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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 05, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	0-31248
Entity Registrant Name	ALLSTATE LIFE INSURANCE CO
Entity Incorporation, State or Country Code	IL
Entity Tax Identification Number	36-2554642
Entity Address, Address Line One	3075 Sanders Road
Entity Address, City or Town	Northbrook
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60062
City Area Code	847
Local Phone Number	402-5000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,800
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000352736
Amendment Flag	false
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net investment income	$ 373	$ 385	$ 1,101	$ 1,211
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(10)	(3)	(23)	(5)
OTTI losses reclassified from other comprehensive income (“OCI”)	2	(1)	3	(2)
Net OTTI losses recognized in earnings	(8)	(4)	(20)	(7)
Sales and valuation changes on equity investments and derivatives	33	52	239	31
Total realized capital gains and losses	25	48	219	24
Total revenues	742	787	2,372	2,306
Costs and expenses
Contract benefits	366	362	1,104	1,089
Interest credited to contractholder funds	154	150	445	450
Amortization of deferred policy acquisition costs	71	39	136	117
Operating costs and expenses	51	63	186	199
Restructuring and related charges	1	0	1	2
Interest expense	1	1	3	3
Total costs and expenses	644	615	1,875	1,860
Gain on disposition of operations	0	1	3	4
Income from operations before income tax expense	98	173	500	450
Income tax expense (benefit)	18	(20)	99	33
Net income	80	193	401	417
Other comprehensive income (loss), after-tax
Change in unrealized net capital gains and losses	157	(44)	673	(280)
Change in unrealized foreign currency translation adjustments	1	(9)	(4)	0
Other comprehensive income (loss), after-tax	158	(53)	669	(280)
Comprehensive income	238	140	1,070	137
Premiums
Revenues	165	174	506	526
Contract charges
Revenues	168	170	514	519
Other revenue
Revenues	$ 11	$ 10	$ 32	$ 26

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investments
Fixed income securities, at fair value (amortized cost $20,419 and $21,057)	$ 22,000	$ 21,400
Mortgage loans	4,012	3,995
Equity securities, at fair value (cost $923 and $1,197)	1,217	1,325
Limited partnership interests	3,304	3,292
Short-term, at fair value (amortized cost $1,475 and $810)	1,475	810
Policy loans	555	561
Other	1,366	1,300
Total investments	33,929	32,683
Cash	50	52
Deferred policy acquisition costs	973	1,232
Reinsurance recoverables	2,480
Accrued investment income	248	253
Other assets	586	534
Separate Accounts	2,912	2,783
Total assets	41,178	40,142
Liabilities
Contractholder funds	16,843	17,470
Reserve for life-contingent contract benefits	11,361	11,239
Unearned premiums	4	4
Payable to affiliates, net	34	50
Other liabilities and accrued expenses	1,297	1,101
Deferred income taxes	900	663
Notes due to related parties	140	140
Separate Accounts	2,912	2,783
Total liabilities	33,491	33,450
Commitments and Contingent Liabilities
Shareholder’s equity
Common stock, $227 par value, 23,800 shares authorized and outstanding	5	5
Additional capital paid-in	2,024	2,024
Retained income	4,736	4,410
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	50	45
Other unrealized net capital gains and losses	1,198	225
Unrealized adjustment to DAC, DSI and insurance reserves	(332)	(27)
Total unrealized net capital gains and losses	916	243
Unrealized foreign currency translation adjustments	6	10
Total accumulated other comprehensive income (“AOCI”)	922	253
Total shareholder’s equity	7,687	6,692
Total liabilities and shareholder’s equity	41,178	40,142
Redeemable preferred stock - series A, $100 par value, 1,500,000 shares authorized, none issued
Shareholder’s equity
Redeemable preferred stock	0	0
Redeemable preferred stock - series B, $100 par value, 1,500,000 shares authorized, none issued
Shareholder’s equity
Redeemable preferred stock	0	0
Affiliates
Investments
Reinsurance recoverables	408	420
Non-affiliates
Investments
Reinsurance recoverables	$ 2,072	$ 2,185

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fixed income securities, at fair value, amortized cost	$ 20,419	$ 21,057
Equity securities, at fair value, cost	923	1,197
Short-term, at fair value, amortized cost	$ 1,475	$ 810
Common stock, par value (in dollars per share)	$ 227	$ 227
Common stock, shares authorized (in shares)	23,800	23,800
Common stock, shares outstanding (in shares)	23,800	23,800
Series A
Redeemable preferred stock, par value (in dollars per share)	$ 100	$ 100
Redeemable preferred stock, shares authorized (in shares)	1,500,000	1,500,000
Redeemable preferred stock, shares issued (in shares)	0	0
Series B
Redeemable preferred stock, par value (in dollars per share)	$ 100	$ 100
Redeemable preferred stock, shares authorized (in shares)	1,500,000	1,500,000
Redeemable preferred stock, shares issued (in shares)	0	0

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (unaudited) - USD ($) $ in Millions	Total	Common stock	Additional capital paid-in	Retained income	Accumulated other comprehensive income
Balance, beginning of period at Dec. 31, 2017				$ 3,981	$ 845
Increase (decrease) in equity
Net income	$ 417			417
Change in unrealized net capital gains and losses	(280)				(280)
Change in unrealized foreign currency translation adjustments	0				0
Dividends				(100)
Balance, end of period at Sep. 30, 2018	6,968	$ 5	$ 2,024	4,612	327
Balance, beginning of period at Jun. 30, 2018				4,519	380
Increase (decrease) in equity
Net income	193			193
Change in unrealized net capital gains and losses	(44)				(44)
Change in unrealized foreign currency translation adjustments	(9)				(9)
Dividends				(100)
Balance, end of period at Sep. 30, 2018	6,968	5	2,024	4,612	327
Balance, beginning of period at Dec. 31, 2018	6,692			4,410	253
Increase (decrease) in equity
Net income	401			401
Change in unrealized net capital gains and losses	673				673
Change in unrealized foreign currency translation adjustments	(4)				(4)
Dividends	(75)			(75)
Balance, end of period at Sep. 30, 2019	7,687	5	2,024	4,736	922
Balance, beginning of period at Jun. 30, 2019				4,656	764
Increase (decrease) in equity
Net income	80			80
Change in unrealized net capital gains and losses	157				157
Change in unrealized foreign currency translation adjustments	1				1
Dividends				0
Balance, end of period at Sep. 30, 2019	$ 7,687	$ 5	$ 2,024	$ 4,736	$ 922

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 401	$ 417
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and other non-cash items	(49)	(44)
Realized capital gains and losses	(219)	(24)
Gain on disposition of operations	(3)	(4)
Interest credited to contractholder funds	445	450
Changes in:
Policy benefits and other insurance reserves	(495)	(472)
Deferred policy acquisition costs	94	55
Reinsurance recoverables, net	77	51
Income taxes	(16)	(51)
Other operating assets and liabilities	20	69
Net cash provided by operating activities	255	447
Proceeds from sales
Fixed income securities	3,021	4,057
Equity securities	853	1,114
Limited partnership interests	258	223
Other investments	55	16
Investment collections
Fixed income securities	964	1,077
Mortgage loans	364	349
Other investments	58	137
Investment purchases
Fixed income securities	(3,284)	(4,470)
Equity securities	(540)	(919)
Limited partnership interests	(298)	(426)
Mortgage loans	(381)	(395)
Other investments	(96)	(201)
Change in short-term investments, net	(467)	(124)
Change in policy loans and other investments, net	(23)	(46)
Net cash provided by investing activities	484	392
Cash flows from financing activities
Contractholder fund deposits	565	577
Contractholder fund withdrawals	(1,231)	(1,418)
Dividends paid	(75)	(100)
Other	0	28
Net cash used in financing activities	(741)	(913)
Net decrease in cash	(2)	(74)
Cash at beginning of period	52	145
Cash at end of period	$ 50	$ 71

General

9 Months Ended

Sep. 30, 2019

General [Abstract]

General

Basis of presentation

The accompanying condensed consolidated financial statements include the accounts of Allstate Life Insurance Company (“ALIC”) and its wholly owned subsidiaries (collectively referred to as the “Company”). ALIC is wholly owned by Allstate Insurance Company (“AIC”), which is wholly owned by Allstate Insurance Holdings, LLC, a wholly owned subsidiary of The Allstate Corporation (the “Corporation”). These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The condensed consolidated financial statements and notes as of September 30, 2019 and for the three and nine month periods ended September 30, 2019 and 2018 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated.

Dividends

The Company paid cash dividends of $75 million to AIC in the second quarter of 2019.

Premiums and contract charges

The following table summarizes premiums and contract charges by product.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Premiums
Traditional life insurance	$	135	$	143	$	416	$	435
Accident and health insurance	30		31		90		91
Total premiums	165		174		506		526

Contract charges
Interest-sensitive life insurance	165		165		505		508
Fixed annuities	3		5		9		11
Total contract charges	168		170		514		519
Total premiums and contract charges	$	333	$	344	$	1,020	$	1,045

Adopted accounting standard

Accounting for Hedging Activities

Effective January 1, 2019, the Company adopted new Financial Accounting Standards Board (“FASB”) guidance intended to better align hedge accounting with an organization’s risk management activities. The new guidance expands hedge accounting to nonfinancial and financial risk components and revises the measurement methodologies. Separate presentation of hedge ineffectiveness is eliminated with the intention to provide greater transparency to the full impact of hedging by requiring presentation of the results of the hedged item and hedging instrument in a single financial statement line item. In addition, the amendments were designed to reduce complexity by simplifying hedge effectiveness testing. The adoption had no impact on the Company’s results of operations or financial position.

Pending accounting standards

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost, including reinsurance recoverables. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for a reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance that when deducted from the amortized cost basis of the related financial assets results in a net carrying value at the amount expected to be collected. The reporting entity must consider all relevant information available when estimating expected credit losses, including details about past events, current

conditions, and reasonable and supportable forecasts over the life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through a valuation allowance which may change over time but once recorded cannot subsequently be reduced to an amount below zero. The guidance is effective for reporting periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income.

The Company’s implementation activities, which remain in process, include review and validation of models, methodologies, data inputs and assumptions to be used to estimate expected credit losses. The implementation impacts relate primarily to the Company’s commercial mortgage loans, bank loans and reinsurance recoverables and will depend on economic conditions and judgments at the date of adoption as well as the size and composition of the loan portfolios and reinsurance balances. Based on current economic conditions and the balances at the reporting date, the Company anticipates application of the current expected credit loss requirements will result in total valuation allowances for credit losses of between $70 million and $110 million, pre-tax, as of the date of adoption. After consideration of existing valuation allowances maintained prior to adopting the new guidance, the Company would anticipate recognizing a cumulative effect decrease in retained income of between $45 million and $75 million, after-tax, to adjust existing valuation allowances to the basis in the new requirements.

Accounting for Long-Duration Insurance Contracts

In August 2018, the FASB issued guidance revising the accounting for certain long-duration insurance contracts. The new guidance introduces material changes to the measurement of the Company’s reserves for traditional life, life-contingent immediate annuities and certain voluntary accident and health insurance products. Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed and updated at least annually. The effect of updating measurement assumptions other than the discount rate are required to be measured on a retrospective basis and reported in net income. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield required to be updated through OCI at each reporting date. Current GAAP requires reserves to utilize assumptions set at policy issuance unless updated current assumptions indicate that recorded reserves are deficient.

The new guidance also requires deferred policy acquisition costs (“DAC”) and other capitalized balances currently amortized in proportion to premiums or gross profits to be amortized on a constant level basis over the expected term for all long-duration insurance contracts. DAC will not be subject to loss recognition testing but will be reduced when actual lapse experience exceeds expected experience. The new guidance will no longer require adjustments to DAC and deferred sales inducement costs (“DSI”) related to unrealized gains and losses on investment securities supporting the related business.

All market risk benefit product features will be measured at fair value with changes in fair value recorded in net income with the exception of changes in the fair value attributable to changes in the reporting entity’s own credit risk, which are required to be recognized in OCI. Substantially all of the Company’s market risk benefits are reinsured and therefore these impacts are not expected to be material to the Company.

The new guidance is expected to be included in the comparable financial statements issued in reporting periods beginning after December 15, 2021, thereby requiring restatement of prior periods presented. Early adoption is permitted. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented or retrospectively using actual historical experience as of contract inception. The new guidance for market risk benefits is required to be adopted retrospectively. In October 2019, the FASB affirmed its decision to delay the effective date of the new guidance by one year to reporting periods beginning after December 15, 2021.

The Company is evaluating the anticipated impacts of applying the new guidance to both retained income and AOCI. The requirements of the new guidance represent a material change from existing GAAP, however, the underlying economics of the business and related cash flows are unchanged. The Company is evaluating the specific impacts of adopting the new guidance and anticipates the financial statement impact of adopting the new guidance to be material, largely attributed to the impact of transitioning to a discount rate based on an upper-medium grade fixed income investment yield and updates to mortality assumptions. The Company expects the most significant impacts will occur in the run-off annuity business. The revised accounting for DAC will be applied prospectively using the new model and any DAC effects existing in AOCI as a result of applying existing GAAP at the date of adoption will be reversed.

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2019

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Non-cash investing activities include $64 million and $38 million related to mergers and exchanges completed with equity securities, fixed income securities and limited partnerships, and modifications of certain mortgage loans and other investments for the nine months ended September 30, 2019 and 2018, respectively.

Liabilities for collateral received in conjunction with the Company’s securities lending program and over-the-counter (“OTC”) and cleared derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:



($ in millions)	Nine months ended September 30,
	2019			2018
Net change in proceeds managed
Net change in fixed income securities	$	28		$	78
Net change in short-term investments	(194		)	(72		)
Operating cash flow (used) provided	$	(166	)	$	6

Net change in liabilities
Liabilities for collateral, beginning of period	$	(525	)	$	(542	)
Liabilities for collateral, end of period	(691		)	(536		)
Operating cash flow provided (used)	$	166		$	(6	)

Investments

9 Months Ended

Sep. 30, 2019

Investments [Abstract]

Investments

Fair values

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:



($ in millions)	Amortized		Gross unrealized					Fair
	cost		Gains		Losses			value
September 30, 2019
U.S. government and agencies	$	555	$	40	$	—		$	595
Municipal	1,592		324		(3		)	1,913
Corporate	17,644		1,193		(38		)	18,799
Foreign government	155		8		—			163
Asset-backed securities (“ABS”)	315		4		(2		)	317
Residential mortgage-backed securities (“RMBS”)	123		49		—			172
Commercial mortgage-backed securities (“CMBS”)	22		6		(1		)	27
Redeemable preferred stock	13		1		—			14
Total fixed income securities	$	20,419	$	1,625	$	(44	)	$	22,000

December 31, 2018
U.S. government and agencies	$	740	$	33	$	—		$	773
Municipal	1,997		202		(4		)	2,195
Corporate	17,521		433		(381		)	17,573
Foreign government	170		9		—			179
ABS	429		3		(3		)	429
RMBS	154		44		(1		)	197
CMBS	33		7		—			40
Redeemable preferred stock	13		1		—			14
Total fixed income securities	$	21,057	$	732	$	(389	)	$	21,400

Scheduled maturities

The scheduled maturities for fixed income securities are as follows:



($ in millions)	As of September 30, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	1,410	$	1,426
Due after one year through five years	7,675		7,982
Due after five years through ten years	7,354		7,845
Due after ten years	3,520		4,231
	19,959		21,484
ABS, RMBS and CMBS	460		516
Total	$	20,419	$	22,000

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS, RMBS and CMBS are shown separately because of the potential for prepayment of principal prior to contractual maturity dates.

