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These terms and conditions govern your use of the website alphaminr.com and its related services.
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ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New Jersey
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22-3703799
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification Number)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, Par Value $.01
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 1C.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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ITEM 1.
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BUSINESS
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•
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On July 1, 2013, we sold our wealth management solutions business to Envestnet, Inc. We will continue to have an ongoing relationship with these operations until the contractual terms of the sale are fulfilled.
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In 2008, we announced our intention to exit our financial advisory business, which consisted of our investment in a retail securities brokerage and clearing operations joint venture which was sold on December 31, 2009. Certain expenses relating to the businesses we originally contributed to the joint venture were retained, primarily for litigation and regulatory matters.
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In 2003, we sold our property and casualty insurance companies to Liberty Mutual Group (“Liberty Mutual”). We have reinsured Liberty Mutual for adverse loss development for specific property and casualty risks that they did not want to retain. We believe that we have adequately reserved for our remaining property and casualty obligations under these reinsurance contracts based on the current information available.
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We have not actively engaged in the assumed life reinsurance market in the United States since the early 1990s; however, we remain subject to mortality risk for certain assumed individual life insurance policies under the terms of the reinsurance treaties. We establish reserves in accordance with U.S. GAAP for future policyholder benefits and expenses.
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•
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the FRB and the FDIC jointly decide that the Company or a subsidiary of the Company shall be subject to the requirements or restrictions described above,
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the Company has failed to submit a resolution plan that adequately addresses the deficiencies identified by the FRB and FDIC for the two year period following the imposition of such requirements or restrictions, and
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the FRB and FDIC jointly determine that the divestiture of such assets or operations is necessary to facilitate an orderly resolution of the Company in the event that the Company was to fail.
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Dodd-Frank requires the FRB to promulgate regulations that would prohibit Designated Financial Companies from having a credit exposure to any unaffiliated company in excess of 25% of the Designated Financial Company’s capital stock and surplus.
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As a Designated Financial Company, we must seek pre-approval from the FRB for the acquisition of specified interests in certain companies engaged in financial activities.
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The Council may recommend that state insurance regulators or other regulators apply new or heightened standards and safeguards for activities or practices we and other insurers or other financial services companies engage in.
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As a Designated Financial Company, we could be subject to additional capital requirements for, and other restrictions on, proprietary trading and sponsorship of, and investment in, hedge, private equity and other covered funds.
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require notice to affected individuals, regulators and others if there is a breach of the security of certain personal information;
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require financial institutions and creditors to implement effective programs to detect, prevent, and mitigate identity theft;
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regulate the process by which financial institutions make telemarketing calls and send e-mail or fax messages to consumers and customers; and
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prescribe the permissible uses of certain personal information, including customer information and consumer report information.
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ITEM 1A.
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RISK FACTORS
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The profitability of many of our insurance and annuity products depends in part on the value of the separate accounts supporting these products, which can fluctuate substantially depending on the foregoing conditions.
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Market conditions resulting in reductions in the value of assets we manage or lower transaction volume have an adverse effect on the revenues and profitability of our asset management business, which depends on fees related primarily to the value of assets under management or transaction volume, and could decrease the value of our strategic investments.
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A change in market conditions, such as high inflation and high interest rates, could cause a change in consumer sentiment and behavior adversely affecting sales and persistency of our savings and protection products. Conversely, low inflation and low interest rates could cause persistency of these products to vary from that anticipated and adversely affect profitability (as further described below). Similarly, changing economic conditions and unfavorable public perception of financial institutions can influence customer behavior, including increasing claims or surrenders in certain product lines.
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Sales of our investment-based and asset management products and services may decline, and lapses and surrenders of certain insurance products and withdrawals of assets from investment products may increase if a market downturn, increased market volatility or other market conditions result in customers becoming dissatisfied with their investments or products.
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A market decline could further result in guaranteed minimum benefits contained in many of our variable annuity products being higher than current account values or our pricing assumptions would support, requiring us to materially increase reserves for such products, and may cause customers to retain contracts in force in order to benefit from the guarantees, thereby increasing their cost to us. Any increased cost may or may not be offset by the favorable impact of greater persistency from prolonged fee streams. Our valuation of the liabilities for the minimum benefits contained in many of our variable annuity products requires us to consider the market perception of our risk of non-performance, and a decrease in our own credit spreads resulting from ratings upgrades or other events or market conditions could cause the recorded value of these liabilities to increase, which in turn could adversely affect our results of operations and financial position.
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Market conditions determine the availability and cost of the reinsurance protection we purchase. Accordingly, we may be forced to incur additional expenses for reinsurance or may not be able to obtain sufficient reinsurance on acceptable terms which could adversely affect the profitability of future business or our willingness to write future business.
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Derivative instruments we hold to hedge and manage foreign exchange risk, interest rate and equity risks associated with our products and businesses, and other risks might not perform as intended or expected resulting in higher realized losses and unforeseen stresses on liquidity. Market conditions can limit availability of hedging instruments, require us to post additional collateral, and also further increase the cost of executing product related hedges and such costs may not be recovered in the pricing of the underlying products being hedged. Our derivative-based hedging strategies also rely on the performance of counterparties to such derivatives. These counterparties may fail to perform for various reasons resulting in losses on uncollateralized positions.
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We have significant investment and derivative portfolios, including but not limited to corporate and asset-backed securities, foreign government securities (primarily those of the Japanese government), equities and commercial real estate. Economic conditions as well as adverse capital market conditions, including a lack of buyers in the marketplace, volatility, credit spread changes, benchmark interest rate changes, changes in foreign currency exchange rates and declines in value of underlying collateral may impact the credit quality, liquidity and value of our investments and derivatives, potentially resulting in higher capital charges and unrealized or realized losses. Valuations may include assumptions or estimates that may have significant period to period changes which could have a material adverse effect on our results of operations or financial condition.
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Opportunities for investment of available funds at appropriate returns may be limited, including due to the current low interest rate environment, a diminished securitization market or other factors, with possible negative impacts on our overall results. Limited opportunities for attractive investments may lead to holding cash for long periods of time and increased use of derivatives for duration management and other portfolio management purposes. The increased use of derivatives may increase the volatility of our U.S. GAAP results and our statutory capital.
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Regardless of market conditions, certain investments we hold, including private bonds, commercial mortgages and alternative asset classes (such as private equity, hedge funds and real estate) are relatively illiquid. If we needed to sell these investments, we may have difficulty doing so in a timely manner at a price that we could otherwise realize.
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Certain features of our products and components of investment strategies depend on active and liquid markets, and, if market liquidity is strained or the capacity of the financial markets to absorb our transactions is inadequate, these products may not perform as intended.
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Fluctuations in our operating results as well as realized gains and losses on our investment and derivative portfolios may impact the Company’s tax profile and its ability to optimally utilize tax attributes.
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Disruptions in individual market sectors within our investment portfolio could result in significant realized and unrealized losses. For example, during 2015 the energy sector and extractive enterprises, which are historically cyclical, experienced significant drops in prices, resulting in increased impairments and unrealized losses in these parts of our investment portfolio. If energy and other commodity prices remain low for an extended period, we could experience additional losses.
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Some of our products expose us to the risk that changes in interest rates will reduce the spread between the amounts that we are required to pay under the contracts and the rate of return we are able to earn on our general account investments supporting the contracts. When interest rates decline or remain low, as they have in recent years, we have to reinvest in lower-yielding instruments, potentially reducing net investment income. Since many of our policies and contracts have guaranteed minimum interest crediting rates or limit the resetting of interest rates, the spreads could decrease and potentially become negative, or go further negative. When interest rates rise, we may not be able to replace the assets in our general account as quickly with the higher-yielding assets needed to fund the higher crediting rates necessary to keep these products and contracts competitive. In addition, rising interest rates could cause a decline in the market value of fixed income assets the Company manages which in turn could result in lower asset management fees earned.
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Changes in interest rates can also result in potential losses in our investment activities in which we borrow funds and purchase investments to earn additional spread income on the borrowed funds.
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When interest rates rise, policy loans and surrenders and withdrawals of life insurance policies and annuity contracts may increase as policyholders seek to buy products with perceived higher returns, requiring us to sell investment assets potentially resulting in realized investment losses, or requiring us to accelerate the amortization of deferred acquisition costs (“DAC”), deferred sales inducements (“DSI”) or value of business acquired (“VOBA”). In addition, increasing interest rates could cause capital strain due to lower solvency margin levels of our Japanese insurance subsidiaries because the carrying value of bonds classified as available-for-sale would decline while the carrying value of liabilities would generally remain unchanged. Also, an increase in interest rates accompanied by unexpected extensions of certain lower-yielding investments could reduce our profitability.
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Changes in interest rates could subject us to increased collateral posting requirements related to hedging activities associated with some of our products.
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Changes in interest rates could require us to contribute capital to subsidiaries to support our annuities business, which occurred during 2015.
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Changes in interest rates coupled with greater than expected client withdrawals for certain products can result in increased costs associated with our guarantees.
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Changes in interest rates could increase our costs of financing.
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Our mitigation efforts with respect to interest rate risk are primarily focused on maintaining an investment portfolio with diversified maturities that has a key rate duration profile that is approximately equal to the key rate duration profile of our estimated liability cash flow profile; however, this estimate of the liability cash flow profile is complex and could turn out to be inaccurate, especially when markets are volatile. In addition, there are practical and capital market limitations on our ability to accomplish this matching. Due to these and other factors we may need to liquidate investments prior to maturity at a loss in order to satisfy liabilities or be forced to reinvest funds in a lower rate environment. Although we take measures to manage the economic risks of investing in a changing interest rate environment, we may not be able to effectively mitigate, and we may sometimes choose based on economic considerations and other factors not to fully mitigate, the interest rate risk of our assets relative to our liabilities.
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For certain of our products, a delay between the time we make changes in interest rate and other assumptions used for product pricing and the time we are able to reflect these assumptions in products available-for-sale could negatively impact the long-term profitability of products sold during the intervening period.
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As a Designated Financial Company, Prudential Financial is now subject to supervision and examination by the FRB and to stricter prudential standards, which include or will include requirements and limitations (many of which are the subject of ongoing rule-making) relating to capital, leverage, liquidity, stress-testing, overall risk management, credit exposure reporting, early remediation, managing interlocks, credit concentration, and resolution and recovery planning. If the FRB and the FDIC jointly determine that our resolution plan is deficient, they may impose more stringent capital, leverage, or liquidity requirements, or restrictions on our growth, activities, or operations. Any continuing failure to adequately remedy the deficiencies could result in the FRB and the FDIC jointly, in consultation with the Council, ordering divestiture of certain operations or assets. In addition, failure to meet defined measures of financial condition could result in substantial restrictions on our business and capital distributions. We will also be subject to stress tests to be promulgated by the FRB which could cause us to alter our business practices or affect the perceptions of regulators, rating agencies, customers, counterparties or investors of our financial strength. We cannot predict the requirements of the regulations not yet adopted or how the FRB will apply these prudential standards to us. As a Designated Financial Company, Prudential Financial must also seek pre-approval from the FRB for acquisition of certain companies engaged in financial activities.
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As a Designated Financial Company, we could also be subject to additional capital requirements for, and other restrictions on, proprietary trading and sponsorship of, and investment in, hedge, private equity and other covered funds.
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The Council could recommend new or heightened standards and safeguards for activities or practices in which we and other financial services companies engage. We cannot predict whether any such recommendations will be made or their effect on our business, results of operations, cash flows or financial condition.
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Dodd-Frank created a new framework for regulation of the OTC derivatives markets which could impact various activities of PGF, Prudential Financial and our insurance subsidiaries, which use derivatives for various purposes (including hedging interest rate, foreign currency and equity market exposures). While many of the regulations required to be promulgated under Dodd-Frank or internationally with respect to derivatives markets have been adopted by the applicable regulatory agencies, the regulations that remain to be adopted or that have not been fully implemented could substantially increase the cost of hedging and related operations, affect the profitability of our products or their attractiveness to our clients or cause us to alter our hedging strategy or implementation thereof or increase and/or change the composition of the risks we do not hedge. In particular, we continue to monitor increased capital requirements for derivatives transactions that may be imposed on banks that are our counterparties.
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Title II of Dodd-Frank provides that a financial company such as Prudential Financial may be subject to a special orderly liquidation process outside the federal bankruptcy code, administered by the FDIC as receiver, upon a determination that the Company is in default or in danger of default and presents a systemic risk to U.S. financial stability, and our U.S. insurance subsidiaries would be subject to rehabilitation and liquidation proceedings under state insurance law. We cannot predict how creditors of Prudential Financial or its insurance and non-insurance subsidiaries, including the holders of Prudential Financial debt, will evaluate this potential or whether it will impact our financing or hedging costs.
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Prudential Advisors:
We expect compliance with a new “best interest contract exemption” may be required for IRA and small plan retirement accounts for a wide range of products, representing a significant part of Prudential Advisors’ total business. This would impose compliance and contract requirements and would give customers a private right of action for breach of contract if an advisor provides advice that is not in the customer’s best interest. We expect this would result in additional costs, oversight and litigation risks, as well as changes to compensation and benefit structures and may require us to review product offerings to ensure a sufficient variety of non-proprietary options.
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Annuities:
Certain distributors may restrict the sale of annuities, and may remove themselves as broker of record, transitioning servicing and compliance back to Prudential. In addition, we may need to alter our product design to comply with the new rules. We may also need to monitor wholesaling and other sales support activities so as not to be considered fiduciary advice, which would subject those activities to greater liability exposure.
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Asset Management:
Distribution partners may have specific product and pricing needs, and may request tailoring product offerings or pricing to support compliance with a new standard. This business may also require monitoring of wholesaling and other sales support activities so that these activities would not be considered fiduciary advice, which would subject those activities to greater liability exposure.
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Retirement:
Asset allocation tools included in our product offerings, when mapped to specific investments, may fall within the definition of acting as a fiduciary and could need to be altered or discontinued in order to minimize potential liability. IRA offerings and asset retention and consolidation activities may need to comply with a new best interest contract exemption, referred to above. In addition, changes to the relationship with sponsors and intermediaries for small business plans (fewer than 100 lives) would be required to avoid assuming a fiduciary role and the associated potential liability.
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Catastrophic loss of life due to natural or man-made disasters could cause us to pay benefits at higher levels and/or materially earlier than anticipated and could lead to unexpected changes in persistency rates.
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A man-made or natural disaster, such as an earthquake in Japan, could result in disruptions in our operations, losses in our investment portfolio or the failure of our counterparties to perform, or cause significant volatility in global financial markets.
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A terrorist attack affecting financial institutions in the U. S. or elsewhere could negatively impact the financial services industry in general and our business operations, investment portfolio and profitability in particular.
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Pandemic disease could have a severe adverse effect on Prudential Financial’s business. The potential impact of such a pandemic on Prudential Financial’s results of operations and financial position is highly speculative, and would depend on numerous factors, including: the effectiveness of vaccines and the rate of contagion; the regions of the world most affected; the effectiveness of treatment for the infected population; the rates of mortality and morbidity among various segments of the insured population; the collectability of reinsurance; the possible macroeconomic effects of a pandemic on our asset portfolio; the effect on lapses and surrenders of existing policies, as well as sales of new policies; and many other variables.
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ITEM 1B.
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UNRESOLVED STAFF COMMENTS
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ITEM 1C.
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EXECUTIVE OFFICERS OF THE REGISTRANT
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Name
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Age
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Title
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Other Public Directorships
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John R. Strangfeld, Jr.
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62
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Chairman, Chief Executive Officer and President
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None
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Mark B. Grier
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63
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Vice Chairman
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None
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Robert M. Falzon
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56
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Executive Vice President and Chief Financial Officer
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None
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Timothy P. Harris
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55
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Executive Vice President and General Counsel
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None
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Charles F. Lowrey
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58
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Executive Vice President and Chief Operating Officer, International Businesses
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None
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Stephen Pelletier
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62
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Executive Vice President and Chief Operating Officer, U.S. Businesses
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None
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Barbara G. Koster
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61
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Senior Vice President and Chief Information Officer
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None
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Richard F. Lambert
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59
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Senior Vice President and Chief Actuary
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None
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Nicholas C. Silitch
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54
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Senior Vice President and Chief Risk Officer
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None
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Scott G. Sleyster
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56
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Senior Vice President and Chief Investment Officer
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None
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Sharon C. Taylor
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61
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Senior Vice President, Human Resources
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New Jersey Resources
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ITEM 2.
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PROPERTIES
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ITEM 3.
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LEGAL PROCEEDINGS
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ITEM 4.
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MINE SAFETY DISCLOSURES
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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High
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Low
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Dividends
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2015:
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Fourth Quarter
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$
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87.69
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$
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75.40
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$
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0.70
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Third Quarter
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$
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91.68
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$
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74.22
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$
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0.58
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Second Quarter
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$
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91.47
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$
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79.13
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$
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0.58
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First Quarter
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$
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90.11
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$
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75.32
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$
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0.58
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2014:
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Fourth Quarter
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$
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91.67
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$
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77.86
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$
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0.58
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Third Quarter
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$
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93.16
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$
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85.75
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$
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0.53
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Second Quarter
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$
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91.10
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$
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77.61
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$
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0.53
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First Quarter
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$
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91.23
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$
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80.45
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$
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0.53
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Period
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Total Number of
Shares
Purchased(1)
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Average
Price Paid
per Share
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Number of Shares
Purchased as Part of
Publicly Announced
Programs(2)(3)
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Approximate Dollar
Value of Shares that
May Yet be Purchased
under the
Programs(2)(3)
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October 1, 2015 through October 31, 2015
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1,056,372
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$
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79.04
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1,054,269
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November 1, 2015 through November 30, 2015
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16,660
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$
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84.29
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0
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December 1, 2015 through December 31, 2015
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2,041,937
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$
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81.68
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2,040,520
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Total
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3,114,969
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$
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80.80
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3,094,789
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$
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1,500,000,000
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(1)
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Includes shares of Common Stock withheld from participants for income tax withholding purposes whose shares of restricted stock units vested during the period. Such restricted stock units were originally issued to participants pursuant to the Prudential Financial, Inc. Omnibus Incentive Plan that was adopted by the Company’s Board of Directors in March 2003 (as subsequently amended and restated).
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(2)
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In June 2015, the Board authorized the Company to repurchase up to $1.0 billion of its outstanding Common Stock during the twelve month period from July 1, 2015 through June 30, 2016.
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(3)
|
In December 2015, Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.5 billion of its outstanding Common Stock from January 1, 2016 through December 31, 2016. Effective January 1, 2016, this authorization superseded the Company’s $1.0 billion share repurchase authorization that was announced in June 2015, covering the period from July 1, 2015 through June 30, 2016.
|
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
|
|
(in millions, except per share and ratio information)
|
||||||||||||||||||
|
Income Statement Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Premiums
|
$
|
28,521
|
|
|
$
|
29,293
|
|
|
$
|
26,237
|
|
|
$
|
65,354
|
|
|
$
|
24,301
|
|
|
Policy charges and fee income
|
5,972
|
|
|
6,179
|
|
|
5,415
|
|
|
4,489
|
|
|
3,924
|
|
|||||
|
Net investment income
|
14,829
|
|
|
15,256
|
|
|
14,729
|
|
|
13,661
|
|
|
13,124
|
|
|||||
|
Asset management and service fees
|
3,772
|
|
|
3,719
|
|
|
3,485
|
|
|
3,053
|
|
|
2,897
|
|
|||||
|
Other income
|
0
|
|
|
(1,978
|
)
|
|
(3,199
|
)
|
|
(269
|
)
|
|
2,008
|
|
|||||
|
Realized investment gains (losses), net
|
4,025
|
|
|
1,636
|
|
|
(5,206
|
)
|
|
(1,441
|
)
|
|
2,831
|
|
|||||
|
Total revenues
|
57,119
|
|
|
54,105
|
|
|
41,461
|
|
|
84,847
|
|
|
49,085
|
|
|||||
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Policyholders’ benefits
|
30,627
|
|
|
31,587
|
|
|
26,733
|
|
|
65,131
|
|
|
23,614
|
|
|||||
|
Interest credited to policyholders’ account balances
|
3,479
|
|
|
4,263
|
|
|
3,111
|
|
|
4,234
|
|
|
4,484
|
|
|||||
|
Dividends to policyholders
|
2,212
|
|
|
2,716
|
|
|
2,050
|
|
|
2,176
|
|
|
2,723
|
|
|||||
|
Amortization of deferred policy acquisition costs
|
2,120
|
|
|
1,973
|
|
|
240
|
|
|
1,504
|
|
|
2,695
|
|
|||||
|
General and administrative expenses
|
10,912
|
|
|
11,807
|
|
|
11,011
|
|
|
11,094
|
|
|
10,605
|
|
|||||
|
Total benefits and expenses
|
49,350
|
|
|
52,346
|
|
|
43,145
|
|
|
84,139
|
|
|
44,121
|
|
|||||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
7,769
|
|
|
1,759
|
|
|
(1,684
|
)
|
|
708
|
|
|
4,964
|
|
|||||
|
Income tax expense (benefit)
|
2,072
|
|
|
349
|
|
|
(1,058
|
)
|
|
213
|
|
|
1,515
|
|
|||||
|
Income (loss) from continuing operations before equity in earnings of operating joint ventures
|
5,697
|
|
|
1,410
|
|
|
(626
|
)
|
|
495
|
|
|
3,449
|
|
|||||
|
Equity in earnings of operating joint ventures, net of taxes
|
15
|
|
|
16
|
|
|
59
|
|
|
60
|
|
|
182
|
|
|||||
|
Income (loss) from continuing operations
|
5,712
|
|
|
1,426
|
|
|
(567
|
)
|
|
555
|
|
|
3,631
|
|
|||||
|
Income (loss) from discontinued operations, net of taxes
|
0
|
|
|
12
|
|
|
7
|
|
|
15
|
|
|
35
|
|
|||||
|
Net income (loss)
|
5,712
|
|
|
1,438
|
|
|
(560
|
)
|
|
570
|
|
|
3,666
|
|
|||||
|
Less: Income (loss) attributable to noncontrolling interests
|
70
|
|
|
57
|
|
|
107
|
|
|
50
|
|
|
34
|
|
|||||
|
Net Income (loss) attributable to Prudential Financial, Inc.
|
$
|
5,642
|
|
|
$
|
1,381
|
|
|
$
|
(667
|
)
|
|
$
|
520
|
|
|
$
|
3,632
|
|
|
EARNINGS PER SHARE(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic earnings per share—Common Stock:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
$
|
12.37
|
|
|
$
|
3.23
|
|
|
$
|
(1.57
|
)
|
|
$
|
1.02
|
|
|
$
|
7.14
|
|
|
Income (loss) from discontinued operations, net of taxes
|
0.00
|
|
|
0.02
|
|
|
0.02
|
|
|
0.04
|
|
|
0.07
|
|
|||||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
$
|
12.37
|
|
|
$
|
3.25
|
|
|
$
|
(1.55
|
)
|
|
$
|
1.06
|
|
|
$
|
7.21
|
|
|
Diluted earnings per share—Common Stock:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
$
|
12.17
|
|
|
$
|
3.20
|
|
|
$
|
(1.57
|
)
|
|
$
|
1.01
|
|
|
$
|
7.05
|
|
|
Income (loss) from discontinued operations, net of taxes
|
0.00
|
|
|
0.03
|
|
|
0.02
|
|
|
0.04
|
|
|
0.07
|
|
|||||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
$
|
12.17
|
|
|
$
|
3.23
|
|
|
$
|
(1.55
|
)
|
|
$
|
1.05
|
|
|
$
|
7.12
|
|
|
Dividends declared per share—Common Stock
|
$
|
2.44
|
|
|
$
|
2.17
|
|
|
$
|
1.73
|
|
|
$
|
1.60
|
|
|
$
|
1.45
|
|
|
Ratio of earnings to fixed charges(2)
|
2.64
|
|
|
1.25
|
|
|
0.00
|
|
|
1.11
|
|
|
1.83
|
|
|||||
|
|
As of December 31,
|
||||||||||||||||||
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total investments excluding policy loans
|
$
|
405,535
|
|
|
$
|
408,274
|
|
|
$
|
386,407
|
|
|
$
|
394,007
|
|
|
$
|
344,688
|
|
|
Separate account assets
|
285,570
|
|
|
296,435
|
|
|
285,060
|
|
|
253,254
|
|
|
218,380
|
|
|||||
|
Total assets
|
757,388
|
|
|
766,655
|
|
|
731,781
|
|
|
709,235
|
|
|
620,114
|
|
|||||
|
Future policy benefits and policyholders’ account balances
|
361,168
|
|
|
353,916
|
|
|
343,516
|
|
|
350,463
|
|
|
305,229
|
|
|||||
|
Separate account liabilities
|
285,570
|
|
|
296,435
|
|
|
285,060
|
|
|
253,254
|
|
|
218,380
|
|
|||||
|
Short-term debt
|
1,216
|
|
|
3,839
|
|
|
2,669
|
|
|
2,484
|
|
|
2,336
|
|
|||||
|
Long-term debt
|
19,727
|
|
|
19,831
|
|
|
23,553
|
|
|
24,729
|
|
|
24,622
|
|
|||||
|
Total liabilities
|
715,465
|
|
|
724,306
|
|
|
695,900
|
|
|
670,123
|
|
|
585,475
|
|
|||||
|
Prudential Financial, Inc. equity
|
41,890
|
|
|
41,770
|
|
|
35,278
|
|
|
38,503
|
|
|
34,130
|
|
|||||
|
Noncontrolling interests
|
33
|
|
|
579
|
|
|
603
|
|
|
609
|
|
|
509
|
|
|||||
|
Total equity
|
$
|
41,923
|
|
|
$
|
42,349
|
|
|
$
|
35,881
|
|
|
$
|
39,112
|
|
|
$
|
34,639
|
|
|
(1)
|
For 2015, represents consolidated earnings per share of Common Stock. For 2014, 2013, 2012 and 2011, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock.
|
|
(2)
|
For purposes of this computation, earnings are defined as income from continuing operations before income taxes excluding undistributed income (loss) from equity method investments, fixed charges and interest capitalized. Also excludes earnings attributable to noncontrolling interests. Fixed charges are the sum of gross interest expense, interest credited to policyholders’ account balances and an estimated interest component of rent expense. Due to the Company’s loss for the year ended December 31, 2013, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $1,935 million would have been required for the year ended December 31, 2013 to achieve a ratio of 1:1.
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
|
Account Values with Adjustable Crediting Rates Subject to Guaranteed Minimums:
|
||||||||||||||||||||||
|
|
|
At
guaranteed
minimum
|
|
1 - 49
bps above
guaranteed
minimum
|
|
50 - 99
bps above
guaranteed
minimum
|
|
100 - 150
bps above
guaranteed
minimum
|
|
Greater than
150
bps above
guaranteed
minimum
|
|
Total
|
||||||||||||
|
|
|
($ in billions)
|
||||||||||||||||||||||
|
Range of Guaranteed Minimum Crediting Rates:
|
|
|
||||||||||||||||||||||
|
Less than 1.00%
|
|
$
|
0.7
|
|
|
$
|
0.5
|
|
|
$
|
0.4
|
|
|
$
|
0.0
|
|
|
$
|
0.0
|
|
|
$
|
1.6
|
|
|
1.00% - 1.99%
|
|
1.5
|
|
|
9.0
|
|
|
5.8
|
|
|
0.9
|
|
|
0.1
|
|
|
17.3
|
|
||||||
|
2.00% - 2.99%
|
|
2.3
|
|
|
0.2
|
|
|
1.8
|
|
|
0.6
|
|
|
0.3
|
|
|
5.2
|
|
||||||
|
3.00% - 4.00%
|
|
26.2
|
|
|
0.8
|
|
|
0.2
|
|
|
0.2
|
|
|
0.0
|
|
|
27.4
|
|
||||||
|
Greater than 4.00%
|
|
0.8
|
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
0.8
|
|
||||||
|
Total
|
|
$
|
31.5
|
|
|
$
|
10.5
|
|
|
$
|
8.2
|
|
|
$
|
1.7
|
|
|
$
|
0.4
|
|
|
$
|
52.3
|
|
|
Percentage of total
|
|
60
|
%
|
|
20
|
%
|
|
16
|
%
|
|
3
|
%
|
|
1
|
%
|
|
100
|
%
|
||||||
|
•
|
U.S. Retirement and Investment Management Market.
We will continue to seek to capitalize on the growing need of baby boomers for products that provide guaranteed income for longer retirement periods, and to focus on our clients’ increasing needs for retirement income security. We will also seek to provide products that respond to the needs of plan sponsors to manage risk and control their benefit costs, while ensuring we maintain appropriate pricing and return expectations under changing market conditions. In addition, in 2016, we expect to recapture the risks related to our variable annuity living benefit riders that were previously reinsured to a captive reinsurance company, and begin managing all of the product risks associated with our variable annuities in our statutory insurance entities. We expect this recapture to reduce the capital volatility associated with our Individual Annuities business.
|
|
•
|
U.S. Insurance Market.
We will continue to focus on writing high-quality business and expect to continue to benefit from expansion of our distribution channels and deepening our relationships with third-party distributors. In our Individual Life business, we expect to continue to work with regulators on long-term solutions to finance new statutory reserve requirements for our term and universal life policies. We will also seek to capitalize on opportunities for additional voluntary life purchases in the group insurance market, as institutional clients are focused on controlling their benefit costs.
|
|
•
|
International Markets.
We will continue to concentrate on deepening our presence in the markets in which we currently operate, such as Japan, and expanding our distribution capabilities in emerging markets. We will also seek to capitalize on opportunities arising in international markets as changing demographics and public policy continue to contribute to a growing demand for retirement income products. In particular, in 2016, we expect to close on our acquisition of an indirect ownership interest in Administradora de Fondos de Pensiones Habitat S.A. (“AFP Habitat”), a leading provider of retirement services in Chile. We also plan to create a presence in Africa by investing in a private equity fund that will primarily invest in African life insurers over the next three to five years.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Adjusted operating income before income taxes:
|
|
|
|
|
|
|
||||||
|
Individual Annuities
|
|
$
|
1,797
|
|
|
$
|
1,467
|
|
|
$
|
2,085
|
|
|
Retirement
|
|
931
|
|
|
1,215
|
|
|
1,039
|
|
|||
|
Asset Management
|
|
779
|
|
|
785
|
|
|
723
|
|
|||
|
Total U.S. Retirement Solutions and Investment Management division
|
|
3,507
|
|
|
3,467
|
|
|
3,847
|
|
|||
|
Individual Life
|
|
635
|
|
|
498
|
|
|
583
|
|
|||
|
Group Insurance
|
|
176
|
|
|
23
|
|
|
157
|
|
|||
|
Total U.S. Individual Life and Group Insurance division
|
|
811
|
|
|
521
|
|
|
740
|
|
|||
|
International Insurance
|
|
3,226
|
|
|
3,252
|
|
|
3,152
|
|
|||
|
Total International Insurance division
|
|
3,226
|
|
|
3,252
|
|
|
3,152
|
|
|||
|
Corporate and Other operations
|
|
(1,313
|
)
|
|
(1,348
|
)
|
|
(1,370
|
)
|
|||
|
Total Corporate and Other
|
|
(1,313
|
)
|
|
(1,348
|
)
|
|
(1,370
|
)
|
|||
|
Adjusted operating income before income taxes
|
|
6,231
|
|
|
5,892
|
|
|
6,369
|
|
|||
|
Reconciling Items:
|
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net, and related adjustments(1)
|
|
2,258
|
|
|
(3,588
|
)
|
|
(9,956
|
)
|
|||
|
Charges related to realized investment gains (losses), net(2)
|
|
(679
|
)
|
|
(542
|
)
|
|
1,807
|
|
|||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net(3)
|
|
(524
|
)
|
|
339
|
|
|
(250
|
)
|
|||
|
Change in experience-rated contractholder liabilities due to asset value changes(4)
|
|
433
|
|
|
(294
|
)
|
|
227
|
|
|||
|
Divested businesses:
|
|
|
|
|
|
|
||||||
|
Closed Block division(5)
|
|
58
|
|
|
0
|
|
|
0
|
|
|||
|
Other divested businesses(6)
|
|
(66
|
)
|
|
167
|
|
|
29
|
|
|||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(7)
|
|
58
|
|
|
44
|
|
|
28
|
|
|||
|
Subtotal(8)
|
|
7,769
|
|
|
2,018
|
|
|
(1,746
|
)
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures for Closed Block Business(9)
|
|
0
|
|
|
(259
|
)
|
|
62
|
|
|||
|
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
7,769
|
|
|
$
|
1,759
|
|
|
$
|
(1,684
|
)
|
|
(1)
|
Represents “Realized investment gains (losses), net,” and related adjustments. See “—Realized Investment Gains (Losses)” and Note 22 to our Consolidated Financial Statements for additional information.
|
|
(2)
|
Includes charges that represent the impact of realized investment gains (losses), net, on the amortization of deferred policy acquisition costs and other costs, and on changes in reserves. Also includes charges resulting from payments related to market value adjustment features of certain of our annuity products and the impact of realized investment gains (losses), net, on the amortization of unearned revenue reserves.
|
|
(3)
|
Represents net investment gains (losses) on trading account assets supporting insurance liabilities. See “—Experience-Rated Contractholder Liabilities, Trading Account Assets Supporting Insurance Liabilities and Other Related Investments.”
|
|
(4)
|
Represents changes in contractholder liabilities due to asset value changes in the pool of investments supporting these experience-rated contracts. See “—Experience-Rated Contractholder Liabilities, Trading Account Assets Supporting Insurance Liabilities and Other Related Investments.”
|
|
(5)
|
As a result of the Class B Repurchase, for the year ended December 31, 2015, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations.
|
|
(6)
|
See “—Divested Businesses.”
|
|
(7)
|
Equity in earnings of operating joint ventures are included in adjusted operating income but excluded from income from continuing operations before income taxes and equity in earnings of operating joint ventures as they are reflected on a U.S. GAAP basis on an after-tax basis as a separate line in our Consolidated Statements of Operations. Earnings attributable to noncontrolling interests are excluded from adjusted operating income but included in income from continuing operations before taxes and equity earnings of operating joint ventures as they are reflected on a U.S. GAAP basis as a separate line in our Consolidated Statements of Operations. Earnings attributable to noncontrolling interests represent the portion of earnings from consolidated entities that relates to the equity interests of minority investors.
|
|
(8)
|
Amounts for the years ended December 31, 2014 and 2013 represent “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” of the Company’s former Financial Services Businesses, reflecting the existence of two classes of common stock and the separate reporting of the Financial Services Businesses and the Closed Block Business for each period.
|
|
(9)
|
Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the years ended December 31, 2014 and 2013.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Revenues
|
|
$
|
57,119
|
|
|
$
|
54,105
|
|
|
$
|
41,461
|
|
|
Benefits and expenses
|
|
49,350
|
|
|
52,346
|
|
|
43,145
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
7,769
|
|
|
1,759
|
|
|
(1,684
|
)
|
|||
|
Income tax expense (benefit)
|
|
2,072
|
|
|
349
|
|
|
(1,058
|
)
|
|||
|
Income (loss) from continuing operations before equity in earnings of operating joint ventures
|
|
5,697
|
|
|
1,410
|
|
|
(626
|
)
|
|||
|
Equity in earnings of operating joint ventures, net of taxes
|
|
15
|
|
|
16
|
|
|
59
|
|
|||
|
Income (loss) from continuing operations
|
|
5,712
|
|
|
1,426
|
|
|
(567
|
)
|
|||
|
Income (loss) from discontinued operations, net of taxes
|
|
0
|
|
|
12
|
|
|
7
|
|
|||
|
Net income (loss)
|
|
5,712
|
|
|
1,438
|
|
|
(560
|
)
|
|||
|
Less: Income attributable to noncontrolling interests
|
|
70
|
|
|
57
|
|
|
107
|
|
|||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
$
|
5,642
|
|
|
$
|
1,381
|
|
|
$
|
(667
|
)
|
|
•
|
$3,136 million higher net pre-tax earnings primarily resulting from the 2014 impact of foreign currency exchange rate movements on certain assets and liabilities within our Japanese insurance operations (see “—Results of Operations by Segment—International Insurance Division—Impact of foreign currency exchange rate movements on earnings—U.S. GAAP earnings impact of products denominated in non-local currencies” for additional information);
|
|
•
|
$3,041 million favorable variance, on a pre-tax basis, reflecting our decision to manage a portion of our interest rate risk through our Capital Protection Framework (see “—Results of Operations by Segment—Corporate and Other—Capital Protection Framework” for additional information);
|
|
•
|
$615 million favorable variance, on a pre-tax basis, reflecting the net impact from changes in the value of our embedded derivatives and related hedge positions associated with certain variable annuities (see “—Results of Operations by Segments—U.S. Retirement Solutions and Investment Management Division—Individual Annuities—Variable Annuity Hedging Program Results” for additional information); and
|
|
•
|
$558 million favorable variance, on a pre-tax basis, from adjustments to DAC and other costs as well as reserves, reflecting updates to the estimated profitability of our businesses, including the impact of our annual review and update of assumptions and other refinements performed in the second quarter of 2015 and the third quarter of 2014. This excludes the impact associated with the variable annuity hedging program discussed above (see “—Results of Operations by Segment—U.S. Retirement Solutions and Investment Management Division—Individual Annuities” for additional information).
|
|
•
|
$1,723 million unfavorable impact of higher tax expense reflecting higher pre-tax income in 2015 compared to 2014; and
|
|
•
|
$1,436 million lower net pre-tax realized gains (losses) for PFI excluding the Closed Block division, and also excluding the impact of the hedging program associated with certain variable annuities discussed above, primarily reflecting changes in the market value of derivatives (see “—Realized Investment Gains (Losses)” for additional information).
|
|
•
|
$5,443 million higher net pre-tax realized gains (losses) for the former Financial Services Businesses, excluding the impact of the hedging program associated with certain variable annuities discussed below, primarily reflecting changes in the market value of derivatives;
|
|
•
|
$4,313 million favorable variance, on a pre-tax basis, reflecting the net impact from changes in the value of our embedded derivatives and related hedge positions associated with certain variable annuities; and
|
|
•
|
$889 million higher net pre-tax earnings primarily resulting from the impact of foreign currency exchange rate movements on certain assets and liabilities within our Japanese insurance operations.
|
|
•
|
$5,765 million unfavorable variance, on a pre-tax basis, reflecting our decision to manage a portion of our interest rate risk through our Capital Protection Framework;
|
|
•
|
$1,529 million unfavorable impact reflecting tax expense in 2014 compared to a tax benefit in 2013, largely driven by pre-tax income in 2014 compared to a loss in 2013; and
|
|
•
|
$1,047 million unfavorable variance, on a pre-tax basis, from adjustments to DAC and other costs as well as reserves, reflecting updates to the estimated profitability of our businesses. This excludes the impact associated with the variable annuity hedging program discussed above.
|
|
|
December 31, 2015
|
||
|
|
Increase/(Decrease) in DAC
|
||
|
|
(in millions)
|
||
|
Decrease in future mortality by 1%
|
$
|
38
|
|
|
Increase in future mortality by 1%
|
$
|
(38
|
)
|
|
|
|
December 31, 2015
|
||||||
|
|
|
Increase/
(Decrease) in DAC
|
|
Increase/
(Decrease) in DSI
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Decrease in future rate of return by 100 bps
|
|
$
|
(196
|
)
|
|
$
|
(76
|
)
|
|
Increase in future rate of return by 100 bps
|
|
$
|
169
|
|
|
$
|
70
|
|
|
|
December 31, 2015
|
||
|
|
Increase/(Decrease) in VOBA
|
||
|
|
(in millions)
|
||
|
Decrease in future mortality by 1%
|
$
|
9
|
|
|
Increase in future mortality by 1%
|
$
|
(10
|
)
|
|
•
|
Valuation of investments, including derivatives;
|
|
•
|
Recognition of other-than-temporary impairments (“OTTI”); and
|
|
•
|
Determination of the valuation allowance for losses on commercial mortgage and other loans.
