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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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(Exact name of registrant as specified in its charter)
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Bermuda
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98-0630022
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification Number)
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Large accelerated filer
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☑
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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•
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the accuracy of management’s assumptions and estimates;
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•
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variability in the amount of statutory capital that our insurance and reinsurance subsidiaries have or are required to hold;
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•
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interest rate and/or foreign currency fluctuations;
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•
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our potential need for additional capital in the future and the potential unavailability of such capital to us on favorable terms or at all;
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•
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changes in relationships with important parties in our product distribution network;
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•
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the activities of our competitors and our ability to grow our retail business in a highly competitive environment;
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•
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the impact of general economic conditions on our ability to sell our products and on the fair value of our investments;
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•
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our ability to successfully acquire new companies or businesses and/or integrate such acquisitions into our existing framework;
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•
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downgrades, potential downgrades or other negative actions by rating agencies;
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•
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our dependence on key executives and inability to attract qualified personnel, or the potential loss of Bermudian personnel as a result of Bermuda employment restrictions;
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•
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market and credit risks that could diminish the value of our investments;
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•
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the impact of changes to the creditworthiness of our reinsurance and derivative counterparties;
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•
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changes in consumer perception regarding the desirability of annuities as retirement savings products;
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•
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potential litigation (including class action litigation), enforcement investigations or regulatory scrutiny against us and our subsidiaries, which we may be required to defend against or respond to;
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•
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the impact of new accounting rules or changes to existing accounting rules on our business;
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•
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interruption or other operational failures in telecommunication and information technology and other operating systems, as well as our ability to maintain the security of those systems;
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•
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the termination by Apollo Global Management, Inc. (AGM) or any of its subsidiaries (collectively, AGM together with its subsidiaries, Apollo) of its investment management agreements with us and limitations on our ability to terminate such arrangements;
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•
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Apollo’s dependence on key executives and inability to attract qualified personnel;
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•
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increased regulation or scrutiny of alternative investment advisers and certain trading methods;
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•
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potential changes to regulations affecting, among other things, transactions with our affiliates, the ability of our subsidiaries to make dividend payments or distributions to AHL, acquisitions by or of us, minimum capitalization and statutory reserve requirements for insurance companies and fiduciary obligations on parties who distribute our products;
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•
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the failure to obtain or maintain approval of insurance regulators and other regulatory authorities as required for the operation of our insurance subsidiaries;
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•
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increases in our tax liability resulting from the Base Erosion and Anti-Abuse Tax (BEAT);
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•
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improper interpretation or application of Public Law no. 115-97, the Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (Tax Act) or subsequent changes to, clarifications of or guidance under the Tax Act that is counter to our interpretation and has retroactive effect;
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•
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AHL or any of its non-United States (U.S.) subsidiaries becoming subject to U.S. federal income taxation;
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•
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adverse changes in U.S. tax law;
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•
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our being subject to U.S. withholding tax under the Foreign Account Tax Compliance Act (FATCA);
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•
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changes in our ability to pay dividends or make distributions;
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•
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our failure to obtain approval of the share exchange transaction with Apollo by our shareholders or regulators;
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•
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our failure to recognize the benefits expected to be derived from the share exchange transaction with Apollo;
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•
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unexpected difficulties or expenditures related to the share exchange transaction with Apollo;
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•
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disruption of our current plans, operations and relationships with policyholders, reinsurance counterparties or other business partners caused by the announcement and pendency of the share exchange transaction with Apollo;
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•
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the commencement of legal proceedings, including those that may be instituted against us, our board of directors, our executive officers and others following the announcement of the share exchange transaction with Apollo;
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•
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the failure to close the ACRA capital raise or the failure to achieve the economic benefits expected to be derived therefrom; and
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•
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other risks and factors listed in Part II–Item 1A. Risk Factors included in this report, Part I—Item 1A. Risk Factors included in our 2018 Annual Report and those discussed elsewhere in this report and in our 2018 Annual Report.
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Term or Acronym
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Definition
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A-A Mortgage
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A-A Mortgage Opportunities, L.P.
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AAA Investor
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AAA Guarantor – Athene, L.P.
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AAIA
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Athene Annuity and Life Company
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AAM
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Athene Asset Management LLC, now known as Apollo Insurance Solutions Group LLC
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AARe
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Athene Annuity Re Ltd., a Bermuda reinsurance subsidiary
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ACRA
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Athene Co-Invest Reinsurance Affiliate 1A Ltd., together with its subsidiaries
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ADIP
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Apollo/Athene Dedicated Investment Program
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AGM
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Apollo Global Management, Inc.
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AHL
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Athene Holding Ltd.
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ALRe
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Athene Life Re Ltd., a Bermuda reinsurance subsidiary
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AmeriHome
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AmeriHome Mortgage Company, LLC
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Apollo
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Apollo Global Management, Inc., together with its subsidiaries
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Apollo Group
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(1) Apollo, (2) the AAA Investor, (3) any investment fund or other collective investment vehicle whose general partner or managing member is owned, directly or indirectly, by Apollo or one or more of Apollo’s subsidiaries, (4) BRH Holdings GP, Ltd. and its shareholders and (5) any affiliate of any of the foregoing (except that Athene, Athene employees, and ISG employees are not members of the Apollo Group)
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Athene USA
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Athene USA Corporation
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Athora
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Athora Holding Ltd., formerly known as AGER Bermuda Holding Ltd.
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BMA
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Bermuda Monetary Authority
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CoInvest VI
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AAA Investments (Co-Invest VI), L.P.
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CoInvest VII
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AAA Investments (Co-Invest VII), L.P.
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ISG
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Apollo Insurance Solutions Group LLC, formerly known as Athene Asset Management LLC
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LIMRA
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Life Insurance and Market Research Association
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MidCap
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MidCap FinCo Designated Activity Company
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NAIC
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National Association of Insurance Commissioners
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NYSDFS
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New York State Department of Financial Services
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RLI
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ReliaStar Life Insurance Company
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Treasury
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United States Department of the Treasury
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Voya
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Voya Financial, Inc.
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VIAC
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Voya Insurance and Annuity Company
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Venerable
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Venerable Holdings, Inc., together with its subsidiaries
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Term or Acronym
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Definition
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ABS
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Asset-backed securities
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ACL
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Authorized control level RBC as defined by the model created by the National Association of Insurance Commissioners
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ALM
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Asset liability management
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ALRe RBC
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The risk-based capital ratio of ALRe, when applying the NAIC risk-based capital factors.
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Alternative investments
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Alternative investments, including investment funds, CLO equity positions and certain other debt instruments considered to be equity-like
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Base of earnings
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Earnings generated from our results of operations and the underlying profitability drivers of our business
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Bermuda capital
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The capital of ALRe calculated under U.S. statutory accounting principles, including that for policyholder reserve liabilities which are subjected to U.S. cash flow testing requirements, but excluding certain items that do not exist under our applicable Bermuda requirements, such as interest maintenance reserves
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Block reinsurance
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A transaction in which the ceding company cedes all or a portion of a block of previously issued annuity contracts through a reinsurance agreement
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BSCR
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Bermuda Solvency Capital Requirement
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CAL
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Company action level risk-based capital as defined by the model created by the National Association of Insurance Commissioners
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CLO
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Collateralized loan obligation
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CMBS
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Commercial mortgage-backed securities
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CML
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Commercial mortgage loans
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Cost of crediting
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The interest credited to the policyholders on our fixed annuities, including, with respect to our fixed indexed annuities, option costs, as well as institutional costs related to institutional products, presented on an annualized basis for interim periods
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Cost of funds
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Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products, as well as other liability costs. Cost of funds is computed as the total liability costs divided by the average invested assets for the relevant period. Presented on an annualized basis for interim periods.
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DAC
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Deferred acquisition costs
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Deferred annuities
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Fixed indexed annuities, annual reset annuities and multi-year guaranteed annuities
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DSI
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Deferred sales inducement
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Excess capital
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Capital in excess of the level management believes is needed to support our current operating strategy
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FIA
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Fixed indexed annuity, which is an insurance contract that earns interest at a crediting rate based on a specified index on a tax-deferred basis
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Fixed annuities
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FIAs together with fixed rate annuities
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Fixed rate annuity
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An insurance contract that offers tax-deferred growth and the opportunity to produce a guaranteed stream of retirement income for the lifetime of its policyholder
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Flow reinsurance
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A transaction in which the ceding company cedes a portion of newly issued policies to the reinsurer
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GAAP
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Accounting principles generally accepted in the United States of America
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GLWB
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Guaranteed lifetime withdrawal benefit
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GMDB
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Guaranteed minimum death benefit
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IMA
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Investment management agreement
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IMO
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Independent marketing organization
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Invested assets
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The sum of (a) total investments on the consolidated balance sheet with available-for-sale securities at amortized cost, excluding derivatives, (b) cash and cash equivalents and restricted cash, (c) investments in related parties, (d) accrued investment income, (e) consolidated variable interest entities’ assets, liabilities and noncontrolling interest and (f) policy loans ceded (which offset the direct policy loans in total investments). Invested assets includes investments supporting assumed funds withheld and modco agreements and excludes assets associated with funds withheld liabilities related to business exited through reinsurance agreements and derivative collateral (offsetting the related cash positions)
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Investment margin
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Investment margin applies to deferred annuities and is the excess of our net investment earned rate over the cost of crediting to our policyholders, presented on an annualized basis for interim periods
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Liability outflows
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The aggregate of withdrawals on our deferred annuities, maturities of our funding agreements, payments on payout annuities, and pension risk benefit payments
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MMS
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Minimum margin of solvency
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Modco
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Modified coinsurance
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Term or Acronym
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Definition
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MVA
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Market value adjustment
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MYGA
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Multi-year guaranteed annuity
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Net investment earned rate
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Income from our invested assets divided by the average invested assets for the relevant period, presented on an annualized basis for interim periods
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Net investment spread
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Net investment spread measures our investment performance less the total cost of our liabilities, presented on an annualized basis for interim periods
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Other liability costs
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Other liability costs include DAC, DSI and VOBA amortization, rider reserves, institutional costs, the cost of liabilities on products other than deferred annuities including offsets for premiums, product charges and other revenues
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OTTI
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Other-than-temporary impairment
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Payout annuities
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Annuities with a current cash payment component, which consist primarily of single premium immediate annuities, supplemental contracts and structured settlements
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Policy loan
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A loan to a policyholder under the terms of, and which is secured by, a policyholder’s policy
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PRT
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Pension risk transfer
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RBC
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Risk-based capital
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Reserve liabilities
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The sum of (a) interest sensitive contract liabilities, (b) future policy benefits, (c) dividends payable to policyholders, and (d) other policy claims and benefits, offset by reinsurance recoverable, excluding policy loans ceded. Reserve liabilities also includes the reserves related to assumed modco agreements in order to appropriately match the costs incurred in the consolidated statements of income with the liabilities. Reserve liabilities is net of the ceded liabilities to third-party reinsurers as the costs of the liabilities are passed to such reinsurers and therefore we have no net economic exposure to such liabilities, assuming our reinsurance counterparties perform under our agreements
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Rider reserves
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Guaranteed lifetime withdrawal benefits and guaranteed minimum death benefits reserves
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RMBS
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Residential mortgage-backed securities
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RML
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Residential mortgage loan
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Sales
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All money paid into an individual annuity, including money paid into new contracts with initial purchase occurring in the specified period and existing contracts with initial purchase occurring prior to the specified period (excluding internal transfers)
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SPIA
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Single premium immediate annuity
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Surplus assets
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Assets in excess of policyholder obligations, determined in accordance with the applicable domiciliary jurisdiction’s statutory accounting principles
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TAC
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Total adjusted capital as defined by the model created by the NAIC
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U.S. RBC Ratio
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The CAL RBC ratio for AADE, our parent U.S. insurance company
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VIE
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Variable interest entity
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VOBA
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Value of business acquired
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(In millions)
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September 30, 2019
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December 31, 2018
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Assets
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Investments
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Available-for-sale securities, at fair value (amortized cost: 2019 – $66,866 and 2018 – $60,025)
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$
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70,903
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$
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59,265
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Trading securities, at fair value
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2,411
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1,949
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Equity securities, at fair value
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359
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216
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Mortgage loans, net of allowances (portion at fair value: 2019 – $28 and 2018 – $32)
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13,465
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10,340
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Investment funds (portion at fair value: 2019 – $156 and 2018 – $182)
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712
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|
703
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Policy loans
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466
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488
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Funds withheld at interest (portion at fair value: 2019 – $804 and 2018 – $57)
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15,280
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15,023
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Derivative assets
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2,386
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1,043
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Short-term investments, at fair value
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571
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191
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Other investments (portion at fair value: 2019 – $64 and 2018 – $52)
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130
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122
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Total investments
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106,683
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89,340
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Cash and cash equivalents
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3,833
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2,911
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Restricted cash
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199
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492
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Investments in related parties
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Available-for-sale securities, at fair value (amortized cost: 2019 – $2,347 and 2018 – $1,462)
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2,368
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1,437
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Trading securities, at fair value
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306
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249
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Equity securities, at fair value
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381
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120
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Mortgage loans
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653
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291
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Investment funds (portion at fair value: 2019 – $249 and 2018 – $201)
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2,763
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2,232
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Funds withheld at interest (portion at fair value: 2019 – $655 and 2018 – $(110))
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13,560
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13,577
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Other investments
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387
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386
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Accrued investment income (related party: 2019 – $28 and 2018 – $25)
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781
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682
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Reinsurance recoverable (related party: 2019 – $320 and 2018 – $344; portion at fair value: 2019 – $1,954 and 2018 – $1,676)
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5,697
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5,534
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Deferred acquisition costs, deferred sales inducements and value of business acquired
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4,960
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5,907
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Other assets (related party: 2019 – $2 and 2018 – $357)
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970
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1,635
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Assets of consolidated variable interest entities
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Investments
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Trading securities, at fair value (related party: 2019 – $1 and 2018 – $35)
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19
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35
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Equity securities, at fair value – related party
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6
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50
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Investment funds (related party: 2019 – $599 and 2018 – $583; portion at fair value: 2019 – $569 and 2018 – $567)
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619
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624
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Cash and cash equivalents
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3
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2
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Other assets
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14
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1
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Total assets
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$