Net investment income

Net investment income is as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Fixed income securities	$	235		$	247		$	721		$	745
Mortgage loans	48			44			140			141
Equity securities	6			7			26			30
Limited partnership interests	69			74			174			262
Short-term investments	8			7			24			16
Policy loans	9			8			25			23
Other	24			23			70			68
Investment income, before expense	399			410			1,180			1,285
Investment expense	(26		)	(25		)	(79		)	(74		)
Net investment income	$	373		$	385		$	1,101		$	1,211

Realized capital gains and losses

Realized capital gains (losses) by asset type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Fixed income securities	$	19		$	(8	)	$	17		$	(26	)
Mortgage loans	—			—			—			2
Equity securities	7			56			192			50
Limited partnership interests	(2		)	(4		)	8			(12		)
Derivatives	8			4			16			11
Other	(7		)	—			(14		)	(1		)
Realized capital gains (losses)	$	25		$	48		$	219		$	24

Realized capital gains (losses) by transaction type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Impairment write-downs	$	(8	)	$	(4	)	$	(20	)	$	(7	)
Sales	20			(2		)	20			(14		)
Valuation of equity investments ⁽¹⁾	5			50			203			37
Valuation and settlements of derivative instruments	8			4			16			8
Realized capital gains (losses)	$	25		$	48		$	219		$	24

_______________


⁽¹⁾	Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.

Sales of fixed income securities resulted in gross gains of $24 million and $5 million and gross losses of $4 million and $9 million during the three months ended September 30, 2019 and 2018, respectively. Sales of fixed income securities resulted in gross gains of $50 million and $25 million and gross losses of $29 million and $45 million during the nine months ended September 30, 2019 and 2018, respectively.

The following table presents the net pre-tax appreciation (decline) during 2019 and 2018 of equity securities and limited partnership interests carried at fair value still held as of September 30, 2019 and September 30, 2018 recognized in net income.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Equity securities	$	16	$	51	$	155	$	71
Limited partnership interests carried at fair value	21		35		41		84
Total	$	37	$	86	$	196	$	155

OTTI losses by asset type are as follows:



	Three months ended									Three months ended
($ in millions)	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	—			—			—			—			—			—
ABS	—			—			—			—			(1		)	(1		)
RMBS	—			—			—			—			—			—
CMBS	(1		)	—			(1		)	(3		)	—			(3		)
Total fixed income securities	(3		)	2			(1		)	(3		)	(1		)	(4		)
Limited partnership interests	—			—			—			—			—			—
Other	(7		)	—			(7		)	—			—			—
OTTI losses	$	(10	)	$	2		$	(8	)	$	(3	)	$	(1	)	$	(4	)

	Nine months ended									Nine months ended
	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	(1		)	(1		)	(2		)	—			—			—
ABS	(1		)	—			(1		)	—			(1		)	(1		)
RMBS	—			—			—			(1		)	—			(1		)
CMBS	(3		)	2			(1		)	(3		)	(1		)	(4		)
Total fixed income securities	(7		)	3			(4		)	(4		)	(2		)	(6		)
Limited partnership interests	(2		)	—			(2		)	—			—			—
Other	(14		)	—			(14		)	(1		)	—			(1		)
OTTI losses	$	(23	)	$	3		$	(20	)	$	(5	)	$	(2	)	$	(7	)

The total amount of OTTI losses included in AOCI at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amounts exclude $105 million and $101 million as of September 30, 2019 and December 31, 2018, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



($ in millions)	September 30, 2019			December 31, 2018
Municipal	$	(6	)	$	(4	)
Corporate	—			(1		)
ABS	(4		)	(5		)
RMBS	(28		)	(32		)
CMBS	(4		)	(2		)
Total	$	(42	)	$	(44	)

Rollforwards of cumulative credit losses recognized in earnings for fixed income securities held as of the end of the period are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Beginning balance	$	(122	)	$	(124	)	$	(123	)	$	(138	)
Additional credit loss for securities previously other-than-temporarily impaired	(1		)	(3		)	(3		)	(5		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			(1		)	(1		)	(1		)
Reduction in credit loss for securities disposed or collected	12			2			16			18
Change in credit loss due to accretion of increase in cash flows	—			1			—			1
Ending balance	$	(111	)	$	(125	)	$	(111	)	$	(125	)

The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. The determination of cash flow estimates is inherently subjective and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the estimated recovery value is less than the amortized cost of the security, a credit loss exists and an OTTI for the difference between the estimated recovery value and amortized cost is recorded in earnings. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

Unrealized net capital gains and losses

Unrealized net capital gains and losses included in AOCI are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
September 30, 2019	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	22,000	$	1,625	$	(44	)	$	1,581
Short-term investments	1,475		—		—			—
Equity method of accounting (“EMA”) limited partnerships⁽¹⁾								(1		)
Unrealized net capital gains and losses, pre-tax								1,580
Amounts recognized for:
Insurance reserves ⁽²⁾								(202		)
DAC and DSI ⁽³⁾								(218		)
Amounts recognized								(420		)
Deferred income taxes								(244		)
Unrealized net capital gains and losses, after-tax								$	916

_______________


⁽¹⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.


⁽²⁾	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).


⁽³⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2018	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	21,400	$	732	$	(389	)	$	343
Short-term investments	810		—		—			—
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								343
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(35		)
Amounts recognized								(35		)
Deferred income taxes								(65		)
Unrealized net capital gains and losses, after-tax								$	243

Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the nine months ended September 30, 2019 is as follows:



($ in millions)
Fixed income securities	$	1,238
EMA limited partnerships	(1		)
Total	1,237
Amounts recognized for:
Insurance reserves	(202		)
DAC and DSI	(183		)
Amounts recognized	(385		)
Deferred income taxes	(179		)
Increase in unrealized net capital gains and losses, after-tax	$	673

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, the security’s decline in fair value is considered other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in OCI.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential OTTI using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of OTTI for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value is other than temporary are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the length of time and extent to which the fair value has been less than amortized cost.

The following table summarizes the gross unrealized losses and fair value of securities by the length of time that individual securities have been in a continuous unrealized loss position.



($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
September 30, 2019
Fixed income securities
U.S. government and agencies	2	$	16	$	—		—	$	—	$	—		$	—
Municipal	2	2		—			1	14		(3		)	(3		)
Corporate	123	413		(9		)	59	343		(29		)	(38		)
ABS	18	38		(1		)	4	13		(1		)	(2		)
RMBS	6	2		—			25	4		—			—
CMBS	1	5		—			1	2		(1		)	(1		)
Redeemable preferred stock	—	—		—			—	—		—			—
Total fixed income securities	152	$	476	$	(10	)	90	$	376	$	(34	)	$	(44	)
Investment grade fixed income securities	82	$	325	$	(3	)	52	$	212	$	(18	)	$	(21	)
Below investment grade fixed income securities	70	151		(7		)	38	164		(16		)	(23		)
Total fixed income securities	152	$	476	$	(10	)	90	$	376	$	(34	)	$	(44	)

December 31, 2018
Fixed income securities
U.S. government and agencies	2	$	6	$	—		1	$	1	$	—		$	—
Municipal	38	98		(1		)	5	26		(3		)	(4		)
Corporate	1,260	6,799		(218		)	370	2,633		(163		)	(381		)
ABS	30	167		(1		)	11	31		(2		)	(3		)
RMBS	124	11		—			47	10		(1		)	(1		)
CMBS	3	7		—			2	—		—			—
Redeemable preferred stock	1	—		—			—	—		—			—
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)
Investment grade fixed income securities	948	$	5,255	$	(121	)	388	$	2,551	$	(147	)	$	(268	)
Below investment grade fixed income securities	510	1,833		(99		)	48	150		(22		)	(121		)
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)

The following table summarizes gross unrealized losses by unrealized loss position and credit quality as of September 30, 2019.



($ in millions)	Investment grade			Below investment grade			Total
Fixed income securities with unrealized loss position less than 20% of amortized cost^{(1) (2)}	$	(8	)	$	(20	)	$	(28	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(3		)	(16		)
Total unrealized losses	$	(21	)	$	(23	)	$	(44	)

_______________


⁽¹⁾	Below investment grade fixed income securities include $7 million that have been in an unrealized loss position for less than twelve months.


⁽²⁾	Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.


⁽³⁾	Below investment grade fixed income securities include zero that have been in an unrealized loss position for a period of twelve or more consecutive months.


⁽⁴⁾	Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

Investment grade is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from S&P Global Ratings (“S&P”), a comparable rating from another nationally recognized rating agency, or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates and/or wider credit spreads since the time of initial purchase. The unrealized losses are expected to reverse as the securities approach maturity.

ABS, RMBS and CMBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets.

As of September 30, 2019, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

Limited partnerships

Investments in limited partnership interests include interests in private equity funds, real estate funds and other funds. As of September 30, 2019 and December 31, 2018, the carrying value of EMA limited partnerships totaled $2.54 billion and $2.51 billion, respectively, and limited partnerships carried at fair value totaled $762 million and $787 million, respectively.

Mortgage loans

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or present value of the loan’s expected future repayment cash flows. Mortgage loans are charged off against their corresponding valuation allowances when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of September 30, 2019.

Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on mortgage loans on non-accrual status are generally recorded as a reduction of carrying value.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loans are evaluated for impairment. Debt service coverage ratio represents the amount of estimated cash flows from the property available to the borrower to meet

principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

The following table reflects the carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution.



($ in millions)	September 30, 2019						December 31, 2018
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	11	$	16	$	27	$	6	$	15	$	21
1.0 - 1.25	221		—		221		221		—		221
1.26 - 1.50	1,203		9		1,212		1,048		—		1,048
Above 1.50	2,502		44		2,546		2,659		42		2,701
Total non-impaired mortgage loans	$	3,937	$	69	$	4,006	$	3,934	$	57	$	3,991

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

The net carrying value of impaired mortgage loans is as follows:



($ in millions)	September 30, 2019		December 31, 2018
Impaired mortgage loans with a valuation allowance	$	6	$	4
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	4
Valuation allowance on impaired mortgage loans	$	3	$	3

The valuation allowance on impaired mortgage loans had no activity for the three months and nine months ended September 30, 2019 and 2018. The average balance of impaired loans was $4 million for both the nine months ended September 30, 2019 and 2018.

Payments on all mortgage loans were current as of September 30, 2019 and December 31, 2018.

Short-term investments

Short-term investments, including commercial paper, money market funds, U.S. Treasury bills and other short-term investments, are carried at fair value. As of September 30, 2019 and December 31, 2018, the fair value of short-term investments totaled $1.48 billion and $810 million, respectively.

Policy loans

Policy loans are carried at unpaid principal balances. As of September 30, 2019 and December 31, 2018, the carrying value of policy loans totaled $555 million and $561 million, respectively.

Other investments

Other investments primarily consist of agent loans, bank loans, real estate and derivatives. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value. The following table summarizes other investments by asset type.



($ in millions)	September 30, 2019		December 31, 2018
Agent loans	$	663	$	620
Bank loans	363		422
Real estate	243		228
Derivatives and other	97		30
Total	$	1,366	$	1,300

Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:


(a)	Quoted prices for similar assets or liabilities in active markets;


(b)	Quoted prices for identical or similar assets or liabilities in markets that are not active; or


(c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy. The first is where specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs.

The second situation where the Company classifies securities in Level 3 is where quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, bank loans, agent loans and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting remeasurement is reflected in the condensed consolidated financial statements.

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements


•	Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Short-term: Comprise U.S. Treasury bills valued based on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.


•	Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements


•	Fixed income securities:

U.S. government and agencies: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - public: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - privately placed: Valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

Foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

ABS - collateralized debt obligations (“CDO”) and ABS - consumer and other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Certain ABS - CDO and ABS - consumer and other are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable.

RMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads.

Redeemable preferred stock: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.


•	Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.


•	Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

OTC derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves,

implied volatilities, index price levels, currency rates, and credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

Level 3 measurements


•	Fixed income securities:

Municipal: Comprise municipal bonds that are not rated by third-party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows.

Corporate - public and Corporate - privately placed: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

ABS - CDO, ABS - consumer and other, and CMBS: Valued based on non-binding broker quotes received from brokers who are familiar with the investments and where the inputs have not been corroborated to be market observable.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

•

Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps and certain options (including swaptions), are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads.

•

Contractholder funds: Derivatives embedded in certain life and annuity contracts are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs.

Assets and liabilities measured at fair value on a non-recurring basis

Mortgage loans written-down to fair value in connection with recognizing impairments are valued based on the fair value of the underlying collateral less costs to sell. Bank loans written-down to fair value are valued based on broker quotes from brokers familiar with the loans and current market conditions or based on internal valuation models.

Investments excluded from the fair value hierarchy

Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy. These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10-12 years. As of September 30, 2019, the Company has commitments to invest $221 million in these limited partnership interests.

The following table summarizes the Company’s assets and liabilities measured at fair value as of September 30, 2019.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of September 30, 2019
Assets
Fixed income securities:
U.S. government and agencies	$	302		$	293		$	—					$	595
Municipal	—			1,871			42						1,913
Corporate - public	—			12,954			54						13,008
Corporate - privately placed	—			5,695			96						5,791
Foreign government	—			163			—						163
ABS - CDO	—			19			7						26
ABS - consumer and other	—			278			13						291
RMBS	—			172			—						172
CMBS	—			25			2						27
Redeemable preferred stock	—			14			—						14
Total fixed income securities	302			21,484			214						22,000
Equity securities	1,081			12			124						1,217
Short-term investments	802			673			—						1,475
Other investments: Free-standing derivatives	—			112			—			$	(16	)	96
Separate account assets	2,912			—			—						2,912
Total recurring basis assets	5,097			22,281			338			(16		)	27,700
Total assets at fair value	$	5,097		$	22,281		$	338		$	(16	)	$	27,700
% of total assets at fair value	18.4		%	80.5		%	1.2		%	(0.1		)%	100.0		%

Investments reported at NAV													762
Total													$	28,462

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(424	)				$	(424	)
Other liabilities: Free-standing derivatives	—			(36		)	—			$	2		(34		)
Total recurring basis liabilities at fair value	$	—		$	(36	)	$	(424	)	$	2		$	(458	)
% of total liabilities at fair value	—		%	7.9		%	92.6		%	(0.5		)%	100.0		%

The following table summarizes the Company’s assets and liabilities measured at fair value as of December 31, 2018.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2018
Assets
Fixed income securities:
U.S. government and agencies	$	493		$	280		$	—					$	773
Municipal	—			2,156			39						2,195
Corporate - public	—			11,891			33						11,924
Corporate - privately placed	—			5,552			97						5,649
Foreign government	—			179			—						179
ABS - CDO	—			26			6						32
ABS - consumer and other	—			381			16						397
RMBS	—			197			—						197
CMBS	—			40			—						40
Redeemable preferred stock	—			14			—						14
Total fixed income securities	493			20,716			191						21,400
Equity securities	1,182			14			129						1,325
Short-term investments	443			367			—						810
Other investments: Free-standing derivatives	—			30			1			$	(8	)	23
Separate account assets	2,783			—			—						2,783
Total recurring basis assets at fair value	$	4,901		$	21,127		$	321		$	(8	)	$	26,341
% of total assets at fair value	18.6		%	80.2		%	1.2		%	—		%	100.0		%

Investments reported at NAV													787
Total													$	27,128

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(223	)				$	(223	)
Other liabilities: Free-standing derivatives	—			(7		)	—			$	2		(5		)
Total recurring basis liabilities at fair value	$	—		$	(7	)	$	(223	)	$	2		$	(228	)
% of total liabilities at fair value	—		%	3.1		%	97.8		%	(0.9		)%	100.0		%

The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
September 30, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(387	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.55	%
December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(184	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74	%

The embedded derivatives are equity-indexed and forward starting options in certain life and annuity products that provide customers with interest crediting rates based on the performance of the S&P 500. If the projected option cost increased (decreased), it would result in a higher (lower) liability fair value.