|
|
•
|
For most long-duration contracts, we utilize best estimate assumptions as of the date the policy is issued or acquired with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, we perform premium deficiency tests using best estimate assumptions as of the testing date without provisions for adverse deviation. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves net of any DAC, DSI or VOBA asset), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, we then increase the net reserves by the excess, again through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the premium deficiency test date are locked in and used in subsequent valuations.
|
|
•
|
For certain reserves, such as our contracts with guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”) and no-lapse guarantees, we utilize current best estimate assumptions in establishing reserves. The reserves are subject to adjustments based on annual reviews of assumptions and quarterly adjustments for experience, including market performance, and the reserves may be adjusted through a benefit or charge to current period earnings.
|
|
•
|
For certain product guarantees, primarily certain living benefit features of the variable annuity products in our Individual Annuities segment, the benefits are accounted for as embedded derivatives, with fair values calculated as the present value of expected future benefit payments to contractholders less the present value of assessed rider fees attributable to the embedded derivative feature. Under U.S. GAAP, the fair values of these benefit features are based on assumptions a market participant would use in valuing these embedded derivatives. Changes in the fair value of the embedded derivatives are recorded quarterly through a benefit or charge to current period earnings.
|
|
|
December 31, 2015
|
||
|
|
Increase/(Decrease) in
GMDB/GMIB Reserves
|
||
|
|
(in millions)
|
||
|
Decrease in future rate of return by 100 bps
|
$
|
189
|
|
|
Increase in future rate of return by 100 bps
|
$
|
(140
|
)
|
|
|
December 31, 2015
|
||
|
|
Increase/(Decrease) in URR
|
||
|
|
(in millions)
|
||
|
Decrease in future mortality by 1%
|
$
|
37
|
|
|
Increase in future mortality by 1%
|
$
|
(38
|
)
|
|
|
|
For the year ended December 31, 2015
|
||||||
|
|
|
Increase/(Decrease) in Net
Periodic Pension Cost
|
|
Increase/(Decrease) in Net
Periodic Other Postretirement
Cost
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Increase in expected rate of return by 100 bps
|
|
$
|
(121
|
)
|
|
$
|
(16
|
)
|
|
Decrease in expected rate of return by 100 bps
|
|
$
|
121
|
|
|
$
|
16
|
|
|
|
|
For the year ended December 31, 2015
|
||||||
|
|
|
Increase/(Decrease) in Net
Periodic Pension Cost
|
|
Increase/(Decrease) in Net
Periodic Other Postretirement
Cost
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Increase in discount rate by 100 bps
|
|
$
|
(98
|
)
|
|
$
|
(6
|
)
|
|
Decrease in discount rate by 100 bps
|
|
$
|
142
|
|
|
$
|
4
|
|
|
|
|
December 31, 2015
|
||||||
|
|
|
Increase/(Decrease) in
Pension Benefits Obligation
|
|
Increase/(Decrease) in
Accumulated Postretirement
Benefits Obligation
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Increase in discount rate by 100 bps
|
|
$
|
(1,310
|
)
|
|
$
|
(186
|
)
|
|
Decrease in discount rate by 100 bps
|
|
$
|
1,568
|
|
|
$
|
204
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Total Individual Annuities(1):
|
|
|
|
|
|
|
||||||
|
Beginning total account value
|
|
$
|
158,664
|
|
|
$
|
154,140
|
|
|
$
|
135,342
|
|
|
Sales
|
|
8,780
|
|
|
10,008
|
|
|
11,513
|
|
|||
|
Surrenders and withdrawals
|
|
(8,415
|
)
|
|
(8,852
|
)
|
|
(7,727
|
)
|
|||
|
Net sales
|
|
365
|
|
|
1,156
|
|
|
3,786
|
|
|||
|
Benefit payments
|
|
(1,910
|
)
|
|
(1,799
|
)
|
|
(1,617
|
)
|
|||
|
Net flows
|
|
(1,545
|
)
|
|
(643
|
)
|
|
2,169
|
|
|||
|
Change in market value, interest credited and other activity
|
|
(585
|
)
|
|
8,666
|
|
|
19,826
|
|
|||
|
Policy charges
|
|
(3,589
|
)
|
|
(3,499
|
)
|
|
(3,197
|
)
|
|||
|
Ending total account value
|
|
$
|
152,945
|
|
|
$
|
158,664
|
|
|
$
|
154,140
|
|
|
(1)
|
Includes variable and fixed annuities sold as retail investment products. Investments sold through defined contribution plan products are included with such products within the Retirement segment. Variable annuity account values were $149.4 billion, $155.1 billion and $150.4 billion as of December 31,
2015
,
2014
and
2013
, respectively. Fixed annuity account values were $3.5 billion, $3.6 billion and $3.7 billion as of December 31,
2015
,
2014
and
2013
, respectively.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Revenues
|
|
$
|
4,695
|
|
|
$
|
4,710
|
|
|
$
|
4,465
|
|
|
Benefits and expenses
|
|
2,898
|
|
|
3,243
|
|
|
2,380
|
|
|||
|
Adjusted operating income
|
|
1,797
|
|
|
1,467
|
|
|
2,085
|
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
1,588
|
|
|
521
|
|
|
(5,918
|
)
|
|||
|
Related charges
|
|
(624
|
)
|
|
(137
|
)
|
|
1,716
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
2,761
|
|
|
$
|
1,851
|
|
|
$
|
(2,117
|
)
|
|
|
|
December 31,
|
|||||||||||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
|
|
|
Account
Value
|
|
% of
Total
|
|
Account
Value
|
|
% of
Total
|
|
Account
Value
|
|
% of
Total
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
(in millions)
|
|||||||||||||||||||
|
Living benefit/GMDB features(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Both hedging program and automatic rebalancing(2)
|
|
$
|
106,018
|
|
|
71
|
%
|
|
$
|
110,953
|
|
|
72
|
%
|
|
$
|
105,630
|
|
|
71
|
%
|
|
Hedging program only
|
|
9,994
|
|
|
7
|
%
|
|
11,395
|
|
|
7
|
%
|
|
12,229
|
|
|
8
|
%
|
|||
|
Automatic rebalancing only
|
|
1,393
|
|
|
1
|
%
|
|
1,771
|
|
|
1
|
%
|
|
2,280
|
|
|
2
|
%
|
|||
|
External reinsurance(3)
|
|
1,513
|
|
|
1
|
%
|
|
0
|
|
|
0
|
%
|
|
0
|
|
|
0
|
%
|
|||
|
PDI
|
|
4,664
|
|
|
3
|
%
|
|
2,777
|
|
|
2
|
%
|
|
793
|
|
|
0
|
%
|
|||
|
Other Products
|
|
2,870
|
|
|
2
|
%
|
|
3,324
|
|
|
2
|
%
|
|
3,666
|
|
|
3
|
%
|
|||
|
Total living benefit/GMDB features
|
|
$
|
126,452
|
|
|
|
|
$
|
130,220
|
|
|
|
|
$
|
124,598
|
|
|
|
|||
|
GMDB features and other(4):
|
|
22,989
|
|
|
15
|
%
|
|
24,863
|
|
|
16
|
%
|
|
25,869
|
|
|
16
|
%
|
|||
|
Total variable annuity account value
|
|
$
|
149,441
|
|
|
|
|
$
|
155,083
|
|
|
|
|
$
|
150,467
|
|
|
|
|||
|
(1)
|
All contracts with living benefit guarantees also contain GMDB features, covering the same insured contract.
|
|
(2)
|
Contracts with living benefits that are included in our hedging program, and have an automatic rebalancing feature.
|
|
(3)
|
Represents contracts subject to reinsurance transaction with external counterparty effective April 1, 2015. These contracts with living benefits also have an automatic rebalancing feature.
|
|
(4)
|
Includes contracts that have a GMDB feature and do not have an automatic rebalancing feature.
|
|
•
|
The impact of NPR is excluded to maximize protection against the entire projected claim irrespective of the possibility of our own default.
|
|
•
|
The assumptions used in the projection of customer account values for fixed income and equity funds and the discounted net living benefits (claims less fees) are adjusted to reflect returns in excess of risk-free rates equal to our expectations of credit risk premiums.
|
|
•
|
Actuarial assumptions are adjusted to remove risk margins and reflect our best estimates.
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in billions)
|
||||||
|
Embedded derivative liability as defined by U.S. GAAP
|
|
$
|
8.4
|
|
|
$
|
8.1
|
|
|
Less: NPR Adjustment
|
|
(8.9
|
)
|
|
(6.7
|
)
|
||
|
Embedded derivative liability as defined by U.S. GAAP, excluding NPR
|
|
17.3
|
|
|
14.8
|
|
||
|
Less: Amount of embedded derivative liability, excluding NPR, excluded from hedge target liability
|
|
6.4
|
|
|
6.1
|
|
||
|
Hedge target liability (contra-liability)
|
|
$
|
10.9
|
|
|
$
|
8.7
|
|
|
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||||||||||
|
|
|
Equity
|
|
Interest Rate
|
|
Equity
|
|
Interest Rate
|
||||||||||||||||||||||||
|
Instrument
|
|
Notional
|
|
Market
Value
|
|
Notional
|
|
Market
Value
|
|
Notional
|
|
Market
Value
|
|
Notional
|
|
Market
Value
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
(in billions)
|
||||||||||||||||||||||||||||||
|
Futures
|
|
$
|
0.1
|
|
|
$
|
0.0
|
|
|
$
|
0.8
|
|
|
$
|
0.0
|
|
|
$
|
0.2
|
|
|
$
|
0.0
|
|
|
$
|
0.0
|
|
|
$
|
0.0
|
|
|
Swaps(1)
|
|
17.2
|
|
|
(0.1
|
)
|
|
91.7
|
|
|
6.2
|
|
|
14.5
|
|
|
(0.4
|
)
|
|
87.7
|
|
|
5.1
|
|
||||||||
|
Options
|
|
5.0
|
|
|
0.0
|
|
|
14.4
|
|
|
0.2
|
|
|
10.4
|
|
|
0.4
|
|
|
25.5
|
|
|
0.5
|
|
||||||||
|
Total
|
|
$
|
22.3
|
|
|
$
|
(0.1
|
)
|
|
$
|
106.9
|
|
|
$
|
6.4
|
|
|
$
|
25.1
|
|
|
$
|
0.0
|
|
|
$
|
113.2
|
|
|
$
|
5.6
|
|
|
(1)
|
Includes interest rate swaps for which offsetting positions exist in Corporate and Other operations, reflecting the impact of managing interest rate risk through capital management strategies other than hedging of particular exposures. See “—Corporate and Other.”
|
|
•
|
Fund Performance—In order to project future account value changes, we make certain assumptions about how each underlying fund will perform. We map contractholder funds to hedgeable indices that we believe are the best representation of the liability to be hedged in the capital markets. The difference between the modeled fund performance and actual fund performance results in basis that can be either positive or negative.
|
|
•
|
Net Market Impact—We incur rebalancing costs related to the dynamic rebalancing of the hedging instruments as markets move. Our hedging program is also subject to the impact of implied and realized market volatility on the hedge positions relative to our hedge target that can lead to positive or negative results.
|
|
•
|
Liability Basis—We make assumptions about expected changes in the hedge target related to certain items, such as contractholder behavior. The difference between the actual change in the hedge target and the expected changes we have modeled results in basis that can be either positive or negative.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(1)
(in millions) |
||||||||||
|
Hedge Program Results:
|
|
|
|
|
|
|
||||||
|
Change in value of hedge target(2)(3)
|
|
$
|
(1,378
|
)
|
|
$
|
(7,630
|
)
|
|
$
|
9,234
|
|
|
Change in fair value of hedge positions
|
|
831
|
|
|
7,209
|
|
|
(9,465
|
)
|
|||
|
Net hedging impact(2)(4)
|
|
(547
|
)
|
|
(421
|
)
|
|
(231
|
)
|
|||
|
Reconciliation of Hedge Program Results to U.S. GAAP Results:
|
|
|
|
|
|
|
||||||
|
Net hedging impact (from above)
|
|
$
|
(547
|
)
|
|
$
|
(421
|
)
|
|
$
|
(231
|
)
|
|
Change in portions of U.S. GAAP liability, before NPR, excluded from hedge target(2)(5)
|
|
(67
|
)
|
|
(1,997
|
)
|
|
902
|
|
|||
|
Change in the NPR adjustment(2)
|
|
2,243
|
|
|
3,824
|
|
|
(4,333
|
)
|
|||
|
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions—reported in Individual Annuities
|
|
1,629
|
|
|
1,406
|
|
|
(3,662
|
)
|
|||
|
Related benefit (charge) to amortization of DAC and other costs(2)
|
|
(701
|
)
|
|
(496
|
)
|
|
1,161
|
|
|||
|
Net impact of annual assumption updates and other refinements
|
|
(34
|
)
|
|
(631
|
)
|
|
(1,533
|
)
|
|||
|
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions, after the impact of NPR, DAC and other costs—reported in Individual Annuities(4)
|
|
$
|
894
|
|
|
$
|
279
|
|
|
$
|
(4,034
|
)
|
|
(1)
|
Positive amount represents income; negative amount represents a loss.
|
|
(2)
|
Excludes the net impacts of assumption updates and other refinements, and includes rider fees received attributable to future benefit payments. The assumption update impact to the change in value of hedge target was approximately $106 million, $(1,263) million and $(1,386) million for
2015
,
2014
and
2013
, respectively. The assumption update impact to the change in portions of U.S. GAAP liability, before NPR, excluded from hedge target, was approximately $(172) million, $(318) million and $(2,542) million for
2015
,
2014
and
2013
, respectively. The assumption update impact to the change in the NPR adjustment was approximately $(8) million, $618 million and $1,798 million for
2015
,
2014
and
2013
, respectively. The assumption update impact to the related benefit (charge) to amortization of DAC and other costs was approximately $40 million, $332 million and $597 million for
2015
,
2014
and
2013
, respectively.
|
|
(3)
|
Attributed fees received for
2015
,
2014
and
2013
were approximately $999 million, $940 million and $862 million, respectively, and were included in “Change in value of hedge target.”
|
|
(4)
|
Excludes $(585) million, $(3,036) million and $1,603 million for
2015
,
2014
and
2013
, respectively, representing the impact of managing interest rate risk through capital management strategies other than hedging of particular exposures. Because this decision is based on the capital considerations of the Company as a whole, the impact is reported in Corporate and Other operations. See “—Corporate and Other.”
|
|
(5)
|
Represents the impact attributable to the difference between the value of the hedge target and the value of the embedded derivative as defined by U.S. GAAP, before adjusting for NPR, as discussed above.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Revenues
|
|
$
|
11,821
|
|
|
$
|
12,077
|
|
|
$
|
6,028
|
|
|
Benefits and expenses
|
|
10,890
|
|
|
10,862
|
|
|
4,989
|
|
|||
|
Adjusted operating income
|
|
931
|
|
|
1,215
|
|
|
1,039
|
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
255
|
|
|
591
|
|
|
(1,489
|
)
|
|||
|
Related charges
|
|
(1
|
)
|
|
(4
|
)
|
|
1
|
|
|||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
(581
|
)
|
|
151
|
|
|
(718
|
)
|
|||
|
Change in experience-rated contractholder liabilities due to asset value changes
|
|
490
|
|
|
(106
|
)
|
|
695
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
1,094
|
|
|
$
|
1,847
|
|
|
$
|
(472
|
)
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Full Service:
|
|
|
|
|
|
|
||||||
|
Beginning total account value
|
|
$
|
184,196
|
|
|
$
|
173,502
|
|
|
$
|
148,405
|
|
|
Deposits and sales
|
|
25,684
|
|
|
23,934
|
|
|
20,677
|
|
|||
|
Withdrawals and benefits
|
|
(21,559
|
)
|
|
(22,601
|
)
|
|
(18,711
|
)
|
|||
|
Change in market value, interest credited and interest income and other activity
|
|
640
|
|
|
9,361
|
|
|
23,131
|
|
|||
|
Ending total account value
|
|
$
|
188,961
|
|
|
$
|
184,196
|
|
|
$
|
173,502
|
|
|
Net additions
|
|
$
|
4,125
|
|
|
$
|
1,333
|
|
|
$
|
1,966
|
|
|
Institutional Investment Products:
|
|
|
|
|
|
|
||||||
|
Beginning total account value
|
|
$
|
179,641
|
|
|
$
|
149,402
|
|
|
$
|
141,435
|
|
|
Additions(1)
|
|
15,572
|
|
|
43,293
|
|
|
17,294
|
|
|||
|
Withdrawals and benefits
|
|
(15,388
|
)
|
|
(16,036
|
)
|
|
(9,951
|
)
|
|||
|
Change in market value, interest credited and interest income(2)
|
|
3,476
|
|
|
5,833
|
|
|
1,081
|
|
|||
|
Other(2)(3)
|
|
(3,337
|
)
|
|
(2,851
|
)
|
|
(457
|
)
|
|||
|
Ending total account value
|
|
$
|
179,964
|
|
|
$
|
179,641
|
|
|
$
|
149,402
|
|
|
Net additions
|
|
$
|
184
|
|
|
$
|
27,257
|
|
|
$
|
7,343
|
|
|
(1)
|
Additions primarily include: group annuities calculated based on premiums received; longevity reinsurance contracts calculated as the present value of future projected benefits; and investment-only stable value contracts calculated as the fair value of customers’ funds held in a client-owned trust.
|
|
(2)
|
Prior period amounts have been reclassified to conform to current period presentation.
|
|
(3)
|
“Other” activity includes the effect of foreign exchange rate changes associated with our United Kingdom longevity reinsurance business and changes in asset balances for externally-managed accounts.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Revenues
|
|
$
|
2,944
|
|
|
$
|
2,840
|
|
|
$
|
2,678
|
|
|
Expenses
|
|
2,165
|
|
|
2,055
|
|
|
1,955
|
|
|||
|
Adjusted operating income
|
|
779
|
|
|
785
|
|
|
723
|
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
(4
|
)
|
|
(10
|
)
|
|
(6
|
)
|
|||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
50
|
|
|
41
|
|
|
90
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
825
|
|
|
$
|
816
|
|
|
$
|
807
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Revenues by type:
|
|
|
|
|
|
|
||||||
|
Asset management fees by source:
|
|
|
|
|
|
|
||||||
|
Institutional customers
|
|
$
|
923
|
|
|
$
|
877
|
|
|
$
|
838
|
|
|
Retail customers(1)
|
|
764
|
|
|
720
|
|
|
631
|
|
|||
|
General account
|
|
448
|
|
|
424
|
|
|
412
|
|
|||
|
Total asset management fees
|
|
2,135
|
|
|
2,021
|
|
|
1,881
|
|
|||
|
Incentive fees
|
|
88
|
|
|
91
|
|
|
62
|
|
|||
|
Transaction fees
|
|
20
|
|
|
26
|
|
|
25
|
|
|||
|
Strategic investing
|
|
30
|
|
|
45
|
|
|
52
|
|
|||
|
Commercial mortgage(2)
|
|
103
|
|
|
100
|
|
|
115
|
|
|||
|
Other related revenues(3)
|
|
241
|
|
|
262
|
|
|
254
|
|
|||
|
Service, distribution and other revenues(4)
|
|
568
|
|
|
557
|
|
|
543
|
|
|||
|
Total revenues
|
|
$
|
2,944
|
|
|
$
|
2,840
|
|
|
$
|
2,678
|
|
|
(1)
|
Consists of fees from: individual mutual funds and variable annuities and variable life insurance separate account assets; funds invested in proprietary mutual funds through our defined contribution plan products; and third-party sub-advisory relationships. Revenues from fixed annuities and the fixed-rate accounts of variable annuities and variable life insurance are included in the general account.
|
|
(2)
|
Includes mortgage origination and spread lending revenues of our commercial mortgage origination and servicing business.
|
|
(3)
|
Future revenues will be impacted by the level and diversification of our strategic investments, the commercial real estate market, and other domestic and international markets.
|
|
(4)
|
Includes payments from Wells Fargo under an agreement dated as of July 30, 2004, implementing arrangements with respect to money market mutual funds in connection with the combination of our retail securities brokerage and clearing operations with those of Wells Fargo. The agreement extends for ten years after termination of the Wachovia Securities joint venture, which occurred on December 31, 2009. The revenue from Wells Fargo under this agreement was $78 million in
2015
, $77 million in
2014
and $75 million in
2013
.
|
|
|
|
December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in billions)
|
||||||||||
|
Assets Under Management (at fair market value):
|
|
|
|
|
|
|
||||||
|
Institutional customers:
|
|
|
|
|
|
|
||||||
|
Equity
|
|
$
|
59.9
|
|
|
$
|
63.8
|
|
|
$
|
63.4
|
|
|
Fixed income
|
|
289.9
|
|
|
270.0
|
|
|
243.8
|
|
|||
|
Real estate
|
|
39.3
|
|
|
36.2
|
|
|
34.5
|
|
|||
|
Institutional customers(1)
|
|
389.1
|
|
|
370.0
|
|
|
341.7
|
|
|||
|
Retail customers:
|
|
|
|
|
|
|
||||||
|
Equity
|
|
121.4
|
|
|
122.8
|
|
|
117.0
|
|
|||
|
Fixed income
|
|
73.7
|
|
|
61.0
|
|
|
51.5
|
|
|||
|
Real estate
|
|
2.2
|
|
|
2.3
|
|
|
2.2
|
|
|||
|
Retail customers(2)
|
|
197.3
|
|
|
186.1
|
|
|
170.7
|
|
|||
|
General account:
|
|
|
|
|
|
|
||||||
|
Equity
|
|
7.4
|
|
|
7.7
|
|
|
8.9
|
|
|||
|
Fixed income
|
|
367.5
|
|
|
368.1
|
|
|
347.2
|
|
|||
|
Real estate
|
|
1.8
|
|
|
1.6
|
|
|
1.4
|
|
|||
|
General account
|
|
376.7
|
|
|
377.4
|
|
|
357.5
|
|
|||
|
Total assets under management
|
|
$
|
963.1
|
|
|
$
|
933.5
|
|
|
$
|
869.9
|
|
|
(1)
|
Consists of third-party institutional assets and group insurance contracts.
|
|
(2)
|
Consists of: individual mutual funds and variable annuities and variable life insurance separate account assets; funds invested in proprietary mutual funds through our defined contribution plan products; and third-party sub-advisory relationships. Fixed annuities and the fixed-rate accounts of variable annuities and variable life insurance are included in the general account.
|
|
|
|
December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in billions)
|
||||||||||
|
Institutional Customers:
|
|
|
|
|
|
|
||||||
|
Beginning Assets Under Management
|
|
$
|
370.0
|
|
|
$
|
341.7
|
|
|
$
|
313.7
|
|
|
Net additions (withdrawals), excluding money market activity:
|
|
|
|
|
|
|
||||||
|
Third-party
|
|
21.2
|
|
|
0.7
|
|
|
19.4
|
|
|||
|
Affiliated
|
|
(4.8
|
)
|
|
1.8
|
|
|
(0.4
|
)
|
|||
|
Total
|
|
16.4
|
|
|
2.5
|
|
|
19.0
|
|
|||
|
Market appreciation (depreciation)
|
|
2.6
|
|
|
26.9
|
|
|
10.3
|
|
|||
|
Other increases (decreases)(1)
|
|
0.1
|
|
|
(1.1
|
)
|
|
(1.3
|
)
|
|||
|
Ending Assets Under Management
|
|
$
|
389.1
|
|
|
$
|
370.0
|
|
|
$
|
341.7
|
|
|
Retail Customers:
|
|
|
|
|
|
|
||||||
|
Beginning Assets Under Management
|
|
$
|
186.1
|
|
|
$
|
170.7
|
|
|
$
|
138.7
|
|
|
Net additions (withdrawals), excluding money market activity:
|
|
|
|
|
|
|
||||||
|
Third-party
|
|
0.8
|
|
|
4.7
|
|
|
4.4
|
|
|||
|
Affiliated
|
|
9.2
|
|
|
(0.5
|
)
|
|
1.6
|
|
|||
|
Total
|
|
10.0
|
|
|
4.2
|
|
|
6.0
|
|
|||
|
Market appreciation (depreciation)
|
|
1.4
|
|
|
11.6
|
|
|
26.7
|
|
|||
|
Other increases (decreases)(1)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
(0.7
|
)
|
|||
|
Ending Assets Under Management
|
|
$
|
197.3
|
|
|
$
|
186.1
|
|
|
$
|
170.7
|
|
|
General Account:
|
|
|
|
|
|
|
||||||
|
Beginning Assets Under Management
|
|
$
|
377.4
|
|
|
$
|
357.5
|
|
|
$
|
374.6
|
|
|
Net additions (withdrawals), excluding money market activity:
|
|
|
|
|
|
|
||||||
|
Third-party
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|||
|
Affiliated(2)
|
|
(1.1
|
)
|
|
3.9
|
|
|
7.4
|
|
|||
|
Total
|
|
(1.1
|
)
|
|
3.9
|
|
|
7.4
|
|
|||
|
Market appreciation (depreciation)
|
|
(1.5
|
)
|
|
25.8
|
|
|
(2.8
|
)
|
|||
|
Other increases (decreases)(1)
|
|
1.9
|
|
|
(9.8
|
)
|
|
(21.7
|
)
|
|||
|
Ending Assets Under Management
|
|
$
|
376.7
|
|
|
$
|
377.4
|
|
|
$
|
357.5
|
|
|
(1)
|
Includes the effect of foreign exchange rate changes, net money market activity and transfers from/(to) the Retirement segment as a result of changes in the client contract form. The impact from foreign currency fluctuations, which primarily impact the general account, resulted in losses of $1.7 billion, $13.9 billion and $21.0 billion for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
|
(2)
|
General account affiliated net additions (withdrawals) includes net additions of $4.6 billion from two significant pension risk transfer transactions in the Retirement segment for the year ended December 31, 2014 and net additions of $7.9 billion for the year ended December 31, 2013 from the acquisition of the Hartford Life Business on January 2, 2013.
|
|
|
|
December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Co-Investments:
|
|
|
|
|
||||
|
Real estate
|
|
$
|
197
|
|
|
$
|
277
|
|
|
Fixed income
|
|
166
|
|
|
112
|
|
||
|
Seed Investments:
|
|
|
|
|
||||
|
Real estate
|
|
56
|
|
|
32
|
|
||
|
Public equity
|
|
300
|
|
|
268
|
|
||
|
Fixed income
|
|
214
|
|
|
210
|
|
||
|
Loans Secured by Investor Equity Commitments or Fund Assets:
|
|
|
|
|
||||
|
Private equity secured by investor equity
|
|
42
|
|
|
0
|
|
||
|
Total
|
|
$
|
975
|
|
|
$
|
899
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Revenues
|
|
$
|
5,233
|
|
|
$
|
5,226
|
|
|
$
|
4,620
|
|
|
Benefits and expenses
|
|
4,598
|
|
|
4,728
|
|
|
4,037
|
|
|||
|
Adjusted operating income
|
|
635
|
|
|
498
|
|
|
583
|
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
166
|
|
|
1,092
|
|
|
(724
|
)
|
|||
|
Related charges
|
|
(9
|
)
|
|
(341
|
)
|
|
286
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
792
|
|
|
$
|
1,249
|
|
|
$
|
145
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||||
|
|
|
Prudential
Advisors
|
|
Third
Party
|
|
Total
|
|
Prudential
Advisors
|
|
Third
Party
|
|
Total
|
|
Prudential
Advisors
|
|
Third
Party
|
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||||||
|
Term Life
|
|
$
|
33
|
|
|
$
|
171
|
|
|
$
|
204
|
|
|
$
|
36
|
|
|
$
|
145
|
|
|
$
|
181
|
|
|
$
|
39
|
|
|
$
|
157
|
|
|
$
|
196
|
|
|
Guaranteed Universal Life(1)
|
|
31
|
|
|
189
|
|
|
220
|
|
|
28
|
|
|
121
|
|
|
149
|
|
|
35
|
|
|
376
|
|
|
411
|
|
|||||||||
|
Other Universal Life(1)
|
|
28
|
|
|
61
|
|
|
89
|
|
|
13
|
|
|
57
|
|
|
70
|
|
|
5
|
|
|
81
|
|
|
86
|
|
|||||||||
|
Variable Life
|
|
22
|
|
|
56
|
|
|
78
|
|
|
21
|
|
|
31
|
|
|
52
|
|
|
16
|
|
|
22
|
|
|
38
|
|
|||||||||
|
Total
|
|
$
|
114
|
|
|
$
|
477
|
|
|
$
|
591
|
|
|
$
|
98
|
|
|
$
|
354
|
|
|
$
|
452
|
|
|
$
|
95
|
|
|
$
|
636
|
|
|
$
|
731
|
|
|
(1)
|
Single pay life annualized new business premiums, which include 10% of excess (unscheduled) premiums, represented approximately 17%, 10% and 36% of Guaranteed Universal Life and 7%, 8%, and 9% of Other Universal Life annualized new business premiums for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Revenues
|
|
$
|
5,143
|
|
|
$
|
5,357
|
|
|
$
|
5,518
|
|
|
Benefits and expenses
|
|
4,967
|
|
|
5,334
|
|
|
5,361
|
|
|||
|
Adjusted operating income
|
|
176
|
|
|
23
|
|
|
157
|
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
(1
|
)
|
|
66
|
|
|
(24
|
)
|
|||
|
Related charges
|
|
(4
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|||
|
Income from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
171
|
|
|
$
|
84
|
|
|
$
|
128
|
|
|
Benefits ratio(1):
|
|
|
|
|
|
|
||||||
|
Group life(2)
|
|
88.7
|
%
|
|
89.3
|
%
|
|
88.5
|
%
|
|||
|
Group disability(2)
|
|
75.7
|
%
|
|
99.8
|
%
|
|
92.8
|
%
|
|||
|
Total group insurance(2)
|
|
86.6
|
%
|
|
91.1
|
%
|
|
89.3
|
%
|
|||
|
Administrative operating expense ratio(3):
|
|
|
|
|
|
|
||||||
|
Group life
|
|
11.0
|
%
|
|
11.1
|
%
|
|
10.1
|
%
|
|||
|
Group disability
|
|
34.1
|
%
|
|
30.2
|
%
|
|
26.6
|
%
|
|||
|
(1)
|
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
|
|
(2)
|
Benefits ratios reflect the impacts of our annual reviews and updates of assumptions and other refinements. Excluding these impacts, the group life, group disability and total group insurance benefits ratios were
89.2%
,
79.2%
and
87.5%
for 2015, respectively,
89.2%
,
87.0%
and
88.8%
for 2014, respectively, and
89.5%
,
93.9%
and
90.3%
for 2013, respectively.
|
|
(3)
|
Ratio of general and administrative expenses (excluding commissions) to gross premiums plus policy charges and fee income.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Annualized new business premiums(1):
|
|
|
|
|
|
|
||||||
|
Group life
|
|
$
|
204
|
|
|
$
|
189
|
|
|
$
|
240
|
|
|
Group disability
|
|
69
|
|
|
67
|
|
|
73
|
|
|||
|
Total
|
|
$
|
273
|
|
|
$
|
256
|
|
|
$
|
313
|
|
|
(1)
|
Amounts exclude new premiums resulting from rate changes on existing policies, from additional coverage under our Servicemembers’ Group Life Insurance contract and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts.
|
|
|
|
December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in billions)
|
||||||
|
Instruments hedging foreign currency exchange rate exposure on U.S. dollar-equivalent earnings:
|
|
|
|
|
||||
|
Forward currency hedging program(1)
|
|
$
|
1.9
|
|
|
$
|
2.0
|
|
|
Instruments hedging foreign currency exchange rate exposure on U.S. dollar-equivalent equity:
|
|
|
|
|
||||
|
U.S. dollar-denominated assets held in yen-based entities(2):
|
|
|
|
|
||||
|
Available-for-sale U.S. dollar-denominated investments, at amortized cost
|
|
13.0
|
|
|
12.2
|
|
||
|
Held-to-maturity U.S. dollar-denominated investments, at amortized cost
|
|
0.0
|
|
|
0.1
|
|
||
|
Other
|
|
0.1
|
|
|
0.1
|
|
||
|
Subtotal
|
|
13.1
|
|
|
12.4
|
|
||
|
Yen-denominated liabilities held in U.S. dollar-based entities(3)
|
|
0.0
|
|
|
0.8
|
|
||
|
Dual currency and synthetic dual currency investments(4)
|
|
0.8
|
|
|
0.8
|
|
||
|
Total instruments hedging foreign currency exchange rate exposure on U.S. dollar-equivalent equity
|
|
13.9
|
|
|
14.0
|
|
||
|
Total hedges
|
|
$
|
15.8
|
|
|
$
|
16.0
|
|
|
(1)
|
Represents the notional amount of forward currency contracts outstanding.
|
|
(2)
|
Excludes $30.5 billion and $29.1 billion as of December 31, 2015 and 2014, respectively, of U.S. dollar assets supporting U.S. dollar liabilities related to U.S. dollar-denominated products issued by our Japanese insurance operations.
|
|
(3)
|
The yen-denominated liabilities are reported in Corporate and Other operations.
|
|
(4)
|
Dual currency and synthetic dual currency investments are held by our yen-based entities in the form of fixed maturities and loans with a yen-denominated principal component and U.S. dollar-denominated interest income. The amounts shown represent the present value of future U.S. dollar cash flows.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
International Insurance Segment:
|
|
|
|
|
|
|
||||||
|
Impact of intercompany arrangement(1)
|
|
$
|
331
|
|
|
$
|
275
|
|
|
$
|
222
|
|
|
Corporate and Other operations:
|
|
|
|
|
|
|
||||||
|
Impact of intercompany arrangement(1)
|
|
(331
|
)
|
|
(275
|
)
|
|
(222
|
)
|
|||
|
Settlement gains (losses) on forward currency contracts
|
|
286
|
|
|
293
|
|
|
240
|
|
|||
|
Net benefit (detriment) to Corporate and Other operations
|
|
(45
|
)
|
|
18
|
|
|
18
|
|
|||
|
Net impact on consolidated revenues and adjusted operating income
|
|
$
|
286
|
|
|
$
|
293
|
|
|
$
|
240
|
|
|
(1)
|
Represents the difference between non-U.S. dollar-denominated earnings translated on the basis of weighted average monthly currency exchange rates versus fixed currency exchange rates determined in connection with the forward currency hedging program.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Revenues:
|
|
|
|
|
|
|
||||||
|
Life Planner operations
|
|
$
|
9,172
|
|
|
$
|
9,267
|
|
|
$
|
8,978
|
|
|
Gibraltar Life and Other operations
|
|
10,192
|
|
|
10,799
|
|
|
13,562
|
|
|||
|
Total revenues
|
|
19,364
|
|
|
20,066
|
|
|
22,540
|
|
|||
|
Benefits and expenses:
|
|
|
|
|
|
|
||||||
|
Life Planner operations
|
|
7,587
|
|
|
7,678
|
|
|
7,461
|
|
|||
|
Gibraltar Life and Other operations
|
|
8,551
|
|
|
9,136
|
|
|
11,927
|
|
|||
|
Total benefits and expenses
|
|
16,138
|
|
|
16,814
|
|
|
19,388
|
|
|||
|
Adjusted operating income:
|
|
|
|
|
|
|
||||||
|
Life Planner operations
|
|
1,585
|
|
|
1,589
|
|
|
1,517
|
|
|||
|
Gibraltar Life and Other operations
|
|
1,641
|
|
|
1,663
|
|
|
1,635
|
|
|||
|
Total adjusted operating income
|
|
3,226
|
|
|
3,252
|
|
|
3,152
|
|
|||
|
Realized investment gains (losses), net, and related adjustments(1)
|
|
1,215
|
|
|
(2,192
|
)
|
|
(4,065
|
)
|
|||
|
Related charges
|
|
(60
|
)
|
|
(59
|
)
|
|
(140
|
)
|
|||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
57
|
|
|
188
|
|
|
468
|
|
|||
|
Change in experience-rated contractholder liabilities due to asset value changes
|
|
(57
|
)
|
|
(188
|
)
|
|
(468
|
)
|
|||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
8
|
|
|
5
|
|
|
(63
|
)
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
4,389
|
|
|
$
|
1,006
|
|
|
$
|
(1,116
|
)
|
|
(1)
|
Includes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that are economically matched, as discussed above.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Annualized new business premiums:
|
|
|
|
|
|
|
||||||
|
On an actual exchange rate basis:
|
|
|
|
|
|
|
||||||
|
Life Planner operations
|
|
$
|
1,117
|
|
|
$
|
1,161
|
|
|
$
|
1,128
|
|
|
Gibraltar Life
|
|
1,548
|
|
|
1,584
|
|
|
1,756
|
|
|||
|
Total
|
|
$
|
2,665
|
|
|
$
|
2,745
|
|
|
$
|
2,884
|
|
|
On a constant exchange rate basis:
|
|
|
|
|
|
|
||||||
|
Life Planner operations
|
|
$
|
1,181
|
|
|
$
|
1,096
|
|
|
$
|
1,034
|
|
|
Gibraltar Life
|
|
1,619
|
|
|
1,506
|
|
|
1,598
|
|
|||
|
Total
|
|
$
|
2,800
|
|
|
$
|
2,602
|
|
|
$
|
2,632
|
|
|
|
|
Year Ended December 31, 2015
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||||||||||||
|
|
|
Life
|
|
Accident
&
Health
|
|
Retirement
(1)
|
|
Annuity
|
|
Total
|
|
Life
|
|
Accident
&
Health
|
|
Retirement
(1)
|
|
Annuity
|
|
Total
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||||||||||
|
Life Planner
|
|
$
|
729
|
|
|
$
|
116
|
|
|
$
|
271
|
|
|
$
|
65
|
|
|
$
|
1,181
|
|
|
$
|
613
|
|
|
$
|
100
|
|
|
$
|
319
|
|
|
$
|
64
|
|
|
$
|
1,096
|
|
|
Gibraltar Life:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Life Consultants
|
|
347
|
|
|
61
|
|
|
126
|
|
|
134
|
|
|
668
|
|
|
330
|
|
|
64
|
|
|
123
|
|
|
142
|
|
|
659
|
|
||||||||||
|
Banks(2)
|
|
480
|
|
|
1
|
|
|
40
|
|
|
180
|
|
|
701
|
|
|
418
|
|
|
1
|
|
|
10
|
|
|
176
|
|
|
605
|
|
||||||||||
|
Independent Agency
|
|
104
|
|
|
24
|
|
|
69
|
|
|
53
|
|
|
250
|
|
|
95
|
|
|
24
|
|
|
62
|
|
|
61
|
|
|
242
|
|
||||||||||
|
Subtotal
|
|
931
|
|
|
86
|
|
|
235
|
|
|
367
|
|
|
1,619
|
|
|
843
|
|
|
89
|
|
|
195
|
|
|
379
|
|
|
1,506
|
|
||||||||||
|
Total
|
|
$
|
1,660
|
|
|
$
|
202
|
|
|
$
|
506
|
|
|
$
|
432
|
|
|
$
|
2,800
|
|
|
$
|
1,456
|
|
|
$
|
189
|
|
|
$
|
514
|
|
|
$
|
443
|
|
|
$
|
2,602
|
|
|
(1)
|
Includes retirement income, endowment and savings variable universal life.