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144,202
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$
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125,505
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(In millions, except per share data)
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September 30, 2019
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December 31, 2018
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Liabilities and Equity
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Liabilities
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Interest sensitive contract liabilities (related party: 2019 – $15,693 and 2018 – $16,850; portion at fair value: 2019 – $11,415 and 2018 – $8,901)
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$
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101,666
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$
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96,610
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Future policy benefits (related party: 2019 – $1,474 and 2018 – $1,259; portion at fair value: 2019 – $2,369 and 2018 – $2,173)
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22,909
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16,704
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Other policy claims and benefits (related party: 2019 – $9 and 2018 – $10)
|
129
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|
142
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Dividends payable to policyholders
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115
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|
|
118
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|
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Long-term debt
|
992
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|
|
991
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Derivative liabilities
|
46
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|
|
85
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|
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Payables for collateral on derivatives
|
2,323
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|
|
969
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|
||
Funds withheld liability (related party: 2019 – $347 and 2018 – $337; portion at fair value: 2019 – $35 and 2018 – $(1))
|
768
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|
|
721
|
|
||
Other liabilities (related party: 2019 – $85 and 2018 – $59)
|
1,708
|
|
|
888
|
|
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Liabilities of consolidated variable interest entities
|
1
|
|
|
1
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|
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Total liabilities
|
130,657
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|
|
117,229
|
|
||
Commitments and Contingencies (Note 10)
|
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|
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Equity
|
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|
|
||||
Preferred stock
|
|
|
|
||||
Series A – par value $1 per share; $863 aggregate liquidation preference; authorized, issued and outstanding: 2019 and 2018 – 0.0 shares
|
—
|
|
|
—
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|
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Series B – par value $1 per share; $345 aggregate liquidation preference; authorized, issued and outstanding: 2019 and 2018 – 0.0 shares
|
—
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|
—
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Common stock
|
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|
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Class A – par value $0.001 per share; authorized: 2019 and 2018 – 425.0 shares; issued and outstanding: 2019 – 150.1 and 2018 – 162.4 shares
|
—
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|
—
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|
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Class B – par value $0.001 per share; convertible to Class A; authorized: 2019 and 2018 – 325.0 shares; issued and outstanding: 2019 – 25.4 and 2018 – 25.4 shares
|
—
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|
|
—
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Class M-1 – par value $0.001 per share; convertible to Class A; authorized: 2019 and 2018 – 7.1 shares; issued and outstanding: 2019 – 3.3 and 2018 – 3.4 shares
|
—
|
|
|
—
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|
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Class M-2 – par value $0.001 per share; convertible to Class A; authorized: 2019 and 2018 – 5.0 shares; issued and outstanding: 2019 – 0.8 and 2018 – 0.8 shares
|
—
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|
|
—
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|
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Class M-3 – par value $0.001 per share; convertible to Class A; authorized: 2019 and 2018 – 7.5 shares; issued and outstanding: 2019 – 1.0 and 2018 – 1.0 shares
|
—
|
|
|
—
|
|
||
Class M-4 – par value $0.001 per share; convertible to Class A; authorized: 2019 and 2018 – 7.5 shares; issued and outstanding: 2019 – 4.0 and 2018 – 4.1 shares
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
4,435
|
|
|
3,462
|
|
||
Retained earnings
|
6,668
|
|
|
5,286
|
|
||
Accumulated other comprehensive income (loss) (related party: 2019 – $22 and 2018 – $(25))
|
2,442
|
|
|
(472
|
)
|
||
Total shareholders’ equity
|
13,545
|
|
|
8,276
|
|
||
Total liabilities and equity
|
$
|
144,202
|
|
|
$
|
125,505
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Premiums (related party of $51 and $41 for the three months ended and $173 and $623 for the nine months ended September 30, 2019 and 2018, respectively)
|
$
|
2,605
|
|
|
$
|
526
|
|
|
$
|
5,304
|
|
|
$
|
1,535
|
|
Product charges (related party of $14 and $14 for the three months ended and $42 and $19 for the nine months ended September 30, 2019 and 2018, respectively)
|
135
|
|
|
119
|
|
|
392
|
|
|
321
|
|
||||
Net investment income (related party investment income of $155 and $193 for the three months ended and $472 and $369 for the nine months ended September 30, 2019 and 2018, respectively, and related party investment expense of $127 and $88 for the three months ended and $313 and $257 for the nine months ended September 30, 2019 and 2018, respectively)
|
1,070
|
|
|
1,070
|
|
|
3,297
|
|
|
2,883
|
|
||||
Investment related gains (losses) (related party of $272 and $30 for the three months ended and $1,018 and $(12) for the nine months ended September 30, 2019 and 2018, respectively)
|
688
|
|
|
816
|
|
|
3,776
|
|
|
578
|
|
||||
Other-than-temporary impairment investment losses
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment losses
|
(34
|
)
|
|
(7
|
)
|
|
(43
|
)
|
|
(10
|
)
|
||||
Other-than-temporary impairment losses reclassified to (from) other comprehensive income
|
9
|
|
|
4
|
|
|
11
|
|
|
4
|
|
||||
Net other-than-temporary impairment losses
|
(25
|
)
|
|
(3
|
)
|
|
(32
|
)
|
|
(6
|
)
|
||||
Other revenues
|
6
|
|
|
10
|
|
|
27
|
|
|
22
|
|
||||
Revenues of consolidated variable interest entities
|
|
|
|
|
|
|
|
||||||||
Net investment income (related party of $20 and $15 for the three months ended and $56 and $39 for the nine months ended September 30, 2019 and 2018, respectively)
|
20
|
|
|
15
|
|
|
57
|
|
|
39
|
|
||||
Investment related gains (losses) (related party of $1 and $23 for the three months ended and $7 and $17 for the nine months ended September 30, 2019 and 2018, respectively)
|
2
|
|
|
23
|
|
|
10
|
|
|
17
|
|
||||
Total revenues
|
4,501
|
|
|
2,576
|
|
|
12,831
|
|
|
5,389
|
|
||||
Benefits and expenses
|
|
|
|
|
|
|
|
||||||||
Interest sensitive contract benefits (related party of $97 and $129 for the three months ended and $394 and $145 for the nine months ended September 30, 2019 and 2018, respectively)
|
801
|
|
|
742
|
|
|
3,411
|
|
|
1,115
|
|
||||
Amortization of deferred sales inducements
|
20
|
|
|
23
|
|
|
38
|
|
|
66
|
|
||||
Future policy and other policy benefits (related party of $70 and $58 for the three months ended and $267 and $638 for the nine months ended September 30, 2019 and 2018, respectively)
|
2,872
|
|
|
928
|
|
|
6,224
|
|
|
2,193
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
323
|
|
|
36
|
|
|
815
|
|
|
207
|
|
||||
Dividends to policyholders
|
12
|
|
|
10
|
|
|
30
|
|
|
32
|
|
||||
Policy and other operating expenses (related party of $10 and $22 for the three months ended and $30 and $27 for the nine months ended September 30, 2019 and 2018, respectively)
|
194
|
|
|
158
|
|
|
544
|
|
|
454
|
|
||||
Total benefits and expenses
|
4,222
|
|
|
1,897
|
|
|
11,062
|
|
|
4,067
|
|
||||
Income before income taxes
|
279
|
|
|
679
|
|
|
1,769
|
|
|
1,322
|
|
||||
Income tax expense (benefit)
|
(14
|
)
|
|
56
|
|
|
48
|
|
|
165
|
|
||||
Net income
|
293
|
|
|
623
|
|
|
1,721
|
|
|
1,157
|
|
||||
Less: Preferred stock dividends
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
Net income available to Athene Holding Ltd. common shareholders
|
$
|
276
|
|
|
$
|
623
|
|
|
$
|
1,704
|
|
|
$
|
1,157
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic – Classes A, B, M-1, M-2, M-3 and M-4
|
$
|
1.50
|
|
|
$
|
3.16
|
|
|
$
|
8.97
|
|
|
$
|
5.86
|
|
Diluted – Class A
|
1.50
|
|
|
3.15
|
|
|
8.95
|
|
|
5.85
|
|
||||
Diluted – Class B
|
1.50
|
|
|
3.16
|
|
|
8.97
|
|
|
5.86
|
|
||||
Diluted – Class M-1
|
1.50
|
|
|
3.16
|
|
|
8.97
|
|
|
5.86
|
|
||||
Diluted – Class M-2
|
1.50
|
|
|
3.16
|
|
|
8.97
|
|
|
5.83
|
|
||||
Diluted – Class M-3
|
1.50
|
|
|
3.16
|
|
|
8.97
|
|
|
5.83
|
|
||||
Diluted – Class M-4
|
1.29
|
|
|
2.42
|
|
|
7.77
|
|
|
4.36
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
293
|
|
|
$
|
623
|
|
|
$
|
1,721
|
|
|
$
|
1,157
|
|
Other comprehensive income (loss), before tax
|
|
|
|
|
|
|
|
||||||||
Unrealized investment gains (losses) on available-for-sale securities
|
744
|
|
|
(140
|
)
|
|
3,484
|
|
|
(1,733
|
)
|
||||
Noncredit component of other-than-temporary impairment losses on available-for-sale securities
|
(9
|
)
|
|
(4
|
)
|
|
(11
|
)
|
|
(4
|
)
|
||||
Unrealized gains on hedging instruments
|
124
|
|
|
7
|
|
|
171
|
|
|
52
|
|
||||
Pension adjustments
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
3
|
|
||||
Foreign currency translation adjustments
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(10
|
)
|
||||
Other comprehensive income (loss), before tax
|
858
|
|
|
(137
|
)
|
|
3,642
|
|
|
(1,692
|
)
|
||||
Income tax expense (benefit) related to other comprehensive income (loss)
|
176
|
|
|
(23
|
)
|
|
728
|
|
|
(318
|
)
|
||||
Other comprehensive income (loss)
|
682
|
|
|
(114
|
)
|
|
2,914
|
|
|
(1,374
|
)
|
||||
Comprehensive income (loss)
|
$
|
975
|
|
|
$
|
509
|
|
|
$
|
4,635
|
|
|
$
|
(217
|
)
|
|
Three months ended
|
||||||||||||||||||||||
(In millions)
|
Preferred stock
|
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Total shareholders’ equity
|
||||||||||||
Balance at June 30, 2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,492
|
|
|
$
|
4,823
|
|
|
$
|
147
|
|
|
$
|
8,462
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
623
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(114
|
)
|
|
(114
|
)
|
||||||
Issuance of common shares, net of expenses
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Balance at September 30, 2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,499
|
|
|
$
|
5,446
|
|
|
$
|
33
|
|
|
$
|
8,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at June 30, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,144
|
|
|
$
|
6,461
|
|
|
$
|
1,760
|
|
|
$
|
12,365
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
293
|
|
|
—
|
|
|
293
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
682
|
|
|
682
|
|
||||||
Issuance of preferred shares, net of expenses
|
—
|
|
|
—
|
|
|
333
|
|
|
—
|
|
|
—
|
|
|
333
|
|
||||||
Issuance of common shares, net of expenses
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Retirement or repurchase of shares
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(69
|
)
|
|
—
|
|
|
(121
|
)
|
||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Balance at September 30, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,435
|
|
|
$
|
6,668
|
|
|
$
|
2,442
|
|
|
$
|
13,545
|
|
|
Nine months ended
|
||||||||||||||||||||||
(In millions)
|
Preferred stock
|
|
Common stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Total shareholders’ equity
|
||||||||||||
Balance at December 31, 2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,472
|
|
|
$
|
4,255
|
|
|
$
|
1,449
|
|
|
$
|
9,176
|
|
Adoption of accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
(42
|
)
|
|
(3
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,157
|
|
|
—
|
|
|
1,157
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,374
|
)
|
|
(1,374
|
)
|
||||||
Issuance of common shares, net of expenses
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
Retirement or repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Balance at September 30, 2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,499
|
|
|
$
|
5,446
|
|
|
$
|
33
|
|
|
$
|
8,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,462
|
|
|
$
|
5,286
|
|
|
$
|
(472
|
)
|
|
$
|
8,276
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,721
|
|
|
—
|
|
|
1,721
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,914
|
|
|
2,914
|
|
||||||
Issuance of preferred shares, net of expenses
|
—
|
|
|
—
|
|
|
1,172
|
|
|
—
|
|
|
—
|
|
|
1,172
|
|
||||||
Issuance of common shares, net of expenses
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
||||||
Retirement or repurchase of shares
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
(322
|
)
|
|
|
|
|
(548
|
)
|
||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Balance at September 30, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,435
|
|
|
$
|
6,668
|
|
|
$
|
2,442
|
|
|
$
|
13,545
|
|
|
Nine months ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
1,721
|
|
|
$
|
1,157
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
815
|
|
|
207
|
|
||
Amortization of deferred sales inducements
|
38
|
|
|
66
|
|
||
Accretion of net investment premiums, discounts and other
|
(60
|
)
|
|
(143
|
)
|
||
Payment at inception of reinsurance agreements, net (related party: 2019 – $0 and 2018 – $(407))
|
—
|
|
|
(394
|
)
|
||
Net investment (income) loss (related party: 2019 – $(95) and 2018 – $(77))
|
(94
|
)
|
|
(61
|
)
|
||
Net recognized (gains) losses on investments and derivatives (related party: 2019 – $(19) and 2018 – $(5))
|
(1,672
|
)
|
|
(559
|
)
|
||
Policy acquisition costs deferred
|
(521
|
)
|
|
(495
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accrued investment income (related party: 2019 – $(3) and 2018 – $(13))
|
(99
|
)
|
|
(70
|
)
|
||
Interest sensitive contract liabilities (related party: 2019 – $338 and 2018 – $126)
|
3,086
|
|
|
591
|
|
||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2019 – $223 and 2018 – $54)
|
973
|
|
|
997
|
|
||
Funds withheld assets and liabilities (related party: 2019 – $(1,261) and 2018 – $(114))
|
(2,488
|
)
|
|
(232
|
)
|
||
Other assets and liabilities
|
299
|
|
|
97
|
|
||
Consolidated variable interest entities related:
|
|
|
|
||||
Net recognized (gains) losses on investments and derivatives (related party: 2019 – $(7) and 2018 – $(18))
|
(10
|
)
|
|
(18
|
)
|
||
Other operating activities, net
|
(3
|
)
|
|
—
|
|
||
Net cash provided by operating activities
|
1,985
|
|
|
1,143
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Sales, maturities and repayments of:
|
|
|
|
||||
Available-for-sale securities (related party: 2019 – $101 and 2018 – $120)
|
8,344
|
|
|
9,003
|
|
||
Trading securities (related party: 2019 – $32 and 2018 – $30)
|
162
|
|
|
320
|
|
||
Equity securities
|
69
|
|
|
25
|
|
||
Mortgage loans (related party: 2019 – $4 and 2018 – $0)
|
1,513
|
|
|
1,048
|
|
||
Investment funds (related party: 2019 – $196 and 2018 – $197)
|
301
|
|
|
330
|
|
||
Derivative instruments and other invested assets
|
1,008
|
|
|
1,548
|
|
||
Short-term investments (related party: 2019 – $0 and 2018 – $162)
|
274
|
|
|
430
|
|
||
Purchases of:
|
|
|
|
||||
Available-for-sale securities (related party: 2019 – $(1,065) and 2018 – $(784))
|
(11,413
|
)
|
|
(12,029
|
)
|
||
Trading securities (related party: 2019 – $(6) and 2018 – $0)
|
(425
|
)
|
|
(17
|
)
|
||
Equity securities (related party: 2019 – $(243) and 2018 – $0)
|
(421
|
)
|
|
(163
|
)
|
||
Mortgage loans (related party: 2019 – $(366) and 2018 – $(389))
|
(5,013
|
)
|
|
(4,079
|
)
|
||
Investment funds (related party: 2019 – $(621) and 2018 – $(894))
|
(738
|
)
|
|
(1,073
|
)
|
||
Derivative instruments and other invested assets (related party: 2019 – $0 and 2018 – $(150))
|
(853
|
)
|
|
(973
|
)
|
||
Short-term investments (related party: 2019 – $0 and 2018 – $(121))
|
(653
|
)
|
|
(421
|
)
|
||
Consolidated variable interest entities related:
|
|
|
|
||||
Sales, maturities and repayments of investments (related party: 2019 – $84 and 2018 – $103)
|
92
|
|
|
114
|
|
||
Purchases of investments (related party: 2019 – $(16) and 2018 – $(14))
|
(27
|
)
|
|
(66
|
)
|
||
Deconsolidation of Athora Holding Ltd.
|
—
|
|
|
(296
|
)
|
||
Other investing activities, net
|
521
|
|
|
245
|
|
||
Net cash used in investing activities
|
(7,259
|
)
|
|
(6,054
|
)
|
||
|
|
|
(Continued)
|
|
|||
See accompanying notes to the unaudited condensed consolidated financial statements
|
|
|
|
|
Nine months ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from short-term debt
|
$
|
—
|
|
|
$
|
183
|
|
Repayment of short-term debt
|
—
|
|
|
(183
|
)
|
||
Proceeds from long-term debt
|
—
|
|
|
998
|
|
||
Deposits on investment-type policies and contracts (related party: 2019 – $130 and 2018 – $140)
|
8,879
|
|
|
7,011
|
|
||
Withdrawals on investment-type policies and contracts (related party: 2019 – $(332) and 2018 – $(143))
|
(4,846
|
)
|
|
(4,254
|
)
|
||
Payments (for) from coinsurance agreements on investment-type contracts, net
|
(39
|
)
|
|
9
|
|
||
Net change in cash collateral posted for derivative transactions
|
1,354
|
|
|
(8
|
)
|
||
Issuance of preferred stock, net of expenses
|
1,172
|
|
|
—
|
|
||
Preferred stock dividends
|
(17
|
)
|
|
—
|
|
||
Repurchase of common stock
|
(548
|
)
|
|
(5
|
)
|
||
Other financing activities, net
|
(51
|
)
|
|
106
|
|
||
Net cash provided by financing activities
|
5,904
|
|
|
3,857
|
|
||
Net increase (decrease) in cash and cash equivalents
|
630
|
|
|
(1,054
|
)
|
||
Cash and cash equivalents at beginning of year1
|
3,405
|
|
|
4,997
|
|
||
Cash and cash equivalents at end of period1
|
$
|
4,035
|
|
|
$
|
3,943
|
|
|
|
|
|
||||
Supplementary information
|
|
|
|
||||
Non-cash transactions
|
|
|
|
||||
Deposits on investment-type policies and contracts through reinsurance agreements (related party: 2019 – $159 and 2018 – $17,574)
|
$
|
619
|
|
|
$
|
18,508
|
|
Withdrawals on investment-type policies and contracts through reinsurance agreements (related party: 2019 – $1,351 and 2018 – $604)
|
2,764
|
|
|
899
|
|
||
Investments received from settlements on reinsurance agreements
|
56
|
|
|
36
|
|
||
Investments received from settlements on related party reinsurance agreements
|
97
|
|
|
—
|
|
||
Investments received from pension risk transfer premiums
|
4,506
|
|
|
92
|
|
||
Investments exchanged for related party investments
|
—
|
|
|
95
|
|
||
Investment in Athora Holding Ltd. received upon deconsolidation
|
—
|
|
|
108
|
|
||
|
|
|
|
||||
1 Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities.
|
•
|
Our non-U.S. reinsurance subsidiaries, to which AHL’s other insurance subsidiaries and third-party ceding companies directly and indirectly reinsure a portion of their liabilities, including Athene Life Re Ltd. (ALRe), a Bermuda exempted company; and
|
•
|
Athene USA Corporation, an Iowa corporation (together with its subsidiaries, Athene USA).
|
•
|
The update requires cash flow assumptions used to measure the liability for future policy benefits to be updated at least annually and no longer allows a provision for adverse deviation. The remeasurement of the liability associated with the update of assumptions is required to be recognized in net income. Loss recognition testing is eliminated for traditional and limited-payment contracts. The update also requires the discount rate utilized in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting date. The change in liability due to changes in the discount rate is to be recognized in other comprehensive income.
|
•
|
The update simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs are required to be written off for unexpected contract terminations but are not subject to impairment testing.
|
•
|
The update requires certain contract features meeting the definition of market risk benefits to be measured at fair value. Among the features included in this definition are the guaranteed lifetime withdrawal benefits (GLWB) and guaranteed minimum death benefit (GMDB) riders attached to the Company’s annuity products. The change in fair value of the market risk benefits is to be recognized in net income, excluding the portion attributable to changes in instrument-specific credit risk which is recognized in other comprehensive income.
|
•
|
The update also introduces disclosure requirements around the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. This includes disaggregated rollforwards of these balances and information about significant inputs, judgments, assumptions and methods used in their measurement.
|
|
September 30, 2019
|
||||||||||||||||||
(In millions)
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
OTTI
in AOCI
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agencies
|
$
|
36
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
U.S. state, municipal and political subdivisions
|
1,233
|
|
|
260
|
|
|
(1
|
)
|
|
1,492
|
|
|
—
|
|
|||||
Foreign governments
|
301
|
|
|
27
|
|
|
—
|
|
|
328
|
|
|
—
|
|
|||||
Corporate
|
43,948
|
|
|
3,415
|
|
|
(318
|
)
|
|
47,045
|
|
|
9
|
|
|||||
CLO
|
7,044
|
|
|
15
|
|
|
(188
|
)
|
|
6,871
|
|
|
—
|
|
|||||
ABS
|
4,967
|
|
|
164
|
|
|
(20
|
)
|
|
5,111
|
|
|
2
|
|
|||||
CMBS
|
2,639
|
|
|
130
|
|
|
(4
|
)
|
|
2,765
|
|
|
7
|
|
|||||
RMBS
|
6,698
|
|
|
565
|
|
|
(9
|
)
|
|
7,254
|
|
|
12
|
|
|||||
Total AFS securities
|
66,866
|
|
|
4,577
|
|
|
(540
|
)
|
|
70,903
|
|
|
30
|
|
|||||
AFS securities – related party
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
23
|
|
|
1
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
CLO
|
834
|
|
|
1
|
|
|
(17
|
)
|
|
818
|
|
|
—
|
|
|||||
ABS
|
1,490
|
|
|
36
|
|
|
—
|
|
|
1,526
|
|
|
—
|
|
|||||
Total AFS securities – related party
|
2,347
|
|
|
38
|
|
|
(17
|
)
|
|
2,368
|
|
|
—
|
|
|||||
Total AFS securities including related party
|
$
|
69,213
|
|
|
$
|
4,615
|
|
|
$
|
(557
|
)
|
|
$
|
73,271
|
|
|
$
|
30
|
|
|
December 31, 2018
|
||||||||||||||||||
(In millions)
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
OTTI
in AOCI
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agencies
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
$
|
—
|
|
U.S. state, municipal and political subdivisions
|
1,183
|
|
|
117
|
|
|
(7
|
)
|
|
1,293
|
|
|
—
|
|
|||||
Foreign governments
|
162
|
|
|
2
|
|
|
(3
|
)
|
|
161
|
|
|
—
|
|
|||||
Corporate
|
38,018
|
|
|
394
|
|
|
(1,315
|
)
|
|
37,097
|
|
|
1
|
|
|||||
CLO
|
5,658
|
|
|
2
|
|
|
(299
|
)
|
|
5,361
|
|
|
—
|
|
|||||
ABS
|
4,915
|
|
|
53
|
|
|
(48
|
)
|
|
4,920
|
|
|
—
|
|
|||||
CMBS
|
2,390
|
|
|
27
|
|
|
(60
|
)
|
|
2,357
|
|
|
7
|
|
|||||
RMBS
|
7,642
|
|
|
413
|
|
|
(36
|
)
|
|
8,019
|
|
|
11
|
|
|||||
Total AFS securities
|
60,025
|
|
|
1,008
|
|
|
(1,768
|
)
|
|
59,265
|
|
|
19
|
|
|||||
AFS securities – related party
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
587
|
|
|
—
|
|
|
(25
|
)
|
|
562
|
|
|
—
|
|
|||||
ABS
|
875
|
|
|
4
|
|
|
(4
|
)
|
|
875
|
|
|
—
|
|
|||||
Total AFS securities – related party
|
1,462
|
|
|
4
|
|
|
(29
|
)
|
|
1,437
|
|
|
—
|
|
|||||
Total AFS securities including related party
|
$
|
61,487
|
|
|
$
|
1,012
|
|
|
$
|
(1,797
|
)
|
|
$
|
60,702
|
|
|
$
|
19
|
|
|
September 30, 2019
|
||||||
(In millions)
|
Amortized Cost
|
|
Fair Value
|
||||
AFS securities
|
|
|
|
||||
Due in one year or less
|
$
|
1,117
|
|
|
$
|
1,122
|
|
Due after one year through five years
|
9,246
|
|
|
9,540
|
|
||
Due after five years through ten years
|
11,319
|
|
|
11,907
|
|
||
Due after ten years
|
23,836
|
|
|
26,333
|
|
||
CLO, ABS, CMBS and RMBS
|
21,348
|
|
|
22,001
|
|
||
Total AFS securities
|
66,866
|
|
|
70,903
|
|
||
AFS securities – related party
|
|
|
|
||||
Due in one year or less
|
5
|
|
|
5
|
|
||
Due after one year through five years
|
18
|
|
|
19
|
|
||
CLO and ABS
|
2,324
|
|
|
2,344
|
|
||
Total AFS securities – related party
|
2,347
|
|
|
2,368
|
|
||
Total AFS securities including related party
|
$
|
69,213
|
|
|
$
|
73,271
|
|
|
September 30, 2019
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(In millions)
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Gross
Unrealized Losses |
||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
U.S. state, municipal and political subdivisions
|
13
|
|
|
—
|
|
|
22
|
|
|
(1
|
)
|
|
35
|
|
|
(1
|
)
|
||||||
Corporate
|
1,808
|
|
|
(215
|
)
|
|
1,313
|
|
|
(103
|
)
|
|
3,121
|
|
|
(318
|
)
|
||||||
CLO
|
3,128
|
|
|
(69
|
)
|
|
2,354
|
|
|
(119
|
)
|
|
5,482
|
|
|
(188
|
)
|
||||||
ABS
|
435
|
|
|
(5
|
)
|
|
245
|
|
|
(15
|
)
|
|
680
|
|
|
(20
|
)
|
||||||
CMBS
|
110
|
|
|
(2
|
)
|
|
99
|
|
|
(2
|
)
|
|
209
|
|
|
(4
|
)
|
||||||
RMBS
|
468
|
|
|
(7
|
)
|
|
78
|
|
|
(2
|
)
|
|
546
|
|
|
(9
|
)
|
||||||
Total AFS securities
|
5,962
|
|
|
(298
|
)
|
|
4,113
|
|
|
(242
|
)
|
|
10,075
|
|
|
(540
|
)
|
||||||
AFS securities – related party
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CLO
|
400
|
|
|
(8
|
)
|
|
181
|
|
|
(9
|
)
|
|
581
|
|
|
(17
|
)
|
||||||
Total AFS securities – related party
|
400
|
|
|
(8
|
)
|
|
181
|
|
|
(9
|
)
|
|
581
|
|
|
(17
|
)
|
||||||
Total AFS securities including related party
|
$
|
6,362
|
|
|
$
|
(306
|
)
|
|
$
|
4,294
|
|
|
$
|
(251
|
)
|
|
$
|
10,656
|
|
|
$
|
(557
|
)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(In millions)
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agencies
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
U.S. state, municipal and political subdivisions
|
139
|
|
|
(2
|
)
|
|
82
|
|
|
(5
|
)
|
|
221
|
|
|
(7
|
)
|
||||||
Foreign governments
|
97
|
|
|
(2
|
)
|
|
15
|
|
|
(1
|
)
|
|
112
|
|
|
(3
|
)
|
||||||
Corporate
|
20,213
|
|
|
(942
|
)
|
|
4,118
|
|
|
(373
|
)
|
|
24,331
|
|
|
(1,315
|
)
|
||||||
CLO
|
5,054
|
|
|
(297
|
)
|
|
90
|
|
|
(2
|
)
|
|
5,144
|
|
|
(299
|
)
|
||||||
ABS
|
1,336
|
|
|
(23
|
)
|
|
506
|
|
|
(25
|
)
|
|
1,842
|
|
|
(48
|
)
|
||||||
CMBS
|
932
|
|
|
(27
|
)
|
|
497
|
|
|
(33
|
)
|
|
1,429
|
|
|
(60
|
)
|
||||||
RMBS
|
1,417
|
|
|
(31
|
)
|
|
140
|
|
|
(5
|
)
|
|
1,557
|
|
|
(36
|
)
|
||||||
Total AFS securities
|
29,220
|
|
|
(1,324
|
)
|
|
5,450
|
|
|
(444
|
)
|
|
34,670
|
|
|
(1,768
|
)
|
||||||
AFS securities – related party
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CLO
|
534
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
534
|
|
|
(25
|
)
|
||||||
ABS
|
306
|
|
|
(2
|
)
|
|
116
|
|
|
(2
|
)
|
|
422
|
|
|
(4
|
)
|
||||||
Total AFS securities – related party
|
840
|
|
|
(27
|
)
|
|
116
|
|
|
(2
|
)
|
|
956
|
|
|
(29
|
)
|
||||||
Total AFS securities including related party
|
$
|
30,060
|
|
|
$
|
(1,351
|
)
|
|
$
|
5,566
|
|
|
$
|
(446
|
)
|
|
$
|
35,626
|
|
|
$
|
(1,797
|
)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Beginning balance
|
$
|
13
|
|
|
$
|
7
|
|
|
$
|
10
|
|
|
$
|
14
|
|
Initial impairments – credit loss OTTI recognized on securities not previously impaired
|
9
|
|
|
3
|
|
|
11
|
|
|
4
|
|
||||
Additional impairments – credit loss OTTI recognized on securities previously impaired
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Reduction in impairments from securities sold, matured or repaid
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Ending balance
|
$
|
23
|
|
|
$
|
10
|
|
|
$
|
23
|
|
|
$
|
10
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
AFS securities
|
$
|
760
|
|
|
$
|
730
|
|
|
$
|
2,276
|
|
|
$
|
2,117
|
|
Trading securities
|
48
|
|
|
52
|
|
|
139
|
|
|
150
|
|
||||
Equity securities
|
4
|
|
|
4
|
|
|
11
|
|
|
8
|
|
||||
Mortgage loans
|
173
|
|
|
120
|
|
|
483
|
|
|
315
|
|
||||
Investment funds
|
76
|
|
|
56
|
|
|
188
|
|
|
179
|
|
||||
Funds withheld at interest
|
106
|
|
|
169
|
|
|
403
|
|
|
301
|
|
||||
Other
|
32
|
|
|
28
|
|
|
116
|
|
|
74
|
|
||||
Investment revenue
|
1,199
|
|
|
1,159
|
|
|
3,616
|
|
|
3,144
|
|
||||
Investment expenses
|
(129
|
)
|
|
(89
|
)
|
|
(319
|
)
|
|
(261
|
)
|
||||
Net investment income
|
$
|
1,070
|
|
|
$
|
1,070
|
|
|
$
|
3,297
|
|
|
$
|
2,883
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
AFS securities
|
|
|
|
|
|
|
|
||||||||
Gross realized gains on investment activity
|
$
|
47
|
|
|
$
|
56
|
|
|
$
|
120
|
|
|
$
|
128
|
|
Gross realized losses on investment activity
|
(21
|
)
|
|
(50
|
)
|
|
(38
|
)
|
|
(93
|
)
|
||||
Net realized investment gains on AFS securities
|
26
|
|
|
6
|
|
|
82
|
|
|
35
|
|
||||
Net recognized investment gains (losses) on trading securities
|
48
|
|
|
(49
|
)
|
|
176
|
|
|
(214
|
)
|
||||
Net recognized investment gains (losses) on equity securities
|
(3
|
)
|
|
(2
|
)
|
|
16
|
|
|
2
|
|
||||
Derivative gains
|
620
|
|
|
860
|
|
|
3,493
|
|
|
722
|
|
||||
Other gains (losses)
|
(3
|
)
|
|
1
|
|
|
9
|
|
|
33
|
|
||||
Investment related gains (losses)
|
$
|
688
|
|
|
$
|
816
|
|
|
$
|
3,776
|
|
|
$
|
578
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Trading securities
|
$
|
46
|
|
|
$
|
(8
|
)
|
|
$
|
215
|
|
|
$
|
(118
|
)
|
Trading securities – related party
|
3
|
|
|
(12
|
)
|
|
(13
|
)
|
|
(18
|
)
|
||||
VIE trading securities – related party
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||||
Equity securities
|
—
|
|
|
(2
|
)
|
|
20
|
|
|
2
|
|
||||
VIE equity securities – related party
|
—
|
|
|
13
|
|
|
(2
|
)
|
|
(26
|
)
|
(In millions)
|
Fixed maturity securities
|
|
Mortgage loans
|
||||
Contractually required payments receivable
|
$
|
141
|
|
|
$
|
1,163
|
|
Cash flows expected to be collected
|
117
|
|
|
1,126
|
|
||
Fair value
|
105
|
|
|
905
|
|
|
Three months ended September 30, 2019
|
|
Nine months ended September 30, 2019
|
||||||||||||
(In millions)
|
Fixed maturity securities
|
|
Mortgage loans
|
|
Fixed maturity securities
|
|
Mortgage loans
|
||||||||
Beginning balance
|
$
|
1,382
|
|
|
$
|
860
|
|
|
$
|
1,677
|
|
|
$
|
697
|
|
Purchases of PCI investments, net of sales
|
(1
|
)
|
|
2
|
|
|
5
|
|
|
155
|
|
||||
Accretion
|
(64
|
)
|
|
(22
|
)
|
|
(236
|
)
|
|
(83
|
)
|
||||
Net reclassification from (to) non-accretable difference
|
(60
|
)
|
|
46
|
|
|
(189
|
)
|
|
117
|
|
||||
Ending balance at September 30
|
$
|
1,257
|
|
|
$
|
886
|
|
|
$
|
1,257
|
|
|
$
|
886
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Commercial mortgage loans
|
$
|
9,593
|
|
|
$
|
7,217
|
|
Commercial mortgage loans under development
|
108
|
|
|
80
|
|
||
Total commercial mortgage loans
|
9,701
|
|
|
7,297
|
|
||
Residential mortgage loans
|
4,417
|
|
|
3,334
|
|
||
Mortgage loans, net of allowances
|
$
|
14,118
|
|
|
$
|
10,631
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except for percentages)
|
Net Carrying Value
|
|
Percentage of Total
|
|
Net Carrying Value
|
|
Percentage of Total
|
||||||
Property type
|
|
|
|
|
|
|
|
||||||
Office building
|
$
|
2,673
|
|
|
27.6
|
%
|
|
$
|
2,221
|
|
|
30.5
|
%
|
Retail
|
2,167
|
|
|
22.4
|
%
|
|
1,660
|
|
|
22.7
|
%
|
||
Hotels
|
1,028
|
|
|
10.6
|
%
|
|
1,040
|
|
|
14.3
|
%
|
||
Industrial
|
1,382
|
|
|
14.2
|
%
|
|
1,196
|
|
|
16.4
|
%
|
||
Apartment
|
1,749
|
|
|
18.0
|
%
|
|
791
|
|
|
10.8
|
%
|
||
Other commercial
|
702
|
|
|
7.2
|
%
|
|
389
|
|
|
5.3
|
%
|
||
Total commercial mortgage loans
|
$
|
9,701
|
|
|
100.0
|
%
|
|
$
|
7,297
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
U.S. Region
|
|
|
|
|
|
|
|
||||||
East North Central
|
$
|
961
|
|
|
9.9
|
%
|
|
$
|
855
|
|
|
11.7
|
%
|
East South Central
|
435
|
|
|
4.5
|
%
|
|
295
|
|
|
4.0
|
%
|
||
Middle Atlantic
|
2,185
|
|
|
22.5
|
%
|
|
1,131
|
|
|
15.5
|
%
|
||
Mountain
|
667
|
|
|
6.9
|
%
|
|
616
|
|
|
8.4
|
%
|
||
New England
|
346
|
|
|
3.6
|
%
|
|
374
|
|
|
5.1
|
%
|
||
Pacific
|
2,400
|
|
|
24.7
|
%
|
|
1,540
|
|
|
21.1
|
%
|
||
South Atlantic
|
1,678
|
|
|
17.3
|
%
|
|
1,468
|
|
|
20.2
|
%
|
||
West North Central
|
174
|
|
|
1.8
|
%
|
|
173
|
|
|
2.4
|
%
|
||
West South Central
|
771
|
|
|
7.9
|
%
|
|
845
|
|
|
11.6
|
%
|
||
Total U.S. Region
|
9,617
|
|
|
99.1
|
%
|
|
7,297
|
|
|
100.0
|
%
|
||
International Region
|
84
|
|
|
0.9
|
%
|
|
—
|
|
|
—
|
%
|
||
Total commercial mortgage loans
|
$
|
9,701
|
|
|
100.0
|
%
|
|
$
|
7,297
|
|
|
100.0
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||
U.S. States
|
|
|
|
||
California
|
27.9
|
%
|
|
30.3
|
%
|
Florida
|
12.8
|
%
|
|
16.3
|
%
|
Texas
|
5.9
|
%
|
|
3.3
|
%
|
New York
|
3.4
|
%
|
|
7.7
|
%
|
Other1
|
37.5
|
%
|
|
42.4
|
%
|
Total U.S. residential mortgage loan percentage
|
87.5
|
%
|
|
100.0
|
%
|
International
|
12.5
|
%
|
|
—
|
%
|
Total residential mortgage loan percentage
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
||
1Represents all other states, with each individual state comprising less than 5% of the portfolio.
