed maturity securities    
Schedule of Investments [Line Items]    
Percent of investment portfolio, greater than 10% 15.00%  
Technology and Communications | Fixed maturity securities    
Schedule of Investments [Line Items]    
Percent of investment portfolio, greater than 10% 11.00%  
v3.21.2
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
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]            
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses [1] $ 8,538   $ 10,159      
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses [1] 0   (7)      
Adjustments to DAC, present value of future profits, sales inducements, benefit reserves and policyholder contract balances (6,169)   (7,302)      
Income taxes, net (504)   (611)      
Net unrealized investment gains (losses) 1,865   2,239      
Less: net unrealized investment gains (losses) attributable to noncontrolling interests 0   25      
Net unrealized investment gains (losses) $ 1,865 $ 1,919 $ 2,214 $ 1,811 $ 1,140 $ 1,456
[1] Excludes foreign exchange.
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Investments [Abstract]        
Net unrealized investment gains (losses), beginning of period $ 1,919 $ 1,140 $ 2,214 $ 1,456
Unrealized gains (losses) on investment securities 1,774 3,911 (1,609) 2,199
Adjustment to deferred acquisition costs 42 (111) (132) 57
Adjustment to present value of future profits 1 5 2 4
Adjustment to sales inducements 2 (34) 5 2
Adjustment to benefit reserves (1,887) (2,802) 1,258 (1,694)
Provision for income taxes 14 (207) 106 (120)
Change in unrealized gains (losses) on investment securities (54) 762 (370) 448
Reclassification adjustments to net investment (gains) losses, net of taxes of $0, $24, $1 and $25 0 (88) (4) (94)
Change in net unrealized investment gains (losses) (54) 674 (374) 354
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests 0 3 (25) (1)
Net unrealized investment gains (losses), end of period $ 1,865 $ 1,811 $ 1,865 $ 1,811
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items]        
Reclassification adjustments to net investment (gains) losses, taxes $ 0 $ 24 $ 1 $ 25
v3.21.2
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, 2021
Mar. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Mar. 31, 2020
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities $ 53,111   $ 53,417    
Fair value, fixed maturity securities 61,649   63,495    
Fixed maturity securities          
Schedule of Investments [Line Items]          
Amortized cost or cost, total 53,111   53,417    
Gross unrealized gains 8,604   10,138    
Gross unrealized losses (66)   (56)    
Fair value, total 61,649   63,495    
Allowance for credit losses 0 $ (3) (4) $ (7) $ 0
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 3,350   3,401    
Gross unrealized gains, fixed maturity securities 1,135   1,404    
Gross unrealized losses, fixed maturity securities (1)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 4,484   4,805    
Fixed maturity securities | State and Political Subdivisions          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 2,876   2,622    
Gross unrealized gains, fixed maturity securities 496   544    
Gross unrealized losses, fixed maturity securities (1)   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 3,371   3,165    
Fixed maturity securities | Non-U.S. government          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 712   728    
Gross unrealized gains, fixed maturity securities 94   130    
Gross unrealized losses, fixed maturity securities (4)   (4)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 802   854    
Fixed maturity securities | U.S. corporate          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 30,225   29,895    
Gross unrealized gains, fixed maturity securities 5,106   5,985    
Gross unrealized losses, fixed maturity securities (42)   (23)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 35,289   35,857    
Fixed maturity securities | U.S. corporate | Utilities          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 4,276   4,226    
Gross unrealized gains, fixed maturity securities 820   970    
Gross unrealized losses, fixed maturity securities (5)   (2)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 5,091   5,194    
Fixed maturity securities | U.S. corporate | Energy          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 2,573   2,532    
Gross unrealized gains, fixed maturity securities 388   367    
Gross unrealized losses, fixed maturity securities (9)   (16)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 2,952   2,883    
Fixed maturity securities | U.S. corporate | Finance and insurance          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 7,895   7,798    
Gross unrealized gains, fixed maturity securities 1,107   1,306    
Gross unrealized losses, fixed maturity securities (13)   (2)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 8,989   9,102    
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 5,128   5,115    
Gross unrealized gains, fixed maturity securities 1,100   1,323    
Gross unrealized losses, fixed maturity securities (4)   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 6,224   6,437    
Fixed maturity securities | U.S. corporate | Technology and communications          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 3,244   3,142    
Gross unrealized gains, fixed maturity securities 515   619    
Gross unrealized losses, fixed maturity securities (5)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 3,754   3,761    
Fixed maturity securities | U.S. corporate | Industrial          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,377   1,370    
Gross unrealized gains, fixed maturity securities 196   232    
Gross unrealized losses, fixed maturity securities (1)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,572   1,602    
Fixed maturity securities | U.S. corporate | Capital goods          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 2,424   2,456    
Gross unrealized gains, fixed maturity securities 447   535    
Gross unrealized losses, fixed maturity securities (1)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 2,870   2,991    
Fixed maturity securities | U.S. corporate | Consumer-cyclical          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,758   1,663    
Gross unrealized gains, fixed maturity securities 240   284    
Gross unrealized losses, fixed maturity securities (4)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,994   1,947    
Fixed maturity securities | U.S. corporate | Transportation          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,156   1,198    
Gross unrealized gains, fixed maturity securities 253   304    
Gross unrealized losses, fixed maturity securities 0   (2)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,409   1,500    
Fixed maturity securities | U.S. corporate | Other          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 394   395    
Gross unrealized gains, fixed maturity securities 40   45    
Gross unrealized losses, fixed maturity securities 0   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 434   440    
Fixed maturity securities | Non-U.S. corporate          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 9,401   9,245    
Gross unrealized gains, fixed maturity securities 1,357   1,578    
Gross unrealized losses, fixed maturity securities (14)   (11)    
Allowance for credit losses 0 $ (3) (1) (4) 0
Fair value, fixed maturity securities 10,744   10,811    
Fixed maturity securities | Non-U.S. corporate | Utilities          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 873   838    
Gross unrealized gains, fixed maturity securities 73   84    
Gross unrealized losses, fixed maturity securities (1)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 945   922    
Fixed maturity securities | Non-U.S. corporate | Energy          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,189   1,172    
Gross unrealized gains, fixed maturity securities 210   209    
Gross unrealized losses, fixed maturity securities 0   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,399   1,380    
Fixed maturity securities | Non-U.S. corporate | Finance and insurance          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 2,108   2,130    
Gross unrealized gains, fixed maturity securities 298   353    
Gross unrealized losses, fixed maturity securities (6)   (6)    
Allowance for credit losses 0   (1)    
Fair value, fixed maturity securities 2,400   2,476    
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 659   662    
Gross unrealized gains, fixed maturity securities 87   112    
Gross unrealized losses, fixed maturity securities (1)   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 745   773    
Fixed maturity securities | Non-U.S. corporate | Technology and communications          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,098   1,062    
Gross unrealized gains, fixed maturity securities 186   229    
Gross unrealized losses, fixed maturity securities 0   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,284   1,291    
Fixed maturity securities | Non-U.S. corporate | Industrial          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,003   969    
Gross unrealized gains, fixed maturity securities 138   159    
Gross unrealized losses, fixed maturity securities (1)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,140   1,128    
Fixed maturity securities | Non-U.S. corporate | Capital goods          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 574   510    
Gross unrealized gains, fixed maturity securities 69   67    
Gross unrealized losses, fixed maturity securities (1)   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 642   576    
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 325   331    
Gross unrealized gains, fixed maturity securities 29   41    
Gross unrealized losses, fixed maturity securities (1)   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 353   371    
Fixed maturity securities | Non-U.S. corporate | Transportation          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 467   483    
Gross unrealized gains, fixed maturity securities 74   88    
Gross unrealized losses, fixed maturity securities 0   (1)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 541   570    
Fixed maturity securities | Non-U.S. corporate | Other          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,105   1,088    
Gross unrealized gains, fixed maturity securities 193   236    
Gross unrealized losses, fixed maturity securities (3)   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,295   1,324    
Fixed maturity securities | Residential mortgage-backed          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 1,524   1,698    
Gross unrealized gains, fixed maturity securities 167   211    
Gross unrealized losses, fixed maturity securities 0   0    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities 1,691   1,909    
Fixed maturity securities | Commercial mortgage-backed          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 2,538   2,759    
Gross unrealized gains, fixed maturity securities 199   231    
Gross unrealized losses, fixed maturity securities (3)   (13)    
Allowance for credit losses 0   (3) $ (3) $ 0
Fair value, fixed maturity securities 2,734   2,974    
Fixed maturity securities | Other asset-backed          
Schedule of Investments [Line Items]          
Amortized cost or cost, fixed maturity securities 2,485   3,069    
Gross unrealized gains, fixed maturity securities 50   55    
Gross unrealized losses, fixed maturity securities (1)   (4)    
Allowance for credit losses 0   0    
Fair value, fixed maturity securities $ 2,534   $ 3,120    
v3.21.2
Gross Unrealized Losses and Fair Value of Investment Securities (Detail)
$ in Millions
Jun. 30, 2021
USD ($)
Securities
Dec. 31, 2020
USD ($)
Securities
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 2,486 $ 1,027
Less than 12 months, Gross unrealized losses $ (56) $ (42)
Less than 12 months, Number of securities in a continuous loss position | Securities 312 196
12 months or more, Fair value $ 165 $ 247
12 months or more, Gross unrealized losses $ (10) $ (7)
12 months or more, Number of securities in a continuous loss position | Securities 25 54
Fair value $ 2,651 $ 1,274
Gross unrealized losses $ (66) $ (49)
Number of securities in a continuous loss position | Securities 337 250
Investment grade    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 2,379 $ 852
Less than 12 months, Gross unrealized losses $ (50) $ (23)
Less than 12 months, Number of securities in a continuous loss position | Securities 293 163
12 months or more, Fair value $ 82 $ 207
12 months or more, Gross unrealized losses $ (4) $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 15 48
Fair value $ 2,461 $ 1,059
Gross unrealized losses $ (54) $ (25)
Number of securities in a continuous loss position | Securities 308 211
Below investment grade    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 107 $ 175
Less than 12 months, Gross unrealized losses $ (6) $ (19)
Less than 12 months, Number of securities in a continuous loss position | Securities 19 33
12 months or more, Fair value $ 83 $ 40
12 months or more, Gross unrealized losses $ (6) $ (5)
12 months or more, Number of securities in a continuous loss position | Securities 10 6
Fair value $ 190 $ 215
Gross unrealized losses $ (12) $ (24)
Number of securities in a continuous loss position | Securities 29 39
Fixed maturity securities    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 2,486 $ 1,027
Less than 12 months, Gross unrealized losses $ (56) $ (42)
Less than 12 months, Number of securities in a continuous loss position | Securities 312 196
12 months or more, Fair value $ 165 $ 247
12 months or more, Gross unrealized losses $ (10) $ (7)
12 months or more, Number of securities in a continuous loss position | Securities 25 54
Fair value $ 2,651 $ 1,274
Gross unrealized losses $ (66) $ (49)
Number of securities in a continuous loss position | Securities 337 250
Fixed maturity securities | Less Than 20 Percent Below Cost    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 2,479 $ 1,017
Less than 12 months, Gross unrealized losses $ (53) $ (35)
Less than 12 months, Number of securities in a continuous loss position | Securities 311 194
12 months or more, Fair value $ 160 $ 246
12 months or more, Gross unrealized losses $ (8) $ (6)
12 months or more, Number of securities in a continuous loss position | Securities 24 53
Fair value $ 2,639 $ 1,263
Gross unrealized losses $ (61) $ (41)
Number of securities in a continuous loss position | Securities 335 247
Fixed maturity securities | 20 To 50 percent below cost    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 7 $ 10
Less than 12 months, Gross unrealized losses $ (3) $ (7)
Less than 12 months, Number of securities in a continuous loss position | Securities 1 2
12 months or more, Fair value $ 5 $ 1
12 months or more, Gross unrealized losses $ (2) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 1 1
Fair value $ 12 $ 11
Gross unrealized losses $ (5) $ (8)
Number of securities in a continuous loss position | Securities 2 3
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 30  
Less than 12 months, Gross unrealized losses $ (1)  
Less than 12 months, Number of securities in a continuous loss position | Securities 5  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 30  
Gross unrealized losses $ (1)  
Number of securities in a continuous loss position | Securities 5  
Fixed maturity securities | State and Political Subdivisions    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 100 $ 28
Less than 12 months, Gross unrealized losses $ (1) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 32 6
12 months or more, Fair value $ 0 $ 0
12 months or more, Gross unrealized losses $ 0 $ 0
12 months or more, Number of securities in a continuous loss position | Securities 0 0
Fair value $ 100 $ 28
Gross unrealized losses $ (1) $ (1)
Number of securities in a continuous loss position | Securities 32 6
Fixed maturity securities | Non-U.S. government    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 112 $ 44
Less than 12 months, Gross unrealized losses $ (3) $ (4)
Less than 12 months, Number of securities in a continuous loss position | Securities 22 5
12 months or more, Fair value $ 18 $ 0
12 months or more, Gross unrealized losses $ (1) $ 0
12 months or more, Number of securities in a continuous loss position | Securities 1 0
