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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 90-0226248 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common Stock | EQH | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | EQH PR A | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | EQH PR C | New York Stock Exchange |
Large accelerated filer |
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. o
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Evolution of Variable Annuity FYP |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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|||||||||||||||||
FYP by Product | |||||||||||||||||
SCS | $ | 4,891 | $ | 5,138 | $ | 3,926 | |||||||||||
Retirement Cornerstone | 1,506 | 2,156 | 2,479 | ||||||||||||||
Investment Edge | 448 | 548 | 537 | ||||||||||||||
Other | 328 | 349 | 366 | ||||||||||||||
Total FYP | $ | 7,173 | $ | 8,191 | $ | 7,308 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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|||||||||||||||||
FYP by Guarantee Feature | |||||||||||||||||
Non-GMxB | $ | 5,342 | $ | 5,728 | $ | 4,640 | |||||||||||
ROP Death Benefit Only | 532 | 551 | 496 | ||||||||||||||
Total Non-GMxB & ROP Death Benefit Only | $ | 5,874 | $ | 6,279 | $ | 5,136 | |||||||||||
Floating Rate GMxB | 1,278 | 1,864 | 2,124 | ||||||||||||||
Fixed Rate GMxB | 21 | 48 | 48 | ||||||||||||||
Total GMxB | $ | 1,299 | $ | 1,912 | $ | 2,172 | |||||||||||
Total FYP | $ | 7,173 | $ | 8,191 | $ | 7,308 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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|||||||||||||||||
Account Value | |||||||||||||||||
Non-GMxB | $ | 36,162 | $ | 30,694 | $ | 23,759 | |||||||||||
ROP Death Benefit Only | 10,438 | 9,620 | 8,730 | ||||||||||||||
Total Non-GMxB & ROP Death Benefit Only | $ | 46,600 | $ | 40,314 | $ | 32,489 | |||||||||||
Floating Rate GMxB | 25,168 | 23,891 | 20,633 | ||||||||||||||
Fixed Rate GMxB | 45,622 | 44,717 | 41,467 | ||||||||||||||
Total Variable Annuity AV | $ | 117,390 | $ | 108,922 | $ | 94,589 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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|||||||||||||||||
Benefit Base | |||||||||||||||||
ROP Death Benefit Only | $ | 6,141 | $ | 6,048 | $ | 6,072 | |||||||||||
Floating Rate GMxB | |||||||||||||||||
GMDB | 23,095 | 22,793 | 21,924 | ||||||||||||||
GMIB | 23,029 | 22,108 | 19,670 | ||||||||||||||
Fixed Rate GMxB | |||||||||||||||||
GMDB | 58,028 | 59,365 | 61,220 | ||||||||||||||
GMIB | $ | 60,695 | $ | 61,775 | $ | 63,431 |
FYP by Distribution |
December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Account
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Benefit
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Account
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Benefit
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Account
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Benefit
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||||||||||||||||||||||||||||||
Value
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Base
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Value
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Base
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Value
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Base
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||||||||||||||||||||||||||||||
(in millions)
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|||||||||||||||||||||||||||||||||||
GMDB In-Force (1) | |||||||||||||||||||||||||||||||||||
ROP Death Benefit Only | $ | 10,437 | $ | 6,141 | $ | 9,620 | $ | 6,048 | $ | 8,730 | $ | 6,072 | |||||||||||||||||||||||
Floating Rate GMDB | |||||||||||||||||||||||||||||||||||
Greater of Ratchet or Roll-up | 7,121 | 7,995 | 7,017 | 7,891 | 6,310 | 7,665 | |||||||||||||||||||||||||||||
All Other (2) | 18,047 | 15,100 | 16,874 | 14,902 | 14,323 | 14,259 | |||||||||||||||||||||||||||||
Total Floating Rate GMDB | $ | 25,168 | $ | 23,095 | $ | 23,891 | $ | 22,793 | $ | 20,633 | $ | 21,924 | |||||||||||||||||||||||
Fixed Rate GMDB | |||||||||||||||||||||||||||||||||||
Greater of Ratchet or Roll-up | $ | 26,800 | $ | 42,521 | $ | 26,239 | $ | 42,896 | $ | 24,242 | $ | 43,422 | |||||||||||||||||||||||
All Other (2) | 18,822 | 15,507 | 18,478 | 16,469 | 17,225 | 17,798 | |||||||||||||||||||||||||||||
Total Fixed Rate GMDB | $ | 45,622 | $ | 58,028 | $ | 44,717 | $ | 59,365 | $ | 41,467 | $ | 61,220 | |||||||||||||||||||||||
Total GMDB | $ | 81,227 | $ | 87,264 | $ | 78,228 | $ | 88,206 | $ | 70,830 | $ | 89,216 |
December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Account
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Benefit
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Account
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Benefit
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Account
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Benefit
|
||||||||||||||||||||||||||||||
Value
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Base
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Value
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Base
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Value
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Base
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||||||||||||||||||||||||||||||
(in millions)
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|||||||||||||||||||||||||||||||||||
GMLB In-Force (1) | |||||||||||||||||||||||||||||||||||
Floating Rate GMLB | |||||||||||||||||||||||||||||||||||
GMIB | $ | 22,002 | $ | 23,029 | $ | 20,699 | $ | 22,108 | $ | 16,728 | $ | 19,670 | |||||||||||||||||||||||
Other (GIB) | 2,762 | 2,978 | 2,812 | 3,128 | 3,581 | 4,214 | |||||||||||||||||||||||||||||
Total Floating Rate GMLB | $ | 24,764 | $ | 26,007 | $ | 23,511 | $ | 25,236 | $ | 20,309 | $ | 23,884 | |||||||||||||||||||||||
Fixed Rate GMLB | |||||||||||||||||||||||||||||||||||
GMIB | $ | 39,369 | $ | 60,695 | $ | 38,846 | $ | 61,775 | $ | 36,326 | $ | 63,431 | |||||||||||||||||||||||
All Other (e.g., GWBL / GMWB, GMAB, other) (2) | 830 | 1,165 | 806 | 1,175 | 785 | 1,223 | |||||||||||||||||||||||||||||
Total Fixed Rate GMLB | $ | 40,199 | $ | 61,860 | $ | 39,652 | $ | 62,950 | $ | 37,111 | $ | 64,654 | |||||||||||||||||||||||
Total GMLB | $ | 64,963 | $ | 87,867 | $ | 63,163 | $ | 88,186 | $ | 57,420 | $ | 88,538 |
December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
NAR | Reserves | NAR | Reserves | NAR | Reserves | ||||||||||||||||||||||||||||||
(in millions)
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|||||||||||||||||||||||||||||||||||
GMDB | |||||||||||||||||||||||||||||||||||
ROP Death Benefit Only (1) | $ | 84 | N/A | $ | 95 | N/A | $ | 320 | N/A | ||||||||||||||||||||||||||
Floating Rate GMDB | 943 | 332 | 904 | 272 | 1,621 | 179 | |||||||||||||||||||||||||||||
Fixed Rate GMDB | 17,244 | 4,674 | 18,123 | 4,402 | 21,332 | 4,369 | |||||||||||||||||||||||||||||
Total | $ | 18,271 | $ | 5,006 | $ | 19,122 | $ | 4,674 | $ | 23,273 | $ | 4,548 |
December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
NAR | Reserves | NAR | Reserves | NAR | Reserves | ||||||||||||||||||||||||||||||
(in millions)
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|||||||||||||||||||||||||||||||||||
GMIB | |||||||||||||||||||||||||||||||||||
Floating Rate GMIB | $ | — | $ | 136 | $ | — | $ | 91 | $ | — | $ | 42 | |||||||||||||||||||||||
Fixed Rate GMIB | 10,461 | 14,110 | 8,746 | 10,573 | 8,572 | 7,329 | |||||||||||||||||||||||||||||
Total | $ | 10,461 | $ | 14,246 | $ | 8,746 | $ | 10,664 | $ | 8,572 | $ | 7,371 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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|||||||||||||||||
Net Flows | |||||||||||||||||
Gross Premiums | $ | 3,343 | $ | 3,533 | $ | 3,383 | |||||||||||
Surrenders, Withdrawals and Benefits | (3,047) | (3,266) | (3,287) | ||||||||||||||
Net Flows | $ | 296 | $ | 267 | $ | 96 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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Gross Premiums by Market | |||||||||||||||||
Tax-Exempt | $ | 724 | $ | 902 | $ | 911 | |||||||||||
Corporate | 392 | 537 | 479 | ||||||||||||||
Other | 60 | 49 | 38 | ||||||||||||||
Total FYP | 1,176 | 1,488 | 1,428 | ||||||||||||||
Tax-Exempt | 1,632 | 1,531 | 1,450 | ||||||||||||||
Corporate | 342 | 330 | 319 | ||||||||||||||
Other | 193 | 184 | 186 | ||||||||||||||
Total Renewal Premiums | 2,167 | 2,045 | 1,955 | ||||||||||||||
Gross Premiums | $ | 3,343 | $ | 3,533 | $ | 3,383 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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AV by Market | |||||||||||||||||
Tax-Exempt | $ | 32,586 | $ | 28,895 | $ | 24,639 | |||||||||||
Corporate | 4,920 | 4,387 | 3,634 | ||||||||||||||
Other | 4,953 | 4,598 | 4,128 | ||||||||||||||
AV | $ | 42,459 | $ | 37,880 | $ | 32,401 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
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FYP by Distribution | |||||||||||||||||
Equitable Advisors
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$ | 1,078 | $ | 1,341 | $ | 1,277 | |||||||||||
Third-Party | 98 | 147 | 151 | ||||||||||||||
Total | $ | 1,176 | $ | 1,488 | $ | 1,428 |
Total General | |||||
Guaranteed Minimum Interest Rate | Account AV | ||||
(in billions)
|
|||||
1 – < 2% | $ | 3.9 | |||
2 – < 3% | 0.9 | ||||
3% | 7.1 | ||||
4% | 0.2 | ||||
Total | $ | 12.1 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in billions) | |||||||||||||||||
Institutions | $ | 315.6 | $ | 282.7 | $ | 246.3 | |||||||||||
Retail | 265.3 | 239.2 | 180.8 | ||||||||||||||
Private Wealth Management | 105.0 | 101.0 | 89.3 | ||||||||||||||
Total | $ | 685.9 | $ | 622.9 | $ | 516.4 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in billions) | |||||||||||||||||
Equity | |||||||||||||||||
Actively Managed | $ | 217.8 | $ | 177.2 | $ | 136.2 | |||||||||||
Passively Managed (1) | 64.5 | 60.1 | 50.2 | ||||||||||||||
Total Equity | 282.3 | 237.3 | 186.4 | ||||||||||||||
Fixed Income | |||||||||||||||||
Actively Managed | |||||||||||||||||
Taxable | 263.2 | 258.3 | 219.7 | ||||||||||||||
Tax-exempt | 50.3 | 47.1 | 41.7 | ||||||||||||||
Total Actively Managed | 313.5 | 305.4 | 261.4 | ||||||||||||||
Passively Managed (1) | 8.5 | 9.3 | 9.4 | ||||||||||||||
Total Fixed Income | 322.0 | 314.7 | 270.8 | ||||||||||||||
Alternatives/Multi-Asset Solutions (2) | |||||||||||||||||
Actively Managed | 79.1 | 69.3 | 58.3 | ||||||||||||||
Passively Managed (1) | 2.5 | 1.6 | 0.9 | ||||||||||||||
Total Other | 81.6 | 70.9 | 59.2 | ||||||||||||||
Total | $ | 685.9 | $ | 622.9 | $ | 516.4 |
Distribution Channel | |||||||||||||||||||||||
Institutions | Retail |
Private Wealth Management
|
Total | ||||||||||||||||||||
(in billions) | |||||||||||||||||||||||
Balance, December 31, 2019 | $ | 282.7 | $ | 239.2 | $ | 101.0 | $ | 622.9 | |||||||||||||||
Long-term flows: | |||||||||||||||||||||||
Sales/new accounts | 30.9 | 78.9 | 14.3 | 124.1 | |||||||||||||||||||
Redemptions/terminations | (23.3) | (69.5) | (16.5) | (109.3) | |||||||||||||||||||
Cash flow/unreinvested dividends | (6.6) | (11.0) | 0.2 | (17.4) | |||||||||||||||||||
Net long-term inflows (outflows) (2) | 1.0 | (1.6) | (2.0) | (2.6) | |||||||||||||||||||
Adjustments | — | — | — | — | |||||||||||||||||||
Acquisitions | — | 0.2 | — | 0.2 | |||||||||||||||||||
Transfers | 1.4 | (0.6) | (0.8) | — | |||||||||||||||||||
Market appreciation | 30.5 | 28.1 | 6.8 | 65.4 | |||||||||||||||||||
Net change | 32.9 | 26.1 | 4.0 | 63.0 | |||||||||||||||||||
Balance, December 31, 2020 | $ | 315.6 | $ | 265.3 | $ | 105.0 | $ | 685.9 |
Distribution Channel
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Institutions
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Retail
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Private Wealth Management
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Total
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(in billions)
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Balance, December 31, 2018 | $ | 246.3 | $ | 180.8 | $ | 89.3 | $ | 516.4 | |||||||||||||||
Long-term flows: | |||||||||||||||||||||||
Sales/new accounts | 17.1 | 75.3 | 11.3 | 103.7 | |||||||||||||||||||
Redemptions/terminations | (12.0) | (44.0) | (12.4) | (68.4) | |||||||||||||||||||
Cash flow/unreinvested dividends | (2.7) | (7.5) | 0.1 | (10.1) | |||||||||||||||||||
Net long-term (outflows) inflows | 2.4 | 23.8 | (1.0) | 25.2 | |||||||||||||||||||
Adjustments (1) | — | — | (0.9) | (0.9) | |||||||||||||||||||
Acquisitions | — | — | — | — | |||||||||||||||||||
Transfers | — | 0.1 | (0.1) | — | |||||||||||||||||||
Market depreciation | 34.0 | 34.5 | 13.7 | 82.2 | |||||||||||||||||||
Net change | 36.4 | 58.4 | 11.7 | 106.5 | |||||||||||||||||||
Balance, December 31, 2019 | $ | 282.7 | $ | 239.2 | $ | 101.0 | $ | 622.9 |
Investment Services
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Equity Actively Managed
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Equity Passively Managed (1)
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Fixed Income Actively Managed—Taxable
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Fixed Income Actively Managed—Tax Exempt
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Fixed Income Passively Managed (1)
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Alternatives
/Multi-Asset
Solutions (2)
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Total
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(in billions)
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Balance, December 31, 2019 | $ | 177.2 | $ | 60.1 | $ | 258.3 | $ | 47.1 | $ | 9.3 | $ | 70.9 | $ | 622.9 | |||||||||||||||||||||||||||
Long-term flows: | |||||||||||||||||||||||||||||||||||||||||
Sales/new accounts | 51.4 | 1.7 | 54.3 | 10.3 | — | 6.4 | 124.1 | ||||||||||||||||||||||||||||||||||
Redemptions/terminations | (36.7) | (1.9) | (58.3) | (9.5) | (0.3) | (2.6) | (109.3) | ||||||||||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (7.3) | (4.4) | (5.8) | 0.2 | (1.3) | 1.2 | (17.4) | ||||||||||||||||||||||||||||||||||
Net long-term inflows (outflows) (3) | 7.4 | (4.6) | (9.8) | 1.0 | (1.6) | 5.0 | (2.6) | ||||||||||||||||||||||||||||||||||
Adjustments | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Acquisitions | — | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||
Market appreciation | 33.2 | 9.0 | 14.7 | 2.2 | 0.8 | 5.5 | 65.4 | ||||||||||||||||||||||||||||||||||
Net change | 40.6 | 4.4 | 4.9 | 3.2 | (0.8) | 10.7 | 63.0 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 217.8 | $ | 64.5 | $ | 263.2 | $ | 50.3 | $ | 8.5 | $ | 81.6 | $ | 685.9 |
Investment Services
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Equity Actively Managed
|
Equity Passively Managed (1)
|
Fixed Income Actively Managed—Taxable
|
Fixed Income Actively Managed—Tax Exempt
|
Fixed Income Passively Managed (1)
|
Alternatives
/Multi-Asset
Solutions (2)
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Total
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|||||||||||||||||||||||||||||||||||
(in billions)
|
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Balance, December 31, 2018 | $ | 136.2 | $ | 50.2 | $ | 219.7 | $ | 41.7 | $ | 9.4 | $ | 59.2 | $ | 516.4 | |||||||||||||||||||||||||||
Long-term flows: | |||||||||||||||||||||||||||||||||||||||||
Sales/new accounts | 34.7 | 0.5 | 53.0 | 10.0 | 0.1 | 5.4 | 103.7 | ||||||||||||||||||||||||||||||||||
Redemptions/terminations | (26.4) | (0.8) | (31.5) | (6.8) | (0.4) | (2.5) | (68.4) | ||||||||||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (4.3) | (3.8) | (2.8) | (0.2) | (0.6) | 1.6 | (10.1) | ||||||||||||||||||||||||||||||||||
Net long-term inflows (outflows) | 4.0 | (4.1) | 18.7 | 3.0 | (0.9) | 4.5 | 25.2 | ||||||||||||||||||||||||||||||||||
Adjustments (4) | — | — | (0.4) | (0.5) | — | — | (0.9) | ||||||||||||||||||||||||||||||||||
Acquisitions | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Market appreciation | 37.0 | 14.0 | 20.3 | 2.9 | 0.8 | 7.2 | 82.2 | ||||||||||||||||||||||||||||||||||
Net change | 41.0 | 9.9 | 38.6 | 5.4 | (0.1) | 11.7 | 106.5 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | 177.2 | $ | 60.1 | $ | 258.3 | $ | 47.1 | $ | 9.3 | $ | 70.9 | $ | 622.9 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in billions)
|
|||||||||||||||||
Actively Managed | |||||||||||||||||
Equity | $ | 7.4 | $ | 4.0 | $ | 10.8 | |||||||||||
Fixed Income | (8.8) | 21.7 | (18.6) | ||||||||||||||
Alternatives/Multi-Asset Solutions | 4.5 | 4.0 | (0.1) | ||||||||||||||
$ | 3.1 | $ | 29.7 | $ | (7.9) | ||||||||||||
Passively Managed | |||||||||||||||||
Equity | $ | (4.6) | $ | (4.1) | $ | (0.2) | |||||||||||
Fixed Income | (1.6) | (0.9) | (0.3) | ||||||||||||||
Alternatives/Multi-Asset Solutions | 0.5 | 0.5 | 0.3 | ||||||||||||||
(5.7) | (4.5) | (0.2) | |||||||||||||||
Total net long-term inflows (outflows) | $ | (2.6) | $ | 25.2 | $ | (8.1) |
|
Year Ended December 31, | ||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||
(in billions) | |||||||||||||||||
Distribution Channel: | |||||||||||||||||
Institutions | $ | 285.9 | $ | 265.4 | $ | 258.1 | |||||||||||
Retail | 236.5 | 212.3 | 191.8 | ||||||||||||||
Private Wealth Management | 97.1 | 96.5 | 94.3 | ||||||||||||||
Total | $ | 619.5 | $ | 574.2 | $ | 544.2 | |||||||||||
|
Year Ended December 31, | ||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||
(in billions) | |||||||||||||||||
Investment Service: | |||||||||||||||||
Equity Actively Managed | $ | 179.8 | $ | 158.4 | $ | 146.4 | |||||||||||
Equity Passively Managed (1) | 57.1 | 56.4 | 53.8 | ||||||||||||||
Fixed Income Actively Managed – Taxable | 254.4 | 239.7 | 230.3 | ||||||||||||||
Fixed Income Actively Managed – Tax-exempt | 47.9 | 44.6 | 41.3 | ||||||||||||||
Fixed Income Passively Managed (1) | 9.4 | 9.4 | 9.8 | ||||||||||||||
Alternatives/Multi-Asset Solutions (2) | 70.9 | 65.7 | 62.6 | ||||||||||||||
Total | $ | 619.5 | $ | 574.2 | $ | 544.2 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Investment advisory and services fees: | |||||||||||||||||
Institutions | |||||||||||||||||
Base fees | $ | 458 | $ | 451 | $ | 445 | |||||||||||
Performance-based fees | 53 | 28 | 33 | ||||||||||||||
511 | 479 | 478 | |||||||||||||||
Retail: | |||||||||||||||||
Base fees | 1,187 | 1,076 | 992 | ||||||||||||||
Performance-based fees | 24 | 23 | 18 | ||||||||||||||
1,211 | 1,099 | 1,010 | |||||||||||||||
Private Wealth Management: | |||||||||||||||||
Base fees | 818 | 845 | 807 | ||||||||||||||
Performance-based fees | 55 | 49 | 67 | ||||||||||||||
873 | 894 | 874 | |||||||||||||||
Total: |
|
||||||||||||||||
Base fees | 2,463 | 2,372 | 2,244 | ||||||||||||||
Performance-based fees | 132 | 100 | 118 | ||||||||||||||
2,595 | 2,472 | 2,362 | |||||||||||||||
Bernstein Research Services | 460 | 408 | 439 | ||||||||||||||
Distribution revenues | 530 | 455 | 419 | ||||||||||||||
Dividend and interest income | 51 | 104 | 98 | ||||||||||||||
Investment (losses) gains | (16) | 39 | 3 | ||||||||||||||
Other revenues | 105 | 98 | 99 | ||||||||||||||
Total revenues | 3,725 | 3,576 | 3,420 | ||||||||||||||
Less: Interest expense | 16 | 57 | 52 | ||||||||||||||
Net revenues | $ | 3,709 | $ | 3,519 | $ | 3,368 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Annualized Premium | |||||||||||||||||
Indexed Universal Life | $ | 60 | $ | 77 | $ | 81 | |||||||||||
Variable Universal Life | 91 | 107 | 107 | ||||||||||||||
Term | 18 | 20 | 19 | ||||||||||||||
Other (1) | — | 2 | 3 | ||||||||||||||
Total | $ | 169 | $ | 206 | $ | 210 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
FYP by Product Line | |||||||||||||||||
Universal Life | $ | — | $ | 2 | $ | 3 | |||||||||||
Indexed Universal Life | 144 | 203 | 216 | ||||||||||||||
Variable Universal Life | 144 | 181 | 176 | ||||||||||||||
Term | 18 | 20 | 19 | ||||||||||||||
Other (1) | 1 | 1 | 1 | ||||||||||||||
Total | $ | 307 | $ | 407 | $ | 415 | |||||||||||
Renewals by Product Line | |||||||||||||||||
Universal Life | $ | 845 | $ | 895 | $ | 918 | |||||||||||
Indexed Universal Life | 276 | 248 | 224 | ||||||||||||||
Variable Universal Life | 947 | 921 | 904 | ||||||||||||||
Term | 375 | 498 | 483 | ||||||||||||||
Other (1) | 19 | 22 | 24 | ||||||||||||||
Total | $ | 2,462 | $ | 2,584 | $ | 2,553 | |||||||||||
Total Gross Premiums | $ | 2,769 | $ | 2,991 | $ | 2,968 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in billions)
|
|||||||||||||||||
In-force face amount by product: (1) | |||||||||||||||||
Universal Life (2) | $ | 48.7 | $ | 53.3 | $ | 55.9 | |||||||||||
Indexed Universal Life | 27.7 | 25.8 | 22.9 | ||||||||||||||
Variable Universal Life (3) | 127.7 | 127.5 | 127.3 | ||||||||||||||
Term (4) | 215.2 | 234.9 | 234.9 | ||||||||||||||
Whole Life | 1.3 | 1.4 | 1.4 | ||||||||||||||
Total in-force face amount | $ | 420.6 | $ | 442.9 | $ | 442.4 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Protection Solutions Reserves (5) | |||||||||||||||||
General Account | $ | 18,905 | $ | 17,300 | $ | 17,538 | |||||||||||
Separate Accounts | 14,771 | 13,616 | 11,393 | ||||||||||||||
Total Protection Solutions Reserves | $ | 33,676 | $ | 30,916 | $ | 28,931 |
Shift in Product Sales (Annualized Premiums) |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Annualized Premium by Distribution | |||||||||||||||||
Equitable Advisors
|
$ | 126 | $ | 157 | $ | 165 | |||||||||||
Third-Party Firms | 42 | 49 | 45 | ||||||||||||||
Total | $ | 168 | $ | 206 | $ | 210 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
CS Life In-Force VA | |||||||||||||||||
GMDB | |||||||||||||||||
Policy Count (in thousands) | 152 | 168 | 193 | ||||||||||||||
Reinsured Account Value (in billions) | $ | 8 | $ | 8 | $ | 8 | |||||||||||
Net amount at risk (in millions) | $ | 333 | $ | 410 | $ | 1,040 | |||||||||||
Reserves (in millions) | $ | 72 | $ | 76 | $ | 82 | |||||||||||
GMIB | |||||||||||||||||
Policy Count (in thousands) | 40 | 43 | 48 | ||||||||||||||
Reinsured Account Value (in billions) | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Net amount at risk (in millions) | $ | 248 | $ | 312 | $ | 362 | |||||||||||
Reserves (in millions) | $ | 195 | $ | 186 | $ | 183 |
Period
|
Total Number of Shares (or Units) Purchased
|
Average Price Paid per Share (or Unit)
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Programs |
Approximate Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Program (1)
|
|||||||||||||||||||
Month #1 (October 1-31) | — | $ | — | — | $ | 270,431,173 | |||||||||||||||||
Month #2 (November 1-30) | 4,011,608 | $ | 24.93 | 4,011,608 | $ | 170,438,612 | |||||||||||||||||
Month #3 (December 1-31) | — | $ | — | — | $ | 170,438,612 | |||||||||||||||||
Total | 4,011,608 | $ | 24.93 | 4,011,608 | $ | 170,438,612 |
May 14, 2018 | Jun 30, 2018 | Sep 30, 2018 | Dec 31, 2018 | Mar 31, 2019 | Jun 30, 2019 | Sep 30, 2019 | Dec 31, 2019 |
Mar 31,
2020 |
Jun 30,
2020 |
Sep 30,
2020 |
Dec 31,
2020 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equitable Holdings, Inc. | $ | 100.00 | $ | 96.35 | $ | 100.86 | $ | 78.71 | $ | 95.93 | $ | 100.28 | $ | 107.11 | $ | 120.53 | $ | 70.48 | $ | 94.93 | $ | 90.47 | $ | 127.79 | |||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 | $ | 100.00 | $ | 99.93 | $ | 107.63 | $ | 93.08 | $ | 105.79 | $ | 110.34 | $ | 112.21 | $ | 122.39 | $ | 98.30 | $ | 118.49 | $ | 129.07 | $ | 144.74 | |||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 Financials | $ | 100.00 | $ | 94.40 | $ | 98.51 | $ | 85.59 | $ | 92.92 | $ | 100.35 | $ | 102.37 | $ | 113.09 | $ | 85.03 | $ | 97.50 | $ | 100.52 | $ | 118.38 | |||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 Insurance | $ | 100.00 | $ | 95.88 | $ | 102.59 | $ | 91.70 | $ | 103.47 | $ | 115.60 | $ | 117.15 | $ | 118.64 | $ | 76.98 | $ | 86.37 | $ | 90.21 | $ | 111.13 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Impact of assumption updates on Net income (loss): | |||||||||||||||||
Variable annuity product features related assumption updates | $ | (1,531) | $ | (1,467) | $ | (366) | |||||||||||
All other assumption updates | (1,060) | 76 | 206 | ||||||||||||||
Impact of assumption updates on Income (loss) from continuing operations, before income tax | (2,591) | (1,391) | (160) | ||||||||||||||
Income tax (expense) benefit on assumption updates | 544 | 292 | 29 | ||||||||||||||
Net income (loss) impact of assumption updates | $ | (2,047) | $ | (1,099) | $ | (131) |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Impact of assumption updates by segment: | |||||||||||||||||
Individual Retirement | $ | (28) | $ | 104 | $ | 59 | |||||||||||
Group Retirement | (3) | 3 | 43 | ||||||||||||||
Protection Solutions | 4 | (4) | 107 | ||||||||||||||
Impact of assumption updates on Corporate and Other | (12) | (27) | (3) | ||||||||||||||
Total impact on pre-tax Non-GAAP operating earnings | $ | (39) | $ | 76 | $ | 206 |
Year Ended December 31, 2020 | |||||||||||||||||
COVID-19 Impacts
|
|||||||||||||||||
Interest Rate Assumption Update
|
Impacts other than Interest Rate Assumption
Update (1) |
Total
|
|||||||||||||||
(in millions)
|
|||||||||||||||||
Net income (loss) from continuing operations, before income taxes by Segment and Corporate and Other:
|
|||||||||||||||||
Individual Retirement | (1,417) | $ | (43) | $ | (1,460) | ||||||||||||
Group Retirement | (51) | — | (51) | ||||||||||||||
Protection Solutions | (1,016) | (75) | (1,091) | ||||||||||||||
Corporate and Other | (33) | (3) | (36) | ||||||||||||||
Net income (loss) from continuing operations, before income taxes | $ | (2,517) | $ | (121) | $ | (2,638) | |||||||||||
|
|
|
|||||||||||||||
COVID-19-related adjustments included in Reconciliation of Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings: | |||||||||||||||||
Variable annuities product features | (1,468) | (35) | (1,503) | ||||||||||||||
Other adjustments | (1,049) | (86) | (1,135) | ||||||||||||||
Net income (loss) from continuing operations, before income taxes | $ | (2,517) | $ | (121) | $ | (2,638) |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | (648) | $ | (1,764) | $ | 1,855 | |||||||||||||||||||||||
Adjustments related to: | |||||||||||||||||||||||||||||
Variable annuity product features (1) | 3,912 | 4,863 | (63) | ||||||||||||||||||||||||||
Investment (gains) losses | (744) | (73) | 86 | ||||||||||||||||||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 109 | 99 | 215 | ||||||||||||||||||||||||||
Other adjustments (2) (3) | 952 | 395 | 301 | ||||||||||||||||||||||||||
Income tax expense (benefit) related to above adjustments (4) | (888) | (1,097) | (125) | ||||||||||||||||||||||||||
Non-recurring tax items (5) | (391) | (66) | (73) | ||||||||||||||||||||||||||
Non-GAAP operating earning | $ | 2,302 | $ | 2,357 | $ | 2,196 |
Year Ended December 31, 2020 | |||||
(in millions)
|
|||||
Net income (loss) available to Holdings’ common shareholders | $ | (701) | |||
Average equity attributable to Holdings’ common shareholders, excluding AOCI | $ | 13,000 | |||
Return on average equity attributable to Holdings’ common shareholders, excluding AOCI | (5.4) | % | |||
Non-GAAP operating earnings available to Holdings’ common shareholders | $ | 2,249 | |||
Average equity attributable to Holdings’ common shareholders, excluding AOCI | $ | 13,000 | |||
Non-GAAP Operating ROE | 17.3 | % |
Individual Retirement
|
Group Retirement
|
Protection Solutions
|
|||||||||||||||
(in millions)
|
|||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||
Operating earnings | $ | 1,536 | $ | 491 | $ | 146 | |||||||||||
Average capital (1) | $ | 6,352 | $ | 1,073 | $ | 2,170 | |||||||||||
Non-GAAP Operating ROC
|
24.2 | % | 45.8 | % | 6.7 | % | |||||||||||
Year Ended December 31, 2019 | |||||||||||||||||
Operating earnings | $ | 1,598 | $ | 390 | $ | 336 | |||||||||||
Average capital (1) | $ | 7,357 | $ | 1,333 | $ | 2,998 | |||||||||||
Non-GAAP Operating ROC | 21.7 | % | 29.3 | % | 11.2 | % | |||||||||||
Year Ended December 31, 2018 | |||||||||||||||||
Operating earnings | $ | 1,552 | $ | 389 | $ | 207 | |||||||||||
Average capital (1) | $ | 6,916 | $ | 1,227 | $ | 2,658 | |||||||||||
Non-GAAP Operating ROC | 22.4 | % | 31.7 | % | 7.8 | % |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(per share amounts)
|
|||||||||||||||||
Net income (loss) attributable to Holdings | $ | (1.44) | $ | (3.57) | $ | 3.33 | |||||||||||
Less: Preferred stock dividends | 0.12 | — | — | ||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | (1.56) | $ | (3.57) | $ | 3.33 | |||||||||||
Adjustments related to: | |||||||||||||||||
Variable annuity product features (1) | 8.68 | 9.85 | (0.11) | ||||||||||||||
Investment (gains) losses | (1.65) | (0.15) | 0.15 | ||||||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 0.24 | 0.20 | 0.39 | ||||||||||||||
Other adjustments (2) (3) | 2.12 | 0.80 | 0.54 | ||||||||||||||
Income tax expense (benefit) related to above adjustments (4) | (1.97) | (2.22) | (0.22) | ||||||||||||||
Non-recurring tax items (5) | (0.87) | (0.13) | (0.13) | ||||||||||||||
Non-GAAP operating earnings | $ | 4.99 | $ | 4.78 | $ | 3.95 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions, except per share data)
|
|||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Policy charges and fee income | $ | 3,735 | $ | 3,778 | $ | 3,834 | |||||||||||||||||||||||
Premiums | 997 | 1,147 | 1,094 | ||||||||||||||||||||||||||
Net derivative gains (losses) | (1,722) | (4,012) | (250) | ||||||||||||||||||||||||||
Net investment income (loss) | 3,477 | 3,699 | 2,693 | ||||||||||||||||||||||||||
Investment gains (losses), net: | |||||||||||||||||||||||||||||
Credit losses on Available for Sale debt securities and loans | (58) | — | (42) | ||||||||||||||||||||||||||
Other investment gains (losses), net | 802 | 73 | (44) | ||||||||||||||||||||||||||
Total investment gains (losses), net | 744 | 73 | (86) | ||||||||||||||||||||||||||
Investment management and service fees | 4,608 | 4,380 | 4,268 | ||||||||||||||||||||||||||
Other income | 576 | 554 | 516 | ||||||||||||||||||||||||||
Total revenues | 12,415 | 9,619 | 12,069 | ||||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||
Policyholders’ benefits | 5,326 | 4,385 | 2,856 | ||||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 1,222 | 1,263 | 1,067 | ||||||||||||||||||||||||||
Compensation and benefits | 2,096 | 2,081 | 2,079 | ||||||||||||||||||||||||||
Commissions and distribution-related payments | 1,351 | 1,242 | 1,165 | ||||||||||||||||||||||||||
Interest expense | 200 | 221 | 231 | ||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 1,613 | 597 | 371 | ||||||||||||||||||||||||||
Other operating costs and expenses | 1,700 | 1,890 | 1,810 | ||||||||||||||||||||||||||
Total benefits and other deductions | 13,508 | 11,679 | 9,579 | ||||||||||||||||||||||||||
Income (loss) from continuing operations, before income taxes | (1,093) | (2,060) | 2,490 | ||||||||||||||||||||||||||
Income tax (expense) benefit | 744 | 593 | (301) | ||||||||||||||||||||||||||
Net income (loss) | (349) | (1,467) | 2,189 | ||||||||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 299 | 297 | 334 | ||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | (648) | $ | (1,764) | $ | 1,855 | |||||||||||||||||||||||
Less: Preferred stock dividends | 53 | — | — | ||||||||||||||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | (701) | $ | (1,764) | $ | 1,855 | |||||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||
Net income (loss) applicable to Holdings’ common shareholders per common share: | |||||||||||||||||||||||||||||
Basic | $ | (1.56) | $ | (3.57) | $ | 3.33 | |||||||||||||||||||||||
Diluted | $ | (1.56) | $ | (3.57) | $ | 3.33 | |||||||||||||||||||||||
Weighted average common shares outstanding (in millions): | |||||||||||||||||||||||||||||
Basic | 450.4 | 493.6 | 556.4 | ||||||||||||||||||||||||||
Diluted | 450.4 | 493.6 | 556.5 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Non-GAAP operating earnings | $ | 2,302 | $ | 2,357 | $ | 2,196 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Non-GAAP operating earnings per common share: | ||||||||||||||||||||||||||
Basic | $ | 4.99 | $ | 4.78 | $ | 3.95 | ||||||||||||||||||||
Diluted | $ | 4.99 | $ | 4.78 | $ | 3.95 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Operating earnings (loss) by segment: | |||||||||||||||||||||||||||||
Individual Retirement | $ | 1,536 | $ | 1,598 | $ | 1,544 | |||||||||||||||||||||||
Group Retirement | 491 | 390 | 389 | ||||||||||||||||||||||||||
Investment Management and Research | 432 | 381 | 381 | ||||||||||||||||||||||||||
Protection Solutions | 146 | 336 | 237 | ||||||||||||||||||||||||||
Corporate and Other | (303) | (348) | (355) | ||||||||||||||||||||||||||