|
|
(2)
|
Single pay life annualized new business premiums, which include 10% of first year premiums, and 3 year limited pay annualized new business premiums, which include 100% of new business premiums, represented 5% and 51%, respectively, of total Japanese bank distribution channel annualized new business premiums, excluding annuity products, for the year ended December 31, 2015, and 7% and 57%, respectively, of total Japanese bank distribution channel annualized new business premiums, excluding annuity products, for the year ended December 31, 2014.
|
|
|
|
Year Ended December 31, 2014
|
|
Year Ended December 31, 2013
|
||||||||||||||||||||||||||||||||||||
|
|
|
Life
|
|
Accident
&
Health
|
|
Retirement
(1)
|
|
Annuity
|
|
Total
|
|
Life
|
|
Accident
&
Health
|
|
Retirement
(1)
|
|
Annuity
|
|
Total
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||||||||||
|
Life Planner
|
|
$
|
613
|
|
|
$
|
100
|
|
|
$
|
319
|
|
|
$
|
64
|
|
|
$
|
1,096
|
|
|
$
|
487
|
|
|
$
|
93
|
|
|
$
|
404
|
|
|
$
|
50
|
|
|
$
|
1,034
|
|
|
Gibraltar Life:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Life Consultants
|
|
330
|
|
|
64
|
|
|
123
|
|
|
142
|
|
|
659
|
|
|
379
|
|
|
82
|
|
|
127
|
|
|
109
|
|
|
697
|
|
||||||||||
|
Banks(2)
|
|
418
|
|
|
1
|
|
|
10
|
|
|
176
|
|
|
605
|
|
|
598
|
|
|
1
|
|
|
9
|
|
|
91
|
|
|
699
|
|
||||||||||
|
Independent Agency
|
|
95
|
|
|
24
|
|
|
62
|
|
|
61
|
|
|
242
|
|
|
78
|
|
|
27
|
|
|
68
|
|
|
29
|
|
|
202
|
|
||||||||||
|
Subtotal
|
|
843
|
|
|
89
|
|
|
195
|
|
|
379
|
|
|
1,506
|
|
|
1,055
|
|
|
110
|
|
|
204
|
|
|
229
|
|
|
1,598
|
|
||||||||||
|
Total
|
|
$
|
1,456
|
|
|
$
|
189
|
|
|
$
|
514
|
|
|
$
|
443
|
|
|
$
|
2,602
|
|
|
$
|
1,542
|
|
|
$
|
203
|
|
|
$
|
608
|
|
|
$
|
279
|
|
|
$
|
2,632
|
|
|
(1)
|
Includes retirement income, endowment and savings variable universal life.
|
|
(2)
|
Single pay life annualized new business premiums, which include 10% of first year premiums, and 3 year limited pay annualized new business premiums, which include 100% of new business premiums, represented 7% and 57%, respectively, of total Japanese bank distribution channel annualized new business premiums, excluding annuity products, for the year ended December 31, 2014, and 37% and 47%, respectively, of total Japanese bank distribution channel annualized new business premiums, excluding annuity products, for the year ended December 31, 2013.
|
|
|
|
As of December 31,
|
|||||||
|
|
|
2015
|
|
2014
|
|
2013
|
|||
|
Life Planners:
|
|
|
|
|
|
|
|||
|
Japan
|
|
3,528
|
|
|
3,328
|
|
|
3,258
|
|
|
All other countries
|
|
4,064
|
|
|
4,024
|
|
|
3,990
|
|
|
Gibraltar Life Consultants
|
|
8,805
|
|
|
8,707
|
|
|
9,327
|
|
|
Total
|
|
16,397
|
|
|
16,059
|
|
|
16,575
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Operating results:
|
|
|
|
|
|
|
||||||
|
Capital debt interest expense
|
|
$
|
(731
|
)
|
|
$
|
(626
|
)
|
|
$
|
(655
|
)
|
|
Operating debt interest expense, net of investment income
|
|
69
|
|
|
(126
|
)
|
|
(140
|
)
|
|||
|
Pension and employee benefits
|
|
173
|
|
|
185
|
|
|
243
|
|
|||
|
Other corporate activities(1)
|
|
(824
|
)
|
|
(781
|
)
|
|
(818
|
)
|
|||
|
Adjusted operating income
|
|
(1,313
|
)
|
|
(1,348
|
)
|
|
(1,370
|
)
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
(961
|
)
|
|
(3,656
|
)
|
|
2,270
|
|
|||
|
Related charges
|
|
19
|
|
|
4
|
|
|
(51
|
)
|
|||
|
Divested businesses
|
|
(66
|
)
|
|
167
|
|
|
29
|
|
|||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
0
|
|
|
(2
|
)
|
|
1
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
(2,321
|
)
|
|
$
|
(4,835
|
)
|
|
$
|
879
|
|
|
(1)
|
Includes consolidating adjustments.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Long-Term Care
|
|
$
|
(67
|
)
|
|
$
|
171
|
|
|
$
|
(34
|
)
|
|
Residential Real Estate Brokerage Franchise and Relocation Services
|
|
(2
|
)
|
|
2
|
|
|
84
|
|
|||
|
Individual Health and Disability Insurance
|
|
(6
|
)
|
|
(8
|
)
|
|
(15
|
)
|
|||
|
Other
|
|
9
|
|
|
2
|
|
|
(6
|
)
|
|||
|
Total divested businesses income (loss) excluded from adjusted operating income
|
|
$
|
(66
|
)
|
|
$
|
167
|
|
|
$
|
29
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
U.S. GAAP results:
|
|
|
|
|
|
|
||||||
|
Revenues
|
|
$
|
6,160
|
|
|
$
|
6,906
|
|
|
$
|
6,036
|
|
|
Benefits and expenses
|
|
6,102
|
|
|
7,165
|
|
|
5,974
|
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
58
|
|
|
$
|
(259
|
)
|
|
$
|
62
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Tax provision (benefit)
|
|
$
|
2,072
|
|
|
$
|
349
|
|
|
$
|
(1,058
|
)
|
|
Impact of:
|
|
|
|
|
|
|
||||||
|
Non-taxable investment income
|
|
341
|
|
|
381
|
|
|
319
|
|
|||
|
Foreign taxes at other than U.S. rate
|
|
51
|
|
|
(146
|
)
|
|
38
|
|
|||
|
Low income housing and other tax credits
|
|
116
|
|
|
127
|
|
|
105
|
|
|||
|
Reversal of acquisition opening balance sheet deferred tax items
|
|
0
|
|
|
(53
|
)
|
|
(55
|
)
|
|||
|
Change in repatriation assertion
|
|
3
|
|
|
(32
|
)
|
|
0
|
|
|||
|
Minority interest
|
|
24
|
|
|
19
|
|
|
37
|
|
|||
|
Medicare Part D
|
|
10
|
|
|
(3
|
)
|
|
43
|
|
|||
|
Change in law: active financing exception
|
|
108
|
|
|
0
|
|
|
2
|
|
|||
|
Other
|
|
(6
|
)
|
|
(26
|
)
|
|
(20
|
)
|
|||
|
Tax provision (benefit) excluding these items
|
|
$
|
2,719
|
|
|
$
|
616
|
|
|
$
|
(589
|
)
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Retirement Segment:
|
|
|
|
|
|
|
||||||
|
Investment gains (losses) on:
|
|
|
|
|
|
|
||||||
|
Trading account assets supporting insurance liabilities, net
|
|
$
|
(581
|
)
|
|
$
|
151
|
|
|
$
|
(718
|
)
|
|
Derivatives
|
|
138
|
|
|
(32
|
)
|
|
52
|
|
|||
|
Commercial mortgages and other loans
|
|
4
|
|
|
12
|
|
|
(2
|
)
|
|||
|
Change in experience-rated contractholder liabilities due to asset value changes(1)(2)
|
|
490
|
|
|
(106
|
)
|
|
695
|
|
|||
|
Net gains (losses)
|
|
$
|
51
|
|
|
$
|
25
|
|
|
$
|
27
|
|
|
International Insurance Segment:
|
|
|
|
|
|
|
||||||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
$
|
57
|
|
|
$
|
188
|
|
|
$
|
468
|
|
|
Change in experience-rated contractholder liabilities due to asset value changes
|
|
(57
|
)
|
|
(188
|
)
|
|
(468
|
)
|
|||
|
Net gains (losses)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Total:
|
|
|
|
|
|
|
||||||
|
Investment gains (losses) on:
|
|
|
|
|
|
|
||||||
|
Trading account assets supporting insurance liabilities, net
|
|
$
|
(524
|
)
|
|
$
|
339
|
|
|
$
|
(250
|
)
|
|
Derivatives
|
|
138
|
|
|
(32
|
)
|
|
52
|
|
|||
|
Commercial mortgages and other loans
|
|
4
|
|
|
12
|
|
|
(2
|
)
|
|||
|
Change in experience-rated contractholder liabilities due to asset value changes(1)(2)
|
|
433
|
|
|
(294
|
)
|
|
227
|
|
|||
|
Net gains (losses)
|
|
$
|
51
|
|
|
$
|
25
|
|
|
$
|
27
|
|
|
(1)
|
Decreases to contractholder liabilities due to asset value changes are limited by certain floors and therefore do not reflect cumulative declines in recorded asset values of $15 million, $2 million and $26 million as of December 31,
2015
,
2014
and
2013
, respectively. We have recovered and expect to recover in future periods these declines in recorded asset values through subsequent increases in recorded asset values or reductions in crediting rates on contractholder liabilities.
|
|
(2)
|
Included in the amounts above related to the change in the liability to contractholders as a result of commercial mortgage and other loans are decreases of $64 million, $1 million and $58 million for the years ended December 31,
2015
,
2014
and
2013
, respectively. As prescribed by U.S. GAAP, changes in the fair value of commercial mortgage and other loans held for investment in our general account, other than when associated with impairments, are not recognized in income in the current period, while the impact of these changes in fair value are reflected as a change in the liability to fully participating contractholders in the current period.
|
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||||||||||
|
|
PFI excluding Closed Block Division
|
|
Closed Block
Division
|
|
PFI excluding Closed Block Division
|
|
Closed Block
Division
|
||||||||||||||||||||||||
|
|
Total at
Fair Value
|
|
Total
Level 3(1)
|
|
Total at
Fair Value
|
|
Total
Level 3(1)
|
|
Total at
Fair Value
|
|
Total
Level 3(1)
|
|
Total at
Fair Value
|
|
Total
Level 3(1)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Fixed maturities, available-for-sale
|
$
|
252,528
|
|
|
$
|
4,598
|
|
|
$
|
37,795
|
|
|
$
|
1,022
|
|
|
$
|
255,424
|
|
|
$
|
4,655
|
|
|
$
|
43,666
|
|
|
$
|
1,011
|
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Fixed maturities
|
29,091
|
|
|
840
|
|
|
176
|
|
|
0
|
|
|
26,965
|
|
|
550
|
|
|
198
|
|
|
0
|
|
||||||||
|
Equity securities
|
2,240
|
|
|
537
|
|
|
112
|
|
|
52
|
|
|
2,139
|
|
|
555
|
|
|
152
|
|
|
108
|
|
||||||||
|
All other(2)
|
3,361
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
1,683
|
|
|
7
|
|
|
0
|
|
|
0
|
|
||||||||
|
Subtotal
|
34,692
|
|
|
1,382
|
|
|
288
|
|
|
52
|
|
|
30,787
|
|
|
1,112
|
|
|
350
|
|
|
108
|
|
||||||||
|
Equity securities, available-for-sale
|
6,547
|
|
|
264
|
|
|
2,727
|
|
|
2
|
|
|
6,339
|
|
|
272
|
|
|
3,522
|
|
|
3
|
|
||||||||
|
Commercial mortgage and other loans
|
274
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
380
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||||
|
Other long-term investments
|
1,172
|
|
|
957
|
|
|
423
|
|
|
423
|
|
|
1,441
|
|
|
1,216
|
|
|
331
|
|
|
331
|
|
||||||||
|
Short-term investments
|
6,270
|
|
|
0
|
|
|
1,217
|
|
|
0
|
|
|
5,898
|
|
|
0
|
|
|
1,837
|
|
|
0
|
|
||||||||
|
Cash equivalents
|
13,143
|
|
|
0
|
|
|
1,065
|
|
|
0
|
|
|
10,647
|
|
|
0
|
|
|
1,198
|
|
|
0
|
|
||||||||
|
Other assets
|
16
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|
115
|
|
|
2
|
|
|
0
|
|
|
0
|
|
||||||||
|
Subtotal excluding separate account assets
|
314,642
|
|
|
7,208
|
|
|
43,515
|
|
|
1,499
|
|
|
311,031
|
|
|
7,257
|
|
|
50,904
|
|
|
1,453
|
|
||||||||
|
Separate account assets
|
285,570
|
|
|
27,656
|
|
|
0
|
|
|
0
|
|
|
296,435
|
|
|
24,662
|
|
|
0
|
|
|
0
|
|
||||||||
|
Total assets
|
$
|
600,212
|
|
|
$
|
34,864
|
|
|
$
|
43,515
|
|
|
$
|
1,499
|
|
|
$
|
607,466
|
|
|
$
|
31,919
|
|
|
$
|
50,904
|
|
|
$
|
1,453
|
|
|
Future policy benefits
|
$
|
8,434
|
|
|
$
|
8,434
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
8,182
|
|
|
$
|
8,182
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Other liabilities(2)
|
32
|
|
|
2
|
|
|
1
|
|
|
0
|
|
|
228
|
|
|
5
|
|
|
0
|
|
|
0
|
|
||||||||
|
Notes issued by consolidated variable interest entities (“VIEs”)
|
8,597
|
|
|
8,597
|
|
|
0
|
|
|
0
|
|
|
6,033
|
|
|
6,033
|
|
|
0
|
|
|
0
|
|
||||||||
|
Total liabilities
|
$
|
17,063
|
|
|
$
|
17,033
|
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
14,443
|
|
|
$
|
14,220
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
(1)
|
The amount of Level 3 assets taken as a percentage of total assets measured at fair value on a recurring basis totaled
5.8%
and
5.3%
as of December 31,
2015
and
2014
, respectively, for PFI excluding the Closed Block division, and
3.4%
and
2.9%
as of December 31,
2015
and
2014
, respectively, for the Closed Block division.
|
|
(2)
|
“All other” and “Other liabilities” primarily include derivatives. The amounts classified as Level 3 exclude the impact of netting.
|
|
•
|
sale of investments;
|
|
•
|
maturities of foreign denominated investments;
|
|
•
|
adjustments to the cost basis of investments for OTTI;
|
|
•
|
recognition of OTTI in earnings for foreign denominated securities that are approaching maturity and are in an unrealized loss position due to foreign currency exchange rate movements;
|
|
•
|
prepayment premiums received on private fixed maturity securities;
|
|
•
|
net changes in the allowance for losses, certain restructurings and foreclosures on commercial mortgage and other loans; and
|
|
•
|
fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment.
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Realized investment gains (losses), net:
|
|
|
|
|
|
|
||||||
|
PFI excluding Closed Block division
|
|
$
|
3,192
|
|
|
$
|
475
|
|
|
$
|
(5,438
|
)
|
|
Closed Block division
|
|
833
|
|
|
1,161
|
|
|
232
|
|
|||
|
Consolidated realized investment gains (losses), net
|
|
$
|
4,025
|
|
|
$
|
1,636
|
|
|
$
|
(5,206
|
)
|
|
PFI excluding Closed Block Division:
|
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net:
|
|
|
|
|
|
|
||||||
|
Fixed maturity securities
|
|
$
|
1,431
|
|
|
$
|
753
|
|
|
$
|
(213
|
)
|
|
Equity securities
|
|
4
|
|
|
81
|
|
|
130
|
|
|||
|
Commercial mortgage and other loans
|
|
36
|
|
|
79
|
|
|
72
|
|
|||
|
Derivative instruments
|
|
1,775
|
|
|
(445
|
)
|
|
(5,488
|
)
|
|||
|
Other
|
|
(54
|
)
|
|
7
|
|
|
61
|
|
|||
|
Total
|
|
$
|
3,192
|
|
|
$
|
475
|
|
|
$
|
(5,438
|
)
|
|
Related adjustments
|
|
(934
|
)
|
|
(4,063
|
)
|
|
(4,518
|
)
|
|||
|
Realized investment gains (losses), net, and related adjustments
|
|
2,258
|
|
|
(3,588
|
)
|
|
(9,956
|
)
|
|||
|
Related charges
|
|
(679
|
)
|
|
(542
|
)
|
|
1,807
|
|
|||
|
Realized investment gains (losses), net, and related charges and adjustments
|
|
$
|
1,579
|
|
|
$
|
(4,130
|
)
|
|
$
|
(8,149
|
)
|
|
Closed Block Division:
|
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net:
|
|
|
|
|
|
|
||||||
|
Fixed maturity securities
|
|
$
|
203
|
|
|
$
|
441
|
|
|
$
|
120
|
|
|
Equity securities
|
|
447
|
|
|
431
|
|
|
314
|
|
|||
|
Commercial mortgage and other loans
|
|
1
|
|
|
31
|
|
|
7
|
|
|||
|
Derivative instruments
|
|
195
|
|
|
263
|
|
|
(200
|
)
|
|||
|
Other
|
|
(13
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|||
|
Total
|
|
$
|
833
|
|
|
$
|
1,161
|
|
|
$
|
232
|
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Realized investment gains (losses), net—Fixed Maturity Securities—PFI excluding Closed Block Division
|
|
|
|
|
||||
|
Gross realized investment gains:
|
|
|
|
|
||||
|
Gross gains on sales and maturities(1)
|
|
$
|
1,729
|
|
|
$
|
1,063
|
|
|
Private bond prepayment premiums
|
|
80
|
|
|
91
|
|
||
|
Total gross realized investment gains
|
|
1,809
|
|
|
1,154
|
|
||
|
Gross realized investment losses:
|
|
|
|
|
||||
|
Net OTTI recognized in earnings(2)
|
|
(97
|
)
|
|
(36
|
)
|
||
|
Gross losses on sales and maturities(1)
|
|
(273
|
)
|
|
(327
|
)
|
||
|
Credit related losses on sales
|
|
(8
|
)
|
|
(38
|
)
|
||
|
Total gross realized investment losses
|
|
(378
|
)
|
|
(401
|
)
|
||
|
Realized investment gains (losses), net—Fixed Maturity Securities
|
|
$
|
1,431
|
|
|
$
|
753
|
|
|
Net gains (losses) on sales and maturities—Fixed Maturity Securities(1)
|
|
$
|
1,456
|
|
|
$
|
736
|
|
|
(1)
|
Amounts exclude prepayment premiums, OTTI, and credit related losses through sales of investments pursuant to our credit risk objectives.
|
|
(2)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
|
Year Ended December 31,
|
||||||
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
||||
|
|
(in millions)
|
||||||
|
OTTI recorded in earnings—PFI excluding Closed Block Division(1)
|
|
|
|
||||
|
Public fixed maturity securities
|
$
|
31
|
|
|
$
|
22
|
|
|
Private fixed maturity securities
|
66
|
|
|
14
|
|
||
|
Total fixed maturity securities
|
97
|
|
|
36
|
|
||
|
Equity securities
|
111
|
|
|
26
|
|
||
|
Other invested assets(2)
|
121
|
|
|
21
|
|
||
|
Total
|
$
|
329
|
|
|
$
|
83
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Includes OTTI relating to investments in joint ventures and partnerships and real estate investments.
|
|
|
Year Ended December 31,
|
||||||
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
||||
|
|
(in millions)
|
||||||
|
OTTI on fixed maturity securities recorded in earnings—PFI excluding Closed Block Division(1)
|
|
|
|
||||
|
Due to credit events or adverse conditions of the respective issuer(2)
|
$
|
82
|
|
|
$
|
24
|
|
|
Due to other accounting guidelines(3)
|
15
|
|
|
12
|
|
||
|
Total
|
$
|
97
|
|
|
$
|
36
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Represents circumstances where we believe credit events or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to the investment. The amount of the impairment recorded in earnings is the difference between the amortized cost of the debt security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment.
|
|
(3)
|
Primarily represents circumstances where securities with losses from foreign currency exchange rate movements approach maturity.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Realized investment gains (losses), net—Fixed Maturity Securities—Closed Block Division
|
|
|
|
|
||||
|
Gross realized investment gains:
|
|
|
|
|
||||
|
Gross gains on sales and maturities(1)
|
|
$
|
237
|
|
|
$
|
471
|
|
|
Private bond prepayment premiums
|
|
69
|
|
|
39
|
|
||
|
Total gross realized investment gains
|
|
306
|
|
|
510
|
|
||
|
Gross realized investment losses:
|
|
|
|
|
||||
|
Net OTTI recognized in earnings(2)
|
|
(44
|
)
|
|
(20
|
)
|
||
|
Gross losses on sales and maturities(1)
|
|
(57
|
)
|
|
(37
|
)
|
||
|
Credit related losses on sales
|
|
(2
|
)
|
|
(12
|
)
|
||
|
Total gross realized investment losses
|
|
(103
|
)
|
|
(69
|
)
|
||
|
Realized investment gains (losses), net—Fixed Maturity Securities
|
|
$
|
203
|
|
|
$
|
441
|
|
|
Net gains (losses) on sales and maturities—Fixed Maturity Securities(1)
|
|
$
|
180
|
|
|
$
|
434
|
|
|
(1)
|
Amounts exclude prepayment premiums, OTTI, and credit related losses through sales of investments pursuant to our credit risk objectives.
|
|
(2)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
OTTI recorded in earnings—Closed Block Division(1)
|
|
|
|
|
||||
|
Public fixed maturity securities
|
|
$
|
9
|
|
|
$
|
13
|
|
|
Private fixed maturity securities
|
|
35
|
|
|
7
|
|
||
|
Total fixed maturity securities
|
|
44
|
|
|
20
|
|
||
|
Equity securities
|
|
15
|
|
|
6
|
|
||
|
Other invested assets(2)
|
|
21
|
|
|
5
|
|
||
|
Total
|
|
$
|
80
|
|
|
$
|
31
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Includes OTTI relating to investments in joint ventures and partnerships.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
OTTI on fixed maturity securities recorded in earnings—Closed Block Division(1)
|
|
|
|
|
||||
|
Due to credit events or adverse conditions of the respective issuer(2)
|
|
$
|
41
|
|
|
$
|
19
|
|
|
Due to other accounting guidelines
|
|
3
|
|
|
1
|
|
||
|
Total
|
|
$
|
44
|
|
|
$
|
20
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Represents circumstances where we believe credit events or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to the investment. The amount of the impairment recorded in earnings is the difference between the amortized cost of the debt security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Realized investment gains (losses), net—Fixed Maturity Securities—PFI excluding Closed Block Division
|
|
|
|
|
||||
|
Gross realized investment gains:
|
|
|
|
|
||||
|
Gross gains on sales and maturities(1)
|
|
$
|
1,063
|
|
|
$
|
1,172
|
|
|
Private bond prepayment premiums
|
|
91
|
|
|
66
|
|
||
|
Total gross realized investment gains
|
|
1,154
|
|
|
1,238
|
|
||
|
Gross realized investment losses:
|
|
|
|
|
||||
|
Net OTTI recognized in earnings(2)
|
|
(36
|
)
|
|
(150
|
)
|
||
|
Gross losses on sales and maturities(1)
|
|
(327
|
)
|
|
(1,270
|
)
|
||
|
Credit related losses on sales
|
|
(38
|
)
|
|
(31
|
)
|
||
|
Total gross realized investment losses
|
|
(401
|
)
|
|
(1,451
|
)
|
||
|
Realized investment gains (losses), net—Fixed Maturity Securities
|
|
$
|
753
|
|
|
$
|
(213
|
)
|
|
Net gains (losses) on sales and maturities—Fixed Maturity Securities(1)
|
|
$
|
736
|
|
|
$
|
(98
|
)
|
|
(1)
|
Amounts exclude prepayment premiums, OTTI, and credit related losses through sales of investments pursuant to our credit risk objectives.
|
|
(2)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
OTTI recorded in earnings—PFI excluding Closed Block Division(1)
|
|
|
|
|
||||
|
Public fixed maturity securities
|
|
$
|
22
|
|
|
$
|
111
|
|
|
Private fixed maturity securities
|
|
14
|
|
|
39
|
|
||
|
Total fixed maturity securities
|
|
36
|
|
|
150
|
|
||
|
Equity securities
|
|
26
|
|
|
12
|
|
||
|
Other invested assets(2)
|
|
21
|
|
|
12
|
|
||
|
Total
|
|
$
|
83
|
|
|
$
|
174
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Includes OTTI relating to investments in joint ventures and partnerships and real estate investments.
|
|
|
Year Ended December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
||||
|
|
(in millions)
|
||||||
|
OTTI on fixed maturity securities recorded in earnings—PFI excluding Closed Block Division(1)
|
|
|
|
||||
|
Due to credit events or adverse conditions of the respective issuer(2)
|
$
|
24
|
|
|
$
|
(80
|
)
|
|
Due to other accounting guidelines(3)
|
12
|
|
|
(70
|
)
|
||
|
Total
|
$
|
36
|
|
|
$
|
(150
|
)
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Represents circumstances where we believe credit events or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to the investment. The amount of the impairment recorded in earnings is the difference between the amortized cost of the debt security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment.
|
|
(3)
|
Primarily represents circumstances where securities with losses from foreign currency exchange rate movements approach maturity.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Realized investment gains (losses), net—Fixed Maturity Securities—Closed Block Division
|
|
|
|
|
||||
|
Gross realized investment gains:
|
|
|
|
|
||||
|
Gross gains on sales and maturities(1)
|
|
$
|
471
|
|
|
$
|
300
|
|
|
Private bond prepayment premiums
|
|
39
|
|
|
33
|
|
||
|
Total gross realized investment gains
|
|
510
|
|
|
333
|
|
||
|
Gross realized investment losses:
|
|
|
|
|
||||
|
Net OTTI recognized in earnings(2)
|
|
(20
|
)
|
|
(49
|
)
|
||
|
Gross losses on sales and maturities(1)
|
|
(37
|
)
|
|
(149
|
)
|
||
|
Credit related losses on sales
|
|
(12
|
)
|
|
(15
|
)
|
||
|
Total gross realized investment losses
|
|
(69
|
)
|
|
(213
|
)
|
||
|
Realized investment gains (losses), net—Fixed Maturity Securities
|
|
$
|
441
|
|
|
$
|
120
|
|
|
Net gains (losses) on sales and maturities—Fixed Maturity Securities(1)
|
|
$
|
434
|
|
|
$
|
151
|
|
|
(1)
|
Amounts exclude prepayment premiums, OTTI, and credit related losses through sales of investments pursuant to our credit risk objectives.
|
|
(2)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
OTTI recorded in earnings—Closed Block Division(1)
|
|
|
|
|
||||
|
Public fixed maturity securities
|
|
$
|
13
|
|
|
$
|
28
|
|
|
Private fixed maturity securities
|
|
7
|
|
|
21
|
|
||
|
Total fixed maturity securities
|
|
20
|
|
|
49
|
|
||
|
Equity securities
|
|
6
|
|
|
3
|
|
||
|
Other invested assets(2)
|
|
5
|
|
|
10
|
|
||
|
Total
|
|
$
|
31
|
|
|
$
|
62
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Includes OTTI relating to investments in joint ventures and partnerships.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
OTTI on fixed maturity securities recorded in earnings—Closed Block Division(1)
|
|
|
|
|
||||
|
Due to credit events or adverse conditions of the respective issuer(2)
|
|
$
|
19
|
|
|
$
|
44
|
|
|
Due to other accounting guidelines
|
|
1
|
|
|
5
|
|
||
|
Total
|
|
$
|
20
|
|
|
$
|
49
|
|
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
(2)
|
Represents circumstances where we believe credit events or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to the investment. The amount of the impairment recorded in earnings is the difference between the amortized cost of the debt security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment.
|
|
•
|
hedging the market risk characteristics of the major product liabilities and other obligations of the Company;
|
|
•
|
optimizing investment income yield within risk constraints over time; and
|
|
•
|
for certain portfolios, optimizing total return, including both investment income yield and capital appreciation, within risk constraints over time, while managing the market risk exposures associated with the corresponding product liabilities.
|
|
•
|
providing for the reasonable dividend expectations of the participating policyholders within the Closed Block division; and
|
|
•
|
optimizing total return, including both investment income yield and capital appreciation, within risk constraints, while managing the market risk exposures associated with the major products in the Closed Block division.
|
|
•
|
interest-crediting products for which the rates credited to customers are periodically adjusted to reflect market and competitive forces and actual investment experience, such as fixed annuities and universal life insurance;
|
|
•
|
participating individual and experience-rated group products in which customers participate in actual investment and business results through annual dividends, interest or return of premium; and
|
|
•
|
products with fixed or guaranteed terms, such as traditional whole life and endowment products, guaranteed investment contracts, funding agreements and payout annuities.
|
|
|
|
December 31, 2015
|
|||||||||||||
|
|
|
PFI excluding
Closed Block Division
|
|
Closed Block
Division
|
|
Total
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||
|
Fixed maturities:
|
|
|
|
|
|
|
|
|
|||||||
|
Public, available-for-sale, at fair value
|
|
$
|
216,628
|
|
|
63.1
|
%
|
|
$
|
23,505
|
|
|
$
|
240,133
|
|
|
Public, held-to-maturity, at amortized cost
|
|
1,834
|
|
|
0.5
|
|
|
0
|
|
|
1,834
|
|
|||
|
Private, available-for-sale, at fair value
|
|
35,767
|
|
|
10.4
|
|
|
14,290
|
|
|
50,057
|
|
|||
|
Private, held-to-maturity, at amortized cost
|
|
474
|
|
|
0.1
|
|
|
0
|
|
|
474
|
|
|||
|
Trading account assets supporting insurance liabilities, at fair value
|
|
20,522
|
|
|
6.0
|
|
|
0
|
|
|
20,522
|
|
|||
|
Other trading account assets, at fair value
|
|
1,561
|
|
|
0.5
|
|
|
288
|
|
|
1,849
|
|
|||
|
Equity securities, available-for-sale, at fair value
|
|
6,537
|
|
|
1.9
|
|
|
2,726
|
|
|
9,263
|
|
|||
|
Commercial mortgage and other loans, at book value
|
|
40,486
|
|
|
11.8
|
|
|
9,771
|
|
|
50,257
|
|
|||
|
Policy loans, at outstanding balance
|
|
6,867
|
|
|
2.0
|
|
|
4,790
|
|
|
11,657
|
|
|||
|
Other long-term investments(1)
|
|
6,549
|
|
|
1.9
|
|
|
2,921
|
|
|
9,470
|
|
|||
|
Short-term investments
|
|
6,250
|
|
|
1.8
|
|
|
1,467
|
|
|
7,717
|
|
|||
|
Total general account investments
|
|
343,475
|
|
|
100.0
|
%
|
|
59,758
|
|
|
403,233
|
|
|||
|
Invested assets of other entities and operations(2)
|
|
13,959
|
|
|
|
|
0
|
|
|
13,959
|
|
||||
|
Total investments
|
|
$
|
357,434
|
|
|
|
|
|
$
|
59,758
|
|
|
$
|
417,192
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
December 31, 2014
|
|||||||||||||
|
|
|
PFI excluding
Closed Block Division
|
|
Closed Block
Division
|
|
Total
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||
|
Fixed maturities:
|
|
|
|
|
|
|
|
|
|||||||
|
Public, available-for-sale, at fair value
|
|
$
|
220,539
|
|
|
64.4
|
%
|
|
$
|
28,626
|
|
|
$
|
249,165
|
|
|
Public, held-to-maturity, at amortized cost
|
|
2,000
|
|
|
0.6
|
|
|
0
|
|
|
2,000
|
|
|||
|
Private, available-for-sale, at fair value
|
|
34,738
|
|
|
10.1
|
|
|
15,039
|
|
|
49,777
|
|
|||
|
Private, held-to-maturity, at amortized cost
|
|
575
|
|
|
0.2
|
|
|
0
|
|
|
575
|
|
|||
|
Trading account assets supporting insurance liabilities, at fair value
|
|
20,263
|
|
|
5.9
|
|
|
0
|
|
|
20,263
|
|
|||
|
Other trading account assets, at fair value
|
|
1,456
|
|
|
0.5
|
|
|
350
|
|
|
1,806
|
|
|||
|
Equity securities, available-for-sale, at fair value
|
|
6,331
|
|
|
1.8
|
|
|
3,522
|
|
|
9,853
|
|
|||
|
Commercial mortgage and other loans, at book value
|
|
36,538
|
|
|
10.7
|
|
|
9,475
|
|
|
46,013
|
|
|||
|
Policy loans, at outstanding balance
|
|
6,798
|
|
|
2.0
|
|
|
4,914
|
|
|
11,712
|
|
|||
|
Other long-term investments(1)
|
|
7,169
|
|
|
2.1
|
|
|
2,766
|
|
|
9,935
|
|
|||
|
Short-term investments
|
|
5,874
|
|
|
1.7
|
|
|
2,037
|
|
|
7,911
|
|
|||
|
Total general account investments
|
|
342,281
|
|
|
100.0
|
%
|
|
66,729
|
|
|
409,010
|
|
|||
|
Invested assets of other entities and operations(2)
|
|
10,976
|
|
|
|
|
0
|
|
|
10,976
|
|
||||
|
Total investments
|
|
$
|
353,257
|
|
|
|
|
|
$
|
66,729
|
|
|
$
|
419,986
|
|
|
(1)
|
Other long-term investments consist of real estate and non-real estate-related investments in joint ventures and partnerships, investment real estate held through direct ownership and other miscellaneous investments. For additional information regarding these investments, see “—Other Long-Term Investments” below.
|
|
(2)
|
Includes invested assets of our asset management and derivative operations. Excludes assets of our asset management operations that are managed for third- parties and those assets classified as “Separate account assets” on our balance sheet. For additional information regarding these investments, see “—Invested Assets of Other Entities and Operations” below.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
|
|
(in millions)
|
||||||
|
Fixed maturities:
|
|
|
|
|
||||
|
Public, available-for-sale, at fair value
|
|
$
|
109,257
|
|
|
$
|
111,991
|
|
|
Public, held-to-maturity, at amortized cost
|
|
1,834
|
|
|
2,000
|
|
||
|
Private, available-for-sale, at fair value
|
|
9,747
|
|
|
8,835
|
|
||
|
Private, held-to-maturity, at amortized cost
|
|
474
|
|
|
575
|
|
||
|
Trading account assets supporting insurance liabilities, at fair value
|
|
2,020
|
|
|
1,910
|
|
||
|
Other trading account assets, at fair value
|
|
647
|
|
|
672
|
|
||
|
Equity securities, available-for-sale, at fair value
|
|
2,660
|
|
|
2,504
|
|
||
|
Commercial mortgage and other loans, at book value
|
|
9,756
|
|
|
8,215
|
|
||
|
Policy loans, at outstanding balance
|
|
2,208
|
|
|
2,146
|
|
||
|
Other long-term investments(1)
|
|
1,742
|
|
|
1,606
|
|
||
|
Short-term investments
|
|
417
|
|
|
406
|
|
||
|
Total Japanese general account investments
|
|
$
|
140,762
|
|
|
$
|
140,860
|
|
|
(1)
|
Other long-term investments consist of real estate and non-real estate-related investments in joint ventures and partnerships, investment real estate held through direct ownership, derivatives, and other miscellaneous investments.
|
|
|
|
Year Ended December 31, 2015
|
|||||||||||||||||||
|
|
|
PFI excluding
Closed Block Division
|
|
Closed Block
Division
|
|
Combined
|
|||||||||||||||
|
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||||||||
|
Fixed maturities
|
|
4.03
|
%
|
|
$
|
8,876
|
|
|
4.94
|
%
|
|
$
|
1,692
|
|
|
4.15
|
%
|
|
$
|
10,568
|
|
|
Trading account assets supporting insurance liabilities
|
|
3.59
|
|
|
720
|
|
|
0.00
|
|
|
0
|
|
|
3.59
|
|
|
720
|
|
|||
|
Equity securities
|
|
5.67
|
|
|
266
|
|
|
3.49
|
|
|
70
|
|
|
5.01
|
|
|
336
|
|
|||
|
Commercial mortgage and other loans
|
|
4.58
|
|
|
1,728
|
|
|
5.42
|
|
|
512
|
|
|
4.75
|
|
|
2,240
|
|
|||
|
Policy loans
|
|
5.01
|
|
|
334
|
|
|
6.06
|
|
|
285
|
|
|
5.45
|
|
|
619
|
|
|||
|
Short-term investments and cash equivalents
|
|
0.25
|
|
|
43
|
|
|
1.14
|
|
|
12
|
|
|
0.28
|
|
|
55
|
|
|||
|
Other investments
|
|
5.91
|
|
|
489
|
|
|
7.24
|
|
|
222
|
|
|
6.27
|
|
|
711
|
|
|||
|
Gross investment income before investment expenses
|
|
3.97
|
|
|
12,456
|
|
|
5.14
|
|
|
2,793
|
|
|
4.14
|
|
|
15,249
|
|
|||
|
Investment expenses
|
|
(0.14
|
)
|
|
(394
|
)
|
|
(0.25
|
)
|
|
(140
|
)
|
|
(0.16
|
)
|
|
(534
|
)
|
|||
|
Investment income after investment expenses
|
|
3.83
|
%
|
|
12,062
|
|
|
4.89
|
%
|
|
2,653
|
|
|
3.98
|
%
|
|
14,715
|
|
|||
|
Investment results of other entities and operations(2)
|
|
|
|
114
|
|
|
|
|
0
|
|
|
|
|
114
|
|
||||||
|
Total investment income
|
|
|
|
$
|
12,176
|
|
|
|
|
$
|
2,653
|
|
|
|
|
$
|
14,829
|
|
|||
|
|
|
Year Ended December 31, 2014
|
|||||||||||||||||||
|
|
|
PFI excluding
Closed Block Division
|
|
Closed Block
Division
|
|
Combined
|
|||||||||||||||
|
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||||||||
|
Fixed maturities
|
|
3.90
|
%
|
|
$
|
8,762
|
|
|
5.18
|
%
|
|
$
|
1,917
|
|
|
4.08
|
%
|
|
$
|
10,679
|
|
|
Trading account assets supporting insurance liabilities
|
|
3.75
|
|
|
765
|
|
|
0.00
|
|
|
0
|
|
|
3.75
|
|
|
765
|
|
|||
|
Equity securities
|
|
5.97
|
|
|
275
|
|
|
3.40
|
|
|
79
|
|
|
5.11
|
|
|
354
|
|
|||
|
Commercial mortgage and other loans
|
|
4.80
|
|
|
1,565
|
|
|
5.45
|
|
|
524
|
|
|
4.95
|
|
|
2,089
|
|
|||
|
Policy loans
|
|
5.08
|
|
|
341
|
|
|
6.07
|
|
|
292
|
|
|
5.49
|
|
|
633
|
|
|||
|
Short-term investments and cash equivalents
|
|
0.21
|
|
|
26
|
|
|
1.03
|
|
|
8
|
|
|
0.25
|
|
|
34
|
|
|||
|
Other investments
|
|
9.10
|
|
|
753
|
|
|
13.35
|
|
|
342
|
|
|
10.11
|
|
|
1,095
|
|
|||
|
Gross investment income before investment expenses
|
|
4.04
|
|
|
12,487
|
|
|
5.54
|
|
|
3,162
|
|
|
4.28
|
|
|
15,649
|
|
|||
|
Investment expenses
|
|
(0.14
|
)
|
|
(362
|
)
|
|
(0.27
|
)
|
|
(155
|
)
|
|
(0.16
|
)
|
|
(517
|
)
|
|||
|
Investment income after investment expenses
|
|
3.90
|
%
|
|
12,125
|
|
|
5.27
|
%
|
|
3,007
|
|
|
4.12
|
%
|
|
15,132
|
|
|||
|
Investment results of other entities and operations(2)
|
|
|
|
124
|
|
|
|
|
0
|
|
|
|
|
124
|
|
||||||
|
Total investment income
|
|
|
|
$
|
12,249
|
|
|
|
|
$
|
3,007
|
|
|
|
|
$
|
15,256
|
|
|||
|
|
|
Year Ended December 31, 2013
|
|||||||||||||||||||
|
|
|
PFI excluding
Closed Block Division
|
|
Closed Block
Division
|
|
Combined
|
|||||||||||||||
|
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||||||||
|
Fixed maturities
|
|
3.79
|
%
|
|
$
|
8,575
|
|
|
5.30
|
%
|
|
$
|
2,002
|
|
|
4.01
|
%
|
|
$
|
10,577
|
|
|
Trading account assets supporting insurance liabilities
|
|
3.79
|
|
|
775
|
|
|
0.00
|
|
|
0
|
|
|
3.79
|
|
|
775
|
|
|||
|
Equity securities
|
|
6.19
|
|
|
256
|
|
|
3.40
|
|
|
82
|
|
|
5.16
|
|
|
338
|
|
|||
|
Commercial mortgage and other loans
|
|
5.04
|
|
|
1,403
|
|
|
5.85
|
|
|
552
|
|
|
5.24
|
|
|
1,955
|
|
|||
|
Policy loans
|
|
4.82
|
|
|
316
|
|
|
6.01
|
|
|
295
|
|
|
5.33
|
|
|
611
|
|
|||
|
Short-term investments and cash equivalents
|
|
0.22
|
|
|
30
|
|
|
0.95
|
|
|
7
|
|
|
0.25
|
|
|
37
|
|
|||
|
Other investments
|
|
7.04
|
|
|
553
|
|
|
10.22
|
|
|
228
|
|
|
7.75
|
|
|
781
|
|
|||
|
Gross investment income before investment expenses
|
|
3.89
|
|
|
11,908
|
|
|
5.52
|
|
|
3,166
|
|
|
4.15
|
|
|
15,074
|
|
|||
|
Investment expenses
|
|
(0.12
|
)
|
|
(308
|
)
|
|
(0.26
|
)
|
|
(150
|
)
|
|
(0.14
|
)
|
|
(458
|
)
|
|||
|
Investment income after investment expenses
|
|
3.77
|
%
|
|
11,600
|
|
|
5.26
|
%
|
|
3,016
|
|
|
4.01
|
%
|
|
14,616
|
|
|||
|
Investment results of other entities and operations(2)
|
|
|
|
113
|
|
|
|
|
0
|
|
|
|
|
113
|
|
||||||
|
Total investment income
|
|
|
|
$
|
11,713
|
|
|
|
|
$
|
3,016
|
|
|
|
|
$
|
14,729
|
|
|||
|
(1)
|
Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation.