Fair value $ 130 $ 44
Gross unrealized losses $ (4) $ (4)
Number of securities in a continuous loss position | Securities 23 5
Fixed maturity securities | U.S. corporate    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 1,482 $ 345
Less than 12 months, Gross unrealized losses $ (37) $ (20)
Less than 12 months, Number of securities in a continuous loss position | Securities 141 59
12 months or more, Fair value $ 59 $ 33
12 months or more, Gross unrealized losses $ (5) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 8 4
Fair value $ 1,541 $ 378
Gross unrealized losses $ (42) $ (23)
Number of securities in a continuous loss position | Securities 149 63
Fixed maturity securities | Non-U.S. corporate    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 434 $ 145
Less than 12 months, Gross unrealized losses $ (12) $ (4)
Less than 12 months, Number of securities in a continuous loss position | Securities 51 32
12 months or more, Fair value $ 35 $ 6
12 months or more, Gross unrealized losses $ (2) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 7 1
Fair value $ 469 $ 151
Gross unrealized losses $ (14) $ (5)
Number of securities in a continuous loss position | Securities 58 33
Fixed maturity securities | Commercial mortgage-backed    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 48 $ 227
Less than 12 months, Gross unrealized losses $ (1) $ (11)
Less than 12 months, Number of securities in a continuous loss position | Securities 6 34
12 months or more, Fair value $ 53 $ 1
12 months or more, Gross unrealized losses $ (2) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 9 1
Fair value $ 101 $ 228
Gross unrealized losses $ (3) $ (12)
Number of securities in a continuous loss position | Securities 15 35
Fixed maturity securities | Other asset-backed    
Schedule of Investments [Line Items]    
Less than 12 months, Fair value $ 280 $ 238
Less than 12 months, Gross unrealized losses $ (1) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 55 60
12 months or more, Fair value $ 0 $ 207
12 months or more, Gross unrealized losses $ 0 $ (2)
12 months or more, Number of securities in a continuous loss position | Securities 0 48
Fair value $ 280 $ 445
Gross unrealized losses $ (1) $ (4)
Number of securities in a continuous loss position | Securities 55 108
v3.21.2
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail)
$ in Millions
Jun. 30, 2021
USD ($)
Securities
Dec. 31, 2020
USD ($)
Securities
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 2,486 $ 1,027
Less than 12 months, Gross unrealized losses $ (56) $ (42)
Less than 12 months, Number of securities in a continuous loss position | Securities 312 196
12 months or more, Fair value $ 165 $ 247
12 months or more, Gross unrealized losses $ (10) $ (7)
12 months or more, Number of securities in a continuous loss position | Securities 25 54
Fair value $ 2,651 $ 1,274
Gross unrealized losses $ (66) $ (49)
Number of securities in a continuous loss position | Securities 337 250
Fixed maturity securities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 2,486 $ 1,027
Less than 12 months, Gross unrealized losses $ (56) $ (42)
Less than 12 months, Number of securities in a continuous loss position | Securities 312 196
12 months or more, Fair value $ 165 $ 247
12 months or more, Gross unrealized losses $ (10) $ (7)
12 months or more, Number of securities in a continuous loss position | Securities 25 54
Fair value $ 2,651 $ 1,274
Gross unrealized losses $ (66) $ (49)
Number of securities in a continuous loss position | Securities 337 250
Fixed maturity securities | U.S. corporate    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 1,482 $ 345
Less than 12 months, Gross unrealized losses $ (37) $ (20)
Less than 12 months, Number of securities in a continuous loss position | Securities 141 59
12 months or more, Fair value $ 59 $ 33
12 months or more, Gross unrealized losses $ (5) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 8 4
Fair value $ 1,541 $ 378
Gross unrealized losses $ (42) $ (23)
Number of securities in a continuous loss position | Securities 149 63
Fixed maturity securities | U.S. corporate | Utilities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 82 $ 49
Less than 12 months, Gross unrealized losses $ (5) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 17 9
12 months or more, Fair value $ 0 $ 0
12 months or more, Gross unrealized losses $ 0 $ 0
12 months or more, Number of securities in a continuous loss position | Securities 0 0
Fair value $ 82 $ 49
Gross unrealized losses $ (5) $ (2)
Number of securities in a continuous loss position | Securities 17 9
Fixed maturity securities | U.S. corporate | Energy    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 88 $ 106
Less than 12 months, Gross unrealized losses $ (4) $ (13)
Less than 12 months, Number of securities in a continuous loss position | Securities 10 19
12 months or more, Fair value $ 59 $ 33
12 months or more, Gross unrealized losses $ (5) $ (3)
12 months or more, Number of securities in a continuous loss position | Securities 8 4
Fair value $ 147 $ 139
Gross unrealized losses $ (9) $ (16)
Number of securities in a continuous loss position | Securities 18 23
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 $ 540 $ 128
Less than 12 months, Gross unrealized losses $ (13) $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities 42 15
12 months or more, Fair value $ 0 $ 0
12 months or more, Gross unrealized losses $ 0 $ 0
12 months or more, Number of securities in a continuous loss position | Securities 0 0
Fair value $ 540 $ 128
Gross unrealized losses $ (13) $ (2)
Number of securities in a continuous loss position | Securities 42 15
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 $ 202 $ 16
Less than 12 months, Gross unrealized losses $ (4) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 19 5
12 months or more, Fair value $ 0 $ 0
12 months or more, Gross unrealized losses $ 0 $ 0
12 months or more, Number of securities in a continuous loss position | Securities 0 0
Fair value $ 202 $ 16
Gross unrealized losses $ (4) $ (1)
Number of securities in a continuous loss position | Securities 19 5
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 $ 219  
Less than 12 months, Gross unrealized losses $ (5)  
Less than 12 months, Number of securities in a continuous loss position | Securities 22  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 219  
Gross unrealized losses $ (5)  
Number of securities in a continuous loss position | Securities 22  
Fixed maturity securities | U.S. corporate | Industrial    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 67  
Less than 12 months, Gross unrealized losses $ (1)  
Less than 12 months, Number of securities in a continuous loss position | Securities 6  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 67  
Gross unrealized losses $ (1)  
Number of securities in a continuous loss position | Securities 6  
Fixed maturity securities | U.S. corporate | Capital goods    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 95  
Less than 12 months, Gross unrealized losses $ (1)  
Less than 12 months, Number of securities in a continuous loss position | Securities 8  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 95  
Gross unrealized losses $ (1)  
Number of securities in a continuous loss position | Securities 8  
Fixed maturity securities | U.S. corporate | Consumer-cyclical    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 189  
Less than 12 months, Gross unrealized losses $ (4)  
Less than 12 months, Number of securities in a continuous loss position | Securities 17  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 189  
Gross unrealized losses $ (4)  
Number of securities in a continuous loss position | Securities 17  
Fixed maturity securities | U.S. corporate | Transportation    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value   $ 46
Less than 12 months, Gross unrealized losses   $ (2)
Less than 12 months, Number of securities in a continuous loss position | Securities   11
12 months or more, Fair value   $ 0
12 months or more, Gross unrealized losses   $ 0
12 months or more, Number of securities in a continuous loss position | Securities   0
Fair value   $ 46
Gross unrealized losses   $ (2)
Number of securities in a continuous loss position | Securities   11
Fixed maturity securities | Non-U.S. corporate    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 434 $ 145
Less than 12 months, Gross unrealized losses $ (12) $ (4)
Less than 12 months, Number of securities in a continuous loss position | Securities 51 32
12 months or more, Fair value $ 35 $ 6
12 months or more, Gross unrealized losses $ (2) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 7 1
Fair value $ 469 $ 151
Gross unrealized losses $ (14) $ (5)
Number of securities in a continuous loss position | Securities 58 33
Fixed maturity securities | Non-U.S. corporate | Utilities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 42  
Less than 12 months, Gross unrealized losses $ (1)  
Less than 12 months, Number of securities in a continuous loss position | Securities 6  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 42  
Gross unrealized losses $ (1)  
Number of securities in a continuous loss position | Securities 6  
Fixed maturity securities | Non-U.S. corporate | Energy    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value   $ 66
Less than 12 months, Gross unrealized losses   $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities   10
12 months or more, Fair value   $ 0
12 months or more, Gross unrealized losses   $ 0
12 months or more, Number of securities in a continuous loss position | Securities   0
Fair value   $ 66
Gross unrealized losses   $ (1)
Number of securities in a continuous loss position | Securities   10
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 $ 271  
Less than 12 months, Gross unrealized losses $ (6)  
Less than 12 months, Number of securities in a continuous loss position | Securities 28  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 271  
Gross unrealized losses $ (6)  
Number of securities in a continuous loss position | Securities 28  
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 $ 0 $ 0
Less than 12 months, Gross unrealized losses $ 0 $ 0
Less than 12 months, Number of securities in a continuous loss position | Securities 0 0
12 months or more, Fair value $ 6 $ 6
12 months or more, Gross unrealized losses $ (1) $ (1)
12 months or more, Number of securities in a continuous loss position | Securities 1 1
Fair value $ 6 $ 6
Gross unrealized losses $ (1) $ (1)
Number of securities in a continuous loss position | Securities 1 1
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 $ 43  
Less than 12 months, Gross unrealized losses $ (1)  
Less than 12 months, Number of securities in a continuous loss position | Securities 4  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 43  
Gross unrealized losses $ (1)  
Number of securities in a continuous loss position | Securities 4  
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 $ 0 $ 31
Less than 12 months, Gross unrealized losses $ 0 $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 0 8
12 months or more, Fair value $ 29 $ 0
12 months or more, Gross unrealized losses $ (1) $ 0
12 months or more, Number of securities in a continuous loss position | Securities 6 0
Fair value $ 29 $ 31
Gross unrealized losses $ (1) $ (1)
Number of securities in a continuous loss position | Securities 6 8
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 $ 32 $ 15
Less than 12 months, Gross unrealized losses $ (1) $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities 8 6
12 months or more, Fair value $ 0 $ 0
12 months or more, Gross unrealized losses $ 0 $ 0
12 months or more, Number of securities in a continuous loss position | Securities 0 0
Fair value $ 32 $ 15
Gross unrealized losses $ (1) $ (1)
Number of securities in a continuous loss position | Securities 8 6
Fixed maturity securities | Non-U.S. corporate | Transportation    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value   $ 33
Less than 12 months, Gross unrealized losses   $ (1)
Less than 12 months, Number of securities in a continuous loss position | Securities   8
12 months or more, Fair value   $ 0
12 months or more, Gross unrealized losses   $ 0
12 months or more, Number of securities in a continuous loss position | Securities   0
Fair value   $ 33
Gross unrealized losses   $ (1)
Number of securities in a continuous loss position | Securities   8
Fixed maturity securities | Non-U.S. corporate | Other    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 46  
Less than 12 months, Gross unrealized losses $ (3)  
Less than 12 months, Number of securities in a continuous loss position | Securities 5  
12 months or more, Fair value $ 0  
12 months or more, Gross unrealized losses $ 0  
12 months or more, Number of securities in a continuous loss position | Securities 0  
Fair value $ 46  
Gross unrealized losses $ (3)  
Number of securities in a continuous loss position | Securities 5  
Fixed maturity securities | Corporate Debt Securities    
Available for Sale Securities Continuous Unrealized Loss Position [Line Items]    
Less than 12 months, Fair value $ 1,916 $ 490
Less than 12 months, Gross unrealized losses $ (49) $ (24)
Less than 12 months, Number of securities in a continuous loss position | Securities 192 91
12 months or more, Fair value $ 94 $ 39
12 months or more, Gross unrealized losses $ (7) $ (4)
12 months or more, Number of securities in a continuous loss position | Securities 15 5
Fair value $ 2,010 $ 529
Gross unrealized losses $ (56) $ (28)
Number of securities in a continuous loss position | Securities 207 96
v3.21.2
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Amortized cost or cost    
Due one year or less $ 1,268  
Due after one year through five years 8,367  
Due after five years through ten years 13,587  
Due after ten years 23,342  
Subtotal 46,564  
Amortized cost or cost, fixed maturity securities 53,111 $ 53,417
Fair value    
Due one year or less 1,291  
Due after one year through five years 9,030  
Due after five years through ten years 15,158  
Due after ten years 29,211  
Subtotal 54,690  
Fair value, fixed maturity securities 61,649 $ 63,495
Residential mortgage-backed    
Amortized cost or cost    
Fixed maturity securities 1,524  
Fair value    
Fixed maturity securities 1,691  
Commercial mortgage-backed    
Amortized cost or cost    
Fixed maturity securities 2,538  
Fair value    
Fixed maturity securities 2,734  
Other asset-backed    
Amortized cost or cost    
Fixed maturity securities 2,485  
Fair value    
Fixed maturity securities $ 2,534  
v3.21.2
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 6,912 $ 6,774
% of total 100.00% 100.00%
Allowance for credit losses $ (33) $ (31)
Commercial mortgage loans, net 6,879 6,743
Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 6,912 $ 6,774
% of total 100.00% 100.00%
Allowance for credit losses $ (33) $ (31)
Commercial mortgage loans, net 6,879 6,743
South Atlantic | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,788 $ 1,711
% of total 26.00% 25.00%
Pacific | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,456 $ 1,510
% of total 21.00% 22.00%
Middle Atlantic | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 988 $ 994
% of total 14.00% 15.00%
Mountain | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 847 $ 781
% of total 12.00% 12.00%
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, amortized cost $ 466 $ 467
% 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, amortized cost $ 447 $ 441
% 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, amortized cost $ 455 $ 423
% of total 7.00% 6.00%
New England | Commercial Mortgage Loan    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 262 $ 260
% of total 4.00% 4.00%
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, amortized cost $ 203 $ 187
% of total 3.00% 3.00%
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 2,693 $ 2,442
% of total 39.00% 36.00%
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,558 $ 1,638
% of total 23.00% 24.00%
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,531 $ 1,567
% of total 22.00% 23.00%
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 573 $ 529
% of total 8.00% 8.00%
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 298 $ 286
% of total 4.00% 4.00%
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 259 $ 312
% of total 4.00% 5.00%
v3.21.2