As of September 30, 2019 and December 31, 2018, Level 3 fair value measurements of fixed income securities total $214 million and $191 million, respectively, and include $75 million and $80 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. The Company does not develop the unobservable inputs used in measuring fair value; therefore, these are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended September 30, 2019.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2019			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	40		$	—		$	2		$	—		$	—
Corporate - public	32			—			—			—			(7		)
Corporate - privately placed	96			—			—			—			—
ABS - CDO	6			1			(1		)	—			—
ABS - consumer and other	28			—			—			—			(15		)
CMBS	2			—			—			—			—
Total fixed income securities	204			1			1			—			(22		)
Equity securities	119			3			—			—			—
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	323		$	4		$	1		$	—		$	(22	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(411	)	$	(12	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(411	)	$	(12	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	—		$	—		$	—		$	42
Corporate - public	29			—			—			—			54
Corporate - privately placed	1			—			—			(1		)	96
ABS - CDO	1			—			—			—			7
ABS - consumer and other	1			—			—			(1		)	13
CMBS	—			—			—			—			2
Total fixed income securities	32			—			—			(2		)	214
Equity securities	2			—			—			—			124
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	34		$	—		$	—		$	(2	)	$	338

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(6	)	$	5		$	(424	)
Total recurring Level 3 liabilities	$	—		$	—		$	(6	)	$	5		$	(424	)



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Contract benefits			Interest credited to contractholder funds			Total
Components of net income	$	1	$	3	$	(1	)	$	(11	)	$	(8	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the nine months ended September 30, 2019.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	39		$	—		$	4		$	—		$	—
Corporate - public	33			—			—			—			(9		)
Corporate - privately placed	97			(2		)	2			15			(1		)
ABS - CDO	6			1			(1		)	—			—
ABS - consumer and other	16			—			—			—			(27		)
CMBS	—			—			—			2			—
Total fixed income securities	191			(1		)	5			17			(37		)
Equity securities	129			23			—			—			—
Free-standing derivatives, net	1			(1		)	—			—			—
Total recurring Level 3 assets	$	321		$	21		$	5		$	17		$	(37	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(223	)	$	(48	)	$	—		$	(154	)	$	—
Total recurring Level 3 liabilities	$	(223	)	$	(48	)	$	—		$	(154	)	$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	(1	)	$	—		$	—		$	42
Corporate - public	32			(1		)	—			(1		)	54
Corporate - privately placed	2			(13		)	—			(4		)	96
ABS - CDO	1			—			—			—			7
ABS - consumer and other	35			(6		)	—			(5		)	13
CMBS	—			—			—			—			2
Total fixed income securities	70			(21		)	—			(10		)	214
Equity securities	10			(38		)	—			—			124
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	80		$	(59	)	$	—		$	(10	)	$	338

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(6	)	$	7		$	(424	)
Total recurring Level 3 liabilities	$	—		$	—		$	(6	)	$	7		$	(424	)



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	3	$	18	$	2	$	(50	)	$	(27	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended September 30, 2018.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2018			Net income⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	58		$	—		$	(1	)	$	—		$	(1	)
Corporate - public	47			—			(1		)	—			(3		)
Corporate - privately placed	187			—			(1		)	—			(9		)
ABS - CDO	9			—			—			—			—
ABS - consumer and other	47			—			—			6			(13		)
Total fixed income securities	348			—			(3		)	6			(26		)
Equity securities	113			3			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	462		$	3		$	(3	)	$	6		$	(26	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(257	)	$	(6	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(257	)	$	(6	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	—		$	—		$	—		$	—		$	56
Corporate - public	—			(1		)	—			—			42
Corporate - privately placed	—			—			—			(11		)	166
ABS - CDO	—			—			—			(1		)	8
ABS - consumer and other	7			(6		)	—			(16		)	25
Total fixed income securities	7			(7		)	—			(28		)	297
Equity securities	5			—			—			—			121
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	12		$	(7	)	$	—		$	(28	)	$	419

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	1		$	(262	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	1		$	(262	)

__________


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	—	$	3	$	2	$	(8	)	$	(3	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the nine months ended September 30, 2018.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2017			Net income⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	57		$	—		$	(2	)	$	—		$	(1	)
Corporate - public	49			—			(2		)	3			(3		)
Corporate - privately placed	220			(2		)	(2		)	10			(32		)
ABS - CDO	10			—			—			—			—
ABS - consumer and other	40			—			—			12			(15		)
Total fixed income securities	376			(2		)	(6		)	25			(51		)
Equity securities	90			10			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	467		$	8		$	(6	)	$	25		$	(51	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(284	)	$	19		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(284	)	$	19		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	2		$	—		$	—		$	—		$	56
Corporate - public	—			(2		)	—			(3		)	42
Corporate - privately placed	11			—			—			(39		)	166
ABS - CDO	—			—			—			(2		)	8
ABS - consumer and other	20			(14		)	—			(18		)	25
Total fixed income securities	33			(16		)	—			(62		)	297
Equity securities	28			(7		)	—			—			121
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	61		$	(23	)	$	—		$	(62	)	$	419

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(262	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(262	)

__________


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Contract benefits		Interest credited to contractholder funds		Total
Components of net income	$	—	$	8	$	7	$	12	$	27

Transfers between level categorizations may occur due to changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads. Transfers between level categorizations may also occur due to changes in the valuation source, including situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider resulting in the price becoming stale or replaced with a broker quote whose inputs have not been corroborated to be market observable. This situation will result in the transfer of a security into Level 3. Transfers in and out of level categorizations are reported as having occurred at the beginning of the quarter

in which the transfer occurred. Therefore, for all transfers into Level 3, all realized and changes in unrealized gains and losses in the quarter of transfer are reflected in the Level 3 rollforward table.

There were no transfers between Level 1 and Level 2 during the three months and nine months ended September 30, 2019 or 2018.

Transfers into Level 3 during the three months and nine months ended September 30, 2019 and 2018 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers into Level 3 during 2019 also included derivatives embedded in equity-indexed universal life contracts due to refinements in the valuation modeling resulting in an increase in significance of non-market observable inputs.

Transfers out of Level 3 during the three months and nine months ended September 30, 2019 and 2018 included situations where a broker quote was used in the prior period and a quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.

The following table provides valuation changes included in net income for Level 3 assets and liabilities held as of September 30.



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Assets
Equity securities	$	3		$	3		$	10		$	10
Free-standing derivatives, net	—			—			(1		)	—
Total recurring Level 3 assets	$	3		$	3		$	9		$	10

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(12	)	$	(6	)	$	(48	)	$	19
Total recurring Level 3 liabilities	(12		)	(6		)	(48		)	19
Total included in net income	$	(9	)	$	(3	)	$	(39	)	$	29

Components of net income
Net investment income	$	1		$	—		$	3		$	—
Realized capital gains and losses	2			3			6			10
Contract benefits	(1		)	2			2			7
Interest credited to contractholder funds	(11		)	(8		)	(50		)	12
Total included in net income	$	(9	)	$	(3	)	$	(39	)	$	29

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets



($ in millions)		September 30, 2019				December 31, 2018
	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	Level 3	$	4,012	$	4,176	$	3,995	$	4,028
Bank loans	Level 3	363		356		422		408
Agent loans	Level 3	663		666		620		617

Financial liabilities



($ in millions)		September 30, 2019				December 31, 2018
	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	Level 3	$	8,584	$	9,400	$	9,213	$	9,629
Liability for collateral	Level 2	691		691		525		525
Notes due to related parties	Level 3	140		144		140		138

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations. Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap, index total return swap, or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity securities using futures, index total return swaps, and options to increase equity exposure.

The Company utilizes several derivative strategies to manage risk. Asset-liability management is a risk management strategy that is principally employed to balance the respective interest-rate sensitivities of the Company’s assets and liabilities. Depending upon the attributes of the assets acquired and liabilities issued, derivative instruments such as interest rate swaps, caps, swaptions and futures are utilized to change the interest rate characteristics of existing assets and liabilities to ensure the relationship is maintained within specified ranges and to reduce exposure to rising or falling interest rates. Fixed income index total return swaps are used to offset valuation losses in the portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Company’s fixed income portfolio. Futures and options are used for hedging the equity exposure contained in the Company’s equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, the Company uses equity index total return swaps, options and futures to offset valuation losses in the equity portfolio during periods of declining equity market values. Foreign currency swaps and forwards are primarily used to reduce the foreign currency risk associated with holding foreign currency denominated investments.

The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of embedded derivatives reported in net income. The Company’s primary embedded derivatives are equity options in life and annuity product contracts, which provide returns linked to equity indices to contractholders.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. The Company designates certain investment risk transfer reinsurance agreements as fair value hedges when the hedging instrument is highly effective in offsetting the risk of changes in the fair value of the hedged item. The fair value of hedged liability is reported in contractholder funds in the Condensed Consolidated Statements of Financial Position. The impact from results of the fair value hedge is reported in interest credited to contractholder funds in the Condensed Consolidated Statements of Operations and Comprehensive Income.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position.

For those derivatives which qualify and have been designated as fair value accounting hedges, net income includes the changes in the fair value of both the derivative instrument and the hedged risk, and therefore reflects any hedging ineffectiveness. For cash flow hedges, gains and losses are amortized from AOCI and are reported in net income in the same period the forecasted transactions being hedged impact net income.

Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis.

Fair value hedges The Company had one derivative used in fair value hedging relationships and had no foreign currency contracts designated as fair value hedges for the three and nine months ended September 30, 2019 and 2018.

Cash flow hedges The Company had no derivatives used in cash flow hedging relationships for the three months ended September 30, 2019 and September 30, 2018. The Company had no derivatives designated as cash flow hedges during the nine months ended September 30, 2019 and one foreign currency contract designated as a cash flow hedge during the nine months ended September 30, 2018.

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Condensed Consolidated Statement of Financial Position as of September 30, 2019.



($ in millions, except number of contracts)		Volume⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	22		n/a	—			—		—
Equity and index contracts
Options	Other investments	—		3,149	96			96		—
Futures	Other assets	—		25	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	12		n/a	—			—		—
Foreign currency contracts
Foreign currency forwards	Other investments	223		n/a	15			16		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	29		n/a	(1		)	—		(1		)
Credit default swaps – selling protection	Other investments	5		n/a	—			—		—
Subtotal		298		3,174	110			112		(2		)
Total asset derivatives		$	300	3,174	$	110		$	112	$	(2	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	13	n/a	$	—		$	—	$	—
Futures	Other liabilities & accrued expenses	—		723	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		3,025	(34		)	—		(34		)
Futures	Other liabilities & accrued expenses	—		8	—			—		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	6		n/a	—			—		—
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	161		n/a	(21		)	—		(21		)
Guaranteed withdrawal benefits	Contractholder funds	205		n/a	(16		)	—		(16		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,680		n/a	(387		)	—		(387		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	—		n/a	—			—		—
Total liability derivatives		2,070		3,756	(458		)	$	—	$	(458	)
Total derivatives		$	2,370	6,930	$	(348	)

___________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Consolidated Statement of Financial Position as of December 31, 2018.



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	6	n/a	$	—		$	—	$	—
Futures	Other assets	—		330	—			—		—
Equity and index contracts
Options	Other investments	—		3,440	21			21		—
Futures	Other assets	—		26	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	10		n/a	(1		)	—		(1		)
Foreign currency contracts
Foreign currency forwards	Other investments	240		n/a	8			8		—
Credit default contracts
Credit default swaps – buying protection	Other investments	27		n/a	—			1		(1		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	292	3,796	$	28		$	30	$	(2	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	31	n/a	$	1		$	1	$	—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		3,266	(5		)	—		(5		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	169		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	210		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,696		n/a	(184		)	—		(184		)
Credit default contracts
Credit default swaps – selling protection	Other liabilities & accrued expenses	1		n/a	—			—		—
Total liability derivatives		2,107		3,266	(227		)	$	1	$	(228	)
Total derivatives		$	2,399	7,062	$	(199	)

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet		Securities collateral (received) pledged		Net amount
September 30, 2019
Asset derivatives	$	16		$	(2	)	$	(14	)	$	—	$	—	$	—
Liability derivatives	(2		)	2			—			—		—		—

December 31, 2018
Asset derivatives	$	10		$	(3	)	$	(5	)	$	2	$	—	$	2
Liability derivatives	(2		)	3			(1		)	—		—		—

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships. There was no hedge ineffectiveness reported in realized gains and losses for the three months and nine months ended September 30, 2019 and 2018.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Gain recognized in OCI on derivatives during the period	$	—	$	—	$	—	$	1
Gain reclassified from AOCI into income (realized capital gains and losses)	—		—		—		3

The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Condensed Consolidated Statements of Operations and Comprehensive Income.



($ in millions)	Realized capital gains and losses			Contract benefits			Interest credited to contractholder funds			Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2019
Equity and index contracts	$	—		$	—		$	3		$	3
Embedded derivative financial instruments	—			(1		)	(12		)	(13		)
Foreign currency contracts	8			—			—			8
Total return swaps - fixed income	—			—			—			—
Total return swaps - equity index	—			—			—			—
Total	$	8		$	(1	)	$	(9	)	$	(2	)

Nine months ended September 30, 2019
Equity and index contracts	$	2		$	—		$	43		$	45
Embedded derivative financial instruments	—			2			(49		)	(47		)
Foreign currency contracts	11			—			—			11
Total return swaps - fixed income	1			—			—			1
Total return swaps - equity index	2			—			—			2
Total	$	16		$	2		$	(6	)	$	12

Three months ended September 30, 2018
Interest rate contracts	$	1		$	—		$	—		$	1
Equity and index contracts	(2		)	—			18			16
Embedded derivative financial instruments	—			2			(7		)	(5		)
Foreign currency contracts	4			—			—			4
Total return swaps	1			—			—			1
Total	$	4		$	2		$	11		$	17

Nine months ended September 30, 2018
Interest rate contracts	$	1		$	—		$	—		$	1
Equity and index contracts	(2		)	—			24			22
Embedded derivative financial instruments	—			7			15			22
Foreign currency contracts	8			—			—			8
Total return swaps	1			—			—			1
Total	$	8		$	7		$	39		$	54

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of September 30, 2019, counterparties pledged $14 million in collateral to the Company, and the Company pledged zero in collateral to counterparties. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.

The following table summarizes the counterparty credit exposure by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	September 30, 2019							December 31, 2018
Rating⁽¹⁾	Number of counter-parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral⁽²⁾		Number of counter- parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral⁽²⁾
A+	5	$	276	$	13	$	1	3	$	283	$	9	$	1
A	1	41		1		—		1	23		—		—
Total	6	$	317	$	14	$	1	4	$	306	$	9	$	1

__________


⁽¹⁾	Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.


⁽²⁾	Only OTC derivatives with a net positive fair value are included for each counterparty.

For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. As of September 30, 2019, the Company pledged $6 million in the form of margin deposits.

Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s, ALIC’s or Allstate Life Insurance Company of New York’s (“ALNY”) financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. Credit-risk-contingent credit support annex agreements specify the amount of collateral the Company must post to counterparties based on AIC’s, ALIC’s or ALNY’s financial strength credit ratings by Moody’s or S&P, or in the event AIC, ALIC or ALNY are no longer rated by either Moody’s or S&P.

The following summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.



($ in millions)	As of September 30, 2019			As of December 31, 2018
Gross liability fair value of contracts containing credit-risk-contingent features	$	2		$	2
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(2		)	(2		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	—			—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—		$	—

Credit derivatives - selling protection

A credit default swap (“CDS”) is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term.

The following table shows the CDS notional amounts by credit rating and fair value of protection sold.