|
|
(2)
|
Includes investment income of our asset management operations and derivative operations, as described below under “—Invested Assets of Other Entities and Operations.”
|
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
|
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||||||||
|
Fixed maturities
|
|
4.67
|
%
|
|
$
|
5,686
|
|
|
4.69
|
%
|
|
$
|
5,461
|
|
|
4.65
|
%
|
|
$
|
5,306
|
|
|
Trading account assets supporting insurance liabilities
|
|
3.79
|
|
|
688
|
|
|
3.96
|
|
|
730
|
|
|
3.99
|
|
|
741
|
|
|||
|
Equity securities
|
|
6.07
|
|
|
197
|
|
|
6.49
|
|
|
191
|
|
|
7.30
|
|
|
174
|
|
|||
|
Commercial mortgage and other loans
|
|
4.62
|
|
|
1,338
|
|
|
4.96
|
|
|
1,271
|
|
|
5.27
|
|
|
1,145
|
|
|||
|
Policy loans
|
|
5.52
|
|
|
250
|
|
|
5.66
|
|
|
253
|
|
|
5.45
|
|
|
228
|
|
|||
|
Short-term investments and cash equivalents
|
|
0.25
|
|
|
38
|
|
|
0.21
|
|
|
22
|
|
|
0.23
|
|
|
26
|
|
|||
|
Other investments
|
|
6.17
|
|
|
356
|
|
|
10.03
|
|
|
598
|
|
|
7.54
|
|
|
383
|
|
|||
|
Gross investment income before investment expenses
|
|
4.33
|
|
|
8,553
|
|
|
4.63
|
|
|
8,526
|
|
|
4.52
|
|
|
8,003
|
|
|||
|
Investment expenses
|
|
(0.15
|
)
|
|
(239
|
)
|
|
(0.15
|
)
|
|
(209
|
)
|
|
(0.12
|
)
|
|
(152
|
)
|
|||
|
Investment income after investment expenses
|
|
4.18
|
%
|
|
8,314
|
|
|
4.48
|
%
|
|
8,317
|
|
|
4.40
|
%
|
|
7,851
|
|
|||
|
Investment results of other entities and operations(2)
|
|
|
|
114
|
|
|
|
|
124
|
|
|
|
|
113
|
|
||||||
|
Total investment income
|
|
|
|
$
|
8,428
|
|
|
|
|
$
|
8,441
|
|
|
|
|
$
|
7,964
|
|
|||
|
(1)
|
Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation.
|
|
(2)
|
Includes investment income of our asset management operations and derivative operations, as described below under “—Invested Assets of Other Entities and Operations.”
|
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
|
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|||||||||
|
|
|
($ in millions)
|
|||||||||||||||||||
|
Fixed maturities
|
|
3.23
|
%
|
|
$
|
3,190
|
|
|
3.06
|
%
|
|
$
|
3,301
|
|
|
2.91
|
%
|
|
$
|
3,269
|
|
|
Trading account assets supporting insurance liabilities
|
|
1.66
|
|
|
32
|
|
|
1.80
|
|
|
35
|
|
|
1.81
|
|
|
34
|
|
|||
|
Equity securities
|
|
4.77
|
|
|
69
|
|
|
5.06
|
|
|
84
|
|
|
4.69
|
|
|
82
|
|
|||
|
Commercial mortgage and other loans
|
|
4.45
|
|
|
390
|
|
|
4.20
|
|
|
294
|
|
|
4.21
|
|
|
258
|
|
|||
|
Policy loans
|
|
3.93
|
|
|
84
|
|
|
3.93
|
|
|
88
|
|
|
3.70
|
|
|
88
|
|
|||
|
Short-term investments and cash equivalents
|
|
0.32
|
|
|
5
|
|
|
0.24
|
|
|
4
|
|
|
0.19
|
|
|
4
|
|
|||
|
Other investments
|
|
5.32
|
|
|
133
|
|
|
6.67
|
|
|
155
|
|
|
6.12
|
|
|
170
|
|
|||
|
Gross investment income before investment expenses
|
|
3.35
|
|
|
3,903
|
|
|
3.18
|
|
|
3,961
|
|
|
3.02
|
|
|
3,905
|
|
|||
|
Investment expenses
|
|
(0.13
|
)
|
|
(155
|
)
|
|
(0.12
|
)
|
|
(153
|
)
|
|
(0.12
|
)
|
|
(156
|
)
|
|||
|
Total investment income
|
|
3.22
|
%
|
|
$
|
3,748
|
|
|
3.06
|
%
|
|
$
|
3,808
|
|
|
2.90
|
%
|
|
$
|
3,749
|
|
|
(1)
|
Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation.
|
|
|
|
December 31, 2015
|
|||||
|
|
|
Amortized
Cost
|
|
% of Total
|
|||
|
|
|
($ in millions)
|
|||||
|
Corporate & government securities:
|
|
|
|
|
|||
|
Maturing in 2016
|
|
$
|
7,589
|
|
|
3.3
|
%
|
|
Maturing in 2017
|
|
8,884
|
|
|
3.9
|
|
|
|
Maturing in 2018
|
|
9,944
|
|
|
4.3
|
|
|
|
Maturing in 2019
|
|
9,577
|
|
|
4.1
|
|
|
|
Maturing in 2020
|
|
11,993
|
|
|
5.2
|
|
|
|
Maturing in 2021
|
|
11,054
|
|
|
4.8
|
|
|
|
Maturing in 2022
|
|
10,046
|
|
|
4.3
|
|
|
|
Maturing in 2023
|
|
9,306
|
|
|
4.0
|
|
|
|
Maturing in 2024
|
|
9,652
|
|
|
4.2
|
|
|
|
Maturing in 2025
|
|
8,438
|
|
|
3.6
|
|
|
|
Maturing in 2026
|
|
5,346
|
|
|
2.3
|
|
|
|
Maturing in 2027 and beyond
|
|
110,417
|
|
|
47.7
|
|
|
|
Total corporate & government securities
|
|
212,246
|
|
|
91.7
|
|
|
|
Asset-backed securities
|
|
6,873
|
|
|
3.0
|
|
|
|
Commercial mortgage-backed securities
|
|
7,300
|
|
|
3.2
|
|
|
|
Residential mortgage-backed securities
|
|
4,861
|
|
|
2.1
|
|
|
|
Total fixed maturities
|
|
$
|
231,280
|
|
|
100.0
|
%
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
Industry(1)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains(2)
|
|
Gross
Unrealized
Losses(2)
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains(2)
|
|
Gross
Unrealized
Losses(2)
|
|
Fair
Value
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Corporate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Finance
|
|
$
|
21,505
|
|
|
$
|
1,385
|
|
|
$
|
224
|
|
|
$
|
22,666
|
|
|
$
|
20,569
|
|
|
$
|
1,984
|
|
|
$
|
55
|
|
|
$
|
22,498
|
|
|
Consumer non-cyclical
|
|
20,732
|
|
|
2,073
|
|
|
408
|
|
|
22,397
|
|
|
20,956
|
|
|
2,822
|
|
|
141
|
|
|
23,637
|
|
||||||||
|
Utility
|
|
17,369
|
|
|
1,423
|
|
|
393
|
|
|
18,399
|
|
|
16,144
|
|
|
2,149
|
|
|
82
|
|
|
18,211
|
|
||||||||
|
Capital goods
|
|
10,503
|
|
|
978
|
|
|
241
|
|
|
11,240
|
|
|
10,170
|
|
|
1,348
|
|
|
67
|
|
|
11,451
|
|
||||||||
|
Consumer cyclical
|
|
9,223
|
|
|
846
|
|
|
146
|
|
|
9,923
|
|
|
9,447
|
|
|
1,129
|
|
|
37
|
|
|
10,539
|
|
||||||||
|
Foreign agencies
|
|
5,222
|
|
|
1,086
|
|
|
67
|
|
|
6,241
|
|
|
5,186
|
|
|
1,227
|
|
|
38
|
|
|
6,375
|
|
||||||||
|
Energy
|
|
10,793
|
|
|
674
|
|
|
855
|
|
|
10,612
|
|
|
11,395
|
|
|
1,135
|
|
|
275
|
|
|
12,255
|
|
||||||||
|
Communications
|
|
6,294
|
|
|
690
|
|
|
200
|
|
|
6,784
|
|
|
6,465
|
|
|
1,021
|
|
|
41
|
|
|
7,445
|
|
||||||||
|
Basic industry
|
|
5,658
|
|
|
404
|
|
|
321
|
|
|
5,741
|
|
|
6,003
|
|
|
640
|
|
|
71
|
|
|
6,572
|
|
||||||||
|
Transportation
|
|
6,536
|
|
|
605
|
|
|
105
|
|
|
7,036
|
|
|
5,718
|
|
|
769
|
|
|
18
|
|
|
6,469
|
|
||||||||
|
Technology
|
|
3,459
|
|
|
278
|
|
|
72
|
|
|
3,665
|
|
|
3,474
|
|
|
389
|
|
|
30
|
|
|
3,833
|
|
||||||||
|
Industrial other
|
|
3,547
|
|
|
245
|
|
|
73
|
|
|
3,719
|
|
|
2,746
|
|
|
333
|
|
|
21
|
|
|
3,058
|
|
||||||||
|
Total corporate securities
|
|
120,841
|
|
|
10,687
|
|
|
3,105
|
|
|
128,423
|
|
|
118,273
|
|
|
14,946
|
|
|
876
|
|
|
132,343
|
|
||||||||
|
Foreign government(3)
|
|
72,265
|
|
|
12,167
|
|
|
131
|
|
|
84,301
|
|
|
70,327
|
|
|
11,286
|
|
|
111
|
|
|
81,502
|
|
||||||||
|
Residential mortgage-backed
|
|
4,861
|
|
|
353
|
|
|
6
|
|
|
5,208
|
|
|
5,747
|
|
|
466
|
|
|
4
|
|
|
6,209
|
|
||||||||
|
Asset-backed securities(4)
|
|
6,873
|
|
|
195
|
|
|
69
|
|
|
6,999
|
|
|
7,094
|
|
|
292
|
|
|
78
|
|
|
7,308
|
|
||||||||
|
Commercial mortgage-backed
|
|
7,300
|
|
|
160
|
|
|
37
|
|
|
7,423
|
|
|
9,688
|
|
|
344
|
|
|
24
|
|
|
10,008
|
|
||||||||
|
U.S. Government
|
|
11,479
|
|
|
2,900
|
|
|
11
|
|
|
14,368
|
|
|
11,493
|
|
|
3,468
|
|
|
5
|
|
|
14,956
|
|
||||||||
|
State & Municipal(5)
|
|
7,661
|
|
|
675
|
|
|
39
|
|
|
8,297
|
|
|
5,163
|
|
|
693
|
|
|
3
|
|
|
5,853
|
|
||||||||
|
Total(6)
|
|
$
|
231,280
|
|
|
$
|
27,137
|
|
|
$
|
3,398
|
|
|
$
|
255,019
|
|
|
$
|
227,785
|
|
|
$
|
31,495
|
|
|
$
|
1,101
|
|
|
$
|
258,179
|
|
|
(1)
|
Investment data has been classified based on standard industry categorizations for domestic public holdings and similar classifications by industry for all other holdings.
|
|
(2)
|
Includes
$316 million
of gross unrealized gains and
$0 million
of gross unrealized losses as of
December 31, 2015
, compared to
$328 million
of gross unrealized gains and
$1 million
of gross unrealized losses as of
December 31, 2014
, on securities classified as held-to-maturity.
|
|
(3)
|
As of both
December 31, 2015
and
2014
, based on amortized cost,
76%
represent Japanese government bonds held by our Japanese insurance operations, with no other individual country representing more than
10%
of the balance.
|
|
(4)
|
Includes securities collateralized by sub-prime mortgages. See “—Asset-Backed Securities” below.
|
|
(5)
|
Includes securities related to the Build America Bonds program.
|
|
(6)
|
Excluded from the table above are securities held outside the general account in other entities and operations. For additional information regarding investments held outside the general account, see “—Invested Assets of Other Entities and Operations” below. Also excluded from the table above are fixed maturity securities classified as trading. See “—Trading Account Assets Supporting Insurance Liabilities” and “—Other Trading Account Assets” for additional information.
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||||||||||
|
|
|
Lowest Rating Agency Rating
|
|
|
|
|
||||||||||||||||||||||
|
|
|
AAA
|
|
AA
|
|
A
|
|
BBB
|
|
BB and
below
|
|
Total
Amortized
Cost
|
|
Total
December 31,
2014
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Collateralized by sub-prime mortgages
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
81
|
|
|
$
|
90
|
|
|
$
|
969
|
|
|
$
|
1,141
|
|
|
$
|
1,627
|
|
|
Collateralized loan obligations
|
|
4,258
|
|
|
22
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,280
|
|
|
3,821
|
|
|||||||
|
Collateralized by education loans(1)
|
|
20
|
|
|
372
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
392
|
|
|
382
|
|
|||||||
|
Collateralized by credit cards
|
|
195
|
|
|
0
|
|
|
6
|
|
|
0
|
|
|
0
|
|
|
201
|
|
|
268
|
|
|||||||
|
Collateralized by auto loans
|
|
518
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
518
|
|
|
492
|
|
|||||||
|
Other asset-backed securities(2)
|
|
44
|
|
|
100
|
|
|
70
|
|
|
14
|
|
|
113
|
|
|
341
|
|
|
504
|
|
|||||||
|
Total asset-backed securities(3)
|
|
$
|
5,035
|
|
|
$
|
495
|
|
|
$
|
157
|
|
|
$
|
104
|
|
|
$
|
1,082
|
|
|
$
|
6,873
|
|
|
$
|
7,094
|
|
|
(1)
|
All
of the
$392 million
of education loans included above carry a Department of Education guaranty as of
December 31, 2015
.
|
|
(2)
|
Includes asset-backed securities collateralized by bond obligations, aircraft, equipment leases, franchises, and timeshares.
|
|
(3)
|
Excluded from the table above are asset-backed securities held outside the general account in other entities and operations. Also excluded from the table above are asset-backed securities classified as trading.
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||||||||||
|
|
|
Lowest Rating Agency Rating
|
|
|
|
|
||||||||||||||||||||||
|
|
|
AAA
|
|
AA
|
|
A
|
|
BBB
|
|
BB and
below
|
|
Total
Fair Value
|
|
Total
December 31,
2014
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Collateralized by sub-prime mortgages
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
79
|
|
|
$
|
90
|
|
|
$
|
1,019
|
|
|
$
|
1,189
|
|
|
$
|
1,742
|
|
|
Collateralized loan obligations
|
|
4,294
|
|
|
23
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,317
|
|
|
3,867
|
|
|||||||
|
Collateralized by education loans(1)
|
|
20
|
|
|
375
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
395
|
|
|
398
|
|
|||||||
|
Collateralized by credit cards
|
|
200
|
|
|
0
|
|
|
6
|
|
|
0
|
|
|
0
|
|
|
206
|
|
|
277
|
|
|||||||
|
Collateralized by auto loans
|
|
516
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
516
|
|
|
493
|
|
|||||||
|
Other asset-backed securities(2)
|
|
57
|
|
|
100
|
|
|
77
|
|
|
15
|
|
|
127
|
|
|
376
|
|
|
531
|
|
|||||||
|
Total asset-backed securities(3)
|
|
$
|
5,087
|
|
|
$
|
499
|
|
|
$
|
162
|
|
|
$
|
105
|
|
|
$
|
1,146
|
|
|
$
|
6,999
|
|
|
$
|
7,308
|
|
|
(1)
|
All
of the
$395 million
of education loans included above carry a Department of Education guaranty as of
December 31, 2015
.
|
|
(2)
|
Includes asset-backed securities collateralized by bond obligations, aircraft, equipment leases, franchises, and timeshares.
|
|
(3)
|
Excluded from the table above are asset-backed securities held outside the general account in other entities and operations. Also excluded from the table above are asset-backed securities classified as trading.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||
|
|
|
Amortized
Cost
|
|
% of Total
|
|
Amortized
Cost
|
|
% of Total
|
||||||
|
|
|
($ in millions)
|
||||||||||||
|
By security type:
|
|
|
|
|
|
|
|
|
||||||
|
Agency pass-through securities(1)
|
|
$
|
4,382
|
|
|
90.1
|
%
|
|
$
|
5,118
|
|
|
89.1
|
%
|
|
Collateralized mortgage obligations
|
|
479
|
|
|
9.9
|
|
|
629
|
|
|
10.9
|
|
||
|
Total residential mortgage-backed securities
|
|
$
|
4,861
|
|
|
100.0
|
%
|
|
$
|
5,747
|
|
|
100.0
|
%
|
|
Portion rated AA or higher(2)
|
|
$
|
4,791
|
|
|
98.6
|
%
|
|
$
|
5,672
|
|
|
98.7
|
%
|
|
(1)
|
As of
December 31, 2015
, of these securities,
$3.267 billion
are supported by U.S. government and
$1.115 billion
are supported by foreign governments. As of
December 31, 2014
, of these securities,
$3.855 billion
were supported by the U.S. government and
$1.263 billion
were supported by foreign governments.
|
|
(2)
|
Based on lowest external rating agency rating.
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||||||||||
|
|
|
Lowest Rating Agency Rating(1)
|
|
|
|
|
||||||||||||||||||||||
|
Vintage
|
|
AAA
|
|
AA
|
|
A
|
|
BBB
|
|
BB and
below
|
|
Total
Amortized
Cost
|
|
Total
December 31,
2014
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
2015
|
|
$
|
512
|
|
|
$
|
95
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
607
|
|
|
$
|
0
|
|
|
2014
|
|
2,419
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,420
|
|
|
2,383
|
|
|||||||
|
2013
|
|
2,460
|
|
|
99
|
|
|
0
|
|
|
9
|
|
|
0
|
|
|
2,568
|
|
|
2,481
|
|
|||||||
|
2012—2009
|
|
199
|
|
|
270
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
469
|
|
|
529
|
|
|||||||
|
2008—2007
|
|
63
|
|
|
33
|
|
|
14
|
|
|
3
|
|
|
0
|
|
|
113
|
|
|
301
|
|
|||||||
|
2006
|
|
1,036
|
|
|
43
|
|
|
10
|
|
|
0
|
|
|
0
|
|
|
1,089
|
|
|
2,576
|
|
|||||||
|
2005 & Prior
|
|
30
|
|
|
1
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
34
|
|
|
1,418
|
|
|||||||
|
Total commercial mortgage-backed securities(2)(3)(4)
|
|
$
|
6,719
|
|
|
$
|
542
|
|
|
$
|
27
|
|
|
$
|
12
|
|
|
$
|
0
|
|
|
$
|
7,300
|
|
|
$
|
9,688
|
|
|
(1)
|
The table above provides ratings as assigned by nationally recognized rating agencies as of
December 31, 2015
, including Standard & Poor’s, Moody’s, Fitch and Realpoint.
|
|
(2)
|
Excluded from the table above are commercial mortgage-backed securities held outside the general account in other entities and operations. Also excluded from the table above are commercial mortgage-backed securities classified as trading.
|
|
(3)
|
Included in the table above, as of
December 31, 2015
, are downgraded super senior securities with amortized cost of
$49 million
in AA and
$20 million
in A.
|
|
(4)
|
Included in the table above, as of
December 31, 2015
, are agency commercial mortgage-backed securities with amortized cost of
$490 million
, all rated AA.
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||||||||||
|
|
|
Lowest Rating Agency Rating(1)
|
|
|
|
|
||||||||||||||||||||||
|
Vintage
|
|
AAA
|
|
AA
|
|
A
|
|
BBB
|
|
BB and
below
|
|
Total
Fair Value
|
|
Total
December 31,
2014
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
2015
|
|
$
|
506
|
|
|
$
|
95
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
601
|
|
|
$
|
0
|
|
|
2014
|
|
2,470
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,471
|
|
|
2,474
|
|
|||||||
|
2013
|
|
2,512
|
|
|
101
|
|
|
0
|
|
|
8
|
|
|
0
|
|
|
2,621
|
|
|
2,571
|
|
|||||||
|
2012—2009
|
|
195
|
|
|
285
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
480
|
|
|
547
|
|
|||||||
|
2008—2007
|
|
63
|
|
|
35
|
|
|
13
|
|
|
4
|
|
|
0
|
|
|
115
|
|
|
305
|
|
|||||||
|
2006
|
|
1,038
|
|
|
43
|
|
|
10
|
|
|
0
|
|
|
0
|
|
|
1,091
|
|
|
2,642
|
|
|||||||
|
2005 & Prior
|
|
38
|
|
|
2
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
44
|
|
|
1,469
|
|
|||||||
|
Total commercial mortgage-backed securities(2)(3)
|
|
$
|
6,822
|
|
|
$
|
562
|
|
|
$
|
27
|
|
|
$
|
12
|
|
|
$
|
0
|
|
|
$
|
7,423
|
|
|
$
|
10,008
|
|
|
(1)
|
The table above provides ratings as assigned by nationally recognized rating agencies as of
December 31, 2015
, including Standard & Poor’s, Moody’s, Fitch and Realpoint.
|
|
(2)
|
Excluded from the table above are commercial mortgage-backed securities held outside the general account in other entities and operations. Also excluded from the table above are commercial mortgage-backed securities classified as trading.
|
|
(3)
|
Included in the table above, as of
December 31, 2015
, are agency commercial mortgage-backed securities with fair value of
$508 million
, all rated AA.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
NAIC Designation(1)(2)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains(3)
|
|
Gross
Unrealized
Losses(3)(4)
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains(3)
|
|
Gross
Unrealized
Losses(3)(4)
|
|
Fair
Value
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
1
|
|
$
|
177,350
|
|
|
$
|
22,783
|
|
|
$
|
1,445
|
|
|
$
|
198,688
|
|
|
$
|
176,122
|
|
|
$
|
25,715
|
|
|
$
|
564
|
|
|
$
|
201,273
|
|
|
2
|
|
43,731
|
|
|
3,698
|
|
|
1,545
|
|
|
45,884
|
|
|
42,111
|
|
|
4,934
|
|
|
402
|
|
|
46,643
|
|
||||||||
|
Subtotal High or Highest Quality Securities(5)
|
|
221,081
|
|
|
26,481
|
|
|
2,990
|
|
|
244,572
|
|
|
218,233
|
|
|
30,649
|
|
|
966
|
|
|
247,916
|
|
||||||||
|
3
|
|
7,085
|
|
|
408
|
|
|
292
|
|
|
7,201
|
|
|
6,619
|
|
|
537
|
|
|
58
|
|
|
7,098
|
|
||||||||
|
4
|
|
2,332
|
|
|
150
|
|
|
100
|
|
|
2,382
|
|
|
2,228
|
|
|
204
|
|
|
50
|
|
|
2,382
|
|
||||||||
|
5
|
|
415
|
|
|
78
|
|
|
12
|
|
|
481
|
|
|
441
|
|
|
83
|
|
|
24
|
|
|
500
|
|
||||||||
|
6
|
|
367
|
|
|
20
|
|
|
4
|
|
|
383
|
|
|
264
|
|
|
22
|
|
|
3
|
|
|
283
|
|
||||||||
|
Subtotal Other Securities(6)(7)
|
|
10,199
|
|
|
656
|
|
|
408
|
|
|
10,447
|
|
|
9,552
|
|
|
846
|
|
|
135
|
|
|
10,263
|
|
||||||||
|
Total Fixed Maturities
|
|
$
|
231,280
|
|
|
$
|
27,137
|
|
|
$
|
3,398
|
|
|
$
|
255,019
|
|
|
$
|
227,785
|
|
|
$
|
31,495
|
|
|
$
|
1,101
|
|
|
$
|
258,179
|
|
|
(1)
|
Reflects equivalent ratings for investments of the international insurance operations.
|
|
(2)
|
Includes, as of
December 31, 2015
and
December 31, 2014
,
938
securities with amortized cost of
$4,253 million
(fair value,
$4,325 million
) and
1,330
securities with amortized cost of
$6,864 million
(fair value,
$7,342 million
), respectively, that have been categorized based on expected NAIC Designations pending receipt of SVO ratings.
|
|
(3)
|
Includes
$316 million
of gross unrealized gains and
$0 million
of gross unrealized losses as of
December 31, 2015
, compared to
$328 million
of gross unrealized gains and
$1 million
of gross unrealized losses as of
December 31, 2014
, on securities classified as held-to-maturity.
|
|
(4)
|
As of
December 31, 2015
, includes gross unrealized losses of
$212 million
on public fixed maturities and
$196 million
on private fixed maturities considered to be other than high or highest quality and, as of
December 31, 2014
, includes gross unrealized losses of
$71 million
on public fixed maturities and
$64 million
on private fixed maturities considered to be other than high or highest quality.
|
|
(5)
|
On an amortized cost basis, as of
December 31, 2015
, includes
$190,638 million
of public fixed maturities and
$30,443 million
of private fixed maturities and, as of
December 31, 2014
, includes
$189,713 million
of public fixed maturities and
$28,520 million
of private fixed maturities.
|
|
(6)
|
On an amortized cost basis, as of
December 31, 2015
, includes
$5,836 million
of public fixed maturities and
$4,363 million
of private fixed maturities and, as of
December 31, 2014
, includes
$5,712 million
of public fixed maturities and
$3,840 million
of private fixed maturities.
|
|
(7)
|
On an amortized cost basis, as of
December 31, 2015
, securities considered below investment grade based on lowest of external rating agency ratings, total
$11,491 million
, or
5%
of the total fixed maturities, and include securities considered high or highest quality by the NAIC based on the rules described above.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Short-term investments and cash equivalents
|
|
$
|
765
|
|
|
$
|
765
|
|
|
$
|
196
|
|
|
$
|
196
|
|
|
Fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate securities
|
|
12,797
|
|
|
12,851
|
|
|
11,922
|
|
|
12,439
|
|
||||
|
Commercial mortgage-backed securities
|
|
1,860
|
|
|
1,862
|
|
|
2,505
|
|
|
2,546
|
|
||||
|
Residential mortgage-backed securities
|
|
1,411
|
|
|
1,428
|
|
|
1,640
|
|
|
1,676
|
|
||||
|
Asset-backed securities
|
|
1,295
|
|
|
1,299
|
|
|
1,180
|
|
|
1,198
|
|
||||
|
Foreign government bonds
|
|
680
|
|
|
694
|
|
|
621
|
|
|
650
|
|
||||
|
U.S. government authorities and agencies and obligations of U.S. states
|
|
326
|
|
|
369
|
|
|
303
|
|
|
372
|
|
||||
|
Total fixed maturities
|
|
18,369
|
|
|
18,503
|
|
|
18,171
|
|
|
18,881
|
|
||||
|
Equity securities
|
|
1,030
|
|
|
1,254
|
|
|
896
|
|
|
1,186
|
|
||||
|
Total trading account assets supporting insurance liabilities
|
|
$
|
20,164
|
|
|
$
|
20,522
|
|
|
$
|
19,263
|
|
|
$
|
20,263
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Short-term investments and cash equivalents
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Fixed maturities
|
|
1,016
|
|
|
964
|
|
|
849
|
|
|
878
|
|
||||
|
Equity securities(1)
|
|
537
|
|
|
596
|
|
|
502
|
|
|
577
|
|
||||
|
Total other trading account assets
|
|
$
|
1,554
|
|
|
$
|
1,561
|
|
|
$
|
1,352
|
|
|
$
|
1,456
|
|
|
(1)
|
Included in equity securities are perpetual preferred stock securities that have characteristics of both debt and equity securities.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
|
|
(in millions)
|
||||||
|
Commercial and agricultural mortgage loans
|
|
$
|
39,002
|
|
|
$
|
34,882
|
|
|
Uncollateralized loans
|
|
966
|
|
|
1,045
|
|
||
|
Residential property loans
|
|
301
|
|
|
392
|
|
||
|
Other collateralized loans
|
|
312
|
|
|
318
|
|
||
|
Total commercial mortgage and other loans(1)
|
|
$
|
40,581
|
|
|
$
|
36,637
|
|
|
(1)
|
Excluded from the table above are commercial mortgage and other loans held outside the general account in other entities and operations. For additional information regarding commercial mortgage and other loans held outside the general account, see “—Invested Assets of Other Entities and Operations” below.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||
|
|
|
Gross
Carrying
Value
|
|
% of
Total
|
|
Gross
Carrying
Value
|
|
% of
Total
|
||||||
|
|
|
($ in millions)
|
||||||||||||
|
Commercial and agricultural mortgage loans by region:
|
|
|
|
|
|
|
|
|
||||||
|
U.S. Regions:
|
|
|
|
|
|
|
|
|
||||||
|
Pacific
|
|
$
|
12,285
|
|
|
31.5
|
%
|
|
$
|
10,951
|
|
|
31.4
|
%
|
|
South Atlantic
|
|
7,764
|
|
|
19.9
|
|
|
6,939
|
|
|
19.9
|
|
||
|
Middle Atlantic
|
|
5,271
|
|
|
13.5
|
|
|
4,595
|
|
|
13.2
|
|
||
|
East North Central
|
|
2,704
|
|
|
6.9
|
|
|
2,662
|
|
|
7.6
|
|
||
|
West South Central
|
|
3,945
|
|
|
10.1
|
|
|
3,671
|
|
|
10.5
|
|
||
|
Mountain
|
|
1,697
|
|
|
4.4
|
|
|
1,646
|
|
|
4.7
|
|
||
|
New England
|
|
1,752
|
|
|
4.5
|
|
|
1,736
|
|
|
5.0
|
|
||
|
West North Central
|
|
608
|
|
|
1.6
|
|
|
580
|
|
|
1.7
|
|
||
|
East South Central
|
|
533
|
|
|
1.4
|
|
|
258
|
|
|
0.7
|
|
||
|
Subtotal-U.S.
|
|
36,559
|
|
|
93.8
|
|
|
33,038
|
|
|
94.7
|
|
||
|
Europe
|
|
1,608
|
|
|
4.1
|
|
|
921
|
|
|
2.6
|
|
||
|
Asia
|
|
406
|
|
|
1.0
|
|
|
693
|
|
|
2.0
|
|
||
|
Other
|
|
429
|
|
|
1.1
|
|
|
230
|
|
|
0.7
|
|
||
|
Total commercial and agricultural mortgage loans
|
|
$
|
39,002
|
|
|
100.0
|
%
|
|
$
|
34,882
|
|
|
100.0
|
%
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||
|
|
|
Gross
Carrying
Value
|
|
% of
Total
|
|
Gross
Carrying
Value
|
|
% of
Total
|
||||||
|
|
|
($ in millions)
|
||||||||||||
|
Commercial and agricultural mortgage loans by property type:
|
|
|
|
|
|
|
|
|
||||||
|
Industrial
|
|
$
|
6,510
|
|
|
16.7
|
%
|
|
$
|
6,266
|
|
|
18.0
|
%
|
|
Retail
|
|
6,813
|
|
|
17.5
|
|
|
6,515
|
|
|
18.7
|
|
||
|
Office
|
|
8,498
|
|
|
21.8
|
|
|
7,111
|
|
|
20.4
|
|
||
|
Apartments/Multi-Family
|
|
10,079
|
|
|
25.8
|
|
|
8,536
|
|
|
24.4
|
|
||
|
Other
|
|
3,133
|
|
|
8.0
|
|
|
2,972
|
|
|
8.5
|
|
||
|
Agricultural properties
|
|
2,130
|
|
|
5.5
|
|
|
1,787
|
|
|
5.1
|
|
||
|
Hospitality
|
|
1,839
|
|
|
4.7
|
|
|
1,695
|
|
|
4.9
|
|
||
|
Total commercial and agricultural mortgage loans
|
|
$
|
39,002
|
|
|
100.0
|
%
|
|
$
|
34,882
|
|
|
100.0
|
%
|
|
|
|
December 31, 2015
|
||||||||||||||
|
|
|
Debt Service Coverage Ratio
|
||||||||||||||
|
|
|
Greater
than
1.2x
|
|
1.0x
to
< 1.2x
|
|
Less
than
1.0x
|
|
Total
Commercial
and Agricultural
Mortgage
Loans
|
||||||||
|
Loan-to-Value Ratio
|
|
(in millions)
|
||||||||||||||
|
0%-59.99%
|
|
$
|
21,684
|
|
|
$
|
446
|
|
|
$
|
165
|
|
|
$
|
22,295
|
|
|
60%-69.99%
|
|
10,491
|
|
|
318
|
|
|
211
|
|
|
11,020
|
|
||||
|
70%-79.99%
|
|
4,874
|
|
|
386
|
|
|
97
|
|
|
5,357
|
|
||||
|
Greater than 80%
|
|
89
|
|
|
118
|
|
|
123
|
|
|
330
|
|
||||
|
Total commercial and agricultural mortgage loans
|
|
$
|
37,138
|
|
|
$
|
1,268
|
|
|
$
|
596
|
|
|
$
|
39,002
|
|
|
|
|
December 31, 2015
|
|||||
|
|
|
Gross
Carrying
Value
|
|
% of
Total
|
|||
|
Year of Origination
|
|
($ in millions)
|
|||||
|
2015
|
|
$
|
8,120
|
|
|
20.8
|
%
|
|
2014
|
|
7,394
|
|
|
18.9
|
|
|
|
2013
|
|
8,019
|
|
|
20.6
|
|
|
|
2012
|
|
4,171
|
|
|
10.7
|
|
|
|
2011
|
|
4,173
|
|
|
10.7
|
|
|
|
2010
|
|
2,467
|
|
|
6.3
|
|
|
|
2009
|
|
737
|
|
|
1.9
|
|
|
|
2008 & Prior
|
|
3,921
|
|
|
10.1
|
|
|
|
Total commercial and agricultural mortgage loans
|
|
$
|
39,002
|
|
|
100.0
|
%
|
|
|
|
December 31, 2015
|
|||||
|
|
|
Amortized
Cost
|
|
% of Total
|
|||
|
|
|
($ in millions)
|
|||||
|
Vintage
|
|
|
|
|
|||
|
Maturing in 2016
|
|
$
|
2,390
|
|
|
5.9
|
%
|
|
Maturing in 2017
|
|
2,394
|
|
|
5.9
|
|
|
|
Maturing in 2018
|
|
3,826
|
|
|
9.4
|
|
|
|
Maturing in 2019
|
|
2,982
|
|
|
7.3
|
|
|
|
Maturing in 2020
|
|
4,265
|
|
|
10.5
|
|
|
|
Maturing in 2021
|
|
3,120
|
|
|
7.7
|
|
|
|
Maturing in 2022
|
|
3,298
|
|
|
8.1
|
|
|
|
Maturing in 2023
|
|
2,514
|
|
|
6.2
|
|
|
|
Maturing in 2024
|
|
2,750
|
|
|
6.8
|
|
|
|
Maturing in 2025
|
|
4,538
|
|
|
11.2
|
|
|
|
Maturing in 2026
|
|
1,086
|
|
|
2.7
|
|
|
|
Maturing in 2027 and beyond
|
|
7,418
|
|
|
18.3
|
|
|
|
Total commercial mortgage and other loans
|
|
$
|
40,581
|
|
|
100.0
|
%
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
|
|
(in millions)
|
||||||
|
Allowance, beginning of year
|
|
$
|
99
|
|
|
$
|
164
|
|
|
Addition to (release of) allowance for losses
|
|
(4
|
)
|
|
(55
|
)
|
||
|
Charge-offs, net of recoveries
|
|
0
|
|
|
(8
|
)
|
||
|
Change in foreign exchange
|
|
0
|
|
|
(2
|
)
|
||
|
Allowance, end of period
|
|
$
|
95
|
|
|
$
|
99
|
|
|
Loan specific reserve
|
|
$
|
0
|
|
|
$
|
5
|
|
|
Portfolio reserve
|
|
$
|
95
|
|
|
$
|
94
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Non-redeemable preferred stocks
|
|
$
|
21
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
21
|
|
|
$
|
23
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
25
|
|
|
Mutual fund common stocks(1)
|
|
2,918
|
|
|
333
|
|
|
76
|
|
|
3,175
|
|
|
2,638
|
|
|
468
|
|
|
30
|
|
|
3,076
|
|
||||||||
|
Other common stocks
|
|
2,033
|
|
|
1,339
|
|
|
31
|
|
|
3,341
|
|
|
2,064
|
|
|
1,190
|
|
|
24
|
|
|
3,230
|
|
||||||||
|
Total equity securities(2)
|
|
$
|
4,972
|
|
|
$
|
1,673
|
|
|
$
|
108
|
|
|
$
|
6,537
|
|
|
$
|
4,725
|
|
|
$
|
1,661
|
|
|
$
|
55
|
|
|
$
|
6,331
|
|
|
(1)
|
Includes mutual fund shares representing our interest in the underlying assets of certain of our separate account investments supporting corporate-owned life insurance. These mutual funds invest primarily in high yield bonds.
|
|
(2)
|
Amounts presented exclude investments in private equity and hedge funds and other investments which are reported in “Other long-term investments.”