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance     $ 31  
Ending balance $ 33   33  
Allowance for Credit Losses        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 32 $ 29 31 $ 13
Cumulative effect of change in accounting 0 0 0 16
Provision 1 (1) 2 (1)
Write-offs 0 0 0 0
Recoveries 0 0 0 0
Ending balance $ 33 $ 28 $ 33 $ 28
v3.21.2
Commercial Mortgage Loans By Year of Origination and Credit Quality Indicator (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment $ 6,912 $ 6,774
Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 6,912 6,774
0% - 50%    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,501 2,645
0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,501  
51% - 60%    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 1,548 1,628
51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 1,548  
61% - 75%    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,863 2,396
61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,863  
76% - 100%    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0 103
76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
Greater than 100%    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0 2
Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 178 216
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 500 526
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 1,042 992
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,851 2,590
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,341 $ 2,450
2021 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 529  
2021 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 7  
2021 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 19  
2021 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 503  
2021 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2021 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2021 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2021 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 3  
2021 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 91  
2021 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 385  
2021 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 50  
2020 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 536  
2020 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 59  
2020 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 51  
2020 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 426  
2020 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2020 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2020 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2020 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 52  
2020 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 81  
2020 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 281  
2020 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 122  
2019 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 762  
2019 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 25  
2019 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 88  
2019 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 649  
2019 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2019 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2019 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 8  
2019 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 67  
2019 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 230  
2019 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 289  
2019 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 168  
2018 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 950  
2018 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 102  
2018 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 344  
2018 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 504  
2018 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2018 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2018 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 27  
2018 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 53  
2018 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 200  
2018 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 441  
2018 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 229  
2017 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 666  
2017 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 157  
2017 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 236  
2017 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 273  
2017 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2017 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2017 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 12  
2017 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 42  
2017 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 57  
2017 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 302  
2017 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 253  
2016 and prior | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 3,469  
2016 and prior | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 2,151  
2016 and prior | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 810  
2016 and prior | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 508  
2016 and prior | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2016 and prior | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 0  
2016 and prior | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 131  
2016 and prior | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 283  
2016 and prior | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 383  
2016 and prior | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment 1,153  
2016 and prior | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member]    
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items]    
Commercial mortgage loans, recorded investment $ 1,519  
v3.21.2
Debt-to-Value of Commercial Mortgage Loans by Property Type (Detail)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 6,912 $ 6,774
Commercial mortgage loans, amortized cost $ 6,912 $ 6,774
% of total 100.00% 100.00%
Weighted-average debt service coverage ratio 1.96 1.97
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 2,693 $ 2,442
% of total 39.00% 36.00%
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,558 $ 1,638
% of total 23.00% 24.00%
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,531 $ 1,567
% of total 22.00% 23.00%
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 573 $ 529
% of total 8.00% 8.00%
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 298 $ 286
% of total 4.00% 4.00%
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 259 $ 312
% of total 4.00% 5.00%
0% - 50%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 2,501 $ 2,645
% of total 36.00% 39.00%
Weighted-average debt service coverage ratio 2.39 2.40
0% - 50% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 920 $ 913
0% - 50% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 716 798
0% - 50% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 468 523
0% - 50% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 225 199
0% - 50% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 112 112
0% - 50% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 60 100
51% - 60%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,548 $ 1,628
% of total 22.00% 24.00%
Weighted-average debt service coverage ratio 1.84 1.83
51% - 60% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 605 $ 639
51% - 60% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 324 351
51% - 60% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 452 431
51% - 60% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 77 86
51% - 60% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 33 47
51% - 60% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 57 74
61% - 75%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 2,863 $ 2,396
% of total 42.00% 35.00%
Weighted-average debt service coverage ratio 1.62 1.61
61% - 75% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 1,168 $ 859
61% - 75% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 518 456
61% - 75% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 611 595
61% - 75% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 271 238
61% - 75% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 153 127
61% - 75% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 142 121
76% - 100%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 0 $ 103
% of total 0.00% 2.00%
Weighted-average debt service coverage ratio 0 1.49
76% - 100% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 0 $ 29
76% - 100% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 0 33
76% - 100% | Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 0 18
76% - 100% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 0 6
76% - 100% | Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 0 0
76% - 100% | Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 0 17
Greater than 100%    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 0 $ 2
% of total 0.00% 0.00%
Weighted-average debt service coverage ratio 0 0.64
Greater than 100% | Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost $ 0 $ 2
Greater than 100% | Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 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, amortized cost 0 0
Greater than 100% | Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, amortized cost 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, amortized cost 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, amortized cost $ 0 $ 0
v3.21.2
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, 2021
Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 6,912 $ 6,774
% 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 $ 6,912 $ 6,774
% of total 100.00% 100.00%
Weighted-average debt-to-value 54.00% 53.00%
Retail    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 2,693 $ 2,442
% of total 39.00% 36.00%
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 $ 2,693 $ 2,442
Industrial    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,558 $ 1,638
% of total 23.00% 24.00%
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 $ 1,558 $ 1,638
Office    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 1,531 $ 1,567
% of total 22.00% 23.00%
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 $ 1,531 $ 1,567
Apartments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 573 $ 529
% of total 8.00% 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 $ 573 $ 529
Mixed Use    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 298 $ 286
% of total 4.00% 4.00%
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 $ 298 $ 286
Other    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Commercial mortgage loans, recorded investment $ 259 $ 312
% of total 4.00% 5.00%
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 $ 259 $ 312
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 $ 178 $ 216
% of total 3.00% 3.00%
Weighted-average debt-to-value 58.00% 57.00%
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 $ 51 $ 55
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 20 21
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 70 101
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 8 9
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 5
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 24 25
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 $ 500 $ 526
% of total 7.00% 8.00%
Weighted-average debt-to-value 61.00% 62.00%
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 $ 163 $ 169
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 78 85
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 90 99
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 22 24
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 23 24
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 124 125
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 $ 1,042 $ 992
% of total 15.00% 15.00%
Weighted-average debt-to-value 62.00% 62.00%
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 $ 529 $ 483
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 136 143
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 169 170
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 126 126
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 45 29
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 37 41
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 $ 2,851 $ 2,590
% of total 41.00% 38.00%
Weighted-average debt-to-value 59.00% 57.00%
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 $ 1,190 $ 969
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 597 616
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 658 634
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 250 228
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 128 115
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 28 28
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 $ 2,341 $ 2,450
% of total 34.00% 36.00%
Weighted-average debt-to-value 44.00% 44.00%
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 $ 760 $ 766
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 727 773
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 544 563
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 167 142
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 97 113
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 $ 46 $ 93
v3.21.2
Schedule of Positions in Derivative Instruments (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Derivative [Line Items]    
Derivative assets, fair value $ 371 $ 600
Derivative liabilities, fair value 693 830
Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value 638 804
Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 55 26
Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 353 574
Interest rate swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 53 23
Interest rate swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 280 468
Foreign currency swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 2 2
Foreign currency swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 2 1
Equity index options | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 47 63
Other foreign currency contracts | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value   1
Other foreign currency contracts | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 24 42
GMWB embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [1] 275 379
GMWB embedded derivatives | Reinsurance recoverable    
Derivative [Line Items]    
Derivative assets, fair value [2] 18 26 [3]
Fixed index annuity embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value 339 399
Indexed universal life embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value 24 26
Designated As Hedging Instrument    
Derivative [Line Items]    
Derivative assets, fair value 282 469
Derivative liabilities, fair value 55 25
Designated As Hedging Instrument | Cash Flow Hedges    
Derivative [Line Items]    
Derivative assets, fair value 282 469
Derivative liabilities, fair value 55 25
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 53 23
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 280 468
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 2 2
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 89 131
Derivative liabilities, fair value 638 805
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 47 63
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 | Other foreign currency contracts | Other liabilities    
Derivative [Line Items]    
Derivative liabilities, fair value 0 1
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets    
Derivative [Line Items]    
Derivative assets, fair value 24 42
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [4] 275 379
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable    
Derivative [Line Items]    
Derivative assets, fair value [5] 18 26
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances    
Derivative [Line Items]    
Derivative liabilities, fair value [6] 339 399
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 [7] 24 26
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] Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
[4] Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
[5] Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities.
[6] Represents the embedded derivatives associated with our fixed index annuity liabilities.
[7] Represents the embedded derivatives associated with our indexed universal life liabilities.