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
September 30, 2019
Single name
Corporate debt	$	—	$	—	$	—	$	5	$	5	$	—
Total	$	—	$	—	$	—	$	5	$	5	$	—

December 31, 2018
Single name
Corporate debt	$	—	$	—	$	—	$	1	$	1	$	—
Total	$	—	$	—	$	—	$	1	$	1	$	—

In selling protection with CDS, the Company sells credit protection on an identified single name, a basket of names in a first-to-default (“FTD”) structure or credit derivative index (“CDX”) that is generally investment grade, and in return receives periodic premiums through expiration or termination of the agreement. With single name CDS, this premium or credit spread generally corresponds to the difference between the yield on the reference entity’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. With a FTD basket, because of the additional credit risk inherent in a basket of named reference entities, the premium generally corresponds to a high proportion of the sum of the credit spreads of the names in the basket and the correlation between the names. CDX is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. If a credit event occurs, the Company settles with the counterparty, either through physical settlement or cash settlement. In a physical settlement, a reference asset is delivered by the buyer of protection to the Company, in exchange for cash payment at par, whereas in a cash settlement, the Company pays the difference between par and the prescribed value of the reference asset. When a credit event occurs in a single name or FTD basket (for FTD, the first credit event occurring for any one name in the basket), the contract terminates at the time of settlement. For CDX, the reference entity’s name incurring the credit event is removed from the index while the contract continues until expiration. The maximum payout on a CDS is the contract notional amount. A physical settlement may afford the Company with recovery rights as the new owner of the asset.

The Company monitors risk associated with credit derivatives through individual name credit limits at both a credit derivative and a combined cash instrument/credit derivative level. The ratings of individual names for which protection has been sold are also monitored.

Reinsurance

9 Months Ended

Sep. 30, 2019

Reinsurance Disclosures [Abstract]

Reinsurance

The effects of reinsurance on premiums and contract charges are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Direct	$	180		$	184		$	548		$	553
Assumed
Affiliate	58			60			174			181
Non-affiliate	172			184			524			558
Ceded
Affiliate	(12		)	(13		)	(37		)	(38		)
Non-affiliate	(65		)	(71		)	(189		)	(209		)
Premiums and contract charges, net of reinsurance	$	333		$	344		$	1,020		$	1,045

The effects of reinsurance on contract benefits are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Direct	$	278		$	253		$	739		$	776
Assumed
Affiliate	37			44			99			112
Non-affiliate	127			101			377			358
Ceded
Affiliate	(8		)	(7		)	(27		)	(27		)
Non-affiliate	(68		)	(29		)	(84		)	(130		)
Contract benefits, net of reinsurance	$	366		$	362		$	1,104		$	1,089

The effects of reinsurance on interest credited to contractholder funds are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Direct	$	123		$	119		$	353		$	378
Assumed
Affiliate	2			2			6			6
Non-affiliate	41			38			116			96
Ceded
Affiliate	(5		)	(5		)	(15		)	(15		)
Non-affiliate	(7		)	(4		)	(15		)	(15		)
Interest credited to contractholder funds, net of reinsurance	$	154		$	150		$	445		$	450

Reinsurance Recoverables As of September 30, 2019, the Company had $2.48 billion of reinsurance recoverables. Of the $2.48 billion, the Company had $64 million of reinsurance recoverables, net of an allowance for estimated uncollectible amounts, related to Scottish Re (U.S.), Inc. On December 14, 2018, the Delaware Insurance Commissioner placed Scottish Re (U.S.), Inc. under regulatory supervision. On March 6, 2019, the Chancery Court of the State of Delaware entered a Rehabilitation and Injunction Order (the “Rehabilitation Order”) in response to a petition filed by the Insurance Commissioner (the “Petition”). Pursuant to the Petition, it is expected that Scottish Re (U.S.), Inc. will submit a Plan of Rehabilitation. The Company joined in a joint motion filed on behalf of several affected parties asking the court to allow a specified amount of offsetting claim payments and losses against premiums remitted to Scottish Re (U.S.), Inc. The Company also filed a separate motion related to the reimbursement of claim payments where Scottish Re (U.S.), Inc. is also acting as administrator. The Court has not yet ruled on either of these motions. In the interim, the Company and several other affected parties have been permitted to exercise certain setoff rights while the parties address any potential disputes.

The Company continues to monitor Scottish Re (U.S.), Inc. for future developments and will reevaluate its allowance for uncollectible amounts as new information becomes available.

Guarantees and Contingent Liabilities	9 Months Ended
Guarantees and Contingent Liabilities	Sep. 30, 2019
Guarantees [Abstract]
Guarantees and Contingent Liabilities	Guarantees and Contingent Liabilities Guarantees Related to the sale of Lincoln Benefit Life Company on April 1, 2014, the Company agreed to indemnify Resolution Life Holdings, Inc. in connection with certain representations, warranties and covenants of the Company, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding the Company’s maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. Related to the disposal through reinsurance of substantially all of the Company’s variable annuity business to Prudential in 2006, the Company and the Corporation have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of the Company and liabilities specifically excluded from the transaction) that the Company has agreed to retain. In addition, the Company and the Corporation will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of the Company and its agents, including certain liabilities arising from the Company’s provision of transition services. The reinsurance agreements contain no limitations or indemnifications with regard to insurance risk transfer and transferred all of the future risks and responsibilities for performance on the underlying variable annuity contracts to Prudential, including those related to benefit guarantees. Management does not believe this agreement will have a material effect on results of operations, cash flows or financial position of the Company. In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. The aggregate liability balance related to all guarantees was not material as of September 30, 2019. Regulation and compliance The Company is subject to extensive laws, regulations and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to impose additional regulations regarding agent and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

Other Comprehensive Income

9 Months Ended

Sep. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income

The components of other comprehensive income (loss) on a pre-tax and after-tax basis are as follows:



($ in millions)	Three months ended September 30,
	2019									2018
	Pre- tax			Tax			After- tax			Pre- tax			Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	216		$	(46	)	$	170		$	(64	)	$	14	$	(50	)
Less: reclassification adjustment of realized capital gains and losses	17			(4		)	13			(8		)	2		(6		)
Unrealized net capital gains and losses	199			(42		)	157			(56		)	12		(44		)
Unrealized foreign currency translation adjustments	1			—			1			(11		)	2		(9		)
Other comprehensive income (loss)	$	200		$	(42	)	$	158		$	(67	)	$	14	$	(53	)

	Nine months ended September 30,
	2019									2018
	Pre- tax			Tax			After- tax			Pre- tax			Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	863		$	(181	)	$	682		$	(379	)	$	80	$	(299	)
Less: reclassification adjustment of realized capital gains and losses	11			(2		)	9			(24		)	5		(19		)
Unrealized net capital gains and losses	852			(179		)	673			(355		)	75		(280		)
Unrealized foreign currency translation adjustments	(5		)	1			(4		)	—			—		—
Other comprehensive income (loss)	$	847		$	(178	)	$	669		$	(355	)	$	75	$	(280	)

General (Tables)

9 Months Ended

Sep. 30, 2019

General [Abstract]

Summary of premiums and contract charges by product

The following table summarizes premiums and contract charges by product.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Premiums
Traditional life insurance	$	135	$	143	$	416	$	435
Accident and health insurance	30		31		90		91
Total premiums	165		174		506		526

Contract charges
Interest-sensitive life insurance	165		165		505		508
Fixed annuities	3		5		9		11
Total contract charges	168		170		514		519
Total premiums and contract charges	$	333	$	344	$	1,020	$	1,045

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2019

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information from collateralized securities received

The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:



($ in millions)	Nine months ended September 30,
	2019			2018
Net change in proceeds managed
Net change in fixed income securities	$	28		$	78
Net change in short-term investments	(194		)	(72		)
Operating cash flow (used) provided	$	(166	)	$	6

Net change in liabilities
Liabilities for collateral, beginning of period	$	(525	)	$	(542	)
Liabilities for collateral, end of period	(691		)	(536		)
Operating cash flow provided (used)	$	166		$	(6	)

Investments (Tables)

9 Months Ended

Sep. 30, 2019

Investments [Abstract]

Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:



($ in millions)	Amortized		Gross unrealized					Fair
	cost		Gains		Losses			value
September 30, 2019
U.S. government and agencies	$	555	$	40	$	—		$	595
Municipal	1,592		324		(3		)	1,913
Corporate	17,644		1,193		(38		)	18,799
Foreign government	155		8		—			163
Asset-backed securities (“ABS”)	315		4		(2		)	317
Residential mortgage-backed securities (“RMBS”)	123		49		—			172
Commercial mortgage-backed securities (“CMBS”)	22		6		(1		)	27
Redeemable preferred stock	13		1		—			14
Total fixed income securities	$	20,419	$	1,625	$	(44	)	$	22,000

December 31, 2018
U.S. government and agencies	$	740	$	33	$	—		$	773
Municipal	1,997		202		(4		)	2,195
Corporate	17,521		433		(381		)	17,573
Foreign government	170		9		—			179
ABS	429		3		(3		)	429
RMBS	154		44		(1		)	197
CMBS	33		7		—			40
Redeemable preferred stock	13		1		—			14
Total fixed income securities	$	21,057	$	732	$	(389	)	$	21,400

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows:



($ in millions)	As of September 30, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	1,410	$	1,426
Due after one year through five years	7,675		7,982
Due after five years through ten years	7,354		7,845
Due after ten years	3,520		4,231
	19,959		21,484
ABS, RMBS and CMBS	460		516
Total	$	20,419	$	22,000

Schedule of net investment income

Net investment income is as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Fixed income securities	$	235		$	247		$	721		$	745
Mortgage loans	48			44			140			141
Equity securities	6			7			26			30
Limited partnership interests	69			74			174			262
Short-term investments	8			7			24			16
Policy loans	9			8			25			23
Other	24			23			70			68
Investment income, before expense	399			410			1,180			1,285
Investment expense	(26		)	(25		)	(79		)	(74		)
Net investment income	$	373		$	385		$	1,101		$	1,211

Schedule of realized capital gains and losses by asset type

Realized capital gains (losses) by asset type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Fixed income securities	$	19		$	(8	)	$	17		$	(26	)
Mortgage loans	—			—			—			2
Equity securities	7			56			192			50
Limited partnership interests	(2		)	(4		)	8			(12		)
Derivatives	8			4			16			11
Other	(7		)	—			(14		)	(1		)
Realized capital gains (losses)	$	25		$	48		$	219		$	24

Schedule of realized capital gains and losses by transaction type

Realized capital gains (losses) by transaction type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Impairment write-downs	$	(8	)	$	(4	)	$	(20	)	$	(7	)
Sales	20			(2		)	20			(14		)
Valuation of equity investments ⁽¹⁾	5			50			203			37
Valuation and settlements of derivative instruments	8			4			16			8
Realized capital gains (losses)	$	25		$	48		$	219		$	24

_______________

⁽¹⁾

Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.

Realized gain (loss) on investments



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Equity securities	$	16	$	51	$	155	$	71
Limited partnership interests carried at fair value	21		35		41		84
Total	$	37	$	86	$	196	$	155

Schedule of other-than-temporary impairment losses by asset type

OTTI losses by asset type are as follows:



	Three months ended									Three months ended
($ in millions)	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	—			—			—			—			—			—
ABS	—			—			—			—			(1		)	(1		)
RMBS	—			—			—			—			—			—
CMBS	(1		)	—			(1		)	(3		)	—			(3		)
Total fixed income securities	(3		)	2			(1		)	(3		)	(1		)	(4		)
Limited partnership interests	—			—			—			—			—			—
Other	(7		)	—			(7		)	—			—			—
OTTI losses	$	(10	)	$	2		$	(8	)	$	(3	)	$	(1	)	$	(4	)

	Nine months ended									Nine months ended
	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	(1		)	(1		)	(2		)	—			—			—
ABS	(1		)	—			(1		)	—			(1		)	(1		)
RMBS	—			—			—			(1		)	—			(1		)
CMBS	(3		)	2			(1		)	(3		)	(1		)	(4		)
Total fixed income securities	(7		)	3			(4		)	(4		)	(2		)	(6		)
Limited partnership interests	(2		)	—			(2		)	—			—			—
Other	(14		)	—			(14		)	(1		)	—			(1		)
OTTI losses	$	(23	)	$	3		$	(20	)	$	(5	)	$	(2	)	$	(7	)

Schedule of other-than-temporary impairment losses on fixed income securities included in accumulated other comprehensive income



($ in millions)	September 30, 2019			December 31, 2018
Municipal	$	(6	)	$	(4	)
Corporate	—			(1		)
ABS	(4		)	(5		)
RMBS	(28		)	(32		)
CMBS	(4		)	(2		)
Total	$	(42	)	$	(44	)

Schedule of rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held

Rollforwards of cumulative credit losses recognized in earnings for fixed income securities held as of the end of the period are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Beginning balance	$	(122	)	$	(124	)	$	(123	)	$	(138	)
Additional credit loss for securities previously other-than-temporarily impaired	(1		)	(3		)	(3		)	(5		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			(1		)	(1		)	(1		)
Reduction in credit loss for securities disposed or collected	12			2			16			18
Change in credit loss due to accretion of increase in cash flows	—			1			—			1
Ending balance	$	(111	)	$	(125	)	$	(111	)	$	(125	)

Schedule of unrealized net capital gains and losses included in accumulated other comprehensive income

Unrealized net capital gains and losses included in AOCI are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
September 30, 2019	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	22,000	$	1,625	$	(44	)	$	1,581
Short-term investments	1,475		—		—			—
Equity method of accounting (“EMA”) limited partnerships⁽¹⁾								(1		)
Unrealized net capital gains and losses, pre-tax								1,580
Amounts recognized for:
Insurance reserves ⁽²⁾								(202		)
DAC and DSI ⁽³⁾								(218		)
Amounts recognized								(420		)
Deferred income taxes								(244		)
Unrealized net capital gains and losses, after-tax								$	916

_______________


⁽¹⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.


⁽²⁾	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).


⁽³⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2018	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	21,400	$	732	$	(389	)	$	343
Short-term investments	810		—		—			—
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								343
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(35		)
Amounts recognized								(35		)
Deferred income taxes								(65		)
Unrealized net capital gains and losses, after-tax								$	243

Schedule of change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the nine months ended September 30, 2019 is as follows:



($ in millions)
Fixed income securities	$	1,238
EMA limited partnerships	(1		)
Total	1,237
Amounts recognized for:
Insurance reserves	(202		)
DAC and DSI	(183		)
Amounts recognized	(385		)
Deferred income taxes	(179		)
Increase in unrealized net capital gains and losses, after-tax	$	673

Summary of gross unrealized losses and fair value of fixed income and equity securities by length of time

The following table summarizes the gross unrealized losses and fair value of securities by the length of time that individual securities have been in a continuous unrealized loss position.