Non-GAAP operating earnings | $ | 2,302 | $ | 2,357 | $ | 2,196 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Operating earnings | $ | 1,536 | $ | 1,598 | $ | 1,544 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Policy charges, fee income and premiums | $ | 2,034 | $ | 2,085 | $ | 2,124 | |||||||||||||||||||||||
Net investment income | 1,246 | 1,148 | 981 | ||||||||||||||||||||||||||
Net derivative gains (losses) | 331 | 362 | 187 | ||||||||||||||||||||||||||
Investment management, service fees and other income | 700 | 730 | 752 | ||||||||||||||||||||||||||
Segment revenues | $ | 4,311 | $ | 4,325 | $ | 4,044 | |||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||
Policyholders’ benefits | $ | 1,207 | $ | 1,184 | $ | 1,064 | |||||||||||||||||||||||
Interest credited to policyholders’ account balances | 312 | 310 | 206 | ||||||||||||||||||||||||||
Commissions and distribution-related payments | 281 | 281 | 291 | ||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 299 | 181 | 223 | ||||||||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 382 | 435 | 414 | ||||||||||||||||||||||||||
Interest expense | — | — | — | ||||||||||||||||||||||||||
Segment benefits and other deductions | $ | 2,481 | $ | 2,391 | $ | 2,198 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
AV | |||||||||||||||||
General Account | $ | 30,783 | $ | 26,108 | $ | 20,631 | |||||||||||
Separate Accounts | 86,607 | 82,814 | 73,958 | ||||||||||||||
Total AV | $ | 117,390 | $ | 108,922 | $ | 94,589 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 108,922 | $ | 94,589 | $ | 103,423 | |||||||||||||||||||||||
Gross premiums | 7,493 | 8,572 | 7,893 | ||||||||||||||||||||||||||
Surrenders, withdrawals and benefits | (8,622) | (9,071) | (9,091) | ||||||||||||||||||||||||||
Net flows | (1,129) | (499) | (1,198) | ||||||||||||||||||||||||||
Investment performance, interest credited and policy charges | 9,606 | 15,290 | (7,636) | ||||||||||||||||||||||||||
Transfer to Corporate and Other and other adjustments (1) (2) | (9) | (458) | — | ||||||||||||||||||||||||||
Balance as of end of period | $ | 117,390 | $ | 108,922 | $ | 94,589 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
Operating earnings | $ | 491 | $ | 390 | $ | 389 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Policy charges, fee income and premiums | $ | 295 | $ | 279 | $ | 271 | ||||||||||||||||||||
Net investment income | 641 | 590 | 552 | |||||||||||||||||||||||
Net derivative gains (losses) | 1 | 4 | 2 | |||||||||||||||||||||||
Investment management, service fees and other income | 211 | 204 | 194 | |||||||||||||||||||||||
Segment revenues | $ | 1,148 | $ | 1,077 | $ | 1,019 | ||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | ||||||||||||||||||||||||||
Policyholders’ benefits | $ | 2 | $ | 2 | $ | 4 | ||||||||||||||||||||
Interest credited to policyholders’ account balances | 303 | 302 | 290 | |||||||||||||||||||||||
Commissions and distribution-related payments | 45 | 42 | 42 | |||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 21 | 35 | (7) | |||||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 192 | 224 | 225 | |||||||||||||||||||||||
Interest expense | — | — | — | |||||||||||||||||||||||
Segment benefits and other deductions | $ | 563 | $ | 605 | $ | 554 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
AV | |||||||||||||||||
General Account | $ | 12,826 | $ | 12,071 | $ | 11,619 | |||||||||||
Separate Accounts | 29,633 | 25,809 | 20,782 | ||||||||||||||
Total AV | $ | 42,459 | $ | 37,880 | $ | 32,401 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
Balance as of beginning of period | $ | 37,880 | $ | 32,401 | $ | 33,906 | ||||||||||||||||||||
Gross premiums | 3,343 | 3,533 | 3,383 | |||||||||||||||||||||||
Surrenders, withdrawals and benefits | (3,047) | (3,266) | (3,287) | |||||||||||||||||||||||
Net flows | 296 | 267 | 96 | |||||||||||||||||||||||
Investment performance, interest credited and policy charges | 4,283 | 5,212 | (1,601) | |||||||||||||||||||||||
Balance as of end of period | $ | 42,459 | $ | 37,880 | $ | 32,401 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
Operating earnings | $ | 432 | $ | 381 | $ | 381 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Net investment income | $ | 31 | $ | 57 | $ | (10) | ||||||||||||||||||||
Net derivative gains (losses) | (36) | (38) | 12 | |||||||||||||||||||||||
Investment management, service fees and other income | 3,708 | 3,460 | 3,409 | |||||||||||||||||||||||
Segment revenues | $ | 3,703 | $ | 3,479 | $ | 3,411 | ||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | ||||||||||||||||||||||||||
Commissions and distribution related payments | $ | 569 | $ | 488 | $ | 427 | ||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 2,211 | 2,174 | 2,115 | |||||||||||||||||||||||
Interest expense | 6 | 10 | 8 | |||||||||||||||||||||||
Segment benefits and other deductions | $ | 2,786 | $ | 2,672 | $ | 2,550 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
|
(in billions)
|
||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 622.9 | $ | 516.4 | $ | 554.5 | |||||||||||||||||||||||
Long-term flows | |||||||||||||||||||||||||||||
Sales/new accounts | 124.1 | 103.7 | 93.8 | ||||||||||||||||||||||||||
Redemptions/terminations | (109.3) | (68.4) | (87.6) | ||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (17.4) | (10.1) | (14.3) | ||||||||||||||||||||||||||
Net long-term (outflows) inflows (1) | (2.6) | 25.2 | (8.1) | ||||||||||||||||||||||||||
Acquisition | 0.2 | — | — | ||||||||||||||||||||||||||
AUM adjustment (2) | — | (0.9) | — | ||||||||||||||||||||||||||
Market appreciation (depreciation) | 65.4 | 82.2 | (30.0) | ||||||||||||||||||||||||||
Net change | 63.0 | 106.5 | (38.1) | ||||||||||||||||||||||||||
Balance as of end of period | $ | 685.9 | $ | 622.9 | $ | 516.4 |
|
Year Ended December 31, | ||||||||||||||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||||||||||||||
(in billions)
|
|||||||||||||||||||||||||||||
Distribution Channel: | |||||||||||||||||||||||||||||
Institutions | $ | 285.9 | $ | 265.4 | $ | 258.1 | |||||||||||||||||||||||
Retail | 236.5 | 212.3 | 191.8 | ||||||||||||||||||||||||||
Private Wealth Management | 97.1 | 96.5 | 94.3 | ||||||||||||||||||||||||||
Total | $ | 619.5 | $ | 574.2 | $ | 544.2 | |||||||||||||||||||||||
Investment Service: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 179.8 | $ | 158.4 | $ | 146.4 | |||||||||||||||||||||||
Equity Passively Managed (1) | 57.1 | 56.4 | 53.8 | ||||||||||||||||||||||||||
Fixed Income Actively Managed – Taxable | 254.4 | 239.7 | 230.3 | ||||||||||||||||||||||||||
Fixed Income Actively Managed – Tax-exempt | 47.9 | 44.6 | 41.3 | ||||||||||||||||||||||||||
Fixed Income Passively Managed (1) | 9.4 | 9.4 | 9.8 | ||||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions (2) | 70.9 | 65.7 | 62.6 | ||||||||||||||||||||||||||
Total | $ | 619.5 | $ | 574.2 | $ | 544.2 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
Operating earnings (loss) | $ | 146 | $ | 336 | $ | 237 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Policy charges, fee income and premiums | $ | 1,970 | $ | 2,148 | $ | 2,112 | ||||||||||||||||||||
Net investment income | 944 | 967 | 901 | |||||||||||||||||||||||
Net derivative gains (losses) | 5 | 10 | 5 | |||||||||||||||||||||||
Investment management, service fees and other income | 225 | 241 | 223 | |||||||||||||||||||||||
Segment revenues | $ | 3,144 | $ | 3,366 | $ | 3,241 | ||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | ||||||||||||||||||||||||||
Policyholders’ benefits | $ | 1,875 | $ | 1,655 | $ | 1,780 | ||||||||||||||||||||
Interest credited to policyholders’ account balances | 514 | 520 | 481 | |||||||||||||||||||||||
Commissions and distribution related payments | 160 | 166 | 147 | |||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 84 | 275 | 167 | |||||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 337 | 347 | 380 | |||||||||||||||||||||||
Interest expense | — | — | — | |||||||||||||||||||||||
Segment benefits and other deductions | $ | 2,970 | $ | 2,963 | $ | 2,955 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Protection Solutions Reserves (1) | |||||||||||||||||
General Account | $ | 18,905 | $ | 17,300 | $ | 17,538 | |||||||||||
Separate Accounts | 14,771 | 13,616 | 11,393 | ||||||||||||||
Total Protection Solutions Reserves | $ | 33,676 | $ | 30,916 | $ | 28,931 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in billions) | |||||||||||||||||
In-force face amount by product: (1) | |||||||||||||||||
Universal Life (2)
|
$ | 48.7 | $ | 53.3 | $ | 55.9 | |||||||||||
Indexed Universal Life
|
27.7 | 25.8 | 22.9 | ||||||||||||||
Variable Universal Life (3)
|
127.7 | 127.5 | 127.3 | ||||||||||||||
Term (4)
|
215.2 | 234.9 | 234.9 | ||||||||||||||
Whole Life
|
1.3 | 1.4 | 1.4 | ||||||||||||||
Total in-force face amount | $ | 420.6 | $ | 442.9 | $ | 442.4 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Operating earnings (loss) | $ | (303) | $ | (348) | $ | (355) |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Yield | Amount (2) | Yield | Amount (2) | Yield | Amount (2) | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||||||||
Income (loss) | 3.46 | % | $ | 2,318 | 3.68 | % | $ | 2,019 | 3.86 | % | $ | 1,732 | |||||||||||||||||||||||
Ending assets | 71,738 | 62,687 | 46,447 | ||||||||||||||||||||||||||||||||
Mortgages: | |||||||||||||||||||||||||||||||||||
Income (loss) | 4.13 | % | 517 | 4.47 | % | 541 | 4.26 | % | 494 | ||||||||||||||||||||||||||
Ending assets | 13,159 | 12,107 | 11,835 | ||||||||||||||||||||||||||||||||
Other Equity Investments (1): | |||||||||||||||||||||||||||||||||||
Income (loss) | 6.14 | % | 95 | 5.96 | % | 86 | 8.79 | % | 127 | ||||||||||||||||||||||||||
Ending assets | 1,621 | 1,507 | 1,406 | ||||||||||||||||||||||||||||||||
Policy Loans: | |||||||||||||||||||||||||||||||||||
Income (loss) | 5.28 | % | 204 | 5.59 | % | 210 | 5.71 | % | 215 | ||||||||||||||||||||||||||
Ending assets | 4,118 | 3,735 | 3,779 | ||||||||||||||||||||||||||||||||
Cash and Short-term Investments: | |||||||||||||||||||||||||||||||||||
Income (loss) | 0.03 | % | 1 | (0.15) | % | (4) | 0.49 | % | 21 | ||||||||||||||||||||||||||
Ending assets | 2,095 | 1,856 | 3,332 | ||||||||||||||||||||||||||||||||
Repurchase and funding agreements: | |||||||||||||||||||||||||||||||||||
Interest expense and other | (75) | (110) | (104) | ||||||||||||||||||||||||||||||||
Ending assets (liabilities) | (6,897) | (6,909) | (4,561) | ||||||||||||||||||||||||||||||||
Total Invested Assets: | |||||||||||||||||||||||||||||||||||
Income (loss) | 3.72 | % | 3,060 | 3.92 | % | 2,742 | 4.06 | % | 2,485 | ||||||||||||||||||||||||||
Ending Assets | 85,834 | 74,983 | 62,238 | ||||||||||||||||||||||||||||||||
Short Duration Fixed Maturities: | |||||||||||||||||||||||||||||||||||
Income (loss) | 3.39 | % | 184 | 3.15 | % | 312 | 2.49 | % | 333 | ||||||||||||||||||||||||||
Ending assets | 4,704 | 6,173 | 14,818 | ||||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Investment income (loss) | 3.70 | % | 3,244 | 3.83 | % | 3,054 | 3.78 | % | 2,818 | ||||||||||||||||||||||||||
Less: investment fees (3) | (0.12) | % | (107) | (0.13) | % | (103) | (0.12) | % | (89) | ||||||||||||||||||||||||||
Investment Income, Net | 3.57 | % | $ | 3,137 | 3.70 | % | $ | 2,951 | 3.67 | % | $ | 2,729 | |||||||||||||||||||||||
Ending Net Assets | $ | 90,538 | $ | 81,156 | $ | 77,056 |
Amortized Cost
|
Allowance for Credit Losses
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
Percentage of Total (%)
|
||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||
As of December 31, 2020 (3)
|
|||||||||||||||||||||||||||||||||||
Corporate Securities: | |||||||||||||||||||||||||||||||||||
Finance | $ | 14,411 | $ | — | $ | 1,112 | $ | 9 | $ | 15,514 | 19 | % | |||||||||||||||||||||||
Manufacturing | 13,040 | — | 1,520 | 18 | 14,542 | 18 | % | ||||||||||||||||||||||||||||
Utilities | 6,352 | — | 681 | 6 | 7,027 | 9 | % | ||||||||||||||||||||||||||||
Services | 7,830 | 13 | 680 | 27 | 8,470 | 11 | % | ||||||||||||||||||||||||||||
Energy | 4,084 | — | 364 | 23 | 4,425 | 6 | % | ||||||||||||||||||||||||||||
Retail and wholesale | 3,747 | — | 435 | 3 | 4,179 | 5 | % | ||||||||||||||||||||||||||||
Transportation | 2,424 | — | 301 | 4 | 2,721 | 3 | % | ||||||||||||||||||||||||||||
Other | 157 | — | 7 | 2 | 162 | — | % | ||||||||||||||||||||||||||||
Total corporate securities | 52,045 | 13 | 5,100 | 92 | 57,040 | 71 | % | ||||||||||||||||||||||||||||
U.S. government | 12,660 | — | 3,448 | 5 | 16,103 | 20 | % | ||||||||||||||||||||||||||||
Residential mortgage-backed (2) | 130 | — | 13 | — | 143 | — | % | ||||||||||||||||||||||||||||
Preferred stock | 621 | — | 48 | 3 | 666 | 1 | % | ||||||||||||||||||||||||||||
State & political | 536 | — | 100 | — | 636 | 1 | % | ||||||||||||||||||||||||||||
Foreign governments | 1,011 | — | 98 | 6 | 1,103 | 1 | % | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 1,148 | — | 55 | — | 1,203 | 2 | % | ||||||||||||||||||||||||||||
Asset-backed securities | 3,587 | — | 29 | 5 | 3,611 | 4 | % | ||||||||||||||||||||||||||||
Total | $ | 71,738 | $ | 13 | $ | 8,891 | $ | 111 | $ | 80,505 | 100 | % | |||||||||||||||||||||||
As of December 31, 2019 (3) | |||||||||||||||||||||||||||||||||||
Corporate Securities: | |||||||||||||||||||||||||||||||||||
Finance | $ | 12,015 | $ | — | $ | 469 | $ | 4 | $ | 12,480 | 19 | % | |||||||||||||||||||||||
Manufacturing | 12,643 | — | 706 | 9 | 13,340 | 20 | % | ||||||||||||||||||||||||||||
Utilities | 4,999 | — | 302 | 8 | 5,293 | 8 | % | ||||||||||||||||||||||||||||
Services | 6,730 | — | 386 | 17 | 7,099 | 11 | % | ||||||||||||||||||||||||||||
Energy | 3,772 | — | 189 | 14 | 3,947 | 6 | % | ||||||||||||||||||||||||||||
Retail and wholesale | 3,515 | — | 183 | 7 | 3,691 | 6 | % | ||||||||||||||||||||||||||||
Transportation | 1,793 | — | 115 | 3 | 1,905 | 3 | % | ||||||||||||||||||||||||||||
Other | 198 | — | 8 | — | 206 | — | % | ||||||||||||||||||||||||||||
Total corporate securities | 45,665 | — | 2,358 | 62 | 47,961 | 73 | % | ||||||||||||||||||||||||||||
U.S. government and agency | 14,395 | — | 1,289 | 305 | 15,379 | 23 | % | ||||||||||||||||||||||||||||
Residential mortgage-backed (2) | 178 | — | 13 | — | 191 | — | % | ||||||||||||||||||||||||||||
Preferred stock | 501 | — | 17 | 5 | 513 | 1 | % | ||||||||||||||||||||||||||||
State & political | 638 | — | 70 | 3 | 705 | 1 | % | ||||||||||||||||||||||||||||
Foreign governments | 462 | — | 35 | 5 | 492 | 1 | % | ||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Asset-backed securities | 848 | — | 4 | 3 | 849 | 1 | % | ||||||||||||||||||||||||||||
Total | $ | 62,687 | $ | — | $ | 3,786 | $ | 383 | $ | 66,090 | 100 | % |
NAIC Designation
|
Rating Agency Equivalent
|
Amortized
Cost
|
Allowance for Credit Losses
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 (1) | ||||||||||||||||||||||||||||||||||||||
1................................ | Aaa, Aa, A | $ | 44,146 | $ | — | $ | 6,227 | $ | 32 | $ | 50,341 | |||||||||||||||||||||||||||
2................................ | Baa | 25,285 | — | 2,621 | 26 | 27,880 | ||||||||||||||||||||||||||||||||
Investment grade | 69,431 | — | 8,848 | 58 | 78,221 | |||||||||||||||||||||||||||||||||
3................................ | Ba | 1,436 | — | 33 | 19 | 1,450 | ||||||||||||||||||||||||||||||||
4................................ | B | 769 | 13 | 7 | 28 | 735 | ||||||||||||||||||||||||||||||||
5................................ | Caa | 92 | — | 3 | 5 | 90 | ||||||||||||||||||||||||||||||||
6................................ | Ca, C | 10 | — | — | 1 | 9 | ||||||||||||||||||||||||||||||||
Below investment grade | 2,307 | 13 | 43 | 53 | 2,284 | |||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | 71,738 | $ | 13 | $ | 8,891 | $ | 111 | $ | 80,505 | ||||||||||||||||||||||||||||
As of December 31, 2019 (1) | ||||||||||||||||||||||||||||||||||||||
1................................ | Aaa, Aa, A | $ | 42,770 | $ | — | $ | 2,666 | $ | 342 | $ | 45,094 | |||||||||||||||||||||||||||
2................................ | Baa | 18,605 | — | 1,105 | 18 | 19,692 | ||||||||||||||||||||||||||||||||
Investment grade | 61,375 | — | 3,771 | 360 | 64,786 | |||||||||||||||||||||||||||||||||
3................................ | Ba | 663 | — | 9 | 7 | 665 | ||||||||||||||||||||||||||||||||
4................................ | B | 567 | — | 4 | 10 | 561 | ||||||||||||||||||||||||||||||||
5................................ | Caa | 80 | — | 2 | 6 | 76 | ||||||||||||||||||||||||||||||||
6................................ | Ca, C | 2 | — | — | — | 2 | ||||||||||||||||||||||||||||||||
Below investment grade | 1,312 | — | 15 | 23 | 1,304 | |||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | 62,687 | $ | — | $ | 3,786 | $ | 383 | $ | 66,090 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Amortized
Cost
|
% of Total
|
Amortized
Cost
|
% of Total
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
By Region: | |||||||||||||||||||||||
U.S. Regions: | |||||||||||||||||||||||
Pacific | $ | 3,912 | 30 | % | $ | 3,468 | 29 | % | |||||||||||||||
Middle Atlantic | 3,662 | 28 | 3,220 | 27 | |||||||||||||||||||
South Atlantic | 1,290 | 10 | 1,269 | 10 | |||||||||||||||||||
East North Central | 1,122 | 8 | 906 | 8 | |||||||||||||||||||
Mountain | 1,026 | 8 | 1,012 | 8 | |||||||||||||||||||
West North Central | 875 | 7 | 896 | 7 | |||||||||||||||||||
West South Central | 690 | 5 | 631 | 5 | |||||||||||||||||||
New England | 511 | 3 | 566 | 5 | |||||||||||||||||||
East South Central | 152 | 1 | 139 | 1 | |||||||||||||||||||
Total Mortgage Loans | $ | 13,240 | 100 | % | $ | 12,107 | 100 | % | |||||||||||||||
By Property Type: | |||||||||||||||||||||||
Office | $ | 4,131 | 31 | % | $ | 3,794 | 31 | % | |||||||||||||||
Multifamily | 4,027 | 30 | 3,768 | 31 | |||||||||||||||||||
Agricultural loans | 2,732 | 21 | 2,717 | 23 | |||||||||||||||||||
Retail | 742 | 6 | 665 | 5 | |||||||||||||||||||
Industrial | 787 | 6 | 344 | 3 | |||||||||||||||||||
Hospitality | 477 | 4 | 477 | 4 | |||||||||||||||||||
Other | 344 | 2 | 342 | 3 | |||||||||||||||||||
Total Mortgage Loans | $ | 13,240 | 100 | % | $ | 12,107 | 100 | % |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Highly Liquid Assets, beginning of period | $ | 1,589 | 743 | ||||||||
Dividends from subsidiaries | 2,877 | 1,341 | |||||||||
Repayment of surplus note including interest | — | 576 | |||||||||
Capital contributions to subsidiaries | (350) | (86) | |||||||||
Total Business Capital Activity | 2,527 | 1,831 | |||||||||
Purchase of treasury shares | (430) | (1,200) | |||||||||
Retirement of treasury shares | — | (150) | |||||||||
Shareholder dividends paid | (297) | (285) | |||||||||
Total Share Repurchases, Dividends and Acquisition Activity | (727) | (1,635) | |||||||||
Issuance of preferred stock | 494 | 775 | |||||||||
Preferred stock dividend | (53) | — | |||||||||
Total Preferred Stock Activity | 441 | 775 | |||||||||
Repayment of long-term debt | — | (300) | |||||||||
Total External Debt Activity | — | (300) | |||||||||
Repayments of loans from affiliates | (300) | (300) | |||||||||
Proceeds from loans from affiliates | — | 900 | |||||||||
Issuance of loans to affiliates | — | (560) | |||||||||
Net decrease (increase) in loans to affiliates | (115) | — | |||||||||
Total Affiliated Debt Activity | (415) | 40 | |||||||||
Interest paid on external debt and P-Caps | (220) | (215) | |||||||||
Others, net | (107) | 350 | |||||||||
Total Other Activity | (327) | 135 | |||||||||
Net increase (decrease) in highly liquid assets | 1,499 | 846 | |||||||||
Highly Liquid Assets, end of period | $ | 3,088 | $ | 1,589 |
Owner | Percentage Ownership | ||||
EQH and its subsidiaries | 63.3 | % | |||
AB Holding | 36.0 | % | |||
Unaffiliated holders | 0.7 | % | |||
Total | 100.0 | % |
AM Best | S&P | Moody’s | |||||||||||||||
Last review date | Jan '21 | Oct '20 | Oct '20 | ||||||||||||||
Financial Strength Ratings: | |||||||||||||||||
Equitable Financial Life Insurance Company | A | A+ | A2 | ||||||||||||||
Equitable Financial Life Insurance Company of America | A | A+ | A2 | ||||||||||||||
Credit Ratings: | |||||||||||||||||
Equitable Holdings, Inc. | BBB+ | Baa2 | |||||||||||||||
Last review date | Sept '20 | Oct '20 | |||||||||||||||
AllianceBernstein Holding L.P. | A | A2 |
Estimated Payments Due by Year | |||||||||||||||||||||||||||||
Total | 2021 | 2022-2023 | 2024-2025 | 2026 and thereafter | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Contractual obligations: | |||||||||||||||||||||||||||||
Insurance liabilities (1) | $ | 109,202 | $ | 1,650 | $ | 5,109 | $ | 7,273 | $ | 95,170 | |||||||||||||||||||
FHLB Funding Agreements | 6,890 | 5,634 | 475 | 247 | 534 | ||||||||||||||||||||||||
Interest on FHLB Funding Agreements | 123 | 40 | 42 | 34 | 7 | ||||||||||||||||||||||||
FABN Funding Agreements | 1,950 | — | 500 | 650 | 800 | ||||||||||||||||||||||||
Interest on FABN Funding Agreements | 155 | 24 | 48 | 43 | 40 | ||||||||||||||||||||||||
Operating leases, net of sublease commitments | 1,437 | 159 | 285 | 178 | 815 | ||||||||||||||||||||||||
Long-term debt | 4,150 | — | 800 | — | 3,350 | ||||||||||||||||||||||||
Interest on long-term debt | 2,814 | 196 | 376 | 330 | 1,912 | ||||||||||||||||||||||||
Interest on P-Caps | 418 | 24 | 47 | 47 | 300 | ||||||||||||||||||||||||
Employee benefits | 3,814 | 231 | 478 | 415 | 2,690 | ||||||||||||||||||||||||
Funding Commitments | 1,648 | 330 | 576 | 742 | — | ||||||||||||||||||||||||
Total Contractual Obligations | $ | 132,601 | $ | 8,288 | $ | 8,736 | $ | 9,959 | $ | 105,618 |
Increase/(Decrease) in
GMDB/GMIB Reserves
|
|||||
(in millions)
|
|||||
1% decrease in future rate of return | $ | 1,578 | |||
1% increase in future rate of return | $ | (1,787) |
Increase/(Decrease)
in DAC
|
|||||
(in millions)
|
|||||
Decrease in future mortality by 1% | $ | 33 | |||
Increase in future mortality by 1% | $ | (33) |
Increase/(Decrease)
in DAC
|
|||||
(in millions)
|
|||||
Decrease in future rate of return by 1% | $ | (136) | |||
Increase in future rate of return by 1% | $ | 160 |
Future policyholders’ benefits and other policyholders’ liabilities | |||||
(in billions)
|
|||||
100% increase in Holdings’ credit spread | $ | 9.4 | |||
As reported | $ | 11.1 | |||
50% decrease in Holdings’ credit spread | $ | 12.1 |
Interest Rate Risk Exposure | |||||||||||||||||||||||||||||||||||
|
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
|
Fair Value
|
Impact of +1% Change
|
Impact of -1% Change
|
Fair Value
|
Impact of +1% Change
|
Impact of -1% Change
|
|||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||
Fixed Income Investments: | |||||||||||||||||||||||||||||||||||
AFS securities: | |||||||||||||||||||||||||||||||||||
Fixed rate | $ | 75,375 | $ | (7,185) | $ | 8,636 | $ | 63,908 | $ | (6,005) | $ | 7,267 | |||||||||||||||||||||||
Floating rate | $ | 5,130 | $ | (55) | $ | 83 | $ | 2,182 | $ | (45) | $ | 49 | |||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||||||||
Fixed rate | $ | 4,852 | $ | (99) | $ | 102 | $ | 5,765 | $ | (149) | $ | 153 | |||||||||||||||||||||||
Floating rate | $ | 117 | $ | — | $ | — | $ | 408 | $ | (1) | $ | 1 | |||||||||||||||||||||||
Mortgage loans | $ | 13,491 | $ | (521) | $ | 376 | $ | 12,334 | $ | (470) | $ | 408 |
Equity Price Risk Exposure | |||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Fair Value
|
Impact of+10% Equity Price Change
|
Impact of -10% Equity Price Change
|
Fair Value
|
Impact of+10% Equity Price Change
|
Impact of -10% Equity Price Change
|
||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||
Equity Investments | $ | 15 | $ | 1 | $ | (1) | $ | 13 | $ | 1 | $ | (1) | |||||||||||||||||||||||
|
|
|
Interest Rate Sensitivity
|
||||||||||||||||||||||||||
|
Notional
Amount |
Weighted Average Term (Years)
|
Impact of -1% Change
|
Fair
Value
|
Impact of +1% Change
|
||||||||||||||||||||||||
(in millions, except for Weighted Average Term)
|
|||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Swaps | $ | 23,773 | 3 | $ | 4,622 | $ | (102) | $ | (3,857) | ||||||||||||||||||||
Futures | 18,564 | — | 1,477 | — | (1,264) | ||||||||||||||||||||||||
Swaptions | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 42,337 | $ | 6,099 | $ | (102) | $ | (5,121) | |||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Swaps | $ | 23,700 | 5 | $ | 3,406 | $ | (57) | $ | (2,838) | ||||||||||||||||||||
Futures | 20,901 | — | 1,122 | — | (900) | ||||||||||||||||||||||||
Swaptions | 3,201 | — | 560 | 16 | (3) | ||||||||||||||||||||||||
Total | $ | 47,802 | $ | 5,088 | $ | (41) | $ | (3,741) |
|
|
Equity Sensitivity
|
|||||||||||||||||||||
Notional
Amount |
Weighted Average Term (Years)
|
Fair Value
|
Balance after -10% Equity Price Shift
|
||||||||||||||||||||
(in millions, except for Weighted Average Term) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Futures | $ | 4,745 | — | $ | — | $ | 138 | ||||||||||||||||
Swaps | 22,404 | — | 6 | 2,119 | |||||||||||||||||||
Options | 35,846 | 2 | 4,672 | 3,488 | |||||||||||||||||||
Total | $ | 62,995 | $ | 4,678 | $ | 5,745 | |||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Futures | $ | 4,086 | — | $ | — | $ | 231 | ||||||||||||||||
Swaps | 17,064 | — | (270) | 1,464 | |||||||||||||||||||
Options | 47,861 | 2 | 3,346 | 2,424 | |||||||||||||||||||
Total | $ | 69,011 | $ | 3,076 | $ | 4,119 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Fair Value
|
Balance After -1% Change
|
Balance After +1% Change |
Fair Value
|
Balance After -1% Change
|
Balance After +1% Change
|
|||||||||||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||||||||||||
Fixed Income Investments: | ||||||||||||||||||||||||||||||||||||||
Trading | $ | 36 | $ | 38 | $ | 33 | $ | 36 | $ | 39 | $ | 34 |
|
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||
|
Fair Value
|
Balance After +10% Equity Price Change
|
Balance After -10% Equity Price Change
|
Fair Value
|
Balance After +10% Equity Price Change
|
Balance After -10% Equity Price Change
|
||||||||||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||||||||||||
Equity Investments: | ||||||||||||||||||||||||||||||||||||||
Trading | $ | 138 | $ | 151 | $ | 124 | $ | 151 | $ | 166 | $ | 137 | ||||||||||||||||||||||||||
Other investments | $ | 80 | $ | 88 | $ | 72 | $ | 80 | $ | 88 | $ | 72 |
Audited Consolidated Financial Statements | |||||
Report of Independent Registered Public Accounting Firm
|
|||||
Audited Consolidated Financial Statement Schedules | |||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
|
(in millions, except share data)
|
||||||||||
ASSETS | |||||||||||
Investments: | |||||||||||
Fixed maturities available-for-sale, at fair value (amortized cost of $72,867 and $62,937) (allowance for credit losses of $13 at December 31, 2020)
|
$ | 81,638 | $ | 66,343 | |||||||
Fixed maturities, at fair value using the fair value option (1)
|
389 | — | |||||||||
Mortgage loans on real estate (net of allowance for credit losses of $81 at December 31, 2020)
|
13,159 | 12,107 | |||||||||
Policy loans | 4,118 | 3,735 | |||||||||
Other equity investments (1) | 1,502 | 1,344 | |||||||||
Trading securities, at fair value | 5,553 | 7,031 | |||||||||
Other invested assets (1) | 2,728 | 2,780 | |||||||||
Total investments | 109,087 | 93,340 | |||||||||
Cash and cash equivalents (1) | 6,179 | 4,405 | |||||||||
Cash and securities segregated, at fair value | 1,753 | 1,095 | |||||||||
Broker-dealer related receivables | 2,223 | 1,987 | |||||||||
Deferred policy acquisition costs | 4,243 | 5,837 | |||||||||
Goodwill and other intangible assets, net | 4,737 | 4,751 | |||||||||
Amounts due from reinsurers (allowance for credit losses of $5 at December 31, 2020)
|
4,566 | 4,592 | |||||||||
GMIB reinsurance contract asset, at fair value | 2,488 | 2,139 | |||||||||
Other assets (1) | 3,701 | 3,800 | |||||||||
Assets held-for-sale | 470 | 962 | |||||||||
Separate Accounts assets | 135,950 | 126,910 | |||||||||
Total Assets | $ | 275,397 | $ | 249,818 | |||||||
LIABILITIES | |||||||||||
Policyholders’ account balances | $ | 66,820 | $ | 58,879 | |||||||
Future policy benefits and other policyholders' liabilities | 39,881 | 34,635 | |||||||||
Broker-dealer related payables | 1,443 | 722 | |||||||||
Customer related payables | 3,417 | 2,523 | |||||||||
Amounts due to reinsurers | 1,381 | 1,404 | |||||||||
Short-term and long-term debt | 4,115 | 4,111 | |||||||||
Current and deferred income taxes | 749 | 528 | |||||||||
Notes issued by consolidated variable interest entities, at fair value using the fair value option (1) | 313 | — | |||||||||
Other liabilities (1) | 3,686 | 3,970 | |||||||||
Liabilities held-for-sale | 322 | 724 | |||||||||
Separate Accounts liabilities | 135,950 | 126,910 | |||||||||
Total Liabilities | $ | 258,077 | $ | 234,406 | |||||||
Redeemable noncontrolling interest (1) (2) | $ | 143 | $ | 365 | |||||||
Commitments and contingent liabilities (Note 17)
|
|||||||||||
EQUITY | |||||||||||
Equity attributable to Holdings: | |||||||||||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference
|
$ | 1,269 | $ | 775 | |||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 552,896,328 and 552,896,328 shares issued, respectively; 440,776,011 and 463,711,392 shares outstanding, respectively
|
5 | 5 | |||||||||
Additional paid-in capital | 1,985 | 1,920 | |||||||||
Treasury stock, at cost, 112,120,317 and 89,184,936 shares, respectively
|
(2,245) | (1,832) | |||||||||
Retained earnings | 10,699 | 11,744 | |||||||||
Accumulated other comprehensive income (loss) | 3,863 | 844 | |||||||||
Total equity attributable to Holdings | 15,576 | 13,456 | |||||||||
Noncontrolling interest | 1,601 | 1,591 | |||||||||
Total Equity | 17,177 | 15,047 | |||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 275,397 | $ | 249,818 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions, except per share data)
|
|||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Policy charges and fee income | $ | 3,735 | $ | 3,778 | $ | 3,834 | |||||||||||||||||||||||
Premiums | 997 | 1,147 | 1,094 | ||||||||||||||||||||||||||
Net derivative gains (losses) | (1,722) | (4,012) | (250) | ||||||||||||||||||||||||||
Net investment income (loss) | 3,477 | 3,699 | 2,693 | ||||||||||||||||||||||||||
Investment gains (losses), net: | |||||||||||||||||||||||||||||
Credit losses on Available for Sale debt securities and loans | (58) | — | (42) | ||||||||||||||||||||||||||
Other investment gains (losses), net | 802 | 73 | (44) | ||||||||||||||||||||||||||
Total investment gains (losses), net | 744 | 73 | (86) | ||||||||||||||||||||||||||
Investment management and service fees | 4,608 | 4,380 | 4,268 | ||||||||||||||||||||||||||
Other income | 576 | 554 | 516 | ||||||||||||||||||||||||||
Total revenues | 12,415 | 9,619 | 12,069 | ||||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||
Policyholders’ benefits | 5,326 | 4,385 | 2,856 | ||||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 1,222 | 1,263 | 1,067 | ||||||||||||||||||||||||||
Compensation and benefits | 2,096 | 2,081 | 2,079 | ||||||||||||||||||||||||||
Commissions and distribution-related payments | 1,351 | 1,242 | 1,165 | ||||||||||||||||||||||||||
Interest expense | 200 | 221 | 231 | ||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 1,613 | 597 | 371 | ||||||||||||||||||||||||||
Other operating costs and expenses | 1,700 | 1,890 | 1,810 | ||||||||||||||||||||||||||
Total benefits and other deductions | 13,508 | 11,679 | 9,579 | ||||||||||||||||||||||||||
Income (loss) from continuing operations, before income taxes | (1,093) | (2,060) | 2,490 | ||||||||||||||||||||||||||
Income tax (expense) benefit | 744 | 593 | (301) | ||||||||||||||||||||||||||
Net income (loss) | (349) | (1,467) | 2,189 | ||||||||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 299 | 297 | 334 | ||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | (648) | $ | (1,764) | $ | 1,855 | |||||||||||||||||||||||
Less: Preferred stock dividends | 53 | — | — | ||||||||||||||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | (701) | $ | (1,764) | $ | 1,855 | |||||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||
Net income (loss) applicable to Holdings’ common shareholders per common share: | |||||||||||||||||||||||||||||
Basic | $ | (1.56) | $ | (3.57) | $ | 3.33 | |||||||||||||||||||||||
Diluted | $ | (1.56) | $ | (3.57) | $ | 3.33 | |||||||||||||||||||||||
Weighted average common shares outstanding (in millions): | |||||||||||||||||||||||||||||
Basic | 450.4 | 493.6 | 556.4 | ||||||||||||||||||||||||||
Diluted | 450.4 | 493.6 | 556.5 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||
Net income (loss) | $ | (349) | $ | (1,467) | $ | 2,189 | |||||||||||||||||||||||