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Less than 50%
|
$
|
2,525
|
|
|
$
|
1,883
|
|
50% to 60%
|
2,403
|
|
|
1,988
|
|
||
61% to 70%
|
3,590
|
|
|
2,394
|
|
||
71% to 80%
|
1,075
|
|
|
898
|
|
||
81% to 100%
|
—
|
|
|
54
|
|
||
Commercial mortgage loans
|
$
|
9,593
|
|
|
$
|
7,217
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Greater than 1.20x
|
$
|
8,301
|
|
|
$
|
6,576
|
|
1.00x – 1.20x
|
625
|
|
|
474
|
|
||
Less than 1.00x
|
667
|
|
|
167
|
|
||
Commercial mortgage loans
|
$
|
9,593
|
|
|
$
|
7,217
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
(In millions)
|
Carrying Value
|
|
Maximum Loss Exposure
|
|
Carrying Value
|
|
Maximum Loss Exposure
|
||||||||
Investment funds
|
$
|
712
|
|
|
$
|
1,237
|
|
|
$
|
703
|
|
|
$
|
1,329
|
|
Investment in related parties – investment funds
|
2,763
|
|
|
5,057
|
|
|
2,232
|
|
|
4,331
|
|
||||
Assets of consolidated VIEs – investment funds
|
619
|
|
|
714
|
|
|
624
|
|
|
727
|
|
||||
Investment in fixed maturity securities
|
22,541
|
|
|
21,888
|
|
|
21,188
|
|
|
21,139
|
|
||||
Investment in related parties – fixed maturity securities
|
2,650
|
|
|
2,707
|
|
|
1,686
|
|
|
1,788
|
|
||||
Investment in related parties – equity securities
|
381
|
|
|
381
|
|
|
120
|
|
|
120
|
|
||||
Total non-consolidated investments
|
$
|
29,666
|
|
|
$
|
31,984
|
|
|
$
|
26,553
|
|
|
$
|
29,434
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
||||||||||||||
(In millions)
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency swaps
|
2,811
|
|
|
$
|
216
|
|
|
$
|
17
|
|
|
2,041
|
|
|
$
|
83
|
|
|
$
|
55
|
|
Foreign currency forwards
|
1,130
|
|
|
9
|
|
|
5
|
|
|
85
|
|
|
—
|
|
|
1
|
|
||||
Total derivatives designated as hedges
|
|
|
225
|
|
|
22
|
|
|
|
|
83
|
|
|
56
|
|
||||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity options
|
49,288
|
|
|
2,123
|
|
|
8
|
|
|
49,821
|
|
|
942
|
|
|
11
|
|
||||
Futures
|
8
|
|
|
7
|
|
|
1
|
|
|
4
|
|
|
9
|
|
|
3
|
|
||||
Total return swaps
|
70
|
|
|
—
|
|
|
1
|
|
|
62
|
|
|
—
|
|
|
3
|
|
||||
Foreign currency swaps
|
38
|
|
|
3
|
|
|
—
|
|
|
38
|
|
|
3
|
|
|
2
|
|
||||
Interest rate swaps
|
310
|
|
|
—
|
|
|
2
|
|
|
326
|
|
|
—
|
|
|
1
|
|
||||
Credit default swaps
|
10
|
|
|
—
|
|
|
4
|
|
|
10
|
|
|
—
|
|
|
4
|
|
||||
Foreign currency forwards
|
1,718
|
|
|
28
|
|
|
8
|
|
|
646
|
|
|
6
|
|
|
5
|
|
||||
Embedded derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Funds withheld including related party
|
—
|
|
|
1,459
|
|
|
35
|
|
|
—
|
|
|
(53
|
)
|
|
(1
|
)
|
||||
Interest sensitive contract liabilities
|
—
|
|
|
—
|
|
|
10,273
|
|
|
—
|
|
|
—
|
|
|
7,969
|
|
||||
Total derivatives not designated as hedges
|
|
|
3,620
|
|
|
10,332
|
|
|
|
|
907
|
|
|
7,997
|
|
||||||
Total derivatives
|
|
|
$
|
3,845
|
|
|
$
|
10,354
|
|
|
|
|
$
|
990
|
|
|
$
|
8,053
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Equity options
|
$
|
77
|
|
|
$
|
756
|
|
|
$
|
1,365
|
|
|
$
|
703
|
|
Futures
|
(3
|
)
|
|
1
|
|
|
(17
|
)
|
|
(3
|
)
|
||||
Swaps
|
8
|
|
|
1
|
|
|
37
|
|
|
(6
|
)
|
||||
Foreign currency forwards
|
42
|
|
|
3
|
|
|
47
|
|
|
10
|
|
||||
Embedded derivatives on funds withheld
|
496
|
|
|
99
|
|
|
2,061
|
|
|
18
|
|
||||
Amounts recognized in investment related gains (losses)
|
620
|
|
|
860
|
|
|
3,493
|
|
|
722
|
|
||||
Embedded derivatives in indexed annuity products1
|
(265
|
)
|
|
(469
|
)
|
|
(1,920
|
)
|
|
(178
|
)
|
||||
Total gains (losses) on derivatives not designated as hedges
|
$
|
355
|
|
|
$
|
391
|
|
|
$
|
1,573
|
|
|
$
|
544
|
|
|
|
|
|
|
|
|
|
||||||||
1 Included in interest sensitive contract benefits on the condensed consolidated statements of income.
|
|
|
|
|
Gross amounts not offset on the condensed consolidated balance sheets
|
|
|
|
|
|
|
||||||||||||||
(In millions)
|
Gross amount recognized1
|
|
Financial instruments2
|
|
Collateral received/pledged
|
|
Net amount
|
|
Off-balance sheet securities collateral3
|
|
Net amount after securities collateral
|
|||||||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Derivative assets
|
$
|
2,386
|
|
|
$
|
(42
|
)
|
|
$
|
(2,323
|
)
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
Derivative liabilities
|
(46
|
)
|
|
42
|
|
|
13
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Derivative assets
|
$
|
1,043
|
|
|
$
|
(52
|
)
|
|
$
|
(969
|
)
|
|
$
|
22
|
|
|
$
|
(4
|
)
|
|
$
|
18
|
|
|
Derivative liabilities
|
(85
|
)
|
|
52
|
|
|
24
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1
|
The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2019 and December 31, 2018, amounts not subject to master netting or similar agreements were immaterial.
|
|||||||||||||||||||||||
2
|
Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets.
|
|||||||||||||||||||||||
3
|
For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received.
|
•
|
Quoted prices for similar assets or liabilities in active markets,
|
•
|
Observable inputs other than quoted market prices, and
|
•
|
Observable inputs derived principally from market data through correlation or other means.
|
|
September 30, 2019
|
||||||||||||||||||
(In millions)
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agencies
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. state, municipal and political subdivisions
|
1,492
|
|
|
—
|
|
|
—
|
|
|
1,452
|
|
|
40
|
|
|||||
Foreign governments
|
328
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|
—
|
|
|||||
Corporate
|
47,045
|
|
|
—
|
|
|
—
|
|
|
46,098
|
|
|
947
|
|
|||||
CLO
|
6,871
|
|
|
—
|
|
|
—
|
|
|
6,740
|
|
|
131
|
|
|||||
ABS
|
5,111
|
|
|
—
|
|
|
—
|
|
|
3,823
|
|
|
1,288
|
|
|||||
CMBS
|
2,765
|
|
|
—
|
|
|
—
|
|
|
2,434
|
|
|
331
|
|
|||||
RMBS
|
7,254
|
|
|
—
|
|
|
—
|
|
|
7,254
|
|
|
—
|
|
|||||
Total AFS securities
|
70,903
|
|
|
—
|
|
|
37
|
|
|
68,129
|
|
|
2,737
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agencies
|
6
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|||||
U.S. state, municipal and political subdivisions
|
140
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|||||
Foreign governments
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
Corporate
|
1,701
|
|
|
—
|
|
|
—
|
|
|
1,701
|
|
|
—
|
|
|||||
CLO
|
32
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
6
|
|
|||||
ABS
|
92
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
83
|
|
|||||
CMBS
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|||||
RMBS
|
365
|
|
|
—
|
|
|
—
|
|
|
274
|
|
|
91
|
|
|||||
Total trading securities
|
2,411
|
|
|
—
|
|
|
3
|
|
|
2,228
|
|
|
180
|
|
|||||
Equity securities
|
359
|
|
|
—
|
|
|
45
|
|
|
313
|
|
|
1
|
|
|||||
Mortgage loans
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||
Investment funds
|
156
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Funds withheld at interest – embedded derivative
|
804
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
804
|
|
|||||
Derivative assets
|
2,386
|
|
|
—
|
|
|
7
|
|
|
2,379
|
|
|
—
|
|
|||||
Short-term investments
|
571
|
|
|
—
|
|
|
54
|
|
|
291
|
|
|
226
|
|
|||||
Other investments
|
64
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|||||
Cash and cash equivalents
|
3,833
|
|
|
—
|
|
|
3,833
|
|
|
—
|
|
|
—
|
|
|||||
Restricted cash
|
199
|
|
|
—
|
|
|
199
|
|
|
—
|
|
|
—
|
|
|||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
CLO
|
818
|
|
|
—
|
|
|
—
|
|
|
818
|
|
|
—
|
|
|||||
ABS
|
1,526
|
|
|
—
|
|
|
—
|
|
|
532
|
|
|
994
|
|
|||||
Total AFS securities – related party
|
2,368
|
|
|
—
|
|
|
—
|
|
|
1,374
|
|
|
994
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
82
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
41
|
|
|||||
ABS
|
224
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
224
|
|
|||||
Total trading securities – related party
|
306
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
265
|
|
|||||
Equity securities
|
381
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|||||
Investment funds
|
249
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|||||
Funds withheld at interest – embedded derivative
|
655
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
655
|
|
|||||
Reinsurance recoverable
|
1,954
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,954
|
|
|||||
Assets of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
Equity securities
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Investment funds
|
569
|
|
|
556
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Cash and cash equivalents
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
88,224
|
|
|
$
|
812
|
|
|
$
|
4,181
|
|
|
$
|
74,819
|
|
|
$
|
8,412
|
|
|
|
|
|
|
|
|
|
|
(Continued)
|
|
|
September 30, 2019
|
||||||||||||||||||
(In millions)
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest sensitive contract liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivative
|
$
|
10,273
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,273
|
|
Universal life benefits
|
1,142
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,142
|
|
|||||
Future policy benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
AmerUs Life Insurance Company (AmerUs) Closed Block
|
1,572
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,572
|
|
|||||
Indianapolis Life Insurance Company (ILICO) Closed Block and life benefits
|
797
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
797
|
|
|||||
Derivative liabilities
|
46
|
|
|
—
|
|
|
1
|
|
|
41
|
|
|
4
|
|
|||||
Funds withheld liability – embedded derivative
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|||||
Total liabilities measured at fair value
|
$
|
13,865
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
76
|
|
|
$
|
13,788
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
|
December 31, 2018
|
||||||||||||||||||
(In millions)
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agencies
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
3
|
|
|
$
|
—
|
|
U.S. state, municipal and political subdivisions
|
1,293
|
|
|
—
|
|
|
—
|
|
|
1,293
|
|
|
—
|
|
|||||
Foreign governments
|
161
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
—
|
|
|||||
Corporate
|
37,097
|
|
|
—
|
|
|
—
|
|
|
36,199
|
|
|
898
|
|
|||||
CLO
|
5,361
|
|
|
—
|
|
|
—
|
|
|
5,254
|
|
|
107
|
|
|||||
ABS
|
4,920
|
|
|
—
|
|
|
—
|
|
|
3,305
|
|
|
1,615
|
|
|||||
CMBS
|
2,357
|
|
|
—
|
|
|
—
|
|
|
2,170
|
|
|
187
|
|
|||||
RMBS
|
8,019
|
|
|
—
|
|
|
—
|
|
|
7,963
|
|
|
56
|
|
|||||
Total AFS securities
|
59,265
|
|
|
—
|
|
|
54
|
|
|
56,348
|
|
|
2,863
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agencies
|
5
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|||||
U.S. state, municipal and political subdivisions
|
126
|
|
|
—
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|||||
Corporate
|
1,287
|
|
|
—
|
|
|
—
|
|
|
1,287
|
|
|
—
|
|
|||||
CLO
|
9
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|||||
ABS
|
87
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
—
|
|
|||||
CMBS
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|||||
RMBS
|
386
|
|
|
—
|
|
|
—
|
|
|
252
|
|
|
134
|
|
|||||
Total trading securities
|
1,949
|
|
|
—
|
|
|
3
|
|
|
1,811
|
|
|
135
|
|
|||||
Equity securities
|
216
|
|
|
—
|
|
|
40
|
|
|
173
|
|
|
3
|
|
|||||
Mortgage loans
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
Investment funds
|
182
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|||||
Funds withheld at interest – embedded derivative
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|||||
Derivative assets
|
1,043
|
|
|
—
|
|
|
9
|
|
|
1,034
|
|
|
—
|
|
|||||
Short-term investments
|
191
|
|
|
—
|
|
|
66
|
|
|
125
|
|
|
—
|
|
|||||
Other investments
|
52
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|||||
Cash and cash equivalents
|
2,911
|
|
|
—
|
|
|
2,911
|
|
|
—
|
|
|
—
|
|
|||||
Restricted cash
|
492
|
|
|
—
|
|
|
492
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
(Continued)
|
|
|
December 31, 2018
|
||||||||||||||||||
(In millions)
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
562
|
|
|
—
|
|
|
—
|
|
|
562
|
|
|
—
|
|
|||||
ABS
|
875
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|
328
|
|
|||||
Total AFS securities – related party
|
1,437
|
|
|
—
|
|
|
—
|
|
|
1,109
|
|
|
328
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
100
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
78
|
|
|||||
ABS
|
149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|||||
Total trading securities – related party
|
249
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
227
|
|
|||||
Equity securities
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|||||
Investment funds
|
201
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|||||
Funds withheld at interest – embedded derivative
|
(110
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(110
|
)
|
|||||
Reinsurance recoverable
|
1,676
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,676
|
|
|||||
Assets of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||
Equity securities
|
50
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
13
|
|
|||||
Investment funds
|
567
|
|
|
552
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Cash and cash equivalents
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
70,617
|
|
|
$
|
801
|
|
|
$
|
3,614
|
|
|
$
|
60,674
|
|
|
$
|
5,528
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest sensitive contract liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivative
|
$
|
7,969
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,969
|
|
Universal life benefits
|
932
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
932
|
|
|||||
Future policy benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
AmerUs Closed Block
|
1,443
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,443
|
|
|||||
ILICO Closed Block and life benefits
|
730
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
730
|
|
|||||
Derivative liabilities
|
85
|
|
|
—
|
|
|
3
|
|
|
78
|
|
|
4
|
|
|||||
Funds withheld liability – embedded derivative
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||
Total liabilities measured at fair value
|
$
|
11,158
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
77
|
|
|
$
|
11,078
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Trading securities
|
$
|
48
|
|
|
$
|
(49
|
)
|
|
$
|
176
|
|
|
$
|
(213
|
)
|
Mortgage loans
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Investment funds
|
3
|
|
|
13
|
|
|
3
|
|
|
28
|
|
||||
Future policy benefits
|
(37
|
)
|
|
21
|
|
|
(129
|
)
|
|
156
|
|
||||
Total gains (losses)
|
$
|
14
|
|
|
$
|
(15
|
)
|
|
$
|
51
|
|
|
$
|
(29
|
)
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Unpaid principal balance
|
$
|
25
|
|
|
$
|
30
|
|
Mark to fair value
|
3
|
|
|
2
|
|
||
Fair value
|
$
|
28
|
|
|
$
|
32
|
|
|
Three months ended September 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Total realized and unrealized gains (losses)
|
|
|
|
Transfers
|
|
|
|
|
||||||||||||||||||||
(In millions)
|
Beginning Balance
|
|
Included in income
|
|
Included in OCI
|
|
Net purchases, issuances, sales and settlements
|
|
In
|
|
(Out)
|
|
Ending Balance
|
|
Total gains (losses) included in earnings1
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. state, municipal and political subdivisions
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
—
|
|
Corporate
|
821
|
|
|
(3
|
)
|
|
10
|
|
|
189
|
|
|
1
|
|
|
(71
|
)
|
|
947
|
|
|
—
|
|
||||||||
CLO
|
200
|
|
|
—
|
|
|
1
|
|
|
34
|
|
|
—
|
|
|
(104
|
)
|
|
131
|
|
|
—
|
|
||||||||
ABS
|
1,396
|
|
|
1
|
|
|
12
|
|
|
16
|
|
|
—
|
|
|
(137
|
)
|
|
1,288
|
|
|
—
|
|
||||||||
CMBS
|
206
|
|
|
—
|
|
|
3
|
|
|
195
|
|
|
—
|
|
|
(73
|
)
|
|
331
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||||||
CLO
|
7
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||||
ABS
|
6
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
78
|
|
|
—
|
|
|
83
|
|
|
—
|
|
||||||||
RMBS
|
46
|
|
|
(5
|
)
|
|
—
|
|
|
15
|
|
|
35
|
|
|
—
|
|
|
91
|
|
|
(2
|
)
|
||||||||
Equity securities
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
||||||||
Mortgage loans
|
32
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||||||
Investment funds
|
25
|
|
|
(1)
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
22
|
|
|
(1)
|
|
||||||||
Funds withheld at interest – embedded derivative
|
704
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
804
|
|
|
—
|
|
||||||||
Short-term investments
|
45
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
—
|
|
||||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
||||||||
ABS
|
399
|
|
|
—
|
|
|
8
|
|
|
587
|
|
|
—
|
|
|
—
|
|
|
994
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
74
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(23
|
)
|
|
41
|
|
|
—
|
|
||||||||
ABS
|
218
|
|
|
4
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
224
|
|
|
5
|
|
||||||||
Equity securities
|
344
|
|
|
6
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|
—
|
|
||||||||
Investment funds
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
—
|
|
||||||||
Funds withheld at interest – embedded derivative
|
501
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
655
|
|
|
—
|
|
||||||||
Reinsurance recoverable
|
1,834
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,954
|
|
|
—
|
|
||||||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading securities
|
21
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||||
Equity securities
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||||
Investment funds
|
14
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
1
|
|
||||||||
Total Level 3 assets
|
$
|
7,112
|
|
|
$
|
369
|
|
|
$
|
34
|
|
|
$
|
1,236
|
|
|
$
|
114
|
|
|
$
|
(453
|
)
|
|
$
|
8,412
|
|
|
$
|
3
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest sensitive contract liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Embedded derivative
|
$
|
(9,905
|
)
|
|
$
|
(265
|
)
|
|
$
|
—
|
|
|
$
|
(103
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(10,273
|
)
|
|
$
|
—
|
|
Universal life benefits
|
(1,051
|
)
|
|
(91
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,142
|
)
|
|
—
|
|
||||||||
Future policy benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AmerUs Closed Block
|
(1,535
|
)
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,572
|
)
|
|
—
|
|
||||||||
ILICO Closed Block and life benefits
|
(769
|
)
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(797
|
)
|
|
—
|
|
||||||||
Derivative liabilities
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||||||
Total Level 3 liabilities
|
$
|
(13,264
|
)
|
|
$
|
(421
|
)
|
|
$
|
—
|
|
|
$
|
(103
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(13,788
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 Related to instruments held at end of period.