($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
September 30, 2019
Fixed income securities
U.S. government and agencies	2	$	16	$	—		—	$	—	$	—		$	—
Municipal	2	2		—			1	14		(3		)	(3		)
Corporate	123	413		(9		)	59	343		(29		)	(38		)
ABS	18	38		(1		)	4	13		(1		)	(2		)
RMBS	6	2		—			25	4		—			—
CMBS	1	5		—			1	2		(1		)	(1		)
Redeemable preferred stock	—	—		—			—	—		—			—
Total fixed income securities	152	$	476	$	(10	)	90	$	376	$	(34	)	$	(44	)
Investment grade fixed income securities	82	$	325	$	(3	)	52	$	212	$	(18	)	$	(21	)
Below investment grade fixed income securities	70	151		(7		)	38	164		(16		)	(23		)
Total fixed income securities	152	$	476	$	(10	)	90	$	376	$	(34	)	$	(44	)

December 31, 2018
Fixed income securities
U.S. government and agencies	2	$	6	$	—		1	$	1	$	—		$	—
Municipal	38	98		(1		)	5	26		(3		)	(4		)
Corporate	1,260	6,799		(218		)	370	2,633		(163		)	(381		)
ABS	30	167		(1		)	11	31		(2		)	(3		)
RMBS	124	11		—			47	10		(1		)	(1		)
CMBS	3	7		—			2	—		—			—
Redeemable preferred stock	1	—		—			—	—		—			—
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)
Investment grade fixed income securities	948	$	5,255	$	(121	)	388	$	2,551	$	(147	)	$	(268	)
Below investment grade fixed income securities	510	1,833		(99		)	48	150		(22		)	(121		)
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)

Gross unrealized losses by unrealized loss position and credit quality

The following table summarizes gross unrealized losses by unrealized loss position and credit quality as of September 30, 2019.



($ in millions)	Investment grade			Below investment grade			Total
Fixed income securities with unrealized loss position less than 20% of amortized cost^{(1) (2)}	$	(8	)	$	(20	)	$	(28	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(3		)	(16		)
Total unrealized losses	$	(21	)	$	(23	)	$	(44	)

_______________


⁽¹⁾	Below investment grade fixed income securities include $7 million that have been in an unrealized loss position for less than twelve months.


⁽²⁾	Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.


⁽³⁾	Below investment grade fixed income securities include zero that have been in an unrealized loss position for a period of twelve or more consecutive months.

⁽⁴⁾

Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

Summary of carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution

The following table reflects the carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution.



($ in millions)	September 30, 2019						December 31, 2018
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	11	$	16	$	27	$	6	$	15	$	21
1.0 - 1.25	221		—		221		221		—		221
1.26 - 1.50	1,203		9		1,212		1,048		—		1,048
Above 1.50	2,502		44		2,546		2,659		42		2,701
Total non-impaired mortgage loans	$	3,937	$	69	$	4,006	$	3,934	$	57	$	3,991

Schedule of rollforward of the valuation allowance on impaired mortgage loans

The net carrying value of impaired mortgage loans is as follows:



($ in millions)	September 30, 2019		December 31, 2018
Impaired mortgage loans with a valuation allowance	$	6	$	4
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	4
Valuation allowance on impaired mortgage loans	$	3	$	3

Schedule of other investments, by type

The following table summarizes other investments by asset type.



($ in millions)	September 30, 2019		December 31, 2018
Agent loans	$	663	$	620
Bank loans	363		422
Real estate	243		228
Derivatives and other	97		30
Total	$	1,366	$	1,300

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Summary of assets and liabilities measured at fair value on a recurring and non-recurring basis

The following table summarizes the Company’s assets and liabilities measured at fair value as of September 30, 2019.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of September 30, 2019
Assets
Fixed income securities:
U.S. government and agencies	$	302		$	293		$	—					$	595
Municipal	—			1,871			42						1,913
Corporate - public	—			12,954			54						13,008
Corporate - privately placed	—			5,695			96						5,791
Foreign government	—			163			—						163
ABS - CDO	—			19			7						26
ABS - consumer and other	—			278			13						291
RMBS	—			172			—						172
CMBS	—			25			2						27
Redeemable preferred stock	—			14			—						14
Total fixed income securities	302			21,484			214						22,000
Equity securities	1,081			12			124						1,217
Short-term investments	802			673			—						1,475
Other investments: Free-standing derivatives	—			112			—			$	(16	)	96
Separate account assets	2,912			—			—						2,912
Total recurring basis assets	5,097			22,281			338			(16		)	27,700
Total assets at fair value	$	5,097		$	22,281		$	338		$	(16	)	$	27,700
% of total assets at fair value	18.4		%	80.5		%	1.2		%	(0.1		)%	100.0		%

Investments reported at NAV													762
Total													$	28,462

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(424	)				$	(424	)
Other liabilities: Free-standing derivatives	—			(36		)	—			$	2		(34		)
Total recurring basis liabilities at fair value	$	—		$	(36	)	$	(424	)	$	2		$	(458	)
% of total liabilities at fair value	—		%	7.9		%	92.6		%	(0.5		)%	100.0		%

The following table summarizes the Company’s assets and liabilities measured at fair value as of December 31, 2018.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2018
Assets
Fixed income securities:
U.S. government and agencies	$	493		$	280		$	—					$	773
Municipal	—			2,156			39						2,195
Corporate - public	—			11,891			33						11,924
Corporate - privately placed	—			5,552			97						5,649
Foreign government	—			179			—						179
ABS - CDO	—			26			6						32
ABS - consumer and other	—			381			16						397
RMBS	—			197			—						197
CMBS	—			40			—						40
Redeemable preferred stock	—			14			—						14
Total fixed income securities	493			20,716			191						21,400
Equity securities	1,182			14			129						1,325
Short-term investments	443			367			—						810
Other investments: Free-standing derivatives	—			30			1			$	(8	)	23
Separate account assets	2,783			—			—						2,783
Total recurring basis assets at fair value	$	4,901		$	21,127		$	321		$	(8	)	$	26,341
% of total assets at fair value	18.6		%	80.2		%	1.2		%	—		%	100.0		%

Investments reported at NAV													787
Total													$	27,128

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(223	)				$	(223	)
Other liabilities: Free-standing derivatives	—			(7		)	—			$	2		(5		)
Total recurring basis liabilities at fair value	$	—		$	(7	)	$	(223	)	$	2		$	(228	)
% of total liabilities at fair value	—		%	3.1		%	97.8		%	(0.9		)%	100.0		%

Summary of quantitative information about the significant unobservable inputs used in Level 3 fair value measurements

The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
September 30, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(387	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.55	%
December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(184	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74	%

Schedule of rollforward of Level 3 assets and liabilities held at fair value on a recurring basis

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended September 30, 2019.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2019			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	40		$	—		$	2		$	—		$	—
Corporate - public	32			—			—			—			(7		)
Corporate - privately placed	96			—			—			—			—
ABS - CDO	6			1			(1		)	—			—
ABS - consumer and other	28			—			—			—			(15		)
CMBS	2			—			—			—			—
Total fixed income securities	204			1			1			—			(22		)
Equity securities	119			3			—			—			—
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	323		$	4		$	1		$	—		$	(22	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(411	)	$	(12	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(411	)	$	(12	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	—		$	—		$	—		$	42
Corporate - public	29			—			—			—			54
Corporate - privately placed	1			—			—			(1		)	96
ABS - CDO	1			—			—			—			7
ABS - consumer and other	1			—			—			(1		)	13
CMBS	—			—			—			—			2
Total fixed income securities	32			—			—			(2		)	214
Equity securities	2			—			—			—			124
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	34		$	—		$	—		$	(2	)	$	338

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(6	)	$	5		$	(424	)
Total recurring Level 3 liabilities	$	—		$	—		$	(6	)	$	5		$	(424	)



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Contract benefits			Interest credited to contractholder funds			Total
Components of net income	$	1	$	3	$	(1	)	$	(11	)	$	(8	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the nine months ended September 30, 2019.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	39		$	—		$	4		$	—		$	—
Corporate - public	33			—			—			—			(9		)
Corporate - privately placed	97			(2		)	2			15			(1		)
ABS - CDO	6			1			(1		)	—			—
ABS - consumer and other	16			—			—			—			(27		)
CMBS	—			—			—			2			—
Total fixed income securities	191			(1		)	5			17			(37		)
Equity securities	129			23			—			—			—
Free-standing derivatives, net	1			(1		)	—			—			—
Total recurring Level 3 assets	$	321		$	21		$	5		$	17		$	(37	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(223	)	$	(48	)	$	—		$	(154	)	$	—
Total recurring Level 3 liabilities	$	(223	)	$	(48	)	$	—		$	(154	)	$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	(1	)	$	—		$	—		$	42
Corporate - public	32			(1		)	—			(1		)	54
Corporate - privately placed	2			(13		)	—			(4		)	96
ABS - CDO	1			—			—			—			7
ABS - consumer and other	35			(6		)	—			(5		)	13
CMBS	—			—			—			—			2
Total fixed income securities	70			(21		)	—			(10		)	214
Equity securities	10			(38		)	—			—			124
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	80		$	(59	)	$	—		$	(10	)	$	338

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(6	)	$	7		$	(424	)
Total recurring Level 3 liabilities	$	—		$	—		$	(6	)	$	7		$	(424	)



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	3	$	18	$	2	$	(50	)	$	(27	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended September 30, 2018.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2018			Net income⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	58		$	—		$	(1	)	$	—		$	(1	)
Corporate - public	47			—			(1		)	—			(3		)
Corporate - privately placed	187			—			(1		)	—			(9		)
ABS - CDO	9			—			—			—			—
ABS - consumer and other	47			—			—			6			(13		)
Total fixed income securities	348			—			(3		)	6			(26		)
Equity securities	113			3			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	462		$	3		$	(3	)	$	6		$	(26	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(257	)	$	(6	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(257	)	$	(6	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	—		$	—		$	—		$	—		$	56
Corporate - public	—			(1		)	—			—			42
Corporate - privately placed	—			—			—			(11		)	166
ABS - CDO	—			—			—			(1		)	8
ABS - consumer and other	7			(6		)	—			(16		)	25
Total fixed income securities	7			(7		)	—			(28		)	297
Equity securities	5			—			—			—			121
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	12		$	(7	)	$	—		$	(28	)	$	419

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	1		$	(262	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	1		$	(262	)

__________


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	—	$	3	$	2	$	(8	)	$	(3	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the nine months ended September 30, 2018.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2017			Net income⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	57		$	—		$	(2	)	$	—		$	(1	)
Corporate - public	49			—			(2		)	3			(3		)
Corporate - privately placed	220			(2		)	(2		)	10			(32		)
ABS - CDO	10			—			—			—			—
ABS - consumer and other	40			—			—			12			(15		)
Total fixed income securities	376			(2		)	(6		)	25			(51		)
Equity securities	90			10			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	467		$	8		$	(6	)	$	25		$	(51	)

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(284	)	$	19		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(284	)	$	19		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	2		$	—		$	—		$	—		$	56
Corporate - public	—			(2		)	—			(3		)	42
Corporate - privately placed	11			—			—			(39		)	166
ABS - CDO	—			—			—			(2		)	8
ABS - consumer and other	20			(14		)	—			(18		)	25
Total fixed income securities	33			(16		)	—			(62		)	297
Equity securities	28			(7		)	—			—			121
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	61		$	(23	)	$	—		$	(62	)	$	419

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(262	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(262	)

__________


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Contract benefits		Interest credited to contractholder funds		Total
Components of net income	$	—	$	8	$	7	$	12	$	27

Schedule of gains and losses included in net income for Level 3 assets and liabilities held

The following table provides valuation changes included in net income for Level 3 assets and liabilities held as of September 30.



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Assets
Equity securities	$	3		$	3		$	10		$	10
Free-standing derivatives, net	—			—			(1		)	—
Total recurring Level 3 assets	$	3		$	3		$	9		$	10

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(12	)	$	(6	)	$	(48	)	$	19
Total recurring Level 3 liabilities	(12		)	(6		)	(48		)	19
Total included in net income	$	(9	)	$	(3	)	$	(39	)	$	29

Components of net income
Net investment income	$	1		$	—		$	3		$	—
Realized capital gains and losses	2			3			6			10
Contract benefits	(1		)	2			2			7
Interest credited to contractholder funds	(11		)	(8		)	(50		)	12
Total included in net income	$	(9	)	$	(3	)	$	(39	)	$	29

Schedule of carrying values and fair value estimates of financial instruments not carried at fair value

Financial assets



($ in millions)		September 30, 2019				December 31, 2018
	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	Level 3	$	4,012	$	4,176	$	3,995	$	4,028
Bank loans	Level 3	363		356		422		408
Agent loans	Level 3	663		666		620		617

Financial liabilities



($ in millions)		September 30, 2019				December 31, 2018
	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	Level 3	$	8,584	$	9,400	$	9,213	$	9,629
Liability for collateral	Level 2	691		691		525		525
Notes due to related parties	Level 3	140		144		140		138

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of volume and fair value positions of derivative instruments and reporting location in the Condensed Consolidated Statement of Financial Position



($ in millions, except number of contracts)		Volume⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	22		n/a	—			—		—
Equity and index contracts
Options	Other investments	—		3,149	96			96		—
Futures	Other assets	—		25	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	12		n/a	—			—		—
Foreign currency contracts
Foreign currency forwards	Other investments	223		n/a	15			16		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	29		n/a	(1		)	—		(1		)
Credit default swaps – selling protection	Other investments	5		n/a	—			—		—
Subtotal		298		3,174	110			112		(2		)
Total asset derivatives		$	300	3,174	$	110		$	112	$	(2	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	13	n/a	$	—		$	—	$	—
Futures	Other liabilities & accrued expenses	—		723	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		3,025	(34		)	—		(34		)
Futures	Other liabilities & accrued expenses	—		8	—			—		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	6		n/a	—			—		—
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	161		n/a	(21		)	—		(21		)
Guaranteed withdrawal benefits	Contractholder funds	205		n/a	(16		)	—		(16		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,680		n/a	(387		)	—		(387		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	—		n/a	—			—		—
Total liability derivatives		2,070		3,756	(458		)	$	—	$	(458	)
Total derivatives		$	2,370	6,930	$	(348	)

___________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	6	n/a	$	—		$	—	$	—
Futures	Other assets	—		330	—			—		—
Equity and index contracts
Options	Other investments	—		3,440	21			21		—
Futures	Other assets	—		26	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	10		n/a	(1		)	—		(1		)
Foreign currency contracts
Foreign currency forwards	Other investments	240		n/a	8			8		—
Credit default contracts
Credit default swaps – buying protection	Other investments	27		n/a	—			1		(1		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	292	3,796	$	28		$	30	$	(2	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	31	n/a	$	1		$	1	$	—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		3,266	(5		)	—		(5		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	169		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	210		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,696		n/a	(184		)	—		(184		)
Credit default contracts
Credit default swaps – selling protection	Other liabilities & accrued expenses	1		n/a	—			—		—
Total liability derivatives		2,107		3,266	(227		)	$	1	$	(228	)
Total derivatives		$	2,399	7,062	$	(199	)

Schedule of gross and net amounts about the Company's OTC derivatives subject to enforceable master netting arrangements, liabilities

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet		Securities collateral (received) pledged		Net amount
September 30, 2019
Asset derivatives	$	16		$	(2	)	$	(14	)	$	—	$	—	$	—
Liability derivatives	(2		)	2			—			—		—		—

December 31, 2018
Asset derivatives	$	10		$	(3	)	$	(5	)	$	2	$	—	$	2
Liability derivatives	(2		)	3			(1		)	—		—		—

Schedule of gross and net amounts about the Company's OTC derivatives subject to enforceable master netting arrangements, assets

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet		Securities collateral (received) pledged		Net amount
September 30, 2019
Asset derivatives	$	16		$	(2	)	$	(14	)	$	—	$	—	$	—
Liability derivatives	(2		)	2			—			—		—		—

December 31, 2018
Asset derivatives	$	10		$	(3	)	$	(5	)	$	2	$	—	$	2
Liability derivatives	(2		)	3			(1		)	—		—		—

Summary of impacts on operations and AOCI from foreign currency contracts, cash flow hedges



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Gain recognized in OCI on derivatives during the period	$	—	$	—	$	—	$	1
Gain reclassified from AOCI into income (realized capital gains and losses)	—		—		—		3

Schedule of gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges



($ in millions)	Realized capital gains and losses			Contract benefits			Interest credited to contractholder funds			Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2019
Equity and index contracts	$	—		$	—		$	3		$	3
Embedded derivative financial instruments	—			(1		)	(12		)	(13		)
Foreign currency contracts	8			—			—			8
Total return swaps - fixed income	—			—			—			—
Total return swaps - equity index	—			—			—			—
Total	$	8		$	(1	)	$	(9	)	$	(2	)

Nine months ended September 30, 2019
Equity and index contracts	$	2		$	—		$	43		$	45
Embedded derivative financial instruments	—			2			(49		)	(47		)
Foreign currency contracts	11			—			—			11
Total return swaps - fixed income	1			—			—			1
Total return swaps - equity index	2			—			—			2
Total	$	16		$	2		$	(6	)	$	12

Three months ended September 30, 2018
Interest rate contracts	$	1		$	—		$	—		$	1
Equity and index contracts	(2		)	—			18			16
Embedded derivative financial instruments	—			2			(7		)	(5		)
Foreign currency contracts	4			—			—			4
Total return swaps	1			—			—			1
Total	$	4		$	2		$	11		$	17

Nine months ended September 30, 2018
Interest rate contracts	$	1		$	—		$	—		$	1
Equity and index contracts	(2		)	—			24			22
Embedded derivative financial instruments	—			7			15			22
Foreign currency contracts	8			—			—			8
Total return swaps	1			—			—			1
Total	$	8		$	7		$	39		$	54

Summary of counterparty credit exposure by counterparty credit rating

The following table summarizes the counterparty credit exposure by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	September 30, 2019							December 31, 2018
Rating⁽¹⁾	Number of counter-parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral⁽²⁾		Number of counter- parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral⁽²⁾
A+	5	$	276	$	13	$	1	3	$	283	$	9	$	1
A	1	41		1		—		1	23		—		—
Total	6	$	317	$	14	$	1	4	$	306	$	9	$	1

__________


⁽¹⁾	Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.