Other comprehensive income (loss) net of income taxes: | |||||||||||||||||||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | 2,956 | 2,258 | (1,326) | ||||||||||||||||||||||||||
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 48 | (15) | 189 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | 22 | 5 | (32) | ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of income taxes | 3,026 | 2,248 | (1,169) | ||||||||||||||||||||||||||
Comprehensive income (loss) | 2,677 | 781 | 1,020 | ||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 306 | 293 | 349 | ||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Holdings | $ | 2,371 | $ | 488 | $ | 671 |
Equity Attributable to Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Holdings Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2020 | $ | 775 | $ | 5 | $ | 1,920 | $ | (1,832) | $ | 11,744 | $ | 844 | $ | 13,456 | $ | 1,591 | $ | 15,047 | |||||||||||||||||||||||||||||||||||
Cumulative effect of adoption of ASU 2016-03, Current Expected Credit Loss | — | — | — | — | (30) | — | (30) | — | (30) | ||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 27 | 17 | — | — | 44 | 69 | 113 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (430) | — | — | (430) | — | (430) | ||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | — | — | — | (17) | — | (17) | — | (17) | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | (48) | — | — | — | (48) | (53) | (101) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (305) | (305) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock (cash dividends declared per common share of $0.66) | — | — | — | — | (297) | — | (297) | — | (297) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (53) | — | (53) | — | (53) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 494 | — | — | — | — | — | 494 | — | 494 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (648) | — | (648) | 302 | (346) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 3,019 | 3,019 | 7 | 3,026 | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | 86 | — | — | — | 86 | (10) | 76 | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | $ | 1,269 | $ | 5 | $ | 1,985 | $ | (2,245) | $ | 10,699 | $ | 3,863 | $ | 15,576 | $ | 1,601 | $ | 17,177 |
January 1, 2019 | $ | — | $ | 5 | $ | 1,908 | $ | (640) | $ | 13,937 | $ | (1,408) | $ | 13,802 | $ | 1,566 | $ | 15,368 | |||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 152 | 9 | — | — | 161 | 77 | 238 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (1,343) | (2) | — | (1,345) | — | (1,345) | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | (112) | — | — | — | (112) | (61) | (173) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (256) | (256) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock (cash dividends declared per common share of $0.58) | — | — | — | — | (285) | — | (285) | — | (285) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 775 | — | — | — | — | — | 775 | — | 775 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (1,764) | — | (1,764) | 263 | (1,501) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 2,252 | 2,252 | (4) | 2,248 | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (28) | — | — | — | (28) | 6 | (22) | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | $ | 775 | $ | 5 | $ | 1,920 | $ | (1,832) | $ | 11,744 | $ | 844 | $ | 13,456 | $ | 1,591 | $ | 15,047 |
January 1, 2018 | $ | — | $ | 5 | $ | 1,299 | $ | — | $ | 12,138 | $ | (128) | $ | 13,314 | $ | 3,097 | $ | 16,411 | |||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (648) | — | — | (648) | — | (648) | ||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | — | — | — | 8 | (8) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | — | — | — | — | — | (95) | (95) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (346) | (346) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock (cash dividends declared per common share of $0.26) | — | — | — | — | (157) | — | (157) | — | (157) | ||||||||||||||||||||||||||||||||||||||||||||
Capital contribution from parent | — | — | 695 | — | — | — | 695 | — | 695 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of AB Units by Holdings | — | — | — | — | — | — | — | (1,525) | (1,525) | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of AllianceBernstein Units from noncontrolling interest | — | — | 17 | — | — | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of adoption of revenue recognition standard ASC 606 | — | — | — | — | 13 | — | 13 | 19 | 32 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects | — | — | — | — | 89 | (89) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of adoption of ASU 2016-01, Financial Instruments | — | — | — | — | 7 | (7) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 1,855 | — | 1,855 | 316 | 2,171 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (1,184) | (1,184) | 15 | (1,169) | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (103) | — | — | — | (103) | 85 | (18) | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | $ | — | $ | 5 | $ | 1,908 | $ | (640) | $ | 13,937 | $ | (1,408) | $ | 13,802 | $ | 1,566 | $ | 15,368 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | (349) | $ | (1,467) | $ | 2,189 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Interest credited to policyholders’ account balances | 1,222 | 1,263 | 1,067 | ||||||||||||||
Policy charges and fee income | (3,735) | (3,778) | (3,834) | ||||||||||||||
Net derivative (gains) losses | 1,722 | 4,012 | 250 | ||||||||||||||
Credit losses on available-for-sale debt securities and loans | 58 | — | 42 | ||||||||||||||
Investment (gains) losses, net | (872) | (206) | 44 | ||||||||||||||
Loss on businesses held-for-sale | 69 | 133 | — | ||||||||||||||
Realized and unrealized (gains) losses on trading securities | (170) | (502) | 237 | ||||||||||||||
Non-cash long term incentive compensation expense | 210 | 278 | 228 | ||||||||||||||
Non-cash pension plan restructuring | — | — | 109 | ||||||||||||||
Amortization and depreciation | 1,757 | 675 | 296 | ||||||||||||||
Equity (income) loss from limited partnerships | (83) | (92) | (119) | ||||||||||||||
Changes in: | |||||||||||||||||
Net broker-dealer and customer related receivables/payables | 667 | (403) | 838 | ||||||||||||||
Reinsurance recoverable
|
(401) | (146) | (191) | ||||||||||||||
Segregated cash and securities, net | (659) | 75 | (345) | ||||||||||||||
Capitalization of deferred policy acquisition costs | (670) | (754) | (697) | ||||||||||||||
Future policy benefits | 1,953 | 962 | (458) | ||||||||||||||
Current and deferred income taxes | (571) | (102) | 627 | ||||||||||||||
Other, net | (209) | (164) | (222) | ||||||||||||||
Net cash provided by (used in) operating activities | $ | (61) | $ | (216) | $ | 61 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||
Proceeds from the sale/maturity/prepayment of: | |||||||||||||||||
Fixed maturities, available-for-sale | $ | 18,986 | $ | 13,327 | $ | 10,631 | |||||||||||
Fixed maturities, at fair value using the fair value option | 7 | — | — | ||||||||||||||
Mortgage loans on real estate | 630 | 952 | 768 | ||||||||||||||
Trading account securities | 2,162 | 10,717 | 9,340 | ||||||||||||||
Real estate joint ventures | 55 | 5 | 139 | ||||||||||||||
Short term investments | 1,497 | 2,643 | 6,267 | ||||||||||||||
Other | 1,005 | 306 | 330 | ||||||||||||||
Payment for the purchase/origination of: | |||||||||||||||||
Fixed maturities, available-for-sale | (28,197) | (29,610) | (12,794) | ||||||||||||||
Fixed maturities, at fair value using the fair value option | (311) | — | — | ||||||||||||||
Mortgage loans on real estate | (1,747) | (1,240) | (1,642) | ||||||||||||||
Trading account securities | (708) | (1,123) | (11,401) | ||||||||||||||
Short term investments | (1,098) | (2,776) | (5,058) | ||||||||||||||
Other | (1,167) | (430) | (233) | ||||||||||||||
Cash from the sale of business, net of cash sold | 164 | — | — | ||||||||||||||
Cash settlements related to derivative instruments | 1,166 | (954) | 583 | ||||||||||||||
Repayments of loans to affiliates | — | — | 1,230 | ||||||||||||||
Investment in capitalized software, leasehold improvements and EDP equipment | (107) | (93) | (123) | ||||||||||||||
Other, net | (160) | (220) | (86) | ||||||||||||||
Net cash provided by (used in) investing activities | $ | (7,823) | $ | (8,496) | $ | (2,049) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||
Policyholders’ account balances: | |||||||||||||||||
Deposits | $ | 11,446 | $ | 12,843 | 9,994 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Withdrawals | (4,332) | (4,619) | (4,600) | ||||||||||||||
Transfers (to) from Separate Accounts | 2,452 | 1,769 | 1,724 | ||||||||||||||
Change in short-term financings | — | (546) | (1,310) | ||||||||||||||
Change in collateralized pledged assets | (139) | (71) | 31 | ||||||||||||||
Change in collateralized pledged liabilities | 848 | 1,361 | (576) | ||||||||||||||
(Decrease) increase in overdrafts payable | (13) | (60) | 3 | ||||||||||||||
Repayment of loans from affiliates | — | — | (3,000) | ||||||||||||||
Issuance of long-term debt | — | — | 4,057 | ||||||||||||||
Repayment of long-term debt | — | (300) | — | ||||||||||||||
Proceeds from notes issued by consolidated VIEs | 313 | — | — | ||||||||||||||
Dividends paid on common stock | (297) | (285) | (157) | ||||||||||||||
Dividends paid on preferred stock | (53) | — | — | ||||||||||||||
Issuance of preferred stock | 494 | 775 | — | ||||||||||||||
Purchase of AllianceBernstein Units | — | — | (1,340) | ||||||||||||||
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (149) | (172) | (267) | ||||||||||||||
Purchase of treasury shares | (430) | (1,350) | (648) | ||||||||||||||
Purchases (redemptions) of noncontrolling interests of consolidated
company-sponsored investment funds |
(210) | 169 | (472) | ||||||||||||||
Distribution to noncontrolling interest of consolidated subsidiaries | (304) | (256) | (346) | ||||||||||||||
Increase (decrease) in securities sold under agreement to repurchase | — | (573) | (1,314) | ||||||||||||||
Other, net | 48 | 20 | (124) | ||||||||||||||
Net cash provided by (used in) financing activities | $ | 9,674 | $ | 8,705 | $ | 1,655 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | $ | 23 | $ | 8 | $ | (12) | |||||||||||
Change in cash and cash equivalents | 1,813 | 1 | (345) | ||||||||||||||
Cash and cash equivalents, beginning of year | 4,405 | 4,469 | 4,814 | ||||||||||||||
Change in cash of businesses held-for-sale | (39) | (65) | — | ||||||||||||||
Cash and cash equivalents, end of year | $ | 6,179 | $ | 4,405 | $ | 4,469 | |||||||||||
Supplemental cash flow information: | |||||||||||||||||
Interest paid | 215 | 273 | 178 | ||||||||||||||
Income taxes (refunded) paid | $ | (173) | $ | (506) | $ | 57 | |||||||||||
Non-cash transactions: | |||||||||||||||||
Capital contribution from parent company | $ | — | $ | — | $ | 622 | |||||||||||
(Settlement) issuance of long-term debt | $ | — | $ | — | $ | (202) | |||||||||||
Transfer of assets to reinsurer | $ | — | $ | — | $ | (604) | |||||||||||
Contribution of 0.5% minority interest in AXA Financial, Inc. | $ | — | $ | — | $ | 65 | |||||||||||
Repayment of loans from affiliates | $ | — | $ | — | $ | (622) | |||||||||||
Description
|
Effect on the Financial Statement or Other Significant Matters
|
||||
ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief, ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments—Credit Losses
|
|||||
ASU 2016-13 contains new guidance which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for AFS debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination.
ASU 2019-05 provides entities that have instruments within the scope of Subtopic 326-20 an option to irrevocably elect the fair value option on an instrument-by-instrument basis upon adoption of Topic 326.
ASU 2018-19, ASU 2019-04 and ASU 2019-11 clarified the codification guidance and did not materially change the standard.
|
On January 1, 2020, the Company adopted the new standard and completed implementation of its updated CECL models, processes and controls related to the identified financial assets that fall within the scope of the new standard. Upon adoption, the Company recorded a cumulative effect adjustment to reduce the opening retained earnings balance by approximately $40 million, on a pre-tax and pre-DAC basis. The adjustment is primarily attributable to an increase in the allowance for credit losses associated with the Company’s commercial and agricultural mortgage loan portfolios and reinsurance.
Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP.
|
||||
ASU 2018-13: Fair Value Measurement (Topic 820)
|
|||||
This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU impact the disclosure requirements in Topic 820, including the removal, modification and addition to existing disclosure requirements.
|
The Company elected to early adopt during 2019 the removal of disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company adopted the additional disclosures related to Level 3 fair value information on January 1, 2020.
|
||||
ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities
|
|||||
This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.
|
The Company adopted this new standard effective for January 1, 2020. Adoption of this standard did not materially impact the Company’s financial position or results of operations.
|
Description
|
Effective Date and Method of Adoption
|
Effect on the Financial Statement or Other Significant Matters
|
||||||
ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application
|
||||||||
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including:
|
In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed.
|
The Company is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls.
|
|
Amortized Cost | Allowance for Credit Losses (4) | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||||||
December 31, 2020 (5) | |||||||||||||||||||||||||||||
Fixed Maturities:
|
|||||||||||||||||||||||||||||
Corporate (1) | $ | 53,160 | $ | 13 | $ | 5,104 | $ | 92 | $ | 58,159 | |||||||||||||||||||
U.S. Treasury, government and agency
|
12,675 | — | 3,448 | 5 | 16,118 | ||||||||||||||||||||||||
States and political subdivisions
|
535 | — | 100 | — | 635 |
|
Amortized Cost | Allowance for Credit Losses (4) | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||||||
Foreign governments
|
1,011 | — | 98 | 6 | 1,103 | ||||||||||||||||||||||||
Residential mortgage-backed (2) | 130 | — | 13 | — | 143 | ||||||||||||||||||||||||
Asset-backed (3) | 3,587 | — | 29 | 5 | 3,611 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,148 | — | 55 | — | 1,203 | ||||||||||||||||||||||||
Redeemable preferred stock | 621 | — | 48 | 3 | 666 | ||||||||||||||||||||||||
Total at December 31, 2020 | $ | 72,867 | $ | 13 | $ | 8,895 | $ | 111 | $ | 81,638 | |||||||||||||||||||
December 31, 2019 (5) | |||||||||||||||||||||||||||||
Fixed Maturities:
|
|||||||||||||||||||||||||||||
Corporate (1)
|
$ | 45,900 | $ | — | $ | 2,361 | $ | 62 | $ | 48,199 | |||||||||||||||||||
U.S. Treasury, government and agency
|
14,410 | — | 1,289 | 305 | 15,394 | ||||||||||||||||||||||||
States and political subdivisions
|
638 | — | 70 | 3 | 705 | ||||||||||||||||||||||||
Foreign governments
|
462 | — | 35 | 5 | 492 | ||||||||||||||||||||||||
Residential mortgage-backed (2) | 178 | — | 13 | — | 191 | ||||||||||||||||||||||||
Asset-backed (3) | 848 | — | 4 | 3 | 849 | ||||||||||||||||||||||||
Redeemable preferred stock | 501 | — | 17 | 5 | 513 | ||||||||||||||||||||||||
Total at December 31, 2019 | $ | 62,937 | $ | — | $ | 3,789 | $ | 383 | $ | 66,343 |
Amortized Cost (Less Allowance for Credit Losses)
|
Fair Value
|
||||||||||
|
(in millions)
|
||||||||||
December 31, 2020 | |||||||||||
Contractual maturities: | |||||||||||
Due in one year or less | $ | 3,568 | $ | 3,590 | |||||||
Due in years two through five | 16,926 | 17,986 | |||||||||
Due in years six through ten | 19,628 | 21,677 | |||||||||
Due after ten years | 27,246 | 32,762 | |||||||||
Subtotal | 67,368 | 76,015 | |||||||||
Residential mortgage-backed
|
130 | 143 | |||||||||
Asset-backed
|
3,587 | 3,611 | |||||||||
Commercial mortgage-backed | 1,148 | 1,203 | |||||||||
Redeemable preferred stock
|
621 | 666 | |||||||||
Total at December 31, 2020 | $ | 72,854 | $ | 81,638 |
|
Year Ended December 31, | ||||||||||||||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||
Proceeds from sales | $ | 12,903 | $ | 8,972 | $ | 8,523 | |||||||||||||||||||||||
Gross gains on sales | $ | 862 | $ | 234 | $ | 180 | |||||||||||||||||||||||
Gross losses on sales | $ | (41) | $ | (32) | $ | (215) | |||||||||||||||||||||||
Credit losses (1) | $ | (13) | $ | — | $ | (42) |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Balance, beginning of period | $ | 21 | $ | 58 | |||||||||||||||||||
Previously recognized impairments on securities that matured, paid, prepaid or sold | (2) | (37) | |||||||||||||||||||||
Recognized impairments on securities impaired to fair value this period (1) | — | — | |||||||||||||||||||||
Credit losses recognized this period on securities for which credit losses were not previously recognized | 6 | — | |||||||||||||||||||||
Additional credit losses this period on securities previously impaired | 7 | — | |||||||||||||||||||||
Increases due to passage of time on previously recorded credit losses | — | — | |||||||||||||||||||||
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) | — | — | |||||||||||||||||||||
Balance at December 31, | $ | 32 | $ | 21 |
Net Unrealized Gains (Losses) on Investments
|
DAC | Policyholders’ Liabilities | Deferred Income Tax Asset (Liability) |
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
|
|||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Balance, January 1, 2020 | $ | 3,453 | $ | (894) | $ | (189) | $ | (497) | $ | 1,873 | |||||||||||||||||||
Net investment gains (losses) arising during the period | 6,192 | — | — | — | 6,192 | ||||||||||||||||||||||||
Reclassification adjustment: | |||||||||||||||||||||||||||||
Included in net income (loss) | (828) | — | — | — | (828) | ||||||||||||||||||||||||
Excluded from net income (loss) | — | — | — | — | — | ||||||||||||||||||||||||
Impact of net unrealized investment gains (losses) | — | (655) | (877) | (806) | (2,338) | ||||||||||||||||||||||||
Net unrealized investment gains (losses) excluding credit losses | 8,817 | (1,549) | (1,066) | (1,303) | 4,899 |
Net Unrealized Gains (Losses) on Investments
|
DAC | Policyholders’ Liabilities | Deferred Income Tax Asset (Liability) |
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
|
|||||||||||||||||||||||||
Net unrealized investment gains (losses) with credit losses | (6) | 1 | 1 | 1 | (3) | ||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 8,811 | $ | (1,548) | $ | (1,065) | $ | (1,302) | $ | 4,896 | |||||||||||||||||||
Balance, January 1, 2019 | $ | (522) | $ | 100 | $ | (88) | $ | 104 | $ | (406) | |||||||||||||||||||
Net investment gains (losses) arising during the period | 4,188 | — | — | — | 4,188 | ||||||||||||||||||||||||
Reclassification adjustment: | |||||||||||||||||||||||||||||
Included in net income (loss) | (213) | — | — | — | (213) | ||||||||||||||||||||||||
Excluded from net income (loss) | — | — | — | — | — | ||||||||||||||||||||||||
Impact of net unrealized investment gains (losses) | — | (994) | (101) | (601) | (1,696) | ||||||||||||||||||||||||
Net unrealized investment gains (losses) excluding credit losses | 3,453 | (894) | (189) | (497) | 1,873 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) with credit losses (1) | — | — | — | — | — | ||||||||||||||||||||||||
Balance, December 31, 2019 | $ | 3,453 | $ | (894) | $ | (189) | $ | (497) | $ | 1,873 |
Less Than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||||||||||||||
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
December 31, 2020: (2) | |||||||||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||||||||
Corporate | $ | 2,990 | $ | 53 | $ | 337 | $ | 33 | $ | 3,327 | $ | 86 | |||||||||||||||||||||||
U.S. Treasury, government and agency | 885 | 5 | — | — | 885 | 5 | |||||||||||||||||||||||||||||
Foreign governments | 153 | 2 | 21 | 4 | 174 | 6 | |||||||||||||||||||||||||||||
Asset-backed | 809 | 4 | 76 | 1 | 885 | 5 | |||||||||||||||||||||||||||||
Redeemable preferred stock | 53 | 1 | 11 | 2 | 64 | 3 | |||||||||||||||||||||||||||||
Total at December 31, 2020 | $ | 4,890 | $ | 65 | $ | 445 | $ | 40 | $ | 5,335 | $ | 105 | |||||||||||||||||||||||
December 31, 2019: (1) (2) | |||||||||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||||||||
Corporate | $ | 2,773 | $ | 42 | $ | 373 | $ | 20 | $ | 3,146 | $ | 62 | |||||||||||||||||||||||
U.S. Treasury, government and agency | 4,309 | 305 | 2 | — | 4,311 | 305 | |||||||||||||||||||||||||||||
States and political subdivisions | 112 | 3 | — | — | 112 | 3 | |||||||||||||||||||||||||||||
Foreign governments | 11 | — | 47 | 5 | 58 | 5 | |||||||||||||||||||||||||||||
Asset-backed | 319 | 1 | 201 | 2 | 520 | 3 | |||||||||||||||||||||||||||||
Redeemable preferred stock | 29 | — | 49 | 5 | 78 | 5 | |||||||||||||||||||||||||||||
Total at December 31, 2019 | $ | 7,553 | $ | 351 | $ | 672 | $ | 32 | $ | 8,225 | $ | 383 |
Year Ended December 31, | |||||||||||
2020 | |||||||||||
(in millions) | |||||||||||
Allowance for credit losses on mortgage loans (1): | |||||||||||
Commercial mortgages: | |||||||||||
Balance, beginning of period | $ | 33 | |||||||||
Current-period provision for expected credit losses | 44 | ||||||||||
Write-offs charged against the allowance | — | ||||||||||
Recoveries of amounts previously written off | — | ||||||||||
Net change in allowance | $ | 44 | |||||||||
Balance, end of period | $ | 77 | |||||||||
Agricultural mortgages: | |||||||||||
Balance, beginning of period | $ | 3 | |||||||||
Current-period provision for expected credit losses | 1 | ||||||||||
Write-offs charged against the allowance | — | ||||||||||
Recoveries of amounts previously written off | — | ||||||||||
Net change in allowance | $ | 1 | |||||||||
Balance, end of period | $ | 4 | |||||||||
Total allowance for credit losses | $ | 81 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||||||||
Mortgage loans:
|
|||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | — | $ | — | $ | — | $ | 324 | $ | 187 | $ | 505 | $ | 1,016 | |||||||||||||||||||||||||||
50% - 70% | 1,294 | 357 | 803 | 656 | 2,190 | 1,697 | 6,997 | ||||||||||||||||||||||||||||||||||
70% - 90% | 321 | 457 | 452 | 219 | 203 | 538 | 2,190 | ||||||||||||||||||||||||||||||||||
90% plus | — | — | 12 | 5 | — | 288 | 305 | ||||||||||||||||||||||||||||||||||
Total commercial | $ | 1,615 | $ | 814 | $ | 1,267 | $ | 1,204 | $ | 2,580 | $ | 3,028 | $ | 10,508 | |||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 218 | $ | 135 | $ | 169 | $ | 157 | $ | 236 | $ | 652 | $ | 1,567 | |||||||||||||||||||||||||||
50% - 70% | 277 | 129 | 161 | 102 | 124 | 351 | 1,144 | ||||||||||||||||||||||||||||||||||
70% - 90% | — | — | 3 | — | — | 18 | 21 | ||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total agricultural | $ | 495 | $ | 264 | $ | 333 | $ | 259 | $ | 360 | $ | 1,021 | $ | 2,732 | |||||||||||||||||||||||||||
Total mortgage loans: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 218 | $ | 135 | $ | 169 | $ | 481 | $ | 423 | $ | 1,157 | $ | 2,583 | |||||||||||||||||||||||||||
50% - 70% | 1,571 | 486 | 964 | 758 | 2,314 | 2,048 | 8,141 | ||||||||||||||||||||||||||||||||||
70% - 90% | 321 | 457 | 455 | 219 | 203 | 556 | 2,211 | ||||||||||||||||||||||||||||||||||
90% plus | — | — | 12 | 5 | — | 288 | 305 | ||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 2,110 | $ | 1,078 | $ | 1,600 | $ | 1,463 | $ | 2,940 | $ | 4,049 | $ | 13,240 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 1,230 | $ | 492 | $ | 772 | $ | 268 | $ | 1,959 | $ | 1,230 | $ | 5,951 | |||||||||||||||||||||||||||
1.8x to 2.0x | 227 | 83 | 118 | 378 | 184 | 329 | 1,319 | ||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 98 | 138 | 187 | 479 | 437 | 616 | 1,955 | ||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 60 | 57 | 154 | 79 | — | 658 | 1,008 | ||||||||||||||||||||||||||||||||||
1.0x to 1.2x | — | 44 | — | — | — | 123 | 167 | ||||||||||||||||||||||||||||||||||
Less than 1.0x | — | — | 36 | — | — | 72 | 108 | ||||||||||||||||||||||||||||||||||
Total commercial | $ | 1,615 | $ | 814 | $ | 1,267 | $ | 1,204 | $ | 2,580 | $ | 3,028 | $ | 10,508 | |||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 67 | $ | 26 | $ | 36 | $ | 38 | $ | 71 | $ | 167 | $ | 405 | |||||||||||||||||||||||||||
1.8x to 2.0x | 38 | 35 | 14 | 15 | 20 | 82 | 204 | ||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 117 | 38 | 41 | 45 | 52 | 209 | 502 | ||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 183 | 120 | 141 | 90 | 142 | 313 | 989 | ||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 86 | 35 | 93 | 70 | 57 | 233 | 574 | ||||||||||||||||||||||||||||||||||
Less than 1.0x | 4 | 10 | 8 | 1 | 18 | 17 | 58 | ||||||||||||||||||||||||||||||||||
Total agricultural | $ | 495 | $ | 264 | $ | 333 | $ | 259 | $ | 360 | $ | 1,021 | $ | 2,732 | |||||||||||||||||||||||||||
Total mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 1,297 | $ | 518 | $ | 808 | $ | 306 | $ | 2,030 | $ | 1,397 | $ | 6,356 | |||||||||||||||||||||||||||
1.8x to 2.0x | 265 | 118 | 132 | 393 | 204 | 411 | 1,523 | ||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 215 | 176 | 228 | 524 | 489 | 825 | 2,457 | ||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 243 | 177 | 295 | 169 | 142 | 971 | 1,997 | ||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 86 | 79 | 93 | 70 | 57 | 356 | 741 | ||||||||||||||||||||||||||||||||||
Less than 1.0x | 4 | 10 | 44 | 1 | 18 | 89 | 166 | ||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 2,110 | $ | 1,078 | $ | 1,600 | $ | 1,463 | $ | 2,940 | $ | 4,049 | $ | 13,240 |
|
DSC Ratio (2) (3)
|
||||||||||||||||||||||||||||||||||||||||
LTV Ratio (1) (3):
|
Greater than 2.0x
|
1.8x to
2.0x |
1.5x to
1.8x |
1.2x to
1.5x |
1.0x to
1.2x |
Less than
1.0x |
Total
|
||||||||||||||||||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 856 | $ | — | $ | 160 | $ | — | $ | — | $ | — | $ | 1,016 |
|
DSC Ratio (2) (3)
|
||||||||||||||||||||||||||||||||||||||||
LTV Ratio (1) (3):
|
Greater than 2.0x
|
1.8x to
2.0x |
1.5x to
1.8x |
1.2x to
1.5x |
1.0x to
1.2x |
Less than
1.0x |
Total
|
||||||||||||||||||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||||||||||||
50% - 70% | 4,095 | 870 | 1,452 | 555 | 25 | — | 6,997 | ||||||||||||||||||||||||||||||||||
70% - 90% | 844 | 449 | 343 | 376 | 142 | 36 | 2,190 | ||||||||||||||||||||||||||||||||||
90% plus | 156 | — | — | 77 | — | 72 | 305 | ||||||||||||||||||||||||||||||||||
Total commercial | $ | 5,951 | $ | 1,319 | $ | 1,955 | $ | 1,008 | $ | 167 | $ | 108 | $ | 10,508 | |||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 297 | $ | 108 | $ | 291 | $ | 520 | $ | 317 | $ | 34 | $ | 1,567 | |||||||||||||||||||||||||||
50% - 70% | 108 | 94 | 211 | 450 | 257 | 24 | 1,144 | ||||||||||||||||||||||||||||||||||
70% - 90% | — | 2 | — | 19 | — | — | 21 | ||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total agricultural | $ | 405 | $ | 204 | $ | 502 | $ | 989 | $ | 574 | $ | 58 | $ | 2,732 | |||||||||||||||||||||||||||
Total mortgage loans: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 1,153 | $ | 108 | $ | 451 | $ | 520 | $ | 317 | $ | 34 | $ | 2,583 | |||||||||||||||||||||||||||
50% - 70% | 4,203 | 964 | 1,663 | 1,005 | 282 | 24 | 8,141 | ||||||||||||||||||||||||||||||||||
70% - 90% | 844 | 451 | 343 | 395 | 142 | 36 | 2,211 | ||||||||||||||||||||||||||||||||||
90% plus | 156 | — | — | 77 | — | 72 | 305 | ||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 6,356 | $ | 1,523 | $ | 2,457 | $ | 1,997 | $ | 741 | $ | 166 | $ | 13,240 | |||||||||||||||||||||||||||
December 31, 2019: | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
0% - 50%
|
$ | 903 | $ | 38 | $ | 214 | $ | 25 | $ | — | $ | — | $ | 1,180 | |||||||||||||||||||||||||||
50% - 70%
|
4,097 | 1,195 | 1,118 | 795 | 242 | — | 7,447 | ||||||||||||||||||||||||||||||||||
70% - 90%
|
251 | 98 | 214 | 154 | 46 | — | 763 | ||||||||||||||||||||||||||||||||||
90% plus
|
— | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total commercial | $ | 5,251 | $ | 1,331 | $ | 1,546 | $ | 974 | $ | 288 | $ | — | $ | 9,390 | |||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 322 | $ | 104 | $ | 241 | $ | 545 | $ | 321 | $ | 50 | $ | 1,583 | |||||||||||||||||||||||||||
50% - 70% | 82 | 87 | 236 | 426 | 251 | 33 | 1,115 | ||||||||||||||||||||||||||||||||||
70% - 90% | — | — | — | 19 | — | — | 19 | ||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total agricultural | $ | 404 | $ | 191 | $ | 477 | $ | 990 | $ | 572 | $ | 83 | $ | 2,717 | |||||||||||||||||||||||||||
Total mortgage loans: | |||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 1,225 | $ | 142 | $ | 455 | $ | 570 | $ | 321 | $ | 50 | $ | 2,763 | |||||||||||||||||||||||||||
50% - 70% | 4,179 | 1,282 | 1,354 | 1,221 | 493 | 33 | 8,562 | ||||||||||||||||||||||||||||||||||
70% - 90% | 251 | 98 | 214 | 173 | 46 | — | 782 | ||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 5,655 | $ | 1,522 | $ | 2,023 | $ | 1,964 | $ | 860 | $ | 83 | $ | 12,107 |
Accruing Loans
|
Non-accruing Loans
|
Total Loans
|
Non-accruing Loans with No Allowance | Interest Income on Non-accruing Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due
|
Current
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
90 Days or More
|
Total
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 162 | $ | — | $ | — | $ | 162 | $ | 10,346 | $ | 10,508 | $ | — | $ | 10,508 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Agricultural | 76 | 7 | 29 | 112 | 2,620 | 2,732 | — | 2,732 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 238 | $ | 7 | $ | 29 | $ | 274 | $ | 12,966 | $ | 13,240 | $ | — | $ | 13,240 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
December 31, 2019: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | 9,390 | $ | 9,390 | $ | — | $ | 9,390 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Agricultural | 57 | 1 | 66 | 124 | 2,593 | 2,717 | — | 2,717 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 57 | $ | 1 | $ | 66 | $ | 124 | $ | 11,983 | $ | 12,107 | $ | — | $ | 12,107 | $ | — | $ | — |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ | 128 | $ | 487 | $ | (223) | |||||||||||||||||||||||
Net investment gains (losses) recognized on securities sold during the period | 42 | 15 | (14) | ||||||||||||||||||||||||||
Unrealized and realized gains (losses) on trading securities | 170 | 502 | (237) | ||||||||||||||||||||||||||
Interest and dividend income from trading securities | 217 | 294 | 342 | ||||||||||||||||||||||||||
Net investment income (loss) from trading securities | $ | 387 | $ | 796 | $ | 105 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Fixed maturities | $ | 2,341 | $ | 2,060 | $ | 1,725 | |||||||||||
Mortgage loans on real estate | 516 | 541 | 494 | ||||||||||||||
Other equity investments | 67 | 140 | 141 | ||||||||||||||
Policy loans | 204 | 211 | 215 | ||||||||||||||
Trading securities | 387 | 796 | 105 | ||||||||||||||
Other investment income | 33 | 24 | 85 | ||||||||||||||
Fixed maturities, at fair value using the fair value option
|
1 | — | — | ||||||||||||||
Gross investment income (loss) | 3,549 | 3,772 | 2,765 | ||||||||||||||
Investment expenses | (72) | (73) | (72) | ||||||||||||||
Net investment income (loss) | $ | 3,477 | $ | 3,699 | $ | 2,693 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Fixed maturities | $ | 828 | $ | 205 | $ | (75) | |||||||||||
Mortgage loans on real estate | (45) | (1) | — | ||||||||||||||
Other equity investments | 30 | 2 | — | ||||||||||||||
Other | (69) | (133) | (11) | ||||||||||||||
Investment gains (losses), net | $ | 744 | $ | 73 | $ | (86) |
December 31, 2020 | Year Ended December 31, 2020 | ||||||||||||||||||||||
|
Fair Value
|
||||||||||||||||||||||
Notional Amount
|
Derivative Assets
|
Derivative Liabilities
|
Net Derivative Gains (Losses) (2)
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Derivative instruments: | |||||||||||||||||||||||
Freestanding derivatives (1): | |||||||||||||||||||||||
Equity contracts: | |||||||||||||||||||||||
Futures | $ | 4,881 | $ | — | $ | 2 | $ | (1,011) | |||||||||||||||
Swaps | 22,456 | 6 | 2 | (3,368) | |||||||||||||||||||
Options | 35,848 | 8,396 | 3,726 | 1,663 | |||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Swaps | 23,834 | 553 | 656 | 2,823 | |||||||||||||||||||
Futures | 18,571 | — | — | 1,740 | |||||||||||||||||||
Swaptions | — | — | — | 9 | |||||||||||||||||||
Credit contracts: | |||||||||||||||||||||||