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
|
|
(in millions)
|
||||||
|
Joint ventures and limited partnerships:
|
|
|
|
|
||||
|
Non-real estate-related(1)
|
|
$
|
4,087
|
|
|
$
|
4,267
|
|
|
Real estate-related
|
|
285
|
|
|
235
|
|
||
|
Real estate held through direct ownership
|
|
1,456
|
|
|
1,795
|
|
||
|
Other(2)
|
|
721
|
|
|
872
|
|
||
|
Total other long-term investments
|
|
$
|
6,549
|
|
|
$
|
7,169
|
|
|
(1)
|
Primarily includes investments in private equity and hedge funds.
|
|
(2)
|
Primarily includes derivatives and member and activity-based stock held in the Federal Home Loan Banks of New York and Boston. For additional information regarding our holdings in the Federal Home Loan Banks of New York and Boston, see Note 14 to the Consolidated Financial Statements.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
|
|
(in millions)
|
||||||
|
Fixed maturities:
|
|
|
|
|
||||
|
Public, available-for-sale, at fair value
|
|
$
|
94
|
|
|
$
|
96
|
|
|
Private, available-for-sale, at fair value
|
|
39
|
|
|
52
|
|
||
|
Other trading account assets, at fair value
|
|
12,609
|
|
|
9,068
|
|
||
|
Equity securities, available-for-sale, at fair value
|
|
11
|
|
|
8
|
|
||
|
Commercial mortgage and other loans, at book value(1)
|
|
302
|
|
|
419
|
|
||
|
Other long-term investments
|
|
516
|
|
|
986
|
|
||
|
Short-term investments
|
|
388
|
|
|
347
|
|
||
|
Total investments
|
|
$
|
13,959
|
|
|
$
|
10,976
|
|
|
(1)
|
Book value is generally based on unpaid principal balance net of any allowance for losses, the lower of cost or fair value, or fair value, depending on the loan.
|
|
•
|
On January 2, 2015, we repurchased and canceled all of the outstanding shares of our Class B Stock for a cash purchase price of $651 million. In accordance with the terms of the Class B Stock repurchase agreement, the holders of a majority of the Class B Stock have exercised their right to dispute the calculation of the purchase price. As a result of this dispute, the final purchase price of the Class B Stock is expected to change;
|
|
•
|
We repurchased $1 billion of shares of our Common Stock and declared aggregate Common Stock dividends of $1.1 billion;
|
|
•
|
We issued $1.0 billion of junior subordinated notes to be utilized for general corporate purposes;
|
|
•
|
We obtained additional financing for Guideline AXXX reserves by increasing the amount outstanding under our captive financing facilities by $262 million;
|
|
•
|
We restructured the terms of an existing $3.0 billion captive financing facility for Regulation XXX reserves by converting $600 million of outstanding debt into a credit-linked note structure; and
|
|
•
|
We obtained additional financing for Regulation XXX reserves by increasing the amount outstanding under a captive financing facility by $665 million. An additional $300 million of subordinated surplus notes with an affiliate was paid down under a separate financing facility.
|
|
|
|
December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Equity(1)
|
|
$
|
29,605
|
|
|
$
|
25,720
|
|
|
Junior subordinated debt (i.e., hybrid securities)
|
|
5,884
|
|
|
4,884
|
|
||
|
Other capital debt
|
|
6,100
|
|
|
8,451
|
|
||
|
Total capital
|
|
$
|
41,589
|
|
|
$
|
39,055
|
|
|
(1)
|
Amounts attributable to Prudential Financial, excluding AOCI.
|
|
•
|
Equity market exposure affecting the statutory capital of the Company as a whole, which we manage through our equity hedge program and on-balance sheet and contingent sources of capital;
|
|
•
|
Our decision to manage a portion of our interest rate risk internally, on a net basis, at an enterprise level. In implementing this strategy, we execute intercompany derivative transactions between our Corporate and Other operations and certain business segments. We limit our exposure to the resulting net interest rate risk at the enterprise level through options embedded in our hedging strategy that may be exercised if interest rates decline below certain thresholds. The results of this strategy are described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Corporate and Other”; and
|
|
•
|
Activities of our business segments, including those for which specific risk mitigation strategies have been implemented, such as our living benefits hedging program that covers certain risks associated with our variable annuity products.
|
|
|
|
Dividend Amount
|
|
Shares Repurchased
|
|||||||||||
|
Quarterly period ended:
|
|
Per Share
|
|
Aggregate
|
|
Shares
|
|
Total Cost
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
(in millions, except per share data)
|
|||||||||||||
|
December 31, 2015
|
|
$
|
0.70
|
|
|
$
|
318
|
|
|
3.1
|
|
|
$
|
250
|
|
|
September 30, 2015
|
|
$
|
0.58
|
|
|
$
|
265
|
|
|
3.0
|
|
|
$
|
250
|
|
|
June 30, 2015
|
|
$
|
0.58
|
|
|
$
|
265
|
|
|
2.9
|
|
|
$
|
250
|
|
|
March 31, 2015
|
|
$
|
0.58
|
|
|
$
|
267
|
|
|
3.1
|
|
|
$
|
250
|
|
|
|
|
Dividend Amount
|
|
Shares Repurchased
|
|||||||||||
|
Year ended:
|
|
Per Share
|
|
Aggregate
|
|
Shares
|
|
Total Cost
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
(in millions, except per share data)
|
|||||||||||||
|
December 31, 2014
|
|
$
|
2.17
|
|
|
$
|
1,005
|
|
|
11.6
|
|
|
$
|
1,000
|
|
|
December 31, 2013
|
|
$
|
1.73
|
|
|
$
|
810
|
|
|
10.0
|
|
|
$
|
750
|
|
|
December 31, 2012
|
|
$
|
1.60
|
|
|
$
|
749
|
|
|
11.5
|
|
|
$
|
650
|
|
|
December 31, 2011
|
|
$
|
1.45
|
|
|
$
|
689
|
|
|
19.8
|
|
|
$
|
1,000
|
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Sources:
|
|
|
|
|
||||
|
Dividends and/or returns of capital from subsidiaries(1)
|
|
$
|
4,632
|
|
|
$
|
2,476
|
|
|
Proceeds from the issuance of long-term senior debt
|
|
0
|
|
|
1,794
|
|
||
|
Net receipts under intercompany loan agreements(2)
|
|
3,271
|
|
|
1,242
|
|
||
|
Proceeds from the issuance of junior subordinated debt (hybrid securities)
|
|
1,000
|
|
|
0
|
|
||
|
Net income tax receipts
|
|
0
|
|
|
1,231
|
|
||
|
Proceeds from stock-based compensation and exercise of stock options
|
|
379
|
|
|
431
|
|
||
|
Interest income from subsidiaries on intercompany agreements, net of interest paid
|
|
257
|
|
|
375
|
|
||
|
Proceeds from the issuance of retail medium-term notes
|
|
180
|
|
|
141
|
|
||
|
Other, net
|
|
190
|
|
|
0
|
|
||
|
Total sources
|
|
9,909
|
|
|
7,690
|
|
||
|
Uses:
|
|
|
|
|
||||
|
Capital contributions to subsidiaries(3)
|
|
2,545
|
|
|
3,065
|
|
||
|
Maturities of medium-term notes, excluding retail medium-term notes
|
|
2,148
|
|
|
1,473
|
|
||
|
Common Stock dividends(4)
|
|
1,117
|
|
|
1,008
|
|
||
|
Share repurchases(5)
|
|
1,013
|
|
|
1,000
|
|
||
|
Interest paid on external debt
|
|
970
|
|
|
986
|
|
||
|
Class B Stock repurchase settlement
|
|
651
|
|
|
0
|
|
||
|
Expenditures for new home office construction
|
|
579
|
|
|
0
|
|
||
|
Repayments of retail medium-term notes
|
|
77
|
|
|
58
|
|
||
|
Class B Stock dividends
|
|
0
|
|
|
19
|
|
||
|
Net income tax payments
|
|
46
|
|
|
0
|
|
||
|
Repayments of short-term debt
|
|
17
|
|
|
94
|
|
||
|
Other, net
|
|
0
|
|
|
25
|
|
||
|
Total uses
|
|
9,163
|
|
|
7,728
|
|
||
|
Net increase (decrease) in cash and short-term investments
|
|
$
|
746
|
|
|
$
|
(38
|
)
|
|
(1)
|
2015
includes dividends and/or returns of capital of $1,950 million from Prudential Insurance, $1,818 million from international insurance subsidiaries, $552 million from Prudential Annuities Holding Company, of which $450 million was from PALAC, $266 million from Asset Management subsidiaries, and $46 million from other subsidiaries.
2014
includes dividends and/or returns of capital of $966 million from international insurance subsidiaries, $578 million from Asset Management subsidiaries, $444 million from Prudential Annuities Holding Company, of which $342 million was from PALAC, $400 million from Prudential Insurance and $88 million from other subsidiaries.
|
|
(2)
|
2015
includes net receipts from subsidiaries of $2,113 million from Pruco Re, $300 million from Prudential Arizona Reinsurance Term Company, $187 million from Asset Management subsidiaries and $6 million from other subsidiaries, net proceeds of $820 million from the issuance of notes to international insurance subsidiaries, and net proceeds of $496 million from the issuance of notes to various affiliates to finance new home office construction, offset by net borrowing of $317 million by Pruco Life Insurance Company (“Pruco Life”) and $34 million by Pruco Life Insurance Company of New Jersey (“PLNJ”), and net repayments of $200 million to Pruco Re, and $100 million to Prudential Mortgage Capital Company.
2014
includes net receipts from subsidiaries of $1 billion from Prudential Arizona Reinsurance Captive Company, $402 million from Pruco Life, and $200 million from PALAC, and net proceeds of $558 million from the issuance of notes to international insurance subsidiaries, offset by net borrowings by subsidiaries of $312 million by Asset Management subsidiaries, $223 million by Pruco Re, $125 million by Prudential Term Reinsurance Company, $17 million by PLNJ, and net repayments of $140 million to Prudential Holdings, LLC and $101 million to international insurance subsidiaries.
|
|
(3)
|
2015
includes capital contributions of $1,960 million to Pruco Re, $268 million to Asset Management subsidiaries, $222 million to international insurance subsidiaries and $95 million to other subsidiaries.
2014
includes capital contributions of $1,713 million to Pruco Re, $636 million to international subsidiaries, $320 million to Asset Management subsidiaries, $300 million to a special-purpose subsidiary in connection with a reserve financing, and $96 million to other subsidiaries.
|
|
(4)
|
Includes cash payments made on dividends declared in prior periods.
|
|
(5)
|
2015
includes $13 million related to 2014 trades that settled in January 2015.
|
|
|
|
December 31,
|
||||||
|
|
|
2015(1)
|
|
2014(1)
|
||||
|
|
|
|
|
|
||||
|
|
|
(in billions)
|
||||||
|
Prudential Insurance
|
|
$
|
172.0
|
|
|
$
|
169.5
|
|
|
PLIC
|
|
54.0
|
|
|
0.0
|
|
||
|
Prudential Retirement Insurance and Annuity Company (“PRIAC”)
|
|
25.3
|
|
|
24.8
|
|
||
|
Other(2)
|
|
(24.2
|
)
|
|
27.7
|
|
||
|
Total future policy benefits and policyholders’ account balances
|
|
$
|
227.1
|
|
|
$
|
222.0
|
|
|
(1)
|
Amounts are reflected gross of affiliated reinsurance recoverables. 2014 has been revised to conform to current period presentation.
|
|
(2)
|
Includes PALAC, Pruco Life and the impact of intercompany eliminations.
|
|
|
|
December 31,
|
||||||
|
|
|
2015(1)
|
|
2014(1)
|
||||
|
|
|
|
|
|
||||
|
|
|
(in billions)
|
||||||
|
Prudential of Japan(2)
|
|
$
|
37.4
|
|
|
$
|
34.5
|
|
|
Gibraltar Life(3)
|
|
84.3
|
|
|
85.4
|
|
||
|
All other international insurance subsidiaries(4)
|
|
12.4
|
|
|
12.0
|
|
||
|
Total future policy benefits and policyholders’ account balances
|
|
$
|
134.1
|
|
|
$
|
131.9
|
|
|
(1)
|
Amounts are reflected gross of affiliated reinsurance recoverables. 2014 has been revised to conform to current period presentation.
|
|
(2)
|
As of
December 31, 2015
and
2014
, $9.1 billion and $8.0 billion, respectively, of the insurance-related liabilities for Prudential of Japan are associated with U.S. dollar-denominated products that are coinsured to our domestic insurance operations and supported by U.S. dollar-denominated assets.
|
|
(3)
|
Includes The Prudential Gibraltar Financial Life Insurance Co., Ltd., a wholly-owned subsidiary of Gibraltar Life.
|
|
(4)
|
Represents our international insurance operations, excluding Japan.
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||||||
|
|
|
Prudential
Insurance
|
|
PLIC
|
|
PRIAC
|
|
Other(1)
|
|
Total
|
|
December 31,
2014 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in billions)
|
||||||||||||||||||||||
|
Cash and short-term investments
|
|
$
|
6.2
|
|
|
$
|
2.4
|
|
|
$
|
0.9
|
|
|
$
|
0.8
|
|
|
$
|
10.3
|
|
|
$
|
7.7
|
|
|
Fixed maturity investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
High or highest quality
|
|
88.9
|
|
|
32.1
|
|
|
17.8
|
|
|
8.7
|
|
|
147.5
|
|
|
157.8
|
|
||||||
|
Other than high or highest quality
|
|
5.9
|
|
|
3.9
|
|
|
1.8
|
|
|
0.7
|
|
|
12.3
|
|
|
11.6
|
|
||||||
|
Subtotal
|
|
94.8
|
|
|
36.0
|
|
|
19.6
|
|
|
9.4
|
|
|
159.8
|
|
|
169.4
|
|
||||||
|
Public equity securities
|
|
0.3
|
|
|
2.8
|
|
|
0.0
|
|
|
0.1
|
|
|
3.2
|
|
|
4.0
|
|
||||||
|
Total
|
|
$
|
101.3
|
|
|
$
|
41.2
|
|
|
$
|
20.5
|
|
|
$
|
10.3
|
|
|
$
|
173.3
|
|
|
$
|
181.1
|
|
|
(1)
|
Includes PALAC and Pruco Life.
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||
|
|
|
Prudential
of Japan
|
|
Gibraltar
Life(1)
|
|
All
Other(2)
|
|
Total
|
|
December 31,
2014 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in billions)
|
||||||||||||||||||
|
Cash and short-term investments
|
|
$
|
0.6
|
|
|
$
|
1.4
|
|
|
$
|
1.5
|
|
|
$
|
3.5
|
|
|
$
|
2.1
|
|
|
Fixed maturity investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
High or highest quality(3)
|
|
29.2
|
|
|
79.0
|
|
|
15.6
|
|
|
123.8
|
|
|
123.9
|
|
|||||
|
Other than high or highest quality
|
|
0.5
|
|
|
2.5
|
|
|
0.3
|
|
|
3.3
|
|
|
3.0
|
|
|||||
|
Subtotal
|
|
29.7
|
|
|
81.5
|
|
|
15.9
|
|
|
127.1
|
|
|
126.9
|
|
|||||
|
Public equity securities
|
|
1.7
|
|
|
2.4
|
|
|
0.5
|
|
|
4.6
|
|
|
4.3
|
|
|||||
|
Total
|
|
$
|
32.0
|
|
|
$
|
85.3
|
|
|
$
|
17.9
|
|
|
$
|
135.2
|
|
|
$
|
133.3
|
|
|
(1)
|
Includes Prudential Gibraltar.
|
|
(2)
|
Represents our international insurance operations, excluding Japan.
|
|
(3)
|
Of the $
123.8 billion
of fixed maturity investments that are not designated as held-to-maturity and considered high or highest quality as of
December 31, 2015
, $87.3 billion, or 71%, were invested in government or government agency bonds.
|
|
•
|
Income Hedges—We hedge a portion of our prospective yen-based earnings streams by entering into external forward currency derivative contracts that effectively fix the currency exchange rates for that portion of earnings, thereby reducing volatility from foreign currency exchange rate movements. As of
December 31, 2015
, we have hedged 100%, 73% and 28% of expected yen-based earnings for 2016, 2017 and 2018, respectively.
|
|
•
|
Equity Hedges—We hold both internal and external hedges primarily to hedge our U.S. dollar-equivalent equity. These hedges also mitigate volatility in the solvency margins of yen-based subsidiaries resulting from changes in the market value of their U.S. dollar-denominated investments hedging our U.S. dollar-equivalent equity attributable to changes in the yen-U.S. dollar exchange rate.
|
|
|
|
Year ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
(in millions)
|
||||||
|
Cash Settlements:
|
|
|
|
|
||||
|
Income Hedges(External)(1)
|
|
$
|
286
|
|
|
$
|
293
|
|
|
Equity Hedges:
|
|
|
|
|
||||
|
Internal
|
|
1,061
|
|
|
697
|
|
||
|
External
|
|
(84
|
)
|
|
23
|
|
||
|
Total Equity Hedges(2)
|
|
$
|
977
|
|
|
$
|
720
|
|
|
Total Cash Settlements
|
|
$
|
1,263
|
|
|
$
|
1,013
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
(in millions)
|
||||||
|
Assets/Liabilities:
|
|
|
|
|
||||
|
Income Hedges(External)(3)
|
|
$
|
162
|
|
|
$
|
404
|
|
|
Equity Hedges:
|
|
|
|
|
||||
|
Internal
|
|
964
|
|
|
1,841
|
|
||
|
External
|
|
699
|
|
|
597
|
|
||
|
Total Equity Hedges(4)
|
|
$
|
1,663
|
|
|
$
|
2,438
|
|
|
Total Assets/Liabilities
|
|
$
|
1,825
|
|
|
$
|
2,842
|
|
|
(1)
|
Includes Korean won related cash settlements of $5 million and $(23) million for the year ended
December 31, 2015
and
2014
, respectively.
|
|
(2)
|
Includes Korean won related cash settlements of $2 million and $(2) million in internal equity hedges for the year ended
December 31, 2015
and
2014
, respectively, and Taiwan dollar related cash settlements of $7 million and $4 million in external equity hedges for the year ended
December 31, 2015
and
2014
, respectively.
|
|
(3)
|
Includes a Korean won related asset of $29 million and asset of $2.5 million as of
December 31, 2015
and
2014
, respectively.
|
|
(4)
|
As of
December 31, 2015
, approximately 31%, 13% and 56% of the net asset is scheduled to settle in 2016, 2017 and thereafter, respectively. The net market value of the assets/liabilities will vary with changing market conditions to the extent there are no corresponding offsetting positions.
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
|
PFI
Excluding Closed Block Division |
|
Closed
Block Division |
|
Consolidated
|
|
PFI
Excluding Closed Block Division |
|
Closed
Block Division |
|
Consolidated
|
||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||
|
Securities sold under agreements to repurchase
|
$
|
5,421
|
|
|
$
|
2,461
|
|
|
$
|
7,882
|
|
|
$
|
5,492
|
|
|
$
|
3,915
|
|
|
$
|
9,407
|
|
|
Cash collateral for loaned securities
|
2,095
|
|
|
1,401
|
|
|
3,496
|
|
|
3,064
|
|
|
1,177
|
|
|
4,241
|
|
||||||
|
Securities sold but not yet purchased
|
2
|
|
|
0
|
|
|
2
|
|
|
77
|
|
|
0
|
|
|
77
|
|
||||||
|
Total(1)
|
$
|
7,518
|
|
|
$
|
3,862
|
|
|
$
|
11,380
|
|
|
$
|
8,633
|
|
|
$
|
5,092
|
|
|
$
|
13,725
|
|
|
Portion of above securities that may be returned to the Company overnight requiring immediate return of the cash collateral(2)
|
$
|
5,574
|
|
|
$
|
2,117
|
|
|
$
|
7,691
|
|
|
$
|
6,610
|
|
|
$
|
1,975
|
|
|
$
|
8,585
|
|
|
Weighted average maturity, in days(3)
|
8
|
|
|
17
|
|
|
|
|
23
|
|
|
52
|
|
|
|
||||||||
|
(1)
|
The daily weighted average outstanding balance for the year ended
December 31, 2015
and
2014
was $8,221 million and $8,807 million, respectively, for PFI excluding the Closed Block division, and $4,755 million and $5,165 million, respectively, for the Closed Block division.
|
|
(2)
|
Amount for PFI excluding the Closed Block division as of December 31, 2015 includes $2,256 million of securities that had a term greater than one day due to the timing of the January 1, 2016 holiday.
|
|
(3)
|
Excludes securities that may be returned to the Company overnight.
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
|
Prudential
Financial
|
|
Subsidiaries |
|
Consolidated
|
|
Prudential
Financial
|
|
Subsidiaries |
|
Consolidated
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
General obligation short-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial paper(1)
|
$
|
80
|
|
|
$
|
384
|
|
|
$
|
464
|
|
|
$
|
97
|
|
|
$
|
386
|
|
|
$
|
483
|
|
|
Current portion of long-term debt and other(2)(3)
|
751
|
|
|
1
|
|
|
752
|
|
|
2,222
|
|
|
1,134
|
|
|
3,356
|
|
||||||
|
Subtotal
|
831
|
|
|
385
|
|
|
1,216
|
|
|
2,319
|
|
|
1,520
|
|
|
3,839
|
|
||||||
|
General obligation long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Senior debt(3)
|
10,603
|
|
|
1,323
|
|
|
11,926
|
|
|
11,177
|
|
|
1,927
|
|
|
13,104
|
|
||||||
|
Junior subordinated debt
|
5,884
|
|
|
0
|
|
|
5,884
|
|
|
4,884
|
|
|
0
|
|
|
4,884
|
|
||||||
|
Surplus notes(4)
|
0
|
|
|
1,352
|
|
|
1,352
|
|
|
0
|
|
|
1,341
|
|
|
1,341
|
|
||||||
|
Subtotal
|
16,487
|
|
|
2,675
|
|
|
19,162
|
|
|
16,061
|
|
|
3,268
|
|
|
19,329
|
|
||||||
|
Total general obligations
|
17,318
|
|
|
3,060
|
|
|
20,378
|
|
|
18,380
|
|
|
4,788
|
|
|
23,168
|
|
||||||
|
Limited recourse borrowing:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Long-term debt
|
0
|
|
|
565
|
|
|
565
|
|
|
0
|
|
|
502
|
|
|
502
|
|
||||||
|
Total limited recourse borrowings(5)
|
0
|
|
|
565
|
|
|
565
|
|
|
0
|
|
|
502
|
|
|
502
|
|
||||||
|
Total borrowings
|
$
|
17,318
|
|
|
$
|
3,625
|
|
|
$
|
20,943
|
|
|
$
|
18,380
|
|
|
$
|
5,290
|
|
|
$
|
23,670
|
|
|
(1)
|
See “—Alternative Sources of Liquidity” above for a discussion on our use of commercial paper.
|
|
(2)
|
Includes collateralized borrowings from the Federal Home Loan Bank of New York of $280 million at December 31, 2014. For additional information on these borrowings, see Note 14 to the Consolidated Financial Statements.
|
|
(3)
|
Does not include $2,957 million and $2,705 million of medium-term notes of consolidated trust entities secured by funding agreements purchased with the proceeds of such notes as of
December 31, 2015
and
2014
respectively, or $1.0 billion and $1.9 billion of collateralized funding agreements issued to the Federal Home Loan Bank of New York at
December 31, 2015
and
2014
respectively. These notes and funding agreements are included in “Policyholders’ account balances.” For additional information on these obligations, see Notes 10 and 14 to the Consolidated Financial Statements.
|
|
(4)
|
Amounts are net of assets under set-off arrangements of
$4,889 million
and $3,973 million, as of December 31, 2015 and 2014 respectively.
|
|
(5)
|
Limited and non-recourse borrowing primarily represents mortgage debt of our subsidiaries that has recourse only to real estate investment property.
|
|
|
|
Surplus Note
|
|
Outstanding as of
December 31, 2015
|
|
|
|||||||
|
Credit Linked
Note Structures:
|
|
Original
Issue Dates
|
|
Maturity
Dates
|
|
|
Facility
Size
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
($ in millions)
|
|||||||||||
|
XXX
|
|
2011-2014
|
|
2021-2024
|
|
$
|
1,750
|
|
(1)
|
|
$
|
2,000
|
|
|
AXXX
|
|
2013
|
|
2033
|
|
2,100
|
|
|
|
3,500
|
|
||
|
XXX
|
|
2014
|
|
2034
|
|
1,600
|
|
(1)(2)
|
|
1,600
|
|
||
|
XXX
|
|
2014
|
|
2024
|
|
1,050
|
|
|
|
1,750
|
|
||
|
Total Credit Linked Note Structures
|
|
|
|
|
|
$
|
6,500
|
|
|
|
$
|
8,850
|
|
|
(1)
|
Prudential Financial has agreed to reimburse any amounts paid under the credit-linked notes issued in these structures.
|
|
(2)
|
The $1.6 billion surplus note represents an intercompany transaction that eliminates upon consolidation.
|
|
|
|
A.M.
Best(1)
|
|
S&P(2)
|
|
Moody’s(3)
|
|
Fitch(4)
|
|
Last review date
|
|
5/13/2015
|
|
9/18/2015
|
|
11/11/2015
|
|
12/15/2015
|
|
Current outlook
|
|
Stable
|
|
Stable
|
|
Stable
|
|
Positive
|
|
|
|
|
|
|
|
|
|
|
|
Financial Strength Ratings:
|
|
|
|
|
|
|
|
|
|
The Prudential Insurance Company of America
|
|
A+
|
|
AA-
|
|
A1
|
|
A+
|
|
Pruco Life Insurance Company
|
|
A+
|
|
AA-
|
|
A1
|
|
A+
|
|
Pruco Life Insurance Company of New Jersey
|
|
A+
|
|
AA-
|
|
NR*
|
|
A+
|
|
Prudential Annuities Life Assurance Corporation
|
|
A+
|
|
AA-
|
|
NR
|
|
A+
|
|
Prudential Retirement Insurance and Annuity Company
|
|
A+
|
|
AA-
|
|
A1
|
|
A+
|
|
The Prudential Life Insurance Company Ltd. (Prudential of Japan)
|
|
NR
|
|
A+
|
|
NR
|
|
NR
|
|
Gibraltar Life Insurance Company, Ltd.
|
|
NR
|
|
A+
|
|
NR
|
|
NR
|
|
The Prudential Gibraltar Financial Life Insurance Co. Ltd
|
|
NR
|
|
A+
|
|
NR
|
|
NR
|
|
Prudential Life Insurance Co. of Taiwan, Inc.(5)
|
|
NR
|
|
twAA+
|
|
NR
|
|
NR
|
|
|
|
|
|
|
|
|
|
|
|
Credit Ratings:
|
|
|
|
|
|
|
|
|
|
Prudential Financial, Inc.:
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
AMB-1
|
|
A-1
|
|
P-2
|
|
F2
|
|
Long-term senior debt
|
|
a-
|
|
A
|
|
Baa1
|
|
BBB+
|
|
Junior subordinated long-term debt
|
|
bbb
|
|
BBB+
|
|
Baa2
|
|
BBB-
|
|
The Prudential Insurance Company of America:
|
|
|
|
|
|
|
|
|
|
Capital and surplus notes
|
|
a
|
|
A
|
|
A3
|
|
A-
|
|
Prudential Funding, LLC:
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
AMB-1
|
|
A-1+
|
|
P-1
|
|
F1
|
|
Long-term senior debt
|
|
a+
|
|
AA-
|
|
A2
|
|
A
|
|
PRICOA Global Funding I:
|
|
|
|
|
|
|
|
|
|
Long-term senior debt
|
|
aa-
|
|
AA-
|
|
A1
|
|
A+
|
|
(1)
|
A.M. Best Company, which we refer to as A.M. Best, financial strength ratings for insurance companies range from “A++ (superior)” to “s (suspended).” A rating of A+ is the second highest of sixteen rating categories. A.M. Best long-term credit ratings range from “aaa (exceptional)” to “s (suspended)”. A.M. Best short-term credit ratings range from “AMB-1+,” which represents an exceptional ability to repay short-term debt obligations, to “s(suspended)”.
|
|
(2)
|
Standard & Poor’s Rating Services, which we refer to as S&P, financial strength ratings for insurance companies range from “AAA (extremely strong)” to “D (default).” A rating of AA- is the fourth highest of twenty-three rating categories. S&P’s long-term issue credit ratings range from “AAA (extremely strong)” to “D (default).” S&P short-term ratings range from “A-1 (highest category)” to “D (default).”
|
|
(3)
|
Moody’s Investors Service, Inc., which we refer to as Moody’s, insurance financial strength ratings range from “Aaa (exceptional)” to “C (lowest).” A rating of A1 is the fifth highest of twenty-one rating categories. Numeric modifiers are used to refer to the ranking within the group—with 1 being the highest and 3 being the lowest. These modifiers are used to indicate relative strength within a category. Moody’s credit ratings range from “Aaa (highest)” to “C (default). Moody’s short-term ratings range from “Prime-1 (P-1),” which represents a superior ability for repayment of senior short-term debt obligations, to “Prime-3 (P-3),” which represents an acceptable ability for repayment of such obligations. Issuers rated “Not Prime” do not fall within any of the Prime rating categories.
|
|
(4)
|
Fitch Ratings Inc., which we refer to as Fitch, financial strength ratings range from “AAA (exceptionally strong)” to “C (distressed).” A rating of A+ is the fifth highest of nineteen rating categories. Fitch long-term credit ratings range from “AAA (highest credit quality),” which denotes exceptionally strong capacity for timely payment of financial commitments, to “D (default).” Investment grade ratings range between “AAA” and “BBB.” Short-term ratings range from “F1+ (highest credit quality)” to “C (high default risk).”
|
|
(5)
|
This rating for Prudential Life Insurance Company of Taiwan, Inc. was affirmed on December 10, 2015 by Taiwan Ratings Corporation, a partner of S&P.
|
|
|
|
Estimated Payments Due by Period
|
||||||||||||||||||
|
|
|
Total
|
|
2016
|
|
2017-2018
|
|
2019-2020
|
|
2021 and
thereafter
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Short-term and long-term debt obligations(1)
|
|
$
|
41,678
|
|
|
$
|
2,219
|
|
|
$
|
4,921
|
|
|
$
|
4,549
|
|
|
$
|
29,989
|
|
|
Operating and capital lease obligations(2)
|
|
665
|
|
|
131
|
|
|
209
|
|
|
127
|
|
|
198
|
|
|||||
|
Purchase obligations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commitments to purchase or fund investments(3)
|
|
3,879
|
|
|
3,010
|
|
|
443
|
|
|
289
|
|
|
137
|
|
|||||
|
Commercial mortgage loan commitments(4)
|
|
2,272
|
|
|
1,619
|
|
|
600
|
|
|
30
|
|
|
23
|
|
|||||
|
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Insurance liabilities(5)
|
|
1,121,869
|
|
|
41,598
|
|
|
69,030
|
|
|
71,005
|
|
|
940,236
|
|
|||||
|
Other(6)
|
|
11,602
|
|
|
11,405
|
|
|
63
|
|
|
53
|
|
|
81
|
|
|||||
|
Total
|
|
$
|
1,181,965
|
|
|
$
|
59,982
|
|
|
$
|
75,266
|
|
|
$
|
76,053
|
|
|
$
|
970,664
|
|
|
(1)
|
The estimated payments due by period for long-term debt reflects the contractual maturities of principal, as disclosed in Note 14 to the Consolidated Financial Statements, as well as estimated future interest payments. The payment of principal and estimated future interest for short-term debt are reflected in estimated payments due in 2016. The estimate for future interest payments includes the effect of derivatives that qualify for hedge accounting treatment. See Note 14 to the Consolidated Financial Statements for additional information concerning our short-term and long-term debt.
|
|
(2)
|
The estimated payments due by period for operating and capital leases reflect the future minimum lease payments under non-cancelable operating and capital leases, as disclosed in Note 23 to the Consolidated Financial Statements.
|
|
(3)
|
As discussed in Note 23 to the Consolidated Financial Statements, we have commitments to purchase or fund investments, some of which are contingent upon events or circumstances not under our control, including those at the discretion of our counterparties. The timing of the fulfillment of certain of these commitments cannot be estimated, therefore the settlement of these obligations are reflected in estimated payments due in less than one year. Commitments to purchase or fund investments include $92 million that we anticipate will ultimately be funded from our separate accounts.
|
|
(4)
|
As discussed in Note 23 to the Consolidated Financial Statements, loan commitments of our commercial mortgage operations, which are legally binding commitments to extend credit to a counterparty, have been reflected in the contractual obligations table above principally based on the expiration date of the commitment; however, it is possible these loan commitments could be funded prior to their expiration date. In certain circumstances the counterparty may also extend the date of the expiration in exchange for a fee.
|
|
(5)
|
The estimated cash flows due by period for insurance liabilities reflect future estimated cash payments to be made to policyholders and others for future policy benefits, policyholders’ account balances, policyholder’s dividends, reinsurance payables and separate account liabilities, net of premium receipts and reinsurance recoverables. These future estimated cash flows for current policies in force generally reflect our best estimate economic and actuarial assumptions. These cash flows are undiscounted with respect to interest. The sum of the cash flows shown for all years in the table of $1,122 billion exceeds the corresponding liability amounts of approximately $654 billion included in the Consolidated Financial Statements as of December 31, 2015. Separate account liabilities are legally insulated from general account obligations, and it is generally expected these liabilities will be fully funded by separate account assets and their related cash flows. We have made significant assumptions to determine the future estimated cash flows related to the underlying policies and contracts. Due to the significance of the assumptions used, actual cash flows will differ, possibly materially, from these estimates.
|
|
(6)
|
The estimated payments due by period for other liabilities includes securities sold under agreements to repurchase, cash collateral for loaned securities, liabilities for unrecognized tax benefits, bank customer liabilities, and other miscellaneous liabilities. Amounts presented in the table also exclude $8,597 billion of notes issued by consolidated VIE’s which recourse for these obligations is limited to the assets of the respective VIE and do not have recourse to the general credit of the company.
|
|
•
|
Audit Committee: oversees risks related to operational risks, financial controls, legal, regulatory and compliance risks, and the overall risk management governance structure and risk management function.
|
|
•
|
Finance Committee: oversees risks involving our capital and liquidity management, the incurrence and repayment of borrowings, the capital structure, the funding of benefit plans and statutory insurance reserves. It also oversees the strength of the finance function. The Finance Committee reviews and recommends for approval to the Board our capital plan. The Finance Committee also receives regular updates on the sources and uses of capital relative to plan, as well as on our Capital Protection Framework.
|
|
•
|
Investment Committee: oversees investment and market risk and the strength of the investment function. The Investment Committee approves investment and market risk limits for Prudential Financial and for Prudential Insurance’s general account based on asset class, issuer, credit quality and geography.
|
|
•
|
Compensation Committee: oversees our compensation programs so that incentives are aligned with appropriate risk taking.
|
|
•
|
Corporate Governance and Business Ethics Committee: oversees our political contributions, lobbying expenses and overall political strategy, as well as our environmental, sustainability and corporate social responsibility.
|
|
•
|
Risk Committee: oversees the governance of significant risks throughout the Company and the establishment and ongoing monitoring of our risk profile, risk capacity and risk appetite. The Risk Committee also serves to coordinate the risk oversight functions of the other committees of the Board.
|
|
•
|
the risk that we will not receive contractual payments on a timely basis on fixed maturity investments (for example, credit default risk);
|
|
•
|
the risk that our fixed maturity investments lose value due to a deterioration of credit quality (for example, the probability of default rises or the likelihood of recovery on a default deteriorates);
|
|
•
|
the risk that a counterparty on derivatives, securities lending, reinsurance or other transactions does not meet its contractual obligations to us; and
|
|
•
|
the risk that values of our non-coupon, equity and/or real estate equity investments decline.
|
|
•
|
Interest rate risk arising from asset/liability duration mismatches within our general account investments as well as invested assets of other entities and operations. For further information, see “—General Account Investments—Management of Investments” and “—General Account Investments—Invested Assets of Other Entities and Operations” above.
|
|
•
|
Equity risk primarily arising from unhedged equity exposure in our insurance liabilities, principally within our Annuities segment. For further information, see “—Individual Annuities—Variable Annuity Risks and Risk Mitigants” above.
|
|
•
|
Foreign currency exchange rate risk arising from assets that are invested in a different currency than the related liability, as well as the unhedged portion of the Company’s earnings from, and capital supporting, operations in a foreign currency. For further information, see “—International Insurance Division—Foreign Currency Exchange Rate Movements and Related Hedging Strategies” above.
|
|
•
|
Mortality risk, or the risk that death claims are greater than expected, primarily within our Individual Life, Group Insurance and International Insurance segments, or the risk that policyholders survive longer than expected, primarily within our Individual Annuities, Retirement and International Insurance segments;
|
|
•
|
Morbidity risk, or the risk that health claims from sickness or disability are greater than expected, primarily within our Group Insurance and International Insurance segments as well as from long-term care policies within Divested Businesses; and
|
|
•
|
Policyholder behavior risk, or the risk that our customers’ persistency experience or utilization experience differs from our expectations.
|
|
•
|
Legal and regulatory compliance risk
|
|
•
|
Sales practices risk
|
|
•
|
Fraud (internal and external) risk
|
|
•
|
Reputational risk
|
|
•
|
Employee risk
|
|
•
|
Technology risk, including data security, system failures and processing errors
|
|
•
|
Financial reporting risk
|
|
•
|
Extreme events risk, such as loss of people and/or infrastructure caused by natural disasters, terrorism, disease, etc.
|
|
•
|
Information risk
|
|
•
|
Vendor risk
|
|
•
|
Measures of price sensitivity to market changes (e.g., interest rates, equity index prices, foreign exchange);
|
|
•
|
Asset/liability mismatch analytics;
|
|
•
|
Stress scenario testing;
|
|
•
|
Hedging programs; and
|
|
•
|
Risk management governance, including policies, limits, and a committee that oversees investment and market risk. For additional information regarding our overall risk management framework and governance structure, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management” above.
|
|
•
|
Asset/Liability Management: Managing assets to liability-based measures. For example, investment policies identify target durations for assets based on liability characteristics and asset portfolios are managed to within ranges around them. This mitigates potential unanticipated economic losses from interest rate movements.
|
|
•
|
Hedging non-strategic exposures. For example, our investment policies for our general account portfolios generally require hedging currency risk for cash flows not offset by similarly denominated liabilities.
|
|
•
|
Management of portfolio concentration risk. For example, ongoing monitoring and management at the enterprise level of key rate, currency and other concentration risks support diversification efforts to mitigate exposure to individual markets and sources of risk.
|
|
•
|
Net investment spread between the amounts that we are required to pay and the rate of return we are able to earn on investments for certain products supported by general account investments;
|
|
•
|
Asset-based fees earned on assets under management or contractholder account values;
|
|
•
|
Estimated total gross profits and the amortization of deferred policy acquisition and other costs;
|
|
•
|
Net exposure to the guarantees provided under certain products; and
|
|
•
|
Capital levels of our regulated entities.