v3.21.2
Activity Associated with Derivative Instruments (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2021
USD ($)
Policies
Derivative [Line Items]  
Notional amount, beginning balance $ 17,269
Additions 2,608
Maturities/ terminations (8,534)
Notional amount, ending balance 11,343
Designated As Hedging Instrument  
Derivative [Line Items]  
Notional amount, beginning balance 8,305
Additions 0
Maturities/ terminations (405)
Notional amount, ending balance 7,900
Designated As Hedging Instrument | Cash Flow Hedges  
Derivative [Line Items]  
Notional amount, beginning balance 8,305
Additions 0
Maturities/ terminations (405)
Notional amount, ending balance 7,900
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps  
Derivative [Line Items]  
Notional amount, beginning balance 8,178
Additions 0
Maturities/ terminations (405)
Notional amount, ending balance 7,773
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps  
Derivative [Line Items]  
Notional amount, beginning balance 127
Additions 0
Maturities/ terminations 0
Notional amount, ending balance 127
Derivatives not designated as hedges  
Derivative [Line Items]  
Notional amount, beginning balance 8,964
Additions 2,608
Maturities/ terminations (8,129)
Notional amount, ending balance 3,443
Derivatives not designated as hedges | Interest rate swaps  
Derivative [Line Items]  
Notional amount, beginning balance 4,674
Additions 0
Maturities/ terminations (4,674)
Notional amount, ending balance 0
Derivatives not designated as hedges | Equity index options  
Derivative [Line Items]  
Notional amount, beginning balance 2,000
Additions 614
Maturities/ terminations (803)
Notional amount, ending balance 1,811
Derivatives not designated as hedges | Financial futures  
Derivative [Line Items]  
Notional amount, beginning balance 1,104
Additions 1,972
Maturities/ terminations (2,116)
Notional amount, ending balance 960
Derivatives not designated as hedges | Other foreign currency contracts  
Derivative [Line Items]  
Notional amount, beginning balance 1,186
Additions 22
Maturities/ terminations (536)
Notional amount, ending balance $ 672
Derivatives not designated as hedges | GMWB embedded derivatives  
Derivative [Line Items]  
Notional amount, beginning balance | Policies 23,713
Additions | Policies 0
Maturities/ terminations | Policies (982)
Notional amount, ending balance | Policies 22,731
Derivatives not designated as hedges | Fixed index annuity embedded derivatives  
Derivative [Line Items]  
Notional amount, beginning balance | Policies 12,778
Additions | Policies 0
Maturities/ terminations | Policies (1,944)
Notional amount, ending balance | Policies 10,834
Derivatives not designated as hedges | Indexed universal life embedded derivatives  
Derivative [Line Items]  
Notional amount, beginning balance | Policies 842
Additions | Policies 0
Maturities/ terminations | Policies (22)
Notional amount, ending balance | Policies 820
v3.21.2
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI $ 309 $ (60) $ (178) $ 935
Gain (loss) reclassified into net income from OCI 52 46 104 93
Gain (loss) recognized in net income (loss) 0 0 0 0
Interest Rate Swaps Hedging Assets | Net Investment Income        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI 314 (57) (215) 984
Gain (loss) reclassified into net income from OCI 52 46 104 89
Interest Rate Swaps Hedging Assets | Net Investment Gains (Losses)        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI       0
Gain (loss) reclassified into net income from OCI       4
Gain (loss) recognized in net income (loss) 0 0 0 0
Interest Rate Swaps Hedging Liabilities | Interest Expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI (8) 1 36 (62)
Gain (loss) reclassified into net income from OCI 0 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 (loss) 0 0 0 0
Foreign currency swaps | Net Investment Income        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in OCI 3 (4) 1 13
Gain (loss) reclassified into net income from OCI 0 0 0 0
Foreign currency swaps | Net Investment Gains (Losses)        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (loss) recognized in net income (loss) $ 0 $ 0 $ 0 $ 0
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Derivative Instruments [Abstract]        
Derivatives qualifying as effective accounting hedges, beginning of period $ 1,792 $ 2,755 $ 2,211 $ 2,002
Current period increases (decreases) in fair value, net of deferred taxes 245 (48) (140) 735
Reclassification to net (income) loss, net of deferred taxes (34) (30) (68) (60)
Derivatives qualifying as effective accounting hedges, end of period $ 2,003 $ 2,677 $ 2,003 $ 2,677
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Current period increases (decreases) in fair value, deferred taxes $ (64) $ 12 $ 38 $ (200)
Reclassification to net (income), deferred taxes $ 18 $ 16 $ 36 $ 33
v3.21.2
Derivative Instruments - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Dec. 31, 2019
Derivative [Line Items]            
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax $ 2,003 $ 2,677 $ 1,792 $ 2,211 $ 2,755 $ 2,002
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 $ 138          
Amount reclassified to net income (loss) in connection with forecasted transactions that were no longer considered probable of occurring $ 4 $ 1        
v3.21.2
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) 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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss $ 4 $ (36) $ 12 $ (88)
Interest rate swaps | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss (1) (2) 3 (12)
Equity index options | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 6 4 9 (9)
Financial futures | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 8 (123) (102) 138
Other foreign currency contracts | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 0 (2) 0 8
GMWB embedded derivatives | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss 2 129 107 (207)
Fixed index annuity embedded derivatives | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss (14) (45) (18) (13)
Indexed universal life embedded derivatives | Net Investment Gains (Losses)        
Derivative [Line Items]        
Pre-tax gain (loss) recognized in net loss $ 3 $ 3 $ 13 $ 7
v3.21.2
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Derivative [Line Items]    
Gross amounts recognized, derivatives assets $ 371 $ 600
Gross amounts recognized, derivatives liabilities 693 830
Subject to enforceable master netting arrangement    
Derivative [Line Items]    
Gross amounts recognized, net derivatives 298 548
Gross amounts offset in the balance sheet, net derivatives 0 0
Net amounts presented in the balance sheet, net derivatives 298 548
Gross amounts not offset in the balance sheet, financial instruments, net derivatives [1],[2] 0 0
Collateral received (238) (401)
Collateral pledged 625 505
Over collateralization, net derivatives (609) (497)
Net amount 76 155
Subject to enforceable master netting arrangement | Derivative assets    
Derivative [Line Items]    
Gross amounts recognized, derivatives assets [2] 353 574
Gross amounts offset in the balance sheet, derivatives assets [2] 0 0
Net amounts presented in the balance sheet, derivatives assets [2] 353 574
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets [1],[2] (42) (20)
Collateral received [2] (238) (401)
Collateral pledged [2] 0 0
Over collateralization, derivatives assets [2] 3 2
Net amount, derivatives assets [2] 76 155
Subject to enforceable master netting arrangement | Derivative liabilities    
Derivative [Line Items]    
Gross amounts recognized, derivatives liabilities [2] 55 26
Gross amounts offset in the balance sheet, derivatives liabilities [2] 0 0
Net amounts presented in the balance sheet, derivatives liabilities [2] 55 26
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities [1],[2] (42) (20)
Collateral received [2] 0 0
Collateral pledged [2] (625) (505)
Over collateralization, derivatives liabilities [2] 612 499
Net amount, derivatives liabilities [2] $ 0 $ 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] Does not include amounts related to embedded derivatives as of June 30, 2021 and December 31, 2020.
v3.21.2
Fair Value of Financial Instruments - Additional Information (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 61,649 $ 63,495
GMWB non-performance risk impact $ 52 66
Period end valuation 0  
Fixed maturity securities | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 35,289 35,857
Fixed maturity securities | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 10,744 10,811
Level 2    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 57,889 59,406
Level 2 | Fixed maturity securities | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 33,087 33,585
Level 2 | Fixed maturity securities | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 9,382 9,203
Level 2 | Fixed maturity securities | Third-Party Pricing Services    
Fair Value of Financial Instruments [Line Items]    
Percentage of available for sale debt securities 90.00%  
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 31,509  
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 8,510  
Level 2 | Fixed maturity securities | Internal models | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 1,578  
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 872  
Level 3    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 3,760 4,089
Level 3 | Fixed maturity securities | U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 2,202 2,272
Level 3 | Fixed maturity securities | Non-U.S. corporate    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 1,362 $ 1,608
Level 3 | Fixed maturity securities | Internal models    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities 3,424  
Level 3 | Fixed maturity securities | Broker Quotes    
Fair Value of Financial Instruments [Line Items]    
Available-for-sale debt securities $ 336  
v3.21.2
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, 2021
Dec. 31, 2020
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities $ 61,649 $ 63,495
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 4,484 4,805
Fixed maturity securities | State and Political Subdivisions    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 3,371 3,165
Fixed maturity securities | Non-U.S. government    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 802 854
Fixed maturity securities | U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 35,289 35,857
Fixed maturity securities | Non-U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 10,744 10,811
Fixed maturity securities | Residential mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 1,691 1,909
Fixed maturity securities | Commercial mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,734 2,974
Fixed maturity securities | Other asset-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,534 3,120
Level 2    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 57,889 59,406
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 4,484 4,805
Level 2 | Fixed maturity securities | State and Political Subdivisions    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 3,296 3,099
Level 2 | Fixed maturity securities | Non-U.S. government    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 802 854
Level 2 | Fixed maturity securities | U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 33,087 33,585
Level 2 | Fixed maturity securities | Non-U.S. corporate    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 9,382 9,203
Level 2 | Fixed maturity securities | Residential mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 1,678 1,895
Level 2 | Fixed maturity securities | Commercial mortgage-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,714 2,954
Level 2 | Fixed maturity securities | Other asset-backed    
Fair value measurements Significant unobservable inputs [Line Items]    
Available-for-sale debt securities 2,446 $ 3,011
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 $ 4,484  
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 $ 3,296  
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 $ 802  
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 $ 31,509  
Primary methodologies Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models  
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 $ 8,510  
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 $ 1,678  
Primary methodologies OAS-based 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 $ 2,714  
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 $ 2,446  
Primary methodologies Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers  
Significant inputs Spreads to daily updated swap 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  
v3.21.2
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities $ 61,649 $ 63,495
Available-for-sale equity securities 147 386
Derivative assets, fair value 371 600
Total other invested assets 2,260 2,099
Separate account assets 6,202 6,081
Total assets 69,665 71,509
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  
Separate account assets [1] 0 0
Total assets [1] 1,070 835
Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 353 574
Securities lending collateral 105 67
Short-term investments 121 45
Limited partnerships 1,070 835
Total other invested assets 1,649 1,521
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 0
Securities lending collateral [1] 0 0
Short-term investments [1] 0 0
Limited partnerships [1] 1,070 835
Total other invested assets [1] 1,070 835
Interest rate swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 280 468
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 0
Foreign currency swaps | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 2 1
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 0
Equity index options | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 47 63
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 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 24 42
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 0
GMWB embedded derivatives | Reinsurance recoverable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value [2] 18 26 [1]
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 0
Fixed maturity securities | 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
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 4,484 4,805
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 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 3,371 3,165
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 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 802 854
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 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 35,289 35,857
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 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 5,091 5,194
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 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 2,952 2,883
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 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 8,989 9,102
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 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 6,224 6,437
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 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 3,754 3,761
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 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 1,572 1,602
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 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 2,870 2,991
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 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 1,994 1,947
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 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 1,409 1,500
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 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 434 440
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 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 10,744 10,811
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 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 945 922
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 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 1,380
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 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 2,400 2,476
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 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 745 773
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 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 1,284 1,291
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 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 1,140 1,128
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 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 642 576
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 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 353 371
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 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 541 570
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 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 1,295 1,324
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 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 1,691 1,909
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 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 2,734 2,974
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 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 2,534 3,120
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 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 48 276
Separate account assets 6,202 6,081
Total assets 6,250 6,382
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 0 25
Limited partnerships 0 0
Total other invested assets 0 25
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 | 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 [1]
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 57,889 59,406
Available-for-sale equity securities 61 59
Separate account assets 0 0
Total assets 58,482 60,063
Level 2 | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 306 511
Securities lending collateral 105 67
Short-term investments 121 20
Limited partnerships 0 0
Total other invested assets 532 598
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 280 468
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 2 1
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 24 42
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 [1]
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 4,484 4,805
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 3,296 3,099
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 802 854
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 33,087 33,585
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 4,249 4,352
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 2,875 2,755
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 8,328 8,495
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 6,115 6,328
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 3,724 3,714
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 1,552 1,562
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 2,811 2,931
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 1,855 1,797
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 1,342 1,430
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 236 221
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 9,382 9,203
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 597 570
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 1,247 1,135
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 2,198 2,171
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 671 706
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 1,256 1,263
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 1,046 1,033
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 461 398
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 206 225
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 458 461
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 1,242 1,241
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 1,678 1,895
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 2,714 2,954
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 2,446 3,011
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale debt securities 3,760 4,089
Available-for-sale equity securities 38 51
Separate account assets 0 0
Total assets 3,863 4,229
Level 3 | Other invested assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets, fair value 47 63
Securities lending collateral 0 0
Short-term investments 0 0
Limited partnerships 0 0
Total other invested assets 47 63
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 | 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 47 63
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] 18 26 [1]
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 0
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 75 66
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 2,202 2,272
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 842 842
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 77 128
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 661 607
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 109 109
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 30 47
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 20 40
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 59 60
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 139 150
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 67 70
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 198 219
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 1,362 1,608
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 348 352
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 152 245
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 202 305
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 74 67
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 28 28
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 94 95
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 181 178
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 147 146
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 83 109
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 53 83
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 13 14
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 20 20
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 $ 88 $ 109
[1] Limited partnerships that are measured at fair value using the NAV 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.