Credit default swaps | 1,087 | 19 | 14 | — | |||||||||||||||||||
Other freestanding contracts: | |||||||||||||||||||||||
Foreign currency contracts | 411 | 9 | 9 | (4) | |||||||||||||||||||
Margin | — | 49 | 66 | — | |||||||||||||||||||
Collateral | — | 212 | 3,839 | — | |||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||
GMIB reinsurance contracts (3) | — | 2,488 | — | 417 | |||||||||||||||||||
GMxB derivative features liability (4) (6) | — | — | 11,131 | (2,253) | |||||||||||||||||||
SCS, SIO, MSO and IUL indexed features (5) | — | — | 4,509 | (1,738) | |||||||||||||||||||
Total derivative instruments
|
$ | 107,088 | $ | 11,732 | $ | 23,954 | |||||||||||||||||
Net derivative gains (losses) | $ | (1,722) |
December 31, 2019 | Year Ended December 31, 2019 | ||||||||||||||||||||||
|
Fair Value | ||||||||||||||||||||||
|
Notional Amount | Derivative Assets |
Derivative
Liabilities |
Net Derivative
Gains (Losses) (2) |
|||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Derivative instruments: | |||||||||||||||||||||||
Freestanding derivatives (1): | |||||||||||||||||||||||
Equity contracts: | |||||||||||||||||||||||
Futures | $ | 4,257 | $ | 1 | $ | 1 | $ | (1,311) | |||||||||||||||
Swaps | 17,156 | 9 | 281 | (2,426) | |||||||||||||||||||
Options | 47,861 | 5,098 | 1,752 | 2,229 | |||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Swaps | 23,793 | 468 | 526 | 2,037 | |||||||||||||||||||
Futures | 20,901 | — | — | 145 | |||||||||||||||||||
Swaptions | 3,201 | 16 | — | (35) | |||||||||||||||||||
Credit contracts: | |||||||||||||||||||||||
Credit default swaps | 1,400 | 21 | 6 | 9 | |||||||||||||||||||
Other freestanding contracts: | |||||||||||||||||||||||
Foreign currency contracts | 559 | 12 | 9 | (9) | |||||||||||||||||||
Margin | — | 155 | — | — | |||||||||||||||||||
Collateral | — | 74 | 3,016 | — | |||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||
GMIB reinsurance contracts (3) | — | 2,139 | — | 433 | |||||||||||||||||||
GMxB derivative features liability (4) | — | — | 8,502 | (2,442) | |||||||||||||||||||
SCS, SIO, MSO and IUL indexed features (5) | — | — | 3,268 | (2,642) | |||||||||||||||||||
Total derivative instruments | $ | 119,128 | $ | 7,993 | $ | 17,361 | |||||||||||||||||
Net derivative gains (losses) | $ | (4,012) |
Gross Amount Recognized
|
Gross Amount Offset in the Balance Sheets
|
Net Amount Presented in the Balance Sheets
|
Gross Amount not Offset in the Balance Sheets (3)
|
Net Amount
|
|||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Derivative assets (1) | $ | 9,244 | $ | 8,249 | $ | 995 | $ | (53) | $ | 942 | |||||||||||||||||||
Other financial assets | 1,733 | — | 1,733 | — | 1,733 | ||||||||||||||||||||||||
Other invested assets | $ | 10,977 | $ | 8,249 | $ | 2,728 | $ | (53) | $ | 2,675 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities (2) | $ | 8,261 | $ | 8,249 | $ | 12 | $ | — | $ | 12 | |||||||||||||||||||
Other financial liabilities | 3,674 | — | 3,674 | — | 3,674 | ||||||||||||||||||||||||
Other liabilities | $ | 11,935 | $ | 8,249 | $ | 3,686 | $ | — | $ | 3,686 |
Gross Amount Recognized | Gross Amount Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Gross Amount not Offset in the Balance Sheets (3) | Net Amount | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Derivative assets (1) | $ | 5,852 | $ | 5,466 | $ | 386 | $ | (77) | $ | 309 | |||||||||||||||||||
Other financial instruments | 2,394 | — | 2,394 | — | 2,394 | ||||||||||||||||||||||||
Other invested assets | $ | 8,246 | $ | 5,466 | $ | 2,780 | $ | (77) | $ | 2,703 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities (2) | $ | 5,512 | $ | 5,466 | $ | 46 | $ | — | $ | 46 | |||||||||||||||||||
Other financial liabilities | 3,924 | — | 3,924 | — | 3,924 | ||||||||||||||||||||||||
Other liabilities | $ | 9,436 | $ | 5,466 | $ | 3,970 | $ | — | $ | 3,970 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Closed Block Liabilities: | |||||||||||
Future policy benefits, policyholders’ account balances and other | $ | 6,201 | $ | 6,478 | |||||||
Policyholder dividend obligation | 160 | 2 | |||||||||
Other liabilities | 39 | 38 | |||||||||
Total Closed Block liabilities | 6,400 | 6,518 | |||||||||
Assets Designated to the Closed Block: | |||||||||||
Fixed maturities AFS, at fair value (amortized cost of $3,359 and $3,558) (allowance for credit losses of $0 at December 31, 2020)
|
3,718 | 3,754 | |||||||||
Mortgage loans on real estate (net of allowance for credit losses of $6 at December 31, 2020)
|
1,773 | 1,759 | |||||||||
Policy loans | 648 | 706 | |||||||||
Cash and other invested assets | 28 | 82 | |||||||||
Other assets | 169 | 145 | |||||||||
Total assets designated to the Closed Block | 6,336 | 6,446 | |||||||||
Excess of Closed Block liabilities over assets designated to the Closed Block | 64 | 72 | |||||||||
Amounts included in AOCI: | |||||||||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $160 and $2; and net of income tax: $(42) and $(41)
|
167 | 164 | |||||||||
Maximum future earnings to be recognized from Closed Block assets and liabilities | $ | 231 | $ | 236 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Premiums and other income | $ | 157 | $ | 182 | $ | 194 | ||||||||||||||||||||
Net investment income (loss) | 251 | 278 | 291 | |||||||||||||||||||||||
Investment gains (losses), net | — | (1) | (3) | |||||||||||||||||||||||
Total revenues | 408 | 459 | 482 | |||||||||||||||||||||||
Benefits and Other Deductions: | ||||||||||||||||||||||||||
Policyholders’ benefits and dividends | 399 | 439 | 471 | |||||||||||||||||||||||
Other operating costs and expenses | 1 | 2 | 3 | |||||||||||||||||||||||
Total benefits and other deductions | 400 | 441 | 474 | |||||||||||||||||||||||
Net income (loss), before income taxes | 8 | 18 | 8 | |||||||||||||||||||||||
Income tax (expense) benefit | (2) | (2) | (3) | |||||||||||||||||||||||
Net income (loss) | $ | 6 | $ | 16 | $ | 5 |
December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 2 | $ | — | $ | 19 | ||||||||||||||||||||||||||
Unrealized investment gains (losses) | 158 | 2 | (19) | |||||||||||||||||||||||||||||
Balance, end of year | $ | 160 | $ | 2 | $ | — | ||||||||||||||||||||||||||
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Balance, beginning of year (1) | $ | 5,840 | $ | 6,705 | $ | 5,900 | |||||||||||
Capitalization of commissions, sales and issue expenses | 669 | 754 | 697 | ||||||||||||||
Amortization: | |||||||||||||||||
Impact of assumptions updates and model changes | (1,109) | 46 | 286 | ||||||||||||||
All other | (504) | (643) | (657) | ||||||||||||||
Total amortization | (1,613) | (597) | (371) | ||||||||||||||
Change in unrealized investment gains and losses | (654) | (994) | 479 | ||||||||||||||
Reclassified to assets HFS | 1 | (31) | — | ||||||||||||||
Balance, end of year | $ | 4,243 | $ | 5,837 | $ | 6,705 | |||||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Balance, beginning of year | $ | 430 | $ | 448 | $ | 472 | |||||||||||
Amortization charged to income | (26) | (18) | (24) | ||||||||||||||
Balance, end of year | $ | 404 | $ | 430 | $ | 448 |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments | |||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||
Corporate (2) | $ | — | $ | 56,457 | $ | 1,702 | $ | 58,159 | |||||||||||||||
U.S. Treasury, government and agency | — | 16,118 | — | 16,118 | |||||||||||||||||||
States and political subdivisions | — | 596 | 39 | 635 | |||||||||||||||||||
Foreign governments | — | 1,103 | — | 1,103 | |||||||||||||||||||
Residential mortgage-backed (3) | — | 143 | — | 143 | |||||||||||||||||||
Asset-backed (4) | — | 3,591 | 20 | 3,611 | |||||||||||||||||||
Commercial mortgage-backed | — | 1,203 | — | 1,203 | |||||||||||||||||||
Redeemable preferred stock | 404 | 262 | — | 666 | |||||||||||||||||||
Total fixed maturities, AFS | 404 | 79,473 | 1,761 | 81,638 |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Fixed maturities, at fair value using the fair value option | — | 309 | 80 | 389 | |||||||||||||||||||
Other equity investments | 13 | — | 71 | 84 | |||||||||||||||||||
Trading securities | 441 | 5,073 | 39 | 5,553 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Short-term investments | — | 101 | 1 | 102 | |||||||||||||||||||
Assets of consolidated VIEs/VOEs | 74 | 231 | 13 | 318 | |||||||||||||||||||
Swaps | — | (99) | — | (99) | |||||||||||||||||||
Credit default swaps
|
— | 5 | — | 5 | |||||||||||||||||||
Futures | (2) | — | — | (2) | |||||||||||||||||||
Options | — | 4,670 | — | 4,670 | |||||||||||||||||||
Total other invested assets | 72 | 4,908 | 14 | 4,994 | |||||||||||||||||||
Cash equivalents | 4,309 | 297 | — | 4,606 | |||||||||||||||||||
Segregated securities | — | 1,753 | — | 1,753 | |||||||||||||||||||
GMIB reinsurance contracts asset | — | — | 2,488 | 2,488 | |||||||||||||||||||
Separate Accounts assets (5)
|
132,698 | 2,674 | 1 | 135,373 | |||||||||||||||||||
Total Assets | $ | 137,937 | $ | 94,487 | $ | 4,454 | $ | 236,878 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)
|
$ | — | $ | 312 | $ | — | $ | 312 | |||||||||||||||
GMxB derivative features’ liability | — | — | 11,131 | 11,131 | |||||||||||||||||||
SCS, SIO, MSO and IUL indexed features’ liability | — | 4,509 | — | 4,509 | |||||||||||||||||||
Liabilities of consolidated VIEs and VOEs | 2 | 6 | — | 8 | |||||||||||||||||||
Contingent payment arrangements | — | — | 28 | 28 | |||||||||||||||||||
Total Liabilities | $ | 2 | $ | 4,827 | $ | 11,159 | $ | 15,988 |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments | |||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||
Corporate (2) | $ | — | $ | 46,942 | $ | 1,257 | $ | 48,199 | |||||||||||||||
U.S. Treasury, government and agency | — | 15,394 | — | 15,394 | |||||||||||||||||||
States and political subdivisions | — | 666 | 39 | 705 | |||||||||||||||||||
Foreign governments | — | 492 | — | 492 | |||||||||||||||||||
Residential mortgage-backed (3) | — | 191 | — | 191 | |||||||||||||||||||
Asset-backed (4) | — | 749 | 100 | 849 | |||||||||||||||||||
Redeemable preferred stock | 239 | 274 | — | 513 | |||||||||||||||||||
Total fixed maturities, AFS | 239 | 64,708 | 1,396 | 66,343 | |||||||||||||||||||
Other equity investments | 13 | — | 97 | 110 | |||||||||||||||||||
Trading securities | 500 | 6,495 | 36 | 7,031 | |||||||||||||||||||
Other invested assets: |
|
||||||||||||||||||||||
Short-term investments | — | 490 | — | 490 | |||||||||||||||||||
Assets of consolidated VIEs/VOEs | 132 | 457 | 17 | 606 | |||||||||||||||||||
Swaps | — | (327) | — | (327) | |||||||||||||||||||
Credit default swaps
|
— | 15 | — | 15 | |||||||||||||||||||
Options | — | 3,346 | — | 3,346 | |||||||||||||||||||
Swaptions | — | 16 | — | 16 | |||||||||||||||||||
Total other invested assets | 132 | 3,997 | 17 | 4,146 | |||||||||||||||||||
Cash equivalents | 3,497 | — | — | 3,497 | |||||||||||||||||||
Segregated securities | — | 1,095 | — | 1,095 | |||||||||||||||||||
GMIB reinsurance contracts asset | — | — | 2,139 | 2,139 | |||||||||||||||||||
Separate Accounts assets (5) | 123,432 | 2,892 | — | 126,324 | |||||||||||||||||||
Total Assets | $ | 127,813 | $ | 79,187 | $ | 3,685 | $ | 210,685 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
GMxB derivative features’ liability | $ | — | $ | — | $ | 8,502 | $ | 8,502 | |||||||||||||||
SCS, SIO, MSO and IUL indexed features’ liability | — | 3,268 | — | 3,268 | |||||||||||||||||||
Liabilities of consolidated VIEs and VOEs | 1 | 9 | — | 10 | |||||||||||||||||||
Contingent payment arrangements | — | — | 23 | 23 | |||||||||||||||||||
Total Liabilities | $ | 1 | $ | 3,277 | $ | 8,525 | $ | 11,803 |
Corporate
|
State and
Political Subdivisions |
Asset-backed |
Redeemable Preferred Stock
|
Fixed maturities, at FVO (2) | |||||||||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 | $ | 1,257 | $ | 39 | $ | 100 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Total gains and (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) as: | |||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 4 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | (16) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Subtotal | (12) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (17) | 2 | — | — | |||||||||||||||||||||||||||||||||||||
Purchases | 514 | — | 20 | — | 81 | ||||||||||||||||||||||||||||||||||||
Sales | (226) | (2) | — | — | (1) | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | 189 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | (3) | — | (100) | — | — | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 1,702 | $ | 39 | $ | 20 | $ | — | $ | 80 | |||||||||||||||||||||||||||||||
Balance, January 1, 2019 | $ | 1,186 | $ | 39 | $ | 519 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Total gains and (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) as: | |||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 4 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | — | 1 | — | — | — | ||||||||||||||||||||||||||||||||||||
Subtotal | 4 | 1 | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 5 | 2 | 1 | — | — | ||||||||||||||||||||||||||||||||||||
Purchases | 274 | — | 100 | — | — | ||||||||||||||||||||||||||||||||||||
Sales | (122) | (3) | (84) | — | — | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | 14 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | (104) | — | (436) | — | — | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | 1,257 | $ | 39 | $ | 100 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Balance, January 1, 2018 | $ | 1,150 | $ | 40 | $ | 541 | $ | 1 | $ | — | |||||||||||||||||||||||||||||||
Total gains (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||
Income (loss) as: | |||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 8 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | (9) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Subtotal | (1) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (21) | (1) | (9) | — | — | ||||||||||||||||||||||||||||||||||||
Purchases | 334 | — | 17 | — | — | ||||||||||||||||||||||||||||||||||||
Sales | (337) | (1) | (30) | (1) | — | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | 89 | 1 | — | — | — | ||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | (28) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | 1,186 | $ | 39 | $ | 519 | $ | — | $ | — |
Other Equity Investments |
GMIB Reinsurance
Contract Asset
|
Separate Accounts Assets
|
GMxB Derivative Features Liability
|
Contingent Payment Arrangement
|
|||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Balance, January 1, 2020 | $ | 150 | $ | 2,139 | $ | — | $ | (8,502) | $ | (23) | |||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as:
|
|||||||||||||||||||||||||||||
Investment gains (losses), net
|
16 | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) (1) | — | 417 | — | (2,253) | — | ||||||||||||||||||||||||
Total realized and unrealized gains (losses)
|
16 | 417 | — | (2,253) | — | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
(20) | — | — | — | — | ||||||||||||||||||||||||
Purchases (2)
|
9 | 43 | 1 | (451) | (4) | ||||||||||||||||||||||||
Sales (3)
|
(27) | (79) | — | 75 | — | ||||||||||||||||||||||||
Settlements (4) | — | — | — | — | 1 | ||||||||||||||||||||||||
Change in estimate (5) | — | (32) | — | — | 1 | ||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | (4) | — | — | — | (3) | ||||||||||||||||||||||||
Transfers into Level 3 (6) | — | — | — | — | — | ||||||||||||||||||||||||
Transfers out of Level 3 (6) | — | — | — | — | — | ||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 124 | $ | 2,488 | $ | 1 | $ | (11,131) | $ | (28) | |||||||||||||||||||
Balance, January 1, 2019 | $ | 165 | $ | 1,733 | $ | 21 | $ | (5,674) | $ | (7) | |||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as: | |||||||||||||||||||||||||||||
Investment gains (losses), net | 24 | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | 4 | 433 | — | (2,442) | — | ||||||||||||||||||||||||
Total realized and unrealized gains (losses) | 28 | 433 | — | (2,442) | — | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (2) | 14 | 45 | — | (427) | (17) | ||||||||||||||||||||||||
Sales (3) | (16) | (72) | (1) | 41 | — | ||||||||||||||||||||||||
Settlements (4) | — | — | (2) | — | 1 | ||||||||||||||||||||||||
Change in estimate | — | — | — | — | 3 | ||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | (3) | — | — | — | (3) | ||||||||||||||||||||||||
Transfers into Level 3 (6) | — | — | — | — | — | ||||||||||||||||||||||||
Transfers out of Level 3 (6) | (38) | — | (18) | — | — | ||||||||||||||||||||||||
Balance, December 31, 2019 | $ | 150 | $ | 2,139 | $ | — | $ | (8,502) | $ | (23) | |||||||||||||||||||
Balance, January 1, 2018 | $ | 99 | $ | 1,894 | $ | 22 | $ | (4,492) | $ | (15) | |||||||||||||||||||
Total gains (losses), realized and unrealized, included in: |
Other Equity Investments |
GMIB Reinsurance
Contract Asset
|
Separate Accounts Assets
|
GMxB Derivative Features Liability
|
Contingent Payment Arrangement
|
|||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as: | |||||||||||||||||||||||||||||
Investment gains (losses), net | 12 | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | (163) | — | (793) | — | ||||||||||||||||||||||||
Total realized and unrealized gains (losses) | 12 | (163) | — | (793) | — | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | |||||||||||||||||||||||||
Purchases (2) | 62 | 46 | 5 | (413) | — | ||||||||||||||||||||||||
Sales (3) | (3) | (44) | (1) | 24 | — | ||||||||||||||||||||||||
Settlements (4) | — | — | (5) | — | 6 | ||||||||||||||||||||||||
Change in estimate | — | — | — | — | 2 | ||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | (6) | — | — | — | — | ||||||||||||||||||||||||
Transfers into Level 3 (6) | 6 | — | — | — | — | ||||||||||||||||||||||||
Transfers out of Level 3 (6) | (5) | — | — | — | — | ||||||||||||||||||||||||
Balance, December 31, 2018 | $ | 165 | $ | 1,733 | $ | 21 | $ | (5,674) | $ | (7) |
|
Net Income (Loss)
|
|
|||||||||||||||
|
Net Derivative Gains (Losses)
|
OCI
|
|||||||||||||||
(in millions)
|
|||||||||||||||||
Held at December 31, 2020: | |||||||||||||||||
Change in unrealized gains (losses): | |||||||||||||||||
Fixed maturities, AFS | |||||||||||||||||
Corporate | $ | — | $ | (18) | |||||||||||||
State and political subdivisions | — | 2 | |||||||||||||||
Asset-backed | — | — | |||||||||||||||
Total fixed maturities, AFS | — | (16) | |||||||||||||||
GMIB reinsurance contracts | 417 | — | |||||||||||||||
Separate Account assets | |||||||||||||||||
GMxB derivative features liability | (2,253) | — | |||||||||||||||
Total | $ | (1,836) | $ | (16) | |||||||||||||
Held at December 31, 2019: | |||||||||||||||||
Change in unrealized gains (losses): | |||||||||||||||||
Fixed maturities, AFS | |||||||||||||||||
Corporate | $ | — | $ | 4 | |||||||||||||
State and political subdivisions | — | 3 | |||||||||||||||
Asset-backed | — | — | |||||||||||||||
Total fixed maturities, AFS | — | 7 | |||||||||||||||
GMIB reinsurance contracts | 433 | — | |||||||||||||||
Separate Account assets | — | — | |||||||||||||||
GMxB derivative features liability | (2,442) | — | |||||||||||||||
Total | $ | (2,009) | $ | 7 | |||||||||||||
Held at December 31, 2018: | |||||||||||||||||
Change in unrealized gains (losses): | |||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||
Corporate | $ | — | $ | (19) | |||||||||||||
State and political subdivisions | — | (1) | |||||||||||||||
Commercial mortgage-backed | — | — | |||||||||||||||
Asset-backed | — | (6) | |||||||||||||||
Subtotal | — | (26) | |||||||||||||||
GMIB reinsurance contracts | (163) | — | |||||||||||||||
GMxB derivative features liability | (793) | — | |||||||||||||||
Total | $ | (956) | $ | (26) |
Fair
Value
|
Valuation
Technique
|
Significant
Unobservable Input
|
Range
|
Weighted Average (2)
|
|||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||||||||
Corporate | $ | 34 | Matrix pricing model | Spread over Benchmark | 45 - 195 bps | 160 bps | |||||||||||||||||||||||
1,148 |
Market comparable
companies |
EBITDA multiples
Discount rate Cash flow multiples |
3.5x - 33.1x
5.6% - 28.4% 1.9x -25.0x |
10.8x
8.6% 6.8x |
|||||||||||||||||||||||||
Other equity investments | 2 | Market comparable companies | Revenue multiple | 9.7x - 26.4x | 18.5x | ||||||||||||||||||||||||
39 | Discounted Cash Flow |
Earnings multiple
Discount factor Discount years |
8.2x
10.0% 11 |
||||||||||||||||||||||||||
GMIB reinsurance contract asset | 2,488 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 |
43 - 85 bps
0.6%-16% 0%-2% 0%-61% 7%-32% 0.01%-0.18% 0.07%-0.54% 0.42%-42.20% |
50 bps
1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages) |
||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
AB Contingent Consideration Payable | 28 | Discounted cash flow |
Expected revenue growth rates
Discount rate |
0.7 % - 50.0 %
1.9 % - 10.4 % |
4.9 %
8.0 % |
Fair
Value
|
Valuation
Technique
|
Significant
Unobservable Input
|
Range
|
Weighted Average (2)
|
|||||||||||||||||||||||||
GMIBNLG | 10,713 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 |
96.0 bps
1.1%-25.7% 0.4%-2% 0%-100% 0.01%-0.19% 0.06%-0.53% 0.41%-41.39% |
3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages) |
||||||||||||||||||||||||
Assumed GMIB Reinsurance Contracts | 195 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates (Age 0-85) Withdrawal rates (Age 86+) Utilization rates Volatility rates - Equity |
60 - 133
1.1% - 11.1% 0.6% - 22.2% 1.1% - 100% 0% - 30% 7%-32% |
99 bps
1.69% 0.91% (same for all ages) 5.82% 24% |
||||||||||||||||||||||||
GWBL/GMWB | 190 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity |
96.0 bps
0.8%-16% 0%-8% 100% once starting 7%-32% |
1.69% 0.91% 24% |
||||||||||||||||||||||||
GIB | 31 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity |
96.0 bps
0.8%-15.6% 0%-2% 0%-100% 7%-32% |
1.69% 0.91% 5.82% 24% |
||||||||||||||||||||||||
GMAB | 2 | Discounted cash flow |
Non-performance risk
Lapse rates Volatility rates - Equity |
96.0 bps 0.8%-16% 7%-32% |
1.69% 24% |
Fair
Value |
Valuation
Technique |
Significant
Unobservable Input |
Range
|
Weighted Average
|
|||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||||||||
Corporate | $ | 57 | Matrix pricing model | Spread over benchmark | 65 - 580 bps | 184 bps | |||||||||||||||||||||||
1,025 | Market comparable companies |
EBITDA multiples
Discount rate Cash flow multiples |
3.3x - 56.7x
3.9% - 16.5% 0.8x - 48.1x |
14.3x
10.0% 10.7x |
|||||||||||||||||||||||||
Other equity investments | 36 | Discounted cash flow |
Earnings multiple
Discounts factor Discount years |
8.0x
10.0% 11 |
|||||||||||||||||||||||||
GMIB reinsurance contract asset | 2,139 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 |
55 - 109 bps
0.8% - 10% 0.0% - 8.0% 0.0% - 49.0% 9.0% - 30.0% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20% |
Fair
Value |
Valuation
Technique |
Significant
Unobservable Input |
Range
|
Weighted Average
|
|||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
AB Contingent Consideration Payable | 23 | Discounted cash flow |
Expected revenue growth rates
Discount rate |
0.7 % - 50.0 %
3.0% - 10.4 % |
|||||||||||||||||||||||||
GMIBNLG | 8,135 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 |
124 bps
0.8% - 19.9% 0.3% - 11.0% 0.0% - 100.0% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39% |
|||||||||||||||||||||||||
Assumed GMIB Reinsurance Contracts | 186 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates (Age 0 - 85) Withdrawal rates (Age 86+) Utilization rates Volatility rates - Equity |
61 - 141 bps
1.1% - 11.1% 0.6% - 22.2% 1.1% - 100.0% 0.0% - 30.0% 9.0% - 30.0% |
|||||||||||||||||||||||||
GWBL/GMWB | 172 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity |
124 bps
0.8% - 10.0% 0.0% - 7.0% 100% after starting 9.0% - 30.0% |
|||||||||||||||||||||||||
GIB | 5 | Discounted cash flow |
Non-performance risk
Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity |
124 bps
1.2% - 19.9% 0.0% - 8.0% 0.0% - 100.0% 9.0% - 30.0% |
|||||||||||||||||||||||||
GMAB | 4 | Discounted cash flow |
Lapse rates
Volatility rates - Equity |
1.0% - 10.0%
9.0% - 30.0% |
Carrying
Value |
Fair Value
|
||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 13,159 | $ | — | $ | — | $ | 13,491 | $ | 13,491 | |||||||||||||||||||
Policy loans | $ | 4,118 | $ | — | $ | — | $ | 5,352 | $ | 5,352 | |||||||||||||||||||
Policyholders’ liabilities: Investment contracts | $ | 2,198 | $ | — | $ | — | $ | 2,416 | $ | 2,416 | |||||||||||||||||||
FHLB funding agreements | $ | 6,897 | $ | — | $ | 6,990 | $ | — | $ | 6,990 | |||||||||||||||||||
FABN funding agreements | $ | 1,939 | $ | — | $ | 1,971 | $ | — | $ | 1,971 | |||||||||||||||||||
Short-term and long-term debt | $ | 4,115 | $ | — | $ | 5,065 | $ | — | $ | 5,065 | |||||||||||||||||||
Separate Accounts liabilities | $ | 10,081 | $ | — | $ | — | $ | 10,081 | $ | 10,081 | |||||||||||||||||||
December 31, 2019: | |||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 12,107 | $ | — | $ | — | $ | 12,334 | $ | 12,334 | |||||||||||||||||||
Policy loans (1) | $ | 3,735 | $ | — | $ | — | $ | 4,707 | $ | 4,707 | |||||||||||||||||||
Policyholders’ liabilities: Investment contracts (1) | $ | 2,056 | $ | — | $ | — | $ | 2,167 | $ | 2,167 | |||||||||||||||||||
FHLB funding agreements | $ | 6,909 | $ | — | $ | 6,957 | $ | — | $ | 6,957 | |||||||||||||||||||
Short-term and long-term debt | $ | 4,111 | $ | — | $ | 4,514 | $ | — | $ | 4,514 | |||||||||||||||||||
Separate Accounts liabilities | $ | 9,041 | $ | — | $ | — | $ | 9,041 | $ | 9,041 |
GMDB | GMIB | ||||||||||||||||||||||||||||||||||
Direct | Assumed | Ceded | Direct | Assumed | Ceded | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Balance, January 1, 2018 | $ | 4,061 | $ | 95 | $ | (108) | $ | 4,767 | $ | 195 | $ | (1,894) | |||||||||||||||||||||||
Paid guarantee benefits | (393) | (24) | 16 | (153) | (12) | 44 | |||||||||||||||||||||||||||||
Other changes in reserve | 994 | 11 | (21) | (868) | 1 | 117 | |||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | 4,662 | $ | 82 | $ | (113) | $ | 3,746 | $ | 184 | $ | (1,733) | |||||||||||||||||||||||
Paid guarantee benefits | (438) | (21) | 14 | (256) | 7 | 72 | |||||||||||||||||||||||||||||
Other changes in reserve | 556 | 15 | (5) | 1,183 | (4) | (478) | |||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | 4,780 | $ | 76 | $ | (104) | $ | 4,673 | $ | 187 | $ | (2,139) | |||||||||||||||||||||||
Paid guarantee benefits | (495) | (22) | 15 | (293) | 15 | 79 | |||||||||||||||||||||||||||||
Other changes in reserve | 812 | 18 | 1 | 1,646 | (6) | (428) | |||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 5,097 | $ | 72 | $ | (88) | $ | 6,026 | $ | 196 | $ | (2,488) |
Guarantee Type
|
|||||||||||||||||||||||||||||
Return of Premium
|
Ratchet
|
Roll-Up
|
Combo
|
Total
|
|||||||||||||||||||||||||
(in millions, except age and interest rate)
|
|||||||||||||||||||||||||||||
Variable annuity contracts with GMDB features | |||||||||||||||||||||||||||||
Account Values invested in: | |||||||||||||||||||||||||||||
General Account | $ | 15,434 | $ | 88 | $ | 54 | $ | 167 | $ | 15,743 | |||||||||||||||||||
Separate Accounts | 53,877 | 9,550 | 3,299 | 33,794 | 100,520 | ||||||||||||||||||||||||
Total Account Values | $ | 69,311 | $ | 9,638 | $ | 3,353 | $ | 33,961 | $ | 116,263 | |||||||||||||||||||
NAR, gross | $ | 97 | $ | 33 | $ | 1,604 | $ | 17,047 | $ | 18,781 | |||||||||||||||||||
NAR, net of amounts reinsured | $ | 97 | $ | 31 | $ | 1,125 | $ | 17,047 | $ | 18,300 | |||||||||||||||||||
Average attained age of policyholders (in years) | 51.3 | 68.3 | 74.9 | 70.2 | 55.3 | ||||||||||||||||||||||||
Percentage of policyholders over age 70 | 11.2 | % | 48.4 | % | 70.3 | % | 54.2 | % | 20.2 | % | |||||||||||||||||||
Range of contractually specified interest rates | N/A | N/A | 3% - 6% | 3% - 6.5% | 3% - 6.5% | ||||||||||||||||||||||||
Variable annuity contracts with GMIB features | |||||||||||||||||||||||||||||
Account Values invested in: | |||||||||||||||||||||||||||||
General Account | $ | — | $ | — | $ | 16 | $ | 217 | $ | 233 | |||||||||||||||||||
Separate Accounts | — | — | 24,956 | 36,230 | 61,186 | ||||||||||||||||||||||||
Total Account Values | $ | — | $ | — | $ | 24,972 | $ | 36,447 | $ | 61,419 | |||||||||||||||||||
NAR, gross | $ | — | $ | — | $ | 877 | $ | 11,219 | $ | 12,096 | |||||||||||||||||||
NAR, net of amounts reinsured | $ | — | $ | — | $ | 281 | $ | 10,189 | $ | 10,470 | |||||||||||||||||||
Average attained age of policyholders (in years) | N/A | N/A | 64.2 | 70.2 | 68.0 | ||||||||||||||||||||||||
Weighted average years remaining until annuitization | N/A | N/A | 5.6 | 0.6 | 2.5 | ||||||||||||||||||||||||
Range of contractually specified interest rates | N/A | N/A | 3% - 6% | 3% - 6.5% | 3% - 6.5% |
Guarantee Type
|
|||||||||||||||||||||||||||||
Return of Premium
|
Ratchet
|
Roll-Up
|
Combo
|
Total
|
|||||||||||||||||||||||||
(in millions, except age and interest rates)
|
|||||||||||||||||||||||||||||
Variable annuity contracts with GMDB features | |||||||||||||||||||||||||||||
Reinsured Account Values | $ | 971 | $ | 5,349 | $ | 266 | $ | 1,176 | $ | 7,762 | |||||||||||||||||||
Net Amount at Risk assumed | $ | 4 | $ | 207 | $ | 13 | $ | 109 | $ | 333 | |||||||||||||||||||
Average attained age of policyholders (in years) | 68 | 73 | 78 | 76 | 73 | ||||||||||||||||||||||||
Percentage of policyholders over age 70 | 45.4 | % | 65.8 | % | 80.4 | % | 76.6 | % | 65.4 | % | |||||||||||||||||||
Range of contractually specified interest rates (1) | N/A | N/A | 3%-10% | 5%-10% | 3%-10% |
Guarantee Type
|
|||||||||||||||||||||||||||||
Return of Premium
|
Ratchet
|
Roll-Up
|
Combo
|
Total
|
|||||||||||||||||||||||||
(in millions, except age and interest rates)
|
|||||||||||||||||||||||||||||
Variable annuity contracts with GMIB features | |||||||||||||||||||||||||||||
Reinsured Account Values | $ | 962 | $ | 45 | $ | 237 | $ | 1,197 | $ | 2,441 | |||||||||||||||||||
Net Amount at Risk assumed | $ | 1 | $ | — | $ | 21 | $ | 226 | $ | 248 | |||||||||||||||||||
Average attained age of policyholders (in years) | 72 | 74 | 72 | 70 | 71 | ||||||||||||||||||||||||
Percentage of policyholders over age 70 | 64.8 | % | 64.2 | % | 62.2 | % | 54.7 | % | 59.6 | % | |||||||||||||||||||
Range of contractually specified interest rates | N/A | N/A | 3.3%-6.5% | 6%-6% | 3.3%-6.5% |
December 31, | |||||||||||||||||||||||
|
2020 | 2019 | |||||||||||||||||||||
Mutual Fund Type
|
GMDB
|
GMIB
|
GMDB
|
GMIB
|
|||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Equity | $ | 46,850 | $ | 18,771 | $ | 42,489 | $ | 17,941 | |||||||||||||||
Fixed income | 5,506 | 2,701 | 5,263 | 2,699 | |||||||||||||||||||
Balanced | 47,053 | 39,439 | 45,871 | 38,445 | |||||||||||||||||||
Other | 1,111 | 275 | 865 | 263 | |||||||||||||||||||
Total | $ | 100,520 | $ | 61,186 | $ | 94,488 | $ | 59,348 |
Direct Liability (1)
|
|||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Beginning balance | $ | 898 | $ | 813 | $ | 703 | |||||||||||||||||||||||
Paid guarantee benefits | (39) | (20) | (23) | ||||||||||||||||||||||||||
Other changes in reserves | 163 | 127 | 133 | ||||||||||||||||||||||||||
Transfer to liabilities held-for-sale | — | (22) | $ | — | |||||||||||||||||||||||||
Ending balance | $ | 1,022 | $ | 898 | $ | 813 |
December 31, | |||||||||||||||||
Balance Sheet Line Item
|
2020 | 2019 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Assets: | |||||||||||||||||
Operating lease assets | Other assets | $ | 691 | $ | 687 | ||||||||||||
Liabilities: | |||||||||||||||||
Operating lease liabilities | Other liabilities | $ | 855 | $ | 883 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Operating lease cost | $ | 169 | $ | 186 | |||||||
Variable operating lease cost | 49 | 50 | |||||||||
Sublease income | (56) | (72) | |||||||||
Short-term lease expense | — | 2 | |||||||||
Net lease cost | $ | 162 | $ | 166 | |||||||
December 31, 2020 | |||||
(in millions)
|
|||||
Operating Leases: | |||||
2021 | $ | 207 | |||
2022 | 196 | ||||
2023 | 179 | ||||
2024 | 116 | ||||
2025 | 55 | ||||
Thereafter | 332 | ||||
Total lease payments | 1,085 | ||||
Less: Interest | (230) | ||||
Present value of lease liabilities | $ | 855 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Weighted-average remaining operating lease term | 6 years | 6 years | |||||||||
Weighted-average discount rate for operating leases | 3.07 | % | 3.32 | % |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 210 | $ | 222 | |||||||
Non-cash transactions: | |||||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 156 | $ | 50 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Direct premiums | $ | 929 | $ | 1,068 | $ | 1,012 | |||||||||||