|
|
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||
|
|
|
Notional
|
|
Fair
Value
|
|
Hypothetical
Change in
Fair Value
|
|
Notional
|
|
Fair
Value
|
|
Hypothetical
Change in
Fair Value
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Financial assets with interest rate risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Fixed maturities(1)
|
|
|
|
$
|
322,207
|
|
|
$
|
(27,832
|
)
|
|
|
|
$
|
328,942
|
|
|
$
|
(27,812
|
)
|
||||
|
Commercial mortgage and other loans
|
|
|
|
51,853
|
|
|
(2,369
|
)
|
|
|
|
49,097
|
|
|
(2,176
|
)
|
||||||||
|
Derivatives with interest rate risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Swaps
|
|
$
|
219,511
|
|
|
8,423
|
|
|
(5,960
|
)
|
|
$
|
224,345
|
|
|
6,316
|
|
|
(5,690
|
)
|
||||
|
Futures
|
|
28,538
|
|
|
10
|
|
|
(131
|
)
|
|
32,357
|
|
|
6
|
|
|
102
|
|
||||||
|
Options
|
|
89,107
|
|
|
232
|
|
|
(868
|
)
|
|
85,354
|
|
|
952
|
|
|
(337
|
)
|
||||||
|
Forwards
|
|
17,809
|
|
|
204
|
|
|
(5
|
)
|
|
22,517
|
|
|
(165
|
)
|
|
(27
|
)
|
||||||
|
Synthetic GICs
|
|
72,585
|
|
|
7
|
|
|
0
|
|
|
74,707
|
|
|
6
|
|
|
0
|
|
||||||
|
Variable annuity and other living benefit feature embedded derivatives(2)
|
|
|
|
(8,434
|
)
|
|
5,072
|
|
|
|
|
(8,182
|
)
|
|
5,560
|
|
||||||||
|
Financial liabilities with interest rate risk(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Short-term and long-term debt
|
|
|
|
(22,522
|
)
|
|
3,214
|
|
|
|
|
(25,974
|
)
|
|
3,039
|
|
||||||||
|
Limited recourse notes issued by consolidated VIEs(4)
|
|
|
|
0
|
|
|
0
|
|
|
|
|
(18
|
)
|
|
0
|
|
||||||||
|
Policyholders’ account balances—investment contracts
|
|
|
|
(94,271
|
)
|
|
3,302
|
|
|
|
|
(96,375
|
)
|
|
3,480
|
|
||||||||
|
Net estimated potential loss
|
|
|
|
|
|
$
|
(25,577
|
)
|
|
|
|
|
|
$
|
(23,861
|
)
|
||||||||
|
(1)
|
Includes fixed maturities classified as “trading account assets supporting insurance liabilities” and other fixed maturities classified as trading securities under U.S. GAAP, but are held for “other than trading” activities in our segments that offer insurance, retirement and annuities products.
|
|
(2)
|
Excludes any offsetting impact of derivative instruments purchased to hedge changes in the embedded derivatives. Amounts reported net of third-party reinsurance.
|
|
(3)
|
Excludes approximately
$267 billion
and
$259 billion
as of
December 31, 2015
and
2014
, respectively, of insurance reserve and deposit liabilities which are not considered financial liabilities. We believe that the interest rate sensitivities of these insurance liabilities would serve as an offset to the net interest rate risk of the financial assets and liabilities, including investment contracts.
|
|
(4)
|
See Note 5 to the Consolidated Financial Statements for additional information regarding consolidated VIEs.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
|
|
(Increase) / Decrease in
Embedded Derivative Liability
|
|
(Increase) / Decrease in
Embedded Derivative Liability
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Increase in credit spread by 50 basis points
|
|
$
|
1,714
|
|
|
$
|
1,814
|
|
|
Decrease in credit spread by 50 basis points
|
|
$
|
(2,047
|
)
|
|
$
|
(2,203
|
)
|
|
•
|
Asset-based fees earned on assets under management or contractholder account value;
|
|
•
|
Estimated total gross profits and the amortization of deferred policy acquisition and other costs; and
|
|
•
|
Net exposure to the guarantees provided under certain products.
|
|
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||
|
|
|
Notional
|
|
Fair
Value
|
|
Hypothetical
Change in
Fair Value
|
|
Notional
|
|
Fair
Value
|
|
Hypothetical
Change in
Fair Value
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Equity securities(1)
|
|
|
|
$
|
11,626
|
|
|
$
|
(1,163
|
)
|
|
|
|
$
|
12,152
|
|
|
$
|
(1,215
|
)
|
||||
|
Equity-based derivatives(2)
|
|
$
|
68,011
|
|
|
(38
|
)
|
|
1,917
|
|
|
$
|
73,138
|
|
|
69
|
|
|
1,617
|
|
||||
|
Variable annuity and other living benefit feature embedded derivatives(2)(3)
|
|
|
|
(8,434
|
)
|
|
(1,355
|
)
|
|
|
|
(8,182
|
)
|
|
(1,193
|
)
|
||||||||
|
Net estimated potential loss
|
|
|
|
|
|
$
|
(601
|
)
|
|
|
|
|
|
$
|
(791
|
)
|
||||||||
|
(1)
|
Includes equity securities classified as “trading account assets supporting insurance liabilities” and other equity securities classified as trading securities under U.S. GAAP, but are held for “other than trading” activities in our segments that offer insurance, retirement and annuities products.
|
|
(2)
|
The notional and fair value of equity-based derivatives and the fair value of variable annuity and other living benefit feature embedded derivatives are also reflected in amounts under “Market Risk Related to Interest Rates” above, and are not cumulative.
|
|
(3)
|
Excludes any offsetting impact of derivative instruments purchased to hedge changes in the embedded derivatives. Amounts reported net of third-party reinsurance.
|
|
|
|
As of December 31, 2015
|
|
|
As of December 31, 2014
|
|||||||||||||
|
|
|
Fair
Value
|
|
Hypothetical
Change in
Fair Value
|
|
|
Fair
Value
|
|
Hypothetical
Change in
Fair Value
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||||
|
Unhedged portion of equity investment in international subsidiaries and foreign currency denominated investments in domestic general account portfolio
|
|
$
|
3,934
|
|
|
$
|
(393
|
)
|
|
|
$
|
4,726
|
|
|
$
|
(473
|
)
|
|
|
|
Page
Number
|
|
|
|
|
|
2015
|
|
2014
|
||||
|
ASSETS
|
|
|
|
||||
|
Fixed maturities, available-for-sale, at fair value (amortized cost: 2015 – $265,416; 2014 – $265,116)(1)
|
$
|
290,323
|
|
|
$
|
299,090
|
|
|
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2015 – $2,624; 2014 – $2,902)(1)
|
2,308
|
|
|
2,575
|
|
||
|
Trading account assets supporting insurance liabilities, at fair value(1)
|
20,522
|
|
|
20,263
|
|
||
|
Other trading account assets, at fair value(1)
|
14,458
|
|
|
10,874
|
|
||
|
Equity securities, available-for-sale, at fair value (cost: 2015 – $6,847; 2014 – $6,921)
|
9,274
|
|
|
9,861
|
|
||
|
Commercial mortgage and other loans (includes $274 and $380 measured at fair value under the fair value option at December 31, 2015 and December 31, 2014, respectively)(1)
|
50,559
|
|
|
46,432
|
|
||
|
Policy loans
|
11,657
|
|
|
11,712
|
|
||
|
Other long-term investments (includes $1,322 and $1,082 measured at fair value under the fair value option at December 31, 2015 and December 31, 2014, respectively)(1)
|
9,986
|
|
|
10,921
|
|
||
|
Short-term investments
|
8,105
|
|
|
8,258
|
|
||
|
Total investments
|
417,192
|
|
|
419,986
|
|
||
|
Cash and cash equivalents(1)
|
17,612
|
|
|
14,918
|
|
||
|
Accrued investment income(1)
|
3,110
|
|
|
3,130
|
|
||
|
Deferred policy acquisition costs
|
16,718
|
|
|
15,971
|
|
||
|
Value of business acquired
|
2,828
|
|
|
2,836
|
|
||
|
Other assets(1)
|
14,358
|
|
|
13,379
|
|
||
|
Separate account assets
|
285,570
|
|
|
296,435
|
|
||
|
TOTAL ASSETS
|
$
|
757,388
|
|
|
$
|
766,655
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
|
LIABILITIES
|
|
|
|
||||
|
Future policy benefits
|
$
|
224,384
|
|
|
$
|
217,766
|
|
|
Policyholders’ account balances(1)
|
136,784
|
|
|
136,150
|
|
||
|
Policyholders’ dividends
|
5,578
|
|
|
7,661
|
|
||
|
Securities sold under agreements to repurchase
|
7,882
|
|
|
9,407
|
|
||
|
Cash collateral for loaned securities
|
3,496
|
|
|
4,241
|
|
||
|
Income taxes
|
8,714
|
|
|
9,881
|
|
||
|
Short-term debt
|
1,216
|
|
|
3,839
|
|
||
|
Long-term debt
|
19,727
|
|
|
19,831
|
|
||
|
Other liabilities(1)
|
13,517
|
|
|
13,037
|
|
||
|
Notes issued by consolidated variable interest entities (includes $8,597 and $6,033 measured at fair value under the fair value option at December 31, 2015 and December 31, 2014, respectively)(1)
|
8,597
|
|
|
6,058
|
|
||
|
Separate account liabilities
|
285,570
|
|
|
296,435
|
|
||
|
Total liabilities
|
715,465
|
|
|
724,306
|
|
||
|
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 23)
|
|
|
|
||||
|
EQUITY
|
|
|
|
||||
|
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued)
|
0
|
|
|
0
|
|
||
|
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued at both December 31, 2015 and December 31, 2014)
|
6
|
|
|
6
|
|
||
|
Class B Stock ($.01 par value; 0 shares authorized and issued at December 31, 2015; 10,000,000 shares authorized and 2,000,000 shares issued at December 31, 2014)
|
0
|
|
|
0
|
|
||
|
Additional paid-in capital
|
24,482
|
|
|
24,565
|
|
||
|
Common Stock held in treasury, at cost (213,009,970 and 205,277,862 shares at December 31, 2015 and December 31, 2014, respectively)
|
(13,814
|
)
|
|
(13,088
|
)
|
||
|
Class B Stock held in treasury, at cost (0 and 2,000,000 shares at December 31, 2015 and December 31, 2014, respectively)
|
0
|
|
|
(651
|
)
|
||
|
Accumulated other comprehensive income (loss)
|
12,285
|
|
|
16,050
|
|
||
|
Retained earnings
|
18,931
|
|
|
14,888
|
|
||
|
Total Prudential Financial, Inc. equity
|
41,890
|
|
|
41,770
|
|
||
|
Noncontrolling interests
|
33
|
|
|
579
|
|
||
|
Total equity
|
41,923
|
|
|
42,349
|
|
||
|
TOTAL LIABILITIES AND EQUITY
|
$
|
757,388
|
|
|
$
|
766,655
|
|
|
(1)
|
See Note 5 for details of balances associated with variable interest entities.
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
REVENUES
|
|
|
|
|
|
||||||
|
Premiums
|
$
|
28,521
|
|
|
$
|
29,293
|
|
|
$
|
26,237
|
|
|
Policy charges and fee income
|
5,972
|
|
|
6,179
|
|
|
5,415
|
|
|||
|
Net investment income
|
14,829
|
|
|
15,256
|
|
|
14,729
|
|
|||
|
Asset management and service fees
|
3,772
|
|
|
3,719
|
|
|
3,485
|
|
|||
|
Other income (loss)
|
0
|
|
|
(1,978
|
)
|
|
(3,199
|
)
|
|||
|
Realized investment gains (losses), net:
|
|
|
|
|
|
||||||
|
Other-than-temporary impairments on fixed maturity securities
|
(180
|
)
|
|
(127
|
)
|
|
(1,055
|
)
|
|||
|
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income
|
39
|
|
|
71
|
|
|
856
|
|
|||
|
Other realized investment gains (losses), net
|
4,166
|
|
|
1,692
|
|
|
(5,007
|
)
|
|||
|
Total realized investment gains (losses), net
|
4,025
|
|
|
1,636
|
|
|
(5,206
|
)
|
|||
|
Total revenues
|
57,119
|
|
|
54,105
|
|
|
41,461
|
|
|||
|
BENEFITS AND EXPENSES
|
|
|
|
|
|
||||||
|
Policyholders’ benefits
|
30,627
|
|
|
31,587
|
|
|
26,733
|
|
|||
|
Interest credited to policyholders’ account balances
|
3,479
|
|
|
4,263
|
|
|
3,111
|
|
|||
|
Dividends to policyholders
|
2,212
|
|
|
2,716
|
|
|
2,050
|
|
|||
|
Amortization of deferred policy acquisition costs
|
2,120
|
|
|
1,973
|
|
|
240
|
|
|||
|
General and administrative expenses
|
10,912
|
|
|
11,807
|
|
|
11,011
|
|
|||
|
Total benefits and expenses
|
49,350
|
|
|
52,346
|
|
|
43,145
|
|
|||
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES
|
7,769
|
|
|
1,759
|
|
|
(1,684
|
)
|
|||
|
Total income tax expense (benefit)
|
2,072
|
|
|
349
|
|
|
(1,058
|
)
|
|||
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES
|
5,697
|
|
|
1,410
|
|
|
(626
|
)
|
|||
|
Equity in earnings of operating joint ventures, net of taxes
|
15
|
|
|
16
|
|
|
59
|
|
|||
|
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
5,712
|
|
|
1,426
|
|
|
(567
|
)
|
|||
|
Income (loss) from discontinued operations, net of taxes
|
0
|
|
|
12
|
|
|
7
|
|
|||
|
NET INCOME (LOSS)
|
5,712
|
|
|
1,438
|
|
|
(560
|
)
|
|||
|
Less: Income (loss) attributable to noncontrolling interests
|
70
|
|
|
57
|
|
|
107
|
|
|||
|
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC
|
$
|
5,642
|
|
|
$
|
1,381
|
|
|
$
|
(667
|
)
|
|
EARNINGS PER SHARE(1)
|
|
|
|
|
|
||||||
|
Basic earnings per share-Common Stock:
|
|
|
|
|
|
||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
$
|
12.37
|
|
|
$
|
3.23
|
|
|
$
|
(1.57
|
)
|
|
Income (loss) from discontinued operations, net of taxes
|
0.00
|
|
|
0.02
|
|
|
0.02
|
|
|||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
$
|
12.37
|
|
|
$
|
3.25
|
|
|
$
|
(1.55
|
)
|
|
Diluted earnings per share-Common Stock:
|
|
|
|
|
|
||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
$
|
12.17
|
|
|
$
|
3.20
|
|
|
$
|
(1.57
|
)
|
|
Income (loss) from discontinued operations, net of taxes
|
0.00
|
|
|
0.03
|
|
|
0.02
|
|
|||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
$
|
12.17
|
|
|
$
|
3.23
|
|
|
$
|
(1.55
|
)
|
|
Dividends declared per share of Common Stock
|
$
|
2.44
|
|
|
$
|
2.17
|
|
|
$
|
1.73
|
|
|
(1)
|
For 2015, represents consolidated earnings per share of Common Stock. For 2014 and 2013, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock. See Note 16 for additional information.
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
NET INCOME (LOSS)
|
$
|
5,712
|
|
|
$
|
1,438
|
|
|
$
|
(560
|
)
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustments for the period
|
(287
|
)
|
|
(1,081
|
)
|
|
(1,487
|
)
|
|||
|
Net unrealized investment gains (losses)
|
(5,486
|
)
|
|
13,730
|
|
|
(1,528
|
)
|
|||
|
Defined benefit pension and postretirement unrecognized periodic benefit (cost)
|
(264
|
)
|
|
(1,043
|
)
|
|
874
|
|
|||
|
Total
|
(6,037
|
)
|
|
11,606
|
|
|
(2,141
|
)
|
|||
|
Less: Income tax expense (benefit) related to other comprehensive income (loss)
|
(2,213
|
)
|
|
4,249
|
|
|
(582
|
)
|
|||
|
Other comprehensive income (loss), net of taxes
|
(3,824
|
)
|
|
7,357
|
|
|
(1,559
|
)
|
|||
|
Comprehensive income (loss)
|
1,888
|
|
|
8,795
|
|
|
(2,119
|
)
|
|||
|
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
11
|
|
|
45
|
|
|
81
|
|
|||
|
Comprehensive income (loss) attributable to Prudential Financial, Inc.
|
$
|
1,877
|
|
|
$
|
8,750
|
|
|
$
|
(2,200
|
)
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Common
Stock
Held In
Treasury
|
|
Class B
Stock
Held in
Treasury
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Prudential
Financial, Inc.
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||
|
Balance, December 31, 2012
|
$
|
6
|
|
|
$
|
24,380
|
|
|
$
|
16,066
|
|
|
$
|
(12,163
|
)
|
|
$
|
0
|
|
|
$
|
10,214
|
|
|
$
|
38,503
|
|
|
$
|
609
|
|
|
$
|
39,112
|
|
|
Common and Class B Stock acquired
|
|
|
|
|
|
|
(750
|
)
|
|
|
|
|
|
(750
|
)
|
|
|
|
(750
|
)
|
|||||||||||||||
|
Common Stock issued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Contributions from noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
4
|
|
||||||||||||||||
|
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(113
|
)
|
|
(113
|
)
|
||||||||||||||||
|
Consolidations/(deconsolidations) of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
22
|
|
||||||||||||||||
|
Stock-based compensation programs
|
|
|
95
|
|
|
(39
|
)
|
|
498
|
|
|
|
|
|
|
554
|
|
|
|
|
554
|
|
|||||||||||||
|
Dividends declared on Common Stock
|
|
|
|
|
(810
|
)
|
|
|
|
|
|
|
|
(810
|
)
|
|
|
|
(810
|
)
|
|||||||||||||||
|
Dividends declared on Class B Stock
|
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
(19
|
)
|
|
|
|
(19
|
)
|
|||||||||||||||
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net income (loss)
|
|
|
|
|
(667
|
)
|
|
|
|
|
|
|
|
(667
|
)
|
|
107
|
|
|
(560
|
)
|
||||||||||||||
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
(1,533
|
)
|
|
(1,533
|
)
|
|
(26
|
)
|
|
(1,559
|
)
|
||||||||||||||
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,200
|
)
|
|
81
|
|
|
(2,119
|
)
|
|||||||||||||||
|
Balance, December 31, 2013
|
6
|
|
|
24,475
|
|
|
14,531
|
|
|
(12,415
|
)
|
|
0
|
|
|
8,681
|
|
|
35,278
|
|
|
603
|
|
|
35,881
|
|
|||||||||
|
Common and Class B Stock acquired
|
|
|
|
|
|
|
(1,000
|
)
|
|
(651
|
)
|
|
|
|
(1,651
|
)
|
|
|
|
(1,651
|
)
|
||||||||||||||
|
Common Stock issued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Contributions from noncontrolling interests
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
107
|
|
|
103
|
|
||||||||||||||
|
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(175
|
)
|
|
(175
|
)
|
||||||||||||||||
|
Consolidations/(deconsolidations) of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||||
|
Stock-based compensation programs
|
|
|
94
|
|
|
|
|
327
|
|
|
|
|
|
|
421
|
|
|
|
|
421
|
|
||||||||||||||
|
Dividends declared on Common Stock
|
|
|
|
|
(1,005
|
)
|
|
|
|
|
|
|
|
(1,005
|
)
|
|
|
|
(1,005
|
)
|
|||||||||||||||
|
Dividends declared on Class B Stock
|
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
(19
|
)
|
|
|
|
(19
|
)
|
|||||||||||||||
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net income (loss)
|
|
|
|
|
1,381
|
|
|
|
|
|
|
|
|
1,381
|
|
|
57
|
|
|
1,438
|
|
||||||||||||||
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
7,369
|
|
|
7,369
|
|
|
(12
|
)
|
|
7,357
|
|
||||||||||||||
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
8,750
|
|
|
45
|
|
|
8,795
|
|
|||||||||||||||
|
Balance, December 31, 2014
|
6
|
|
|
24,565
|
|
|
14,888
|
|
|
(13,088
|
)
|
|
(651
|
)
|
|
16,050
|
|
|
41,770
|
|
|
579
|
|
|
42,349
|
|
|||||||||
|
Common Stock acquired
|
|
|
|
|
|
|
(1,000
|
)
|
|
|
|
|
|
(1,000
|
)
|
|
|
|
(1,000
|
)
|
|||||||||||||||
|
Class B Stock cancelled
|
|
|
(167
|
)
|
|
(484
|
)
|
|
|
|
651
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|||||||||||||
|
Contributions from noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
|
|
|
28
|
|
||||||||||||||||
|
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(437
|
)
|
|
(437
|
)
|
||||||||||||||||
|
Consolidations/(deconsolidations) of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(148
|
)
|
|
(148
|
)
|
||||||||||||||||
|
Stock-based compensation programs
|
|
|
84
|
|
|
|
|
274
|
|
|
|
|
|
|
358
|
|
|
|
|
358
|
|
||||||||||||||
|
Dividends declared on Common Stock
|
|
|
|
|
(1,115
|
)
|
|
|
|
|
|
|
|
(1,115
|
)
|
|
|
|
(1,115
|
)
|
|||||||||||||||
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net income (loss)
|
|
|
|
|
5,642
|
|
|
|
|
|
|
|
|
5,642
|
|
|
70
|
|
|
5,712
|
|
||||||||||||||
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
(3,765
|
)
|
|
(3,765
|
)
|
|
(59
|
)
|
|
(3,824
|
)
|
||||||||||||||
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
1,877
|
|
|
11
|
|
|
1,888
|
|
|||||||||||||||
|
Balance, December 31, 2015
|
$
|
6
|
|
|
$
|
24,482
|
|
|
$
|
18,931
|
|
|
$
|
(13,814
|
)
|
|
$
|
0
|
|
|
$
|
12,285
|
|
|
$
|
41,890
|
|
|
$
|
33
|
|
|
$
|
41,923
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Net income (loss)
|
|
$
|
5,712
|
|
|
$
|
1,438
|
|
|
$
|
(560
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
|
Realized investment (gains) losses, net
|
|
(4,025
|
)
|
|
(1,636
|
)
|
|
5,206
|
|
|||
|
Policy charges and fee income
|
|
(1,883
|
)
|
|
(2,156
|
)
|
|
(1,649
|
)
|
|||
|
Interest credited to policyholders’ account balances
|
|
3,479
|
|
|
4,263
|
|
|
3,111
|
|
|||
|
Depreciation and amortization
|
|
113
|
|
|
631
|
|
|
411
|
|
|||
|
(Gains) losses on trading account assets supporting insurance liabilities, net
|
|
524
|
|
|
(339
|
)
|
|
250
|
|
|||
|
Change in:
|
|
|
|
|
|
|
||||||
|
Deferred policy acquisition costs
|
|
(533
|
)
|
|
(721
|
)
|
|
(2,661
|
)
|
|||
|
Future policy benefits and other insurance liabilities
|
|
8,311
|
|
|
11,276
|
|
|
8,379
|
|
|||
|
Other trading account assets
|
|
256
|
|
|
44
|
|
|
(33
|
)
|
|||
|
Income taxes
|
|
245
|
|
|
175
|
|
|
(1,343
|
)
|
|||
|
Derivatives, net
|
|
1,305
|
|
|
4,989
|
|
|
(3,747
|
)
|
|||
|
Other, net
|
|
391
|
|
|
1,432
|
|
|
1,081
|
|
|||
|
Cash flows from (used in) operating activities
|
|
13,895
|
|
|
19,396
|
|
|
8,445
|
|
|||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Proceeds from the sale/maturity/prepayment of:
|
|
|
|
|
|
|
||||||
|
Fixed maturities, available-for-sale
|
|
47,080
|
|
|
49,529
|
|
|
60,719
|
|
|||
|
Fixed maturities, held-to-maturity
|
|
235
|
|
|
415
|
|
|
587
|
|
|||
|
Trading account assets supporting insurance liabilities and other trading account assets
|
|
14,313
|
|
|
13,548
|
|
|
19,412
|
|
|||
|
Equity securities, available-for-sale
|
|
4,577
|
|
|
5,001
|
|
|
4,227
|
|
|||
|
Commercial mortgage and other loans
|
|
5,464
|
|
|
4,076
|
|
|
6,501
|
|
|||
|
Policy loans
|
|
2,199
|
|
|
2,084
|
|
|
2,231
|
|
|||
|
Other long-term investments
|
|
1,276
|
|
|
574
|
|
|
1,594
|
|
|||
|
Short-term investments
|
|
77,021
|
|
|
73,823
|
|
|
60,002
|
|
|||
|
Payments for the purchase/origination of:
|
|
|
|
|
|
|
||||||
|
Fixed maturities, available-for-sale
|
|
(47,606
|
)
|
|
(57,467
|
)
|
|
(67,774
|
)
|
|||
|
Fixed maturities, held-to-maturity
|
|
0
|
|
|
(21
|
)
|
|
(208
|
)
|
|||
|
Trading account assets supporting insurance liabilities and other trading account assets
|
|
(18,608
|
)
|
|
(16,522
|
)
|
|
(22,552
|
)
|
|||
|
Equity securities, available-for-sale
|
|
(4,055
|
)
|
|
(4,476
|
)
|
|
(4,301
|
)
|
|||
|
Commercial mortgage and other loans
|
|
(9,392
|
)
|
|
(9,346
|
)
|
|
(10,316
|
)
|
|||
|
Policy loans
|
|
(1,782
|
)
|
|
(1,855
|
)
|
|
(1,831
|
)
|
|||
|
Other long-term investments
|
|
(2,005
|
)
|
|
(1,805
|
)
|
|
(1,800
|
)
|
|||
|
Short-term investments
|
|
(76,622
|
)
|
|
(74,295
|
)
|
|
(61,034
|
)
|
|||
|
Acquisitions, net of cash acquired
|
|
0
|
|
|
(23
|
)
|
|
(488
|
)
|
|||
|
Derivatives, net
|
|
53
|
|
|
(555
|
)
|
|
(950
|
)
|
|||
|
Other, net
|
|
106
|
|
|
227
|
|
|
(353
|
)
|
|||
|
Cash flows from (used in) investing activities
|
|
(7,746
|
)
|
|
(17,088
|
)
|
|
(16,334
|
)
|
|||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Policyholders’ account deposits
|
|
23,206
|
|
|
23,977
|
|
|
24,721
|
|
|||
|
Policyholders’ account withdrawals
|
|
(21,963
|
)
|
|
(22,003
|
)
|
|
(24,960
|
)
|
|||
|
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities
|
|
(2,270
|
)
|
|
710
|
|
|
3,200
|
|
|||
|
Cash dividends paid on Common Stock
|
|
(1,117
|
)
|
|
(1,008
|
)
|
|
(828
|
)
|
|||
|
Cash dividends paid on Class B Stock
|
|
0
|
|
|
(19
|
)
|
|
(19
|
)
|
|||
|
Net change in financing arrangements (maturities 90 days or less)
|
|
68
|
|
|
(27
|
)
|
|
96
|
|
|||
|
Common Stock acquired
|
|
(1,013
|
)
|
|
(1,000
|
)
|
|
(738
|
)
|
|||
|
Class B stock acquired
|
|
(651
|
)
|
|
0
|
|
|
0
|
|
|||
|
Common Stock reissued for exercise of stock options
|
|
209
|
|
|
269
|
|
|
348
|
|
|||
|
Proceeds from the issuance of debt (maturities longer than 90 days)
|
|
5,166
|
|
|
7,955
|
|
|
4,660
|
|
|||
|
Repayments of debt (maturities longer than 90 days)
|
|
(4,957
|
)
|
|
(7,384
|
)
|
|
(3,939
|
)
|
|||
|
Excess tax benefits from share-based payment arrangements
|
|
19
|
|
|
26
|
|
|
32
|
|
|||
|
Other, net
|
|
(221
|
)
|
|
133
|
|
|
(331
|
)
|
|||
|
Cash flows from (used in) financing activities
|
|
(3,524
|
)
|
|
1,629
|
|
|
2,242
|
|
|||
|
Effect of foreign exchange rate changes on cash balances
|
|
69
|
|
|
(458
|
)
|
|
(1,014
|
)
|
|||
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
2,694
|
|
|
3,479
|
|
|
(6,661
|
)
|
|||
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
14,918
|
|
|
11,439
|
|
|
18,100
|
|
|||
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
17,612
|
|
|
$
|
14,918
|
|
|
$
|
11,439
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
|
|
|
||||||
|
Income taxes paid, net of refunds
|
|
$
|
1,083
|
|
|
$
|
109
|
|
|
$
|
1,279
|
|
|
Interest paid
|
|
$
|
1,324
|
|
|
$
|
1,883
|
|
|
$
|
1,387
|
|
|
NON-CASH TRANSACTIONS DURING THE YEAR
|
|
|
|
|
|
|
||||||
|
Treasury Stock shares issued for stock-based compensation programs
|
|
$
|
115
|
|
|
$
|
100
|
|
|
$
|
105
|
|
|
Significant Pension Risk Transfer transactions:
|
|
|
|
|
|
|
||||||
|
Assets received, excluding cash and cash equivalents
|
|
$
|
2,091
|
|
|
$
|
1,435
|
|
|
$
|
0
|
|
|
Liabilities assumed
|
|
3,739
|
|
|
4,653
|
|
|
0
|
|
|||
|
Net cash received
|
|
$
|
1,648
|
|
|
$
|
3,218
|
|
|
$
|
0
|
|
|
Acquisition of Gibraltar BSN Life Berhad (See Note 3):
|
|
|
|
|
|
|
||||||
|
Assets acquired, excluding cash and cash equivalents acquired
|
|
$
|
0
|
|
|
$
|
656
|
|
|
$
|
0
|
|
|
Liabilities assumed
|
|
0
|
|
|
586
|
|
|
0
|
|
|||
|
Noncontrolling interest assumed
|
|
0
|
|
|
47
|
|
|
0
|
|
|||
|
Net cash paid on acquisition
|
|
$
|
0
|
|
|
$
|
23
|
|
|
$
|
0
|
|
|
Acquisition of The Hartford’s individual life business (See Note 3):
|
|
|
|
|
|
|
||||||
|
Assets acquired, excluding cash and cash equivalents acquired
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
11,056
|
|
|
Liabilities assumed
|
|
0
|
|
|
0
|
|
|
10,568
|
|
|||
|
Net cash paid on acquisition
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
488
|
|
|
1.
|
BUSINESS AND BASIS OF PRESENTATION
|
|
2.
|
SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS
|
|
3.
|
ACQUISITIONS AND DISPOSITIONS
|
|
4.
|
INVESTMENTS
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
OTTI
in AOCI(4)
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
|
Fixed maturities, available-for-sale
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
14,992
|
|
|
$
|
3,544
|
|
|
$
|
19
|
|
|
$
|
18,517
|
|
|
$
|
0
|
|
|
Obligations of U.S. states and their political subdivisions
|
8,089
|
|
|
747
|
|
|
41
|
|
|
8,795
|
|
|
0
|
|
|||||
|
Foreign government bonds
|
71,849
|
|
|
12,011
|
|
|
147
|
|
|
83,713
|
|
|
1
|
|
|||||
|
U.S. corporate public securities
|
70,979
|
|
|
6,344
|
|
|
1,955
|
|
|
75,368
|
|
|
(3
|
)
|
|||||
|
U.S. corporate private securities(1)
|
28,525
|
|
|
2,278
|
|
|
359
|
|
|
30,444
|
|
|
0
|
|
|||||
|
Foreign corporate public securities
|
26,354
|
|
|
2,821
|
|
|
621
|
|
|
28,554
|
|
|
0
|
|
|||||
|
Foreign corporate private securities
|
19,393
|
|
|
739
|
|
|
994
|
|
|
19,138
|
|
|
0
|
|
|||||
|
Asset-backed securities(2)
|
10,121
|
|
|
226
|
|
|
121
|
|
|
10,226
|
|
|
(452
|
)
|
|||||
|
Commercial mortgage-backed securities
|
10,337
|
|
|
195
|
|
|
70
|
|
|
10,462
|
|
|
(1
|
)
|
|||||
|
Residential mortgage-backed securities(3)
|
4,777
|
|
|
335
|
|
|
6
|
|
|
5,106
|
|
|
(4
|
)
|
|||||
|
Total fixed maturities, available-for-sale(1)
|
$
|
265,416
|
|
|
$
|
29,240
|
|
|
$
|
4,333
|
|
|
$
|
290,323
|
|
|
$
|
(459
|
)
|
|
Equity securities, available-for-sale
|
$
|
6,847
|
|
|
$
|
2,570
|
|
|
$
|
143
|
|
|
$
|
9,274
|
|
|
|
||
|
|
|
December 31, 2015
|
||||||||||||||
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fixed maturities, held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign government bonds
|
|
$
|
816
|
|
|
$
|
196
|
|
|
$
|
0
|
|
|
$
|
1,012
|
|
|
Foreign corporate public securities
|
|
625
|
|
|
62
|
|
|
0
|
|
|
687
|
|
||||
|
Foreign corporate private securities(5)
|
|
78
|
|
|
4
|
|
|
0
|
|
|
82
|
|
||||
|
Commercial mortgage-backed securities
|
|
33
|
|
|
1
|
|
|
0
|
|
|
34
|
|
||||
|
Residential mortgage-backed securities(3)
|
|
756
|
|
|
53
|
|
|
0
|
|
|
809
|
|
||||
|
Total fixed maturities, held-to-maturity(5)
|
|
$
|
2,308
|
|
|
$
|
316
|
|
|
$
|
0
|
|
|
$
|
2,624
|
|
|
(1)
|
Excludes notes with amortized cost of
$1,050 million
(fair value,
$1,039 million
) which have been offset with the associated payables under a netting agreement.
|
|
(2)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
|
|
(3)
|
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
|
|
(4)
|
Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes
$693 million
of net unrealized gains on impaired available-for-sale securities and less than
$1 million
of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.
|
|
(5)
|
Excludes notes with amortized cost of
$3,850 million
(fair value,
$4,081 million
) which have been offset with the associated payables under a netting agreement.
|
|
|
December 31, 2014(6)
|
||||||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
OTTI
in AOCI(4)
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
|
Fixed maturities, available-for-sale
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
15,807
|
|
|
$
|
4,321
|
|
|
$
|
5
|
|
|
$
|
20,123
|
|
|
$
|
0
|
|
|
Obligations of U.S. states and their political subdivisions
|
5,720
|
|
|
814
|
|
|
3
|
|
|
6,531
|
|
|
0
|
|
|||||
|
Foreign government bonds
|
69,894
|
|
|
11,164
|
|
|
117
|
|
|
80,941
|
|
|
(1
|
)
|
|||||
|
U.S. corporate public securities
|
70,960
|
|
|
9,642
|
|
|
536
|
|
|
80,066
|
|
|
(6
|
)
|
|||||
|
U.S. corporate private securities(1)
|
27,767
|
|
|
3,082
|
|
|
89
|
|
|
30,760
|
|
|
0
|
|
|||||
|
Foreign corporate public securities
|
27,515
|
|
|
3,768
|
|
|
214
|
|
|
31,069
|
|
|
0
|
|
|||||
|
Foreign corporate private securities
|
17,389
|
|
|
1,307
|
|
|
215
|
|
|
18,481
|
|
|
0
|
|
|||||
|
Asset-backed securities(2)
|
10,966
|
|
|
353
|
|
|
134
|
|
|
11,185
|
|
|
(592
|
)
|
|||||
|
Commercial mortgage-backed securities
|
13,486
|
|
|
430
|
|
|
39
|
|
|
13,877
|
|
|
(1
|
)
|
|||||
|
Residential mortgage-backed securities(3)
|
5,612
|
|
|
448
|
|
|
3
|
|
|
6,057
|
|
|
(5
|
)
|
|||||
|
Total fixed maturities, available-for-sale(1)
|
$
|
265,116
|
|
|
$
|
35,329
|
|
|
$
|
1,355
|
|
|
$
|
299,090
|
|
|
$
|
(605
|
)
|
|
Equity securities, available-for-sale
|
$
|
6,921
|
|
|
$
|
3,023
|
|
|
$
|
83
|
|
|
$
|
9,861
|
|
|
|
||
|
|
|
December 31, 2014(6)
|
||||||||||||||
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fixed maturities, held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign government bonds
|
|
$
|
821
|
|
|
$
|
184
|
|
|
$
|
0
|
|
|
$
|
1,005
|
|
|
Foreign corporate public securities
|
|
635
|
|
|
64
|
|
|
1
|
|
|
698
|
|
||||
|
Foreign corporate private securities(5)
|
|
78
|
|
|
4
|
|
|
0
|
|
|
82
|
|
||||
|
Commercial mortgage-backed securities
|
|
78
|
|
|
7
|
|
|
0
|
|
|
85
|
|
||||
|
Residential mortgage-backed securities(3)
|
|
963
|
|
|
69
|
|
|
0
|
|
|
1,032
|
|
||||
|
Total fixed maturities, held-to-maturity(5)
|
|
$
|
2,575
|
|
|
$
|
328
|
|
|
$
|
1
|
|
|
$
|
2,902
|
|
|
(1)
|
Excludes notes with amortized cost of
$385 million
(fair value,
$385 million
) which have been offset with the associated payables under a netting agreement.
|
|
(2)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.
|
|
(3)
|
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
|
|
(4)
|
Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes
$954 million
of net unrealized gains on impaired available-for-sale securities and
$1 million
of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.
|
|
(5)
|
Excludes notes with amortized cost of
$3,588 million
(fair value,
$3,953 million
) which have been offset with the associated payables under a netting agreement.
|
|
(6)
|
Prior period amounts are presented on a basis consistent with the current period presentation.
|
|
|
|
December 31, 2015
|
||||||||||||||
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Due in one year or less
|
|
$
|
8,599
|
|
|
$
|
9,200
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
46,088
|
|
|
50,303
|
|
|
73
|
|
|
78
|
|
||||
|
Due after five years through ten years
|
|
57,566
|
|
|
62,024
|
|
|
437
|
|
|
485
|
|
||||
|
Due after ten years(1)
|
|
127,928
|
|
|
143,002
|
|
|
1,009
|
|
|
1,218
|
|
||||
|
Asset-backed securities
|
|
10,121
|
|
|
10,226
|
|
|
0
|
|
|
0
|
|
||||
|
Commercial mortgage-backed securities
|
|
10,337
|
|
|
10,462
|
|
|
33
|
|
|
34
|
|
||||
|
Residential mortgage-backed securities
|
|
4,777
|
|
|
5,106
|
|
|
756
|
|
|
809
|
|
||||
|
Total
|
|
$
|
265,416
|
|
|
$
|
290,323
|
|
|
$
|
2,308
|
|
|
$
|
2,624
|
|
|
(1)
|
Excludes available-for-sale notes with amortized cost of
$1,050 million
(fair value,
$1,039 million
) and held-to-maturity notes with amortized cost of
$3,850 million
(fair value,
$4,081 million
), which have been offset with the associated payables under a netting agreement.