⁽²⁾

Only OTC derivatives with a net positive fair value are included for each counterparty.

Summary of derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability



($ in millions)	As of September 30, 2019			As of December 31, 2018
Gross liability fair value of contracts containing credit-risk-contingent features	$	2		$	2
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(2		)	(2		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	—			—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—		$	—

Schedule of CDS notional amounts by credit rating and fair value of protection sold

The following table shows the CDS notional amounts by credit rating and fair value of protection sold.



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
September 30, 2019
Single name
Corporate debt	$	—	$	—	$	—	$	5	$	5	$	—
Total	$	—	$	—	$	—	$	5	$	5	$	—

December 31, 2018
Single name
Corporate debt	$	—	$	—	$	—	$	1	$	1	$	—
Total	$	—	$	—	$	—	$	1	$	1	$	—

Reinsurance (Tables)

9 Months Ended

Sep. 30, 2019

Reinsurance Disclosures [Abstract]

Effects of reinsurance on premiums and contract charges

The effects of reinsurance on premiums and contract charges are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Direct	$	180		$	184		$	548		$	553
Assumed
Affiliate	58			60			174			181
Non-affiliate	172			184			524			558
Ceded
Affiliate	(12		)	(13		)	(37		)	(38		)
Non-affiliate	(65		)	(71		)	(189		)	(209		)
Premiums and contract charges, net of reinsurance	$	333		$	344		$	1,020		$	1,045

Effects of reinsurance on contract benefits

The effects of reinsurance on contract benefits are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Direct	$	278		$	253		$	739		$	776
Assumed
Affiliate	37			44			99			112
Non-affiliate	127			101			377			358
Ceded
Affiliate	(8		)	(7		)	(27		)	(27		)
Non-affiliate	(68		)	(29		)	(84		)	(130		)
Contract benefits, net of reinsurance	$	366		$	362		$	1,104		$	1,089

Effects of reinsurance on interest credited to contractholder funds

The effects of reinsurance on interest credited to contractholder funds are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Direct	$	123		$	119		$	353		$	378
Assumed
Affiliate	2			2			6			6
Non-affiliate	41			38			116			96
Ceded
Affiliate	(5		)	(5		)	(15		)	(15		)
Non-affiliate	(7		)	(4		)	(15		)	(15		)
Interest credited to contractholder funds, net of reinsurance	$	154		$	150		$	445		$	450

Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of components of other comprehensive income on a pre-tax and after-tax basis

The components of other comprehensive income (loss) on a pre-tax and after-tax basis are as follows:



($ in millions)	Three months ended September 30,
	2019									2018
	Pre- tax			Tax			After- tax			Pre- tax			Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	216		$	(46	)	$	170		$	(64	)	$	14	$	(50	)
Less: reclassification adjustment of realized capital gains and losses	17			(4		)	13			(8		)	2		(6		)
Unrealized net capital gains and losses	199			(42		)	157			(56		)	12		(44		)
Unrealized foreign currency translation adjustments	1			—			1			(11		)	2		(9		)
Other comprehensive income (loss)	$	200		$	(42	)	$	158		$	(67	)	$	14	$	(53	)

	Nine months ended September 30,
	2019									2018
	Pre- tax			Tax			After- tax			Pre- tax			Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	863		$	(181	)	$	682		$	(379	)	$	80	$	(299	)
Less: reclassification adjustment of realized capital gains and losses	11			(2		)	9			(24		)	5		(19		)
Unrealized net capital gains and losses	852			(179		)	673			(355		)	75		(280		)
Unrealized foreign currency translation adjustments	(5		)	1			(4		)	—			—		—
Other comprehensive income (loss)	$	847		$	(178	)	$	669		$	(355	)	$	75	$	(280	)

General (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
General (Details) - USD ($) $ in Millions	Jan. 01, 2020	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2019	Jan. 01, 2019	Jul. 01, 2018	Jan. 01, 2018
Premiums and contract charges by product
Premiums		$ 165	$ 174	$ 506	$ 526
Contract charges		168	170	514	519
Premiums and contract charges, net of reinsurance		333	344	1,020	1,045
Cash dividends paid				75
Traditional life insurance
Premiums and contract charges by product
Premiums		135	143	416	435
Accident and health insurance
Premiums and contract charges by product
Premiums		30	31	90	91
Interest-sensitive life insurance
Premiums and contract charges by product
Contract charges		165	165	505	508
Fixed annuities
Premiums and contract charges by product
Contract charges		3	5	9	11
Retained earnings
Premiums and contract charges by product
Cumulative effect of change in accounting principle						$ 0	$ 0	$ 0	$ 314
Cash dividends paid		$ 0	$ 100	$ 75	$ 100
Minimum \| Forecast \| Retained earnings \| ASU 2016-13
Premiums and contract charges by product
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease)	$ 70
Cumulative effect of change in accounting principle	(45)
Maximum \| Forecast \| Retained earnings \| ASU 2016-13
Premiums and contract charges by product
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease)	110
Cumulative effect of change in accounting principle	$ (75)

Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Supplemental Cash Flow Information [Abstract]
Non-cash investing activities related to mergers and exchanges	$ 64	$ 38

Supplemental Cash Flow Information - Net change (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net change in proceeds managed
Net change in fixed income securities	$ 28	$ 78
Net change in short-term investments	(194)	(72)
Operating cash flow (used) provided	(166)	6
Net change in liabilities
Liabilities for collateral, beginning of period	(525)	(542)
Liabilities for collateral, end of period	(691)	(536)
Operating cash flow provided (used)	$ 166	$ (6)

Investments - Fair Values (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 20,419	$ 21,057
Gross unrealized, gains	1,625	732
Gross unrealized, losses	(44)	(389)
Fair value	22,000	21,400
U.S. government and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized cost	555	740
Gross unrealized, gains	40	33
Gross unrealized, losses	0	0
Fair value	595	773
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized cost	1,592	1,997
Gross unrealized, gains	324	202
Gross unrealized, losses	(3)	(4)
Fair value	1,913	2,195
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized cost	17,644	17,521
Gross unrealized, gains	1,193	433
Gross unrealized, losses	(38)	(381)
Fair value	18,799	17,573
Foreign government
Debt Securities, Available-for-sale [Line Items]
Amortized cost	155	170
Gross unrealized, gains	8	9
Gross unrealized, losses	0	0
Fair value	163	179
ABS
Debt Securities, Available-for-sale [Line Items]
Amortized cost	315	429
Gross unrealized, gains	4	3
Gross unrealized, losses	(2)	(3)
Fair value	317	429
RMBS
Debt Securities, Available-for-sale [Line Items]
Amortized cost	123	154
Gross unrealized, gains	49	44
Gross unrealized, losses	0	(1)
Fair value	172	197
CMBS
Debt Securities, Available-for-sale [Line Items]
Amortized cost	22	33
Gross unrealized, gains	6	7
Gross unrealized, losses	(1)	0
Fair value	27	40
Redeemable preferred stock
Debt Securities, Available-for-sale [Line Items]
Amortized cost	13	13
Gross unrealized, gains	1	1
Gross unrealized, losses	0	0
Fair value	$ 14	$ 14

Investments - Scheduled Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Amortized cost
Due in one year or less	$ 1,410
Due after one year through five years	7,675
Due after five years through ten years	7,354
Due after ten years	3,520
Subtotal	19,959
ABS, RMBS and CMBS	460
Amortized cost	20,419	$ 21,057
Fair value
Due in one year or less	1,426
Due after one year through five years	7,982
Due after five years through ten years	7,845
Due after ten years	4,231
Subtotal	21,484
ABS, RMBS and CMBS	516
Fair value	$ 22,000	$ 21,400

Investments - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net investment income
Investment income, before expense	$ 399	$ 410	$ 1,180	$ 1,285
Investment expense	(26)	(25)	(79)	(74)
Net investment income	373	385	1,101	1,211
Fixed income securities
Net investment income
Investment income, before expense	235	247	721	745
Mortgage loans
Net investment income
Investment income, before expense	48	44	140	141
Equity securities
Net investment income
Investment income, before expense	6	7	26	30
Limited partnership interests
Net investment income
Investment income, before expense	69	74	174	262
Short-term investments
Net investment income
Investment income, before expense	8	7	24	16
Policy loans
Net investment income
Investment income, before expense	9	8	25	23
Other
Net investment income
Investment income, before expense	$ 24	$ 23	$ 70	$ 68

Investments - Realized Capital Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Realized capital gains and losses by asset type
Realized capital gains (losses)	$ 25	$ 48	$ 219	$ 24
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains (losses)	19	(8)	17	(26)
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains (losses)	0	0	0	2
Equity securities
Realized capital gains and losses by asset type
Realized capital gains (losses)	7	56	192	50
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains (losses)	(2)	(4)	8	(12)
Derivatives
Realized capital gains and losses by asset type
Realized capital gains (losses)	8	4	16	11
Other
Realized capital gains and losses by asset type
Realized capital gains (losses)	$ (7)	$ 0	$ (14)	$ (1)

Investments - Realized Capital Gains and Losses by Transaction Type (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments [Abstract]
Impairment write-downs	$ (8)	$ (4)	$ (20)	$ (7)
Sales	20	(2)	20	(14)
Valuation of equity investments	5	50	203	37
Valuation and settlements of derivative instruments	8	4	16	8
Total realized capital gains and losses	$ 25	$ 48	$ 219	$ 24

Investments - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Investments - Narrative (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair value of assets and liabilities measured on recurring and non-recurring basis
Gross gains on sales of fixed income securities, debt	$ 24,000,000	$ 5,000,000	$ 50,000,000	$ 25,000,000
Gross losses on sales of fixed income securities, debt	4,000,000	9,000,000	29,000,000	45,000,000
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	105,000,000		105,000,000		$ 101,000,000
Carrying value of limited partnerships	3,304,000,000		3,304,000,000		3,292,000,000
Short-term investments	1,475,000,000		1,475,000,000		810,000,000
Carrying value of policy loans	555,000,000		555,000,000		561,000,000
Equity method limited partnerships
Fair value of assets and liabilities measured on recurring and non-recurring basis
Carrying value of limited partnerships	2,540,000,000		2,540,000,000		2,510,000,000
Carrying value \| Cost method limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Carrying value of limited partnerships	762,000,000		762,000,000		$ 787,000,000
Non-impaired mortgage loans
Fair value of assets and liabilities measured on recurring and non-recurring basis
Change in valuation allowance on impaired mortgage loans	$ 0	$ 0	0	0
Mortgage loans
Fair value of assets and liabilities measured on recurring and non-recurring basis
Average balance of impaired loans			$ 4,000,000	$ 4,000,000

Investments - Valuation Changes Included in Net Income for Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Total	$ 37	$ 86	$ 196	$ 155
Equity securities
Debt Securities, Available-for-sale [Line Items]
Total	16	51	155	71
Limited partnership interests carried at fair value
Debt Securities, Available-for-sale [Line Items]
Total	$ 21	$ 35	$ 41	$ 84

Investments - Other-than-temporary impairment losses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
OTTI losses
Gross	$ (10)	$ (3)	$ (23)	$ (5)
Included in OCI	2	(1)	3	(2)
Net	(8)	(4)	(20)	(7)
Municipal
OTTI losses
Gross	(2)	0	(2)	0
Included in OCI	2	0	2	0
Net	0	0	0	0
Corporate
OTTI losses
Gross	0	0	(1)	0
Included in OCI	0	0	(1)	0
Net	0	0	(2)	0
ABS
OTTI losses
Gross	0	0	(1)	0
Included in OCI	0	(1)	0	(1)
Net	0	(1)	(1)	(1)
RMBS
OTTI losses
Gross	0	0	0	(1)
Included in OCI	0	0	0	0
Net	0	0	0	(1)
CMBS
OTTI losses
Gross	(1)	(3)	(3)	(3)
Included in OCI	0	0	2	(1)
Net	(1)	(3)	(1)	(4)
Fixed income securities
OTTI losses
Gross	(3)	(3)	(7)	(4)
Included in OCI	2	(1)	3	(2)
Net	(1)	(4)	(4)	(6)
Limited partnership interests
OTTI losses
Gross	0	0	(2)	0
Included in OCI	0	0	0	0
Net	0	0	(2)	0
Other
OTTI losses
Gross	(7)	0	(14)	(1)
Included in OCI	0	0	0	0
Net	$ (7)	$ 0	$ (14)	$ (1)

Investments - Other-than-temporary Losses Included in AOCI (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Other-than-temporary impairment losses included in accumulated other comprehensive income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	$ (42)	$ (44)
Municipal
Other-than-temporary impairment losses included in accumulated other comprehensive income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(6)	(4)
Corporate
Other-than-temporary impairment losses included in accumulated other comprehensive income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	0	(1)
ABS
Other-than-temporary impairment losses included in accumulated other comprehensive income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(4)	(5)
RMBS
Other-than-temporary impairment losses included in accumulated other comprehensive income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(28)	(32)
CMBS
Other-than-temporary impairment losses included in accumulated other comprehensive income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	$ (4)	$ (2)

Investments - Rollforward of Cumulative Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Credit Losses on Fixed Income Securities
Beginning balance	$ (122)	$ (124)	$ (123)	$ (138)
Additional credit loss for securities previously other-than-temporarily impaired	(1)	(3)	(3)	(5)
Additional credit loss for securities not previously other-than-temporarily impaired	0	(1)	(1)	(1)
Reduction in credit loss for securities disposed or collected	12	2	16	18
Change in credit loss due to accretion of increase in cash flows	0	1	0	1
Ending balance	$ (111)	$ (125)	$ (111)	$ (125)

Investments - Unrealized Net Capital Gains and Losses (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair value
Fixed income securities	$ 22,000	$ 21,400
Short-term investments	1,475	810
Gross unrealized Gains
Fixed income securities	1,625	732
Short-term investments	0	0
Gross unrealized Losses
Fixed income securities	(44)	(389)
Short-term investments	0	0
Unrealized net gains (losses)
Fixed income securities	1,581	343
Short-term investments	0	0
EMA limited partnerships	(1)	0
Unrealized net capital gains and losses, pre-tax	1,580	343
Amounts recognized for:
Insurance reserves	(202)	0
DAC and DSI	(218)	(35)
Amounts recognized	(420)	(35)
Deferred income taxes	(244)	(65)
Total unrealized net capital gains and losses	$ 916	$ 243