|
|
Three months ended September 30, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Total realized and unrealized gains (losses)
|
|
|
|
Transfers
|
|
|
|
|
||||||||||||||||||||
(In millions)
|
Beginning Balance
|
|
Included in income
|
|
Included in OCI
|
|
Net purchases, issuances, sales and settlements
|
|
In
|
|
(Out)
|
|
Ending Balance
|
|
Total gains (losses) included in earnings1
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
$
|
962
|
|
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
110
|
|
|
$
|
5
|
|
|
$
|
(109
|
)
|
|
$
|
964
|
|
|
$
|
—
|
|
CLO
|
281
|
|
|
—
|
|
|
(1
|
)
|
|
52
|
|
|
8
|
|
|
—
|
|
|
340
|
|
|
—
|
|
||||||||
ABS
|
1,447
|
|
|
1
|
|
|
1
|
|
|
55
|
|
|
161
|
|
|
(294
|
)
|
|
1,371
|
|
|
—
|
|
||||||||
CMBS
|
197
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
182
|
|
|
—
|
|
||||||||
RMBS
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. state, municipal and political subdivisions
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||||||
Corporate
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||||||
CLO
|
26
|
|
|
(2
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(10
|
)
|
|
3
|
|
|
1
|
|
||||||||
ABS
|
89
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
1
|
|
||||||||
RMBS
|
304
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
285
|
|
|
2
|
|
||||||||
Equity securities
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
Mortgage loans
|
38
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
||||||||
Investment funds
|
31
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
(1
|
)
|
||||||||
Funds withheld at interest – embedded derivative
|
150
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
—
|
|
||||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
39
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||||||
ABS
|
50
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|
—
|
|
|
—
|
|
|
331
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
114
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
76
|
|
|
(5
|
)
|
||||||||
ABS
|
164
|
|
|
(4
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
151
|
|
|
(4
|
)
|
||||||||
Investment funds
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
||||||||
Funds withheld at interest – embedded derivative
|
162
|
|
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|
—
|
|
||||||||
Short-term investments
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||||
Reinsurance recoverable
|
1,717
|
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,679
|
|
|
—
|
|
||||||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading securities
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
||||||||
Equity securities
|
26
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
(1
|
)
|
||||||||
Investment funds
|
1
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||||
Total Level 3 assets
|
$
|
5,991
|
|
|
$
|
(141
|
)
|
|
$
|
(5
|
)
|
|
$
|
491
|
|
|
$
|
174
|
|
|
$
|
(559
|
)
|
|
$
|
5,951
|
|
|
$
|
(7
|
)
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest sensitive contract liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Embedded derivative
|
$
|
(8,088
|
)
|
|
$
|
(469
|
)
|
|
$
|
—
|
|
|
$
|
(102
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8,659
|
)
|
|
$
|
—
|
|
Universal life benefits
|
(943
|
)
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(901
|
)
|
|
—
|
|
||||||||
Future policy benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AmerUs Closed Block
|
(1,490
|
)
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,469
|
)
|
|
—
|
|
||||||||
ILICO Closed Block and life benefits
|
(759
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(764
|
)
|
|
—
|
|
||||||||
Derivative liabilities
|
(5
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||||||
Total Level 3 liabilities
|
$
|
(11,285
|
)
|
|
$
|
(410
|
)
|
|
$
|
—
|
|
|
$
|
(102
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(11,797
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 Related to instruments held at end of period.
|
|
Nine months ended September 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Total realized and unrealized gains (losses)
|
|
|
|
Transfers
|
|
|
|
|
||||||||||||||||||||
(In millions)
|
Beginning Balance
|
|
Included in income
|
|
Included in OCI
|
|
Net purchases, issuances, sales and settlements
|
|
In
|
|
(Out)
|
|
Ending Balance
|
|
Total gains (losses) included in earnings1
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. state, municipal and political subdivisions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
—
|
|
Corporate
|
898
|
|
|
(2
|
)
|
|
20
|
|
|
164
|
|
|
1
|
|
|
(134
|
)
|
|
947
|
|
|
—
|
|
||||||||
CLO
|
107
|
|
|
—
|
|
|
3
|
|
|
60
|
|
|
—
|
|
|
(39
|
)
|
|
131
|
|
|
—
|
|
||||||||
ABS
|
1,615
|
|
|
6
|
|
|
43
|
|
|
43
|
|
|
—
|
|
|
(419
|
)
|
|
1,288
|
|
|
—
|
|
||||||||
CMBS
|
187
|
|
|
1
|
|
|
7
|
|
|
154
|
|
|
—
|
|
|
(18
|
)
|
|
331
|
|
|
—
|
|
||||||||
RMBS
|
56
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||||
ABS
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
78
|
|
|
—
|
|
|
83
|
|
|
—
|
|
||||||||
RMBS
|
134
|
|
|
(13
|
)
|
|
—
|
|
|
15
|
|
|
34
|
|
|
(79
|
)
|
|
91
|
|
|
3
|
|
||||||||
Equity securities
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
||||||||
Mortgage loans
|
32
|
|
|
1
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
28
|
|
|
1
|
|
||||||||
Investment funds
|
29
|
|
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
22
|
|
|
(2
|
)
|
||||||||
Funds withheld at interest – embedded derivative
|
57
|
|
|
747
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
804
|
|
|
—
|
|
||||||||
Short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
—
|
|
||||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities, ABS
|
328
|
|
|
—
|
|
|
21
|
|
|
748
|
|
|
—
|
|
|
(103
|
)
|
|
994
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
78
|
|
|
(6
|
)
|
|
—
|
|
|
(14
|
)
|
|
18
|
|
|
(35
|
)
|
|
41
|
|
|
2
|
|
||||||||
ABS
|
149
|
|
|
(13
|
)
|
|
—
|
|
|
(15
|
)
|
|
103
|
|
|
—
|
|
|
224
|
|
|
(13
|
)
|
||||||||
Equity securities
|
120
|
|
|
18
|
|
|
—
|
|
|
243
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|
—
|
|
||||||||
Investment funds
|
105
|
|
|
3
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
3
|
|
||||||||
Funds withheld at interest – embedded derivative
|
(110
|
)
|
|
765
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
655
|
|
|
—
|
|
||||||||
Reinsurance recoverable
|
1,676
|
|
|
278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,954
|
|
|
—
|
|
||||||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading securities
|
35
|
|
|
(1)
|
|
|
—
|
|
|
(40
|
)
|
|
25
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||||
Equity securities
|
13
|
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(2
|
)
|
||||||||
Investment funds
|
15
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||||
Total Level 3 assets
|
$
|
5,528
|
|
|
$
|
1,776
|
|
|
$
|
98
|
|
|
$
|
1,636
|
|
|
$
|
265
|
|
|
$
|
(891
|
)
|
|
$
|
8,412
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest sensitive contract liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Embedded derivative
|
$
|
(7,969
|
)
|
|
$
|
(1,920
|
)
|
|
$
|
—
|
|
|
$
|
(384
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(10,273
|
)
|
|
$
|
—
|
|
Universal life benefits
|
(932
|
)
|
|
(210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,142
|
)
|
|
—
|
|
||||||||
Future policy benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AmerUs Closed Block
|
(1,443
|
)
|
|
(129
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,572
|
)
|
|
—
|
|
||||||||
ILICO Closed Block and life benefits
|
(730
|
)
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(797
|
)
|
|
—
|
|
||||||||
Derivative liabilities
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||||||
Total Level 3 liabilities
|
$
|
(11,078
|
)
|
|
$
|
(2,326
|
)
|
|
$
|
—
|
|
|
$
|
(384
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(13,788
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 Related to instruments held at end of period.
|
|
Nine months ended September 30, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Total realized and unrealized gains (losses)
|
|
|
|
Transfers
|
|
|
|
|
||||||||||||||||||||
(In millions)
|
Beginning balance
|
|
Included in income
|
|
Included in OCI
|
|
Net purchases, issuances, sales and settlements
|
|
In
|
|
Out
|
|
Ending balance
|
|
Total gains (losses) included in earnings1
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
$
|
578
|
|
|
$
|
(3
|
)
|
|
$
|
(12
|
)
|
|
$
|
385
|
|
|
$
|
24
|
|
|
$
|
(8
|
)
|
|
$
|
964
|
|
|
$
|
—
|
|
CLO
|
64
|
|
|
2
|
|
|
—
|
|
|
264
|
|
|
10
|
|
|
—
|
|
|
340
|
|
|
—
|
|
||||||||
ABS
|
1,457
|
|
|
6
|
|
|
(17
|
)
|
|
(56
|
)
|
|
161
|
|
|
(180
|
)
|
|
1,371
|
|
|
—
|
|
||||||||
CMBS
|
137
|
|
|
1
|
|
|
(2
|
)
|
|
137
|
|
|
—
|
|
|
(91
|
)
|
|
182
|
|
|
—
|
|
||||||||
RMBS
|
301
|
|
|
3
|
|
|
(11
|
)
|
|
(26
|
)
|
|
—
|
|
|
(267
|
)
|
|
—
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. state, municipal and political subdivisions
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||||||
CLO
|
17
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
3
|
|
|
(3
|
)
|
||||||||
ABS
|
77
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
(2
|
)
|
||||||||
RMBS
|
342
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
285
|
|
|
4
|
|
||||||||
Equity securities
|
8
|
|
|
1
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||||||||
Mortgage loans
|
41
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
||||||||
Investment funds
|
41
|
|
|
(4
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||||||
Funds withheld at interest – embedded derivative
|
312
|
|
|
(161
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
—
|
|
||||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AFS Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||||||
ABS
|
4
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
331
|
|
|
—
|
|
||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CLO
|
105
|
|
|
(8
|
)
|
|
—
|
|
|
(18
|
)
|
|
18
|
|
|
(21
|
)
|
|
76
|
|
|
(4
|
)
|
||||||||
ABS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
—
|
|
|
151
|
|
|
—
|
|
||||||||
Investment funds
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
||||||||
Funds withheld at interest – embedded derivative
|
—
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|
—
|
|
||||||||
Short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||||
Reinsurance recoverable
|
1,824
|
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,679
|
|
|
—
|
|
||||||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading securities
|
48
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
48
|
|
|
1
|
|
||||||||
Equity securities
|
28
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
(3
|
)
|
||||||||
Investment funds
|
21
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
15
|
|
|
(3
|
)
|
||||||||
Total Level 3 assets
|
$
|
5,422
|
|
|
$
|
(291
|
)
|
|
$
|
(42
|
)
|
|
$
|
1,147
|
|
|
$
|
364
|
|
|
$
|
(649
|
)
|
|
$
|
5,951
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest sensitive contract liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Embedded derivative
|
$
|
(7,411
|
)
|
|
$
|
(178
|
)
|
|
$
|
—
|
|
|
$
|
(1,070
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8,659
|
)
|
|
$
|
—
|
|
Universal life benefits
|
(1,005
|
)
|
|
104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(901
|
)
|
|
—
|
|
||||||||
Future policy benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
AmerUs Closed Block
|
(1,625
|
)
|
|
156
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,469
|
)
|
|
—
|
|
||||||||
ILICO Closed Block and life benefits
|
(803
|
)
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(764
|
)
|
|
—
|
|
||||||||
Derivative liabilities
|
(5
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||||||
Total Level 3 liabilities
|
$
|
(10,849
|
)
|
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
(1,070
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(11,797
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 Related to instruments held at end of period.
|
|
Three months ended September 30, 2019
|
||||||||||||||||||
(In millions)
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Net purchases, issuances, sales and settlements
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
$
|
199
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
189
|
|
CLO
|
37
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
34
|
|
|||||
ABS
|
64
|
|
|
—
|
|
|
(21
|
)
|
|
(27
|
)
|
|
16
|
|
|||||
CMBS
|
251
|
|
|
—
|
|
|
(4
|
)
|
|
(52
|
)
|
|
195
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
ABS
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||
RMBS
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Mortgage loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||||
Investment funds
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Short-term investments
|
200
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
181
|
|
|||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities, ABS
|
587
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
587
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
ABS
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Equity securities
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Total Level 3 assets
|
$
|
1,386
|
|
|
$
|
—
|
|
|
$
|
(34
|
)
|
|
$
|
(116
|
)
|
|
$
|
1,236
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest sensitive contract liabilities – embedded derivative
|
$
|
—
|
|
|
$
|
(222
|
)
|
|
$
|
—
|
|
|
$
|
119
|
|
|
$
|
(103
|
)
|
Total Level 3 liabilities
|
$
|
—
|
|
|
$
|
(222
|
)
|
|
$
|
—
|
|
|
$
|
119
|
|
|
$
|
(103
|
)
|
|
Three months ended September 30, 2018
|
||||||||||||||||||
(In millions)
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Net purchases, issuances, sales and settlements
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
(31
|
)
|
|
$
|
110
|
|
CLO
|
79
|
|
|
—
|
|
|
(8
|
)
|
|
(19
|
)
|
|
52
|
|
|||||
ABS
|
111
|
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
|
55
|
|
|||||
CMBS
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||
Trading securities, CLO
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||||
Mortgage loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities, ABS
|
281
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|||||
Trading securities, ABS
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment funds
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Total Level 3 assets
|
$
|
642
|
|
|
$
|
—
|
|
|
$
|
(34
|
)
|
|
$
|
(117
|
)
|
|
$
|
491
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest sensitive contract liabilities – embedded derivative
|
$
|
—
|
|
|
$
|
(213
|
)
|
|
$
|
—
|
|
|
$
|
111
|
|
|
$
|
(102
|
)
|
Total Level 3 liabilities
|
$
|
—
|
|
|
$
|
(213
|
)
|
|
$
|
—
|
|
|
$
|
111
|
|
|
$
|
(102
|
)
|
|
Nine months ended September 30, 2019
|
||||||||||||||||||
(In millions)
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Net purchases, issuances, sales and settlements
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. state, municipal and political subdivisions
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
Corporate
|
277
|
|
|
—
|
|
|
(2
|
)
|
|
(111
|
)
|
|
164
|
|
|||||
CLO
|
64
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
60
|
|
|||||
ABS
|
260
|
|
|
—
|
|
|
(41
|
)
|
|
(176
|
)
|
|
43
|
|
|||||
CMBS
|
252
|
|
|
—
|
|
|
(4
|
)
|
|
(94
|
)
|
|
154
|
|
|||||
RMBS
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
ABS
|
6
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|||||
RMBS
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Mortgage loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||||
Investment funds
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Short-term investments
|
248
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
226
|
|
|||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities, ABS
|
757
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
748
|
|
|||||
Trading securities
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|||||
ABS
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|||||
Equity securities
|
243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
243
|
|
|||||
Investment funds
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
|||||
Equity securities
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Total Level 3 assets
|
$
|
2,183
|
|
|
$
|
—
|
|
|
$
|
(110
|
)
|
|
$
|
(437
|
)
|
|
$
|
1,636
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest sensitive contract liabilities – embedded derivative
|
$
|
—
|
|
|
$
|
(756
|
)
|
|
$
|
—
|
|
|
$
|
372
|
|
|
$
|
(384
|
)
|
Total Level 3 liabilities
|
$
|
—
|
|
|
$
|
(756
|
)
|
|
$
|
—
|
|
|
$
|
372
|
|
|
$
|
(384
|
)
|
|
Nine months ended September 30, 2018
|
||||||||||||||||||
(In millions)
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Net purchases, issuances, sales and settlements
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
$
|
460
|
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
|
$
|
(46
|
)
|
|
$
|
385
|
|
CLO
|
314
|
|
|
—
|
|
|
(8
|
)
|
|
(42
|
)
|
|
264
|
|
|||||
ABS
|
353
|
|
|
—
|
|
|
(21
|
)
|
|
(388
|
)
|
|
(56
|
)
|
|||||
CMBS
|
138
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
137
|
|
|||||
RMBS
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(26
|
)
|
|||||
Trading securities, CLO
|
7
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||||
Equity securities
|
1
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Mortgage loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||||
Investment funds
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
||||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
||||||||||
CLO
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
ABS
|
327
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|||||
Trading securities, CLO
|
30
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
(18
|
)
|
|||||
Investment funds
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
|||||
Short-term investments
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Investments of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Investment funds
|
14
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Total Level 3 assets
|
$
|
1,800
|
|
|
$
|
—
|
|
|
$
|
(139
|
)
|
|
$
|
(514
|
)
|
|
$
|
1,147
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest sensitive contract liabilities – embedded derivative
|
$
|
—
|
|
|
$
|
(1,343
|
)
|
|
$
|
—
|
|
|
$
|
273
|
|
|
$
|
(1,070
|
)
|
Total Level 3 liabilities
|
$
|
—
|
|
|
$
|
(1,343
|
)
|
|
$
|
—
|
|
|
$
|
273
|
|
|
$
|
(1,070
|
)
|
1.
|
Nonperformance risk – For contracts we issue, we use the credit spread, relative to the U.S. Department of the Treasury (Treasury) curve, based on our public credit rating as of the valuation date. This represents our credit risk for use in the estimate of the fair value of embedded derivatives.
|
2.
|
Option budget – We assume future hedge costs in the derivative’s fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth.
|
3.
|
Policyholder behavior – We regularly review the lapse and withdrawal assumptions (surrender rate). These are based on our initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products.