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fixed maturities, available-for-sale
|
|
|
||||||||||
|
Proceeds from sales
|
|
$
|
27,679
|
|
|
$
|
28,359
|
|
|
$
|
37,248
|
|
|
Proceeds from maturities/repayments
|
|
19,559
|
|
|
21,040
|
|
|
23,573
|
|
|||
|
Gross investment gains from sales, prepayments, and maturities
|
|
2,115
|
|
|
1,664
|
|
|
1,571
|
|
|||
|
Gross investment losses from sales and maturities
|
|
(340
|
)
|
|
(414
|
)
|
|
(1,465
|
)
|
|||
|
Fixed maturities, held-to-maturity
|
|
|
|
|
|
|
||||||
|
Gross investment gains from prepayments
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Proceeds from maturities/repayments
|
|
235
|
|
|
415
|
|
|
583
|
|
|||
|
Equity securities, available-for-sale
|
|
|
|
|
|
|
||||||
|
Proceeds from sales
|
|
$
|
4,589
|
|
|
$
|
4,993
|
|
|
$
|
4,235
|
|
|
Gross investment gains from sales
|
|
746
|
|
|
676
|
|
|
554
|
|
|||
|
Gross investment losses from sales
|
|
(169
|
)
|
|
(132
|
)
|
|
(94
|
)
|
|||
|
Fixed maturity and equity security impairments
|
|
|
|
|
|
|
||||||
|
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(1)
|
|
$
|
(141
|
)
|
|
$
|
(56
|
)
|
|
$
|
(200
|
)
|
|
Writedowns for impairments on equity securities
|
|
(126
|
)
|
|
(32
|
)
|
|
(15
|
)
|
|||
|
(1)
|
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
|
|
|
|
Year Ended December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
(in millions)
|
||||||
|
Balance, beginning of period
|
|
$
|
781
|
|
|
$
|
968
|
|
|
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period
|
|
(243
|
)
|
|
(230
|
)
|
||
|
Credit loss impairments previously recognized on securities impaired to fair value during the period(1)
|
|
(20
|
)
|
|
(6
|
)
|
||
|
Credit loss impairments recognized in the current period on securities not previously impaired
|
|
3
|
|
|
16
|
|
||
|
Additional credit loss impairments recognized in the current period on securities previously impaired
|
|
3
|
|
|
6
|
|
||
|
Increases due to the passage of time on previously recorded credit losses
|
|
20
|
|
|
42
|
|
||
|
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected
|
|
(12
|
)
|
|
(15
|
)
|
||
|
Balance, end of period
|
|
$
|
532
|
|
|
$
|
781
|
|
|
(1)
|
Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Short-term investments and cash equivalents
|
|
$
|
765
|
|
|
$
|
765
|
|
|
$
|
196
|
|
|
$
|
196
|
|
|
Fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate securities
|
|
12,797
|
|
|
12,851
|
|
|
11,922
|
|
|
12,439
|
|
||||
|
Commercial mortgage-backed securities
|
|
1,860
|
|
|
1,862
|
|
|
2,505
|
|
|
2,546
|
|
||||
|
Residential mortgage-backed securities(1)
|
|
1,411
|
|
|
1,428
|
|
|
1,640
|
|
|
1,676
|
|
||||
|
Asset-backed securities(2)
|
|
1,295
|
|
|
1,299
|
|
|
1,180
|
|
|
1,198
|
|
||||
|
Foreign government bonds
|
|
680
|
|
|
694
|
|
|
621
|
|
|
650
|
|
||||
|
U.S. government authorities and agencies and obligations of U.S. states
|
|
326
|
|
|
369
|
|
|
303
|
|
|
372
|
|
||||
|
Total fixed maturities
|
|
18,369
|
|
|
18,503
|
|
|
18,171
|
|
|
18,881
|
|
||||
|
Equity securities
|
|
1,030
|
|
|
1,254
|
|
|
896
|
|
|
1,186
|
|
||||
|
Total trading account assets supporting insurance liabilities
|
|
$
|
20,164
|
|
|
$
|
20,522
|
|
|
$
|
19,263
|
|
|
$
|
20,263
|
|
|
(1)
|
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
|
|
(2)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Short-term investments and cash equivalents
|
|
$
|
26
|
|
|
$
|
26
|
|
|
$
|
27
|
|
|
$
|
27
|
|
|
Fixed maturities
|
|
11,132
|
|
|
10,764
|
|
|
8,306
|
|
|
8,282
|
|
||||
|
Equity securities
|
|
1,006
|
|
|
1,098
|
|
|
992
|
|
|
1,105
|
|
||||
|
Other
|
|
12
|
|
|
15
|
|
|
7
|
|
|
11
|
|
||||
|
Subtotal
|
|
$
|
12,176
|
|
|
11,903
|
|
|
$
|
9,332
|
|
|
9,425
|
|
||
|
Derivative instruments
|
|
|
|
2,555
|
|
|
|
|
1,449
|
|
||||||
|
Total other trading account assets
|
|
|
|
$
|
14,458
|
|
|
|
|
$
|
10,874
|
|
||||
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Investments in Japanese government and government agency securities:
|
|
|
|
|
|
|
|
|
||||||||
|
Fixed maturities, available-for-sale
|
|
$
|
53,851
|
|
|
$
|
61,911
|
|
|
$
|
52,703
|
|
|
$
|
60,379
|
|
|
Fixed maturities, held-to-maturity
|
|
796
|
|
|
988
|
|
|
801
|
|
|
981
|
|
||||
|
Trading account assets supporting insurance liabilities
|
|
492
|
|
|
502
|
|
|
457
|
|
|
470
|
|
||||
|
Other trading account assets
|
|
33
|
|
|
33
|
|
|
36
|
|
|
36
|
|
||||
|
Short-term investments
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Cash equivalents
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Total
|
|
$
|
55,172
|
|
|
$
|
63,434
|
|
|
$
|
53,997
|
|
|
$
|
61,866
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Investments in South Korean government and government agency securities:
|
|
|
|
|
|
|
|
|
||||||||
|
Fixed maturities, available-for-sale
|
|
$
|
7,191
|
|
|
$
|
9,233
|
|
|
$
|
6,927
|
|
|
$
|
8,438
|
|
|
Fixed maturities, held-to-maturity
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Trading account assets supporting insurance liabilities
|
|
44
|
|
|
44
|
|
|
49
|
|
|
50
|
|
||||
|
Other trading account assets
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Short-term investments
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Cash equivalents
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Total
|
|
$
|
7,235
|
|
|
$
|
9,277
|
|
|
$
|
6,976
|
|
|
$
|
8,488
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||
|
|
|
Amount
(in millions)
|
|
% of
Total
|
|
Amount
(in millions)
|
|
% of
Total
|
||||||
|
Commercial mortgage and agricultural property loans by property type:
|
|
|
|
|
|
|
|
|
||||||
|
Office
|
|
$
|
11,226
|
|
|
22.9
|
%
|
|
$
|
9,612
|
|
|
21.5
|
%
|
|
Retail
|
|
8,917
|
|
|
18.2
|
|
|
8,765
|
|
|
19.6
|
|
||
|
Apartments/Multi-Family
|
|
12,034
|
|
|
24.5
|
|
|
10,369
|
|
|
23.2
|
|
||
|
Industrial
|
|
7,775
|
|
|
15.9
|
|
|
7,628
|
|
|
16.9
|
|
||
|
Hospitality
|
|
2,513
|
|
|
5.1
|
|
|
2,270
|
|
|
5.1
|
|
||
|
Other
|
|
3,722
|
|
|
7.6
|
|
|
3,659
|
|
|
8.2
|
|
||
|
Total commercial mortgage loans
|
|
46,187
|
|
|
94.2
|
|
|
42,303
|
|
|
94.5
|
|
||
|
Agricultural property loans
|
|
2,859
|
|
|
5.8
|
|
|
2,445
|
|
|
5.5
|
|
||
|
Total commercial mortgage and agricultural property loans by property type
|
|
49,046
|
|
|
100.0
|
%
|
|
44,748
|
|
|
100.0
|
%
|
||
|
Valuation allowance
|
|
(99
|
)
|
|
|
|
(105
|
)
|
|
|
||||
|
Total net commercial mortgage and agricultural property loans by property type
|
|
48,947
|
|
|
|
|
44,643
|
|
|
|
||||
|
Other loans:
|
|
|
|
|
|
|
|
|
||||||
|
Uncollateralized loans
|
|
1,012
|
|
|
|
|
1,092
|
|
|
|
||||
|
Residential property loans
|
|
301
|
|
|
|
|
392
|
|
|
|
||||
|
Other collateralized loans
|
|
312
|
|
|
|
|
319
|
|
|
|
||||
|
Total other loans
|
|
1,625
|
|
|
|
|
1,803
|
|
|
|
||||
|
Valuation allowance
|
|
(13
|
)
|
|
|
|
(14
|
)
|
|
|
||||
|
Total net other loans
|
|
1,612
|
|
|
|
|
1,789
|
|
|
|
||||
|
Total commercial mortgage and other loans(1)
|
|
$
|
50,559
|
|
|
|
|
$
|
46,432
|
|
|
|
||
|
(1)
|
Includes loans held at fair value.
|
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
|
|
Commercial
Mortgage
Loans
|
|
Agricultural
Property
Loans
|
|
Residential
Property
Loans
|
|
Other
Collateralized
Loans
|
|
Uncollateralized
Loans
|
|
Total
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Allowance for credit losses, beginning of year
|
|
$
|
104
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
9
|
|
|
$
|
119
|
|
|
Addition to (release of) allowance of losses
|
|
(7
|
)
|
|
1
|
|
|
(2
|
)
|
|
0
|
|
|
1
|
|
|
(7
|
)
|
||||||
|
Charge-offs, net of recoveries
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Change in foreign exchange
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total ending balance
|
|
$
|
97
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
10
|
|
|
$
|
112
|
|
|
|
|
December 31, 2014
|
||||||||||||||||||||||
|
|
|
Commercial
Mortgage
Loans
|
|
Agricultural
Property
Loans
|
|
Residential
Property
Loans
|
|
Other
Collateralized
Loans
|
|
Uncollateralized
Loans
|
|
Total
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Allowance for credit losses, beginning of year
|
|
$
|
188
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
12
|
|
|
$
|
216
|
|
|
Addition to (release of) allowance of losses
|
|
(77
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(87
|
)
|
||||||
|
Charge-offs, net of recoveries
|
|
(7
|
)
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
(9
|
)
|
||||||
|
Change in foreign exchange
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
|
Total ending balance
|
|
$
|
104
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
9
|
|
|
$
|
119
|
|
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
|
|
Commercial
Mortgage
Loans
|
|
Agricultural
Property
Loans
|
|
Residential
Property
Loans
|
|
Other
Collateralized
Loans
|
|
Uncollateralized
Loans
|
|
Total
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Allowance for Credit Losses:
|
|
|
||||||||||||||||||||||
|
Individually evaluated for impairment
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
Collectively evaluated for impairment
|
|
96
|
|
|
2
|
|
|
3
|
|
|
0
|
|
|
10
|
|
|
111
|
|
||||||
|
Loans acquired with deteriorated credit quality
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total ending balance
|
|
$
|
97
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
10
|
|
|
$
|
112
|
|
|
Recorded Investment(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross of reserves: individually evaluated for impairment
|
|
$
|
111
|
|
|
$
|
8
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
121
|
|
|
Gross of reserves: collectively evaluated for impairment
|
|
46,076
|
|
|
2,851
|
|
|
301
|
|
|
312
|
|
|
1,010
|
|
|
50,550
|
|
||||||
|
Gross of reserves: loans acquired with deteriorated credit quality
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total ending balance, gross of reserves
|
|
$
|
46,187
|
|
|
$
|
2,859
|
|
|
$
|
301
|
|
|
$
|
312
|
|
|
$
|
1,012
|
|
|
$
|
50,671
|
|
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
|
|
|
December 31, 2014(1)
|
||||||||||||||||||||||
|
|
|
Commercial
Mortgage
Loans
|
|
Agricultural
Property
Loans
|
|
Residential
Property
Loans
|
|
Other
Collateralized
Loans
|
|
Uncollateralized
Loans
|
|
Total
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Allowance for Credit Losses:
|
|
|
||||||||||||||||||||||
|
Individually evaluated for impairment
|
|
$
|
8
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
8
|
|
|
Collectively evaluated for impairment
|
|
96
|
|
|
1
|
|
|
5
|
|
|
0
|
|
|
9
|
|
|
111
|
|
||||||
|
Loans acquired with deteriorated credit quality
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total ending balance
|
|
$
|
104
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
9
|
|
|
$
|
119
|
|
|
Recorded Investment(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross of reserves: individually evaluated for impairment
|
|
$
|
247
|
|
|
$
|
4
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
254
|
|
|
Gross of reserves: collectively evaluated for impairment
|
|
42,056
|
|
|
2,441
|
|
|
392
|
|
|
318
|
|
|
1,090
|
|
|
46,297
|
|
||||||
|
Gross of reserves: loans acquired with deteriorated credit quality
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total ending balance, gross of reserves
|
|
$
|
42,303
|
|
|
$
|
2,445
|
|
|
$
|
392
|
|
|
$
|
319
|
|
|
$
|
1,092
|
|
|
$
|
46,551
|
|
|
(1)
|
Prior period amounts are presented on a basis consistent with current period presentation.
|
|
(2)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
|
Recorded
Investment(1)
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
Before
Allowance(2)
|
|
Interest
Income
Recognized(3)
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial mortgage loans
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Agricultural property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|||||
|
Residential property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other collateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Uncollateralized loans
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total with no related allowance
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial mortgage loans
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
52
|
|
|
$
|
3
|
|
|
Agricultural property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Residential property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other collateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Uncollateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total with related allowance
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
52
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial mortgage loans
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
52
|
|
|
$
|
3
|
|
|
Agricultural property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|||||
|
Residential property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other collateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Uncollateralized loans
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
54
|
|
|
$
|
3
|
|
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
|
(2)
|
Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
|
|
(3)
|
The interest income recognized is for the year-to-date income regardless of when the impairment occurred.
|
|
|
|
December 31, 2014
|
||||||||||||||||||
|
|
|
Recorded
Investment(1)
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
Before
Allowance(2)
|
|
Interest
Income
Recognized(3)
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial mortgage loans
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
0
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
Agricultural property loans
|
|
4
|
|
|
4
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|||||
|
Residential property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other collateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Uncollateralized loans
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total with no related allowance
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
0
|
|
|
$
|
20
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial mortgage loans
|
|
$
|
76
|
|
|
$
|
76
|
|
|
$
|
8
|
|
|
$
|
82
|
|
|
$
|
6
|
|
|
Agricultural property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Residential property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other collateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
3
|
|
|
1
|
|
|||||
|
Uncollateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total with related allowance
|
|
$
|
76
|
|
|
$
|
76
|
|
|
$
|
8
|
|
|
$
|
85
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial mortgage loans
|
|
$
|
84
|
|
|
$
|
84
|
|
|
$
|
8
|
|
|
$
|
98
|
|
|
$
|
7
|
|
|
Agricultural property loans
|
|
4
|
|
|
4
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|||||
|
Residential property loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other collateralized loans
|
|
0
|
|
|
0
|
|
|
0
|
|
|
3
|
|
|
1
|
|
|||||
|
Uncollateralized loans
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total
|
|
$
|
88
|
|
|
$
|
89
|
|
|
$
|
8
|
|
|
$
|
105
|
|
|
$
|
8
|
|
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
|
(2)
|
Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
|
|
(3)
|
The interest income recognized is for the year-to-date income regardless of when the impairments occurred.
|
|
Commercial mortgage loans
|
|
|
||||||||||||||
|
|
|
Debt Service Coverage Ratio—December 31, 2015
|
||||||||||||||
|
|
|
Greater than
1.2X
|
|
1.0X to <1.2X
|
|
Less than
1.0X
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Loan-to-Value Ratio
|
|
|
||||||||||||||
|
0%-59.99%
|
|
$
|
25,978
|
|
|
$
|
515
|
|
|
$
|
207
|
|
|
$
|
26,700
|
|
|
60%-69.99%
|
|
12,191
|
|
|
395
|
|
|
234
|
|
|
12,820
|
|
||||
|
70%-79.99%
|
|
5,668
|
|
|
500
|
|
|
97
|
|
|
6,265
|
|
||||
|
Greater than 80%
|
|
119
|
|
|
151
|
|
|
132
|
|
|
402
|
|
||||
|
Total commercial mortgage loans
|
|
$
|
43,956
|
|
|
$
|
1,561
|
|
|
$
|
670
|
|
|
$
|
46,187
|
|
|
Agricultural property loans
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Debt Service Coverage Ratio—December 31, 2015
|
||||||||||||||
|
|
|
Greater than
1.2X
|
|
1.0X to <1.2X
|
|
Less than
1.0X
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Loan-to-Value Ratio
|
|
|
||||||||||||||
|
0%-59.99%
|
|
$
|
2,587
|
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
2,674
|
|
|
60%-69.99%
|
|
185
|
|
|
0
|
|
|
0
|
|
|
185
|
|
||||
|
70%-79.99%
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Greater than 80%
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Total agricultural property loans
|
|
$
|
2,772
|
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
2,859
|
|
|
Total commercial mortgage and agricultural property loans
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Debt Service Coverage Ratio—December 31, 2015
|
||||||||||||||
|
|
|
Greater than
1.2X
|
|
1.0X to <1.2X
|
|
Less than
1.0X
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Loan-to-Value Ratio
|
|
|
||||||||||||||
|
0%-59.99%
|
|
$
|
28,565
|
|
|
$
|
599
|
|
|
$
|
210
|
|
|
$
|
29,374
|
|
|
60%-69.99%
|
|
12,376
|
|
|
395
|
|
|
234
|
|
|
13,005
|
|
||||
|
70%-79.99%
|
|
5,668
|
|
|
500
|
|
|
97
|
|
|
6,265
|
|
||||
|
Greater than 80%
|
|
119
|
|
|
151
|
|
|
132
|
|
|
402
|
|
||||
|
Total commercial mortgage and agricultural property loans
|
|
$
|
46,728
|
|
|
$
|
1,645
|
|
|
$
|
673
|
|
|
$
|
49,046
|
|
|
Commercial mortgage loans
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Debt Service Coverage Ratio—December 31, 2014
|
||||||||||||||
|
|
|
Greater than
1.2X
|
|
1.0X to <1.2X
|
|
Less than
1.0X
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Loan-to-Value Ratio
|
|
|
||||||||||||||
|
0%-59.99%
|
|
$
|
22,557
|
|
|
$
|
637
|
|
|
$
|
207
|
|
|
$
|
23,401
|
|
|
60%-69.99%
|
|
12,563
|
|
|
500
|
|
|
237
|
|
|
13,300
|
|
||||
|
70%-79.99%
|
|
4,354
|
|
|
664
|
|
|
21
|
|
|
5,039
|
|
||||
|
Greater than 80%
|
|
234
|
|
|
127
|
|
|
202
|
|
|
563
|
|
||||
|
Total commercial mortgage loans
|
|
$
|
39,708
|
|
|
$
|
1,928
|
|
|
$
|
667
|
|
|
$
|
42,303
|
|
|
Agricultural property loans
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Debt Service Coverage Ratio—December 31, 2014
|
||||||||||||||
|
|
|
Greater than
1.2X
|
|
1.0X to <1.2X
|
|
Less than
1.0X
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Loan-to-Value Ratio
|
|
|
||||||||||||||
|
0%-59.99%
|
|
$
|
2,152
|
|
|
$
|
140
|
|
|
$
|
2
|
|
|
$
|
2,294
|
|
|
60%-69.99%
|
|
151
|
|
|
0
|
|
|
0
|
|
|
151
|
|
||||
|
70%-79.99%
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Greater than 80%
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Total agricultural property loans
|
|
$
|
2,303
|
|
|
$
|
140
|
|
|
$
|
2
|
|
|
$
|
2,445
|
|
|
Total commercial mortgage and agricultural property loans
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Debt Service Coverage Ratio—December 31, 2014
|
||||||||||||||
|
|
|
Greater than
1.2X
|
|
1.0X to <1.2X
|
|
Less than
1.0X
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Loan-to-Value Ratio
|
|
|
||||||||||||||
|
0%-59.99%
|
|
$
|
24,709
|
|
|
$
|
777
|
|
|
$
|
209
|
|
|
$
|
25,695
|
|
|
60%-69.99%
|
|
12,714
|
|
|
500
|
|
|
237
|
|
|
13,451
|
|
||||
|
70%-79.99%
|
|
4,354
|
|
|
664
|
|
|
21
|
|
|
5,039
|
|
||||
|
Greater than 80%
|
|
234
|
|
|
127
|
|
|
202
|
|
|
563
|
|
||||
|
Total commercial mortgage and agricultural property loans
|
|
$
|
42,011
|
|
|
$
|
2,068
|
|
|
$
|
669
|
|
|
$
|
44,748
|
|
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||
|
|
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater
Than 90
Days -
Accruing
|
|
Greater
Than 90
Days - Not
Accruing
|
|
Total Past
Due
|
|
Total
Commercial
Mortgage
and Other
Loans
|
|
Non-
Accrual
Status
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Commercial mortgage loans
|
|
$
|
46,187
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
46,187
|
|
|
$
|
53
|
|
|
Agricultural property loans
|
|
2,856
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
3
|
|
|
2,859
|
|
|
1
|
|
||||||||
|
Residential property loans
|
|
288
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|
6
|
|
|
13
|
|
|
301
|
|
|
6
|
|
||||||||
|
Other collateralized loans
|
|
312
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
312
|
|
|
0
|
|
||||||||
|
Uncollateralized loans
|
|
1,012
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,012
|
|
|
0
|
|
||||||||
|
Total
|
|
$
|
50,655
|
|
|
$
|
9
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
7
|
|
|
$
|
16
|
|
|
$
|
50,671
|
|
|
$
|
60
|
|
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||||||
|
|
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater
Than 90
Days -
Accruing
|
|
Greater
Than 90
Days - Not
Accruing
|
|
Total Past
Due
|
|
Total
Commercial
Mortgage
and Other
Loans
|
|
Non-
Accrual
Status
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Commercial mortgage loans
|
|
$
|
42,239
|
|
|
$
|
62
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
64
|
|
|
$
|
42,303
|
|
|
$
|
101
|
|
|
Agricultural property loans
|
|
2,443
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|
|
2
|
|
|
2,445
|
|
|
1
|
|
||||||||
|
Residential property loans
|
|
375
|
|
|
7
|
|
|
2
|
|
|
0
|
|
|
8
|
|
|
17
|
|
|
392
|
|
|
8
|
|
||||||||
|
Other collateralized loans
|
|
319
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
319
|
|
|
0
|
|
||||||||
|
Uncollateralized loans
|
|
1,092
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,092
|
|
|
0
|
|
||||||||
|
Total
|
|
$
|
46,468
|
|
|
$
|
69
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
11
|
|
|
$
|
83
|
|
|
$
|
46,551
|
|
|
$
|
110
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
(in millions)
|
||||||
|
Joint ventures and limited partnerships:
|
|
|
|
|
||||
|
Non-real estate-related
|
|
$
|
6,447
|
|
|
$
|
6,527
|
|
|
Real estate-related
|
|
1,085
|
|
|
1,018
|
|
||
|
Total joint ventures and limited partnerships
|
|
7,532
|
|
|
7,545
|
|
||
|
Real estate held through direct ownership
|
|
1,464
|
|
|
2,235
|
|
||
|
Other
|
|
990
|
|
|
1,141
|
|
||
|
Total other long-term investments
|
|
$
|
9,986
|
|
|
$
|
10,921
|
|
|
|
|
At December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
(in millions)
|
||||||
|
STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
||||
|
Total assets(1)
|
|
$
|
53,799
|
|
|
$
|
50,602
|
|
|
Total liabilities(2)
|
|
$
|
13,610
|
|
|
$
|
13,152
|
|
|
Partners’ capital
|
|
40,189
|
|
|
37,450
|
|
||
|
Total liabilities and partners’ capital
|
|
$
|
53,799
|
|
|
$
|
50,602
|
|
|
Total liabilities and partners’ capital included above
|
|
$
|
4,398
|
|
|
$
|
4,599
|
|
|
Equity in limited partnership interests not included above
|
|
142
|
|
|
42
|
|
||
|
Carrying value
|
|
$
|
4,540
|
|
|
$
|
4,641
|
|
|
(1)
|
Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets.
|
|
(2)
|
Liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities.
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(in millions)
|
||||||||||
|
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
||||||
|
Total revenue(1)
|
|
$
|
4,356
|
|
|
$
|
5,632
|
|
|
$
|
4,013
|
|
|
Total expenses(2)
|
|
(1,803
|
)
|
|
(1,654
|
)
|
|
(943
|
)
|
|||
|
Net earnings (losses)
|
|
$
|
2,553
|
|
|
$
|
3,978
|
|
|
$
|
3,070
|
|
|
Equity in net earnings (losses) included above
|
|
$
|
216
|
|
|
$
|
522
|
|
|
$
|
255
|
|
|
Equity in net earnings (losses) of limited partnership interests not included above
|
|
32
|
|
|
72
|
|
|
77
|
|
|||
|
Total equity in net earnings (losses)
|
|
$
|
248
|
|
|
$
|
594
|
|
|
$
|
332
|
|
|
(1)
|
Revenue consists of income from investments in real estate, investments in securities and other income.
|
|
(2)
|
Expenses consist primarily of interest expense, management fees, salary expenses and other expenses.
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fixed maturities, available-for-sale(1)
|
|
$
|
10,347
|
|
|
$
|
10,558
|
|
|
$
|
10,541
|
|
|
Fixed maturities, held-to-maturity(1)
|
|
202
|
|
|
185
|
|
|
125
|
|
|||
|
Equity securities, available-for-sale
|
|
337
|
|
|
354
|
|
|
337
|
|
|||
|
Trading account assets
|
|
1,205
|
|
|
1,074
|
|
|
963
|
|
|||
|
Commercial mortgage and other loans
|
|
2,255
|
|
|
2,103
|
|
|
1,985
|
|
|||
|
Policy loans
|
|
619
|
|
|
632
|
|
|
611
|
|
|||
|
Short-term investments and cash equivalents
|
|
56
|
|
|
38
|
|
|
40
|
|
|||
|
Other long-term investments
|
|
717
|
|
|
1,050
|
|
|
710
|
|
|||
|
Gross investment income
|
|
15,738
|
|
|
15,994
|
|
|
15,312
|
|
|||
|
Less: investment expenses
|
|
(909
|
)
|
|
(738
|
)
|
|
(583
|
)
|
|||
|
Net investment income
|
|
$
|
14,829
|
|
|
$
|
15,256
|
|
|
$
|
14,729
|
|
|
(1)
|
Includes income on credit-linked notes which are reported on the same financial line item as related surplus notes, as conditions are met for right to offset.
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fixed maturities
|
|
$
|
1,634
|
|
|
$
|
1,194
|
|
|
$
|
(93
|
)
|
|
Equity securities
|
|
451
|
|
|
512
|
|
|
444
|
|
|||
|
Commercial mortgage and other loans
|
|
37
|
|
|
110
|
|
|
79
|
|
|||
|
Investment real estate
|
|
40
|
|
|
(5
|
)
|
|
2
|
|
|||
|
Joint ventures and limited partnerships
|
|
(122
|
)
|
|
(15
|
)
|
|
34
|
|
|||
|
Derivatives(1)
|
|
1,970
|
|
|
(182
|
)
|
|
(5,688
|
)
|
|||
|
Other
|
|
15
|
|
|
22
|
|
|
16
|
|
|||
|
Realized investment gains (losses), net
|
|
$
|
4,025
|
|
|
$
|
1,636
|
|
|
$
|
(5,206
|
)
|
|
(1)
|
Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination.
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fixed maturity securities on which an OTTI loss has been recognized
|
|
$
|
234
|
|
|
$
|
349
|
|
|
$
|
110
|
|
|
Fixed maturity securities, available-for-sale—all other
|
|
24,673
|
|
|
33,625
|
|
|
18,029
|
|
|||
|
Equity securities, available-for-sale
|
|
2,427
|
|
|
2,940
|
|
|
2,907
|
|
|||
|
Derivatives designated as cash flow hedges(1)
|
|
1,165
|
|
|
206
|
|
|
(446
|
)
|
|||
|
Other investments(2)
|
|
(25
|
)
|
|
(7
|
)
|
|
4
|
|
|||
|
Net unrealized gains (losses) on investments
|
|
$
|
28,474
|
|
|
$
|
37,113
|
|
|
$
|
20,604
|
|
|
(1)
|
See Note 21 for more information on cash flow hedges.
|
|
(2)
|
As of December 31,
2015
, there were
$0 million
of net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized losses on certain joint ventures that are strategic in nature and are included in “Other assets,” and losses on notes associated with payables under a netting agreement.
|
|
|
|
2015
|
||||||||||||||||||||||
|
|
|
Less than twelve months
|
|
Twelve months or more
|
|
Total
|
||||||||||||||||||
|
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Fixed maturities(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
|
$
|
3,068
|
|
|
$
|
19
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3,068
|
|
|
$
|
19
|
|
|
Obligations of U.S. states and their political subdivisions
|
|
1,391
|
|
|
40
|
|
|
7
|
|
|
1
|
|
|
1,398
|
|
|
41
|
|
||||||
|
Foreign government bonds
|
|
1,925
|
|
|
82
|
|
|
411
|
|
|
65
|
|
|
2,336
|
|
|
147
|
|
||||||
|
U.S. corporate public securities
|
|
24,642
|
|
|
1,396
|
|
|
3,455
|
|
|
559
|
|
|
28,097
|
|
|
1,955
|
|
||||||
|
U.S. corporate private securities
|
|
6,996
|
|
|
266
|
|
|
802
|
|
|
93
|
|
|
7,798
|
|
|
359
|
|
||||||
|
Foreign corporate public securities
|
|
5,985
|
|
|
288
|
|
|
1,584
|
|
|
333
|
|
|
7,569
|
|
|
621
|
|
||||||
|
Foreign corporate private securities
|
|
6,199
|
|
|
340
|
|
|
3,917
|
|
|
654
|
|
|
10,116
|
|
|
994
|
|
||||||
|
Commercial mortgage-backed securities
|
|
3,888
|
|
|
63
|
|
|
473
|
|
|
7
|
|
|
4,361
|
|
|
70
|
|
||||||
|
Asset-backed securities
|
|
4,342
|
|
|
33
|
|
|
3,138
|
|
|
88
|
|
|
7,480
|
|
|
121
|
|
||||||
|
Residential mortgage-backed securities
|
|
558
|
|
|
4
|
|
|
119
|
|
|
2
|
|
|
677
|
|
|
6
|
|
||||||
|
Total
|
|
$
|
58,994
|
|
|
$
|
2,531
|
|
|
$
|
13,906
|
|
|
$
|
1,802
|
|
|
$
|
72,900
|
|
|
$
|
4,333
|
|
|
Equity securities, available-for-sale
|
|
$
|
1,862
|
|
|
$
|
142
|
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
1,873
|
|
|
$
|
143
|
|
|
(1)
|
Includes
$0 million
of fair value and
$0 million
of gross unrealized losses at December 31,
2015
, on securities classified as held-to-maturity, a portion of which is not reflected in AOCI.
|
|
|
|
2014(2)
|
||||||||||||||||||||||
|
|
|
Less than twelve months
|
|
Twelve months or more
|
|
Total
|
||||||||||||||||||
|
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Fixed maturities(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
|
$
|
2,145
|
|
|
$
|
5
|
|
|
$
|
10
|
|
|
$
|
0
|
|
|
$
|
2,155
|
|
|
$
|
5
|
|
|
Obligations of U.S. states and their political subdivisions
|
|
105
|
|
|
1
|
|
|
89
|
|
|
2
|
|
|
194
|
|
|
3
|
|
||||||
|
Foreign government bonds
|
|
839
|
|
|
26
|
|
|
1,052
|
|
|
91
|
|
|
1,891
|
|
|
117
|
|
||||||
|
U.S. corporate public securities
|
|
4,213
|
|
|
95
|
|
|
9,548
|
|
|
441
|
|
|
13,761
|
|
|
536
|
|
||||||
|
U.S. corporate private securities
|
|
1,866
|
|
|
55
|
|
|
838
|
|
|
34
|
|
|
2,704
|
|
|
89
|
|
||||||
|
Foreign corporate public securities
|
|
1,902
|
|
|
72
|
|
|
2,400
|
|
|
143
|
|
|
4,302
|
|
|
215
|
|
||||||
|
Foreign corporate private securities
|
|
3,345
|
|
|
179
|
|
|
560
|
|
|
36
|
|
|
3,905
|
|
|
215
|
|
||||||
|
Commercial mortgage-backed securities
|
|
1,299
|
|
|
6
|
|
|
1,746
|
|
|
33
|
|
|
3,045
|
|
|
39
|
|
||||||
|
Asset-backed securities
|
|
3,417
|
|
|
16
|
|
|
3,229
|
|
|
118
|
|
|
6,646
|
|
|
134
|
|
||||||
|
Residential mortgage-backed securities
|
|
35
|
|
|
0
|
|
|
194
|
|
|
3
|
|
|
229
|
|
|
3
|
|
||||||
|
Total
|
|
$
|
19,166
|
|
|
$
|
455
|
|
|
$
|
19,666
|
|
|
$
|
901
|
|
|
$
|
38,832
|
|
|
$
|
1,356
|
|
|
Equity securities, available-for-sale
|
|
$
|
1,670
|
|
|
$
|
82
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
1,679
|
|
|
$
|
83
|
|
|
(1)
|
Includes
$91 million
of fair value and
$1 million
of gross unrealized losses at December 31,
2014
, on securities classified as held-to-maturity, a portion of which is not reflected in AOCI.
|
|
(2)
|
Prior period amounts are presented on a basis consistent with the current period presentation.
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight & Continuous
|
|
Up to 30 Days
|
|
30 to 90 Days
|
|
Greater than 90 Days
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
1,991
|
|
|
$
|
4,513
|
|
|
$
|
253
|
|
|
$
|
0
|
|
|
$
|
6,757
|
|
|
Obligations of U.S. states and their political subdivisions
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Foreign government bonds
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
U.S. corporate public securities
|
11
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
11
|
|
|||||
|
U.S. corporate private securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Foreign corporate public securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Foreign corporate private securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Asset-backed securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Commercial mortgage-backed securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Residential mortgage-backed securities
|
169
|
|
|
945
|
|
|
0
|
|
|
0
|
|
|
1,114
|
|
|||||
|
Equity securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Total repurchase agreements
|
$
|
2,171
|
|
|
$
|
5,458
|
|
|
$
|
253
|
|
|
$
|
0
|
|
|
$
|
7,882
|
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight & Continuous
|
|
Up to 30 Days
|
|
30 to 90 Days
|
|
Greater than 90 Days
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
94
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
94
|
|
|
Obligations of U.S. states and their political subdivisions
|
4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|||||
|
Foreign government bonds
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
U.S. corporate public securities
|
1,401
|
|
|
86
|
|
|
0
|
|
|
0
|
|
|
1,487
|
|
|||||
|
U.S. corporate private securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Foreign corporate public securities
|
579
|
|
|
50
|
|
|
0
|
|
|
0
|
|
|
629
|
|
|||||
|
Foreign corporate private securities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Asset-backed securities
|
241
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
241
|
|
|||||
|
Commercial mortgage-backed securities
|
8
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
8
|
|
|||||
|
Residential mortgage-backed securities
|
0
|
|
|
97
|
|
|
0
|
|
|
0
|
|
|
97
|
|
|||||
|
Equity securities
|
936
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
936
|
|
|||||
|
Total securities lending transactions
|
$
|
3,263
|
|
|
$
|
233
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3,496
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
(in millions)
|
||||||
|
Fixed maturities
|
|
$
|
11,732
|
|
|
$
|
15,338
|
|
|
Trading account assets supporting insurance liabilities
|
|
327
|
|
|
391
|
|
||
|
Other trading account assets
|
|
8
|
|
|
231
|
|
||
|
Separate account assets
|
|
2,128
|
|
|
2,861
|
|
||
|
Equity securities
|
|
903
|
|
|
512
|
|
||
|
Total securities pledged
|
|
$
|
15,098
|
|
|
$
|
19,333
|
|
|
5.
|
VARIABLE INTEREST ENTITIES
|
|
|
|
Consolidated VIEs for
Which the Company is the
Investment Manager
|
|
Other Consolidated VIEs
|
||||||||||||
|
|
|
December 31,
|
|
December 31,
|
||||||||||||
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fixed maturities, available-for-sale
|
|
$
|
0
|
|
|
$
|
44
|
|
|
$
|
179
|
|
|
$
|
104
|
|
|
Fixed maturities, held-to-maturity
|
|
0
|
|
|
0
|
|
|
760
|
|
|
763
|
|
||||
|
Trading account assets supporting insurance liabilities
|
|
0
|
|
|
0
|
|
|
10
|
|
|
11
|
|
||||
|
Other trading account assets
|
|
9,536
|
|
|
6,943
|
|
|
0
|
|
|
0
|
|
||||
|
Commercial mortgage and other loans
|
|
0
|
|
|
13
|
|
|
300
|
|
|
300
|
|
||||
|
Other long-term investments
|
|
0
|
|
|
0
|
|
|
155
|
|
|
159
|
|
||||
|
Cash and cash equivalents
|
|
337
|
|
|
623
|
|
|
1
|
|
|
0
|
|
||||
|
Accrued investment income
|
|
56
|
|
|
39
|
|
|
3
|
|
|
3
|
|
||||
|
Other assets
|
|
324
|
|
|
166
|
|
|
3
|
|
|
0
|
|
||||
|
Total assets of consolidated VIEs
|
|
$
|
10,253
|
|
|
$
|
7,828
|
|
|
$
|
1,411
|
|
|
$
|
1,340
|
|
|
Notes issued by consolidated VIEs
|
|
$
|
8,597
|
|
|
$
|
6,058
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
674
|
|
|
674
|
|
|
3
|
|
|
1
|
|
||||
|
Total liabilities of consolidated VIEs
|
|
$
|
9,271
|
|
|
$
|
6,732
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
6.
|
DEFERRED POLICY ACQUISITION COSTS
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
(in millions)
|
||||||||||
|
Balance, beginning of year
|
$
|
15,971
|
|
|
$
|
16,512
|
|
|
$
|
14,100
|
|
|
Capitalization of commissions, sales and issue expenses
|
2,653
|
|
|
2,694
|
|
|
2,902
|
|
|||
|
Amortization—Impact of assumption and experience unlocking and true-ups
|
280
|
|
|
629
|
|
|
328
|
|
|||
|
Amortization—All other
|
(2,400
|
)
|
|
(2,602
|
)
|
|
(568
|
)
|
|||
|
Change in unrealized investment gains and losses
|
477
|
|
|
(697
|
)
|
|
492
|
|
|||
|
Foreign currency translation and other
|
(263
|
)
|
|
(565
|
)
|
|
(742
|
)
|
|||
|
Balance, end of year
|
$
|
16,718
|
|
|
$
|
15,971
|
|
|
$
|
16,512
|
|
|
7.
|
INVESTMENTS IN OPERATING JOINT VENTURES
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Investment in operating joint ventures
|
|
$
|
341
|
|
|
$
|
325
|
|
|
$
|
361
|
|
|
Dividends received from operating joint ventures
|
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
31
|
|
|
After-tax equity earnings of operating joint ventures(1)
|
|
$
|
15
|
|
|
$
|
16
|
|
|
$
|
59
|
|
|
(1)
|
Includes gains associated with sales of the Company’s previous investment, through a consortium, in China Pacific Group, for which the Company’s remaining shares were sold in January 2013. For the year ended December 31,
2013
, the Company recognized a pre-tax gain of
$66 million
from the sale of this investment.
|
|
8.
|
VALUE OF BUSINESS ACQUIRED
|
|
|
2015(1)
|
|
2014
|
|
2013
|
||||||
|
|
(in millions)
|
||||||||||
|
Balance, beginning of year
|
$
|
2,836
|
|
|
$
|
3,675
|
|
|
$
|
3,248
|
|
|
Acquisitions
|
0
|
|
|
7
|
|
|
1,370
|
|
|||
|
Amortization—Impact of assumption and experience unlocking and true-ups
|
128
|
|
|
(175
|
)
|
|
59
|
|
|||
|
Amortization—All other
|
(385
|
)
|
|
(420
|
)
|
|
(509
|
)
|
|||
|
Change in unrealized investment gains and losses
|
214
|
|
|
(89
|
)
|
|
(55
|
)
|
|||
|
Interest(2)
|
86
|
|
|
95
|
|
|
105
|
|
|||
|
Foreign currency translation
|
(57
|
)
|
|
(257
|
)
|
|
(543
|
)
|
|||
|
Other
|
6
|
|
|
0
|
|
|
0
|
|
|||
|
Balance, end of year
|
$
|
2,828
|
|
|
$
|
2,836
|
|
|
$
|
3,675
|
|
|
(1)
|
The VOBA balances at December 31,
2015
were
$201 million
,
$36 million
,
$1,332 million
,
$0 million
,
$1,250 million
, and
$9 million
related to the insurance transactions associated with the CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The weighted average remaining expected life of VOBA varies by product. The weighted average remaining expected lives were approximately
12
,
5
,
8
,
6
,
10
, and
13
years for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life., Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively.