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance $ 4,036 $ 3,996 $ 4,229 $ 4,304
Total realized and unrealized gains (losses), Included in net income 6 (3) 3 15
Total realized and unrealized gains (losses), Included in OCI 101 281 (4) 8
Purchases 83 82 175 172
Sales (2) (3) (10) (25)
Issuances 1 0 1 1
Settlements (139) (60) (239) (133)
Transfer into Level 3 22 [1] 188 [2] 51 [1] 338 [2]
Transfer out of Level 3 (245) [1] (100) [2] (343) [1] (299) [2]
Ending balance 3,863 4,381 3,863 4,381
Total gains (losses) included in net income attributable to assets still held 3 1 (1) 26
Total gains (losses) included in OCI attributable to assets still held 80 272 (23) 14
Other invested assets        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 53 62 63 81
Total realized and unrealized gains (losses), Included in net income 6 4 9 (9)
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 5 7 10 18
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (17) (7) (35) (24)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 47 66 47 66
Total gains (losses) included in net income attributable to assets still held 2 8 4 5
Total gains (losses) included in OCI attributable to assets still held 0 0 0 0
Other invested assets | Derivative assets        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 53 62 63 81
Total realized and unrealized gains (losses), Included in net income 6 4 9 (9)
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 5 7 10 18
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (17) (7) (35) (24)
Transfer into Level 3 0 [1] 0 [2]   0 [2]
Transfer out of Level 3 0 [1] 0 [2]   0 [2]
Ending balance 47 66 47 66
Total gains (losses) included in net income attributable to assets still held 2 8 4 5
Total gains (losses) included in OCI attributable to assets still held 0 0 0 0
Other invested assets | Derivative assets | Equity index options        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 53 62 63 81
Total realized and unrealized gains (losses), Included in net income 6 4 9 (9)
Total realized and unrealized gains (losses), Included in OCI 0 0 0 0
Purchases 5 7 10 18
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (17) (7) (35) (24)
Transfer into Level 3 0 [1] 0 [2]   0 [2]
Transfer out of Level 3 0 [1] 0 [2]   0 [2]
Ending balance 47 66 47 66
Total gains (losses) included in net income attributable to assets still held 2 8 4 5
Total gains (losses) included in OCI attributable to assets still held 0 0 0 0
Reinsurance recoverable        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance [3] 18 [1] 47 [2] 26 [1] 20 [2]
Total realized and unrealized gains (losses), Included in net income [3] (1) [1] (9) [2] (9) [1] 17 [2]
Total realized and unrealized gains (losses), Included in OCI [3] 0 [1] 0 [2] 0 [1] 0 [2]
Purchases [3] 0 [1] 0 [2] 0 [1] 0 [2]
Sales [3] 0 [1] 0 [2] 0 [1] 0 [2]
Issuances [3] 1 [1] 0 [2] 1 [1] 1 [2]
Settlements [3] 0 [1] 0 [2] 0 [1] 0 [2]
Transfer into Level 3 [3] 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 [3] 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance [3] 18 [1] 38 [2] 18 [1] 38 [2]
Total gains (losses) included in net income attributable to assets still held [3] (1) [1] (9) [2] (9) [1] 17 [2]
Total gains (losses) included in OCI attributable to assets still held [3] 0 [1] 0 [2] 0 [1] 0 [2]
Fixed maturity securities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 3,922 3,837 4,089 4,152
Total realized and unrealized gains (losses), Included in net income 1 2 3 7
Total realized and unrealized gains (losses), Included in OCI 101 281 (4) 8
Purchases 78 69 165 148
Sales (2) 0 (2) (21)
Issuances 0 0 0 0
Settlements (117) (53) (199) (109)
Transfer into Level 3 22 [1] 188 [2] 51 [1] 338 [2]
Transfer out of Level 3 (245) [1] (100) [2] (343) [1] (299) [2]
Ending balance 3,760 4,224 3,760 4,224
Total gains (losses) included in net income attributable to assets still held 2 2 4 4
Total gains (losses) included in OCI attributable to assets still held 80 272 (23) 14
Fixed maturity securities | State and political subdivisions        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 68 83 66 102
Total realized and unrealized gains (losses), Included in net income 1 0 2 1
Total realized and unrealized gains (losses), Included in OCI 6 7 7 (12)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 (1)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] (27) [2] 0 [1] (27) [2]
Ending balance 75 63 75 63
Total gains (losses) included in net income attributable to assets still held 1 1 2 2
Total gains (losses) included in OCI attributable to assets still held 6 6 7 (13)
Fixed maturity securities | U.S. corporate        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 2,150 2,113 2,272 2,239
Total realized and unrealized gains (losses), Included in net income 0 1 0 3
Total realized and unrealized gains (losses), Included in OCI 55 120 (13) 16
Purchases 63 61 101 96
Sales 0 0 0 (21)
Issuances 0 0 0 0
Settlements (16) (21) (74) (43)
Transfer into Level 3 22 [1] 72 [2] 49 [1] 125 [2]
Transfer out of Level 3 (72) [1] (14) [2] (133) [1] (83) [2]
Ending balance 2,202 2,332 2,202 2,332
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 50 116 (16) 22
Fixed maturity securities | U.S. corporate | Utilities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 793 843 842 865
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 23 37 (7) 12
Purchases 8 32 16 32
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) (2) (14) (2)
Transfer into Level 3 19 [1] 26 [2] 19 [1] 42 [2]
Transfer out of Level 3 0 [1] 0 [2] (14) [1] (13) [2]
Ending balance 842 936 842 936
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 23 37 (6) 14
Fixed maturity securities | U.S. corporate | Energy        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 122 124 128 129
Total realized and unrealized gains (losses), Included in net income 0 1 0 1
Total realized and unrealized gains (losses), Included in OCI 8 13 4 (2)
Purchases 0 0 0 10
Sales 0 0 0 (21)
Issuances 0 0 0 0
Settlements (1) (2) (3) (3)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 22 [2]
Transfer out of Level 3 (52) [1] (13) [2] (52) [1] (13) [2]
Ending balance 77 123 77 123
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 4 9 0 (5)
Fixed maturity securities | U.S. corporate | Finance and insurance        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 597 510 607 572
Total realized and unrealized gains (losses), Included in net income 0 0 0 2
Total realized and unrealized gains (losses), Included in OCI 17 33 (5) 2
Purchases 55 21 73 21
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (8) (12) (25) (24)
Transfer into Level 3 0 [1] 0 [2] 17 [1] 0 [2]
Transfer out of Level 3 0 [1] (1) [2] (6) [1] (22) [2]
Ending balance 661 551 661 551
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 17 33 (5) 5
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 106 88 109 94
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 2 8 (1) 2
Purchases 0 8 0 8
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (2) (1) (2) (1)
Transfer into Level 3 3 [1] 0 [2] 3 [1] 0 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 109 103 109 103
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 8 (2) 2
Fixed maturity securities | U.S. corporate | Technology and communications        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 40 61 47 50
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 2 5 0 1
Purchases 0 0 12 20
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 0 [1] 0 [2] 4 [1] 0 [2]
Transfer out of Level 3 (12) [1] 0 [2] (33) [1] (5) [2]
Ending balance 30 66 30 66
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 5 (1) 2
Fixed maturity securities | U.S. corporate | Industrial        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 20 37 40 40
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 2 0 (1)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 (20) 0
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 20 39 20 39
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 0 2 0 (1)
Fixed maturity securities | U.S. corporate | Capital goods        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 58 90 60 102
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 7 (1) (1)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 (4)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 59 97 59 97
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 7 (1) (1)
Fixed maturity securities | U.S. corporate | Consumer-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 147 179 150 173
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 11 (1) 4
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) (1) (2) (3)
Transfer into Level 3 0 [1] 9 [2] 0 [1] 24 [2]
Transfer out of Level 3 (8) [1] 0 [2] (8) [1] 0 [2]
Ending balance 139 198 139 198
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 11 (1) 4
Fixed maturity securities | U.S. corporate | Transportation        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 67 43 70 78
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 0 (2)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) (1) (3) (2)
Transfer into Level 3 0 [1] 10 [2] 0 [1] 10 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] (30) [2]
Ending balance 67 54 67 54
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 2 0 1
Fixed maturity securities | U.S. corporate | Other        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 200 138 219 136
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 2 (2) 1
Purchases 0 0 0 5
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (2) (2) (5) (4)
Transfer into Level 3 0 [1] 27 [2] 6 [1] 27 [2]
Transfer out of Level 3 0 [1] 0 [2] (20) [1] 0 [2]
Ending balance 198 165 198 165
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 2 0 1
Fixed maturity securities | Non-U.S. corporate        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 1,576 1,529 1,608 1,685
Total realized and unrealized gains (losses), Included in net income 0 1 1 3
Total realized and unrealized gains (losses), Included in OCI 38 150 2 4
Purchases 14 6 60 44
Sales (2) 0 (2) 0
Issuances 0 0 0 0
Settlements (95) (29) (115) (55)
Transfer into Level 3 0 [1] 93 [2] 0 [1] 188 [2]
Transfer out of Level 3 (169) [1] (56) [2] (192) [1] (175) [2]
Ending balance 1,362 1,694 1,362 1,694
Total gains (losses) included in net income attributable to assets still held 1 1 2 2
Total gains (losses) included in OCI attributable to assets still held 22 146 (14) 6
Fixed maturity securities | Non-U.S. corporate | Utilities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 375 355 352 374
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 5 23 (2) 3
Purchases 0 1 30 12
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (8) 0 (8) 0
Transfer into Level 3 0 [1] 0 [2] 0 [1] 21 [2]
Transfer out of Level 3 (24) [1] (22) [2] (24) [1] (53) [2]
Ending balance 348 357 348 357
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 4 23 (3) 3
Fixed maturity securities | Non-U.S. corporate | Energy        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 243 236 245 247
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 10 22 8 (8)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (22) (26) (22) (26)
Transfer into Level 3 0 [1] 5 [2] 0 [1] 24 [2]
Transfer out of Level 3 (79) [1] 0 [2] (79) [1] 0 [2]
Ending balance 152 237 152 237
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 5 22 3 (8)
Fixed maturity securities | Non-U.S. corporate | Finance and insurance        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 290 223 305 234
Total realized and unrealized gains (losses), Included in net income 0 1 1 2
Total realized and unrealized gains (losses), Included in OCI 17 50 1 9
Purchases 0 0 0 15
Sales (2) 0 (2) 0
Issuances 0 0 0 0
Settlements (52) 0 (52) 0
Transfer into Level 3 0 [1] 37 [2] 0 [1] 58 [2]
Transfer out of Level 3 (51) [1] 0 [2] (51) [1] (7) [2]
Ending balance 202 311 202 311
Total gains (losses) included in net income attributable to assets still held 1 1 2 2
Total gains (losses) included in OCI attributable to assets still held 5 49 (11) 10
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 66 58 67 59
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 5 (1) 2
Purchases 8 0 8 8
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 0 [1] 0 [2] 0 [1] 1 [2]
Transfer out of Level 3 0 [1] (9) [2] 0 [1] (16) [2]
Ending balance 74 54 74 54
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 0 4 (1) 1
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 27 28 28
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 1 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 28 28 28 28
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 0 1 0 0
Fixed maturity securities | Non-U.S. corporate | Industrial        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 93 92 95 104
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 8 (1) 1
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 (5)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] (8) [2] 0 [1] (8) [2]
Ending balance 94 92 94 92
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 7 (1) 0
Fixed maturity securities | Non-U.S. corporate | Capital goods        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 175 135 178 161
Total realized and unrealized gains (losses), Included in net income 0 0 0 1
Total realized and unrealized gains (losses), Included in OCI 1 9 (2) (2)
Purchases 5 0 5 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 (16)
Transfer into Level 3 0 [1] 29 [2] 0 [1] 29 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 181 173 181 173
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 2 9 (1) (1)
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 144 164 146 147
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 2 12 0 (3)
Purchases 1 0 17 4
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 (3) 0 (7)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 32 [2]
Transfer out of Level 3 0 [1] (17) [2] (16) [1] (17) [2]
Ending balance 147 156 147 156
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 2 11 0 (5)
Fixed maturity securities | Non-U.S. corporate | Transportation        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 82 108 109 191
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 11 0 2
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 (19) 0
Transfer into Level 3 0 [1] 22 [2] 0 [1] 22 [2]
Transfer out of Level 3 0 [1] 0 [2] (7) [1] (74) [2]
Ending balance 83 141 83 141
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 2 11 1 6
Fixed maturity securities | Non-U.S. corporate | Other        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 80 131 83 140
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 1 9 (1) 0
Purchases 0 5 0 5
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (13) 0 (14) (1)
Transfer into Level 3 0 [1] 0 [2] 0 [1] 1 [2]
Transfer out of Level 3 (15) [1] 0 [2] (15) [1] 0 [2]
Ending balance 53 145 53 145
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 9 (1) 0
Fixed maturity securities | Residential mortgage-backed        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 13 24 14 27
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 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1) (1) (1) (1)
Transfer into Level 3 0 [1] 3 [2] 0 [1] 4 [2]
Transfer out of Level 3 0 [1] (3) [2] 0 [1] (6) [2]
Ending balance 13 24 13 24
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI 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 19 0 20 6
Total realized and unrealized gains (losses), Included in net income 0 0 0 0
Total realized and unrealized gains (losses), Included in OCI 0 1 (1) 2
Purchases 1 0 1 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Transfer into Level 3 0 [1] 20 [2] 0 [1] 20 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] (7) [2]
Ending balance 20 21 20 21
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 1 (1) 1
Fixed maturity securities | Other asset-backed        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 96 87 109 93
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 1 (2)
Purchases 0 2 3 8
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (5) (1) (9) (8)
Transfer into Level 3 0 [1] 0 [2] 2 [1] 0 [2]
Transfer out of Level 3 (4) [1] 0 [2] (18) [1] (1) [2]
Ending balance 88 90 88 90
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI attributable to assets still held 1 3 1 (2)
Fixed maturity securities | Non-U.S. government        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance   1   0
Total realized and unrealized gains (losses), Included in net income   0   0
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 [2]   0   1
Transfer out of Level 3 [2]   0   0
Ending balance   0   0
Total gains (losses) included in net income attributable to assets still held   0   0
Total gains (losses) included in OCI attributable to assets still held   0   0
Equity Securities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 43 50 51 51
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 0 6 0 6
Sales 0 (3) (8) (4)
Issuances 0 0 0 0
Settlements (5) 0 (5) 0
Transfer into Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Transfer out of Level 3 0 [1] 0 [2] 0 [1] 0 [2]
Ending balance 38 53 38 53
Total gains (losses) included in net income attributable to assets still held 0 0 0 0
Total gains (losses) included in OCI 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] 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.