|
|
|
September 30, 2019
|
|||||||||||||
(In millions, except for percentages)
|
|
Fair value
|
|
Valuation technique
|
|
Unobservable inputs
|
|
Input/range of
inputs |
|
Impact of an increase in the input on fair value
|
|||||
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives
|
|
$
|
10,273
|
|
|
Option budget method
|
|
Nonperformance risk
|
|
0.0
|
%
|
–
|
1.3%
|
|
Decrease
|
|
|
|
|
|
|
Option budget
|
|
0.7
|
%
|
–
|
3.7%
|
|
Increase
|
||
|
|
|
|
|
|
Surrender rate
|
|
3.4
|
%
|
–
|
8.1%
|
|
Decrease
|
|
|
December 31, 2018
|
|||||||||||||
(In millions, except for percentages)
|
|
Fair value
|
|
Valuation technique
|
|
Unobservable inputs
|
|
Input/range of
inputs |
|
Impact of an increase in the input on fair value
|
|||||
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives
|
|
$
|
7,969
|
|
|
Option budget method
|
|
Nonperformance risk
|
|
0.3
|
%
|
–
|
1.5%
|
|
Decrease
|
|
|
|
|
|
|
Option budget
|
|
0.7
|
%
|
–
|
3.7%
|
|
Increase
|
||
|
|
|
|
|
|
Surrender rate
|
|
3.6
|
%
|
–
|
7.3%
|
|
Decrease
|
|
September 30, 2019
|
||||||||||||||||||||||
(In millions)
|
Carrying Value
|
|
Fair Value
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans
|
$
|
13,437
|
|
|
$
|
13,918
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,918
|
|
Investment funds
|
556
|
|
|
556
|
|
|
556
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Policy loans
|
466
|
|
|
466
|
|
|
—
|
|
|
—
|
|
|
466
|
|
|
—
|
|
||||||
Funds withheld at interest
|
14,476
|
|
|
14,476
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,476
|
|
||||||
Other investments
|
66
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans
|
653
|
|
|
645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
645
|
|
||||||
Investment funds
|
2,514
|
|
|
2,514
|
|
|
2,514
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Funds withheld at interest
|
12,905
|
|
|
12,905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,905
|
|
||||||
Other investments
|
387
|
|
|
419
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
419
|
|
||||||
Assets of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment funds
|
50
|
|
|
50
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total financial assets not carried at fair value
|
$
|
45,510
|
|
|
$
|
46,015
|
|
|
$
|
3,120
|
|
|
$
|
—
|
|
|
$
|
466
|
|
|
$
|
42,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest sensitive contract liabilities
|
$
|
56,391
|
|
|
$
|
57,241
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57,241
|
|
Long-term debt
|
992
|
|
|
1,029
|
|
|
—
|
|
|
—
|
|
|
1,029
|
|
|
—
|
|
||||||
Funds withheld liability
|
733
|
|
|
733
|
|
|
—
|
|
|
—
|
|
|
733
|
|
|
—
|
|
||||||
Total financial liabilities not carried at fair value
|
$
|
58,116
|
|
|
$
|
59,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,762
|
|
|
$
|
57,241
|
|
|
December 31, 2018
|
||||||||||||||||||||||
(In millions)
|
Carrying Value
|
|
Fair Value
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans
|
$
|
10,308
|
|
|
$
|
10,424
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,424
|
|
Investment funds
|
521
|
|
|
521
|
|
|
521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Policy loans
|
488
|
|
|
488
|
|
|
—
|
|
|
—
|
|
|
488
|
|
|
—
|
|
||||||
Funds withheld at interest
|
14,966
|
|
|
14,966
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,966
|
|
||||||
Other investments
|
70
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||||
Investments in related parties
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans
|
291
|
|
|
290
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
||||||
Investment funds
|
2,031
|
|
|
2,031
|
|
|
2,031
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Funds withheld at interest
|
13,687
|
|
|
13,687
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,687
|
|
||||||
Other investments
|
386
|
|
|
361
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
361
|
|
||||||
Assets of consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment funds
|
57
|
|
|
57
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total financial assets not carried at fair value
|
$
|
42,805
|
|
|
$
|
42,895
|
|
|
$
|
2,609
|
|
|
$
|
—
|
|
|
$
|
488
|
|
|
$
|
39,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest sensitive contract liabilities
|
$
|
54,655
|
|
|
$
|
51,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,655
|
|
Long-term debt
|
991
|
|
|
910
|
|
|
—
|
|
|
—
|
|
|
910
|
|
|
—
|
|
||||||
Funds withheld liability
|
722
|
|
|
722
|
|
|
—
|
|
|
—
|
|
|
722
|
|
|
—
|
|
||||||
Total financial liabilities not carried at fair value
|
$
|
56,368
|
|
|
$
|
53,287
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,632
|
|
|
$
|
51,655
|
|
(In millions)
|
DAC
|
|
DSI
|
|
VOBA
|
|
Total
|
||||||||
Balance at December 31, 2018
|
$
|
3,921
|
|
|
$
|
799
|
|
|
$
|
1,187
|
|
|
$
|
5,907
|
|
Additions
|
521
|
|
|
187
|
|
|
—
|
|
|
708
|
|
||||
Unlocking
|
(117
|
)
|
|
(9
|
)
|
|
(24
|
)
|
|
(150
|
)
|
||||
Amortization
|
(637
|
)
|
|
(29
|
)
|
|
(37
|
)
|
|
(703
|
)
|
||||
Impact of unrealized investment (gains) losses
|
(458
|
)
|
|
(141
|
)
|
|
(203
|
)
|
|
(802
|
)
|
||||
Balance at September 30, 2019
|
$
|
3,230
|
|
|
$
|
807
|
|
|
$
|
923
|
|
|
$
|
4,960
|
|
(In millions)
|
DAC
|
|
DSI
|
|
VOBA
|
|
Total
|
||||||||
Balance at December 31, 2017
|
$
|
1,375
|
|
|
$
|
520
|
|
|
$
|
1,077
|
|
|
$
|
2,972
|
|
Additions
|
1,791
|
|
|
197
|
|
|
—
|
|
|
1,988
|
|
||||
Unlocking
|
21
|
|
|
7
|
|
|
54
|
|
|
82
|
|
||||
Amortization
|
(146
|
)
|
|
(73
|
)
|
|
(136
|
)
|
|
(355
|
)
|
||||
Impact of unrealized investment (gains) losses
|
113
|
|
|
48
|
|
|
158
|
|
|
319
|
|
||||
Balance at September 30, 2018
|
$
|
3,154
|
|
|
$
|
699
|
|
|
$
|
1,153
|
|
|
$
|
5,006
|
|
|
Three months ended September 30, 2019
|
||||||||||||||||||||||
(In millions, except per share data)
|
Class A
|
|
Class B
|
|
Class M-1
|
|
Class M-2
|
|
Class M-3
|
|
Class M-4
|
||||||||||||
Net income available to Athene Holding Ltd. common shareholders – basic and diluted
|
$
|
227
|
|
|
$
|
38
|
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic weighted average shares outstanding
|
151.6
|
|
|
25.4
|
|
|
3.3
|
|
|
0.8
|
|
|
1.0
|
|
|
2.2
|
|
||||||
Dilutive effect of stock compensation plans
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||||
Diluted weighted average shares outstanding
|
152.0
|
|
|
25.4
|
|
|
3.3
|
|
|
0.8
|
|
|
1.0
|
|
|
2.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
Diluted
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
$
|
1.29
|
|
|
Three months ended September 30, 2018
|
||||||||||||||||||||||
(In millions, except share and per share data)
|
Class A
|
|
Class B
|
|
Class M-1
|
|
Class M-2
|
|
Class M-3
|
|
Class M-4
|
||||||||||||
Net income available to Athene Holding Ltd. common shareholders – basic and diluted
|
$
|
519
|
|
|
$
|
80
|
|
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic weighted average shares outstanding
|
164.5
|
|
|
25.5
|
|
|
3.4
|
|
|
0.8
|
|
|
1.0
|
|
|
2.1
|
|
||||||
Dilutive effect of stock compensation plans
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||||
Diluted weighted average shares outstanding
|
165.0
|
|
|
25.5
|
|
|
3.4
|
|
|
0.8
|
|
|
1.0
|
|
|
2.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
Diluted
|
$
|
3.15
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
2.42
|
|
|
Nine months ended September 30, 2019
|
||||||||||||||||||||||
(In millions, except share and per share data)
|
Class A
|
|
Class B
|
|
Class M-1
|
|
Class M-2
|
|
Class M-3
|
|
Class M-4
|
||||||||||||
Net income available to Athene Holding Ltd. common shareholders – basic and diluted
|
$
|
1,411
|
|
|
$
|
228
|
|
|
$
|
30
|
|
|
$
|
7
|
|
|
$
|
9
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic weighted average shares outstanding
|
157.2
|
|
|
25.4
|
|
|
3.3
|
|
|
0.8
|
|
|
1.0
|
|
|
2.2
|
|
||||||
Dilutive effect of stock compensation plans
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||||
Diluted weighted average shares outstanding
|
157.6
|
|
|
25.4
|
|
|
3.3
|
|
|
0.8
|
|
|
1.0
|
|
|
2.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
Diluted
|
$
|
8.95
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
8.97
|
|
|
$
|
7.77
|
|
|
Nine months ended September 30, 2018
|
||||||||||||||||||||||
(In millions, except per share data)
|
Class A
|
|
Class B
|
|
Class M-1
|
|
Class M-2
|
|
Class M-3
|
|
Class M-4
|
||||||||||||
Net income available to Athene Holding Ltd. common shareholders – basic and diluted
|
$
|
934
|
|
|
$
|
180
|
|
|
$
|
20
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic weighted average shares outstanding
|
159.3
|
|
|
30.6
|
|
|
3.4
|
|
|
0.8
|
|
|
1.0
|
|
|
2.1
|
|
||||||
Dilutive effect of stock compensation plans
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||||
Diluted weighted average shares outstanding
|
159.8
|
|
|
30.6
|
|
|
3.4
|
|
|
0.8
|
|
|
1.0
|
|
|
2.8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
5.86
|
|
|
$
|
5.86
|
|
|
$
|
5.86
|
|
|
$
|
5.86
|
|
|
$
|
5.86
|
|
|
$
|
5.86
|
|
Diluted
|
$
|
5.85
|
|
|
$
|
5.86
|
|
|
$
|
5.86
|
|
|
$
|
5.83
|
|
|
$
|
5.83
|
|
|
$
|
4.36
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
AFS securities
|
$
|
4,099
|
|
|
$
|
(766
|
)
|
DAC, DSI, VOBA and future policy benefits adjustments on AFS securities
|
(1,227
|
)
|
|
154
|
|
||
Noncredit component of OTTI losses on AFS securities
|
(30
|
)
|
|
(19
|
)
|
||
Hedging instruments
|
222
|
|
|
51
|
|
||
Pension adjustments
|
(3
|
)
|
|
(2
|
)
|
||
Foreign currency translation adjustments
|
(4
|
)
|
|
(3
|
)
|
||
Accumulated other comprehensive income (loss), before taxes
|
3,057
|
|
|
(585
|
)
|
||
Deferred income taxes
|
(615
|
)
|
|
113
|
|
||
Accumulated other comprehensive income (loss)
|
$
|
2,442
|
|
|
$
|
(472
|
)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Unrealized investment gains (losses) on AFS securities
|
|
|
|
|
|
|
|
||||||||
Unrealized investment gains (losses) on AFS securities
|
$
|
1,141
|
|
|
$
|
(191
|
)
|
|
$
|
4,899
|
|
|
$
|
(2,362
|
)
|
Change in DAC, DSI, VOBA and future policy benefits adjustment
|
(390
|
)
|
|
57
|
|
|
(1,381
|
)
|
|
665
|
|
||||
Less: Reclassification adjustment for gains (losses) realized in net income1
|
7
|
|
|
6
|
|
|
34
|
|
|
36
|
|
||||
Less: Income tax expense (benefit)
|
152
|
|
|
(24
|
)
|
|
694
|
|
|
(328
|
)
|
||||
Net unrealized investment gains (losses) on AFS securities
|
592
|
|
|
(116
|
)
|
|
2,790
|
|
|
(1,405
|
)
|
||||
Noncredit component of OTTI losses on AFS securities
|
|
|
|
|
|
|
|
||||||||
Noncredit component of OTTI losses on AFS securities
|
(9
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|
(4
|
)
|
||||
Less: Reclassification adjustment for losses realized in net income1
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Less: Income tax benefit
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
||||
Net noncredit component of OTTI losses on AFS securities
|
(7
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(3
|
)
|
||||
Unrealized gains (losses) on hedging instruments
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on hedging instruments
|
124
|
|
|
7
|
|
|
171
|
|
|
52
|
|
||||
Less: Income tax expense
|
26
|
|
|
2
|
|
|
36
|
|
|
11
|
|
||||
Net unrealized gains (losses) on hedging instruments
|
98
|
|
|
5
|
|
|
135
|
|
|
41
|
|
||||
Pension adjustments
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
3
|
|
||||
Foreign currency translation adjustments
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(10
|
)
|
||||
Change in AOCI from other comprehensive income (loss)
|
682
|
|
|
(114
|
)
|
|
2,914
|
|
|
(1,374
|
)
|
||||
Adoption of accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
||||
Change in AOCI
|
$
|
682
|
|
|
$
|
(114
|
)
|
|
$
|
2,914
|
|
|
$
|
(1,416
|
)
|
|
|
|
|
|
|
|
|
||||||||
1 Recognized in investment related gains (losses) on the condensed consolidated statements of income.
|
(1)
|
a base management fee equal to the sum of (i) 0.225% per year of the lesser of (A) the aggregate market value of substantially all of the assets in substantially all of the investment accounts of or relating to us (collectively, the Accounts) on December 31, 2018 of $103.4 billion (Backbook Value) and (B) the aggregate market value of substantially all of the assets in the Accounts at the end of the respective month, plus (ii) 0.15% per year of the amount, if any, by which the aggregate market value of substantially all of the assets in the Accounts at the end of the respective month exceeds the Backbook Value (Incremental Value); plus
|
(2)
|
with respect to each asset in an Account, subject to certain exceptions, that is managed by Apollo and that belongs to a specified asset class tier (Core, Core Plus, Yield, and High Alpha), a sub-allocation fee as follows, which will, in the case of assets acquired after January 1, 2019, be subject to a cap of 10% of the applicable asset’s gross book yield:
|
(i)
|
0.065% of the market value of Core assets, which include public investment grade corporate bonds, municipal securities, agency RMBS or CMBS, and obligations of governmental agencies or government sponsored entities that are not expressly backed by the U.S. government;
|
(ii)
|
0.13% of the market value of Core Plus assets, which include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans (CML), and certain obligations issued or assumed by financial institutions and determined by Apollo to be “Tier 2 Capital” under Basel III, a set of recommendations for international banking regulations developed by the Bank for International Settlements;
|
(iii)
|
0.375% of the market value of Yield assets, which include non-agency RMBS, investment grade CLO, CMBS and other ABS (other than RMBS and CLO), emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial institution, rated preferred equity, residential mortgage loans (RML), bank loans, investment grade infrastructure debt, and floating rate CMLs on slightly transitional or stabilized traditional real estate;
|
(iv)
|
0.70% of the market value of High Alpha assets, which include subordinated CML, below investment grade CLO, unrated preferred equity, debt obligations originated by MidCap, CMLs for redevelopment or construction loans or secured by non-traditional real estate, below investment grade infrastructure debt, certain loans originated directly by Apollo (other than MidCap loans), and agency mortgage derivatives; and
|
(v)
|
0.00% of the market value of cash and cash equivalents, U.S. treasuries, non-preferred equities and alternatives.
|
(In millions, except for percentages)
|
September 30, 2019
|
|
Percent of Total
|
|||
Core
|
$
|
33,514
|
|
|
26.8
|
%
|
Core Plus
|
31,770
|
|
|
25.4
|
%
|
|
Yield
|
46,081
|
|
|
36.8
|
%
|
|
High Alpha
|
4,347
|
|
|
3.5
|
%
|
|
Other
|
9,426
|
|
|
7.5
|
%
|
|
Total sub-allocation assets
|
$
|
125,138
|
|
|
100.0
|
%
|
(In millions, except for percentages)
|
December 31, 2018
|
||
AFS securities
|
|
||
Foreign governments
|
$
|
153
|
|
Corporate
|
3,398
|
|
|
CLO
|
5,703
|
|
|
ABS
|
663
|
|
|
CMBS
|
880
|
|
|
Trading securities
|
87
|
|
|
Equity securities
|
2
|
|
|
Mortgage loans
|
3,507
|
|
|
Investment funds
|
157
|
|
|
Funds withheld at interest
|
4,126
|
|
|
Other investments
|
70
|
|
|
Total assets sub-advised by Apollo affiliates
|
$
|
18,746
|
|
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets
|
18
|
%
|
(A)
|
To Apollo, sub-allocation fees on the senior notes based on the rates applicable to Yield assets and sub-allocation fees on the subordinated notes based on the rates applicable to High Alpha assets.
|
(B)
|
To Redding Ridge Asset Management LLC, a company in which certain funds managed by Apollo have an interest, as consideration for assistance with the structuring, monitoring, support and maintenance of the securitization transactions, a one-time structuring fee, as well as ongoing support fees equal to 1.5 bps on the total capitalization amount and certain other fees, which may become due upon the occurrence of certain events; and
|
(C)
|
To Merx Aviation Servicing Limited, a company externally managed by Apollo Investment Management, L.P., with respect to certain diligence, technical support and enforcement, remarketing and restructuring services with respect to the existing Aviation Loans and the Forward Flow Loans, a one-time servicing fee, as well as certain special situations fees, which may become due upon the occurrence of certain events.
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
AFS securities
|
$
|
7,766
|
|
|
$
|
5,439
|
|
Trading securities
|
368
|
|
|
68
|
|
||
Equity securities
|
18
|
|
|
2
|
|
||
Mortgage loans
|
2,565
|
|
|
1,830
|
|
||
Investment funds
|
67
|
|
|
53
|
|
||
Derivative assets
|
95
|
|
|
24
|
|
||
Short-term investments
|
32
|
|
|
77
|
|
||
Other investments
|
59
|
|
|
47
|
|
||
Restricted cash
|
199
|
|
|
492
|
|
||
Total restricted assets
|
$
|
11,169
|
|
|
$
|
8,032
|
|
•
|
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets;
|
•
|
Investment gains (losses), net of offsets;
|
•
|
VIE expenses and noncontrolling interest; and
|
•
|
Other adjustments to revenues.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Retirement Services
|
$
|
4,096
|
|
|
$
|
1,771
|
|
|
$
|
9,650
|
|
|
$
|
4,901
|
|
Corporate and Other
|
28
|
|
|
18
|
|
|
84
|
|
|
71
|
|
||||
Non-operating adjustments
|
|
|
|
|
|
|
|
||||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets
|
84
|
|
|
884
|
|
|
1,490
|
|
|
823
|
|
||||
Investment gains (losses), net of offsets
|
373
|
|
|
(89
|
)
|
|
1,768
|
|
|
(344
|
)
|
||||
VIE expenses and noncontrolling interest
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
||||
Other adjustments to revenues
|
(80
|
)
|
|
(7
|
)
|
|
(161
|
)
|
|
(63
|
)
|
||||
Total revenues
|
$
|
4,501
|
|
|
$
|
2,576
|
|
|
$
|
12,831
|
|
|
$
|
5,389
|
|
•
|
Investment gains (losses), net of offsets;
|
•
|
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets;
|
•
|
Integration, restructuring and other non-operating expenses;
|
•
|
Stock-based compensation, excluding the long-term incentive plan (LTIP); and
|
•
|
Income tax (expense) benefit – non-operating.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Retirement Services
|
$
|
256
|
|
|
$
|
379
|
|
|
$
|
918
|
|
|
$
|
905
|
|
Corporate and Other
|
(13
|
)
|
|
(8
|
)
|
|
(18
|
)
|
|
(5
|
)
|
||||
Non-operating adjustments
|
|
|
|
|
|
|
|
||||||||
Investment gains (losses), net of offsets
|
166
|
|
|
(53
|
)
|
|
1,041
|
|
|
(160
|
)
|
||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets
|
(117
|
)
|
|
376
|
|
|
(201
|
)
|
|
530
|
|
||||
Integration, restructuring and other non-operating expenses
|
(34
|
)
|
|
(2
|
)
|
|
(46
|
)
|
|
(18
|
)
|
||||
Stock-based compensation, excluding LTIP
|
(3
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(8
|
)
|
||||
Income tax (expense) benefit – non-operating
|
21
|
|
|
(66
|
)
|
|
19
|
|
|
(87
|
)
|
||||
Net income available to Athene Holding Ltd. common shareholders
|
$
|
276
|
|
|
$
|
623
|
|
|
$
|
1,704
|
|
|
$
|
1,157
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Retirement Services
|
$
|
141,501
|
|
|
$
|
123,498
|
|
Corporate and Other
|
2,701
|
|
|
2,007
|
|
||
Total assets
|
$
|
144,202
|
|
|
$
|
125,505
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Retail sales
|
$
|
1,921
|
|
|
$
|
2,200
|
|
|
$
|
5,646
|
|
|
$
|
5,524
|
|
Flow reinsurance
|
609
|
|
|
610
|
|
|
2,754
|
|
|
1,287
|
|
||||
Funding agreements
|
503
|
|
|
—
|
|
|
802
|
|
|
425
|
|
||||
Pension risk transfer
|
2,604
|
|
|
476
|
|
|
5,233
|
|
|
796
|
|
||||
Total organic deposits
|
5,637
|
|
|
3,286
|
|
|
14,435
|
|
|
8,032
|
|
||||
Inorganic deposits
|
—
|
|
|
—
|
|
|
—
|
|
|
19,104
|
|
||||
Total deposits
|
$
|
5,637
|
|
|
$
|
3,286
|
|
|
$
|
14,435
|
|
|
$
|
27,136
|
|
•
|
Investment Gains (Losses), Net of Offsets—Investment gains (losses), net of offsets, consist of the realized gains and losses on the sale of AFS securities, the change in fair value of reinsurance assets, unrealized gains and losses, impairments, and other investment gains and losses. Unrealized, impairments and other investment gains and losses are comprised of the fair value adjustments of trading securities (other than CLOs) and investments held under the fair value option, derivative gains and losses not hedging FIA index credits, and the net other-than-temporary impairment (OTTI) impacts recognized in operations net of the change in AmerUs Closed Block fair value reserve related to the corresponding change in fair value of investments and the change in unit-linked reserves related to the corresponding trading securities. Investment gains and losses are net of offsets related to DAC, DSI, and VOBA amortization and changes to guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) reserves (together, GLWB and GMDB reserves represent rider reserves) as well as the market value adjustments (MVA) associated with surrenders or terminations of contracts.
|
•
|
Change in Fair Values of Derivatives and Embedded Derivatives – FIAs, Net of Offsets—Impacts related to the fair value accounting for derivatives hedging the FIA index credits and the related embedded derivative liability fluctuations from period to period. The index reserve is measured at fair value for the current period and all periods beyond the current policyholder index term. However, the FIA hedging derivatives are purchased to hedge only the current index period. Upon policyholder renewal at the end of the period, new FIA hedging derivatives are purchased to align with the new term. The difference in duration between the FIA hedging derivatives and the index credit reserves creates a timing difference in earnings. This timing difference of the FIA hedging derivatives and index credit reserves is included as a non-operating adjustment, net of offsets related to DAC, DSI, and VOBA amortization and changes to rider reserves.
|
•
|
Integration, Restructuring, and Other Non-operating Expenses—Integration, restructuring, and other non-operating expenses consist of restructuring and integration expenses related to acquisitions and block reinsurance costs as well as certain other expenses which are not predictable or related to our underlying profitability drivers.
|
•
|
Stock Compensation Expense—Stock compensation expenses associated with our share incentive plans, excluding our long-term incentive plan, are not related to our underlying profitability drivers and fluctuate from time to time due to the structure of our plans.
|
•
|
Bargain Purchase Gain—Bargain purchase gains associated with acquisitions are adjustments to net income available to AHL common shareholders as they are not related to our underlying profitability drivers.