Reinsurance assumed | 222 | 220 | 214 | ||||||||||||||
Reinsurance ceded | (154) | (141) | (132) | ||||||||||||||
Premiums | $ | 997 | $ | 1,147 | $ | 1,094 | |||||||||||
Direct charges and fee income | $ | 4,149 | $ | 4,197 | $ | 4,252 | |||||||||||
Reinsurance ceded | (414) | (419) | (418) | ||||||||||||||
Policy charges and fee income | $ | 3,735 | $ | 3,778 | $ | 3,834 | |||||||||||
Direct policyholders’ benefits | $ | 5,826 | $ | 4,711 | $ | 3,210 | |||||||||||
Reinsurance assumed | 241 | 240 | 225 | ||||||||||||||
Reinsurance ceded | (741) | (566) | (579) | ||||||||||||||
Policyholders’ benefits | $ | 5,326 | $ | 4,385 | $ | 2,856 | |||||||||||
Direct interest credited to policyholders’ account balances | $ | 1,252 | $ | 1,322 | $ | 1,117 | |||||||||||
Reinsurance ceded | (30) | (59) | (50) | ||||||||||||||
Interest credited to policyholders’ account balances | $ | 1,222 | $ | 1,263 | $ | 1,067 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Short-term debt: | |||||||||||
Total short-term debt | — | — |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Long-term debt: | |||||||||||
Senior Notes (5.0%, due 2048)
|
1,481 | 1,480 | |||||||||
Senior Notes (4.35%, due 2028)
|
1,489 | 1,487 | |||||||||
Senior Notes (3.9%, due 2023)
|
796 | 795 | |||||||||
Senior Debentures, (7.0%, due 2028)
|
349 | 349 | |||||||||
Total long-term debt | 4,115 | 4,111 | |||||||||
Total short-term and long-term debt | $ | 4,115 | $ | 4,111 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Investment management and services fees | $ | 1,368 | $ | 1,276 | $ | 1,207 | |||||||||||
Distribution revenues | 516 | 441 | 404 | ||||||||||||||
Other revenues - shareholder servicing fees | 79 | 75 | 74 | ||||||||||||||
Other revenues - other | 8 | 7 | 7 | ||||||||||||||
Total | $ | 1,971 | $ | 1,799 | $ | 1,692 |
2019 | 2018 | |||||||||||||
Revenue received or accrued for: | ||||||||||||||
General services provided to AXA Affiliates (1) | — | 6 | ||||||||||||
Total | $ | — | $ | 6 | ||||||||||
Expenses paid or accrued for: | ||||||||||||||
General services provided by AXA Affiliates (1) | $ | 65 | $ | 146 | ||||||||||
Investment management services provided by AXA IM, AXA REIM, and AXA Rosenberg (1) | 5 | 2 | ||||||||||||
AXA Guarantees and AXA Credit Facility (1) | — | 1 | ||||||||||||
Total | $ | 70 | $ | 149 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Revenue received or accrued for: | |||||||||||||||||
Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and Other AXA Trusts | $ | 724 | $ | 732 | $ | 727 | |||||||||||
Total | $ | 724 | $ | 732 | $ | 727 | |||||||||||
Expenses paid or accrued for: | |||||||||||||||||
Investment management services provided by AXA Strategic Ventures Corporation | 2 | 2 | 2 | ||||||||||||||
Total | $ | 2 | $ | 2 | $ | 2 |
Year Ended December 31, | |||||||||||||||||
2020 |
|
2019 | 2018 | ||||||||||||||
(in millions)
|
|||||||||||||||||
Service cost | $ | 6 | $ | 8 | $ | 8 | |||||||||||
Interest cost | 77 | 104 | 103 | ||||||||||||||
Expected return on assets | (147) | (152) | (163) | ||||||||||||||
Actuarial (gain) loss | 1 | 1 | 1 | ||||||||||||||
Net amortization | 103 | 94 | 98 | ||||||||||||||
Impact of settlement | 7 | — | 109 | ||||||||||||||
Net periodic pension expense | $ | 47 | $ | 55 | $ | 156 |
|
2020 | 2019 | |||||||||
|
(in millions)
|
||||||||||
Projected benefit obligation, beginning of year | $ | 3,056 | $ | 2,874 | |||||||
Service cost | — | — | |||||||||
Interest cost | 77 | 104 | |||||||||
Actuarial (gains)/losses (1) | 272 | 303 | |||||||||
Benefits paid | (203) | (225) | |||||||||
Plan amendments and curtailments | — | — | |||||||||
Settlements | (22) | — | |||||||||
Projected benefit obligation, end of year | $ | 3,180 | 3,056 |
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Pension plan assets at fair value, beginning of year | $ | 2,552 | $ | 2,341 | |||||||
Actual return on plan assets | 373 | 389 | |||||||||
Contributions | — | 4 | |||||||||
Benefits paid | (165) | (183) | |||||||||
Annuity purchases | (16) | — | |||||||||
Pension plan assets at fair value, end of year | 2,744 | 2,552 | |||||||||
PBO | 3,180 | 3,056 | |||||||||
Excess of PBO over pension plan assets, end of year | $ | 436 | $ | 504 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Projected benefit obligation | $ | 3,180 | $ | 3,056 | |||||||
Accumulated benefit obligation | 3,180 | 3,056 | |||||||||
Fair value of plan assets | $ | 2,744 | $ | 2,552 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Unrecognized net actuarial (gain) loss | $ | 895 | $ | 976 | |||||||
Unrecognized prior service cost (credit) | (1) | (1) | |||||||||
Unrecognized net transition obligation (asset) | — | 1 | |||||||||
Total | $ | 894 | $ | 976 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Fixed maturities | 47.2 | % | 48.9 | % | |||||||
Equity securities | 32.1 | 27.6 | |||||||||
Equity real estate | 14.7 | 15.9 | |||||||||
Cash and short-term investments | 1.7 | 2.8 | |||||||||
Other | 4.3 | 4.8 | |||||||||
Total | 100.0 | % | 100.0 | % |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||
Corporate | $ | — | $ | 831 | $ | — | $ | 831 | |||||||||||||||
U.S. Treasury, government and agency | — | 412 | — | 412 | |||||||||||||||||||
States and political subdivisions | — | 16 | — | 16 | |||||||||||||||||||
Foreign governments | — | 14 | — | 14 | |||||||||||||||||||
Commercial mortgage-backed | — | 1 | — | 1 | |||||||||||||||||||
Common equity, REITs and preferred equity | 622 | 113 | — | 735 | |||||||||||||||||||
Mutual funds | 63 | — | — | 63 | |||||||||||||||||||
Collective Trust | — | 98 | — | 98 | |||||||||||||||||||
Derivatives, net | — | — | — | — | |||||||||||||||||||
Cash and cash equivalents | 23 | — | — | 23 | |||||||||||||||||||
Short-term investments | — | 21 | — | 21 | |||||||||||||||||||
Total Assets at Fair Value | 708 | 1,506 | — | 2,214 | |||||||||||||||||||
Investments measured at NAV | — | — | — | 536 | |||||||||||||||||||
Total Investments at Fair Value | $ | 708 | $ | 1,506 | $ | — | $ | 2,750 | |||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
December 31, 2019: | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||
Corporate | — | $ | 708 | $ | — | $ | 708 | ||||||||||||||||
U.S. Treasury, government and agency | — | 508 | — | 508 | |||||||||||||||||||
States and political subdivisions | — | 24 | — | 24 | |||||||||||||||||||
Foreign governments | — | 2 | — | 2 | |||||||||||||||||||
Commercial mortgage-backed | — | — | 1 | 1 | |||||||||||||||||||
Common equity, REITs and preferred equity | 489 | 92 | — | 582 | |||||||||||||||||||
Mutual funds | 54 | — | — | 54 | |||||||||||||||||||
Collective Trust | — | 97 | — | 97 | |||||||||||||||||||
Derivatives, net | — | — | — | — | |||||||||||||||||||
Cash and cash equivalents | 23 | — | — | 23 | |||||||||||||||||||
Short-term investments | — | 21 | — | 21 | |||||||||||||||||||
Total Assets at Fair Value | 567 | 1,453 | 1 | 2,020 | |||||||||||||||||||
Investments measured at NAV | — | — | — | 540 | |||||||||||||||||||
Total Investments at Fair Value | $ | 567 | $ | 1,453 | $ | 1 | $ | 2,560 |
Investment
|
Fair Value
|
Redemption Frequency
(If currently eligible)
|
Redemption Notice Period
|
Unfunded Commitments
|
|||||||||||||||||||
(in millions) | |||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||
Private Equity Fund | $ | 69 | N/A (1) (2) | N/A | $ | 21 | |||||||||||||||||
Private Real Estate Investment Trust | 397 | Quarterly | One Quarter | — | |||||||||||||||||||
Hedge Fund | 69 | Calendar Quarters (3) | Previous Quarter End | $ | 4 | ||||||||||||||||||
Total (4) | $ | 535 | |||||||||||||||||||||
December 31, 2019: | |||||||||||||||||||||||
Private Equity Fund | $ | 64 | N/A (1)(2) | N/A | $ | 28 | |||||||||||||||||
Private Real Estate Investment Trust | 396 | Quarterly | One Quarter | — | |||||||||||||||||||
Hedge Fund | 80 | Calendar Quarters (3) | Previous Quarter End | $ | 3 | ||||||||||||||||||
Total (4) | $ | 540 |
Private Real Estate Investment Trusts
|
Other Equity Investments
|
Fixed Maturities
|
|||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance, January 1, 2020 | $ | — | $ | — | $ | 1 | |||||||||||||||||
Actual return on plan assets — Sales/Settlements | — | — | (1) | ||||||||||||||||||||
Balance, December 31, 2020 | $ | — | $ | — | $ | — | |||||||||||||||||
Balance, January 1, 2019 | $ | — | $ | — | $ | 2 | |||||||||||||||||
Actual return on plan assets — Sales/Settlements | — | — | (1) | ||||||||||||||||||||
Balance, December 31, 2019 | $ | — | $ | — | $ | 1 | |||||||||||||||||
Balance, January 1, 2018 | $ | — | $ | — | $ | 3 | |||||||||||||||||
Actual return on plan assets — Sales/Settlements | — | — | (1) | ||||||||||||||||||||
Balance, December 31, 2018 | $ | — | $ | — | $ | 2 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Discount rates: | |||||||||||
Equitable Financial QP | 2.11% | 2.98% | |||||||||
Equitable Excess Retirement Plan | 1.99% | 2.9% | |||||||||
MONY Life Retirement Income Security Plan for Employees | 2.43% | 3.19% | |||||||||
AB Qualified Retirement Plan | 3.35% | 4.4% | |||||||||
Other defined benefit plans | 1.46%-2.43% | 2.58% — 3.07% | |||||||||
Periodic cost | 0.51%-2.43% | 3.75% — 4.20% | |||||||||
Cash balance interest crediting rate for pre-April 1, 2012 accruals | 4.00% | 4.00% | |||||||||
Cash balance interest crediting rate for post-April 1, 2012 accruals | 2.25% | 2.50% | |||||||||
Rates of compensation increase: | |||||||||||
Benefit obligation | 5.99% | 5.98% | |||||||||
Periodic cost | 6.32% | 6.38% | |||||||||
Expected long-term rates of return on pension plan assets (periodic cost) | 6.25% | 6.75% |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 2 | |||||||||||
Interest cost | 13 | 18 | 16 | ||||||||||||||
Net amortization | 9 | 6 | 9 | ||||||||||||||
Net periodic post-retirement benefits costs | $ | 24 | $ | 25 | $ | 27 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(in millions)
|
||||||||||||||
Accumulated post-retirement benefits obligation, beginning of year | $ | 517 | $ | 483 | ||||||||||
Service cost | 2 | 1 | ||||||||||||
Interest cost | 13 | 18 | ||||||||||||
Contributions and benefits paid | (24) | (34) | ||||||||||||
Plan amendments/curtailments | (30) | — | ||||||||||||
Actuarial (gains) losses | 38 | 49 | ||||||||||||
Accumulated post-retirement benefits obligation, end of year | $ | 516 | $ | 517 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Following year | 5.6% | 6.1% | |||||||||
Ultimate rate to which cost increase is assumed to decline | 4.0% | 4.0% | |||||||||
Year in which the ultimate trend rate is reached | 2095 | 2092 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions)
|
|||||||||||
Unrecognized net actuarial (gains) losses | $ | 186 | $ | 158 | |||||||
Unrecognized prior service (credit) | (29) | — | |||||||||
Total | $ | 157 | $ | 158 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Discount rates: | |||||||||||
Benefit obligation | 1.97%-2.38% | 2.29% — 3.16% | |||||||||
Periodic cost | 2.80%-3.16% | 3.53% — 4.17% |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | |||||||||||
Interest cost | — | — | — | ||||||||||||||
Net amortization | (5) | — | (1) | ||||||||||||||
Net (gain) loss | — | (1) | — | ||||||||||||||
Net periodic post-employment benefits costs | $ | (4) | $ | — | $ | 1 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Performance Shares
|
$ | 11 | $ | 29 | $ | 11 | |||||||||||
Stock Options
|
7 | 4 | 2 | ||||||||||||||
Restricted Stock Units
|
234 | 243 | 215 | ||||||||||||||
Total compensation expenses
|
$ | 252 | $ | 276 | $ | 228 | |||||||||||
Income Tax Benefit | $ | 52 | 62 | 49 |
Options Outstanding
|
||||||||||||||||||||||||||||||||||||||
EQH Shares
|
AB Holding Units
|
AXA Ordinary Shares
|
||||||||||||||||||||||||||||||||||||
Number
Outstanding
(in 000’s)
|
Weighted
Average
Exercise
Price
|
Number
Outstanding
(In 000’s)
|
Weighted
Average
Exercise
Price
|
Number
Outstanding (in 000’s) |
Weighted
Average Exercise Price |
|||||||||||||||||||||||||||||||||
Options outstanding at January 1, 2020 | 2,318 | $ | 19.72 | 159 | $ | 23.93 | 2,233 | € | 19.63 | |||||||||||||||||||||||||||||
Options granted | 1,531 | $ | 23.18 | — | $ | — | 4 | € | 12.22 | |||||||||||||||||||||||||||||
Options exercised | (95) | $ | 49.95 | (5) | $ | 28.46 | (468) | € | 14.60 | |||||||||||||||||||||||||||||
Options forfeited, net | (325) | $ | 21.00 | — | $ | — | (43) | € | 18.08 | |||||||||||||||||||||||||||||
Options expired | — | $ | — | (5) | $ | 28.46 | — | € | — | |||||||||||||||||||||||||||||
Options outstanding at December 31, 2020 | 3,429 | $ | 21.14 | 149 | $ | 23.61 | 1,726 | € | 21.01 | |||||||||||||||||||||||||||||
Aggregate intrinsic value (1) | $ | 12,472 | $ | 1,513 | $ | 2,298 | ||||||||||||||||||||||||||||||||
Weighted average remaining contractual term (in years) | 8.38 | 1.20 | 4.90 | |||||||||||||||||||||||||||||||||||
Options exercisable at December 31, 2020 | 896 | $ | 20.19 | 149 | $ | 23.61 | 1,531 | € | 20.81 | |||||||||||||||||||||||||||||
Aggregate intrinsic value (1) | $ | 4,119 | $ | 1,513 | € | 1,725 | ||||||||||||||||||||||||||||||||
Weighted average remaining contractual term (in years) | 7.73 | 1.20 | 4.62 |
|
EQH Shares (1)
|
|||||||||||||||||||
|
2020 | 2019 | 2018 | |||||||||||||||||
Dividend yield | 2.59% | 2.77% | 2.44% | |||||||||||||||||
Expected volatility | 26.00% | 25.70% | 25.40% | |||||||||||||||||
Risk-free interest rates | 1.19% | 2.49% | 2.83% | |||||||||||||||||
Expected life in years | 6.0 | 5.9 | 9.7 | |||||||||||||||||
Weighted average fair value per option at grant date | $ | 4.37 | $ | 3.82 | $ | 4.61 |
Shares of Holdings Restricted Stock Units
|
Weighted-Average Grant Date
Fair Value
|
Shares of AXA Restricted Stock Units
|
Weighted-Average Grant Date
Fair Value
|
||||||||||||||||||||
Unvested as of January 1, 2020 | 3,410,181 | $ | 19.57 | 22,105 | $ | 19.23 | |||||||||||||||||
Granted | 1,684,544 | $ | 22.98 | — | $ | — | |||||||||||||||||
Forfeited | (175,132) | $ | 20.60 | — | $ | — | |||||||||||||||||
Vested | (1,252,982) | $ | 19.98 | (22,105) | $ | 19.23 | |||||||||||||||||
Unvested as of December 31, 2020 | 3,666,611 | $ | 21.15 | — | $ | — |
Shares of Holdings Performance Awards
|
Weighted-Average Grant Date
Fair Value |
Shares of AXA Performance Awards
|
Weighted-Average Grant Date
Fair Value |
||||||||||||||||||||
Unvested as of January 1, 2020 | 459,986 | $ | 21.03 | 4,533,936 | $ | 20.79 | |||||||||||||||||
Granted | 279,645 | $ | 23.92 | — | $ | — | |||||||||||||||||
Forfeited | (62,943) | $ | 21.98 | (107,959) | $ | 21.25 | |||||||||||||||||
Vested | — | $ | — | (1,619,851) | $ | 18.91 | |||||||||||||||||
Unvested as of December 31, 2020 | 676,688 | $ | 22.14 | 2,806,126 | $ | 21.86 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Income tax (expense) benefit: | |||||||||||||||||
Current (expense) benefit | $ | (5) | $ | (71) | $ | 508 | |||||||||||
Deferred (expense) benefit | 749 | 664 | (809) | ||||||||||||||
Total | $ | 744 | $ | 593 | $ | (301) |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Expected income tax (expense) benefit | $ | 229 | $ | 433 | $ | (522) | |||||||||||
Noncontrolling interest | 50 | 51 | 54 | ||||||||||||||
Non-taxable investment income | 92 | 74 | 105 | ||||||||||||||
Tax audit interest | (8) | (24) | (22) | ||||||||||||||
State income taxes | (38) | (21) | (18) | ||||||||||||||
Tax settlements/uncertain tax position release | 398 | 63 | 12 | ||||||||||||||
Tax credits | 21 | — | — | ||||||||||||||
Change in tax law | — | — | 104 | ||||||||||||||
Other | — | 17 | (14) | ||||||||||||||
Income tax (expense) benefit | $ | 744 | $ | 593 | $ | (301) |
December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Compensation and related benefits | $ | 297 | $ | — | $ | 283 | $ | — | |||||||||||||||
Net operating loss and credits | 88 | — | 56 | — | |||||||||||||||||||
Reserves and reinsurance | 1,528 | — | 1,238 | — | |||||||||||||||||||
DAC | — | 638 | — | 973 | |||||||||||||||||||
Unrealized investment gains/losses | — | 1,790 | — | 717 | |||||||||||||||||||
Investments | 461 | — | 46 | — | |||||||||||||||||||
Other | — | 170 | — | 111 | |||||||||||||||||||
Total | $ | 2,374 | $ | 2,598 | $ | 1,623 | $ | 1,801 |
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Balance at January 1, | $ | 501 | $ | 539 | $ | 477 | |||||||||||
Additions for tax positions of prior years | 241 | 25 | 91 | ||||||||||||||
Reductions for tax positions of prior years | (382) | (63) | (29) | ||||||||||||||
Additions for tax positions of current year | — | — | — | ||||||||||||||
Settlements with tax authorities | (44) | — | — | ||||||||||||||
Balance at December 31, | $ | 316 | $ | 501 | $ | 539 | |||||||||||
Unrecognized tax benefits that, if recognized, would impact the effective rate | $ | 77 | $ | 369 | $ | 407 |
Outstanding Balance at December 31, 2019 | Issued During the Period | Repaid During the Period | Long-term Agreements Maturing Within One Year | Long-term Agreements Maturing Within Five Years | Outstanding Balance at December 31, 2020 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Short-term funding agreements: | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 4,608 | $ | 46,798 | $ | 46,808 | $ | 1,036 | $ | — | $ | 5,634 | |||||||||||||||||||||||
Long-term funding agreements: | |||||||||||||||||||||||||||||||||||
Due in years two through five | 1,646 | — | — | (1,036) | 112 | 722 | |||||||||||||||||||||||||||||
Due in more than five years | 646 | — | — | — | (112) | 534 | |||||||||||||||||||||||||||||
Total long-term funding agreements | 2,292 | — | — | (1,036) | — | 1,256 | |||||||||||||||||||||||||||||
Total funding agreements (1) | $ | 6,900 | $ | 46,798 | $ | 46,808 | $ | — | $ | — | $ | 6,890 | |||||||||||||||||||||||
Outstanding Balance at December 31, 2019 | Issued During the Period | Repaid During the Period | Long-term agreements maturing within one year | Long-term Agreements Maturing Within Five Years | Outstanding Balance at December 31, 2020 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Short-term funding agreements: | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Long-term funding agreements: | |||||||||||||||||||||||||||||||||||
Due in years two through five | — | 1,150 | — | — | — | 1,150 | |||||||||||||||||||||||||||||
Due in more than five years | — | 800 | — | — | — | 800 | |||||||||||||||||||||||||||||
Total long-term funding agreements | — | 1,950 | — | — | — | 1,950 | |||||||||||||||||||||||||||||
Total funding agreements (1) | $ | — | $ | 1,950 | $ | — | $ | — | $ | — | $ | 1,950 | |||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Combined statutory net income (loss) (1)
|
$ | 396 | $ | 3,821 | $ | 3,000 | ||||||||||||||
As of December 31, | ||||||||||||||||||||
Combined surplus, capital stock and AVR | $ | 7,475 | $ | 9,321 | ||||||||||||||||
Combined securities on deposits n accordance with various government and state regulations
|
$ | 75 | $ | 82 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | (648) | $ | (1,764) | $ | 1,855 | |||||||||||||||||||||||
Adjustments related to: | |||||||||||||||||||||||||||||
Variable annuity product features (1) | 3,912 | 4,863 | (63) | ||||||||||||||||||||||||||
Investment (gains) losses | (744) | (73) | 86 | ||||||||||||||||||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 109 | 99 | 215 | ||||||||||||||||||||||||||
Other adjustments (2) (3) | 952 | 395 | 301 | ||||||||||||||||||||||||||
Income tax expense (benefit) related to above adjustments (4) | (888) | (1,097) | (125) | ||||||||||||||||||||||||||
Non-recurring tax items (5) | (391) | (66) | (73) | ||||||||||||||||||||||||||
Non-GAAP operating earnings | $ | 2,302 | $ | 2,357 | $ | 2,196 | |||||||||||||||||||||||
Operating earnings (loss) by segment: | |||||||||||||||||||||||||||||
Individual Retirement | $ | 1,536 | $ | 1,598 | $ | 1,544 | |||||||||||||||||||||||
Group Retirement | $ | 491 | $ | 390 | $ | 389 | |||||||||||||||||||||||
Investment Management and Research | $ | 432 | $ | 381 | $ | 381 | |||||||||||||||||||||||
Protection Solutions | $ | 146 | $ | 336 | $ | 237 | |||||||||||||||||||||||
Corporate and Other (6) | $ | (303) | $ | (348) | $ | (355) |
|
Year Ended December 31, | ||||||||||||||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||||||
Individual Retirement (1) | $ | 4,311 | $ | 4,325 | $ | 4,044 | |||||||||||||||||||||||
Group Retirement (1) | 1,148 | 1,077 | 1,019 | ||||||||||||||||||||||||||
Investment Management and Research (2) | 3,703 | 3,479 | 3,411 | ||||||||||||||||||||||||||
Protection Solutions (1) | 3,144 | 3,366 | 3,241 | ||||||||||||||||||||||||||
Corporate and Other (1) | 1,207 | 1,228 | 1,148 | ||||||||||||||||||||||||||
Adjustments related to: | |||||||||||||||||||||||||||||
Variable annuity product features | (2,284) | (3,935) | (652) | ||||||||||||||||||||||||||
Investment gains (losses), net | 744 | 73 | (86) | ||||||||||||||||||||||||||
Other adjustments to segment revenues (3) | 442 | 6 | (56) | ||||||||||||||||||||||||||
Total revenues | $ | 12,415 | $ | 9,619 | $ | 12,069 |
|
2020 | 2019 | |||||||||
(in millions)
|
|||||||||||
Total assets by segment: | |||||||||||
Individual Retirement | $ | 135,764 | $ | 123,627 | |||||||
Group Retirement | 51,466 | 43,590 | |||||||||
Investment Management and Research | 11,179 | 10,170 | |||||||||
Protection Solutions | 48,568 | 46,832 | |||||||||
Corporate and Other | 28,420 | 25,599 | |||||||||
Total assets | $ | 275,397 | $ | 249,818 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Series | Shares Authorized |
Shares
Issued |
Shares Outstanding | Shares Authorized |
Shares
Issued |
Shares Outstanding | ||||||||||||||||||||||||||||||||
Series A Preferred Stock | 32,000 | 32,000 | 32,000 | 32,000 | 32,000 | 32,000 | ||||||||||||||||||||||||||||||||
Series B Preferred Stock | 20,000 | 20,000 | 20,000 | — | — | — | ||||||||||||||||||||||||||||||||
Total | 52,000 | 52,000 | 52,000 | 32,000 | 32,000 | 32,000 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Series A dividends declared | $ | 1,378 | $ | — | $ | — | |||||||||||||||||||||||||||||
Series B dividends declared | $ | 426 | $ | — | $ | — | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Dividends declared per share of common stock | $ | 0.66 | $ | 0.58 | $ | 0.26 |
|
December 31, | ||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||
|
(in millions)
|
||||||||||||||||
Unrealized gains (losses) on investments (1) (3) | $ | 4,797 | $ | 1,842 | $ | (416) | |||||||||||
Defined benefit pension plans (2) | (935) | (983) | (968) | ||||||||||||||
Foreign currency translation adjustments | (34) | (57) | (62) | ||||||||||||||
Total accumulated other comprehensive income (loss) | 3,828 | 802 | (1,446) | ||||||||||||||
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (35) | (42) | (38) | ||||||||||||||
Accumulated other comprehensive income (loss) attributable to Holdings | $ | 3,863 | $ | 844 | $ | (1,408) |
|
Year Ended December 31, | ||||||||||||||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Foreign currency translation gains (losses) arising during the period | 22 | 5 | (32) | ||||||||||||||||||||||||||
(Gains) losses reclassified into net income (loss) during the period | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation adjustment | 22 | 5 | (32) | ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of income taxes | 3,026 | 2,248 | (1,169) | ||||||||||||||||||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interest | 7 | (4) | 15 | ||||||||||||||||||||||||||
Other comprehensive income (loss) attributable to Holdings | $ | 3,019 | $ | 2,252 | $ | (1,184) |
|
Year Ended December 31, | ||||||||||||||||
|
2020 | 2019 | 2018 | ||||||||||||||
(in millions)
|
|||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Weighted-average common shares outstanding — basic
|
450.4 | 493.6 | 556.4 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Employee share awards (1) | — | — | 0.1 | ||||||||||||||
Weighted-average common shares outstanding — diluted (2)
|
450.4 | 493.6 | 556.5 | ||||||||||||||
Net income (loss): | |||||||||||||||||
Net income (loss) | $ | (349) | $ | (1,467) | $ | 2,189 | |||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 299 | 297 | 334 | ||||||||||||||
Net income (loss) attributable to Holdings | (648) | (1,764) | 1,855 | ||||||||||||||
Less: Preferred stock dividends | 53 | — | — | ||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | (701) | $ | (1,764) | $ | 1,855 | |||||||||||
EPS: | |||||||||||||||||
Basic | $ | (1.56) | $ | (3.57) | $ | 3.33 | |||||||||||
Diluted | $ | (1.56) | $ | (3.57) | $ | 3.33 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 365 | $ | 187 | $ | 626 | ||||||||||||||||||||||||||
Net earnings (loss) attributable to redeemable noncontrolling interests | (3) | 34 | 18 | |||||||||||||||||||||||||||||
Purchase/change of redeemable noncontrolling interests | (219) | 144 | (457) | |||||||||||||||||||||||||||||
Balance, end of period | $ | 143 | $ | 365 | $ | 187 |
December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Fixed maturity securities | $ | 235 | $ | 896 | ||||||||||||||||
Trading securities, at fair value | 189 | 17 | ||||||||||||||||||
Policy loans | — | 19 | ||||||||||||||||||
Other invested assets | 1 | — | ||||||||||||||||||
Cash and cash equivalents | 39 | 65 | ||||||||||||||||||
Amounts due from reinsurers | — | 43 | ||||||||||||||||||
Deferred policy acquisition costs | — | 31 | ||||||||||||||||||
Other assets | 25 | 24 | ||||||||||||||||||
Assets held-for-sale | 489 | 1,095 | ||||||||||||||||||
Less: Loss accrual | (19) | (133) | ||||||||||||||||||
Total assets held-for-sale | $ | 470 | $ | 962 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Policyholders' account balances | $ | — | $ | 286 | ||||||||||||||||
Future policy benefits and other policyholder's liabilities: | 320 | 421 | ||||||||||||||||||
Amounts due to reinsurers | — | 6 | ||||||||||||||||||
Other liabilities | 2 | 11 | ||||||||||||||||||
Total liabilities held-for-sale | $ | 322 | $ | 724 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously
Reported |
Impact of Revisions | As Revised | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheet: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred policy acquisition costs | $ | 5,890 | $ | (53) | $ | 5,837 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
GMIB reinsurance contract asset, at fair value | 2,139 | — | 2,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 3,799 | 1 | 3,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 249,870 | $ | (52) | $ | 249,818 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits and other policyholders’ liabilities | $ | 34,587 | $ | 48 | $ | 34,635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and deferred income taxes | 549 | (21) | 528 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 234,379 | 27 | 234,406 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained earnings | 11,827 | (83) | 11,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 840 | 4 | 844 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity attributable to Holdings | 13,535 | (79) | 13,456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Equity | 15,126 | (79) | 15,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 249,870 | $ | (52) | $ | 249,818 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously
Reported |
Impact of Revisions | As Revised |
As Previously
Reported |
Impact of Revisions | As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy charges and fee income | $ | 3,738 | $ | 40 | $ | 3,778 | $ | 3,824 | $ | 10 | $ | 3,834 | |||||||||||||||||||||||||||||||||||||||||||||||
Net derivative gains (losses) | (4,000) | (12) | (4,012) | (231) | (19) | (250) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 9,591 | 28 | 9,619 | 12,078 | (9) | 12,069 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholders' benefits | 4,370 | 15 | 4,385 | 2,915 | (59) | 2,856 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | 1,241 | 22 | 1,263 | 1,090 | (23) | 1,067 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commissions and distribution related payments | 1,242 | — | 1,242 | 1,160 | 5 | 1,165 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 579 | 18 | 597 | 333 | 38 | 371 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating costs and expenses | 1,892 | (2) | 1,890 | 1,809 | 1 | 1,810 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total benefits and other deductions | 11,626 | 53 | 11,679 | 9,617 | (38) | 9,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, before income taxes | (2,035) | (25) | (2,060) | 2,461 | 29 | 2,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | 599 | (6) | 593 | (307) | 6 | (301) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (1,436) | (31) | (1,467) | 2,154 | 35 | 2,189 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | (1,733) | $ | (31) | $ | (1,764) | $ | 1,820 | $ | 35 | $ | 1,855 | |||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | (3.51) | $ | (0.06) | $ | (3.57) | $ | 3.27 | $ | 0.06 | $ | 3.33 | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | (3.51) | $ | (0.06) | $ | (3.57) | $ | 3.27 | $ | 0.06 | $ | 3.33 |
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously
Reported |
Impact of Revisions | As Revised |
As Previously
Reported |
Impact of Revisions | As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (1,436) | $ | (31) | $ | (1,467) | $ | 2,154 | $ | 35 | $ | 2,189 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 5 | — | 5 | (32) | — | (32) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | 2,242 | 16 | 2,258 | (1,334) | 8 | (1,326) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 2,232 | 16 | 2,248 | (1,177) | 8 | (1,169) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 796 | (15) | 781 | 977 | 43 | 1,020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Holdings | $ | 503 | $ | (15) | $ | 488 | $ | 628 | $ | 43 | $ | 671 |
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously
Reported |
Impact of Revisions | As Revised |
As Previously
Reported |
Impact of Revisions | As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained earnings, beginning of year | $ | 13,989 | $ | (52) | $ | 13,937 | $ | 12,225 | $ | (87) | $ | 12,138 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | (1,733) | (31) | (1,764) | 1,820 | 35 | 1,855 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained earnings, end of year | $ | 11,827 | $ | (83) | $ | 11,744 | $ | 13,989 | $ | (52) | $ | 13,937 | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), beginning of year | $ | (1,396) | $ | (12) | $ | (1,408) | $ | (108) | $ | (20) | $ | (128) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 2,236 | 16 | 2,252 | (1,192) | 8 | (1,184) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), end of year | $ | 840 | $ | 4 | $ | 844 | $ | (1,396) | $ | (12) | $ | (1,408) | |||||||||||||||||||||||||||||||||||||||||||||||
Total Holdings’ equity, end of year | $ | 13,535 | $ | (79) | $ | 13,456 | $ | 13,866 | $ | (64) | $ | 13,802 | |||||||||||||||||||||||||||||||||||||||||||||||
Total equity, end of year | $ | 15,126 | $ | (79) | $ | 15,047 | $ | 15,432 | $ | (64) | $ | 15,368 |
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously
Reported |
Impact of Revisions | As Revised |
As Previously
Reported |
Impact of Revisions | As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Cash Flows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (1,436) | $ | (31) | $ | (1,467) | $ | 2,154 | $ | 35 | $ | 2,189 | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy charges and fee income | (3,738) | (40) | (3,778) | (3,824) | (10) | (3,834) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | 1,241 | 22 | 1,263 | 1,090 | (23) | 1,067 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net derivative (gains) losses | 4,000 | 12 | 4,012 | 231 | 19 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization and depreciation | 657 | 18 | 675 | 257 | 39 | 296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization of DAC | (754) | — | (754) | (702) | 5 | (697) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits | 947 | 15 | 962 | (399) | (59) | (458) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and deferred income taxes | (108) | 6 | (102) | 633 | (6) | 627 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | (162) | (2) | (164) | (222) | — | (222) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (216) | $ | — | $ | (216) | $ | 61 | $ | — | $ | 61 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of year | $ | 4,405 | $ | — | $ | 4,405 | $ | 4,469 | $ | — | $ | 4,469 | |||||||||||||||||||||||||||||||||||||||||||||||
Cost (2)
|
Fair Value
|
Carrying
Value
|
|||||||||||||||
(in millions)
|
|||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||