[3] Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Fair value of financial instruments [Abstract]        
Total realized and unrealized gains (losses) included in net income (loss), assets $ 6 $ (3) $ 3 $ 15
Total gains (losses) included in net income (loss) attributable to assets still held, assets 3 1 (1) 26
Net Investment Income        
Fair value of financial instruments [Abstract]        
Total realized and unrealized gains (losses) included in net income (loss), assets 1 2 3 6
Total gains (losses) included in net income (loss) attributable to assets still held, assets 2 2 4 4
Net investment gains (losses)        
Fair value of financial instruments [Abstract]        
Total realized and unrealized gains (losses) included in net income (loss), assets 5 (5) 0 9
Total gains (losses) included in net income (loss) attributable to assets still held, assets $ 1 $ (1) $ (5) $ 22
v3.21.2
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2021
USD ($)
bps
Dec. 31, 2020
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value | $ $ 693 $ 830
Fixed maturity securities available-for-sale, at fair value | $ 61,649 63,495
Derivative assets, fair value | $ 371 600
Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value | $ 638 804
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] 275 379
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 | $ 339 399
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 | $ 24 26
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 | $ $ 3,760 4,089
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 | $ $ 47  
Fair value input, equity index volatility, lower limit 6.00%  
Fair value input, equity index volatility, upper limit 48.00%  
Fair value input, equity index volatility, weighted-average [2] 27.00%  
Level 3 | Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative liabilities, fair value | $ $ 638 804
Level 3 | Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Valuation technique Stochastic cash flow model  
Derivative liabilities, fair value | $ [1] $ 275 379
Fair value, withdrawal utilization rate, lower limit 59.00%  
Fair value, withdrawal utilization rate, upper limit 88.00%  
Fair value, lapse rate, lower limit 2.00%  
Fair value, lapse rate, upper limit 9.00%  
Fair value input, credit spreads, lower limit 14  
Fair value input, credit spreads, upper limit 83  
Fair value input, credit spreads, weighted-average [3] 65  
Fair value input, equity index volatility, lower limit [4] 16.00%  
Fair value input, equity index volatility, upper limit [4] 26.00%  
Fair value, withdrawal utilization rate, weighted-average [3] 75.00%  
Fair value, lapse rate, weighted-average [3] 4.00%  
Fair value input, equity index volatility, weighted-average [3],[4] 22.00%  
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 | $ $ 339 399
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 [3] 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 | $ $ 24 $ 26
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 [3] 5.00%  
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 | $ $ 2,106  
Fair value input, credit spreads, lower limit 44  
Fair value input, credit spreads, upper limit 210  
Fair value input, credit spreads, weighted-average [2] 115  
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 | $ $ 807  
Fair value input, credit spreads, lower limit 47  
Fair value input, credit spreads, upper limit 210  
Fair value input, credit spreads, weighted-average [2] 124  
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 | $ $ 66  
Fair value input, credit spreads, lower limit 57  
Fair value input, credit spreads, upper limit 203  
Fair value input, credit spreads, weighted-average [2] 128  
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 | $ $ 644  
Fair value input, credit spreads, lower limit 44  
Fair value input, credit spreads, upper limit 171  
Fair value input, credit spreads, weighted-average [2] 113  
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 | $ $ 109  
Fair value input, credit spreads, lower limit 52  
Fair value input, credit spreads, upper limit 203  
Fair value input, credit spreads, weighted-average [2] 117  
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 | $ $ 30  
Fair value input, credit spreads, lower limit 72  
Fair value input, credit spreads, upper limit 150  
Fair value input, credit spreads, weighted-average [2] 122  
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 | $ $ 21  
Fair value input, credit spreads, lower limit 85  
Fair value input, credit spreads, upper limit 159  
Fair value input, credit spreads, weighted-average [2] 127  
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 | $ $ 59  
Fair value input, credit spreads, lower limit 62  
Fair value input, credit spreads, upper limit 159  
Fair value input, credit spreads, weighted-average [2] 112  
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 | $ $ 138  
Fair value input, credit spreads, lower limit 81  
Fair value input, credit spreads, upper limit 156  
Fair value input, credit spreads, weighted-average [2] 122  
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 | $ $ 55  
Fair value input, credit spreads, lower limit 46  
Fair value input, credit spreads, upper limit 134  
Fair value input, credit spreads, weighted-average [2] 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 | $ $ 177  
Fair value input, credit spreads, lower limit 63  
Fair value input, credit spreads, upper limit 143  
Fair value input, credit spreads, weighted-average [2] 82  
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 | $ $ 1,191  
Fair value input, credit spreads, lower limit 52  
Fair value input, credit spreads, upper limit 343  
Fair value input, credit spreads, weighted-average [2] 103  
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 | $ $ 347  
Fair value input, credit spreads, lower limit 58  
Fair value input, credit spreads, upper limit 210  
Fair value input, credit spreads, weighted-average [2] 109  
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 | $ $ 140  
Fair value input, credit spreads, lower limit 62  
Fair value input, credit spreads, upper limit 187  
Fair value input, credit spreads, weighted-average [2] 113  
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 | $ $ 160  
Fair value input, credit spreads, lower limit 78  
Fair value input, credit spreads, upper limit 111  
Fair value input, credit spreads, weighted-average [2] 93  
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 | $ $ 72  
Fair value input, credit spreads, lower limit 52  
Fair value input, credit spreads, upper limit 121  
Fair value input, credit spreads, weighted-average [2] 89  
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 | $ $ 28  
Fair value input, credit spreads, lower limit 62  
Fair value input, credit spreads, upper limit 106  
Fair value input, credit spreads, weighted-average [2] 89  
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 | $ $ 94  
Fair value input, credit spreads, lower limit 57  
Fair value input, credit spreads, upper limit 156  
Fair value input, credit spreads, weighted-average [2] 98  
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 | $ $ 152  
Fair value input, credit spreads, lower limit 52  
Fair value input, credit spreads, upper limit 187  
Fair value input, credit spreads, weighted-average [2] 100  
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 | $ $ 61  
Fair value input, credit spreads, lower limit 81  
Fair value input, credit spreads, upper limit 156  
Fair value input, credit spreads, weighted-average [2] 111  
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 | $ $ 83  
Fair value input, credit spreads, lower limit 52  
Fair value input, credit spreads, upper limit 156  
Fair value input, credit spreads, weighted-average [2] 85  
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 | $ $ 54  
Fair value input, credit spreads, lower limit 66  
Fair value input, credit spreads, upper limit 343  
Fair value input, credit spreads, weighted-average [2] 123  
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
[2] Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets.
[3] Unobservable inputs weighted by the policyholder account balances associated with the instrument.
[4] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs.
v3.21.2
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value $ 693 $ 830
Total liabilities 693 830
Other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 55 26
Other liabilities | Interest rate swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 53 23
Other liabilities | Foreign currency swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 2 2
Other liabilities | Other foreign currency contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value   1
Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 638 804
Policyholder account balances | GMWB embedded derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value [1] 275 379
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 339 399
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 24 26
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 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
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 55 26
Level 2 | Other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 55 26
Level 2 | Other liabilities | Interest rate swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 53 23
Level 2 | Other liabilities | Foreign currency swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 2 2
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   1
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 638 804
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 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
Level 3 | Policyholder account balances    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liabilities, fair value 638 804
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] 275 379
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 339 399
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 $ 24 $ 26
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Total realized and unrealized (gains) losses included in net (income) $ 8 $ (96) $ (111) $ 230
Total (gains) losses included in net (income) attributable to liabilities still held 7 (95) (106) 237
Policyholder account balances        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 657 1,125 804 794
Total realized and unrealized (gains) losses included in net (income) 8 (96) (111) 230
Total realized and unrealized (gains) losses included in OCI 0 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 10 11 23 23
Settlements (37) (11) (78) (18)
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 638 1,029 638 1,029
Total (gains) losses included in net (income) attributable to liabilities still held 7 (95) (106) 237
Total (gains) losses included in OCI attributable to liabilities still held 0 0 0 0
Policyholder account balances | GMWB embedded derivatives        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance [1] 272 691 379 323
Total realized and unrealized (gains) losses included in net (income) [1] (3) (138) (116) 224
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] 6 6 12 12
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] 275 559 275 559
Total (gains) losses included in net (income) attributable to liabilities still held [1] (4) (137) (111) 231
Total (gains) losses included in OCI attributable to liabilities still held [1] 0 0 0 0
Policyholder account balances | Fixed index annuity embedded derivatives        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 362 413 399 452
Total realized and unrealized (gains) losses included in net (income) 14 45 18 13
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 (37) (11) (78) (18)
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 339 447 339 447
Total (gains) losses included in net (income) attributable to liabilities still held 14 45 18 13
Total (gains) losses included in OCI attributable to liabilities still held 0 0 0 0
Policyholder account balances | Indexed universal life embedded derivatives        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Beginning balance 23 21 26 19
Total realized and unrealized (gains) losses included in net (income) (3) (3) (13) (7)
Total realized and unrealized (gains) losses included in OCI 0 0 0 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 4 5 11 11
Settlements 0 0 0 0
Transfer into Level 3 0 0 0 0
Transfer out of Level 3 0 0 0 0
Ending balance 24 23 24 23
Total (gains) losses included in net (income) attributable to liabilities still held (3) (3) (13) (7)
Total (gains) losses included in OCI attributable to liabilities still held $ 0 $ 0 $ 0 $ 0
[1] Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Total realized and unrealized (gains) losses included in net (income) loss, liabilities $ 8 $ (96) $ (111) $ 230
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities 7 (95) (106) 237
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 8 (96) (111) 230
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities $ 7 $ (95) $ (106) $ 237
v3.21.2
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans $ 6,879 $ 6,743
Liabilities:    
Long-term borrowings 2,924 3,403
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 0 0
Bank loan investments 0 0
Liabilities:    
Long-term borrowings 0 0
Investment contracts 0 0
Level 1 | Commitments to fund limited partnerships    
Liabilities:    
Off-balance sheet risk 0 0
Level 1 | Commitments to fund bank loan investments    
Liabilities:    
Off-balance sheet risk 0 0
Level 1 | Ordinary course of business lending commitments    
Liabilities:    
Off-balance sheet risk 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 0 0
Bank loan investments 0 0
Liabilities:    
Long-term borrowings 2,813 3,090
Investment contracts 0 0
Level 2 | Commitments to fund limited partnerships    
Liabilities:    
Off-balance sheet risk 0 0
Level 2 | Commitments to fund bank loan investments    
Liabilities:    
Off-balance sheet risk 0 0
Level 2 | Ordinary course of business lending commitments    
Liabilities:    
Off-balance sheet risk 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 7,270 7,145
Bank loan investments 314 354
Liabilities:    
Long-term borrowings 0 0
Investment contracts 10,172 11,353
Level 3 | Commitments to fund limited partnerships    
Liabilities:    
Off-balance sheet risk 0 0
Level 3 | Commitments to fund bank loan investments    
Liabilities:    
Off-balance sheet risk 0 0
Level 3 | Ordinary course of business lending commitments    
Liabilities:    
Off-balance sheet risk 0 0
Carrying value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 6,879 6,743
Bank loan investments 308 344
Liabilities:    
Long-term borrowings 2,924 3,403
Investment contracts 9,360 10,276
Carrying value | Commitments to fund limited partnerships    
Liabilities:    
Off-balance sheet risk 0 0
Carrying value | Commitments to fund bank loan investments    
Liabilities:    
Off-balance sheet risk 0 0
Carrying value | Ordinary course of business lending commitments    
Liabilities:    
Off-balance sheet risk 0 0
Fair value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commercial mortgage loans 7,270 7,145
Bank loan investments 314 354
Liabilities:    
Long-term borrowings 2,813 3,090
Investment contracts 10,172 11,353
Fair value | Commitments to fund limited partnerships    
Liabilities:    
Off-balance sheet risk 0 0
Fair value | Commitments to fund bank loan investments    
Liabilities:    
Off-balance sheet risk 0 0
Fair value | Ordinary course of business lending commitments    
Liabilities:    
Off-balance sheet risk 0 0
Notional amount | Commitments to fund limited partnerships    
Liabilities:    
Off-balance sheet risk 1,187 1,090
Notional amount | Commitments to fund bank loan investments    
Liabilities:    
Off-balance sheet risk 273 32
Notional amount | Ordinary course of business lending commitments    
Liabilities:    
Off-balance sheet risk $ 156 $ 117
v3.21.2
Changes in Liability for Policy and Contract Claims (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]    
Beginning balance $ 11,486  
Ending balance 11,546  
Long-term Care Insurance    
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]    
Beginning balance 11,486 $ 10,750
Less reinsurance recoverables (2,431) (2,406)
Net beginning balance 9,055 8,344
Current year 1,991 2,178
Prior years (332) (258)
Total incurred 1,659 1,920
Current year (477) (434)
Prior years (1,255) (1,298)
Total paid (1,732) (1,732)
Interest on liability for policy and contract claims 202 205
Foreign currency translation 0 (2)
Net ending balance 9,184 8,735
Add reinsurance recoverables 2,362 2,319
Ending balance $ 11,546 $ 11,054
v3.21.2
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Long-term Care Insurance    
Liability for Claims and Claims Adjustment Expense [Line Items]    
Incurred related to insured events of prior year $ (332) $ (258)
v3.21.2
Borrowings - Long Term Borrowings (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total $ 2,924 $ 3,403
Genworth Holdings    
Debt Instrument [Line Items]    
Long-term borrowings [1] 2,209 2,693
Bond consent fees [1] (16) (19)
Deferred borrowing charges [1] (8) (9)
Total [1] 2,185 2,665
Genworth Holdings | 7.20% Senior Notes, Due 2021    
Debt Instrument [Line Items]    
Long-term borrowings [1] 0 338
Genworth Holdings | 7.625% Senior Notes, Due 2021    
Debt Instrument [Line Items]    
Long-term borrowings [1] 514 660
Genworth Holdings | 4.90% Senior Notes, Due 2023    
Debt Instrument [Line Items]    
Long-term borrowings [1] 400 400
Genworth Holdings | 4.80% Senior Notes, Due 2024    
Debt Instrument [Line Items]    
Long-term borrowings [1] 400 400
Genworth Holdings | 6.50% Senior Notes, Due 2034    
Debt Instrument [Line Items]    
Long-term borrowings [1] 297 297
Genworth Holdings | Floating Rate Junior Subordinated Notes, due 2066    
Debt Instrument [Line Items]    
Long-term borrowings [1] 598 598
Enact Holdings    
Debt Instrument [Line Items]    
Deferred borrowing charges (11) (12)
Total 739 738
Enact Holdings | 6.50% Senior Notes, Due 2025    
Debt Instrument [Line Items]    
Long-term borrowings [2] $ 750 $ 750
[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 Enact Holdings, our wholly-owned U.S. mortgage insurance subsidiary, who has the option to redeem the notes in whole or in part at any time prior to February 15, 2025, by paying a make-whole premium plus accrued and unpaid interest.