|
•
|
Income Tax (Expense) Benefit – Non-operating—The non-operating income tax expense represents the income tax effect of non-operating adjustments and is computed by applying the appropriate jurisdiction’s tax rate to the non-operating adjustments that are subject to income tax.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions, except percentages)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
$
|
4,501
|
|
|
$
|
2,576
|
|
|
$
|
12,831
|
|
|
$
|
5,389
|
|
Benefits and expenses
|
4,222
|
|
|
1,897
|
|
|
11,062
|
|
|
4,067
|
|
||||
Income before income taxes
|
279
|
|
|
679
|
|
|
1,769
|
|
|
1,322
|
|
||||
Income tax expense (benefit)
|
(14
|
)
|
|
56
|
|
|
48
|
|
|
165
|
|
||||
Net income
|
293
|
|
|
623
|
|
|
1,721
|
|
|
1,157
|
|
||||
Less: Preferred stock dividends
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
Net income available to AHL common shareholders
|
$
|
276
|
|
|
$
|
623
|
|
|
$
|
1,704
|
|
|
$
|
1,157
|
|
|
|
|
|
|
|
|
|
||||||||
ROE
|
8.5
|
%
|
|
28.6
|
%
|
|
20.8
|
%
|
|
17.0
|
%
|
||||
Adjusted ROE
|
8.3
|
%
|
|
30.8
|
%
|
|
13.4
|
%
|
|
21.7
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions, except percentages)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income available to Athene Holding Ltd. common shareholders
|
$
|
276
|
|
|
$
|
623
|
|
|
$
|
1,704
|
|
|
$
|
1,157
|
|
|
|
|
|
|
|
|
|
||||||||
Non-operating adjustments
|
|
|
|
|
|
|
|
||||||||
Realized gains (losses) on sale of AFS securities
|
46
|
|
|
5
|
|
|
99
|
|
|
33
|
|
||||
Unrealized, impairments and other investment gains (losses)
|
(31
|
)
|
|
6
|
|
|
8
|
|
|
22
|
|
||||
Change in fair value of reinsurance assets
|
314
|
|
|
(95
|
)
|
|
1,500
|
|
|
(302
|
)
|
||||
Offsets to investment gains (losses)
|
(163
|
)
|
|
31
|
|
|
(566
|
)
|
|
87
|
|
||||
Investment gains (losses), net of offsets
|
166
|
|
|
(53
|
)
|
|
1,041
|
|
|
(160
|
)
|
||||
Change in fair values of derivatives and embedded derivatives – FIAs, net of offsets
|
(117
|
)
|
|
376
|
|
|
(201
|
)
|
|
530
|
|
||||
Integration, restructuring and other non-operating expenses
|
(34
|
)
|
|
(2
|
)
|
|
(46
|
)
|
|
(18
|
)
|
||||
Stock compensation expense
|
(3
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(8
|
)
|
||||
Income tax (expense) benefit – non-operating
|
21
|
|
|
(66
|
)
|
|
19
|
|
|
(87
|
)
|
||||
Less: Total non-operating adjustments
|
33
|
|
|
252
|
|
|
804
|
|
|
257
|
|
||||
Adjusted operating income available to common shareholders
|
$
|
243
|
|
|
$
|
371
|
|
|
$
|
900
|
|
|
$
|
900
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted operating income available to common shareholders
|
|
|
|
|
|
|
|
||||||||
Retirement Services
|
$
|
256
|
|
|
$
|
379
|
|
|
$
|
918
|
|
|
$
|
905
|
|
Corporate and Other
|
(13
|
)
|
|
(8
|
)
|
|
(18
|
)
|
|
(5
|
)
|
||||
Adjusted operating income available to common shareholders
|
$
|
243
|
|
|
$
|
371
|
|
|
$
|
900
|
|
|
$
|
900
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted operating ROE
|
10.6
|
%
|
|
17.2
|
%
|
|
13.3
|
%
|
|
14.5
|
%
|
||||
Retirement Services adjusted operating ROE
|
13.5
|
%
|
|
23.2
|
%
|
|
16.0
|
%
|
|
19.7
|
%
|
|
Three months ended September 30,
|
||||
|
2019
|
|
2018
|
||
Net investment earned rate
|
4.31
|
%
|
|
4.55
|
%
|
Cost of funds
|
3.18
|
%
|
|
2.77
|
%
|
Net investment spread
|
1.13
|
%
|
|
1.78
|
%
|
|
Three months ended September 30,
|
||||
|
2019
|
|
2018
|
||
Net investment earned rate
|
4.31
|
%
|
|
4.55
|
%
|
Cost of crediting on deferred annuities
|
1.98
|
%
|
|
1.98
|
%
|
Investment margin on deferred annuities
|
2.33
|
%
|
|
2.57
|
%
|
|
Nine months ended September 30,
|
||||
|
2019
|
|
2018
|
||
Net investment earned rate
|
4.38
|
%
|
|
4.63
|
%
|
Cost of funds
|
3.00
|
%
|
|
2.81
|
%
|
Net investment spread
|
1.38
|
%
|
|
1.82
|
%
|
|
Nine months ended September 30,
|
||||
|
2019
|
|
2018
|
||
Net investment earned rate
|
4.38
|
%
|
|
4.63
|
%
|
Cost of crediting on deferred annuities
|
1.98
|
%
|
|
1.93
|
%
|
Investment margin on deferred annuities
|
2.40
|
%
|
|
2.70
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Carrying Value
|
|
Percent of Total
|
|
Carrying Value
|
|
Percent of Total
|
||||||
AFS securities, at fair value
|
$
|
70,903
|
|
|
55.8
|
%
|
|
$
|
59,265
|
|
|
55.1
|
%
|
Trading securities, at fair value
|
2,411
|
|
|
1.9
|
%
|
|
1,949
|
|
|
1.8
|
%
|
||
Equity securities, at fair value
|
359
|
|
|
0.3
|
%
|
|
216
|
|
|
0.2
|
%
|
||
Mortgage loans, net of allowances
|
13,465
|
|
|
10.6
|
%
|
|
10,340
|
|
|
9.6
|
%
|
||
Investment funds
|
712
|
|
|
0.5
|
%
|
|
703
|
|
|
0.6
|
%
|
||
Policy loans
|
466
|
|
|
0.4
|
%
|
|
488
|
|
|
0.4
|
%
|
||
Funds withheld at interest
|
15,280
|
|
|
12.0
|
%
|
|
15,023
|
|
|
14.0
|
%
|
||
Derivative assets
|
2,386
|
|
|
1.9
|
%
|
|
1,043
|
|
|
1.0
|
%
|
||
Short-term investments, at fair value
|
571
|
|
|
0.4
|
%
|
|
191
|
|
|
0.2
|
%
|
||
Other investments
|
130
|
|
|
0.1
|
%
|
|
122
|
|
|
0.1
|
%
|
||
Total investments
|
106,683
|
|
|
83.9
|
%
|
|
89,340
|
|
|
83.0
|
%
|
||
Investment in related parties
|
|
|
|
|
|
|
|
||||||
AFS securities, at fair value
|
2,368
|
|
|
1.9
|
%
|
|
1,437
|
|
|
1.3
|
%
|
||
Trading securities, at fair value
|
306
|
|
|
0.2
|
%
|
|
249
|
|
|
0.2
|
%
|
||
Equity securities, at fair value
|
381
|
|
|
0.3
|
%
|
|
120
|
|
|
0.1
|
%
|
||
Mortgage loans
|
653
|
|
|
0.5
|
%
|
|
291
|
|
|
0.3
|
%
|
||
Investment funds
|
2,763
|
|
|
2.2
|
%
|
|
2,232
|
|
|
2.1
|
%
|
||
Funds withheld at interest
|
13,560
|
|
|
10.7
|
%
|
|
13,577
|
|
|
12.6
|
%
|
||
Other investments
|
387
|
|
|
0.3
|
%
|
|
386
|
|
|
0.4
|
%
|
||
Total related party investments
|
20,418
|
|
|
16.1
|
%
|
|
18,292
|
|
|
17.0
|
%
|
||
Total investments including related party
|
$
|
127,101
|
|
|
100.0
|
%
|
|
$
|
107,632
|
|
|
100.0
|
%
|
|
September 30, 2019
|
|||||||||||||||||
(In millions, except percentages)
|
Amortized Cost
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
|
Percent of Total
|
|||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. government and agencies
|
$
|
36
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
0.1
|
%
|
U.S. state, municipal and political subdivisions
|
1,233
|
|
|
260
|
|
|
(1
|
)
|
|
1,492
|
|
|
2.0
|
%
|
||||
Foreign governments
|
301
|
|
|
27
|
|
|
—
|
|
|
328
|
|
|
0.4
|
%
|
||||
Corporate
|
43,948
|
|
|
3,415
|
|
|
(318
|
)
|
|
47,045
|
|
|
64.2
|
%
|
||||
CLO
|
7,044
|
|
|
15
|
|
|
(188
|
)
|
|
6,871
|
|
|
9.4
|
%
|
||||
ABS
|
4,967
|
|
|
164
|
|
|
(20
|
)
|
|
5,111
|
|
|
7.0
|
%
|
||||
CMBS
|
2,639
|
|
|
130
|
|
|
(4
|
)
|
|
2,765
|
|
|
3.8
|
%
|
||||
RMBS
|
6,698
|
|
|
565
|
|
|
(9
|
)
|
|
7,254
|
|
|
9.9
|
%
|
||||
Total AFS securities
|
66,866
|
|
|
4,577
|
|
|
(540
|
)
|
|
70,903
|
|
|
96.8
|
%
|
||||
AFS securities – related party
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporate
|
23
|
|
|
1
|
|
|
—
|
|
|
24
|
|
|
0.0
|
%
|
||||
CLO
|
834
|
|
|
1
|
|
|
(17
|
)
|
|
818
|
|
|
1.1
|
%
|
||||
ABS
|
1,490
|
|
|
36
|
|
|
—
|
|
|
1,526
|
|
|
2.1
|
%
|
||||
Total AFS securities – related party
|
2,347
|
|
|
38
|
|
|
(17
|
)
|
|
2,368
|
|
|
3.2
|
%
|
||||
Total AFS securities including related party
|
$
|
69,213
|
|
|
$
|
4,615
|
|
|
$
|
(557
|
)
|
|
$
|
73,271
|
|
|
100.0
|
%
|
|
December 31, 2018
|
|||||||||||||||||
(In millions, except percentages)
|
Amortized Cost
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
|
Percent of Total
|
|||||||||
AFS securities
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. government and agencies
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
0.1
|
%
|
U.S. state, municipal and political subdivisions
|
1,183
|
|
|
117
|
|
|
(7
|
)
|
|
1,293
|
|
|
2.1
|
%
|
||||
Foreign governments
|
162
|
|
|
2
|
|
|
(3
|
)
|
|
161
|
|
|
0.3
|
%
|
||||
Corporate
|
38,018
|
|
|
394
|
|
|
(1,315
|
)
|
|
37,097
|
|
|
61.1
|
%
|
||||
CLO
|
5,658
|
|
|
2
|
|
|
(299
|
)
|
|
5,361
|
|
|
8.8
|
%
|
||||
ABS
|
4,915
|
|
|
53
|
|
|
(48
|
)
|
|
4,920
|
|
|
8.1
|
%
|
||||
CMBS
|
2,390
|
|
|
27
|
|
|
(60
|
)
|
|
2,357
|
|
|
3.9
|
%
|
||||
RMBS
|
7,642
|
|
|
413
|
|
|
(36
|
)
|
|
8,019
|
|
|
13.2
|
%
|
||||
Total AFS securities
|
60,025
|
|
|
1,008
|
|
|
(1,768
|
)
|
|
59,265
|
|
|
97.6
|
%
|
||||
AFS securities – related party
|
|
|
|
|
|
|
|
|
|
|||||||||
CLO
|
587
|
|
|
—
|
|
|
(25
|
)
|
|
562
|
|
|
0.9
|
%
|
||||
ABS
|
875
|
|
|
4
|
|
|
(4
|
)
|
|
875
|
|
|
1.5
|
%
|
||||
Total AFS securities – related party
|
1,462
|
|
|
4
|
|
|
(29
|
)
|
|
1,437
|
|
|
2.4
|
%
|
||||
Total AFS securities including related party
|
$
|
61,487
|
|
|
$
|
1,012
|
|
|
$
|
(1,797
|
)
|
|
$
|
60,702
|
|
|
100.0
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Fair Value
|
|
Percent of Total
|
|
Fair Value
|
|
Percent of Total
|
||||||
Corporate
|
|
|
|
|
|
|
|
||||||
Industrial other1
|
$
|
14,785
|
|
|
20.2
|
%
|
|
$
|
11,706
|
|
|
19.3
|
%
|
Financial
|
15,165
|
|
|
20.7
|
%
|
|
11,809
|
|
|
19.5
|
%
|
||
Utilities
|
11,457
|
|
|
15.6
|
%
|
|
9,055
|
|
|
14.9
|
%
|
||
Communication
|
2,752
|
|
|
3.8
|
%
|
|
2,313
|
|
|
3.8
|
%
|
||
Transportation
|
2,910
|
|
|
4.0
|
%
|
|
2,214
|
|
|
3.6
|
%
|
||
Total corporate
|
47,069
|
|
|
64.3
|
%
|
|
37,097
|
|
|
61.1
|
%
|
||
Other government-related securities
|
|
|
|
|
|
|
|
||||||
U.S. state, municipal and political subdivisions
|
1,492
|
|
|
2.0
|
%
|
|
1,293
|
|
|
2.1
|
%
|
||
Foreign governments
|
328
|
|
|
0.4
|
%
|
|
161
|
|
|
0.3
|
%
|
||
U.S. government and agencies
|
37
|
|
|
0.1
|
%
|
|
57
|
|
|
0.1
|
%
|
||
Total non-structured securities
|
48,926
|
|
|
66.8
|
%
|
|
38,608
|
|
|
63.6
|
%
|
||
Structured securities
|
|
|
|
|
|
|
|
||||||
CLO
|
7,689
|
|
|
10.5
|
%
|
|
5,923
|
|
|
9.8
|
%
|
||
ABS
|
6,637
|
|
|
9.0
|
%
|
|
5,795
|
|
|
9.5
|
%
|
||
CMBS
|
2,765
|
|
|
3.8
|
%
|
|
2,357
|
|
|
3.9
|
%
|
||
RMBS
|
|
|
|
|
|
|
|
||||||
Agency
|
18
|
|
|
0.0
|
%
|
|
59
|
|
|
0.1
|
%
|
||
Non-agency
|
7,236
|
|
|
9.9
|
%
|
|
7,960
|
|
|
13.1
|
%
|
||
Total structured securities
|
24,345
|
|
|
33.2
|
%
|
|
22,094
|
|
|
36.4
|
%
|
||
Total AFS securities including related party
|
$
|
73,271
|
|
|
100.0
|
%
|
|
$
|
60,702
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 Includes securities within various industry segments including capital goods, basic industry, consumer cyclical, consumer non-cyclical, industrial and technology.
|
NAIC designation
|
|
NRSRO equivalent rating
|
1
|
|
AAA/AA/A
|
2
|
|
BBB
|
3
|
|
BB
|
4
|
|
B
|
5
|
|
CCC
|
6
|
|
CC and lower
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
(In millions, except percentages)
|
Amortized Cost
|
|
Fair Value
|
|
Percent of Total
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of Total
|
||||||||||
NAIC designation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1
|
$
|
34,930
|
|
|
$
|
37,451
|
|
|
51.1
|
%
|
|
$
|
31,106
|
|
|
$
|
31,311
|
|
|
51.6
|
%
|
2
|
30,599
|
|
|
32,125
|
|
|
43.8
|
%
|
|
26,682
|
|
|
25,871
|
|
|
42.6
|
%
|
||||
Total investment grade
|
65,529
|
|
|
69,576
|
|
|
94.9
|
%
|
|
57,788
|
|
|
57,182
|
|
|
94.2
|
%
|
||||
3
|
2,819
|
|
|
2,845
|
|
|
3.9
|
%
|
|
2,866
|
|
|
2,746
|
|
|
4.5
|
%
|
||||
4
|
722
|
|
|
709
|
|
|
1.0
|
%
|
|
591
|
|
|
533
|
|
|
0.9
|
%
|
||||
5
|
125
|
|
|
124
|
|
|
0.2
|
%
|
|
235
|
|
|
232
|
|
|
0.4
|
%
|
||||
6
|
18
|
|
|
17
|
|
|
0.0
|
%
|
|
7
|
|
|
9
|
|
|
0.0
|
%
|
||||
Total below investment grade
|
3,684
|
|
|
3,695
|
|
|
5.1
|
%
|
|
3,699
|
|
|
3,520
|
|
|
5.8
|
%
|
||||
Total AFS securities including related party
|
$
|
69,213
|
|
|
$
|
73,271
|
|
|
100.0
|
%
|
|
$
|
61,487
|
|
|
$
|
60,702
|
|
|
100.0
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Fair Value
|
|
Percent of Total
|
|
Fair Value
|
|
Percent of Total
|
||||||
NRSRO rating agency designation
|
|
|
|
|
|
|
|
||||||
AAA/AA/A
|
$
|
26,726
|
|
|
36.5
|
%
|
|
$
|
19,690
|
|
|
32.4
|
%
|
BBB
|
28,818
|
|
|
39.3
|
%
|
|
23,326
|
|
|
38.4
|
%
|
||
Non-rated1
|
9,898
|
|
|
13.5
|
%
|
|
9,624
|
|
|
15.9
|
%
|
||
Total investment grade
|
65,442
|
|
|
89.3
|
%
|
|
52,640
|
|
|
86.7
|
%
|
||
BB
|
3,126
|
|
|
4.3
|
%
|
|
2,670
|
|
|
4.4
|
%
|
||
B
|
887
|
|
|
1.2
|
%
|
|
875
|
|
|
1.4
|
%
|
||
CCC
|
2,083
|
|
|
2.8
|
%
|
|
2,340
|
|
|
3.9
|
%
|
||
CC and lower
|
1,171
|
|
|
1.6
|
%
|
|
1,296
|
|
|
2.1
|
%
|
||
Non-rated1
|
562
|
|
|
0.8
|
%
|
|
881
|
|
|
1.5
|
%
|
||
Total below investment grade
|
7,829
|
|
|
10.7
|
%
|
|
8,062
|
|
|
13.3
|
%
|
||
Total AFS securities including related party
|
$
|
73,271
|
|
|
100.0
|
%
|
|
$
|
60,702
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to loan-backed and structured securities, the NAIC designation methodology differs in significant respects from the NRSRO rating methodology.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Fair Value
|
|
Percent of Total
|
|
Fair Value
|
|
Percent of Total
|
||||||
NAIC designation
|
|
|
|
|
|
|
|
||||||
1
|
$
|
6,666
|
|
|
91.9
|
%
|
|
$
|
7,415
|
|
|
92.5
|
%
|
2
|
265
|
|
|
3.7
|
%
|
|
269
|
|
|
3.3
|
%
|
||
Total investment grade
|
6,931
|
|
|
95.6
|
%
|
|
7,684
|
|
|
95.8
|
%
|
||
3
|
168
|
|
|
2.3
|
%
|
|
207
|
|
|
2.6
|
%
|
||
4
|
133
|
|
|
1.8
|
%
|
|
106
|
|
|
1.3
|
%
|
||
5
|
21
|
|
|
0.3
|
%
|
|
22
|
|
|
0.3
|
%
|
||
6
|
1
|
|
|
0.0
|
%
|
|
—
|
|
|
—
|
%
|
||
Total below investment grade
|
323
|
|
|
4.4
|
%
|
|
335
|
|
|
4.2
|
%
|
||
Total AFS RMBS
|
$
|
7,254
|
|
|
100.0
|
%
|
|
$
|
8,019
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
NRSRO rating agency designation
|
|
|
|
|
|
|
|
||||||
AAA/AA/A
|
$
|
428
|
|
|
5.9
|
%
|
|
$
|
487
|
|
|
6.1
|
%
|
BBB
|
253
|
|
|
3.5
|
%
|
|
220
|
|
|
2.7
|
%
|
||
Non-rated1
|
2,694
|
|
|
37.1
|
%
|
|
2,932
|
|
|
36.6
|
%
|
||
Total investment grade
|
3,375
|
|
|
46.5
|
%
|
|
3,639
|
|
|
45.4
|
%
|
||
BB
|
280
|
|
|
3.9
|
%
|
|
332
|
|
|
4.1
|
%
|
||
B
|
261
|
|
|
3.6
|
%
|
|
301
|
|
|
3.8
|
%
|
||
CCC
|
2,010
|
|
|
27.7
|
%
|
|
2,259
|
|
|
28.2
|
%
|
||
CC and lower
|
1,160
|
|
|
16.0
|
%
|
|
1,292
|
|
|
16.1
|
%
|
||
Non-rated1
|
168
|
|
|
2.3
|
%
|
|
196
|
|
|
2.4
|
%
|
||
Total below investment grade
|
3,879
|
|
|
53.5
|
%
|
|
4,380
|
|
|
54.6
|
%
|
||
Total AFS RMBS
|
$
|
7,254
|
|
|
100.0
|
%
|
|
$
|
8,019
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designations. With respect to loan-backed and structured securities, the NAIC designation methodology differs in significant respects from the NRSRO rating methodology.