U.S. government, agencies and authorities | $ | 12,675 | $ | 16,118 | $ | 16,118 | |||||||||||
State, municipalities and political subdivisions | 535 | 635 | 635 | ||||||||||||||
Foreign governments | 1,011 | 1,103 | 1,103 | ||||||||||||||
Public utilities | 6,412 | 7,087 | 7,087 | ||||||||||||||
All other corporate bonds | 46,748 | 51,072 | 51,072 | ||||||||||||||
Residential mortgage-backed | 130 | 143 | 143 | ||||||||||||||
Asset-backed | 3,587 | 3,611 | 3,611 | ||||||||||||||
Commercial mortgage-backed | 1,148 | 1,203 | 1,203 | ||||||||||||||
Redeemable preferred stocks | 621 | 666 | 666 | ||||||||||||||
Total fixed maturities, AFS | 72,867 | 81,638 | 81,638 | ||||||||||||||
Fixed maturities, at fair value using the fair value option | 389 | 389 | 389 | ||||||||||||||
Mortgage loans on real estate (3) | 13,240 | 13,491 | 13,159 | ||||||||||||||
Policy loans | 4,118 | 5,352 | 4,118 | ||||||||||||||
Other equity investments | 1,458 | 1,502 | 1,502 | ||||||||||||||
Trading securities | 5,237 | 5,553 | 5,553 | ||||||||||||||
Other invested assets | 2,728 | 2,728 | 2,728 | ||||||||||||||
Total Investments | $ | 100,037 | $ | 110,653 | $ | 109,087 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions, except share amounts)
|
|||||||||||
ASSETS | |||||||||||
Investment in consolidated subsidiaries | $ | 15,603 | $ | 15,891 | |||||||
Fixed maturities available-for-sale, at fair value (amortized cost of $183 and $233) | 1,116 | 236 | |||||||||
Other equity investments | 66 | 37 | |||||||||
Total investments | 16,785 | 16,164 | |||||||||
Cash and cash equivalents | 1,972 | 1,353 | |||||||||
Goodwill and other intangible assets, net | 1,245 | 1,258 | |||||||||
Loans to affiliates | 675 | 560 | |||||||||
Other assets | 903 | 829 | |||||||||
Total Assets | $ | 21,580 | $ | 20,164 | |||||||
LIABILITIES | |||||||||||
Short-term and long-term debt | $ | 4,115 | $ | 4,111 | |||||||
Employee benefits liabilities | 1,177 | 1,226 | |||||||||
Loans from affiliates | 900 | 1,200 | |||||||||
Income taxes payable | (209) | 72 | |||||||||
Accrued liabilities | 21 | 99 | |||||||||
Total Liabilities | $ | 6,004 | $ | 6,708 | |||||||
EQUITY ATTRIBUTABLE TO HOLDINGS | |||||||||||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference
|
$ | 1,269 | $ | 775 | |||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 552,896,328 and 552,896,328 shares issued, respectively; 440,776,011 and 463,711,392 shares outstanding, respectively
|
5 | 5 | |||||||||
Additional paid-in capital | 1,985 | 1,920 | |||||||||
Treasury stock, at cost, 112,120,317 and 89,184,936 shares, respectively
|
(2,245) | (1,832) | |||||||||
Retained earnings | 10,699 | 11,744 | |||||||||
Accumulated other comprehensive income (loss) | 3,863 | 844 | |||||||||
Total equity attributable to Holdings | 15,576 | 13,456 | |||||||||
Total Liabilities and Equity Attributable to Holdings | $ | 21,580 | $ | 20,164 |
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
REVENUES | |||||||||||||||||
Equity in income (losses) from continuing operations of consolidated subsidiaries | $ | (668) | $ | (1,592) | $ | 2,434 | |||||||||||
Net investment income (loss) | 26 | 29 | 30 | ||||||||||||||
Investment gains (losses), net | — | (1) | (8) | ||||||||||||||
Other income | — | 12 | (1) | ||||||||||||||
Total revenues | (642) | (1,552) | 2,455 | ||||||||||||||
EXPENSES | |||||||||||||||||
Interest expense | 229 | 237 | 214 | ||||||||||||||
Other operating costs and expenses | 40 | 83 | 123 | ||||||||||||||
Total expenses | 269 | 320 | 337 | ||||||||||||||
Income (loss) from continuing operations, before income taxes | (911) | (1,872) | 2,118 | ||||||||||||||
Income tax (expense) benefit | 263 | 108 | (263) | ||||||||||||||
Net income (loss) attributable to Holdings | (648) | (1,764) | 1,855 | ||||||||||||||
Less: Preferred stock dividends | 53 | — | — | ||||||||||||||
Net income (loss) available to Holdings' common shareholders | (701) | (1,764) | 1,855 | ||||||||||||||
Other comprehensive income (loss) | 3,019 | 2,252 | (1,192) | ||||||||||||||
Total comprehensive income (loss) attributable to Holdings | $ | 2,318 | $ | 488 | $ | 663 | |||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions)
|
|||||||||||||||||
Net income (loss) attributable to Holdings | $ | (648) | $ | (1,764) | $ | 1,855 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Equity in net (earnings) loss of subsidiaries | 668 | 1,592 | (2,434) | ||||||||||||||
Non-cash long term incentive compensation expense | 27 | 69 | — | ||||||||||||||
Amortization and depreciation | 40 | 33 | — | ||||||||||||||
Equity (income) loss limited partnerships | (8) | 1 | — | ||||||||||||||
Changes in: | |||||||||||||||||
Current and deferred taxes | (250) | 202 | 106 | ||||||||||||||
Dividends from subsidiaries | 2,877 | 1,341 | 1,838 | ||||||||||||||
Other, net | (135) | (76) | (264) | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 2,571 | $ | 1,398 | $ | 1,101 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||
Proceeds from the sale/maturity/prepayment of: | |||||||||||||||||
Fixed maturities, available-for-sale | $ | 131 | $ | 105 | $ | 18 | |||||||||||
Short-term investments | — | 80 | 1,038 | ||||||||||||||
Payment for the purchase/origination of: | |||||||||||||||||
Fixed maturities, available-for-sale | (1,011) | — | (355) | ||||||||||||||
Short-term investments | — | — | (1,113) | ||||||||||||||
Other | (21) | (14) | (16) | ||||||||||||||
Net issuance on credit facilities to affiliates | (115) | (560) | — | ||||||||||||||
Repayments of loans to affiliates | — | 572 | 1,045 | ||||||||||||||
Issuance of loans to affiliates | — | — | (572) | ||||||||||||||
Increase in cash and cash equivalents from merger of AXA Financial Inc. | — | — | 381 | ||||||||||||||
Increase in cash and cash equivalents from merger of AXA Tech | — | 11 | — | ||||||||||||||
Other, net | — | — | (5) | ||||||||||||||
Net cash provided by (used in) investing activities | $ | (1,016) | $ | 194 | $ | 421 | |||||||||||
Cash flows from financing activities: | |||||||||||||||||
Issuance of preferred stock | $ | 494 | $ | 775 | $ | — | |||||||||||
Issuance of long-term debt | — | — | 4,057 | ||||||||||||||
Repayment of long-term debt | — | (300) | — | ||||||||||||||
Proceeds from loans from affiliates | — | 900 | 800 | ||||||||||||||
Repayments of loans from affiliates | (300) | (300) | (200) | ||||||||||||||
Shareholder dividends paid | (297) | (285) | (157) | ||||||||||||||
Preferred dividends paid | (53) | — | — | ||||||||||||||
Purchase of AllianceBernstein Units | — | — | (1,340) | ||||||||||||||
Purchase of treasury shares | (430) | (1,350) | (648) | ||||||||||||||
Capital Contribution from parent company | — | — | 8 | ||||||||||||||
Capital contribution to subsidiaries | (350) | (86) | (3,679) | ||||||||||||||
Net cash provided by (used in) financing activities | $ | (936) | $ | (646) | $ | (1,159) | |||||||||||
Change in cash and cash equivalents | 619 | 946 | 363 | ||||||||||||||
Cash and cash equivalents, beginning of year | 1,353 | 407 | 44 | ||||||||||||||
Cash and cash equivalents, end of year | $ | 1,972 | $ | 1,353 | $ | 407 | |||||||||||
Non-cash transactions: | |||||||||||||||||
Goodwill and intangible assets | $ | — | $ | — | $ | 1,079 | |||||||||||
Equity Investments | $ | — | $ | — | $ | 8 | |||||||||||
Other assets | $ | — | $ | 4 | $ | 774 | |||||||||||
Settlement of long-term debt | $ | — | $ | — | $ | (349) | |||||||||||
Employee benefit plans | $ | — | $ | — | $ | (1,168) | |||||||||||
Other liabilities | $ | — | $ | (16) | $ | (20) | |||||||||||
Individual Retirement
|
Group Retirement
|
Investment Management and Research
|
Protection Solutions
|
Corporate and Other
|
Total
|
||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||
Deferred policy acquisition costs (3) | $ | 3,178 | $ | 632 | $ | — | $ | 418 | $ | 15 | $ | 4,243 | |||||||||||||||||||||||
Policyholders’ account balances (3) | 30,736 | 12,828 | — | 14,875 | 8,381 | 66,820 | |||||||||||||||||||||||||||||
Future policy benefits and other policyholders' liabilities (3) | 25,212 | 9 | — | 5,031 | 9,629 | 39,881 | |||||||||||||||||||||||||||||
Policy charges and premium revenue | 2,034 | 295 | — | 2,013 | 390 | 4,732 | |||||||||||||||||||||||||||||
Net investment income (loss) (1) | (662) | 642 | — | 1,354 | 421 | 1,755 | |||||||||||||||||||||||||||||
Policyholders’ benefits and interest credited | 3,086 | 305 | — | 2,372 | 785 | 6,548 | |||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 321 | 73 | — | 1,220 | (1) | 1,613 | |||||||||||||||||||||||||||||
All other operating expenses (2) | 724 | 284 | 2,815 | 546 | 978 | 5,347 |
Individual Retirement
|
Group Retirement
|
Investment Management and Research
|
Protection Solutions
|
Corporate and Other
|
Total
|
||||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||||||
Deferred policy acquisition costs (3) | $ | 3,285 | $ | 659 | $ | — | $ | 1,880 | $ | 13 | $ | 5,837 | |||||||||||||||||||||||
Policyholders’ account balances (3) | 26,359 | 12,068 | — | 14,090 | 6,362 | 58,879 | |||||||||||||||||||||||||||||
Future policy benefits and other policyholders' liabilities (3) | 20,401 | 7 | — | 4,156 | 10,071 | 34,635 | |||||||||||||||||||||||||||||
Policy charges and premium revenue | 2,085 | 279 | — | 2,148 | 413 | 4,925 | |||||||||||||||||||||||||||||
Net investment income (loss) (1) | (2,372) | 599 | 61 | 939 | 460 | (313) | |||||||||||||||||||||||||||||
Policyholders’ benefits and interest credited | 2,321 | 304 | — | 2,172 | 851 | 5,648 | |||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 283 | 35 | — | 274 | 5 | 597 | |||||||||||||||||||||||||||||
All other operating expenses (2) | 785 | 318 | 2,709 | 576 | 1,046 | 5,434 |
Individual Retirement
|
Group Retirement
|
Investment Management and Research
|
Protection Solutions
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Corporate and Other
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Total
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(in millions)
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|||||||||||||||||||||||||||||||||||
Deferred policy acquisition costs | $ | 3,180 | $ | 656 | $ | — | $ | 2,716 | $ | 153 | $ | 6,705 | |||||||||||||||||||||||
Policyholders’ account balances | $ | 20,798 | $ | 11,617 | $ | — | $ | 13,989 | $ | 3,519 | $ | 49,923 | |||||||||||||||||||||||
Future policy benefits and other policyholders’ liabilities | $ | 16,149 | $ | 6 | $ | — | $ | 4,564 | $ | 10,358 | $ | 31,077 | |||||||||||||||||||||||
Policy charges and premium revenue | $ | 2,124 | $ | 271 | $ | — | $ | 2,112 | $ | 421 | $ | 4,928 | |||||||||||||||||||||||
Net investment income (loss) (1) | 479 | 552 | 36 | 903 | 473 | 2,443 | |||||||||||||||||||||||||||||
Policyholders’ benefits and interest credited | 556 | 294 | — | 2,261 | 812 | 3,923 | |||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 220 | (8) | — | 162 | (3) | 371 | |||||||||||||||||||||||||||||
All other operating expenses (2) | 763 | 325 | 2,540 | 566 | 1,091 | 5,285 |
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Gross Amount
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Ceded to Other Companies
|
Assumed from Other Companies
|
Net Amount
|
Percentage of Amount Assumed to Net
|
||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Life insurance in-force | $ | 473,514 | $ | 94,231 | $ | 33,098 | $ | 412,381 | 8.0 | % | |||||||||||||||||||
Premiums: | |||||||||||||||||||||||||||||
Life insurance and annuities | $ | 805 | $ | 113 | $ | 213 | $ | 905 | 23.5 | % | |||||||||||||||||||
Accident and health | 124 | 41 | 9 | 92 | 9.8 | % | |||||||||||||||||||||||
Total premiums | $ | 929 | $ | 154 | $ | 222 | $ | 997 | 22.3 | % | |||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Life insurance in-force | $ | 492,780 | $ | 65,427 | $ | 32,365 | $ | 459,718 | 7.0 | % | |||||||||||||||||||
Premiums: | |||||||||||||||||||||||||||||
Life insurance and annuities | $ | 971 | $ | 101 | $ | 211 | $ | 1,081 | 19.5 | % | |||||||||||||||||||
Accident and health | 97 | 40 | 9 | 66 | 13.6 | % | |||||||||||||||||||||||
Total premiums | $ | 1,068 | $ | 141 | $ | 220 | $ | 1,147 | 19.2 | % | |||||||||||||||||||
2018 | |||||||||||||||||||||||||||||
Life insurance in-force | $ | 488,431 | $ | 69,255 | $ | 31,249 | $ | 450,425 | 6.9 | % | |||||||||||||||||||
Premiums: | |||||||||||||||||||||||||||||
Life insurance and annuities | $ | 963 | $ | 100 | $ | 204 | $ | 1,067 | 19.1 | % | |||||||||||||||||||
Accident and health | 49 | 32 | 10 | 27 | 37.0 | % | |||||||||||||||||||||||
Total premiums | $ | 1,012 | $ | 132 | $ | 214 | $ | 1,094 | 19.6 | % |
Plan category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
Weighted-average exercise price of outstanding options, warrants and rights
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
||||||||||||||
(a) | (b) | (c) | |||||||||||||||
Equity compensation plans approved by security holders | |||||||||||||||||
Omnibus Plan | 9,549,625 | (1) | 21.14 | (2) | 23,437,967 | ||||||||||||
Stock Purchase Plan (3) | 6,411,740 | ||||||||||||||||
Equity compensation plans not approved by security holders | — | — | |||||||||||||||
Total | 9,549,625 | 29,849,707 |
Page Number | ||||||||
1. | ||||||||
2. | Financial Statement Schedules: | |||||||
3. |
Account Value (“AV”) | Generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets. | ||||
Alternative investments | Investments in real estate and real estate joint ventures and other limited partnerships. | ||||
Assets under administration (“AUA”) |
Includes non-insurance client assets that are invested in our savings and investment products or serviced by our Equitable Advisors platform. We provide administrative services for these assets and generally record the revenues received as distribution fees.
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Annualized Premium | 100% of first year recurring premiums (up to target) and 10% of excess first year premiums or first year premiums from single premium products. | ||||
Assets under management (“AUM”) | Investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our GAIA portfolio and (iii) the Separate Account assets of our retirement and protection businesses. Total AUM reflects exclusions between segments to avoid double counting. | ||||
Combined RBC Ratio | Calculated as the overall aggregate RBC ratio for the Company’s insurance subsidiaries including capital held for its life insurance and variable annuity liabilities and non-variable annuity insurance liabilities. | ||||
Conditional tail expectation (“CTE”) |
Calculated as the average amount of total assets required to satisfy obligations over the life of the contract or policy in the worst x% of scenarios. Represented as CTE (100 less x). Example: CTE95 represents the worst five percent of scenarios.
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Deferred policy acquisition cost (“DAC”) | Represents the incremental costs related directly to the successful acquisition of new and certain renewal insurance policies and annuity contracts and which have been deferred on the balance sheet as an asset. | ||||
Deferred sales inducements (“DSI”) | Represent amounts that are credited to a policyholder’s account balance that are higher than the expected crediting rates on similar contracts without such an inducement and that are an incentive to purchase a contract and also meet the accounting criteria to be deferred as an asset that is amortized over the life of the contract. | ||||
Dividends Received Deduction (“DRD”) | A tax deduction under U.S. federal income tax law received by a corporation on the dividends it receives from other corporations in which it has an ownership stake. | ||||
Fee-Type Revenue | Revenue from fees and related items, including policy charges and fee income, premiums, investment management and service fees, and other income. | ||||
Gross Premiums | FYP and Renewal premium and deposits. |
Invested assets | Includes fixed maturity securities, equity securities, mortgage loans, policy loans, alternative investments and short-term investments. | ||||
P&C | Property and casualty. | ||||
Premium and deposits | Amounts a policyholder agrees to pay for an insurance policy or annuity contract that may be paid in one or a series of payments as defined by the terms of the policy or contract. | ||||
Protection Solutions Reserves | Equals the aggregate value of Policyholders’ account balances and Future policy benefits for policies in our Protection Solutions segment. | ||||
Reinsurance | Insurance policies purchased by insurers to limit the total loss they would experience from an insurance claim. | ||||
Renewal premium and deposits | Premiums and deposits after the first twelve months of the policy or contract. | ||||
Risk-based capital (“RBC”) | Rules to determine insurance company statutory capital requirements. It is based on rules published by the National Association of Insurance Commissioners (“NAIC”). | ||||
Total adjusted capital (“TAC”) | Primarily consists of capital and surplus, and the asset valuation reserve. | ||||
Value of business acquired (“VOBA”) | Present value of estimated future gross profits from in-force policies of acquired businesses. | ||||
Product Terms | |||||
401(k) | A tax-deferred retirement savings plan sponsored by an employer. 401(k) refers to the section of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to which these plans are established. | ||||
403(b) | A tax-deferred retirement savings plan available to certain employees of public schools and certain tax-exempt organizations. 403(b) refers to the section of the Code pursuant to which these plans are established. | ||||
457(b) | A deferred compensation plan that is available to governmental and certain non-governmental employers. 457(b) refers to the section of the Code pursuant to which these plans are established. | ||||
Accumulation phase | The phase of a variable annuity contract during which assets accumulate based on the policyholder’s lump sum or periodic deposits and reinvested interest, capital gains and dividends that are generally tax-deferred. | ||||
Affluent | Refers to individuals with $250,000 to $999,999 of investable assets. | ||||
Annuitant | The person who receives annuity payments or the person whose life expectancy determines the amount of variable annuity payments upon annuitization of an annuity to be paid for life. | ||||
Annuitization | The process of converting an annuity investment into a series of periodic income payments, generally for life. |
Benefit base | A notional amount (not actual cash value) used to calculate the owner’s guaranteed benefits within an annuity contract. The death benefit and living benefit within the same contract may not have the same benefit base. | ||||
Cash surrender value | The amount an insurance company pays (minus any surrender charge) to the policyholder when the contract or policy is voluntarily terminated prematurely. | ||||
Deferred annuity | An annuity purchased with premiums paid either over a period of years or as a lump sum, for which savings accumulate prior to annuitization or surrender, and upon annuitization, such savings are exchanged for either a future lump sum or periodic payments for a specified length of time or for a lifetime. | ||||
Dollar-for-dollar withdrawal | A method of calculating the reduction of a variable annuity benefit base after a withdrawal in which the benefit is reduced by one dollar for every dollar withdrawn. | ||||
Fixed annuity | An annuity that guarantees a set annual rate of return with interest at rates we determine, subject to specified minimums. Credited interest rates are guaranteed not to change for certain limited periods of time. | ||||
Fixed Rate GMxB | Guarantees on our individual variable annuity products that are based on a rate that is fixed at issue. | ||||
Floating Rate GMxB | Guarantees on our individual variable annuity products that are based on a rate that varies with a specified index rate, subject to a cap and floor. | ||||
Future policy benefits |
Future policy benefits for the annuities business are comprised mainly of liabilities for life-contingent income annuities, and liabilities for the variable annuity guaranteed minimum benefits accounted for as insurance.
Future policy benefits for the life business are comprised mainly of liabilities for traditional life and certain liabilities for universal and variable life insurance contracts (other than the Policyholders’ account balance). |
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General Account Investment Portfolio | The invested assets held in the General Account. | ||||
General Account | The assets held in the general accounts of our insurance companies as well as assets held in our separate accounts on which we bear the investment risk. | ||||
GMxB | A general reference to all forms of variable annuity guaranteed benefits, including guaranteed minimum living benefits, or GMLBs (such as GMIBs, GMWBs and GMABs), and guaranteed minimum death benefits, or GMDBs (inclusive of return of premium death benefit guarantees). | ||||
Guaranteed income benefit (“GIB”) | An optional benefit which provides the policyholder with a guaranteed lifetime annuity based on predetermined annuity purchase rates applied to a GIB benefit base, with annuitization automatically triggered if and when the contract AV falls to zero. |
Guaranteed minimum accumulation benefits (“GMAB”) | An optional benefit (available for an additional cost) which entitles an annuitant to a minimum payment, typically in lump-sum, after a set period of time, typically referred to as the accumulation period. The minimum payment is based on the benefit base, which could be greater than the underlying AV. | ||||
Guaranteed minimum death
benefits (“GMDB”) |
An optional benefit (available for an additional cost) that guarantees an annuitant’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying AV, upon the death of the annuitant. | ||||
Guaranteed minimum income benefits (“GMIB”) | An optional benefit (available for an additional cost) where an annuitant is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the underlying AV. | ||||
Guaranteed minimum living
benefits (“GMLB”) |
A reference to all forms of guaranteed minimum living benefits, including GMIBs, GMWBs and GMABs (does not include GMDBs). | ||||
Guaranteed minimum withdrawal benefits (“GMWB”) | An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for which cumulative payments to the annuitant could be greater than the underlying AV. | ||||
Guaranteed Universal Life (“GUL”) | A universal life insurance offering with a lifetime no lapse guarantee rider, otherwise known as a guaranteed UL policy. With a GUL policy, the premiums are guaranteed to last the life of the policy. | ||||
Guaranteed withdrawal benefit for life (“GWBL”) | An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for the duration of the policyholder’s life, regardless of account performance. | ||||
High net worth | Refers to individuals with $1,000,000 or more of investable assets. | ||||
Index-linked annuities | An annuity that provides for asset accumulation and asset distribution needs with an ability to share in the upside from certain financial markets such as equity indices, or an interest rate benchmark. With an index-linked annuity, the policyholder’s AV can grow or decline due to various external financial market indices performance. | ||||
Indexed Universal Life (“IUL”) | A permanent life insurance offering built on a universal life insurance framework that uses an equity-linked approach for generating policy investment returns. | ||||
Living benefits | Optional benefits (available at an additional cost) that guarantee that the policyholder will get back at least his original investment when the money is withdrawn. | ||||
Mortality and expense risk fee (“M&E fee”) | A fee charged by insurance companies to compensate for the risk they take by issuing life insurance and variable annuity contracts. |
Net flows | Net change in customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges. | ||||
Policyholder account balances |
Annuities. Policyholder account balances are held for fixed deferred annuities, the fixed account portion of variable annuities and non-life contingent income annuities. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums.
Life Insurance Policies. Policyholder account balances are held for retained asset accounts, universal life policies and the fixed account of universal variable life insurance policies. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums.
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Return of premium (“ROP”) death benefit | This death benefit pays the greater of the account value at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the M&E fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit. | ||||
Rider | An optional feature or benefit that a policyholder can purchase at an additional cost. | ||||
Roll-up rate | The guaranteed percentage that the benefit base increases by each year. | ||||
Separate Account | Refers to the separate account investment assets of our insurance subsidiaries excluding the assets held in those separate accounts on which we bear the investment risk. | ||||
Surrender charge | A fee paid by a contract owner for the early withdrawal of an amount that exceeds a specific percentage or for cancellation of the contract within a specified amount of time after purchase. |
Surrender rate | Represents annualized surrenders and withdrawals as a percentage of average AV. | ||||
Universal life (“UL”) products | Life insurance products that provide a death benefit in return for payment of specified annual policy charges that are generally related to specific costs, which may change over time. To the extent that the policyholder chooses to pay more than the charges required in any given year to keep the policy in-force, the excess premium will be placed into the AV of the policy and credited with a stated interest rate on a monthly basis. | ||||
Variable annuity | A type of annuity that offers guaranteed periodic payments for a defined period of time or for life and gives purchasers the ability to invest in various markets though the underlying investment options, which may result in potentially higher, but variable, returns. | ||||
Variable Universal Life (“VUL”) | Universal life products where the excess amount paid over policy charges can be directed by the policyholder into a variety of Separate Account investment options. In the Separate Account investment options, the policyholder bears the entire risk and returns of the investment results. | ||||
Whole Life (“WL”) | A life insurance policy that is guaranteed to remain in-force for the policyholder’s lifetime, provided the required premiums are paid. |
Exhibit Number | Exhibit Description | |||||||
Amended and Restated Certificate of Incorporation of AXA Equitable Holdings, Inc. (incorporated by reference to Exhibit 3.1 to our Form 10-Q for the quarterly period ending March 31, 2018, as filed on June 20, 2018 (the “Q-1 2018 Form 10-Q”)). | ||||||||
Certificate of Amendment of Certificate of Incorporation, effective January 13, 2020 (incorporated by reference to Exhibit 3.1 to our Form 8-K, filed on January 10, 2010). | ||||||||
Fourth Amended and Restated By-laws of Equitable Holdings, Inc. (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on February 17, 2021).
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Certificate of Designations with respect to the Series A Preferred Stock of the Company, dated November 21, 2019 (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on November 21, 2019). | ||||||||
Certificate of Designations with respect to the Series B Preferred Stock of the Company, filed August 7, 2020 (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on August 11, 2020). | ||||||||
Certificate of Designation with respect to the Series C Preferred Stock of the Company, dated January 6, 2021 (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on January 6, 2021). | ||||||||
Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1 of AXA Equitable Holdings, Inc., File No. 333-221521 (the “IPO Form S-1”)). | ||||||||
Indenture, dated as of December 1, 1993 from AXA Financial, Inc. to The Bank of NY Mellon Trust Company, N.A. (formerly known as Chemical Bank), as Trustee (incorporated by reference to Exhibit 4.2 to the IPO Form S-1). | ||||||||
Fourth Supplemental Indenture, dated April 1, 1998, from AXA Financial, Inc. to The Chase Manhattan Bank (formerly known as Chemical Bank), as Trustee, together with forms of global Senior Note and global Senior Indenture (incorporated by reference to Exhibit 4.3 to the IPO Form S-1). | ||||||||
Fifth Supplemental Indenture, dated October 1, 2018, among AXA Equitable Holdings, Inc. AXA Financial, Inc. and The Bank of NY Mellon Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K, filed on October 1, 2018). | ||||||||
Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.4 to the IPO Form S-1). | ||||||||
First Supplemental Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.5 to the IPO Form S-1). | ||||||||
Second Supplemental Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.6 to the IPO Form S-1). | ||||||||
Third Supplemental Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.7 to the IPO Form S-1). | ||||||||
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. | ||||||||
Shareholder Agreement, dated as of May 4, 2018, between AXA S.A. and AXA Equitable Holdings, Inc. (incorporated by reference to Exhibit 10.1 to the Q-1 2018 Form 10-Q). | ||||||||
Registration Rights Agreement, dated as of May 4, 2018, between AXA S.A. and AXA Equitable Holdings, Inc. (incorporated by reference to Exhibit 10.2 to the Q-1 2018 Form 10-Q). | ||||||||
Tax Sharing Agreement, dated March 28, 2018, between AXA S.A., AXA Investment Managers S.A. and AXA Equitable Holdings, Inc. (incorporated by reference to Exhibit 10.3 to the IPO Form S-1). | ||||||||
Transitional Services Agreement, dated as of May 4, 2018, between AXA S.A. and AXA Equitable Holdings, Inc. (incorporated by reference to Exhibit 10.4 to the Q-1 2018 Form 10-Q). | ||||||||
Master Agreement, dated as of April 10, 2013, by and among AXA Equitable Financial Services, LLC, AXA Financial, Inc. and Protective Life Insurance Company (incorporated by reference to Exhibit 10.5 to the IPO Form S-1). | ||||||||
Employment Agreement, dated as of March 9, 2011, by and between AXA Financial, Inc. and Mark Pearson (incorporated by reference to Exhibit 10.7 to the IPO Form S-1). | ||||||||
Letter Agreement, dated February 19, 2013, between AXA Financial, Inc., AXA Equitable Life Insurance Company and Mark Pearson (incorporated by reference to Exhibit 10.7.1 to the IPO Form S-1). |
Letter Agreement, dated May 14, 2015, between AXA Financial, Inc., AXA Equitable Life Insurance Company and Mark Pearson (incorporated by reference to Exhibit 10.7.2 to the IPO Form S-1). | ||||||||
Letter Agreement, dated February 27, 2019, between AXA Equitable Holdings, Inc., AXA Equitable Life Insurance Company and Mark Pearson. (incorporated by reference to Exhibit 10.7.3 to our Form 10-K for the fiscal year ended December 31, 2018, as filed March 8, 2019 (the “2018 Form 10-K”)). | ||||||||
Waiver Agreement, dated May 9, 2019, to Mark Pearson’s Employment Agreement dated March 9, 2011 (incorporated by reference to Exhibit 10.1 to AXA Equitable Holdings, Inc.’s Form 10-Q for the quarterly period ending June 30, 2019, as filed on August 9, 2019). | ||||||||
Letter Agreement, dated December 18, 2019, between AXA Equitable Holdings, Inc., AXA Equitable Life Insurance Company and Mark Pearson (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on December 19, 2019). | ||||||||
Director Indemnification Agreement, dated May 4, 2018, between AXA Equitable Holdings, Inc. and each of its directors (incorporated by reference to Exhibit 10.6 to the Q-1 2018 Form 10-Q). | ||||||||
Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Citigroup Global Markets Inc., as Dealer (incorporated by reference to Exhibit 10.08 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016). | ||||||||
Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Credit Suisse Securities (USA) LLC, as Dealer (incorporated by reference to Exhibit 10.09 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016). | ||||||||
Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer (incorporated by reference to Exhibit 10.10 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016). | ||||||||
Amended and Restated Revolving Credit Agreement, dated as of September 27, 2018 (incorporated by reference to Exhibit 10.01 to AB Holding’s Form 8-K, as filed October 3, 2018).