v3.21.2
Borrowings - Long Term Borrowings (Parenthetical) (Detail)
6 Months Ended
Jun. 30, 2021
Mar. 31, 2021
7.20% Senior Notes, Due 2021 | Genworth Holdings    
Debt Instrument [Line Items]    
Interest rate 7.20%  
Debt instrument, maturity year 2021  
7.625% Senior Notes, Due 2021 | Genworth Holdings    
Debt Instrument [Line Items]    
Interest rate 7.625% 7.625%
Debt instrument, maturity year 2021  
4.90% Senior Notes, Due 2023 | Genworth Holdings    
Debt Instrument [Line Items]    
Interest rate 4.90%  
Debt instrument, maturity year 2023  
4.80% Senior Notes, Due 2024 | Genworth Holdings    
Debt Instrument [Line Items]    
Interest rate 4.80%  
Debt instrument, maturity year 2024  
6.50% Senior Notes, Due 2034 | Genworth Holdings    
Debt Instrument [Line Items]    
Interest rate 6.50%  
Debt instrument, maturity year 2034  
Floating Rate Junior Subordinated Notes, due 2066 | Genworth Holdings    
Debt Instrument [Line Items]    
Debt instrument, maturity year 2066  
6.50% Senior Notes, Due 2025 | Enact Holdings    
Debt Instrument [Line Items]    
Interest rate 6.50%  
Debt instrument, maturity year 2025  
v3.21.2
Borrowings - Additional Information (Detail) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Jul. 21, 2021
Mar. 31, 2021
Feb. 16, 2021
Jan. 31, 2020
Jan. 31, 2020
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Debt Instrument [Line Items]                  
Pre-tax gain (loss) on early extinguishment of debt           $ 0 $ 3 $ (4) $ (9)
Genworth Holdings                  
Debt Instrument [Line Items]                  
Debt instrument, maturity month and year       2020-06          
Pre-tax make-whole expense on redemption of senior notes         $ 9        
Genworth Holdings | 7.20% Senior Notes, Due 2021                  
Debt Instrument [Line Items]                  
Debt instrument, maturity date     Feb. 16, 2021            
Interest rate     7.20%            
Aggregate principal amount of notes redeemed     $ 338            
Redemption of senior notes     $ 350            
Genworth Holdings | 7.625% Senior Notes, Due 2021                  
Debt Instrument [Line Items]                  
Interest rate   7.625%       7.625%   7.625%  
Debt instrument, maturity month and year               2021-09  
Pre-tax gain (loss) on early extinguishment of debt   $ 4              
Aggregate principal amount of notes repurchased   $ 146              
Genworth Holdings | 7.625% Senior Notes, Due 2021 | Subsequent Event [Member]                  
Debt Instrument [Line Items]                  
Interest rate 7.625%                
Aggregate principal amount of notes redeemed $ 513                
Early redemption of senior notes 532                
Pre-tax make-whole expense on redemption of senior notes 6                
Interest paid $ 13                
v3.21.2
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
[1]
Income Tax Examination [Line Items]        
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00% 21.00%
Swaps terminated prior to the TCJA [2] 2.10% 9.20% 2.90% 97.20%
Stock-based compensation 0.00% 0.20% 0.10% 14.60%
Non-deductible expense 0.70% 1.30% 0.60% 14.50%
Tax favored investments (0.30%) (1.60%) (0.40%) (16.30%)
Other, net (0.10%) (0.60%) 0.00% 7.50%
Effective rate 23.40% 29.50% 24.20% 138.50%
[1] For the six months ended June 30, 2020, the effective tax rate of 138.5% and the associated higher percentages included in the effective tax rate reconciliation are principally due to the prior year low pre-tax income.
[2] Tax Cuts and Jobs Act.
v3.21.2
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Parenthetical) (Detail)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Tax Disclosure [Abstract]        
Effective rate 23.40% 29.50% 24.20% 138.50% [1]
[1] For the six months ended June 30, 2020, the effective tax rate of 138.5% and the associated higher percentages included in the effective tax rate reconciliation are principally due to the prior year low pre-tax income.
v3.21.2
Segment Information - Additional Information (Detail)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2020
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
Segment
Jun. 30, 2020
USD ($)
Segment Reporting Information [Line Items]            
Number of operating segments | Segment         3  
Corporate federal income tax rate     21.00% 21.00% 21.00% 21.00% [1]
Assumed tax rate on adjustments to adjusted operating income (loss)         21.00%  
Expenses related to restructuring     $ 5 $ 1 $ 26 $ 2
Pre-tax gain (loss) on early extinguishment of debt     $ 0 3 (4) (9)
Floating Rate Subordinated Notes Due in 2050 | Non-Recourse Funding Obligations            
Segment Reporting Information [Line Items]            
Pre-tax gain (loss) on early extinguishment of debt   $ 4        
Redemption of secured debt   $ 315        
Debt instrument, maturity year   2050        
Genworth Holdings            
Segment Reporting Information [Line Items]            
Pre-tax make-whole expense   $ 9        
Debt instrument, maturity month and year 2020-06          
Genworth Holdings | Senior Notes 2021            
Segment Reporting Information [Line Items]            
Pre-tax gain (loss) on early extinguishment of debt       3 $ 4 4
Debt instrument, maturity year         2021  
Debt instrument, maturity month and year         2021-09  
Repayments of Senior Debt       $ 52 $ 146 $ 66
[1] For the six months ended June 30, 2020, the effective tax rate of 138.5% and the associated higher percentages included in the effective tax rate reconciliation are principally due to the prior year low pre-tax income.
v3.21.2
Summary of Segments and Corporate and Other Activities (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]    
Assets related to discontinued operations $ 0 $ 2,817
Total assets 100,650 105,747
Segment, Continuing Operations    
Segment Reporting Information [Line Items]    
Total assets 100,650 102,930
Discontinued Operations    
Segment Reporting Information [Line Items]    
Assets related to discontinued operations 0 2,817
Enact Segment | Segment, Continuing Operations    
Segment Reporting Information [Line Items]    
Total assets 5,845 5,627
U.S. Life Insurance | Segment, Continuing Operations    
Segment Reporting Information [Line Items]    
Total assets 82,522 84,671
Runoff | Segment, Continuing Operations    
Segment Reporting Information [Line Items]    
Total assets 9,593 9,735
Corporate and Other | Segment, Continuing Operations    
Segment Reporting Information [Line Items]    
Total assets $ 2,690 $ 2,897
v3.21.2
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Segment Reporting Information [Line Items]        
Revenues $ 2,041 $ 2,003 $ 4,026 $ 3,812
Segment, Continuing Operations        
Segment Reporting Information [Line Items]        
Revenues 2,041 2,003 4,026 3,812
Segment, Continuing Operations | Enact Segment        
Segment Reporting Information [Line Items]        
Revenues 276 274 564 535
Segment, Continuing Operations | Long-term Care Insurance        
Segment Reporting Information [Line Items]        
Revenues 1,226 1,200 2,366 2,206
Segment, Continuing Operations | Life Insurance        
Segment Reporting Information [Line Items]        
Revenues 329 335 677 683
Segment, Continuing Operations | Fixed Annuities        
Segment Reporting Information [Line Items]        
Revenues 122 129 254 262
Segment, Continuing Operations | U.S. Life Insurance        
Segment Reporting Information [Line Items]        
Revenues 1,677 1,664 3,297 3,151
Segment, Continuing Operations | Runoff        
Segment Reporting Information [Line Items]        
Revenues 88 90 164 97
Segment, Continuing Operations | Corporate and Other        
Segment Reporting Information [Line Items]        
Revenues $ 0 $ (25) $ 1 $ 29
v3.21.2
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, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Segment Reporting Information [Line Items]        
Net income (loss) available to Genworth Financial, Inc.'s common stockholders $ 240 $ (441) $ 427 $ (507)
Add: net income from continuing operations attributable to noncontrolling interests 0 0 0 0
Add: net income from discontinued operations attributable to noncontrolling interests 0 23 8 17
Net income (loss) 240 (418) 435 (490)
Less: income (loss) from discontinued operations, net of taxes (5) (473) 16 (485)
Income (loss) from continuing operations 245 55 419 (5)
Less: net income (loss) from continuing operations attributable to noncontrolling interests 0 0 0 0
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders 245 55 419 (5)
Net investment (gains) losses, net [1] (70) (97) (103) (9)
(Gains) losses on early extinguishment of debt 0 (3) 4 9
Expenses related to restructuring 5 1 26 2
Taxes on adjustments 14 21 16 0
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 194 (23) 362 (3)
Segment, Continuing Operations        
Segment Reporting Information [Line Items]        
Net income (loss) 240 (418) 435 (490)
Income (loss) from continuing operations 245 55 419 (5)
Segment, Continuing Operations | Enact Segment        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 135 (3) 261 145
Segment, Continuing Operations | Long-term Care Insurance        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 98 48 193 49
Segment, Continuing Operations | Life Insurance        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders (40) (81) (103) (158)
Segment, Continuing Operations | Fixed Annuities        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 13 28 43 34
Segment, Continuing Operations | U.S. Life Insurance        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 71 (5) 133 (75)
Segment, Continuing Operations | Runoff        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders 15 24 27 11
Segment, Continuing Operations | Corporate and Other        
Segment Reporting Information [Line Items]        
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders $ (27) $ (39) $ (59) $ (84)
[1] For the three and six months ended June 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(4) million and $(15) million, respectively.