|
|
September 30, 2019
|
||||||||||||||||||||
(In millions, except percentages)
|
Amortized Cost of AFS Securities with Unrealized Loss
|
|
Gross Unrealized Losses
|
|
Fair Value of AFS Securities with Unrealized Loss
|
|
Fair Value to Amortized Cost Ratio
|
|
Fair Value of Total AFS Securities
|
|
Gross Unrealized Losses to Total AFS Fair Value
|
||||||||||
NAIC designation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1
|
$
|
4,646
|
|
|
$
|
(149
|
)
|
|
$
|
4,497
|
|
|
96.8
|
%
|
|
$
|
37,451
|
|
|
(0.4
|
)%
|
2
|
5,218
|
|
|
(295
|
)
|
|
4,923
|
|
|
94.3
|
%
|
|
32,125
|
|
|
(0.9
|
)%
|
||||
Total investment grade
|
9,864
|
|
|
(444
|
)
|
|
9,420
|
|
|
95.5
|
%
|
|
69,576
|
|
|
(0.6
|
)%
|
||||
3
|
907
|
|
|
(59
|
)
|
|
848
|
|
|
93.5
|
%
|
|
2,845
|
|
|
(2.1
|
)%
|
||||
4
|
344
|
|
|
(45
|
)
|
|
299
|
|
|
86.9
|
%
|
|
709
|
|
|
(6.3
|
)%
|
||||
5
|
86
|
|
|
(5
|
)
|
|
81
|
|
|
94.2
|
%
|
|
124
|
|
|
(4.0
|
)%
|
||||
6
|
12
|
|
|
(4
|
)
|
|
8
|
|
|
66.7
|
%
|
|
17
|
|
|
(23.5
|
)%
|
||||
Total below investment grade
|
1,349
|
|
|
(113
|
)
|
|
1,236
|
|
|
91.6
|
%
|
|
3,695
|
|
|
(3.1
|
)%
|
||||
Total
|
$
|
11,213
|
|
|
$
|
(557
|
)
|
|
$
|
10,656
|
|
|
95.0
|
%
|
|
$
|
73,271
|
|
|
(0.8
|
)%
|
|
December 31, 2018
|
||||||||||||||||||||
(In millions, except percentages)
|
Amortized Cost of AFS Securities with Unrealized Loss
|
|
Gross Unrealized Losses
|
|
Fair Value of AFS Securities with Unrealized Loss
|
|
Fair Value to Amortized Cost Ratio
|
|
Fair Value of Total AFS Securities
|
|
Gross Unrealized Losses to Total AFS Fair Value
|
||||||||||
NAIC designation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1
|
$
|
15,373
|
|
|
$
|
(545
|
)
|
|
$
|
14,828
|
|
|
96.5
|
%
|
|
$
|
31,311
|
|
|
(1.7
|
)%
|
2
|
19,152
|
|
|
(1,035
|
)
|
|
18,117
|
|
|
94.6
|
%
|
|
25,871
|
|
|
(4.0
|
)%
|
||||
Total investment grade
|
34,525
|
|
|
(1,580
|
)
|
|
32,945
|
|
|
95.4
|
%
|
|
57,182
|
|
|
(2.8
|
)%
|
||||
3
|
2,308
|
|
|
(147
|
)
|
|
2,161
|
|
|
93.6
|
%
|
|
2,746
|
|
|
(5.4
|
)%
|
||||
4
|
500
|
|
|
(65
|
)
|
|
435
|
|
|
87.0
|
%
|
|
533
|
|
|
(12.2
|
)%
|
||||
5
|
88
|
|
|
(5
|
)
|
|
83
|
|
|
94.3
|
%
|
|
232
|
|
|
(2.2
|
)%
|
||||
6
|
2
|
|
|
—
|
|
|
2
|
|
|
100.0
|
%
|
|
9
|
|
|
—
|
%
|
||||
Total below investment grade
|
2,898
|
|
|
(217
|
)
|
|
2,681
|
|
|
92.5
|
%
|
|
3,520
|
|
|
(6.2
|
)%
|
||||
Total
|
$
|
37,423
|
|
|
$
|
(1,797
|
)
|
|
$
|
35,626
|
|
|
95.2
|
%
|
|
$
|
60,702
|
|
|
(3.0
|
)%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
(In millions, except percentages)
|
Amortized Cost
|
|
Fair Value
|
|
Percent of Total
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of Total
|
||||||||||
Country of risk
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ireland
|
$
|
778
|
|
|
$
|
791
|
|
|
3.5
|
%
|
|
$
|
578
|
|
|
$
|
552
|
|
|
3.0
|
%
|
Italy
|
6
|
|
|
7
|
|
|
0.0
|
%
|
|
36
|
|
|
35
|
|
|
0.2
|
%
|
||||
Spain
|
66
|
|
|
70
|
|
|
0.3
|
%
|
|
62
|
|
|
62
|
|
|
0.4
|
%
|
||||
Total Ireland, Italy, Greece, Spain and Portugal1
|
850
|
|
|
868
|
|
|
3.8
|
%
|
|
676
|
|
|
649
|
|
|
3.6
|
%
|
||||
Other Europe
|
7,054
|
|
|
7,327
|
|
|
32.3
|
%
|
|
6,335
|
|
|
6,133
|
|
|
33.3
|
%
|
||||
Total Europe
|
7,904
|
|
|
8,195
|
|
|
36.1
|
%
|
|
7,011
|
|
|
6,782
|
|
|
36.9
|
%
|
||||
Non-U.S. North America
|
10,983
|
|
|
11,016
|
|
|
48.5
|
%
|
|
9,261
|
|
|
8,906
|
|
|
48.4
|
%
|
||||
Australia & New Zealand
|
1,858
|
|
|
1,976
|
|
|
8.7
|
%
|
|
1,731
|
|
|
1,696
|
|
|
9.2
|
%
|
||||
Central & South America
|
483
|
|
|
514
|
|
|
2.3
|
%
|
|
448
|
|
|
445
|
|
|
2.4
|
%
|
||||
Africa & Middle East
|
328
|
|
|
355
|
|
|
1.6
|
%
|
|
228
|
|
|
226
|
|
|
1.2
|
%
|
||||
Asia/Pacific
|
600
|
|
|
633
|
|
|
2.8
|
%
|
|
351
|
|
|
345
|
|
|
1.9
|
%
|
||||
Total
|
$
|
22,156
|
|
|
$
|
22,689
|
|
|
100.0
|
%
|
|
$
|
19,030
|
|
|
$
|
18,400
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1 As of each of the respective periods, we had no holdings in Greece or Portugal.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Net Carrying Value
|
|
Percent of Total
|
|
Net Carrying Value
|
|
Percent of Total
|
||||||
Property type
|
|
|
|
|
|
|
|
||||||
Office building
|
$
|
2,673
|
|
|
18.9
|
%
|
|
$
|
2,221
|
|
|
20.9
|
%
|
Retail
|
2,167
|
|
|
15.3
|
%
|
|
1,660
|
|
|
15.6
|
%
|
||
Hotels
|
1,028
|
|
|
7.3
|
%
|
|
1,040
|
|
|
9.8
|
%
|
||
Industrial
|
1,382
|
|
|
9.8
|
%
|
|
1,196
|
|
|
11.2
|
%
|
||
Apartment
|
1,749
|
|
|
12.4
|
%
|
|
791
|
|
|
7.4
|
%
|
||
Other commercial1
|
702
|
|
|
5.0
|
%
|
|
389
|
|
|
3.7
|
%
|
||
Total net commercial mortgage loans
|
9,701
|
|
|
68.7
|
%
|
|
7,297
|
|
|
68.6
|
%
|
||
Residential loans
|
4,417
|
|
|
31.3
|
%
|
|
3,334
|
|
|
31.4
|
%
|
||
Total mortgage loans, net of allowances
|
$
|
14,118
|
|
|
100.0
|
%
|
|
$
|
10,631
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 Other commercial loans include investments in nursing homes, other healthcare institutions, parking garages, storage facilities and other commercial properties.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Carrying Value
|
|
Percent of Total
|
|
Carrying Value
|
|
Percent of Total
|
||||||
Assets of consolidated VIEs
|
|
|
|
|
|
|
|
||||||
Investments
|
|
|
|
|
|
|
|
||||||
Trading securities
|
$
|
19
|
|
|
2.9
|
%
|
|
$
|
35
|
|
|
4.9
|
%
|
Equity securities
|
6
|
|
|
0.9
|
%
|
|
50
|
|
|
7.0
|
%
|
||
Investment funds
|
619
|
|
|
93.6
|
%
|
|
624
|
|
|
87.7
|
%
|
||
Cash and cash equivalents
|
3
|
|
|
0.5
|
%
|
|
2
|
|
|
0.3
|
%
|
||
Other assets
|
14
|
|
|
2.1
|
%
|
|
1
|
|
|
0.1
|
%
|
||
Total assets of consolidated VIEs
|
$
|
661
|
|
|
100.0
|
%
|
|
$
|
712
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
Liabilities of consolidated VIEs
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
$
|
1
|
|
|
100.0
|
%
|
|
$
|
1
|
|
|
100.0
|
%
|
Total liabilities of consolidated VIEs
|
$
|
1
|
|
|
100.0
|
%
|
|
$
|
1
|
|
|
100.0
|
%
|
|
September 30, 2019
|
|
December 31, 20181
|
||||||||||
(In millions, except percentages)
|
Carrying Value
|
|
Percent of Total
|
|
Carrying Value
|
|
Percent of Total
|
||||||
Investment funds
|
|
|
|
|
|
|
|
||||||
Real estate
|
$
|
254
|
|
|
6.2
|
%
|
|
$
|
215
|
|
|
6.0
|
%
|
Credit funds
|
161
|
|
|
3.9
|
%
|
|
172
|
|
|
4.8
|
%
|
||
Private equity
|
231
|
|
|
5.7
|
%
|
|
253
|
|
|
7.1
|
%
|
||
Real assets
|
65
|
|
|
1.6
|
%
|
|
56
|
|
|
1.6
|
%
|
||
Natural resources
|
1
|
|
|
0.0
|
%
|
|
4
|
|
|
0.1
|
%
|
||
Other
|
—
|
|
|
—
|
%
|
|
3
|
|
|
0.1
|
%
|
||
Total investment funds
|
712
|
|
|
17.4
|
%
|
|
703
|
|
|
19.7
|
%
|
||
Investment funds – related parties
|
|
|
|
|
|
|
|
||||||
Differentiated investments
|
|
|
|
|
|
|
|
||||||
AmeriHome
|
469
|
|
|
11.5
|
%
|
|
463
|
|
|
13.0
|
%
|
||
Catalina
|
270
|
|
|
6.6
|
%
|
|
233
|
|
|
6.5
|
%
|
||
Athora
|
127
|
|
|
3.1
|
%
|
|
105
|
|
|
3.0
|
%
|
||
Venerable
|
94
|
|
|
2.3
|
%
|
|
92
|
|
|
2.6
|
%
|
||
Other
|
218
|
|
|
5.3
|
%
|
|
196
|
|
|
5.5
|
%
|
||
Total differentiated investments
|
1,178
|
|
|
28.8
|
%
|
|
1,089
|
|
|
30.6
|
%
|
||
Real estate
|
721
|
|
|
17.6
|
%
|
|
497
|
|
|
14.0
|
%
|
||
Credit funds
|
378
|
|
|
9.2
|
%
|
|
316
|
|
|
8.9
|
%
|
||
Private equity
|
69
|
|
|
1.7
|
%
|
|
18
|
|
|
0.5
|
%
|
||
Real assets
|
155
|
|
|
3.8
|
%
|
|
145
|
|
|
4.1
|
%
|
||
Natural resources
|
162
|
|
|
4.0
|
%
|
|
104
|
|
|
2.9
|
%
|
||
Public equities
|
100
|
|
|
2.4
|
%
|
|
63
|
|
|
1.8
|
%
|
||
Total investment funds – related parties
|
2,763
|
|
|
67.5
|
%
|
|
2,232
|
|
|
62.8
|
%
|
||
Investment funds owned by consolidated VIEs
|
|
|
|
|
|
|
|
||||||
MidCap
|
556
|
|
|
13.6
|
%
|
|
553
|
|
|
15.5
|
%
|
||
Real estate
|
44
|
|
|
1.1
|
%
|
|
30
|
|
|
0.8
|
%
|
||
Real assets
|
19
|
|
|
0.4
|
%
|
|
41
|
|
|
1.2
|
%
|
||
Total investment funds owned by consolidated VIEs
|
619
|
|
|
15.1
|
%
|
|
624
|
|
|
17.5
|
%
|
||
Total investment funds, including related parties and funds owned by consolidated VIEs
|
$
|
4,094
|
|
|
100.0
|
%
|
|
$
|
3,559
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 Certain reclassifications have been made to conform with current year presentation.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Carrying Value
|
|
Percent of Total
|
|
Carrying Value
|
|
Percent of Total
|
||||||
Fixed maturity securities
|
|
|
|
|
|
|
|
||||||
U.S. government and agencies
|
$
|
17
|
|
|
0.1
|
%
|
|
$
|
77
|
|
|
0.3
|
%
|
U.S. state, municipal and political subdivisions
|
488
|
|
|
1.7
|
%
|
|
563
|
|
|
2.0
|
%
|
||
Foreign governments
|
179
|
|
|
0.6
|
%
|
|
145
|
|
|
0.5
|
%
|
||
Corporate
|
15,143
|
|
|
52.5
|
%
|
|
16,267
|
|
|
56.9
|
%
|
||
CLO
|
2,470
|
|
|
8.6
|
%
|
|
1,990
|
|
|
7.0
|
%
|
||
ABS
|
2,142
|
|
|
7.4
|
%
|
|
1,601
|
|
|
5.6
|
%
|
||
CMBS
|
749
|
|
|
2.6
|
%
|
|
575
|
|
|
2.0
|
%
|
||
RMBS
|
1,619
|
|
|
5.6
|
%
|
|
1,876
|
|
|
6.6
|
%
|
||
Equity securities
|
230
|
|
|
0.8
|
%
|
|
66
|
|
|
0.2
|
%
|
||
Mortgage loans
|
4,508
|
|
|
15.6
|
%
|
|
3,815
|
|
|
13.3
|
%
|
||
Investment funds
|
745
|
|
|
2.6
|
%
|
|
660
|
|
|
2.3
|
%
|
||
Derivative assets
|
188
|
|
|
0.6
|
%
|
|
77
|
|
|
0.3
|
%
|
||
Short-term investments
|
107
|
|
|
0.4
|
%
|
|
641
|
|
|
2.2
|
%
|
||
Cash and cash equivalents
|
405
|
|
|
1.4
|
%
|
|
455
|
|
|
1.6
|
%
|
||
Other assets and liabilities
|
(150
|
)
|
|
(0.5
|
)%
|
|
(208
|
)
|
|
(0.8
|
)%
|
||
Total funds withheld at interest including related party
|
$
|
28,840
|
|
|
100.0
|
%
|
|
$
|
28,600
|
|
|
100.0
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Invested Asset Value1
|
|
Percent of Total
|
|
Invested Asset Value1
|
|
Percent of Total
|
||||||
Corporate
|
$
|
59,310
|
|
|
49.0
|
%
|
|
$
|
55,772
|
|
|
50.2
|
%
|
CLO
|
10,234
|
|
|
8.4
|
%
|
|
8,275
|
|
|
7.5
|
%
|
||
Credit
|
69,544
|
|
|
57.4
|
%
|
|
64,047
|
|
|
57.7
|
%
|
||
RMBS
|
8,537
|
|
|
7.0
|
%
|
|
9,814
|
|
|
8.9
|
%
|
||
Mortgage loans
|
18,514
|
|
|
15.3
|
%
|
|
14,423
|
|
|
13.0
|
%
|
||
CMBS
|
3,383
|
|
|
2.8
|
%
|
|
3,018
|
|
|
2.7
|
%
|
||
Real estate
|
30,434
|
|
|
25.1
|
%
|
|
27,255
|
|
|
24.6
|
%
|
||
ABS
|
8,935
|
|
|
7.4
|
%
|
|
7,706
|
|
|
6.9
|
%
|
||
Alternative investments
|
5,522
|
|
|
4.6
|
%
|
|
4,492
|
|
|
4.1
|
%
|
||
State, municipal, political subdivisions and foreign government
|
2,267
|
|
|
1.9
|
%
|
|
2,122
|
|
|
1.9
|
%
|
||
Equity securities
|
515
|
|
|
0.4
|
%
|
|
467
|
|
|
0.4
|
%
|
||
Short-term investments
|
623
|
|
|
0.5
|
%
|
|
765
|
|
|
0.7
|
%
|
||
U.S. government and agencies
|
53
|
|
|
0.0
|
%
|
|
134
|
|
|
0.1
|
%
|
||
Other investments
|
17,915
|
|
|
14.8
|
%
|
|
15,686
|
|
|
14.1
|
%
|
||
Cash and equivalents
|
2,041
|
|
|
1.7
|
%
|
|
2,881
|
|
|
2.6
|
%
|
||
Policy loans and other
|
1,206
|
|
|
1.0
|
%
|
|
1,165
|
|
|
1.0
|
%
|
||
Total invested assets
|
$
|
121,140
|
|
|
100.0
|
%
|
|
$
|
111,034
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 See Key Operating and Non-GAAP Measures for the definition of invested assets.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except percentages)
|
Invested Asset Value
|
|
Percent of Total
|
|
Invested Asset Value
|
|
Percent of Total
|
||||||
Retirement Services
|
|
|
|
|
|
|
|
||||||
Differentiated investments
|
|
|
|
|
|
|
|
||||||
AmeriHome
|
$
|
574
|
|
|
10.4
|
%
|
|
$
|
568
|
|
|
12.6
|
%
|
MidCap
|
556
|
|
|
10.1
|
%
|
|
553
|
|
|
12.3
|
%
|
||
Catalina
|
270
|
|
|
4.9
|
%
|
|
232
|
|
|
5.2
|
%
|
||
Venerable
|
94
|
|
|
1.7
|
%
|
|
92
|
|
|
2.1
|
%
|
||
Other
|
210
|
|
|
3.8
|
%
|
|
229
|
|
|
5.1
|
%
|
||
Total differentiated investments
|
1,704
|
|
|
30.9
|
%
|
|
1,674
|
|
|
37.3
|
%
|
||
Real estate
|
1,311
|
|
|
23.7
|
%
|
|
1,015
|
|
|
22.6
|
%
|
||
Credit
|
1,118
|
|
|
20.3
|
%
|
|
537
|
|
|
11.9
|
%
|
||
Private equity
|
326
|
|
|
5.9
|
%
|
|
279
|
|
|
6.2
|
%
|
||
Real assets
|
311
|
|
|
5.6
|
%
|
|
276
|
|
|
6.2
|
%
|
||
Natural resources
|
62
|
|
|
1.1
|
%
|
|
55
|
|
|
1.2
|
%
|
||
Other
|
47
|
|
|
0.9
|
%
|
|
4
|
|
|
0.1
|
%
|
||
Total Retirement Services alternative investments
|
4,879
|
|
|
88.4
|
%
|
|
3,840
|
|
|
85.5
|
%
|
||
Corporate and Other
|
|
|
|
|
|
|
|
||||||
Athora
|
138
|
|
|
2.5
|
%
|
|
130
|
|
|
2.9
|
%
|
||
Credit
|
138
|
|
|
2.5
|
%
|
|
203
|
|
|
4.5
|
%
|
||
Natural resources
|
266
|
|
|
4.8
|
%
|
|
213
|
|
|
4.8
|
%
|
||
Public equities1
|
101
|
|
|
1.8
|
%
|
|
100
|
|
|
2.2
|
%
|
||
Other
|
—
|
|
|
—
|
%
|
|
6
|
|
|
0.1
|
%
|
||
Total Corporate and Other alternative investments
|
643
|
|
|
11.6
|
%
|
|
652
|
|
|
14.5
|
%
|
||
Total alternative investments
|
$
|
5,522
|
|
|
100.0
|
%
|
|
$
|
4,492
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
1 As of September 30, 2019, public equities is exclusively comprised of an investment in OneMain Holdings, Inc. (ticker: OMF).