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Profit Sharing Plan for Employees of AllianceBernstein L.P., as amended and restated as of January 1, 2015 and as further amended as of January 1, 2017 (incorporated by reference to Exhibit 10.05 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016). | |||||||
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Amendment to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of October 20, 2016 and effective as of January 1, 2017 (incorporated by reference to Exhibit 10.06 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2016, as filed February 14, 2017). | |||||||
Amendment to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of April 1, 2018 (incorporated by reference to Exhibit 10.12 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019). | ||||||||
Employment Agreement, dated as of April 28, 2017, among Seth Bernstein, AllianceBernstein Holding L.P., AllianceBernstein L.P. and AllianceBernstein Corporation (incorporated by reference to Exhibit 10.3 to AB Holding’s Form 8-K as filed May 1, 2017). | ||||||||
Amendment to Seth P. Bernstein’s Employment Agreement (incorporated by reference to Exhibit 10.01 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019). | ||||||||
Amendment No. 2 to Seth P. Bernstein’s Employment Agreement (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on December 19, 2019). | ||||||||
AB 2017 Long Term Incentive Plan (incorporated by reference to Exhibit 10.06 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2017, as filed February 13, 2018). | ||||||||
Revolving Credit Agreement by and among AXA Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto, the banks party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent. (incorporated by reference to Exhibit 10.22 to the IPO Form S-1). | ||||||||
Form of Performance Share Award Agreement under the 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.23 to the Q-1 2018 Form 10-Q). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Natixis, New York Branch (incorporated by reference to Exhibit 10.25 to the IPO Form S-1 ). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and HSBC Bank USA, National Association (incorporated by reference to Exhibit 10.26 to the IPO Form S-1). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Citibank Europe PLC (incorporated by reference to Exhibit 10.27 to the IPO Form S-1). |
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Credit Agricole Corporate and Investment Bank (incorporated by reference to Exhibit 10.28 to the IPO Form S-1). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Barclays Bank PLC (incorporated by reference to Exhibit 10.29 to the IPO Form S-1). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and JPMorgan Chase Bank, N.A (incorporated by reference to Exhibit 10.30 to the IPO Form S-1). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Landesbank Hessen-Thüringen Girozentrale, acting through its New York Branch (incorporated by reference to Exhibit 10.31 to the IPO Form S-1). | ||||||||
Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Commerzbank AG, New York Branch (incorporated by reference to Exhibit 10.32 to the IPO Form S-1). | ||||||||
Letter Agreement between AXA Equitable Life Insurance Company and George Stansfield, dated June 30, 2015 (incorporated by reference to Exhibit 10.34 to the IPO Form S-1). | ||||||||
AXA Stock Option Plan for AXA Financial Employees and Associates (incorporated by reference to Exhibit 10.36 to the IPO Form S-1). | ||||||||
Form of Option Grant Letter under the AXA Stock Option Plan for AXA Financial Employees and Associates (Mark Pearson) (incorporated by reference to Exhibit 10.37 to the IPO Form S-1). | ||||||||
Form of Option Grant Letter under the AXA Stock Option Plan for AXA Financial Employees and Associates (Executive Officers) (incorporated by reference to Exhibit 10.38 to the IPO Form S-1). | ||||||||
Form of Option Agreement under the AXA Stock Option Plan for AXA Financial Employees and Associates (incorporated by reference to Exhibit 10.39 to the IPO Form S-1). | ||||||||
Rules of 2016 AXA International Performance Share Plan and Addendum for AXA Financial Participants (incorporated by reference to Exhibit 10.42 to the IPO Form S-1). | ||||||||
Rules of AXA 2017 International Performance Shares Plan and Addendum for AXA Financial Participants (incorporated by reference to Exhibit 10.43 to the IPO Form S-1). | ||||||||
Equitable Severance Benefit Plan (incorporated by reference to Exhibit 10.45 to the IPO Form S-1). | ||||||||
Equitable Supplemental Severance Plan for Executives (incorporated by reference to Exhibit 10.25 to the Q-1 2018 Form 10-Q). | ||||||||
Equitable Supplemental Severance Plan for Executives, as amended and restated as of August 9, 2019 (incorporated by reference to Exhibit 10.2 to our Form 10-Q for the quarterly period ending June 30, 2019, as filed on August 9, 2019). | ||||||||
Equitable Executive Survivor Benefits Plan (incorporated by reference to Exhibit 10.47 to the IPO Form S-1). | ||||||||
Amended and Restated Variable Deferred Compensation Plan for Executives (incorporated by reference to Exhibit 10.48 to the IPO Form S-1). | ||||||||
Amended and Restated Equitable Post-2004 Variable Deferred Compensation Plan for Executives (incorporated by reference to Exhibit 10.49 to the IPO Form S-1). | ||||||||
Amendment to the Equitable Post-2004 Variable Deferred Compensation Plan for Executives, effective as of January 1, 2019 (incorporated by reference to Exhibit 10.69 to the 2018 Form 10-K). | ||||||||
Equitable Excess Retirement Plan (incorporated by reference to Exhibit 10.50 to the IPO Form S-1). | ||||||||
Equitable Holdings, Inc. Equity Plan for Directors (incorporated by reference to Exhibit 10.51 to the IPO Form S-1). | ||||||||
Form of Stock Option Agreement under the Equitable Holdings, Inc. Equity Plan for Directors (incorporated by reference to Exhibit 10.52 to the IPO Form S-1). | ||||||||
Form of Restricted Stock Agreement under the Equitable Holdings, Inc. Equity Plan for Directors (incorporated by reference to Exhibit 10.53 to the IPO Form S-1). | ||||||||
Equitable Post-2004 Variable Deferred Compensation Plan for Directors (incorporated by reference to Exhibit 10.54 to the IPO Form S-1). | ||||||||
Equitable Holdings, Inc. Charitable Award Program for Directors (incorporated by reference to Exhibit 10.55 to the IPO Form S-1). | ||||||||
Equitable Holdings, Inc. Short-Term Incentive Compensation Plan (incorporated by reference to Exhibit 10.56 to the IPO Form S-1). | ||||||||
AXA Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.57 to the IPO Form S-1). |
Form of Transaction Incentive Award Agreement under the 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.21 to the Q-1 2018 Form 10-Q). | ||||||||
Form of Restricted Stock Unit Award Agreement under the 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.22 to the Q-1 2018 Form 10-Q). | ||||||||
Form of Stock Option Award Agreement under the 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.24 to the Q-1 2018 Form 10-Q). | ||||||||
Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (incorporated by reference to Appendix B of the Equitable Holdings, Inc. DEF 14A, as filed on April 8, 2020).
|
||||||||
Equitable Holdings, Inc. Stock Purchase Plan (incorporated by reference to Exhibit 10.62 to the 2018 Form 10-K). | ||||||||
Form of Performance Shares Award Agreement under the 2018 Omnibus Incentive Plan, effective as of February 14, 2019 (incorporated by reference to Exhibit 10.70 to the 2018 Form 10-K). | ||||||||
Form of Restricted Stock Unit Award Agreement under the 2018 Omnibus Incentive Plan, effective as of February 14, 2019 (incorporated by reference to Exhibit 10.71 to the 2018 Form 10-K). | ||||||||
Form of Stock Option Award Agreement under the 2018 Omnibus Incentive Plan, effective as of February 14, 2019 (incorporated by reference to Exhibit 10.70 to the 2018 Form 10-K). | ||||||||
Form of Performance Shares Award Agreement under the 2019 Omnibus Incentive Plan. | ||||||||
Form of Restricted Stock Unit Award Agreement under the 2019 Omnibus Incentive Plan. | ||||||||
Form of Stock Option Award Agreement under the 2019 Omnibus Incentive Plan. | ||||||||
AllianceBernstein 2020 Incentive Compensation Award Program (incorporated by reference to Exhibit 10.01 of AB Holding’s Form 10-K, as filed February 11, 2021 (the “AB 2020 Form 10-K”). | ||||||||
AllianceBernstein 2020 Deferred Cash Compensation Program (incorporated by reference to Exhibit 10.02 of the AB 2020 Form 10-K). | ||||||||
Form of Award Agreement, dated as of December 31, 2020, under Incentive Compensation Award Program, Deferred Cash Compensation Program and AB 2017 Long Term Incentive Plan (incorporated by reference to Exhibit 10.03 of the AB 2020 Form 10-K). | ||||||||
Form of Award Agreement under AB 2017 Long Term Incentive Plan relating to equity compensation awards to Independent Directors (incorporated by reference to Exhibit 10.04 of the AB 2020 Form 10-K). | ||||||||
AllianceBernstein Change in Control Plan for Executive Officers (incorporated by reference to Exhibit 99.01 to AB Holding’s Form 8-K, as filed December 14, 2020). | ||||||||
Master Transaction Agreement, dated as of October 27, 2020, among Equitable Holdings, Inc., Venerable Insurance and Annuity Company and solely with respect to Article XIV, Venerable Holdings, Inc. | ||||||||
List of Subsidiaries of Equitable Holdings, Inc. | ||||||||
Consent of PricewaterhouseCoopers LLP. | ||||||||
Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of the Registrant’s Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of the Registrant’s Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibits 101) | |||||||
# | Filed herewith. |
† | Identifies each management contract or compensatory plan or arrangement. |
EQUITABLE HOLDINGS, INC. | ||||||||
By: | /s/ Mark Pearson | |||||||
Name: Mark Pearson | ||||||||
Title: President and Chief Executive Officer |
Signature
|
Title
|
|||||||
/s/ Mark Pearson |
President and Chief Executive Officer and Director
(Principal Executive Officer) |
|||||||
Mark Pearson | ||||||||
/s/ Anders B. Malmström |
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
|||||||
Anders B. Malmström | ||||||||
/s/ William Eckert |
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer) |
|||||||
William Eckert | ||||||||
/s/ Francis Hondal | Director | |||||||
Francis Hondal | ||||||||
/s/ Daniel G. Kaye | Director | |||||||
Daniel G. Kaye | ||||||||
/s/ Joan M. Lamm-Tennant | Director | |||||||
Joan M. Lamm-Tennant | ||||||||
/s/ Kristi A. Matus | Director | |||||||
Kristi A. Matus | ||||||||
/s/ Ramon de Oliveira | Chairman of the Board | |||||||
Ramon de Oliveira | ||||||||
/s/ Bertram L. Scott | Director | |||||||
Bertram L. Scott | ||||||||
/s/ George H. Stansfield | Director | |||||||
George H. Stansfield | ||||||||
/s/ Charles G. T. Stonehill | Director | |||||||
Charles G. T. Stonehill |
• | to cast one vote for each share held of record on all matters submitted to a vote of the stockholders; |
• | to receive, on a pro rata basis, dividends and distributions, if any, that Holdings’ Board may declare out of legally available funds, subject to preferences that may be applicable to preferred stock, if any, then outstanding; and |
• | upon Holdings’ liquidation, dissolution or winding up, to share equally and ratably in any assets remaining after the payment of all debt and other liabilities, subject to the prior rights, if any, of holders of any outstanding shares of preferred stock. |
• | liability and indemnification of directors; |
• | corporate opportunities; |
• | elimination of stockholders action by written consent; |
• | prohibition on the rights of stockholders to call a special meeting; and |
• | required approval of the holders of at least 66 2/3% of the outstanding shares of Holdings’ common stock to amend Holdings’ amended and restated by-laws and certain provisions of Holdings’ amended and restated certificate of incorporation. |
• | any breach of the director’s duty of loyalty; |
• | acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law; |
• | unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions; or |
• | any transaction from which the director derives an improper personal benefit. |
If the Company’s Non-GAAP Operating ROE for the applicable year equals…. | The Initial ROE Performance Factor for the applicable year will equal…. | ||||
Maximum Amount (or greater) | 200% | ||||
Target Amount | 100% | ||||
Threshold Amount | 25% | ||||
Below Threshold | 0% |
If the Company’s Total Shareholder Return Relative to its Peers for the Performance Period is … | The TSR Performance Factor will equal… | ||||
Maximum Amount – 87.5th percentile or greater
|
200% | ||||
Target Amount – 50th percentile
|
100% | ||||
Threshold Amount – 30th percentile
|
25% | ||||
Below Threshold | 0% |
ARTICLE I DEFINITIONS | |||||
Section 1.01 Certain Defined Terms
|
|||||
ARTICLE II PURCHASE AND SALE | |||||
Section 2.01 Purchase and Sale of the Shares
|
|||||
Section 2.02 Purchase Price
|
|||||
Section 2.03 Estimated Closing Statement
|
|||||
Section 2.04 Interim Post-Closing Adjustment
|
|||||
Section 2.05 Post-Closing Adjustment
|
|||||
Section 2.06 Realized Rate Increase Adjustment | |||||
Section 2.07 Tax Treatment of Adjustments
|
|||||
ARTICLE III THE CLOSING | |||||
Section 3.01 Closing
|
|||||
Section 3.02 Closing Transaction
|
|||||
Section 3.03 Closing Payment
|
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Section 3.04 Withholding
|
|||||
Section 3.05 The Buyer’s Additional Closing Date Deliveries
|
|||||
Section 3.06 The Seller’s Additional Closing Date Deliveries
|
|||||
ARTICLE IV REPRESENTATIONS AND WARRANTIES REGARDING THE SELLER | |||||
Section 4.01 Incorporation and Authority of the Seller
|
|||||
Section 4.02 No Conflict
|
|||||
Section 4.03 Consents and Approvals
|
|||||
Section 4.04 No Inducement or Reliance; Independent Assessment
|
|||||
ARTICLE V REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY, THE COMPANY SUBSIDIARY AND THE BUSINESS | |||||
Section 5.01 Incorporation of the Company
|
|||||
Section 5.02 Capital Structure of the Company; Ownership and Transfer of the Shares
|
|||||
Section 5.03 Financial Statements; Absence of Undisclosed Liabilities
|
|||||
Section 5.04 Absence of Certain Changes | |||||
Section 5.05 Absence of Litigation
|
|||||
Section 5.06 Compliance with Laws
|
|||||
Section 5.07 Governmental Licenses and Permits
|
|||||
Section 5.08 Intellectual Property
|
|||||
Section 5.09 Data Security
|
|||||
Section 5.10 Material Contracts
|
|||||
Section 5.11 Affiliate Transactions
|
|||||
Section 5.12 Employees and Labor Matters
|
|||||
Section 5.13 Employee Benefit Plans and Related Matters
|
|||||
Section 5.14 Insurance Regulatory Matters
|
|||||
Section 5.15 Reinsurance Contracts
|
|||||
Section 5.16 Insurance
|
Section 5.17 Property
|
|||||
Section 5.18 Taxes
|
|||||
Section 5.19 Tax Treatment of Insurance Contracts
|
|||||
Section 5.20 Actuarial Appraisals and Factual Information
|
|||||
Section 5.21 Third Party Administrators
|
|||||
Section 5.22 Brokers
|
|||||
Section 5.23 Sufficiency of Assets
|
|||||
Section 5.24 Investment Assets
|
|||||
Section 5.25 Separate Accounts
|
|||||
Section 5.26 Unclaimed Property
|
|||||
Section 5.27 Milliman CTE Model
|
|||||
Section 5.28 NO OTHER REPRESENTATIONS OR WARRANTIES
|
|||||
ARTICLE VI REPRESENTATIONS AND WARRANTIES REGARDING THE BUYER | |||||
Section 6.01 Incorporation and Authority of the Buyer
|
|||||
Section 6.02 No Conflict
|
|||||
Section 6.03 Consents and Approvals
|
|||||
Section 6.04 Absence of Litigation
|
|||||
Section 6.05 Securities Matters
|
|||||
Section 6.06 Financial Ability
|
|||||
Section 6.07 Solvency
|
|||||
Section 6.08 Investigation
|
|||||
Section 6.09 Compliance with Law; Governmental Licenses and Permits; Insurance Regulatory Matters
|
|||||
Section 6.10 Financial Statements
|
|||||
Section 6.11 Brokers
|
|||||
Section 6.12 No Inducement or Reliance; Independent Assessment
|
|||||
Section 6.13 NO OTHER REPRESENTATIONS OR WARRANTIES
|
|||||
ARTICLE VII ACTIONS PRIOR TO THE CLOSING DATE | |||||
Section 7.01 Conduct of Business Prior to the Closing
|
|||||
Section 7.02 Access to Information
|
|||||
Section 7.03 Reasonable Best Efforts | |||||
Section 7.04 Guarantees
|
|||||
Section 7.05 Consents | |||||
Section 7.06 Intercompany Arrangements
|
|||||
Section 7.07 Representations & Warranties Insurance
|
|||||
Section 7.08 Intercompany Obligations
|
|||||
Section 7.09 Derivative Selection and Sign-to-Close Protocol
|
|||||
Section 7.10 Recapture
|
|||||
ARTICLE VIII ADDITIONAL AGREEMENTS | |||||
Section 8.01 Access to Information
|
|||||
Section 8.02 Books and Records
|
|||||
Section 8.03 Confidentiality
|
Section 8.04 Non-Solicitation
|
|||||
Section 8.05 Insurance
|
|||||
Section 8.06 Seller Names and Marks
|
|||||
Section 8.07 D&O Liabilities
|
|||||
Section 8.08 Privilege Preservation
|
|||||
Section 8.09 Release
|
|||||
Section 8.10 Closing Reports
|
|||||
Section 8.11 Separation and Migration Plan
|
|||||
Section 8.12 Further Action
|
|||||
ARTICLE IX EMPLOYEE MATTERS | |||||
Section 9.01 Offers of Employment | |||||
Section 9.02 Compensation and Benefit Continuation | |||||
Section 9.03 Severance Obligations | |||||
Section 9.04 Credit for Service; Preexisting Conditions; Exclusions and Waiting Periods | |||||
Section 9.05 Certain Employee Benefit Plan Matters | |||||
Section 9.06 WARN | |||||
Section 9.07 Employee Communications | |||||
Section 9.08 No Modification; No Third Party Beneficiaries | |||||
ARTICLE X TAX MATTERS | |||||
Section 10.01 Indemnification for Taxes
|
|||||
Section 10.02 Tax Returns
|
|||||
Section 10.03 Tax Refunds
|
|||||
Section 10.04 Transfer Taxes
|
|||||
Section 10.05 Cooperation
|
|||||
Section 10.06 Tax Sharing Agreements
|
|||||
Section 10.07 Section 338 Election; Purchase Price Allocation
|
|||||
Section 10.08 Other Tax Matters
|
|||||
ARTICLE XI CONDITIONS TO CLOSING AND RELATED MATTERS | |||||
Section 11.01 Conditions to Obligations of the Seller
|
|||||
Section 11.02 Conditions to Obligations of the Buyer
|
|||||
Section 11.03 Frustration of Closing Condition
|
|||||
ARTICLE XII TERMINATION AND WAIVER | |||||
Section 12.01 Termination
|
|||||
Section 12.02 Notice of Termination
|
|||||
Section 12.03 Effect of Termination
|
|||||
ARTICLE XIII INDEMNIFICATION; SURVIVAL | |||||
Section 13.01 Survival of Representations, Warranties and Covenants | |||||
Section 13.02 Indemnification | |||||
Section 13.03 Certain Limitations | |||||
Section 13.04 Definitions | |||||
Section 13.05 Procedures for Third Party Claims
|
Section 13.06 Direct Claims
|
|||||
Section 13.07 Sole Remedy
|
|||||
Section 13.08 Product Tax Claims
|
|||||
Section 13.09 Treatment of Indemnity Payment
|
|||||
ARTICLE XIV GENERAL PROVISIONS | |||||
Section 14.01 Expenses
|
|||||
Section 14.02 Notices
|
|||||
Section 14.03 Public Announcements
|
|||||
Section 14.04 Severability
|
|||||
Section 14.05 Entire Agreement
|
|||||
Section 14.06 Assignment
|
|||||
Section 14.07 No Third Party Beneficiaries
|
|||||
Section 14.08 Amendment
|
|||||
Section 14.09 Schedules
|
|||||
Section 14.10 Submission to Jurisdiction
|
|||||
Section 14.11 Governing Law
|
|||||
Section 14.12 Waiver of Jury Trial
|
|||||
Section 14.13 Specific Performance
|
|||||
Section 14.14 Waivers
|
|||||
Section 14.15 Rules of Construction
|
|||||
Section 14.16 Reserves
|
|||||
Section 14.17 Counterparts
|
|||||
Section 14.18 Conflict Between Transaction Agreements
|
|||||
Section 14.19 Prevailing Party
|
|||||
Section 14.20 Guarantee
|
. Capitalized terms used in this Agreement have the meanings specified or referred to in this Section 1.01.
|
Term | Section | ||||
Actuarial Appraisals | Section 5.20(a)(ii) | ||||
Adjustment Report | Section 2.05(f)(iv) | ||||
Agreement | Preamble | ||||
Asset List | Section 2.03(a) | ||||
Base Purchase Price | Section 2.02 | ||||
Broader Block Appraisal | Section 5.20(a) | ||||
Buyer | Preamble | ||||
Buyer Benefit Plans | Section 9.04 | ||||
Buyer Employee | Section 8.04(a) | ||||
Buyer Financial Statements | Section 6.10(a) | ||||
Buyer Indemnified Persons | Section 13.02(a) | ||||
Buyer Interim Required Balance Report | Section 8.10(c) | ||||
Buyer Obligations | Section 14.20 | ||||
Buyer Severance Plan | Section 9.03 | ||||
Claim Notice | Section 13.05(a) | ||||
Closing | Section 3.01 | ||||
Closing Date | Section 3.01 | ||||
Company | Preliminary Statements | ||||
Company Actuarial Appraisal | Section 5.20(a)(i) | ||||
Company Financial Statements | Section 5.03(a) | ||||
Company Subsidiary Financial Statements | Section 5.03(b) | ||||
Confidentiality Agreements | Section 8.03(a) | ||||
Continuing Employee | Section 9.01 | ||||
Control Investor | Section 7.03(a) | ||||
Covered Period | Section 9.02 | ||||
Deductible | Section 13.03(a) | ||||
Delaware Form A | Section 7.03(c)(i) | ||||
Direct Product Tax Claim | Section 13.08(a) | ||||
Dispute Notice | Section 2.05(f)(i) | ||||
Effective Time | Section 3.01 | ||||
ELIC | Preliminary Statements | ||||
ELIC Financial Statements | Section 5.03(c) | ||||
ERISA Separate Accounts | Section 5.25(a) | ||||
Estimated Closing Date Adjusted Book Value | Section 2.03(a) | ||||
Estimated Closing Statement | Section 2.03(a) |
Estimated Initial Premium | Section 2.03(a)(ii) | ||||
Estimated Initial Required Balance | Section 2.03(a)(v) | ||||
Final Allocation Schedule | Section 10.07(c) | ||||
Final Closing Date Adjusted Book Value | Section 2.05(g) | ||||
Final Closing Statement | Section 2.05(g) | ||||
Final Initial Premium | Section 2.05(g) | ||||
Final Initial Required Balance | Section 2.05(g) | ||||
Final Transferred Asset Value | Section 2.05(g) | ||||
Financial Statements | Section 5.03(c) | ||||
Guarantor | Preamble | ||||
Guarantor Financial Statements | Section 6.10(a) | ||||
Guaranty and Indemnity Obligation Agreements | Section 7.04 | ||||
IMA Letter Agreement | Preliminary Statements | ||||
Indemnifiable Losses | Section 13.04(a) | ||||
Indemnitee | Section 13.04(b) | ||||
Indemnitor | Section 13.04(c) | ||||
Indemnity Payment | Section 13.04(d) | ||||
Independent Accounting Firm | Section 2.05(f)(iii) | ||||
Independent Actuary | Section 2.05(f)(iii) | ||||
Intercompany Agreements | Section 5.11(a) | ||||
Interim Closing Date Adjusted Book Value | Section 2.04(a) | ||||
Interim Closing Statement | Section 2.04(a) | ||||
Interim Initial Premium | Section 2.04(a) | ||||
Interim Required Balance | Section 2.04(a) | ||||
Interim Transferred Asset Value | Section 2.04(a) | ||||
Interim True-Up Date | Section 2.04(b) | ||||
Investment Management Agreement | Preliminary Statements | ||||
IRS | Section 5.13(a) | ||||
Material Contract | Section 5.10(a) | ||||
Milliman | Section 5.20(a)(i) | ||||
Milliman Sensitivity Grid | Section 2.03(c) | ||||
Non-Active Employees | Section 9.01 | ||||
Offers | Section 9.01 | ||||
Outside Date | Section 12.01(b) | ||||
Party | Preamble | ||||
Payee | Section 2.04(d) | ||||
Payor | Section 2.04(d) | ||||
Permits | Section 5.07(a) | ||||
Permitted or Prescribed Accounting Practice | Section 5.03(d) | ||||
Portfolio Assets | Section 1.01 | ||||
Preliminary Allocation Schedule | Section 10.07(b) |
Proceeding | Section 14.19 | ||||
Purchase Price | Section 2.02 | ||||
R&W Policy | Section 7.07 | ||||
Rate Increase | Section 2.06(b) | ||||
Rating Threshold | Section 5.10(a)(xvii) | ||||
Realized Rate Increase Adjustment | Section 2.06(b) | ||||
Recapture | Section 7.10 | ||||
Recapture and Dissolution Transaction | Section 7.10 | ||||
Registered Intellectual Property | Section 5.08(a) | ||||
Registered Separate Account | Section 5.25(c) | ||||
Reinsurance Agreement | Preliminary Statements | ||||
Reinsurance Contract | Section 5.15(a) | ||||
Reinsured Party | Section 2.06(a) | ||||
Resolution Period | Section 2.05(f)(iii) | ||||
Review Period | Section 2.05(f) | ||||
Section 338(h)(10) Election | Section 10.07(a) | ||||
Seller | Preamble | ||||
Seller Indemnified Persons | Section 13.02(b) | ||||
Seller Interim CTE Report | Section 8.10(a) | ||||
Seller Names and Marks | Section 8.06(a) | ||||
Separate Accounts | Section 5.25(a) | ||||
Share Purchase | Section 2.01 | ||||
Shares | Preliminary Statements | ||||
Solvent | Section 6.07 | ||||
Subject Closing Statement | Section 2.05(e) | ||||
Surplus Note | Preliminary Statements | ||||
Surviving Tax Representations | Section 13.01(a) | ||||
Tax Refund | Section 10.03 | ||||
Third Party Claim | Section 13.04(e) | ||||
Threshold Amount | Section 13.03(a) | ||||
Transfer Taxes | Section 10.04 | ||||
Transferred Asset Value | Section 2.03(a)(iv) | ||||
Transferred Assets | Section 2.03(b) | ||||
Transferred Books and Records | Section 8.02(a) | ||||
Trust Account | Preliminary Statements | ||||
Willkie | Section 8.08 |
. On the terms and subject to the conditions set forth in this Agreement, at the Closing the Seller shall (or shall cause its applicable Subsidiaries to) sell, convey, assign, transfer and deliver to the Buyer, free and clear of all Liens, other than the Liens described in clause (o) of the definition of “Permitted Liens” or arising under any securities Laws, and the Buyer shall purchase, acquire and accept from the Seller (or its applicable Subsidiary), all of the Seller’s (or its applicable Subsidiary’s) right, title and interest in and to the Shares, for the Purchase Price (the “Share Purchase”).
|
. The purchase price (the “Purchase Price”) payable by the Buyer to the Seller for the Shares shall be an amount equal to the sum of (a) one hundred thirty million dollars ($130,000,000) (the “Base Purchase Price”) plus (b) the amount by which the Closing Date Adjusted Book Value exceeds the Reference Date Adjusted Book Value minus (c) the amount by which the Reference Date Adjusted Book Value exceeds the Closing Date Adjusted Book Value minus (d) five hundred ninety-nine thousand, two hundred seventy dollars ($599,270), being the total cost of the R&W Policy. The Purchase Price shall be payable at Closing as set forth below in Section 3.03.
|
. |
. |
. |
. The Parties shall treat (i) any adjustment made pursuant to Section 2.04(b) or Section 2.05(b) or (ii) any Realized Rate Increase Adjustment made pursuant to Section 2.06, as an adjustment to the amount of Purchase Price and a corresponding change in the amount of ADSP (as such term is defined in Treasury Regulations Section 1.338-4) for the assets of the Company in a manner consistent with the adjustment required by Section 10.07(d) to the Final Allocation Schedule except as otherwise required by applicable Law. The Parties shall treat any adjustment made pursuant to Section 2.04(c) or Section 2.05(c) as an adjustment to the amounts paid under the Reinsurance Agreement.
|
. The closing of the purchase and sale of the Shares and of the other transactions contemplated by this Agreement to be then completed (the “Closing”) shall take place at 10:00 a.m., New York City time, at the offices of Willkie Farr & Gallagher LLP, 787 7th Avenue, New York, New York 10019 (or such other place as the Seller and the Buyer may agree in writing), following the satisfaction or waiver of each of the conditions set forth in Section 11.01 and Section 11.02 (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions at the Closing) on (a) the first Business Day of the month following the month in which such conditions are satisfied or waived or (b) if the satisfaction or waiver of such conditions occurs less than five (5) Business Days prior to the first Business Day of such month, on the first Business Day of the second month immediately following the month in which such conditions are satisfied or waived (or, in any case, such other date as mutually agreed by the Seller and the Buyer). The date on which the Closing takes place shall be the “Closing Date.” The transactions contemplated hereby to be completed at the Closing shall be deemed to have been consummated and become effective for all purposes as of 12:01 a.m., New York City time, on the Closing Date (the “Effective Time”).
|
. On the terms and subject to the conditions set forth in this Agreement, at the Closing, (a) Seller (or its applicable Subsidiary) and Buyer shall consummate the Share Purchase in accordance with Section 2.01 and (b) immediately following the Share Purchase, (i) Seller shall cause ELIC and Buyer shall cause the Company to enter into the Reinsurance Agreement and the Trust Agreement, (ii) Seller and Buyer shall direct the Trustee to enter into the Trust Agreement, (iii) the Guarantor will enter into the Guarantee, (iv) Seller shall cause ELIC to transfer to the Trust Account, on behalf of the Company, free and clear of all Liens (other than Permitted Liens or Liens created under the Reinsurance Agreement or the Trust Agreement), the Transferred Assets, (v) Buyer shall or shall cause the Company to transfer to the Trust Account free and clear of all Liens (other than Permitted Liens or Liens created under the Reinsurance Agreement or the Trust Agreement), Investment Assets meeting the requirements of the Reinsurance Agreement that have an aggregate Fair Market Value (as defined in the Reinsurance Agreement) at least equal to the amount by which the Estimated Initial Required Balance exceeds the Estimated Initial Premium and (vi) the parties shall otherwise cause the transactions contemplated thereby to occur on the Closing Date to be consummated.
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. At the Closing, the Buyer shall deliver to the Seller payment, by wire transfer to a bank account designated in writing by the Seller (such designation to be made at least two (2) Business Days before the Closing Date) of immediately available funds in an amount equal to the sum of (a) the Base Purchase Price, plus (b) the amount by which the Estimated Closing Date Adjusted Book Value as set forth in the Estimated Closing Statement exceeds the Reference Date Adjusted Book Value, minus (c) the amount by which the Reference Date Adjusted Book Value exceeds the Estimated Closing Date Adjusted Book Value as set forth in the Estimated Closing Statement. At the Closing, and conditioned thereon, the Seller shall deliver to the Buyer payment, by wire transfer to a bank account designated in writing by the Buyer (such designation to be made at least two (2) Business Days before the Closing Date), of immediately available funds in an amount equal to the Surplus Note Purchase Price.
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. Each Party and any of their agents shall be entitled to deduct and withhold from any amount otherwise payable pursuant to this Agreement such amounts as it is required to deduct and withhold with respect to the making of such payment under any provision of federal, state, local or foreign applicable Tax Law. If a Party determines that an amount is required to be deducted or withheld, such Party shall use reasonable best efforts to: (i) provide written notice to the other Party, at least five (5) Business Days before the relevant payment, of such deduction or withholding; (ii) cooperate in good faith with the other Party to reduce or eliminate the deduction or withholding of such amount; and (iii) provide the other Party a reasonable opportunity to provide forms or documentation that would exempt such amounts from withholding. If any amount is so withheld and paid over to the applicable Governmental Authority, such amounts paid to the applicable Governmental Authority shall be treated for all purposes of this Agreement as having been paid to the Person with respect to which such deduction or withholding was imposed. |
. At the Closing, the Buyer shall deliver, or cause to be delivered, to the Seller: |
. At the Closing, the Seller shall deliver, or cause to be delivered, to the Buyer: |
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. Except as set forth in Section 4.02 of the Seller Disclosure Schedule and except as may result from any facts or circumstances solely relating to the Buyer and its Affiliates (as opposed to any other third party), the execution, delivery and performance by each Seller Party of, and the consummation by such Seller Party of the transactions contemplated by, the Transaction Agreements do not (a) violate or conflict with the organizational documents of such Seller Party or the Company, (b) violate or conflict with any Law or other Governmental Order applicable to such Seller Party, the Company or the Company Subsidiary or by which any of them or any of their respective properties or assets is bound or subject or (c) result in any breach of, or constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration, impairment, alteration or cancellation of, or result in the creation of any Lien (other than a Permitted Lien) on any of the assets, rights or properties of such Seller Party, the Company or the Company Subsidiary pursuant to, or result in any acceleration of remedies, penalty or material increase or decrease in an amount payable or an obligation or benefit under, any Material Contract, other than, in the case of clauses (b) and (c), any such conflicts, violations, breaches, defaults, rights or Liens that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a Business Material Adverse Effect.
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. Except as set forth in Section 4.03 of the Seller Disclosure Schedule or as may result from any facts or circumstances solely relating to the Buyer and its Affiliates (as opposed to any other third party), the execution and delivery by each Seller Party of the Transaction Agreements does not, and the performance by such Seller Party of and the consummation by such Seller Party of the transactions contemplated by, the Transaction Agreements do not, require any Governmental Approval to be obtained or made by such Seller Party prior to the Closing, except for such Governmental Approvals, the failure of which to be obtained or made has not, and would not reasonably be expected to, individually or in the aggregate, result in a Business Material Adverse Effect.
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. The Seller has not been induced by and has not relied upon any representations or warranties, whether express or implied, made by any of the Buyer or its Affiliates or Representatives that are not expressly set forth in Article VI, whether or not any such representations or warranties were made in writing or orally.
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. As of the date of hereof, the Seller or its Affiliates, with respect to the Company and the Company Subsidiary, maintain the insurance policies and coverages set forth in Section 5.16 of the Seller Disclosure Schedule, all premiums due thereunder have been paid when due in all material respects and all such policies are in full force and effect and no written notice of cancellation, termination or revocation or other written notice that any such insurance policy is no longer in full force or effect has been received by Seller or its Affiliates.
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. As of the date hereof, neither the Company, nor the Company Subsidiary, owns, leases, subleases or licenses any real property. |
. Except as set forth in Section 5.18 of the Seller Disclosure Schedule:
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. Except as disclosed in Section 5.19 of the Seller Disclosure Schedule:
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. Except as set forth in Section 5.21 of the Seller Disclosure Schedule, to the Knowledge of Seller, since January 1, 2017, each third party administrator that managed or administered insurance business for the Company, the Company Subsidiary or, with respect to the Reinsured Business, ELIC, at the time such Person managed or administered such business, was duly licensed as required by applicable Law (for the type of business managed or administered on behalf of such entity), and to the Knowledge of Seller, no such third party administrator has been since January 1, 2017 or is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any applicable Law applicable to the administration or management of insurance business for the Company, the Company Subsidiary or, with respect to the Reinsured Business, ELIC, except for such failures to be licensed or such violations that, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Business Material Adverse Effect.
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. The Seller is solely responsible for the payment of the fees and expenses of any broker, investment banker, financial adviser or other Person acting in a similar capacity in connection with the transactions contemplated by the Transaction Agreements based upon arrangements made by or on behalf of the Seller or any of its Affiliates. |
. Except as set forth in Section 5.23 of the Seller Disclosure Schedule, as of the Closing Date, the assets, properties, employees and rights of the Company and the Company Subsidiary, and the assets, rights, properties and services provided to the Buyer or to the Company or the Company Subsidiary pursuant to the Transaction Agreements (taking into account, in the case of the Transition Services Agreement, only specifically scheduled services that are provided as of the Closing Date and, to the extent of the term of such rights under the Transition Services Agreement, rights to obtain omitted services), will comprise the assets, properties, employees and rights that are sufficient for the Buyer to conduct the CS Business and perform its obligations under the Transaction Agreements immediately following the Closing Date in substantially the same manner as the CS Business is being conducted as of the date hereof.
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. Except as set forth in Section 5.26 of the Seller Disclosure Schedule, since January 1, 2017, none of the Company, the Company Subsidiary or, with respect to the Reinsured Business, ELIC has received any written notice of any unclaimed property or escheat audit or investigation from any Governmental Authority. Each of the Company, the Company Subsidiary and, with respect to the Reinsured Business, ELIC, maintains unclaimed property and escheat policies, procedures and guidelines that comply in all material respects with all applicable Laws. The Company, the Company Subsidiary and, with respect to the Reinsured Business, ELIC, are and at all times since January 1, 2017 have been in material compliance with all such policies, procedures and guidelines and any applicable Laws related thereto.
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. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN ARTICLE IV OR THIS ARTICLE V (AS MODIFIED BY THE SELLER DISCLOSURE SCHEDULE), NEITHER THE SELLER NOR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WITH RESPECT TO THE SELLER, THE BUSINESS, THE SHARES, THE COMPANY, THE COMPANY SUBSIDIARY OR THE ASSETS AND PROPERTIES OF THE COMPANY AND THE COMPANY SUBSIDIARY, AND THE SELLER DISCLAIMS ANY OTHER REPRESENTATIONS, WARRANTIES, FORECASTS, PROJECTIONS, STATEMENTS OR INFORMATION, WHETHER MADE BY THE SELLER OR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR REPRESENTATIVES, INCLUDING IN ANY CONFIDENTIAL INFORMATION MEMORANDUM, MANAGEMENT PRESENTATIONS OR SIMILAR SOURCES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY SET FORTH IN ARTICLE IV OR THIS ARTICLE V, NO REPRESENTATION OR WARRANTY HAS BEEN OR IS BEING MADE WITH RESPECT TO ANY PROJECTIONS, FORECASTS, BUSINESS PLANS, ESTIMATES OR BUDGETS DELIVERED OR MADE AVAILABLE TO THE BUYER OR ANY OTHER PERSON.
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. Except as set forth in Section 6.02 of the Buyer Disclosure Schedule, or as may result from any facts or circumstances solely relating to the Seller and its Affiliates (as opposed to any other third party), the execution, delivery and performance by each Buyer Party of, and the consummation by such Buyer Party of the transactions contemplated by, the Transaction Agreements do not and will not (a) violate or conflict with the organizational documents of such Buyer Party, (b) violate or conflict with any Law or other Governmental Order applicable to such Buyer Party or by which it or its properties or assets is bound or subject or (c) result in any breach of, or constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration, impairment, alteration or cancellation of, or result in the creation of any Lien (other than Permitted Liens) on any of the assets, rights or properties of such Buyer Party pursuant to or result in any acceleration of remedies, penalty or material increase or decrease in an amount payable or an obligation or benefit under any Contract, other than, in the case of clauses (b) and (c), any such conflicts, violations, breaches, defaults, rights or Liens that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a Buyer Material Adverse Effect.
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. Except as set forth in Section 6.03 of the Buyer Disclosure Schedule, the execution and delivery by each Buyer Party of the Transaction Agreements does not, and the performance by such Buyer Party of, and the consummation by such Buyer Party of the transactions contemplated by, the Transaction Agreements do not, require any Governmental Approval to be obtained or made by such Buyer Party or any of its Affiliates prior to the Closing, except for such Governmental Approvals, the failure of which to be obtained or made has not, and would not reasonably be expected to, individually or in the aggregate, result in a Buyer Material Adverse Effect.