Investments - Change in Unrealized Net Capital Gains and Losses (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 1,237
Amounts recognized for:
Insurance reserves	(202)
DAC and DSI	(183)
Amounts recognized	(385)
Deferred income taxes	(179)
Increase in unrealized net capital gains and losses, after-tax	673
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	1,238
Limited partnership interests
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (1)

Investments - Portfolio Monitoring (Details) $ in Millions	Sep. 30, 2019 USD ($) security	Dec. 31, 2018 USD ($) security
Fixed income securities
Less than 12 months
Number of issues \| security	152	1,458
Fair value	$ 476	$ 7,088
Unrealized losses	$ (10)	$ (220)
12 months or more
Number of issues \| security	90	436
Fair value	$ 376	$ 2,701
Unrealized losses	(34)	(169)
Total unrealized losses
Total unrealized losses	$ (44)	$ (389)
U.S. government and agencies
Less than 12 months
Number of issues \| security	2	2
Fair value	$ 16	$ 6
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| security	0	1
Fair value	$ 0	$ 1
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
Municipal
Less than 12 months
Number of issues \| security	2	38
Fair value	$ 2	$ 98
Unrealized losses	$ 0	$ (1)
12 months or more
Number of issues \| security	1	5
Fair value	$ 14	$ 26
Unrealized losses	(3)	(3)
Total unrealized losses
Total unrealized losses	$ (3)	$ (4)
Corporate
Less than 12 months
Number of issues \| security	123	1,260
Fair value	$ 413	$ 6,799
Unrealized losses	$ (9)	$ (218)
12 months or more
Number of issues \| security	59	370
Fair value	$ 343	$ 2,633
Unrealized losses	(29)	(163)
Total unrealized losses
Total unrealized losses	$ (38)	$ (381)
ABS
Less than 12 months
Number of issues \| security	18	30
Fair value	$ 38	$ 167
Unrealized losses	$ (1)	$ (1)
12 months or more
Number of issues \| security	4	11
Fair value	$ 13	$ 31
Unrealized losses	(1)	(2)
Total unrealized losses
Total unrealized losses	$ (2)	$ (3)
RMBS
Less than 12 months
Number of issues \| security	6	124
Fair value	$ 2	$ 11
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| security	25	47
Fair value	$ 4	$ 10
Unrealized losses	0	(1)
Total unrealized losses
Total unrealized losses	$ 0	$ (1)
CMBS
Less than 12 months
Number of issues \| security	1	3
Fair value	$ 5	$ 7
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| security	1	2
Fair value	$ 2	$ 0
Unrealized losses	(1)	0
Total unrealized losses
Total unrealized losses	$ (1)	$ 0
Redeemable preferred stock
Less than 12 months
Number of issues \| security	0	1
Fair value	$ 0	$ 0
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| security	0	0
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
Investment grade fixed income securities
Less than 12 months
Number of issues \| security	82	948
Fair value	$ 325	$ 5,255
Unrealized losses	$ (3)	$ (121)
12 months or more
Number of issues \| security	52	388
Fair value	$ 212	$ 2,551
Unrealized losses	(18)	(147)
Total unrealized losses
Total unrealized losses	$ (21)	$ (268)
Below investment grade fixed income securities
Less than 12 months
Number of issues \| security	70	510
Fair value	$ 151	$ 1,833
Unrealized losses	$ (7)	$ (99)
12 months or more
Number of issues \| security	38	48
Fair value	$ 164	$ 150
Unrealized losses	(16)	(22)
Total unrealized losses
Total unrealized losses	$ (23)	$ (121)

Investments - Gross Unrealized Losses by Unrealized Loss Position and Credit Quality (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of amortized cost or cost, greater than 12 months	$ 0
Total
Schedule of Held-to-maturity Securities [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost	(28,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(16,000,000)
Total unrealized losses	(44,000,000)	$ (389,000,000)
Investment grade
Schedule of Held-to-maturity Securities [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost	(8,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(13,000,000)
Total unrealized losses	(21,000,000)	(268,000,000)
Below investment grade
Schedule of Held-to-maturity Securities [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost	(20,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(3,000,000)
Total unrealized losses	(23,000,000)	$ (121,000,000)
Available for sale securities, unrealized losses having loss of less than twenty percent, less than 12 months	$ (7,000,000)

Investments - Carrying Value of Non-impaired Fixed Rate and Variable Rate Mortgage Loans (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Total	$ 4,012	$ 3,995
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance	6	4
Impaired mortgage loans without a valuation allowance	0	0
Total impaired mortgage loans	6	4
Valuation allowance on impaired mortgage loans	3	3
Non-impaired mortgage loans
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans	3,937	3,934
Variable rate mortgage loans	69	57
Total	4,006	3,991
Non-impaired mortgage loans \| Below 1.0
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans	11	6
Variable rate mortgage loans	16	15
Total	27	21
Non-impaired mortgage loans \| 1.0 - 1.25
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans	221	221
Variable rate mortgage loans	0	0
Total	221	221
Non-impaired mortgage loans \| 1.26 - 1.50
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans	1,203	1,048
Variable rate mortgage loans	9	0
Total	1,212	1,048
Non-impaired mortgage loans \| Above 1.50
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans	2,502	2,659
Variable rate mortgage loans	44	42
Total	$ 2,546	$ 2,701

Investments - Other investments by type (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investment Holdings [Line Items]
Other investments	$ 1,366	$ 1,300
Agent loans
Investment Holdings [Line Items]
Other investments	663	620
Bank loans
Investment Holdings [Line Items]
Other investments	363	422
Real estate
Investment Holdings [Line Items]
Other investments	243	228
Derivatives and other
Investment Holdings [Line Items]
Other investments	$ 97	$ 30

Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair value of assets and liabilities measured on recurring and non-recurring basis
Total recurring Level 3 assets	$ 3	$ 3	$ 9	$ 10
Fair value	22,000		22,000		$ 21,400
Level 3
Fair value of assets and liabilities measured on recurring and non-recurring basis
Securities valued based on non-binding broker quotes	338		338		321
Fixed income securities \| Level 3
Fair value of assets and liabilities measured on recurring and non-recurring basis
Securities valued based on non-binding broker quotes	75		75		80
Recurring basis \| Level 3
Fair value of assets and liabilities measured on recurring and non-recurring basis
Fair value	214		214		$ 191
Securities valued based on non-binding broker quotes	338		338
Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Commitments to invest in limited partnership interests	$ 221		$ 221
Minimum \| Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, contract liquidation period			4 years
Investment assets, typical contractual life			10 years
Maximum \| Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, contract liquidation period			9 years
Investment assets, typical contractual life			12 years

Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets
Fixed income securities	$ 22,000	$ 21,400
Short-term investments	1,475	810
Other investments: Free-standing derivatives			$ 1
Separate account assets	2,912	2,783
Derivative asset, fair value, gross liability and obligation to return cash, offset	$ (16)	$ (8)
% of total assets at fair value	(0.10%)	0.00%
Total	$ 28,462	$ 27,128
Liabilities
Free standing derivative liabilities derivative liability, fair value, gross asset and right to reclaim cash, offset	$ 2	$ 2
% of total liabilities at fair value	(0.50%)	(0.90%)
U.S. government and agencies
Assets
Fixed income securities	$ 595	$ 773
Municipal
Assets
Fixed income securities	1,913	2,195
Foreign government
Assets
Fixed income securities	163	179
RMBS
Assets
Fixed income securities	172	197
CMBS
Assets
Fixed income securities	27	40
Redeemable preferred stock
Assets
Fixed income securities	14	14
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 5,097	$ 4,901
% of total assets at fair value	18.40%	18.60%
Liabilities
Total recurring basis liabilities at fair value	$ 0	$ 0
% of total liabilities at fair value	0.00%	0.00%
Significant other observable inputs (Level 2)
Assets
Total assets at fair value	$ 22,281	$ 21,127
% of total assets at fair value	80.50%	80.20%
Liabilities
Total recurring basis liabilities at fair value	$ (36)	$ (7)
% of total liabilities at fair value	7.90%	3.10%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 338	$ 321
% of total assets at fair value	1.20%	1.20%
Liabilities
Total recurring basis liabilities at fair value	$ (424)	$ (223)
% of total liabilities at fair value	92.60%	97.80%
Investments reported at NAV
Assets
Investments reported at NAV	$ 762	$ 787
Recurring basis
Assets
Other investments: Free-standing derivatives, gross liability and obligation to return cash, offset	(16)	(8)
Derivative asset, fair value, gross liability and obligation to return cash, offset	(16)
Liabilities
Free standing derivative liabilities derivative liability, fair value, gross asset and right to reclaim cash, offset	2	2
Recurring basis \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities	302	493
Equity securities	1,081	1,182
Short-term investments	802	443
Other investments: Free-standing derivatives	0	0
Separate account assets	2,912	2,783
Total assets at fair value	5,097
Liabilities
Other liabilities: Free-standing derivatives	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities	302	493
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| ABS - CDO
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| ABS - consumer and other
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| RMBS
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| CMBS
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Redeemable preferred stock
Assets
Fixed income securities	0	0
Recurring basis \| Significant other observable inputs (Level 2)
Assets
Fixed income securities	21,484	20,716
Equity securities	12	14
Short-term investments	673	367
Other investments: Free-standing derivatives	112	30
Separate account assets	0	0
Total assets at fair value	22,281
Liabilities
Other liabilities: Free-standing derivatives	(36)	(7)
Recurring basis \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities	293	280
Recurring basis \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities	1,871	2,156
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities	12,954	11,891
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities	5,695	5,552
Recurring basis \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities	163	179
Recurring basis \| Significant other observable inputs (Level 2) \| ABS - CDO
Assets
Fixed income securities	19	26
Recurring basis \| Significant other observable inputs (Level 2) \| ABS - consumer and other
Assets
Fixed income securities	278	381
Recurring basis \| Significant other observable inputs (Level 2) \| RMBS
Assets
Fixed income securities	172	197
Recurring basis \| Significant other observable inputs (Level 2) \| CMBS
Assets
Fixed income securities	25	40
Recurring basis \| Significant other observable inputs (Level 2) \| Redeemable preferred stock
Assets
Fixed income securities	14	14
Recurring basis \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities	214	191
Equity securities	124	129
Short-term investments	0	0
Other investments: Free-standing derivatives	0	1
Separate account assets	0	0
Total assets at fair value	338
Liabilities
Other liabilities: Free-standing derivatives	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities	42	39
Recurring basis \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities	54	33
Recurring basis \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities	96	97
Recurring basis \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| ABS - CDO
Assets
Fixed income securities	7	6
Recurring basis \| Significant unobservable inputs (Level 3) \| ABS - consumer and other
Assets
Fixed income securities	13	16
Recurring basis \| Significant unobservable inputs (Level 3) \| RMBS
Assets
Fixed income securities	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| CMBS
Assets
Fixed income securities	2	0
Recurring basis \| Significant unobservable inputs (Level 3) \| Redeemable preferred stock
Assets
Fixed income securities	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis \| Quoted prices in active markets for identical assets (Level 1)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis \| Significant other observable inputs (Level 2)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis \| Significant unobservable inputs (Level 3)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(424)	(223)
Fair value
Assets
Total assets at fair value	$ 27,700	$ 26,341
% of total assets at fair value	100.00%	100.00%
Liabilities
Total recurring basis liabilities at fair value	$ (458)	$ (228)
% of total liabilities at fair value	100.00%	100.00%
Fair value \| Recurring basis
Assets
Fixed income securities	$ 22,000	$ 21,400
Equity securities	1,217	1,325
Short-term investments	1,475	810
Other investments: Free-standing derivatives	96	23
Separate account assets	2,912	2,783
Total assets at fair value	27,700
Liabilities
Other liabilities: Free-standing derivatives	(34)	(5)
Fair value \| Recurring basis \| U.S. government and agencies
Assets
Fixed income securities	595	773
Fair value \| Recurring basis \| Municipal
Assets
Fixed income securities	1,913	2,195
Fair value \| Recurring basis \| Corporate - public
Assets
Fixed income securities	13,008	11,924
Fair value \| Recurring basis \| Corporate - privately placed
Assets
Fixed income securities	5,791	5,649
Fair value \| Recurring basis \| Foreign government
Assets
Fixed income securities	163	179
Fair value \| Recurring basis \| ABS - CDO
Assets
Fixed income securities	26	32
Fair value \| Recurring basis \| ABS - consumer and other
Assets
Fixed income securities	291	397
Fair value \| Recurring basis \| RMBS
Assets
Fixed income securities	172	197
Fair value \| Recurring basis \| CMBS
Assets
Fixed income securities	27	40
Fair value \| Recurring basis \| Redeemable preferred stock
Assets
Fixed income securities	14	14
Fair value \| Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$ (424)	$ (223)

Fair Value of Assets and Liabilities - Level 3 Fair Value Measurement (Details) - Equity-indexed and forward starting options - Significant unobservable inputs (Level 3) $ in Millions	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Quantitative information about the significant unobservable inputs
Fair value	$ (387)	$ (184)
Projected option cost \| Minimum
Quantitative information about the significant unobservable inputs
Embedded derivative liability, measurement input	0.010	0.010
Projected option cost \| Maximum
Quantitative information about the significant unobservable inputs
Embedded derivative liability, measurement input	0.042	0.022
Projected option cost \| Weighted average
Quantitative information about the significant unobservable inputs
Embedded derivative liability, measurement input	0.0255	0.0174