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Total shareholders’ equity
|
$
|
13,545
|
|
|
$
|
8,276
|
|
Less: Preferred stock
|
1,172
|
|
|
—
|
|
||
Total common shareholders’ equity
|
12,373
|
|
|
8,276
|
|
||
Less: AOCI
|
2,442
|
|
|
(472
|
)
|
||
Less: Accumulated change in fair value of reinsurance assets
|
727
|
|
|
(75
|
)
|
||
Total adjusted common shareholders’ equity
|
$
|
9,204
|
|
|
$
|
8,823
|
|
|
|
|
|
||||
Segment adjusted common shareholders’ equity
|
|
|
|
||||
Retirement Services
|
$
|
7,494
|
|
|
$
|
7,807
|
|
Corporate and Other
|
1,710
|
|
|
1,016
|
|
||
Total adjusted common shareholders’ equity
|
$
|
9,204
|
|
|
$
|
8,823
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Average shareholders’ equity
|
$
|
12,955
|
|
|
$
|
8,720
|
|
|
$
|
10,911
|
|
|
$
|
9,077
|
|
Less: Average preferred stock
|
1,006
|
|
|
—
|
|
|
586
|
|
|
—
|
|
||||
Less: Average AOCI
|
2,101
|
|
|
90
|
|
|
985
|
|
|
741
|
|
||||
Less: Average accumulated change in fair value of reinsurance assets
|
683
|
|
|
(10
|
)
|
|
326
|
|
|
65
|
|
||||
Average adjusted common shareholders’ equity
|
$
|
9,165
|
|
|
$
|
8,640
|
|
|
$
|
9,014
|
|
|
$
|
8,271
|
|
|
|
|
|
|
|
|
|
||||||||
Segment average adjusted common shareholders’ equity
|
|
|
|
|
|
|
|
||||||||
Retirement Services
|
$
|
7,598
|
|
|
$
|
6,537
|
|
|
$
|
7,651
|
|
|
$
|
6,130
|
|
Corporate and Other
|
1,567
|
|
|
2,103
|
|
|
1,363
|
|
|
2,141
|
|
||||
Average adjusted common shareholders’ equity
|
$
|
9,165
|
|
|
$
|
8,640
|
|
|
$
|
9,014
|
|
|
$
|
8,271
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income available to Athene Holding Ltd. common shareholders
|
$
|
276
|
|
|
$
|
623
|
|
|
$
|
1,704
|
|
|
$
|
1,157
|
|
Change in fair value of reinsurance assets
|
(88
|
)
|
|
43
|
|
|
(802
|
)
|
|
192
|
|
||||
Adjusted net income available to AHL common shareholders
|
$
|
188
|
|
|
$
|
666
|
|
|
$
|
902
|
|
|
$
|
1,349
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions, except percentages)
|
Dollar
|
|
Rate
|
|
Dollar
|
|
Rate
|
|
Dollar
|
|
Rate
|
|
Dollar
|
|
Rate
|
||||||||||||
GAAP net investment income
|
$
|
1,070
|
|
|
3.60
|
%
|
|
$
|
1,070
|
|
|
4.30
|
%
|
|
$
|
3,297
|
|
|
3.80
|
%
|
|
$
|
2,883
|
|
|
4.39
|
%
|
Change in fair value of reinsurance assets
|
199
|
|
|
0.67
|
%
|
|
52
|
|
|
0.20
|
%
|
|
492
|
|
|
0.57
|
%
|
|
169
|
|
|
0.26
|
%
|
||||
Net VIE earnings
|
23
|
|
|
0.08
|
%
|
|
39
|
|
|
0.16
|
%
|
|
68
|
|
|
0.08
|
%
|
|
55
|
|
|
0.08
|
%
|
||||
Alternative income gain (loss)
|
6
|
|
|
0.02
|
%
|
|
(14
|
)
|
|
(0.06
|
)%
|
|
13
|
|
|
0.01
|
%
|
|
(14
|
)
|
|
(0.02
|
)%
|
||||
Held for trading amortization and other
|
(6
|
)
|
|
(0.02
|
)%
|
|
(21
|
)
|
|
(0.08
|
)%
|
|
(30
|
)
|
|
(0.03
|
)%
|
|
(65
|
)
|
|
(0.10
|
)%
|
||||
Total adjustments to arrive at net investment earnings/earned rate
|
222
|
|
|
0.75
|
%
|
|
56
|
|
|
0.22
|
%
|
|
543
|
|
|
0.63
|
%
|
|
145
|
|
|
0.22
|
%
|
||||
Total net investment earnings/earned rate
|
$
|
1,292
|
|
|
4.35
|
%
|
|
$
|
1,126
|
|
|
4.52
|
%
|
|
$
|
3,840
|
|
|
4.43
|
%
|
|
$
|
3,028
|
|
|
4.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retirement Services
|
$
|
1,264
|
|
|
4.31
|
%
|
|
$
|
1,108
|
|
|
4.55
|
%
|
|
$
|
3,756
|
|
|
4.38
|
%
|
|
$
|
2,957
|
|
|
4.63
|
%
|
Corporate and Other
|
28
|
|
|
7.28
|
%
|
|
18
|
|
|
3.51
|
%
|
|
84
|
|
|
8.92
|
%
|
|
71
|
|
|
3.86
|
%
|
||||
Total net investment earnings/earned rate
|
$
|
1,292
|
|
|
4.35
|
%
|
|
$
|
1,126
|
|
|
4.52
|
%
|
|
$
|
3,840
|
|
|
4.43
|
%
|
|
$
|
3,028
|
|
|
4.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retirement Services average invested assets
|
$
|
117,338
|
|
|
|
|
$
|
97,500
|
|
|
|
|
$
|
114,391
|
|
|
|
|
$
|
85,163
|
|
|
|
||||
Corporate and Other average invested assets
|
1,567
|
|
|
|
|
2,103
|
|
|
|
|
1,262
|
|
|
|
|
2,473
|
|
|
|
||||||||
Consolidated average invested assets
|
$
|
118,905
|
|
|
|
|
$
|
99,603
|
|
|
|
|
$
|
115,653
|
|
|
|
|
$
|
87,636
|
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions, except percentages)
|
Dollar
|
|
Rate
|
|
Dollar
|
|
Rate
|
|
Dollar
|
|
Rate
|
|
Dollar
|
|
Rate
|
||||||||||||
GAAP interest sensitive contract benefits
|
$
|
801
|
|
|
2.73
|
%
|
|
$
|
742
|
|
|
3.04
|
%
|
|
$
|
3,411
|
|
|
3.98
|
%
|
|
$
|
1,115
|
|
|
1.75
|
%
|
Interest credited other than deferred annuities and institutional products
|
63
|
|
|
0.21
|
%
|
|
14
|
|
|
0.06
|
%
|
|
168
|
|
|
0.19
|
%
|
|
30
|
|
|
0.05
|
%
|
||||
FIA option costs
|
282
|
|
|
0.96
|
%
|
|
231
|
|
|
0.95
|
%
|
|
840
|
|
|
0.98
|
%
|
|
611
|
|
|
0.96
|
%
|
||||
Product charges (strategy fees)
|
(31
|
)
|
|
(0.10
|
)%
|
|
(25
|
)
|
|
(0.10
|
)%
|
|
(88
|
)
|
|
(0.10
|
)%
|
|
(70
|
)
|
|
(0.11
|
)%
|
||||
Reinsurance embedded derivative impacts
|
14
|
|
|
0.05
|
%
|
|
29
|
|
|
0.12
|
%
|
|
43
|
|
|
0.05
|
%
|
|
35
|
|
|
0.05
|
%
|
||||
Change in fair value of embedded derivatives – FIAs
|
(560
|
)
|
|
(1.91
|
)%
|
|
(546
|
)
|
|
(2.24
|
)%
|
|
(2,739
|
)
|
|
(3.19
|
)%
|
|
(603
|
)
|
|
(0.94
|
)%
|
||||
Negative VOBA amortization
|
9
|
|
|
0.03
|
%
|
|
5
|
|
|
0.02
|
%
|
|
28
|
|
|
0.03
|
%
|
|
22
|
|
|
0.03
|
%
|
||||
Other changes in interest sensitive contract liabilities
|
(2
|
)
|
|
(0.01
|
)%
|
|
3
|
|
|
0.01
|
%
|
|
(5
|
)
|
|
(0.01
|
)%
|
|
3
|
|
|
0.00
|
%
|
||||
Total adjustments to arrive at cost of crediting
|
(225
|
)
|
|
(0.77
|
)%
|
|
(289
|
)
|
|
(1.18
|
)%
|
|
(1,753
|
)
|
|
(2.05
|
)%
|
|
28
|
|
|
0.04
|
%
|
||||
Retirement Services cost of crediting
|
$
|
576
|
|
|
1.96
|
%
|
|
$
|
453
|
|
|
1.86
|
%
|
|
$
|
1,658
|
|
|
1.93
|
%
|
|
$
|
1,143
|
|
|
1.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retirement Services cost of crediting on deferred annuities
|
$
|
453
|
|
|
1.98
|
%
|
|
$
|
395
|
|
|
1.98
|
%
|
|
$
|
1,345
|
|
|
1.98
|
%
|
|
$
|
988
|
|
|
1.93
|
%
|
Retirement Services cost of crediting on institutional products
|
123
|
|
|
3.68
|
%
|
|
58
|
|
|
3.54
|
%
|
|
313
|
|
|
3.71
|
%
|
|
155
|
|
|
3.29
|
%
|
||||
Retirement Services cost of crediting
|
$
|
576
|
|
|
1.96
|
%
|
|
$
|
453
|
|
|
1.86
|
%
|
|
$
|
1,658
|
|
|
1.93
|
%
|
|
$
|
1,143
|
|
|
1.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retirement Services average invested assets
|
$
|
117,338
|
|
|
|
|
$
|
97,500
|
|
|
|
|
$
|
114,391
|
|
|
|
|
$
|
85,163
|
|
|
|
||||
Average account value on deferred annuities
|
91,467
|
|
|
|
|
79,673
|
|
|
|
|
90,638
|
|
|
|
|
68,421
|
|
|
|
||||||||
Average institutional reserve liabilities
|
13,320
|
|
|
|
|
6,608
|
|
|
|
|
11,200
|
|
|
|
|
6,301
|
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
GAAP benefits and expenses
|
$
|
4,222
|
|
|
$
|
1,897
|
|
|
$
|
11,062
|
|
|
$
|
4,067
|
|
Premiums
|
(2,605
|
)
|
|
(526
|
)
|
|
(5,304
|
)
|
|
(1,535
|
)
|
||||
Product charges
|
(135
|
)
|
|
(119
|
)
|
|
(392
|
)
|
|
(321
|
)
|
||||
Other revenues
|
(6
|
)
|
|
(10
|
)
|
|
(27
|
)
|
|
(22
|
)
|
||||
Cost of crediting
|
(280
|
)
|
|
(193
|
)
|
|
(775
|
)
|
|
(497
|
)
|
||||
Change in fair value of embedded derivatives – FIA, net of offsets
|
(497
|
)
|
|
(768
|
)
|
|
(2,574
|
)
|
|
(939
|
)
|
||||
DAC, DSI and VOBA amortization related to investment gains and losses
|
(151
|
)
|
|
28
|
|
|
(505
|
)
|
|
74
|
|
||||
Rider reserves related to investment gains and losses
|
(9
|
)
|
|
1
|
|
|
(61
|
)
|
|
8
|
|
||||
Policy and other operating expenses, excluding policy acquisition expenses
|
(130
|
)
|
|
(98
|
)
|
|
(350
|
)
|
|
(293
|
)
|
||||
AmerUs closed block fair value liability
|
(46
|
)
|
|
8
|
|
|
(158
|
)
|
|
98
|
|
||||
Other
|
(5
|
)
|
|
1
|
|
|
(3
|
)
|
|
9
|
|
||||
Total adjustments to arrive at other liability costs
|
(3,864
|
)
|
|
(1,676
|
)
|
|
(10,149
|
)
|
|
(3,418
|
)
|
||||
Other liability costs
|
$
|
358
|
|
|
$
|
221
|
|
|
$
|
913
|
|
|
$
|
649
|
|
|
|
|
|
|
|
|
|
||||||||
Retirement Services
|
$
|
358
|
|
|
$
|
221
|
|
|
$
|
913
|
|
|
$
|
649
|
|
Corporate and Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consolidated other liability costs
|
$
|
358
|
|
|
$
|
221
|
|
|
$
|
913
|
|
|
$
|
649
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
GAAP policy and other operating expenses
|
$
|
194
|
|
|
$
|
158
|
|
|
$
|
544
|
|
|
$
|
454
|
|
Interest expense
|
(15
|
)
|
|
(15
|
)
|
|
(47
|
)
|
|
(44
|
)
|
||||
Policy acquisition expenses, net of deferrals
|
(63
|
)
|
|
(60
|
)
|
|
(194
|
)
|
|
(163
|
)
|
||||
Integration, restructuring and other non-operating expenses
|
(34
|
)
|
|
(2
|
)
|
|
(46
|
)
|
|
(18
|
)
|
||||
Stock compensation expenses
|
(3
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(8
|
)
|
||||
Total adjustments to arrive at operating expenses
|
(115
|
)
|
|
(80
|
)
|
|
(296
|
)
|
|
(233
|
)
|
||||
Operating expenses
|
$
|
79
|
|
|
$
|
78
|
|
|
$
|
248
|
|
|
$
|
221
|
|
|
|
|
|
|
|
|
|
||||||||
Retirement Services
|
$
|
67
|
|
|
$
|
63
|
|
|
$
|
197
|
|
|
$
|
177
|
|
Corporate and Other
|
12
|
|
|
15
|
|
|
51
|
|
|
44
|
|
||||
Consolidated operating expenses
|
$
|
79
|
|
|
$
|
78
|
|
|
$
|
248
|
|
|
$
|
221
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Total investments, including related parties
|
$
|
127,101
|
|
|
$
|
107,632
|
|
Derivative assets
|
(2,386
|
)
|
|
(1,043
|
)
|
||
Cash and cash equivalents (including restricted cash)
|
4,032
|
|
|
3,403
|
|
||
Accrued investment income
|
781
|
|
|
682
|
|
||
Payables for collateral on derivatives
|
(2,323
|
)
|
|
(969
|
)
|
||
Reinsurance funds withheld and modified coinsurance
|
(1,698
|
)
|
|
223
|
|
||
VIE and VOE assets, liabilities and noncontrolling interest
|
669
|
|
|
718
|
|
||
Unrealized (gains) losses
|
(4,243
|
)
|
|
808
|
|
||
Ceded policy loans
|
(277
|
)
|
|
(281
|
)
|
||
Net investment receivables (payables)
|
(516
|
)
|
|
(139
|
)
|
||
Total adjustments to arrive at invested assets
|
(5,961
|
)
|
|
3,402
|
|
||
Total invested assets
|
$
|
121,140
|
|
|
$
|
111,034
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Investment funds, including related parties and VIEs
|
$
|
4,094
|
|
|
$
|
3,559
|
|
Nonredeemable preferred stock included in equity securities
|
506
|
|
|
—
|
|
||
CLO equities included in trading securities
|
101
|
|
|
125
|
|
||
Investment funds within funds withheld at interest
|
745
|
|
|
660
|
|
||
Royalties and other assets included in other investments
|
67
|
|
|
71
|
|
||
Net assets of the VIE, excluding investment funds
|
(2
|
)
|
|
50
|
|
||
Unrealized (gains) losses and other adjustments
|
11
|
|
|
27
|
|
||
Total adjustments to arrive at alternative investments
|
1,428
|
|
|
933
|
|
||
Alternative investments
|
$
|
5,522
|
|
|
$
|
4,492
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Total liabilities
|
$
|
130,657
|
|
|
$
|
117,229
|
|
Long-term debt
|
(992
|
)
|
|
(991
|
)
|
||
Derivative liabilities
|
(46
|
)
|
|
(85
|
)
|
||
Payables for collateral on derivatives
|
(2,323
|
)
|
|
(969
|
)
|
||
Funds withheld liability
|
(768
|
)
|
|
(721
|
)
|
||
Other liabilities
|
(1,708
|
)
|
|
(888
|
)
|
||
Liabilities of consolidated VIEs
|
(1
|
)
|
|
(1
|
)
|
||
Reinsurance ceded receivables
|
(5,697
|
)
|
|
(5,534
|
)
|
||
Policy loans ceded
|
(277
|
)
|
|
(281
|
)
|
||
Other
|
(20
|
)
|
|
(27
|
)
|
||
Total adjustments to arrive at reserve liabilities
|
(11,832
|
)
|
|
(9,497
|
)
|
||
Total reserve liabilities
|
$
|
118,825
|
|
|
$
|
107,732
|
|
•
|
our projected net cumulative cash flows, including both new business and target levels of new investments under a “plan scenario” and a “moderately severe scenario” event, are non-negative over a rolling 12-month horizon;
|
•
|
we hold enough cash, cash equivalents and other discounted liquid limit assets to cover 12 months of AHL’s and Athene USA’s projected obligations, including debt servicing costs:
|
▪
|
minimum of 50% of expenses and 100% of debt servicing to be held in cash and cash equivalents at AHL operating accounts
|
▪
|
minimum of 50% of any required AHL – Athene USA inter-company loan commitments to be held in cash and cash equivalents by AHL
|
▪
|
dividends from ALRe sufficient to support the ongoing operations of AHL must be available under moderate and substantial stress scenarios
|
▪
|
for purposes of administering this test, liquid limit assets are discounted by 25% and include public corporate bonds rated A- or above, liquid ABS (defined as prime auto, auto floorplan, Tier 1 subprime auto, auto lease, prime credit cards, equipment lease or utility stranded assets); RMBS with weighted average lives less than three years rated A- or above and CMBS with weighted average lives less than three years rated AAA- or above; and
|
•
|
we seek to maintain sufficient capital and surplus at ALRe to meet the following collateral and capital maintenance calls under a substantial stress event, such as the failure of a major financial institution (Lehman event):
|
▪
|
collateral calls from modco and third-party reinsurance contracts
|
▪
|
Athene Annuity Re Ltd. (AARe) capital maintenance calls arising from AARe collateral calls from modco reinsurance contracts; and
|
▪
|
U.S. regulated entity capital maintenance calls from nonmodco activity.
|
|
Nine months ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Net income
|
$
|
1,721
|
|
|
$
|
1,157
|
|
Payment at inception of reinsurance agreements, net
|
—
|
|
|
(394
|
)
|
||
Non-cash revenues and expenses
|
264
|
|
|
380
|
|
||
Net cash provided by operating activities
|
1,985
|
|
|
1,143
|
|
||
Sales, maturities and repayments of investments
|
11,763
|
|
|
12,818
|
|
||
Purchases of investments
|
(19,543
|
)
|
|
(18,821
|
)
|
||
Deconsolidation of Athora Holding Ltd.
|
—
|
|
|
(296
|
)
|
||
Other investing activities
|
521
|
|
|
245
|
|
||
Net cash used in investing activities
|
(7,259
|
)
|
|
(6,054
|
)
|
||
Deposits on investment-type policies and contracts
|
8,879
|
|
|
7,011
|
|
||
Withdrawals on investment-type policies and contracts
|
(4,846
|
)
|
|
(4,254
|
)
|
||
Net change in cash collateral posted for derivative transactions
|
1,354
|
|
|
(8
|
)
|
||
Net proceeds and repayments of debt
|
—
|
|
|
998
|
|
||
Issuance of preferred stock, net of expenses
|
1,172
|
|
|
—
|
|
||
Preferred stock dividends
|
(17
|
)
|
|
—
|
|
||
Repurchase of common stock
|
(548
|
)
|
|
(5
|
)
|
||
Other financing activities
|
(90
|
)
|
|
115
|
|
||
Net cash provided by financing activities
|
5,904
|
|
|
3,857
|
|
||
Net increase (decrease) in cash and cash equivalents1
|
$
|
630
|
|
|
$
|
(1,054
|
)
|
|
|
|
|
||||
1 Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated VIEs.
|
•
|
fair value of investments;
|
•
|
impairment of investments and valuation allowances;
|
•
|
future policy benefit reserves;
|
•
|
derivatives valuation, including embedded derivatives;
|
•
|
deferred acquisition costs, deferred sales inducements and value of business acquired;
|
•
|
stock-based compensation;
|
•
|
consolidation of VIEs; and
|
•
|
valuation allowances on deferred tax assets.
|
(1)
|
a base management fee equal to the sum of (i) 0.225% per annum of the lesser of (A) the aggregate market value of substantially all of the assets in substantially all of the investment accounts of or relating to us (collectively, the Accounts) on December 31, 2018 (Backbook Value) and (B) the aggregate market value of substantially all of the assets in the Accounts at the end of the respective month, plus (ii) 0.15% per annum of the amount, if any (Incremental Value), by which the aggregate market value of substantially all of the assets in the Accounts at the end of the respective month exceeds the Backbook Value; plus
|
(2)
|
with respect to each asset in an Account, subject to certain exceptions, that is managed by Apollo and that belongs to a specified asset class tier, a sub-allocation fee as follows, which will, in the case of assets acquired after January 1, 2019, be subject to a cap of 10% of the applicable asset’s gross book yield, as further described in the Fee Agreement:
|
(i)
|
0.065% of the market value of Core assets, which include public investment grade corporate bonds, municipal securities, agency RMBS or CMBS, and obligations of governmental agencies or government sponsored entities that are not expressly backed by the U.S. government;
|
(ii)
|
0.13% of the market value of Core Plus assets, which include private investment grade corporate bonds, fixed rate first lien CML, and certain obligations issued or assumed by financial institutions and determined by Apollo to be “Tier 2 Capital” under Basel III, a set of recommendations for international banking regulations developed by the Bank for International Settlements;
|
(iii)
|
0.375% of the market value of Yield assets, which include non-agency RMBS, investment grade CLO, CMBS and other ABS (other than RMBS and CLO), emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial institution, rated preferred equity, RML, bank loans, investment grade infrastructure debt, and floating rate CMLs on slightly transitional or stabilized traditional real estate;
|
(iv)
|
0.70% of the market value of High Alpha assets, which include subordinated CML, below investment grade CLO, unrated preferred equity, debt obligations originated by MidCap, CMLs for redevelopment or construction loans or secured by non-traditional real estate, below investment grade infrastructure debt, certain loans originated directly by Apollo (other than MidCap loans), and agency mortgage derivatives; and
|
(v)
|
0.00% of the market value of cash and cash equivalents, U.S. treasuries, non-preferred equities and alternatives.
|
Period
|
(a) Total number of shares purchased1
|
(b) Average price paid per share
|
(c) Total number of shares purchased as part of publicly announced programs1,2
|
(d) Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs2
|
||||||
July 1 – July 31, 2019
|
454,963
|
|
$
|
42.34
|
|
454,860
|
|
$
|
75,000,025
|
|
August 1 – August 31, 2019
|
548,754
|
|
$
|
39.08
|
|
548,754
|
|
$
|
403,552,606
|
|
September 1 – September 30, 2019
|
1,889,877
|
|
$
|
42.52
|
|
1,889,877
|
|
$
|
323,195,285
|
|
|
|
|
|
|
||||||
1 Differences in amounts between column (a) and (c) relate to shares withheld (under the terms of employee stock-based compensation plans) to offset tax withholding obligations that occur upon the delivery of outstanding shares underlying equity awards or upon the exercise of stock options.
|
||||||||||
2 On December 10, 2018, we announced that our board of directors had approved an authorization for the repurchase of up to $250 million of our Class A shares (Previous Authorization). On May 7, 2019, we announced that our board of directors had approved an authorization for the repurchase of up to $350 million of our Class A shares, inclusive of the remaining shares authorized for repurchase under the Previous Authorization. On June 10, 2019, we announced that our board of directors had approved an additional $120 million authorization for the repurchase our Class A shares. On August 5, 2019, we announced that our board of directors had approved an additional $350 million authorization for the repurchase of our Class A shares. On October 28, 2019, we announced that our board of directors had approved an additional $600 million authorization for the repurchase of our Class A shares. None of the authorizations have a definitive expiration date, but may be terminated at any time at the sole discretion of our board of directors. See Note 8 – Equity to the condensed consolidated financial statements for more information.
|
Exhibit No.
|
Description
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
10.1
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH
|
XBRL Taxonomy Extension Schema.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
|
ATHENE HOLDING LTD.
|
|
|
Date: November 5, 2019
|
/s/ Martin P. Klein
|
|
Martin P. Klein
|
|
Executive Vice President and Chief Financial Officer
|
|
(principal financial officer and duly authorized signatory)
|
TABLE OF CONTENTS
|
||
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION
|
||
Section 1.01
|
Defined Terms
|
2
|
Section 1.02
|
Certain Rules of Construction
|
5
|
|
|
|
ARTICLE II QUALIFYING TRANSACTIONS
|
||
Section 2.01
|
Participation Right
|
5
|
Section 2.02
|
Cooperation
|
5
|
Section 2.03
|
Election to Participate in a Qualifying Transaction
|
5
|
Section 2.04
|
Negotiation of the Transaction Agreements
|
6
|
Section 2.05
|
Capital Requirements for Approved Qualifying Transactions
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7
|
|
|
|
ARTICLE III WRAP FEE AND STEP-UP FEE
|
||
Section 3.01
|
Wrap Fee; Step-up Fee
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7
|
|
|
|
ARTICLE IV CONFIDENTIALITY; JOINDER
|
||
Section 4.01
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Confidentiality
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8
|
Section 4.02
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Joinder
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8
|
|
|
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ARTICLE V TERM; TERMINATION
|
||
Section 5.01
|
Duration
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8
|
|
|
|
ARTICLE VI REPRESENTATIONS AND WARRANTIES
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||
Section 6.01
|
Representations and Warranties of ALRe
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9
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Section 6.02
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Representations and Warranties of the ACRA Investment Entities
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9
|
|
|
|
ARTICLE VII DISPUTE RESOLUTION
|
||
Section 7.01
|
Arbitration
|
10
|
|
|
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ARTICLE VIII MISCELLANEOUS
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||
Section 8.01
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Governing Law and Jurisdiction
|
10
|
Section 8.02
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Offset and Recoupment Rights
|
11
|
Section 8.03
|
Severability
|
11
|
Section 8.04
|
Binding Effect; Assignment; No Third Party Benefit
|
11
|
Section 8.05
|
Amendments; Waivers
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11
|
Section 8.06
|
Notices
|
11
|
Section 8.07
|
Entire Agreement
|
12
|
Section 8.08
|
Counterparts; Effectiveness
|
12
|
Section 8.09
|
Further Assurances
|
12
|
Section 8.10
|
Injunctive Relief
|
12
|
Section 8.11
|
Survival
|
12
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1.
|
I have reviewed this Quarterly Report on Form 10-Q of Athene Holding Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
|
Date: November 5, 2019
|
/s/ James R. Belardi
|
|
James R. Belardi
|
|
Chairman, Chief Executive Officer and Chief Investment Officer
|
|
(principal executive officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Athene Holding Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
|
Date: November 5, 2019
|
/s/ Martin P. Klein
|
|
Martin P. Klein
|
|
Executive Vice President and Chief Financial Officer
|
|
(principal financial officer)
|
|
|
|
|
Date: November 5, 2019
|
/s/ James R. Belardi
|
|
James R. Belardi
|
|
Chairman, Chief Executive Officer and Chief Investment Officer
|
|
(principal executive officer)
|
|
|
|
|
Date: November 5, 2019
|
/s/ Martin P. Klein
|
|
Martin P. Klein
|
|
Executive Vice President and Chief Financial Officer
|
|
(principal financial officer)
|