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. There are no Actions pending or, to the Knowledge of the Buyer, threatened in writing against the Buyer that (i) question the validity of, or seek injunctive relief with respect to, this Agreement or the right of any Buyer Party to enter into any of the Transaction Agreements, or (ii) could reasonably be expected, individually or in the aggregate, to have a material adverse effect on the business, results of operations or financial condition of the Buyer. |
. The Shares are being acquired by the Buyer for its own account and without a view to the public distribution or sale of the Shares or any interest in them. The Buyer has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Shares, and the Buyer is capable of bearing the economic risks of such investment, including a complete loss of its investment in the Shares. The Buyer understands that it may not sell, transfer, assign, pledge or otherwise dispose of any of the Shares other than pursuant to a registered offering in compliance with, or in a transaction exempt from, the registration requirements of the Securities Act and applicable state and foreign securities Laws. |
. The Buyer has and will have at the Closing, sufficient immediately available funds to pay, in cash, the Purchase Price and all other amounts payable pursuant to this Agreement or otherwise necessary to timely consummate the transactions contemplated by the Transaction Agreements. The obligations of the Buyer to effect the transactions contemplated by the Transaction Agreements are not conditioned upon the availability to the Buyer or any of its Affiliates of any debt, equity or other financing in any amount whatsoever. |
. Assuming (a) the accuracy of the representations and warranties of the Company in Section 5.03 (disregarding any references to material, Business Material Adverse Effect or similar qualifiers), (b) the satisfaction of the conditions precedent set forth in Section 11.02, (c) the performance by the Seller of its obligations under this Agreement and (d) that, immediately prior to the Closing, clauses (i), (ii) and (iii) below, as if they were made in respect of the Company, the Company Subsidiary and the Business at such time, are true, then immediately after giving effect to the consummation of the transactions contemplated by the Transaction Agreements, the Buyer and its Subsidiaries will be Solvent. For purposes of this Section 6.07, “Solvent” means, with respect to any Person, that:
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. The Buyer (a) has made its own inquiry and investigation into, and, based thereon, has formed an independent judgment concerning, the Company, the Company Subsidiary and the Business and (b) has been furnished with or given access to certain information about the Company, the Company Subsidiary and the Business. Except for the representations and warranties of the Seller expressly set forth herein, the Buyer has not relied upon any representations or warranties or other information made or supplied by or on behalf of the Seller or by any Affiliate of the Seller. |
. The Buyer is solely responsible for the payment of the fees and expenses of any broker, investment banker, financial adviser or other Person acting in a similar capacity in connection with the transactions contemplated by the Transaction Agreements based upon arrangements made by or on behalf of the Buyer or any of its Affiliates. |
. The Buyer has not been induced by and has not relied upon any representations or warranties, whether express or implied, made by any of the Seller, the Company, the Company Subsidiary or their respective Affiliates or Representatives that are not expressly set forth in Article IV and Article V (including the Seller Disclosure Schedule), whether or not any such representations or warranties were made in writing or orally.
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. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY SET FORTH IN THE REPRESENTATIONS AND WARRANTIES IN ARTICLE IV AND ARTICLE V, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY ASSETS THAT ARE TANGIBLE PERSONAL PROPERTY OR THIRD PARTY SOFTWARE ARE BEING CONVEYED ON AN “AS IS,” “WHERE IS,” AND “WITH ALL FAULTS” BASIS AND WITHOUT ANY WARRANTY OF NON-INFRINGEMENT.
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. Except as required by applicable Law or as expressly required by the terms of this Agreement or the Transaction Agreements, and except for matters set forth in Section 7.01 of the Seller Disclosure Schedule or for Legally Required COVID-19 Actions or Permissible COVID-19 Actions; provided that prior to taking any Permissible COVID-19 Action, Seller, to the extent permitted by applicable Law, shall consult in good faith with Buyer in respect of such Permissible COVID-19 Action, from the date of this Agreement through the Closing Date, unless the Buyer otherwise consents in writing in advance (which consent shall not be unreasonably withheld, delayed or conditioned), (a) the Seller shall in respect of the Business, and shall cause the Company and the Company Subsidiary to, conduct its business in the ordinary course and use reasonable best efforts to preserve intact the business of the Company and the Company Subsidiary and the relationship of the Business with its policyholders, distributors and others having business dealings with the Business, (b) the Seller shall in respect of the Business, to the extent permitted by applicable Law, keep the Buyer reasonably informed of any actions taken and any plans, procedures and practices adopted in connection with the mitigation of the risk of the COVID-19 outbreak, including any Legally Required COVID-19 Actions or Permissible COVID-19 Actions, and any change in Law or recommendations in respect of operations in respect thereof or the consequence thereof, other than in respect of any competitively sensitive information, and (c) the Seller shall in respect of the Business, and shall cause its Affiliates to, refrain from taking any of the following actions with respect to the Company, the Company Subsidiary and the Business:
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. From and after the date of this Agreement, the Seller and the Buyer shall use reasonable best efforts to, and reasonably cooperate with each other in order to, (a) secure the release of any liability of the Seller or any of its Affiliates under the Guarantees and Indemnity Obligations, (b) subject to any applicable regulatory approval or nonobjection, cause to be terminated and released all of the Seller’s and its Affiliate’s obligations under the agreements set forth in Section 7.04(b)(i) of the Seller Disclosure Schedule in respect of the Guarantees and Indemnity Obligations (the “Guaranty and Indemnity Obligation Agreements”) and (c) subject to any applicable regulatory approval or non-objection, novate in full to the Buyer or, subject to agreement among the Parties, the Guarantor or any credit-worthy Affiliate of the Buyer, the Surplus Maintenance Agreement, in each case to the reasonable satisfaction of the Seller and the Buyer; provided, in each case, that none of the Seller, the Buyer nor any of their respective Affiliates shall be obligated to make any payments or otherwise pay any consideration to any Person or to commence or participate in any Action in connection with any of the matters contemplated by this Section 7.04. Notwithstanding the foregoing, the failure to consummate the matters contemplated by this Section 7.04 shall not (i) constitute a failure to satisfy any condition set forth in Article XI or (ii) otherwise relieve any Person from its obligation to consummate the transactions contemplated by the Transaction Agreements. Notwithstanding anything herein to the contrary, if Buyer and Seller are not able, by the Closing, to secure the release or replacement of the Seller or any of its Affiliates under the Guarantees and Indemnity Obligations, terminate and release all of the Seller’s and its Affiliate’s obligations under the Guaranty and Indemnity Obligation Agreements, and novate in full to the Buyer or, subject to agreement among the Parties, the Guarantor or any credit-worthy Affiliate of the Buyer the Surplus Maintenance Agreement, in each case in a manner reasonably satisfactory to the Seller and the Buyer, the Buyer and the Seller hereby agree that, at the Closing, the Parties shall enter into an Indemnification and Hold Harmless Agreement, substantially in the form attached as Exhibit G hereto.
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. The Buyer has obtained the conditional binder for the representations and warranties insurance policy in respect of the representations and warranties contained in this Agreement or in any certificate or other instrument contemplated by or delivered in connection with this Agreement (such policy, attached as Exhibit H hereto, the “R&W Policy”). Without the prior written consent of the Seller, the Buyer shall not modify or amend such R&W Policy to (a) provide for any “seller retention” (as such phrase is commonly used in the representations and warranty policy industry) or (b) change the subrogation provisions with respect to the Seller and any of its Affiliates or Representatives.
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. The Seller shall, and shall cause its Affiliates to, take such action, including making such payments as may be necessary, so that, within thirty (30) days of the Closing, the Company, on the one hand, and the Seller and its Affiliates (other than the Company), on the other hand, shall settle, discharge, offset, pay, repay in full, terminate or extinguish all intercompany loans, notes and advances, regardless of their maturity, and all intercompany receivables and payables for the amount due, including any accrued and unpaid interest to but excluding the date of payment, including terminating the Letter of Credit. |
. From and after the date hereof until the Closing, subject to the provisions thereof, the Seller and Buyer shall, and shall cause their respective Affiliates to, follow the derivative selection and sign-to-close protocols set forth on Schedule 7.09.
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. The Company shall, prior to the Closing effect the recapture of all of the business that is currently ceded to the Company Subsidiary (the “Recapture”), unwind the letters of credit currently in place at the Company Subsidiary, assign or novate all of the hedges that are currently held by the Company Subsidiary to the Company or, if requested by the Buyer, to the Buyer, and effect the (a) dissolution or (b) transfer or sale of 100% of the equity of the Company Subsidiary (together with the Recapture, the “Recapture and Dissolution Transaction”), in each case, in a manner that results in the Recapture being treated for all purposes in a manner consistent with the Agreed Accounting Principles.
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. After the Closing, the Buyer shall, and shall cause its Affiliates (including the Company) to, preserve and retain, in accordance with and until such date as may be required by the Buyer’s or its applicable Affiliates’ standard document retention policies (but for not less than seven (7) years after the Closing Date or such later date as may be required by applicable Law), all pre-Closing Date books and records of the Company, and the Business possessed or controlled by such Person. During such period, upon any reasonable request from the Seller or any of its Affiliates and at the Seller’s expense, the Buyer or any of its Affiliates holding such books and records shall (a) provide to the Seller or its Affiliates reasonable access to such books and records during normal business hours; provided, that (i) such access shall not unreasonably interfere with the conduct of the business of the Buyer or its Affiliates holding such books and records and (ii) prior to affording any such access, the Buyer may require that the Seller and its applicable Representatives agree to customary confidentiality undertakings with respect to any non-public information received pursuant to this Section 8.01 and (b) permit the Seller or its Affiliates to make copies of such books and records. Nothing herein shall require the Buyer or its Affiliates to provide the Seller or its Affiliates with access or copies to (A) any personnel file, medical file or related records of any Company Employee, (B) any Tax Return or other Tax record filed by the Buyer or any of its Affiliates (except for Tax records relating exclusively to the Company) or (C) any other information if the disclosure of such information, in the reasonable opinion of outside counsel, would (1) result in a waiver of any attorney-client privilege, work product immunity or any other legal privilege or similar doctrine or (2) contravene any applicable Law, Governmental Order or any fiduciary duty, it being understood that the Buyer shall (1) to the extent permitted under applicable Law, notify the Seller of the circumstances which would limit the provision of such information, (2) cooperate, at the Seller’s sole cost and expense, with any requests for, and use its reasonable best efforts to obtain any, waivers and (3) use its reasonable best efforts to make other arrangements (including redacting information or entering into joint defense or common interest agreements), in each case, that would enable otherwise required disclosure to the Seller or its Affiliates to occur without so jeopardizing privilege or immunity or contravening such applicable Law, Governmental Order or fiduciary duty. The books and records may be requested under this Section 8.01 for any accounting, litigation (other than litigation involving the Buyer), financial reporting (including financial audits of historical information), securities disclosure, loss reporting, regulatory, compliance with contractual obligations of the Seller or its Affiliates or other reasonable purpose (including for any such matters related to the Transition Services Agreement) arising before the Closing Date. Notwithstanding the foregoing, upon the expiration of such retention period, any and all such books and records may be destroyed by the Buyer if the Buyer sends to the Seller written notice of its intent to destroy such books and records, specifying in reasonable detail the contents of such books and records to be destroyed; such books and records may then be destroyed after the thirtieth (30th) day following such notice unless the Seller notifies the Buyer that the Seller desires to obtain possession of such books and records, in which event the Buyer shall transfer such books and records to the Seller and the Seller shall pay all reasonable out of pocket expenses of the Buyer in connection therewith.
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. For a period of eighteen (18) months following the Closing Date: |
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. Recognizing that Willkie Farr & Gallagher LLP (“Willkie”) has acted as legal counsel to the Seller, the Company, the Company Subsidiary and their Affiliates prior to the Closing, all communications involving attorney-client confidences between any of the Seller and its Affiliates (including the Company and the Company Subsidiary) and Willkie in the course of the negotiation, documentation and consummation of the transactions contemplated hereby shall be deemed to be attorney-client confidences that belong solely to such Seller and its Affiliates (and not the Company or the Company Subsidiary). Accordingly, the Company and the Company Subsidiary shall not have access to any such communications, or to the files of Willkie relating to such engagement, whether or not the Closing shall have occurred. Without limiting the generality of the foregoing, upon and after the Closing, (a) the Seller and its Affiliates (and not the Company or the Company Subsidiary) shall be the sole holders of the attorney-client privilege with respect to such engagement, and none of the Company or the Company Subsidiary shall be a holder thereof, (b) to the extent that files of Willkie in respect of such engagement constitute property of the client, only the Seller and its Affiliates (and not the Company or the Company Subsidiary) shall hold such property rights and (c) Willkie shall have no duty whatsoever to reveal or disclose any such attorney-client communications or files to the Company or the Company Subsidiary by reason of any attorney-client relationship between Willkie and the Company or the Company Subsidiary or otherwise with respect to such engagement. Notwithstanding the foregoing, in the event that a dispute arises between the Buyer, the Company or the Company Subsidiary and a third party (other than a Party to this Agreement or any of their respective Affiliates) after the Closing, the Company (including on behalf of the Company Subsidiary) may assert the attorney-client privilege to prevent disclosure of confidential communications by Willkie to such third party; provided, however, that neither the Company nor the Company Subsidiary may waive such privilege without the prior written consent of the Seller.
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. The Seller (on behalf of itself and its Affiliates other than the Company) shall, and hereby does, effective as of the Closing, release, waive and forever discharge the Company and each of its respective directors, officers, employees, Affiliates, agents and representatives from any and all actions, suits, debts, liens, sums of money, accounts, judgments, claims and demands whatsoever, at law or in equity, either in contract or in tort, whether known or unknown, on account of, arising out of or relating to or resulting from any Contract, transaction, event, circumstance, action, failure to act or occurrence of any sort or type, whether known or unknown, and which occurred, existed, was taken or expressly permitted prior to the Closing. The Buyer, solely on behalf of the Company and not on its own behalf or on behalf of any of its Affiliates other than the Company, shall, and hereby does, effective as of the Closing, release, waive and forever discharge the Seller and each of its directors, officers, employees, Affiliates, agents and representatives from any and all actions, suits, debts, liens, sums of money, accounts, judgments, claims and demands whatsoever, at law or in equity, either in contract or in tort, whether known or unknown, on account of, arising out of or relating to or resulting from any Contract, transaction, event, circumstance, action, failure to act or occurrence of any sort or type, whether known or unknown, and which occurred, existed, was taken or expressly permitted prior to the Closing. Notwithstanding the foregoing, nothing in this Section 8.09 shall release, waive or discharge any actions, suits, debts, liens, sums of money, accounts, judgments, claims and demands whatsoever, at law or in equity, either in contract or in tort, whether known or unknown, on account of or arising out of this Agreement or any other Transaction Agreement.
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. Any Tax refund, credit, or similar benefit (including any interest paid or credited with respect thereto) (a “Tax Refund”) relating to the Company or the Company Subsidiary for Taxes paid for any Pre-Closing Tax Period shall be the property of the Seller; provided, however, to the extent such Tax Refund arises from the carryback of an item of deduction or loss from a Post-Closing Tax Period to a Pre-Closing Tax Period or was taken into account in the Closing Date Adjusted Book Value, such Tax Refund shall be property of the Buyer. If received by the Buyer or the Company or the Company Subsidiary, the Buyer shall, or shall cause the Company or the Company Subsidiary to, pay such Tax Refund to which the Seller is entitled under this Section 10.03 promptly to the Seller, net of any reasonable cost to the Buyer or any of its Affiliates attributable to the receipt of such refund. In the event that any such Tax Refund is subsequently contested by any Tax Authority, such contest shall be handled in accordance with the procedures in Section 13.05. Any additional Taxes resulting from the contest shall be indemnified in accordance with Section 10.01.
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. All transfer, documentary, sales, use, stamp, registration, value added and other similar Taxes incurred in connection with the transactions contemplated by this Agreement (“Transfer Taxes”) shall be split fifty percent (50%) by the Buyer and fifty percent (50%) by the Seller. All Tax Returns with respect to Transfer Taxes shall be filed by the Party required to file the Tax Return under applicable Law, and the Buyer and the Seller, as applicable, shall reimburse the filing Party for any Transfer Taxes that are borne by the Buyer or the Seller, respectively, pursuant to this Section 10.04. The Buyer and the Seller shall cooperate in timely filing all Tax Returns and forms as necessary or appropriate to comply with the provisions of all applicable Laws in connection with the payment of such Transfer Taxes and shall cooperate in good faith to minimize the amount of any such Transfer Taxes payable in connection herewith. For the avoidance of doubt, any reimbursement obligation pursuant to this Section 10.04 shall not be satisfied by the R&W Policy or subject to the limitation under Section 13.03(b).
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. After the Closing Date, the Buyer and the Seller shall (and shall cause their respective Affiliates to) (a) provide the other Party and its Affiliates with such assistance as may be reasonably requested in connection with the preparation of any Tax Return or, subject to Section 13.05, any audit or other examination by any Tax Authority (including providing any necessary powers of attorney) or defense of any judicial, administrative or other proceeding relating, in each case, to Taxes of the Company or the Company Subsidiary and (b) retain (and provide the other Party and its Affiliates with reasonable access to) all records or information which may be relevant to such Tax Return, audit, examination or proceeding; provided, that the foregoing shall be done in a manner so as not to interfere unreasonably with the conduct of the business of the Parties. Any information obtained under this Section 10.05 shall be kept confidential except as otherwise may be necessary in connection with the filing of Tax Returns or claims for Tax Refunds or in conducting a contest or as otherwise may be required by applicable Law or the rules of any stock exchange.
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. Notwithstanding anything to the contrary contained herein, the Seller shall, and shall cause its Affiliates to, terminate all Tax Sharing Agreements between the Company or the Company Subsidiary, on the one hand, and the Seller or any Affiliate of the Seller (other than the Company or the Company Subsidiary), on the other hand, prior to the Closing. After the Closing, the Seller and its Affiliates shall not have any Liability to the Company or the Company Subsidiary (or vice versa) under the Tax Sharing Agreements. |
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. The obligation of the Seller to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or waiver by the Seller, at or prior to the Closing, of each of the following conditions: |
. The obligations of the Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or waiver by the Buyer, at or prior to the Closing, of each of the following conditions: |
. Neither the Seller nor the Buyer may rely on the failure of any condition set forth in this Article XI to be satisfied if such failure was caused by such Party’s failure to act in good faith or to comply with its obligations set forth in this Agreement.
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. This Agreement may be terminated prior to the Closing: |
. Any Party desiring to terminate this Agreement pursuant to Section 12.01 shall give written notice of such termination to the other Party.
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. In the event of the termination of this Agreement as provided in Section 12.01, this Agreement shall thereafter become null and void and there shall be no liability on the part of any Party (or Representative of such Party) to this Agreement or in connection with the transactions contemplated hereby, except as set forth in Section 8.03 and this Article XII; provided that nothing in this Section 12.03 shall relieve the Seller or the Buyer from liability for any Fraud or Willful Breach of this Agreement prior to such termination (it being acknowledged and agreed by the Parties that the failure to close the transactions contemplated by this Agreement by any Party that was otherwise obligated to do so under the terms of this Agreement shall be deemed to be a Willful Breach of this Agreement). The provisions of Section 1.01, Section 8.03(a), this Section 12.03 and Article XIV shall survive any termination hereof pursuant to Section 12.01. No termination of this Agreement shall affect the obligations contained in the Confidentiality Agreements, all of which obligations shall survive termination of this Agreement in accordance with their terms. The terms of the Confidentiality Agreements shall continue to survive any termination of this Agreement.
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. The Indemnitor will have a period of thirty (30) days within which to respond in writing to any claim by an Indemnitee on account of an Indemnifiable Loss that does not result from a Third Party Claim. If the Indemnitor does not so respond within such thirty (30) day period, the Indemnitor will be deemed to have rejected such claim, in which event the Indemnitee will be entitled to pursue such remedies as may be available to the Indemnitee. The foregoing does not apply with respect to a breach or alleged breach of any representation or warranty set forth in Section 5.19, which will be governed by the terms of Section 13.08 to the extent applicable.
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. The Parties acknowledge and agree that, except (a) as provided in Section 14.13, (b) other equitable remedies that cannot be waived as a matter of law, or (c) in the event that a party is finally determined by a court of competent jurisdiction to have willfully and knowingly committed a fraud, with the intent to deceive or mislead any other party, regarding such party’s representations, warranties, covenants or other agreements set forth in this Agreement or in any certificate furnished in connection with the Closing, if the Closing occurs, the provisions set forth in this Article XIII or Section 10.01, as applicable shall be the sole and exclusive remedy of the parties hereto and their respective officers, directors, employees, agents and Affiliates for any breach of or inaccuracy in any representation or warranty or any breach, nonfulfillment or default in the performance of any of the covenants or agreements contained in this Agreement.
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. The Parties shall treat (a) any Indemnity Payment made in respect of the Company or the Company Subsidiary as an adjustment to the amount of Purchase Price and a corresponding change in the amount of ADSP for the assets of the Company in a manner consistent with the adjustment required by Section 10.07(d) to the Final Allocation Schedule and (b) any Indemnity Payment made in respect of the Reinsured Business as an adjustment to the amount of the Ceding Commission, in each case, for U.S. federal income tax purposes, except as otherwise required by applicable Law.
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. Except as may be otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisers and independent accountants, incurred in connection with this Agreement and the transactions contemplated by the Transaction Agreements shall be paid by the Person incurring such costs and expenses, whether or not the Closing shall have occurred. |
. All notices, requests, consents, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by electronic mail (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 14.02):
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. No Party or any Affiliate or Representative of such Party shall issue or cause the publication of any press release or public announcement or otherwise communicate with any news media in respect of the Transaction Agreements or the transactions contemplated thereby without the prior written consent of the other Party (which consent shall not be unreasonably withheld, conditioned or delayed), except as may be required by Law or applicable securities exchange rules, in which case the Party required to publish such press release or public announcement shall allow the other Party a reasonable opportunity to comment on such press release or public announcement in advance of such publication. Prior to the Closing, none of the Parties to this Agreement, nor any of their respective Affiliates or Representatives, shall make any public disclosure concerning plans or intentions relating to the customers, agents, or employees of, or other Persons with significant business relationships with, the Company or the Company Subsidiary without first obtaining the prior written approval of the other Party, which approval shall not be unreasonably withheld, conditioned or delayed. |
. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by the Transaction Agreements are not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by the Transaction Agreements be consummated as originally contemplated to the greatest extent possible. |
. This Agreement (including all Exhibits and Schedules hereto), the Confidentiality Agreements (to the extent not in conflict with this Agreement) and the other Transaction Agreements constitute the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and undertakings, both written and oral, between or on behalf of the Seller and/or its Affiliates, on the one hand, and the Buyer and/or its Affiliates, on the other hand, with respect to the subject matter of this Agreement. |
. This Agreement shall not be assigned by any Party without the prior written consent of the other Party. Any attempted assignment in violation of this Section 14.06 shall be void. This Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by the Parties and their permitted successors and assigns.
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. Except as provided in Section 8.07, with respect to the directors and officers of the Company and the Company Subsidiary, this Agreement is for the sole benefit of the Parties and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
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. No provision of this Agreement may be amended, supplemented or modified except by a written instrument signed by each Party. |
. Any disclosure set forth in the Seller Disclosure Schedule with respect to any Section of this Agreement shall be deemed to be disclosed for purposes of other Sections of this Agreement to the extent that such disclosure sets forth facts in sufficient detail so that the relevance of such disclosure would be reasonably apparent to a reader of such disclosure. Matters reflected in any Section of the Seller Disclosure Schedule are not necessarily limited to matters required by this Agreement to be so reflected. Such additional matters are set forth for informational purposes and do not necessarily include other matters of a similar nature. No reference to or disclosure of any item or other matter in the Seller Disclosure Schedule shall be construed as an admission or indication that such item or other matter is material or that such item or other matter is required to be referred to or disclosed in this Agreement. Without limiting the foregoing, no such reference to or disclosure of a possible breach or violation of any contract, Law or Governmental Order shall be construed as an admission or indication that a breach or violation exists or has actually occurred. |
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. This Agreement, and the formation, termination or validity of any part of this Agreement shall in all respects be governed by, and construed in accordance with, the Laws of the State of New York. |
. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ITS PERFORMANCE UNDER OR THE ENFORCEMENT OF THIS AGREEMENT. |
. The Parties agree that irreparable damage may occur in the event that any of the covenants or obligations contained in this Agreement are not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the Parties shall be entitled to injunctive or other equitable relief to prevent or cure any breach by the other Party of its covenants or obligations contained in this Agreement and to specifically enforce such covenants and obligations in any court referenced in Section 14.10(a) having jurisdiction, such remedy being in addition to any other remedy to which any Party may be entitled at law or in equity. Each of the Parties acknowledges and agrees that it shall not oppose the granting of an injunction, specific performance and other equitable relief when expressly available pursuant to the terms of this Agreement, and hereby waives any requirement under Law to post a bond, undertaking or other security as a prerequisite to obtaining equitable relief.
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. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, in writing at any time by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any Party, it is authorized in writing by an authorized Representative of such Party. The failure of any Party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any preceding or subsequent breach. |
. Interpretation of this Agreement shall be governed by the following rules of construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to Articles, Sections, paragraphs, Exhibits and Schedules are references to the Articles, Sections, paragraphs, Exhibits and Schedules to this Agreement unless otherwise specified; (c) references to “$” shall mean United States dollars; (d) the word “including” and words of similar import when used in this Agreement shall mean “including without limiting the generality of the foregoing,” unless otherwise specified; (e) the table of contents, articles, titles and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (f) this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted; (g) the Schedules and Exhibits referred to herein shall be construed with and as an integral part of this Agreement to the same extent as if they were set forth verbatim herein; (h) unless the context otherwise requires, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (i) all terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein; (j) any agreement or instrument defined or referred to herein or any agreement or instrument that is referred to herein means such agreement or instrument as from time to time amended, modified or supplemented, including by waiver or consent, and references to all attachments thereto and instruments incorporated therein; (k) any statement that a document has been “delivered,” “provided” or “made available” to Buyer means, except as otherwise provided herein (including in respect of documents to be “delivered,” “provided” or “made available” on or after the date hereof), that such document has been uploaded to the Data Room not later than October 26, 2020 or is set forth on, or otherwise described on, Section 14.15 of the Seller Disclosure Schedule; (l) any statute or regulation referred to herein means such statute or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of any statute, includes any rules and regulations promulgated under such statute), and references to any section of any statute or regulation include any successor to such section; (m) all time periods within or following which any payment is to be made or act to be done shall be calculated by excluding the date on which the period commences and including the date on which the period ends and by extending the period to the first succeeding Business Day if the last day of the period is not a Business Day; (n) references to any Person include such Person’s predecessors or successors, whether by merger, consolidation, amalgamation, reorganization or otherwise; (o) references to any Contract (including this Agreement) or organizational document are to the Contract or organizational document as amended, modified, supplemented or replaced from time to time, unless otherwise stated, and (p) the word “or” shall not be exclusive unless the context otherwise requires.
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. Notwithstanding anything to the contrary in this Agreement, neither the Seller nor any of its Affiliates makes any representation or warranty with respect to, and nothing contained in this Agreement, any other Transaction Agreement or any other agreement, document or instrument to be delivered in connection with the transactions contemplated hereby or thereby is intended or shall be construed to be a representation or warranty (express or implied) of the Seller or any of its Affiliates, for any purpose of this Agreement, any other Transaction Agreement or any other agreement, document or instrument to be delivered in connection with the transactions contemplated hereby or thereby, with respect to (a) the adequacy or sufficiency of the Reserves of the Company or the Company Subsidiary, (b) the future profitability of the Business, or (c) the effect of the adequacy or sufficiency of the reserves of the Company or the Company Subsidiary on any “line item” or asset, Liability or equity amount on any financial or other document. |
. This Agreement may be executed in two (2) or more counterparts, and by the different Parties to this Agreement in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other means of electronic transmission utilizing reasonable image scan technology shall be as effective as delivery of a manually executed counterpart of this Agreement. |
. The Parties agree and acknowledge that to the extent any terms and provisions of this Agreement are in any way inconsistent with or in conflict with any term, condition or provision of any other agreement, document or instrument contemplated hereby, this Agreement will govern and control. |
. In the event any litigation or other court action, arbitration or similar adjudicatory proceeding (a “Proceeding”) is commenced or threatened by any Party to enforce its rights under this Agreement against any other Party, all fees, costs and expenses, including, without limitation, reasonable attorneys’ fees and court costs, incurred by the prevailing party in such Proceeding will be reimbursed by the other Party; provided that if a Party prevails in part, and loses in part, in such Proceeding, the court, arbitrator or other adjudicator presiding over such Proceeding will award a reimbursement of the fees, costs and expenses incurred by the prevailing party on an equitable basis.
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. The Guarantor hereby irrevocably and unconditionally agrees, as principal and not as surety, to cause the prompt and full discharge by the Buyer of all of the Buyer’s payment and other covenants, agreements and obligations under this Agreement (collectively, the “Buyer Obligations”), in accordance with the terms hereof. The Buyer acknowledges and agrees that the Buyer Obligations are the joint and several obligations of the Buyer and the Guarantor. If the Buyer shall default in the due and punctual performance of any Buyer Obligation, the Guarantor will forthwith make or cause to be made full payment of any amount due with respect thereto at its sole cost and expense or otherwise cause such agreement, covenant or obligation to be satisfied by the Buyer. The Guarantor hereby makes the representations and warranties set forth in Section 6.01(b), Section 6.02, Section 6.03 and Section 6.11, mutatis mutandis, as if it were by the Buyer hereunder. The Guarantor is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware. Notwithstanding anything to the contrary contained in this Agreement, the Guarantor is a party to this Agreement solely with respect to this Section 14.20 and shall have no other obligations or liabilities pursuant to this Agreement.
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Entity Name | State or other jurisdiction of incorporation or organization | ||||
Equitable Holdings, Inc. | DE | ||||
Alpha Units Holdings, Inc. | DE | ||||
AllianceBernstein Corporation | DE | ||||
SEE LISTING A | |||||
Corporate Solutions Life Reinsurance Company | DE | ||||
CS Life Re Company | AZ | ||||
Alpha Units Holdings II, Inc. | DE | ||||
787 Holdings, LLC | DE | ||||
1285 Holdings, LLC | DE | ||||
AXA Strategic Ventures US, LLC | DE | ||||
Equitable Financial Services, LLC | DE | ||||
EQ AZ Life Re Company | AZ | ||||
Equitable Distribution Holding Corporation | DE | ||||
Equitable Advisors, LLC | DE | ||||
Equitable Network, LLC | DE | ||||
Equitable Network of Puerto Rico, Inc. | P.R. | ||||
PlanConnect, LLC | DE | ||||
Equitable Financial Life Insurance Company | NY | ||||
Equitable Investment Management Group LLC | DE | ||||
Broad Vista Partners, LLC | DE | ||||
200 East 87th Street Company, LLC | DE | ||||
Equitable Holdings, LLC | NY | ||||
Equitable Casualty Insurance Company | VT | ||||
Equitable Distributors, LLC | DE | ||||
J.M.R. Realty Services, Inc. | DE | ||||
Equitable Structured Settlement Corp. | DE | ||||
Equitable Managed Assets, L.P. | DE | ||||
EVSA, Inc. | DE | ||||
Separate Account 166, LLC | DE | ||||
Equitable Financial Life and Annuity Company | CO | ||||
MONY International Holdings, LLC | DE | ||||
MONY International Life Insurance Co. Seguros de Vida S.A.
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Argentina | ||||
MONY Financial Resources of the Americas Limited | Jamaica | ||||
MBT, Ltd. | Cayman Islands | ||||
MONY Participacoes LTDA (f/k/a MONY Consultoria e Corretagem de Seguros Ltda.) | Brazil | ||||
Equitable Financial Life Insurance Company of America | AZ | ||||
MONY Financial Services, Inc. | DE | ||||
Financial Marketing Agency, Inc. | OH | ||||
1740 Advisers, Inc.
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NY |
LISTING A - AllianceBernstein Corporation | |||||
Equitable Holdings, Inc. | |||||
Alpha Units Holdings, Inc. | |||||
AllianceBernstein Corporation | |||||
AllianceBernstein Holding L.P. | DE | ||||
AllianceBernstein L.P. | DE | ||||
AllianceBernstein Investments Taiwan Limited | Taiwan | ||||
AB Trust Company, LLC | NH | ||||
Alliance Capital Management LLC | DE | ||||
AllianceBernstein Real Estate Investments LLC | DE | ||||
AB Private Credit Investors LLC | DE | ||||
AB Custom Alternative Investments LLC | DE | ||||
Sanford C. Bernstein & Co., LLC | DE | ||||
Autonomous Research U.S. L.P. | NY | ||||
Sanford C. Bernstein (Canada) Limited | Canada | ||||
AnchorPath Financial, LLC | DE | ||||
AnchorPath GP, LLC | DE | ||||
AB Broadly Syndicated Loan Manager LLC | DE | ||||
AllianceBernstein International LLC | DE | ||||
Sanford C. Bernstein (Schwiez) GmbH | Switzerland | ||||
Sanford C. Bernstein (Hong Kong) Limited | Hong Kong | ||||
Sanford C. Bernstein (Australia) Pty. Limited | Australia | ||||
Sanford C. Bernstein (Ireland) Limited | Ireland | ||||
AllianceBernstein Holdings Limited | U.K. | ||||
AllianceBernstein Corporation of Delaware | DE | ||||
AllianceBernstein (Argentina) S.R.L. | Argentina | ||||
AllianceBernstein (Chile) SpA | Chile | ||||
AllianceBernstein Japan Ltd. | Japan | ||||
AllianceBernstein Investment Management Australia Limited | Australia | ||||
AllianceBernstein Global Derivatives Corporation | DE | ||||
AllianceBernstein Administradora de Carteiras (Brasil) Ltda. | Brazil | ||||
AllianceBernstein Holdings (Cayman) Ltd. | Cayman Isles | ||||
AllianceBernstein Preferred Limited | U.K. | ||||
CPH Capital Fondsmaeglerselskab A/S | Denmark | ||||
AB Bernstein Israel Ltd. | Israel | ||||
AllianceBernstein Limited | U.K. | ||||
AllianceBernstein Services Limited | U.K. | ||||
AllianceBernstein Schweiz AG | Switzerland | ||||
AllianceBernstein (Luxembourg) S.a.r.l. | Lux. | ||||
AllianceBernstein (France) SAS | France | ||||
AllianceBernstein (Mexico) S. de R.L. de C.V. | Mexico | ||||
AllianceBernstein Australia Limited | Australia | ||||
AllianceBernstein Canada, Inc. | Canada | ||||
AllianceBernstein (Singapore) Ltd. | Singapore | ||||
AllianceBernstein Portugal, Unipessoal LDA | Portugal | ||||
Alliance Capital (Mauritius) Private Limited | Mauritius | ||||
AllianceBernstein Solutions (India) Private Limited | India |
AllianceBernstein Investment Research And Management (India) Private Ltd. | India | ||||
Sanford C. Bernstein (India) Private Limited | India | ||||
AllianceBernstein Oceanic Corporation | DE | ||||
AllianceBernstein Asset Management (Korea) Ltd. | South Korea | ||||
AllianceBernstein Investments, Inc. | DE | ||||
AllianceBernstein Investor Services, Inc. | DE | ||||
AllianceBernstein Hong Kong Limited | Hong Kong | ||||
AB (Shanghai) Investment Management Co., Ltd. | China | ||||
AB (Shanghai) Overseas Investment Fund Management Co., Ltd. | China | ||||
Sanford C. Bernstein (Autonomous UK) 1 Limited | U.K. | ||||
Autonomous Research LLP
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U.K. | ||||
Autonomous Research Limited
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U.K. | ||||
Sanford C. Bernstein Limited | U.K. | ||||
Sanford C. Bernstein (CREST Nominees) Limited | U.K. | ||||
W.P. Stewart & Co., LLC. | DE | ||||
WPS Advisors, LLC. | DE | ||||
W.P. Stewart Asset Management LLC | DE | ||||
W.P. Stewart Securities LLC | DE | ||||
W.P. Stewart Asset Management (NA), LLC | NY |
/s/ Mark Pearson | ||
Mark Pearson | ||
President and Chief Executive Officer |
/s/ Anders Malmström | ||
Anders Malmström | ||
Senior Executive Vice President and
Chief Financial Officer |
/s/ Mark Pearson
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Mark Pearson
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President and Chief Executive Officer
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/s/ Anders Malmström
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Anders Malmström
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Senior Executive Vice President and
Chief Financial Officer
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