v3.21.2
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
Net Investment (Gains) Losses    
Segment Reporting Information [Line Items]    
Adjustment for DAC and other intangibles and certain benefit reserves $ (4) $ (15)
v3.21.2
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Jul. 17, 2020
Jan. 31, 2020
Jan. 31, 2021
Dec. 31, 2019
Jun. 30, 2021
Sep. 11, 2019
Commitments to Fund Limited Partnerships            
Commitments and Contingencies Disclosure [Line Items]            
Off-balance sheet risk         $ 1,187  
Commitments to fund U.S. commercial mortgage loan investments            
Commitments and Contingencies Disclosure [Line Items]            
Off-balance sheet risk         58  
Commitments to Fund Private Placement Investments            
Commitments and Contingencies Disclosure [Line Items]            
Off-balance sheet risk         98  
Commitments to Fund Bank Loan Investments            
Commitments and Contingencies Disclosure [Line Items]            
Off-balance sheet risk         $ 273  
Other Litigation            
Commitments and Contingencies Disclosure [Line Items]            
Plaintiff's Motion Dismissed   $ 395        
Loss Contingency, Damages Sought $ 5   $ 5      
Plaintiffs' motion   $ 15   $ 410    
Restricted cash proceeds on sale per litigation           $ 450
v3.21.2
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance $ 3,675 $ 3,815 $ 4,425 $ 3,433
OCI before reclassifications 193 787 (372) 1,158
Amounts reclassified from (to) OCI (34) (118) (72) (154)
Total other comprehensive income (loss) 159 669 (444) 1,004
Balances before nonnontrolling interests 3,834 4,484 3,981 4,437
Less: change in OCI attributable to noncontrolling interests 0 37 147 (10)
Ending balance 3,834 4,447 3,834 4,447
Net unrealized investment gains (losses)        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance [1] 1,919 1,140 2,214 1,456
OCI before reclassifications [1] (54) 762 (370) 448
Amounts reclassified from (to) OCI [1] 0 (88) (4) (94)
Total other comprehensive income (loss) [1] (54) 674 (374) 354
Balances before nonnontrolling interests [1] 1,865 1,814 1,840 1,810
Less: change in OCI attributable to noncontrolling interests [1] 0 3 (25) (1)
Ending balance [1] 1,865 1,811 1,865 1,811
Derivatives qualifying as hedges        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance [2] 1,792 2,755 2,211 2,002
OCI before reclassifications [2] 245 (48) (140) 735
Amounts reclassified from (to) OCI [2] (34) (30) (68) (60)
Total other comprehensive income (loss) [2] 211 (78) (208) 675
Balances before nonnontrolling interests [2] 2,003 2,677 2,003 2,677
Less: change in OCI attributable to noncontrolling interests [2] 0 0 0 0
Ending balance [2] 2,003 2,677 2,003 2,677
Foreign currency translation and other adjustments        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance (36) (80) 0 (25)
OCI before reclassifications 2 73 138 (25)
Amounts reclassified from (to) OCI 0 0 0 0
Total other comprehensive income (loss) 2 73 138 (25)
Balances before nonnontrolling interests (34) (7) 138 (50)
Less: change in OCI attributable to noncontrolling interests 0 34 172 (9)
Ending balance $ (34) $ (41) $ (34) $ (41)
[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.
v3.21.2
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Unrecognized postretirement benefit obligation, current period OCI $ (15)  
Unrecognized postretirement benefit obligation, current period OCI, tax 4  
Foreign currency translation and other adjustments, current period OCI, tax $ (1) $ 22
v3.21.2
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net investment income $ (844) $ (779) $ (1,645) $ (1,561)
Net investment (gains) losses (70) (93) (103) 6
Income taxes 75 23 134 18
(Income) loss from continuing operations (245) (55) (419) 5
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] 0 (112) (5) (119)
Income taxes 0 24 1 25
(Income) loss from continuing operations 0 (88) (4) (94)
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Income taxes 18 16 36 33
(Income) loss from continuing operations (34) (30) (68) (60)
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 (52) (46) (104) (89)
Net investment (gains) losses $ 0 $ 0 $ 0 $ (4)
[1] Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.
v3.21.2
Assets and Liabilities Held for Sale Related to Australia Mortgage Insurance Business (Detail) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Investments:      
Fixed maturity securities available-for-sale, at fair value $ 61,649 $ 63,495  
Equity securities, at fair value 147 386  
Other invested assets 2,260 2,099  
Total investments 73,018 74,701  
Cash, cash equivalents and restricted cash 2,214 2,561 $ 2,523
Accrued investment income 573 655  
Deferred acquisition costs 1,212 1,487  
Intangible assets 151 157  
Other assets 403 404  
Deferred tax asset 211 65  
Assets related to discontinued operations 0 2,817  
Liabilities      
Liability for policy and contract claims 11,546 11,486  
Unearned premiums 695 775  
Other liabilities 1,664 1,614  
Long-term borrowings 2,924 3,403  
Liabilities related to discontinued operations 346 2,370  
Genworth Australia      
Investments:      
Fixed maturity securities available-for-sale, at fair value 0 2,295  
Equity securities, at fair value 0 90  
Other invested assets 0 154  
Total investments 0 2,539  
Cash, cash equivalents and restricted cash 0 95  
Accrued investment income 0 16  
Deferred acquisition costs 0 42  
Intangible assets 0 43  
Other assets 0 40  
Deferred tax asset 0 42  
Assets related to discontinued operations 0 2,817  
Liabilities      
Liability for policy and contract claims 0 331  
Unearned premiums 0 1,193  
Other liabilities 0 104  
Long-term borrowings 0 145  
Liabilities related to discontinued operations $ 0 $ 1,773  
v3.21.2
Summary of Operating Results Related to Discontinued Operations (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Revenues:        
Premiums $ 947 $ 957 $ 1,915 $ 1,903
Net investment income 844 779 1,645 1,561
Net investment gains (losses) 70 93 103 (6)
Policy fees and other income 180 174 363 354
Benefits and expenses:        
Benefits and other changes in policy reserves 1,161 1,447 2,379 2,784
Acquisition and operating expenses, net of deferrals 304 210 579 447
Amortization of deferred acquisition costs and intangibles 86 87 163 195
Total benefits and expenses 1,721 1,925 3,473 3,799
Income from discontinued operations, net of taxes (5) (473) 16 (485)
Less: net income from discontinued operations attributable to noncontrolling interests 0 23 8 17
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders (5) (496) 8 (502)
Assets Held For Sale Related To Discontinued Operations | Genworth Australia        
Revenues:        
Premiums 0 62 51 131
Net investment income 0 7 4 18
Net investment gains (losses) 0 66 (5) 13
Policy fees and other income 0 0 0 1
Total revenues 0 135 50 163
Benefits and expenses:        
Benefits and other changes in policy reserves 0 39 11 63
Acquisition and operating expenses, net of deferrals 0 13 7 25
Amortization of deferred acquisition costs and intangibles 0 6 6 14
Goodwill impairment 0 5 0 5
Interest expense 0 2 1 3
Total benefits and expenses 0 65 25 110
Income before income taxes and loss on sale [1] 0 70 25 53
Provision for income taxes 0 23 8 18
Income before loss on sale 0 47 17 35
Loss on sale, net of taxes 0 0 (3) 0
Income from discontinued operations, net of taxes 0 47 14 35
Less: net income from discontinued operations attributable to noncontrolling interests 0 23 8 17
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders $ 0 $ 24 $ 6 $ 18
[1] The three months ended June 30, 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $37 million. The six months ended June 30, 2021 and 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $13 million and $28 million, respectively.
v3.21.2
Summary of Operating Results Related to Discontinued Operations (Parenthetical) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Genworth Australia | Parent Company [Member]      
Discontinued operation pretax income attributable to parent $ 37 $ 13 $ 28
v3.21.2
Discontinued Operations - Summary of Liabilities Related to Discontinued Operations (Detail) - AXA Settlement Agreement
£ in Millions, $ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2021
GBP (£)
Jun. 30, 2021
USD ($)
Dec. 31, 2020
GBP (£)
Dec. 31, 2020
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Installment payments due to AXA:            
Prepayments [1]     £ 0 $ 0    
Amounts billed as future losses £ 41 $ 56 29 39    
Total amounts due under the promissory note 211   346   $ 292 $ 473
Future claims:            
Estimated beginning balance 79 108 107 146    
Change in estimated future claims 0 0 1 1    
Less: Amounts billed to date (41) (56) (29) (39)    
Estimated future billings 38 52 79 108    
Total amounts due to AXA under the settlement agreement [2] 249   425   $ 344 $ 581
June 2022            
Installment payments due to AXA:            
Beginning balance 159 217 159 217    
Prepayments [1] (159) (217)        
Ending balance 0 0 159 217    
September 2022            
Installment payments due to AXA:            
Beginning balance 187 256 158 217    
Prepayments [1] (17) (28) 0 0    
Amounts billed as future losses 41 56 29 39    
Foreign exchange and other 0 8 0 0    
Ending balance 211 292 187 256    
Future claims:            
Less: Amounts billed to date £ (41) $ (56) £ (29) $ (39)    
[1] On March 3, 2021, we completed the sale of Genworth Australia and received net proceeds of approximately AUD483 million ($370 million). The sale of Genworth Australia resulted in a mandatory principal payment of approximately £176 million ($245 million) related to our outstanding secured promissory note issued to AXA, dated as of July 20, 2020, as amended by the parties in connection with the Genworth Australia sale.
[2] Amounts exclude accrued interest on the promissory note and certain other expenses. As of June 30, 2021, due principally to the mandatory payment made in connection with the Genworth Australia sale, we reduced the amount of accrued interest payable on the promissory note resulting in a reduction in the total amount owed to AXA of approximately $2 million.
v3.21.2
Discontinued Operations - Summary of Liabilities Related to Discontinued Operations (Parenthetical) (Detail)
£ in Millions, $ in Millions, $ in Millions
12 Months Ended
Mar. 03, 2021
USD ($)
Mar. 03, 2021
AUD ($)
Mar. 03, 2021
GBP (£)
Dec. 31, 2020
USD ($)
Dec. 31, 2020
GBP (£)
Genworth Mortgage Insurance Australia Limited [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]          
Proceeds from sale of disposal group including discontinuing operations $ 370 $ 483      
AXA Settlement Agreement Promissory Note [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]          
Prepayments [1]       $ 0 £ 0
AXA Settlement Agreement Promissory Note [Member] | Mandatory Payment [Member] | Promissory Note [Member] | Discontinued Operations [Member] | Genworth Mortgage Insurance Australia Limited [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]          
Prepayments 245   £ 176    
Increase decrease in accrued interest $ 2        
[1] On March 3, 2021, we completed the sale of Genworth Australia and received net proceeds of approximately AUD483 million ($370 million). The sale of Genworth Australia resulted in a mandatory principal payment of approximately £176 million ($245 million) related to our outstanding secured promissory note issued to AXA, dated as of July 20, 2020, as amended by the parties in connection with the Genworth Australia sale.
v3.21.2
Discontinued Operations - Additional Information (Detail)
€ in Millions, £ in Millions, $ in Millions, $ in Millions
3 Months Ended 6 Months Ended
Mar. 31, 2021
USD ($)
Mar. 31, 2021
GBP (£)
Mar. 03, 2021
USD ($)
Mar. 03, 2021
AUD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2021
EUR (€)
Mar. 31, 2021
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]                      
Unrelated liability         $ 4       $ 4   $ 16
Underwriting Liability [Member] | AXA [Member]                      
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]                      
Adjustments to underwriting loss                 4    
Cash settlement payment, underwriting losses         18 € 15          
Genworth Mortgage Insurance Australia Limited                      
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]                      
Proceeds from sale of disposal group including discontinuing operations     $ 370 $ 483              
Disposal group discontinued operations after tax loss on sale of the business             $ 3        
After-tax favorable adjustment             $ 11        
AXA Settlement Agreement                      
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]                      
Income loss from discontinued operations after tax         $ 4     $ 520 $ 5 $ 520  
AXA Settlement Agreement | Discontinued Operations | Promissory Note                      
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]                      
Debt instrument interest rate         2.75%       2.75%    
Percent Of Security Interest Pledged         19.90%       19.90%    
Proceeds from Issuance of debt gross                 $ 750    
Proceeds from Issuance or Sale of Equity                 $ 475    
AXA Settlement Agreement Promissory Note | Discontinued Operations | Promissory Note | Genworth Mortgage Insurance Australia Limited | Mandatory Payment                      
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items]                      
Repayment of mandatory principal payment $ 245 £ 176