Fair Value of Assets and Liabilities - Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Assets
Balance at beginning of period	$ 323	$ 462	$ 321	$ 467
Components of net income	4	3	21	8
Total gains (losses) included in: OCI	1	(3)	5	(6)
Transfers into Level 3	0	6	17	25
Transfers out of Level 3	(22)	(26)	(37)	(51)
Purchases	34	12	80	61
Sales	0	(7)	(59)	(23)
Issues	0	0	0	0
Settlements	(2)	(28)	(10)	(62)
Balance at end of period	338	419	338	419
Liabilities
Balance at beginning of period	(411)	(257)	(223)	(284)
Total gains (losses) included in: Net income	(12)	(6)	(48)	19
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	(154)	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	(6)	0	(6)	(1)
Settlements	5	1	7	4
Balance at end of period	(424)	(262)	(424)	(262)
Assets comprised of gains (losses) included in net income		1		1
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings	(8)	(3)	(27)	27
Fixed income securities
Assets
Balance at beginning of period	204	348	191	376
Components of net income	1	0	(1)	(2)
Total gains (losses) included in: OCI	1	(3)	5	(6)
Transfers into Level 3	0	6	17	25
Transfers out of Level 3	(22)	(26)	(37)	(51)
Purchases	32	7	70	33
Sales	0	(7)	(21)	(16)
Issues	0	0	0	0
Settlements	(2)	(28)	(10)	(62)
Balance at end of period	214	297	214	297
Municipal
Assets
Balance at beginning of period	40	58	39	57
Components of net income	0	0	0	0
Total gains (losses) included in: OCI	2	(1)	4	(2)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	(1)	0	(1)
Purchases	0	0	0	2
Sales	0	0	(1)	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	42	56	42	56
Corporate - public
Assets
Balance at beginning of period	32	47	33	49
Components of net income	0	0	0	0
Total gains (losses) included in: OCI	0	(1)	0	(2)
Transfers into Level 3	0	0	0	3
Transfers out of Level 3	(7)	(3)	(9)	(3)
Purchases	29	0	32	0
Sales	0	(1)	(1)	(2)
Issues	0	0	0	0
Settlements	0	0	(1)	(3)
Balance at end of period	54	42	54	42
Corporate - privately placed
Assets
Balance at beginning of period	96	187	97	220
Components of net income	0	0	(2)	(2)
Total gains (losses) included in: OCI	0	(1)	2	(2)
Transfers into Level 3	0	0	15	10
Transfers out of Level 3	0	(9)	(1)	(32)
Purchases	1	0	2	11
Sales	0	0	(13)	0
Issues	0	0	0	0
Settlements	(1)	(11)	(4)	(39)
Balance at end of period	96	166	96	166
ABS - CDO
Assets
Balance at beginning of period	6	9	6	10
Components of net income	1	0	1	0
Total gains (losses) included in: OCI	(1)	0	(1)	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	1	0	1	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	(1)	0	(2)
Balance at end of period	7	8	7	8
ABS - consumer and other
Assets
Balance at beginning of period	28	47	16	40
Components of net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	6	0	12
Transfers out of Level 3	(15)	(13)	(27)	(15)
Purchases	1	7	35	20
Sales	0	(6)	(6)	(14)
Issues	0	0	0	0
Settlements	(1)	(16)	(5)	(18)
Balance at end of period	13	25	13	25
CMBS
Assets
Balance at beginning of period	2		0
Components of net income	0		0
Total gains (losses) included in: OCI	0		0
Transfers into Level 3	0		2
Transfers out of Level 3	0		0
Purchases	0		0
Sales	0		0
Issues	0		0
Settlements	0		0
Balance at end of period	2		2
Equity securities
Assets
Balance at beginning of period	119	113	129	90
Components of net income	3	3	23	10
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	2	5	10	28
Sales	0	0	(38)	(7)
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	124	121	124	121
Free-standing derivatives, net
Assets
Balance at beginning of period	0	1	1	1
Components of net income	0	0	(1)	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	0	1	0	1
Contractholder funds: Derivatives embedded in life and annuity contracts
Liabilities
Balance at beginning of period	(411)	(257)	(223)	(284)
Total gains (losses) included in: Net income	(12)	(6)	(48)	19
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	(154)	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	(6)	0	(6)	(1)
Settlements	5	1	7	4
Balance at end of period	(424)	(262)	(424)	(262)
Net investment income
Assets
Components of net income	1	0	3	0
Realized capital gains and losses
Assets
Components of net income	3	3	18	8
Contract benefits
Assets
Components of net income	(1)	2	2	7
Interest credited to contractholder funds
Assets
Components of net income	$ (11)	$ (8)	$ (50)	$ 12

Fair Value of Assets and Liabilities - Gains and Losses included in Net Income for Level 3 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	$ 3	$ 3	$ 9	$ 10
Total recurring Level 3 liabilities	(12)	(6)	(48)	19
Total included in net income	(9)	(3)	(39)	29
Contractholder funds: Derivatives embedded in life and annuity contracts
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 liabilities	(12)	(6)	(48)	19
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	3	3	10	10
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	0	0	(1)	0
Net investment income
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	1	0	3	0
Realized capital gains and losses
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	2	3	6	10
Contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	(1)	2	2	7
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Total recurring Level 3 assets	$ (11)	$ (8)	$ (50)	$ 12

Fair Value of Assets and Liabilities - Carrying Values and Fair Value Estimates of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Financial assets
Mortgage loans	$ 4,012	$ 3,995
Financial liabilities
Liability for collateral	691	525	$ 536	$ 542
Notes due to related parties	140	140
Level 3 \| Carrying value
Financial assets
Mortgage loans	4,012	3,995
Bank loans	363	422
Agent loans	663	620
Financial liabilities
Contractholder funds on investment contracts	8,584	9,213
Notes due to related parties	140	140
Level 3 \| Fair value
Financial assets
Mortgage loans	4,176	4,028
Bank loans	356	408
Agent loans	666	617
Financial liabilities
Contractholder funds on investment contracts	9,400	9,629
Notes due to related parties	144	138
Level 2 \| Carrying value
Financial liabilities
Liability for collateral	691	525
Level 2 \| Fair value
Financial liabilities
Liability for collateral	$ 691	$ 525

Derivative Financial Instruments - Narrative (Details)	9 Months Ended
Derivative Financial Instruments - Narrative (Details)	Sep. 30, 2019 USD ($) entity contract	Dec. 31, 2018 contract	Sep. 30, 2018 contract
Derivative [Line Items]
Potential recoveries under credit risk derivatives \| $	$ 0
Number of derivatives held (contract)	6,930	7,062
Cash and securities pledged as collateral by counterparties \| $	$ 14,000,000
Cash and securities pledged as collateral to counterparties \| $	0
Securities pledged in the form of margin deposits \| $	$ 6,000,000
Term of credit default swaps (in years)	5 years
The number of reference entities generally included in a CDX index \| entity	125
Fair Value Hedging \| Derivatives designated as fair value accounting hedging instruments
Derivative [Line Items]
Number of derivatives held (contract)	1		1
Number of foreign currency contracts	0		0
Cash Flow Hedging \| Derivatives designated as fair value accounting hedging instruments
Derivative [Line Items]
Number of derivatives held (contract)	0		0
Number of foreign currency contracts			1

Derivative Financial Instruments - Volume and Fair Value Positions of Derivative Instruments (Details) $ in Millions	Sep. 30, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 300	$ 292
Total liability derivatives, Notional amount	2,070	2,107
Total derivatives, Notional amount	$ 2,370	$ 2,399
Total asset derivatives, Number of contracts \| contract	3,174	3,796
Total liability derivatives, Number of contracts \| contract	3,756	3,266
Total derivatives, Number of contracts \| contract	6,930	7,062
Total asset derivatives, Fair value, net	$ 110	$ 28
Total liability derivatives, Fair value, net	(458)	(227)
Total derivatives, Fair value, net	(348)	(199)
Asset derivatives, Gross asset	112	30
Asset derivatives, Gross liability	(2)	(2)
Liability derivatives, Gross asset	0	1
Liability derivatives, Gross liability	(458)	(228)
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 298
Total asset derivatives, Number of contracts \| contract	3,174
Total asset derivatives, Fair value, net	$ 110
Asset derivatives, Gross asset	112
Asset derivatives, Gross liability	(2)
Other \| Derivatives designated as fair value accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	2
Total asset derivatives, Fair value, net	0
Asset derivatives, Gross asset	0
Asset derivatives, Gross liability	0
Other \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount		2
Total asset derivatives, Fair value, net		0
Asset derivatives, Gross asset		0
Asset derivatives, Gross liability		0
Interest rate contracts, futures \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount		$ 0
Total asset derivatives, Number of contracts \| contract		330
Total asset derivatives, Fair value, net		$ 0
Asset derivatives, Gross asset		0
Asset derivatives, Gross liability		0
Interest rate contracts, futures \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	723
Total liability derivatives, Fair value, net	$ 0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	22	6
Total asset derivatives, Fair value, net	0	0
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	13	31
Total liability derivatives, Fair value, net	0	1
Liability derivatives, Gross asset	0	1
Liability derivatives, Gross liability	0	0
Options \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	3,149	3,440
Total asset derivatives, Fair value, net	$ 96	$ 21
Asset derivatives, Gross asset	96	21
Asset derivatives, Gross liability	0	0
Options \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0	$ 0
Total liability derivatives, Number of contracts \| contract	3,025	3,266
Total liability derivatives, Fair value, net	$ (34)	$ (5)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(34)	(5)
Equity and index contracts, futures \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	25	26
Total asset derivatives, Fair value, net	$ 0	$ 0
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	0
Equity and index contracts, futures \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	8
Total liability derivatives, Fair value, net	$ 0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Total return swap agreements - fixed income \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	7	7
Total asset derivatives, Fair value, net	0	0
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	0
Total return swap agreements - equity index \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	12	10
Total asset derivatives, Fair value, net	0	(1)
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	(1)
Foreign currency forwards \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	223	240
Total asset derivatives, Fair value, net	15	8
Asset derivatives, Gross asset	16	8
Asset derivatives, Gross liability	(1)	0
Foreign currency forwards \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	6
Total liability derivatives, Fair value, net	0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Guaranteed accumulation benefits \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	161	169
Total liability derivatives, Fair value, net	(21)	(25)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(21)	(25)
Guaranteed withdrawal benefits \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	205	210
Total liability derivatives, Fair value, net	(16)	(14)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(16)	(14)
Equity-indexed and forward starting options in life and annuity product contracts \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	1,680	1,696
Total liability derivatives, Fair value, net	(387)	(184)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(387)	(184)
Credit default swaps – buying protection \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	29	27
Total asset derivatives, Fair value, net	(1)	0
Asset derivatives, Gross asset	0	1
Asset derivatives, Gross liability	(1)	(1)
Credit default swaps – buying protection \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	5
Total liability derivatives, Fair value, net	0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Credit default swaps – selling protection \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	5
Total asset derivatives, Fair value, net	0
Asset derivatives, Gross asset	0
Asset derivatives, Gross liability	0
Credit default swaps – selling protection \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	0	1
Total liability derivatives, Fair value, net	0	0
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	$ 0	$ 0

Derivative Financial Instruments - Gross and Net Amounts Derivatives (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Asset derivatives
Gross amount	$ 112	$ 30
Counter- party netting	(2)	(2)
Net amount on balance sheet	110	28
Liability derivatives
Gross amount	(458)	(228)
Counter- party netting	0	1
Net amount on balance sheet	(458)	(227)
OTC derivatives
Asset derivatives
Gross amount	16	10
Counter- party netting	(2)	(3)
Cash collateral (received) pledged	(14)	(5)
Net amount on balance sheet	0	2
Securities collateral (received) pledged	0	0
Net amount	0	2
Liability derivatives
Gross amount	(2)	(2)
Counter- party netting	2	3
Cash collateral (received) pledged	0	(1)
Net amount on balance sheet	0	0
Securities collateral (received) pledged	0	0
Net amount	$ 0	$ 0

Derivative Financial Instruments - Foreign Currency Contracts in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain recognized in OCI on derivatives during the period	$ 0	$ 0	$ 0	$ 1
Gain reclassified from AOCI into income (realized capital gains and losses)	$ 0	$ 0	$ 0	$ 3

Derivative Financial Instruments - Derivative Netting (Details) $ in Millions	Sep. 30, 2019 USD ($) party	Dec. 31, 2018 USD ($) party
Credit Derivatives
Number of counter-parties (party) \| party	6	4
Notional amount	$ 317	$ 306
Credit exposure	14	9
Exposure, net of collateral	$ 1	$ 1
A plus
Credit Derivatives
Number of counter-parties (party) \| party	5	3
Notional amount	$ 276	$ 283
Credit exposure	13	9
Exposure, net of collateral	$ 1	$ 1
A
Credit Derivatives
Number of counter-parties (party) \| party	1	1
Notional amount	$ 41	$ 23
Credit exposure	1	0
Exposure, net of collateral	$ 0	$ 0

Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross liability fair value of contracts containing credit-risk-contingent features	$ 2	$ 2
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(2)	(2)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	0	0
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 0	$ 0

Derivative Financial Instruments - CDS Notional Amounts by Credit Rating (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Credit Derivatives
Notional amount	$ 2,370	$ 2,399
Credit default contracts
Credit Derivatives
Notional amount	5	1
Fair value	0	0
Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	5	1
Fair value	0	0
AA \| Credit default contracts
Credit Derivatives
Notional amount	0	0
AA \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
A \| Credit default contracts
Credit Derivatives
Notional amount	0	0
A \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
BBB \| Credit default contracts
Credit Derivatives
Notional amount	0	0
BBB \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default contracts
Credit Derivatives
Notional amount	5	1
BB and lower \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	$ 5	$ 1

Reinsurance - Effects of Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Effects of reinsurance on revenue
Direct	$ 180	$ 184	$ 548	$ 553
Premiums and contract charges, net of reinsurance	333	344	1,020	1,045
Effects of reinsurance on cost and expenses
Direct	278	253	739	776
Contract benefits, net of reinsurance	366	362	1,104	1,089
Effects of reinsurance on interest credited to contractholder funds [Abstract]
Direct	123	119	353	378
Interest credited to contractholder funds, net of reinsurance	154	150	445	450
Non-affiliate
Effects of reinsurance on revenue
Assumed	172	184	524	558
Ceded	(65)	(71)	(189)	(209)
Effects of reinsurance on cost and expenses
Assumed	127	101	377	358
Ceded	(68)	(29)	(84)	(130)
Effects of reinsurance on interest credited to contractholder funds [Abstract]
Assumed	41	38	116	96
Ceded	(7)	(4)	(15)	(15)
Affiliate
Effects of reinsurance on revenue
Assumed	58	60	174	181
Ceded	(12)	(13)	(37)	(38)
Effects of reinsurance on cost and expenses
Assumed	37	44	99	112
Ceded	(8)	(7)	(27)	(27)
Effects of reinsurance on interest credited to contractholder funds [Abstract]
Assumed	2	2	6	6
Ceded	$ (5)	$ (5)	$ (15)	$ (15)

Reinsurance - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($)
Reinsurance
Reinsurance recoverables	$ 2,480
Scottish Re
Reinsurance
Reinsurance recoverables	$ 64

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pre- tax
Other comprehensive income (loss)	$ 200	$ (67)	$ 847	$ (355)
Tax
Other comprehensive income (loss)	(42)	14	(178)	75
After- tax
Other comprehensive income (loss), after-tax	158	(53)	669	(280)
Accumulated Net Investment Gain (Loss)
Pre- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	216	(64)	863	(379)
Less: reclassification adjustment of realized capital gains and losses	17	(8)	11	(24)
Other comprehensive income (loss)	199	(56)	852	(355)
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(46)	14	(181)	80
Less: reclassification adjustment of realized capital gains and losses	(4)	2	(2)	5
Other comprehensive income (loss)	(42)	12	(179)	75
After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	170	(50)	682	(299)
Less: reclassification adjustment of realized capital gains and losses	13	(6)	9	(19)
Other comprehensive income (loss), after-tax	157	(44)	673	(280)
Accumulated Foreign Currency Adjustment
Pre- tax
Other comprehensive income (loss)	1	(11)	(5)	0
Tax
Other comprehensive income (loss)	0	2	1	0
After- tax
Other comprehensive income (loss), after-tax	$ 1	$ (9)	$ (4)	$ 0

Label	Element	Value
AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 0
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (238,000,000)

Derivative Financial Instruments - Impacts on Operations and AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ (2)	$ 17	$ 12	$ 54
Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	4	16	8
Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1)	2	2	7
Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(9)	11	(6)	39
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1		1
Interest rate contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1		1
Interest rate contracts \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0		0
Interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0		0
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	16	45	22
Equity and index contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	(2)	2	(2)
Equity and index contracts \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Equity and index contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	18	43	24
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(13)	(5)	(47)	22
Embedded derivative financial instruments \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Embedded derivative financial instruments \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1)	2	2	7
Embedded derivative financial instruments \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(12)	(7)	(49)	15
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	4	11	8
Foreign currency contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	4	11	8
Foreign currency contracts \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Foreign currency contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Total return swap agreements - fixed income
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		1
Total return swap agreements - fixed income \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		1
Total return swap agreements - fixed income \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		0
Total return swap agreements - fixed income \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		0
Total return swaps - equity index
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		2
Total return swaps - equity index \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		2
Total return swaps - equity index \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		0
Total return swaps - equity index \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 0		$ 0
Total return swaps
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1		1
Total return swaps \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1		1
Total return swaps \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0		0
Total return swaps \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		$ 0		$ 0