|
|
(2)
|
The interest accrual rates vary by product. The interest rates for
2015
were
6.40%
,
6.05%
,
1.28%
to
2.87%
,
2.60%
,
3.00%
to
6.17%
and
4.07%
to
5.51%
for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The interest rates for
2014
were
6.40%
,
6.10%
,
1.28%
to
2.87%
,
2.60%
,
3.00%
to
6.17%
and
4.07%
to
5.51%
for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The interest rates for
2013
were
6.40%
,
6.14%
,
1.28%
to
2.87%
,
2.60%
and
3.00%
to
6.17%
for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life and the Hartford Life Business, respectively.
|
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
|
Estimated future VOBA amortization
|
$
|
269
|
|
|
$
|
249
|
|
|
$
|
227
|
|
|
$
|
209
|
|
|
$
|
193
|
|
|
9.
|
GOODWILL AND OTHER INTANGIBLES
|
|
|
Retirement
|
|
Asset
Management
|
|
International
Insurance
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Balance at December 31, 2012:
|
|
|
|
|
|
|
|
||||||||
|
Gross Goodwill
|
$
|
444
|
|
|
$
|
238
|
|
|
$
|
191
|
|
|
$
|
873
|
|
|
Accumulated Impairment Losses
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net Goodwill
|
444
|
|
|
238
|
|
|
191
|
|
|
873
|
|
||||
|
2013 Activity:
|
|
|
|
|
|
|
|
||||||||
|
Other(1)
|
0
|
|
|
2
|
|
|
(36
|
)
|
|
(34
|
)
|
||||
|
Balance at December 31, 2013:
|
|
|
|
|
|
|
|
||||||||
|
Gross Goodwill
|
444
|
|
|
240
|
|
|
155
|
|
|
839
|
|
||||
|
Accumulated Impairment Losses
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net Goodwill
|
444
|
|
|
240
|
|
|
155
|
|
|
839
|
|
||||
|
2014 Activity:
|
|
|
|
|
|
|
|
||||||||
|
Acquisitions
|
0
|
|
|
0
|
|
|
18
|
|
|
18
|
|
||||
|
Other(1)
|
0
|
|
|
(5
|
)
|
|
(21
|
)
|
|
(26
|
)
|
||||
|
Balance at December 31, 2014:
|
|
|
|
|
|
|
|
||||||||
|
Gross Goodwill
|
444
|
|
|
235
|
|
|
152
|
|
|
831
|
|
||||
|
Accumulated Impairment Losses
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net Goodwill
|
444
|
|
|
235
|
|
|
152
|
|
|
831
|
|
||||
|
2015 Activity:
|
|
|
|
|
|
|
|
||||||||
|
Acquisitions
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Other(1)
|
0
|
|
|
(4
|
)
|
|
(3
|
)
|
|
(7
|
)
|
||||
|
Balance at December 31, 2015:
|
|
|
|
|
|
|
|
||||||||
|
Gross Goodwill
|
444
|
|
|
231
|
|
|
149
|
|
|
824
|
|
||||
|
Accumulated Impairment Losses
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net Goodwill
|
$
|
444
|
|
|
$
|
231
|
|
|
$
|
149
|
|
|
$
|
824
|
|
|
(1)
|
Other represents foreign currency translation and purchase price adjustments.
|
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated
Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated
Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Mortgage servicing rights
|
$
|
500
|
|
|
$
|
(302
|
)
|
|
$
|
198
|
|
|
$
|
462
|
|
|
$
|
(265
|
)
|
|
$
|
197
|
|
|
Customer relationships
|
268
|
|
|
(196
|
)
|
|
72
|
|
|
275
|
|
|
(191
|
)
|
|
84
|
|
||||||
|
Other
|
72
|
|
|
(42
|
)
|
|
30
|
|
|
42
|
|
|
(32
|
)
|
|
10
|
|
||||||
|
Not subject to amortization
|
3
|
|
|
N/A
|
|
|
3
|
|
|
3
|
|
|
N/A
|
|
|
3
|
|
||||||
|
Total
|
|
|
|
|
$
|
303
|
|
|
|
|
|
|
$
|
294
|
|
||||||||
|
10.
|
POLICYHOLDERS’ LIABILITIES
|
|
|
2015
|
|
2014
|
||||
|
|
(in millions)
|
||||||
|
Life insurance
|
$
|
148,100
|
|
|
$
|
143,842
|
|
|
Individual and group annuities and supplementary contracts
|
60,493
|
|
|
58,699
|
|
||
|
Other contract liabilities
|
12,872
|
|
|
12,172
|
|
||
|
Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses
|
221,465
|
|
|
214,713
|
|
||
|
Unpaid claims and claim adjustment expenses
|
2,919
|
|
|
3,053
|
|
||
|
Total future policy benefits
|
$
|
224,384
|
|
|
$
|
217,766
|
|
|
|
2015
|
|
2014
|
||||
|
|
(in millions)
|
||||||
|
Individual annuities
|
$
|
37,384
|
|
|
$
|
37,718
|
|
|
Group annuities
|
27,141
|
|
|
27,200
|
|
||
|
Guaranteed investment contracts and guaranteed interest accounts
|
14,122
|
|
|
14,428
|
|
||
|
Funding agreements
|
3,997
|
|
|
4,691
|
|
||
|
Interest-sensitive life contracts
|
32,502
|
|
|
30,406
|
|
||
|
Dividend accumulation and other
|
21,638
|
|
|
21,707
|
|
||
|
Total policyholders’ account balances
|
$
|
136,784
|
|
|
$
|
136,150
|
|
|
11.
|
CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
|
In the Event
of Death
|
|
At Annuitization /
Accumulation(1)
|
|
In the Event
of Death
|
|
At Annuitization /
Accumulation(1)
|
||||||||
|
|
($ in millions)
|
||||||||||||||
|
Annuity Contracts
|
|
|
|
|
|
|
|
||||||||
|
Return of net deposits
|
|
|
|
|
|
|
|
||||||||
|
Account value
|
$
|
115,317
|
|
|
$
|
142
|
|
|
$
|
118,629
|
|
|
$
|
163
|
|
|
Net amount at risk
|
$
|
739
|
|
|
$
|
0
|
|
|
$
|
403
|
|
|
$
|
0
|
|
|
Average attained age of contractholders
|
65 years
|
|
|
64 years
|
|
|
64 years
|
|
|
63 years
|
|
||||
|
Minimum return or contract value
|
|
|
|
|
|
|
|
||||||||
|
Account value
|
$
|
34,494
|
|
|
$
|
131,005
|
|
|
$
|
37,322
|
|
|
$
|
134,938
|
|
|
Net amount at risk
|
$
|
4,212
|
|
|
$
|
5,459
|
|
|
$
|
2,856
|
|
|
$
|
3,135
|
|
|
Average attained age of contractholders
|
67 years
|
|
|
64 years
|
|
|
66 years
|
|
|
62 years
|
|
||||
|
Average period remaining until earliest expected annuitization
|
N/A
|
|
|
0.28 years
|
|
|
N/A
|
|
|
0.29 years
|
|
||||
|
(1)
|
Includes income and withdrawal benefits.
|
|
|
December 31,
|
||||||
|
|
2015
|
|
2014
|
||||
|
|
In the Event of Death
|
||||||
|
|
($ in millions)
|
||||||
|
Variable Life, Variable Universal Life and Universal Life Contracts
|
|
|
|
||||
|
No-lapse guarantees
|
|
|
|
||||
|
Separate account value
|
$
|
7,643
|
|
|
$
|
7,816
|
|
|
General account value
|
$
|
13,364
|
|
|
$
|
12,124
|
|
|
Net amount at risk
|
$
|
211,428
|
|
|
$
|
200,386
|
|
|
Average attained age of contractholders
|
56 years
|
|
|
55 years
|
|
||
|
|
December 31,
|
||||||
|
|
2015
|
|
2014
|
||||
|
|
(in millions)
|
||||||
|
Equity funds
|
$
|
88,992
|
|
|
$
|
94,473
|
|
|
Bond funds
|
46,642
|
|
|
45,159
|
|
||
|
Balanced funds
|
843
|
|
|
753
|
|
||
|
Money market funds
|
6,355
|
|
|
8,335
|
|
||
|
Total
|
$
|
142,832
|
|
|
$
|
148,720
|
|
|
|
GMDB
|
|
GMIB
|
|
GMAB/GMWB/GMIWB
|
||||||||||
|
|
Variable Life,
Variable Universal Life
and Universal Life
|
|
Annuity
|
|
Annuity
|
|
Annuity
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Balance at December 31, 2012
|
$
|
371
|
|
|
$
|
488
|
|
|
$
|
459
|
|
|
$
|
3,348
|
|
|
Incurred guarantee benefits(1)
|
97
|
|
|
35
|
|
|
10
|
|
|
(2,904
|
)
|
||||
|
Paid guarantee benefits and other
|
(4
|
)
|
|
(75
|
)
|
|
(23
|
)
|
|
0
|
|
||||
|
Other(2)(3)
|
1,331
|
|
|
13
|
|
|
(49
|
)
|
|
(3
|
)
|
||||
|
Balance at December 31, 2013
|
1,795
|
|
|
461
|
|
|
397
|
|
|
441
|
|
||||
|
Incurred guarantee benefits(1)
|
794
|
|
|
245
|
|
|
84
|
|
|
7,741
|
|
||||
|
Paid guarantee benefits and other
|
(18
|
)
|
|
(68
|
)
|
|
(15
|
)
|
|
0
|
|
||||
|
Other(2)
|
279
|
|
|
4
|
|
|
1
|
|
|
0
|
|
||||
|
Balance at December 31, 2014
|
2,850
|
|
|
642
|
|
|
467
|
|
|
8,182
|
|
||||
|
Incurred guarantee benefits(1)
|
517
|
|
|
167
|
|
|
1
|
|
|
252
|
|
||||
|
Paid guarantee benefits
|
(22
|
)
|
|
(85
|
)
|
|
(16
|
)
|
|
0
|
|
||||
|
Other(2)
|
(195
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|
(1
|
)
|
||||
|
Balance at December 31, 2015
|
$
|
3,150
|
|
|
$
|
714
|
|
|
$
|
440
|
|
|
$
|
8,433
|
|
|
(1)
|
Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives.
|
|
(2)
|
Other primarily represents impact of changes in unrealized investment gains and losses and foreign currency translation.
|
|
(3)
|
GMDB includes amounts acquired from The Hartford Life Business on January 2, 2013.
|
|
|
Sales Inducements
|
||
|
|
(in millions)
|
||
|
Balance at December 31, 2012
|
$
|
1,357
|
|
|
Capitalization
|
53
|
|
|
|
Amortization—Impact of assumption and experience unlocking and true-ups
|
27
|
|
|
|
Amortization—All other
|
340
|
|
|
|
Change in unrealized investment gains and losses
|
36
|
|
|
|
Balance at December 31, 2013
|
1,813
|
|
|
|
Capitalization
|
22
|
|
|
|
Amortization—Impact of assumption and experience unlocking and true-ups
|
81
|
|
|
|
Amortization—All other
|
(403
|
)
|
|
|
Change in unrealized investment gains and losses
|
1
|
|
|
|
Balance at December 31, 2014
|
1,514
|
|
|
|
Capitalization
|
8
|
|
|
|
Amortization—Impact of assumption and experience unlocking and true-ups
|
43
|
|
|
|
Amortization—All other
|
(392
|
)
|
|
|
Change in unrealized investment gains and losses
|
16
|
|
|
|
Balance at December 31, 2015
|
$
|
1,189
|
|
|
12.
|
CLOSED BLOCK
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Closed Block liabilities
|
|
|
|
|
||||
|
Future policy benefits
|
|
$
|
49,538
|
|
|
$
|
49,863
|
|
|
Policyholders’ dividends payable
|
|
945
|
|
|
931
|
|
||
|
Policyholders’ dividend obligation
|
|
4,509
|
|
|
6,612
|
|
||
|
Policyholders’ account balances
|
|
5,250
|
|
|
5,310
|
|
||
|
Other Closed Block liabilities
|
|
4,171
|
|
|
5,084
|
|
||
|
Total Closed Block liabilities
|
|
64,413
|
|
|
67,800
|
|
||
|
Closed Block assets
|
|
|
|
|
||||
|
Fixed maturities, available-for-sale, at fair value
|
|
37,584
|
|
|
40,629
|
|
||
|
Other trading account assets, at fair value
|
|
288
|
|
|
302
|
|
||
|
Equity securities, available-for-sale, at fair value
|
|
2,726
|
|
|
3,522
|
|
||
|
Commercial mortgage and other loans
|
|
9,770
|
|
|
9,472
|
|
||
|
Policy loans
|
|
4,790
|
|
|
4,914
|
|
||
|
Other long-term investments
|
|
2,921
|
|
|
2,765
|
|
||
|
Short-term investments
|
|
1,467
|
|
|
1,225
|
|
||
|
Total investments
|
|
59,546
|
|
|
62,829
|
|
||
|
Cash and cash equivalents
|
|
1,036
|
|
|
1,201
|
|
||
|
Accrued investment income
|
|
506
|
|
|
527
|
|
||
|
Other Closed Block assets
|
|
458
|
|
|
332
|
|
||
|
Total Closed Block assets
|
|
61,546
|
|
|
64,889
|
|
||
|
Excess of reported Closed Block liabilities over Closed Block assets
|
|
2,867
|
|
|
2,911
|
|
||
|
Portion of above representing accumulated other comprehensive income:
|
|
|
|
|
||||
|
Net unrealized investment gains (losses)
|
|
2,800
|
|
|
5,040
|
|
||
|
Allocated to policyholder dividend obligation
|
|
(2,815
|
)
|
|
(5,053
|
)
|
||
|
Future earnings to be recognized from Closed Block assets and Closed Block liabilities
|
|
$
|
2,852
|
|
|
$
|
2,898
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Balance, January 1
|
|
$
|
6,612
|
|
|
$
|
4,511
|
|
|
Impact from earnings allocable to policyholder dividend obligation
|
|
137
|
|
|
672
|
|
||
|
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation
|
|
(2,240
|
)
|
|
1,429
|
|
||
|
Balance, December 31
|
|
$
|
4,509
|
|
|
$
|
6,612
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
||||||
|
Premiums
|
|
$
|
2,668
|
|
|
$
|
2,704
|
|
|
$
|
2,728
|
|
|
Net investment income
|
|
2,709
|
|
|
2,809
|
|
|
2,796
|
|
|||
|
Realized investment gains (losses), net
|
|
834
|
|
|
1,164
|
|
|
230
|
|
|||
|
Other income (loss)
|
|
23
|
|
|
34
|
|
|
57
|
|
|||
|
Total Closed Block revenues
|
|
6,234
|
|
|
6,711
|
|
|
5,811
|
|
|||
|
Benefits and Expenses
|
|
|
|
|
|
|
||||||
|
Policyholders’ benefits
|
|
3,366
|
|
|
3,326
|
|
|
3,334
|
|
|||
|
Interest credited to policyholders’ account balances
|
|
135
|
|
|
136
|
|
|
136
|
|
|||
|
Dividends to policyholders
|
|
2,130
|
|
|
2,635
|
|
|
1,910
|
|
|||
|
General and administrative expenses
|
|
423
|
|
|
444
|
|
|
467
|
|
|||
|
Total Closed Block benefits and expenses
|
|
6,054
|
|
|
6,541
|
|
|
5,847
|
|
|||
|
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued operations
|
|
180
|
|
|
170
|
|
|
(36
|
)
|
|||
|
Income tax expense (benefit)
|
|
136
|
|
|
139
|
|
|
(57
|
)
|
|||
|
Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued operations
|
|
44
|
|
|
31
|
|
|
21
|
|
|||
|
Income (loss) from discontinued operations, net of taxes
|
|
0
|
|
|
1
|
|
|
0
|
|
|||
|
Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued operations
|
|
$
|
44
|
|
|
$
|
32
|
|
|
$
|
21
|
|
|
13.
|
REINSURANCE
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Direct premiums
|
|
$
|
27,996
|
|
|
$
|
29,666
|
|
|
$
|
27,444
|
|
|
Reinsurance assumed
|
|
2,147
|
|
|
1,134
|
|
|
272
|
|
|||
|
Reinsurance ceded
|
|
(1,622
|
)
|
|
(1,507
|
)
|
|
(1,479
|
)
|
|||
|
Premiums
|
|
$
|
28,521
|
|
|
$
|
29,293
|
|
|
$
|
26,237
|
|
|
|
|
|
|
|
|
|
||||||
|
Direct policy charges and fees
|
|
$
|
5,127
|
|
|
$
|
5,026
|
|
|
$
|
4,648
|
|
|
Reinsurance assumed
|
|
1,179
|
|
|
1,425
|
|
|
918
|
|
|||
|
Reinsurance ceded
|
|
(334
|
)
|
|
(272
|
)
|
|
(151
|
)
|
|||
|
Policy charges and fees
|
|
$
|
5,972
|
|
|
$
|
6,179
|
|
|
$
|
5,415
|
|
|
|
|
|
|
|
|
|
||||||
|
Direct policyholder benefits
|
|
$
|
29,242
|
|
|
$
|
31,012
|
|
|
$
|
27,458
|
|
|
Reinsurance assumed
|
|
3,107
|
|
|
2,732
|
|
|
809
|
|
|||
|
Reinsurance ceded
|
|
(1,722
|
)
|
|
(2,157
|
)
|
|
(1,534
|
)
|
|||
|
Policyholders’ benefits
|
|
$
|
30,627
|
|
|
$
|
31,587
|
|
|
$
|
26,733
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Individual and group annuities(1)
|
|
$
|
659
|
|
|
$
|
109
|
|
|
Life insurance(2)
|
|
2,885
|
|
|
2,842
|
|
||
|
Other reinsurance
|
|
160
|
|
|
159
|
|
||
|
Total reinsurance recoverable
|
|
$
|
3,704
|
|
|
$
|
3,110
|
|
|
(1)
|
Primarily represents reinsurance recoverables established under the reinsurance arrangements associated with the acquisition of the retirement business of CIGNA. The Company has recorded reinsurance recoverables related to the acquisition of the retirement business of CIGNA of
$650 million
and
$105 million
at December 31,
2015
and
2014
, respectively. Also included is $
7 million
of reinsurance recoverables as of December 31, 2015 established under the reinsurance agreement with Union Hamilton Reinsurance, Ltd. related to the ceding of certain embedded derivative liabilities associated with the Company’s guaranteed benefits.
|
|
(2)
|
Includes
$2,118 million
and
$2,130 million
of reinsurance recoverables established at December 31,
2015
and
2014
, respectively, under the reinsurance arrangements associated with the acquisition of the Hartford Life Business. The Company has also recorded reinsurance payables related to the Hartford Life Business acquisition of
$1,305 million
and
$1,300 million
at December 31,
2015
and
2014
, respectively.
|
|
14.
|
SHORT-TERM AND LONG-TERM DEBT
|
|
|
2015
|
|
2014
|
||||
|
|
($ in millions)
|
||||||
|
Commercial paper:
|
|
|
|
||||
|
Prudential Financial
|
$
|
80
|
|
|
$
|
97
|
|
|
Prudential Funding, LLC
|
384
|
|
|
386
|
|
||
|
Subtotal commercial paper
|
464
|
|
|
483
|
|
||
|
Current portion of long-term debt(1)
|
752
|
|
|
3,356
|
|
||
|
Total short-term debt(2)
|
$
|
1,216
|
|
|
$
|
3,839
|
|
|
Supplemental short-term debt information:
|
|
|
|
||||
|
Portion of commercial paper borrowings due overnight
|
$
|
331
|
|
|
$
|
199
|
|
|
Daily average commercial paper outstanding
|
$
|
1,127
|
|
|
$
|
1,409
|
|
|
Weighted average maturity of outstanding commercial paper, in days
|
10
|
|
|
22
|
|
||
|
Weighted average interest rate on outstanding short-term debt(3)
|
0.16
|
%
|
|
0.12
|
%
|
||
|
(1)
|
Includes collateralized borrowings from the FHLBNY of
$280 million
at December 31, 2014.
|
|
(2)
|
Includes Prudential Financial debt of
$831 million
and
$2,319 million
at December 31,
2015
and
2014
, respectively.
|
|
(3)
|
Excludes the current portion of long-term debt.
|
|
Borrower
|
Original
Term
|
|
Expiration
Date
|
|
Capacity
|
|
Amount Outstanding
|
||||
|
|
|
|
|
|
($ in millions)
|
||||||
|
Prudential Financial and Prudential Funding
|
5 years
|
|
Apr 2020
|
|
$
|
4,000
|
|
|
$
|
0
|
|
|
|
Maturity
Dates
|
|
Rate(1)
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
|||||||||
|
|
|
|
|
|
($ in millions)
|
||||||
|
Fixed-rate notes:
|
|
|
|
|
|
|
|
||||
|
Surplus notes
|
2019-2025
|
|
5.36%-8.30%
|
|
$
|
841
|
|
|
$
|
841
|
|
|
Surplus notes subject to set-off arrangements
|
2021-2033
|
|
3.52%-5.26%
|
|
3,850
|
|
|
3,588
|
|
||
|
Senior notes
|
2016-2045
|
|
2.30%-11.31%
|
|
10,267
|
|
|
10,842
|
|
||
|
Mortgage debt(2)
|
2019-2024
|
|
1.72%-3.74%
|
|
134
|
|
|
142
|
|
||
|
Floating-rate notes:
|
|
|
|
|
|
|
|
||||
|
Surplus notes
|
2052
|
|
1.32%-1.58%
|
|
500
|
|
|
500
|
|
||
|
Surplus notes subject to set-off arrangements
|
2024
|
|
1.65%-1.73%
|
|
1,050
|
|
|
385
|
|
||
|
U.S. dollar-denominated senior notes
|
2016-2020
|
|
0.74%-4.41%
|
|
1,609
|
|
|
2,209
|
|
||
|
Foreign currency denominated senior notes
|
(3)
|
|
1.24%-1.33%
|
|
51
|
|
|
53
|
|
||
|
Mortgage debt(4)
|
2017-2025
|
|
0.65%-3.11%
|
|
430
|
|
|
360
|
|
||
|
Junior subordinated notes
|
2042-2068
|
|
5.20%-8.88%
|
|
5,884
|
|
|
4,884
|
|
||
|
Subtotal
|
|
|
|
|
24,616
|
|
|
23,804
|
|
||
|
Less: assets under set-off arrangements(5)
|
|
|
|
|
4,889
|
|
|
3,973
|
|
||
|
Total long-term debt(6)
|
|
|
|
|
$
|
19,727
|
|
|
$
|
19,831
|
|
|
(1)
|
Ranges of interest rates are for the year ended December 31,
2015
.
|
|
(2)
|
Includes
$38 million
and $
71 million
of debt denominated in foreign currency at December 31,
2015
and 2014, respectively.
|
|
(3)
|
Perpetual debt that has no stated maturity.
|
|
(4)
|
Includes
$212 million
and $
142 million
of debt denominated in foreign currency at December 31,
2015
and 2014, respectively. As of December 31, 2014,
$31 million
was presented as fixed-rate mortgage debt.
|
|
(5)
|
Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, resulting from an arrangement where valid rights of set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements. These assets include available-for-sale securities that are valued at market. The fair market value adjustment at December 31, 2015 decreased the assets by
$11 million
.
|
|
(6)
|
Includes Prudential Financial debt of
$16,487 million
and
$16,061 million
at December 31,
2015
and
2014
, respectively.
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021 and
thereafter
|
|
Total
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Long-term debt
|
$
|
1,544
|
|
|
$
|
1,430
|
|
|
$
|
1,689
|
|
|
$
|
1,246
|
|
|
$
|
13,818
|
|
|
$
|
19,727
|
|
|
Issue Date
|
Principal
Amount
|
|
Initial
Interest
Rate
|
|
Investor
Type
|
|
Optional
Redemption
Date(1)
|
|
Interest Rate
Subsequent to Optional
Redemption Date
|
|
Scheduled
Maturity Date
|
|
Final
Maturity Date
|
|||
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
June 2008
|
$
|
600
|
|
|
8.88
|
%
|
|
Institutional
|
|
6/15/2018
|
|
LIBOR + 5.00%
|
|
6/15/2038
|
|
6/15/2068
|
|
August 2012
|
$
|
1,000
|
|
|
5.88
|
%
|
|
Institutional
|
|
9/15/2022
|
|
LIBOR + 4.18%
|
|
n/a
|
|
9/15/2042
|
|
November 2012
|
$
|
1,500
|
|
|
5.63
|
%
|
|
Institutional
|
|
6/15/2023
|
|
LIBOR + 3.92%
|
|
n/a
|
|
6/15/2043
|
|
December 2012
|
$
|
575
|
|
|
5.75
|
%
|
|
Retail
|
|
12/4/2017
|
|
5.75%
|
|
n/a
|
|
12/15/2052
|
|
March 2013
|
$
|
710
|
|
|
5.70
|
%
|
|
Retail
|
|
3/15/2018
|
|
5.70%
|
|
n/a
|
|
3/15/2053
|
|
March 2013
|
$
|
500
|
|
|
5.20
|
%
|
|
Institutional
|
|
3/15/2024
|
|
LIBOR + 3.04%
|
|
n/a
|
|
3/15/2044
|
|
May 2015
|
$
|
1,000
|
|
|
5.38
|
%
|
|
Institutional
|
|
5/15/2025
|
|
LIBOR + 3.03%
|
|
n/a
|
|
3/15/2045
|
|
(1)
|
Represents the initial date on which the notes can be redeemed at par solely at the option of the Company, subject in the case of the
8.88%
notes to compliance with a replacement capital covenant.
|
|
15.
|
EQUITY
|
|
|
|
Common Stock
|
|||||||
|
|
|
Issued
|
|
Held In
Treasury
|
|
Outstanding
|
|||
|
|
|
||||||||
|
|
|
|
|
|
|
|
|||
|
|
|
(in millions)
|
|||||||
|
Balance, December 31, 2012
|
|
660.1
|
|
|
197.1
|
|
|
463.0
|
|
|
Common Stock issued
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
Common Stock acquired
|
|
0.0
|
|
|
10.0
|
|
|
(10.0
|
)
|
|
Stock-based compensation programs(1)
|
|
0.0
|
|
|
(8.1
|
)
|
|
8.1
|
|
|
Balance, December 31, 2013
|
|
660.1
|
|
|
199.0
|
|
|
461.1
|
|
|
Common Stock issued
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
Common Stock acquired
|
|
0.0
|
|
|
11.6
|
|
|
(11.6
|
)
|
|
Stock-based compensation programs(1)
|
|
0.0
|
|
|
(5.3
|
)
|
|
5.3
|
|
|
Balance, December 31, 2014
|
|
660.1
|
|
|
205.3
|
|
|
454.8
|
|
|
Common Stock issued
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
Common Stock acquired
|
|
0.0
|
|
|
12.1
|
|
|
(12.1
|
)
|
|
Stock-based compensation programs(1)
|
|
0.0
|
|
|
(4.4
|
)
|
|
4.4
|
|
|
Balance, December 31, 2015
|
|
660.1
|
|
|
213.0
|
|
|
447.1
|
|
|
(1)
|
Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs.
|
|
|
Accumulated Other Comprehensive Income (Loss)
Attributable to Prudential Financial, Inc.
|
||||||||||||||
|
|
Foreign
Currency
Translation
Adjustment
|
|
Net Unrealized
Investment
Gains
(Losses)(1)
|
|
Pension and
Postretirement
Unrecognized Net
Periodic Benefit (Cost)
|
|
Total Accumulated Other Comprehensive Income (Loss)
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Balance, December 31, 2012
|
$
|
928
|
|
|
$
|
11,402
|
|
|
$
|
(2,116
|
)
|
|
$
|
10,214
|
|
|
Change in OCI before reclassifications
|
(1,465
|
)
|
|
(1,239
|
)
|
|
749
|
|
|
(1,955
|
)
|
||||
|
Amounts reclassified from AOCI
|
4
|
|
|
(289
|
)
|
|
125
|
|
|
(160
|
)
|
||||
|
Income tax benefit (expense)
|
420
|
|
|
470
|
|
|
(308
|
)
|
|
582
|
|
||||
|
Balance, December 31, 2013
|
(113
|
)
|
|
10,344
|
|
|
(1,550
|
)
|
|
8,681
|
|
||||
|
Change in OCI before reclassifications
|
(1,066
|
)
|
|
15,490
|
|
|
(1,134
|
)
|
|
13,290
|
|
||||
|
Amounts reclassified from AOCI
|
(3
|
)
|
|
(1,760
|
)
|
|
91
|
|
|
(1,672
|
)
|
||||
|
Income tax benefit (expense)
|
207
|
|
|
(4,823
|
)
|
|
367
|
|
|
(4,249
|
)
|
||||
|
Balance, December 31, 2014
|
(975
|
)
|
|
19,251
|
|
|
(2,226
|
)
|
|
16,050
|
|
||||
|
Change in OCI before reclassifications
|
(245
|
)
|
|
(3,161
|
)
|
|
(457
|
)
|
|
(3,863
|
)
|
||||
|
Amounts reclassified from AOCI
|
17
|
|
|
(2,325
|
)
|
|
193
|
|
|
(2,115
|
)
|
||||
|
Income tax benefit (expense)
|
116
|
|
|
2,008
|
|
|
89
|
|
|
2,213
|
|
||||
|
Balance, December 31, 2015
|
$
|
(1,087
|
)
|
|
$
|
15,773
|
|
|
$
|
(2,401
|
)
|
|
$
|
12,285
|
|
|
(1)
|
Includes cash flow hedges of
$1,165 million
,
$206 million
and
$(446) million
as of December 31,
2015
,
2014
, and
2013
, respectively.
|
|
|
Years Ended December 31,
|
|
Affected line item in Consolidated
Statements of Operations
|
||||||||||
|
|
2015
|
|
2014
|
|
2013
|
|
|||||||
|
|
(in millions)
|
|
|
||||||||||
|
Amounts reclassified from AOCI(1)(2):
|
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment:
|
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
$
|
(8
|
)
|
|
$
|
3
|
|
|
$
|
0
|
|
|
Realized investment gains (losses), net
|
|
Foreign currency translation adjustment
|
(9
|
)
|
|
0
|
|
|
(4
|
)
|
|
Other income
|
|||
|
Total foreign currency translation adjustment
|
(17
|
)
|
|
3
|
|
|
(4
|
)
|
|
|
|||
|
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
||||||
|
Cash flow hedges—Interest Rate
|
(7
|
)
|
|
(60
|
)
|
|
(24
|
)
|
|
(3)
|
|||
|
Cash flow hedges—Currency/Interest rate
|
247
|
|
|
114
|
|
|
(104
|
)
|
|
(3)
|
|||
|
Net unrealized investment gains (losses) on available-for-sale securities
|
2,085
|
|
|
1,706
|
|
|
351
|
|
|
|
|||
|
Net unrealized investment gains (losses)—all other
|
0
|
|
|
0
|
|
|
66
|
|
|
|
|||
|
Total net unrealized investment gains (losses)
|
2,325
|
|
|
1,760
|
|
|
289
|
|
|
(4)
|
|||
|
Amortization of defined benefit items:
|
|
|
|
|
|
|
|
||||||
|
Prior service cost
|
13
|
|
|
20
|
|
|
22
|
|
|
(5)
|
|||
|
Actuarial gain (loss)
|
(206
|
)
|
|
(111
|
)
|
|
(147
|
)
|
|
(5)
|
|||
|
Total amortization of defined benefit items
|
(193
|
)
|
|
(91
|
)
|
|
(125
|
)
|
|
|
|||
|
Total reclassifications for the period
|
$
|
2,115
|
|
|
$
|
1,672
|
|
|
$
|
160
|
|
|
|
|
(1)
|
All amounts are shown before tax.
|
|
(2)
|
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
|
|
(3)
|
See Note 21 for additional information on cash flow hedges.
|
|
(4)
|
See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends.
|
|
(5)
|
See Note 18 for information on employee benefit plans.
|
|
|
Net Unrealized
Gains (Losses)
on Investments
|
|
DAC, DSI,
and VOBA
|
|
Future Policy
Benefits and
Policyholders’
Account
Balances
|
|
Policyholders’
Dividends
|
|
Deferred
Income
Tax
(Liability)
Benefit
|
|
Accumulated Other Comprehensive Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance, December 31, 2012
|
$
|
(194
|
)
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
139
|
|
|
$
|
18
|
|
|
$
|
(31
|
)
|
|
Net investment gains (losses) on investments arising during the period
|
242
|
|
|
|
|
|
|
|
|
(85
|
)
|
|
157
|
|
|||||||||
|
Reclassification adjustment for (gains) losses included in net income
|
70
|
|
|
|
|
|
|
|
|
(25
|
)
|
|
45
|
|
|||||||||
|
Reclassification adjustment for OTTI losses excluded from net income(1)
|
(8
|
)
|
|
|
|
|
|
|
|
3
|
|
|
(5
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA
|
|
|
(8
|
)
|
|
|
|
|
|
3
|
|
|
(5
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
|
|
|
|
|
1
|
|
|
|
|
|
|
1
|
|
||||||||||
|
Impact of net unrealized investment (gains) losses on policyholders’ dividends
|
|
|
|
|
|
|
(75
|
)
|
|
26
|
|
|
(49
|
)
|
|||||||||
|
Balance, December 31, 2013
|
110
|
|
|
(5
|
)
|
|
4
|
|
|
64
|
|
|
(60
|
)
|
|
113
|
|
||||||
|
Net investment gains (losses) on investments arising during the period
|
196
|
|
|
|
|
|
|
|
|
(69
|
)
|
|
127
|
|
|||||||||
|
Reclassification adjustment for (gains) losses included in net income
|
47
|
|
|
|
|
|
|
|
|
(16
|
)
|
|
31
|
|
|||||||||
|
Reclassification adjustment for OTTI losses excluded from net income(1)
|
(4
|
)
|
|
|
|
|
|
|
|
1
|
|
|
(3
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
(1
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
(1
|
)
|
||||||||||
|
Impact of net unrealized investment (gains) losses on policyholders’ dividends
|
|
|
|
|
|
|
(96
|
)
|
|
34
|
|
|
(62
|
)
|
|||||||||
|
Balance, December 31, 2014
|
349
|
|
|
(6
|
)
|
|
3
|
|
|
(32
|
)
|
|
(110
|
)
|
|
204
|
|
||||||
|
Net investment gains (losses) on investments arising during the period
|
(3
|
)
|
|
|
|
|
|
|
|
1
|
|
|
(2
|
)
|
|||||||||
|
Reclassification adjustment for (gains) losses included in net income
|
(97
|
)
|
|
|
|
|
|
|
|
35
|
|
|
(62
|
)
|
|||||||||
|
Reclassification adjustment for OTTI losses excluded from net income(1)
|
(15
|
)
|
|
|
|
|
|
|
|
5
|
|
|
(10
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA
|
|
|
12
|
|
|
|
|
|
|
(4
|
)
|
|
8
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
|
|
|
|
|
11
|
|
|
|
|
(4
|
)
|
|
7
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on policyholders’ dividends
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
||||||||||
|
Balance, December 31, 2015
|
$
|
234
|
|
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
(31
|
)
|
|
$
|
(77
|
)
|
|
$
|
146
|
|
|
(1)
|
Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
|
|
|
Net Unrealized
Gains (Losses) on Investments(1) |
|
DAC, DSI,
and VOBA |
|
Future Policy
Benefits and Policyholders’ Account Balances |
|
Policyholders’
Dividends |
|
Deferred
Income Tax (Liability) Benefit |
|
Accumulated Other Comprehensive Income (Loss)
Related To Net Unrealized Investment Gains (Losses) |
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance, December 31, 2012
|
$
|
25,151
|
|
|
$
|
(1,228
|
)
|
|
$
|
(1,144
|
)
|
|
$
|
(5,627
|
)
|
|
$
|
(5,719
|
)
|
|
$
|
11,433
|
|
|
Net investment gains (losses) on investments arising during the period
|
(4,306
|
)
|
|
|
|
|
|
|
|
1,443
|
|
|
(2,863
|
)
|
|||||||||
|
Reclassification adjustment for (gains) losses included in net income
|
(359
|
)
|
|
|
|
|
|
|
|
126
|
|
|
(233
|
)
|
|||||||||
|
Reclassification adjustment for OTTI losses excluded from net income(2)
|
8
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
5
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA
|
|
|
509
|
|
|
|
|
|
|
(178
|
)
|
|
331
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
|
|
|
|
|
465
|
|
|
|
|
(164
|
)
|
|
301
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on policyholders’ dividends
|
|
|
|
|
|
|
1,933
|
|
|
(676
|
)
|
|
1,257
|
|
|||||||||
|
Balance, December 31, 2013
|
20,494
|
|
|
(719
|
)
|
|
(679
|
)
|
|
(3,694
|
)
|
|
(5,171
|
)
|
|
10,231
|
|
||||||
|
Net investment gains (losses) on investments arising during the period
|
18,073
|
|
|
|
|
|
|
|
|
(6,337
|
)
|
|
11,736
|
|
|||||||||
|
Reclassification adjustment for (gains) losses included in net income
|
(1,807
|
)
|
|
|
|
|
|
|
|
632
|
|
|
(1,175
|
)
|
|||||||||
|
Reclassification adjustment for OTTI losses excluded from net income(2)
|
4
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
3
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA
|
|
|
(736
|
)
|
|
|
|
|
|
254
|
|
|
(482
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
|
|
|
|
|
(603
|
)
|
|
|
|
211
|
|
|
(392
|
)
|
|||||||||
|
Impact of net unrealized investment (gains) losses on policyholders’ dividends
|
|
|
|
|
|
|
(1,342
|
)
|
|
468
|
|
|
(874
|
)
|
|||||||||
|
Balance, December 31, 2014
|
36,764
|
|
|
(1,455
|
)
|
|
(1,282
|
)
|
|
(5,036
|
)
|
|
(9,944
|
)
|
|
19,047
|
|
||||||
|
Net investment gains (losses) on investments arising during the period
|
(6,311
|
)
|
|
|
|
|
|
|
|
2,268
|
|
|
(4,043
|
)
|
|||||||||
|
Reclassification adjustment for (gains) losses included in net income
|
(2,228
|
)
|
|
|
|
|
|
|
|
801
|
|
|
(1,427
|
)
|
|||||||||
|
Reclassification adjustment for OTTI losses excluded from net income(2)
|
15
|
|
|
|
|
|
|
|
|
(5
|
)
|
|
10
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA
|
|
|
695
|
|
|
|
|
|
|
(240
|
)
|
|
455
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
|
|
|
|
|
200
|
|
|
|
|
(67
|
)
|
|
133
|
|
|||||||||
|
Impact of net unrealized investment (gains) losses on policyholders’ dividends
|
|
|
|
|
|
|
2,234
|
|
|
(782
|
)
|
|
1,452
|
|
|||||||||
|
Balance, December 31, 2015
|
$
|
28,240
|
|
|
$
|
(760
|
)
|
|
$
|
(1,082
|
)
|
|
$
|
(2,802
|
)
|
|
$
|
(7,969
|
)
|
|
$
|
15,627
|
|
|
(1)
|
Includes cash flow hedges. See Note 21 for information on cash flow hedges.
|
|
(2)
|
Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
|
|
16.
|
EARNINGS PER SHARE
|
|
|
|
2015
|
|||||||||
|
|
|
Income
|
|
Weighted
Average
Shares
|
|
Per Share
Amount
|
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|
(in millions, except per share amounts)
|
|||||||||
|
Basic earnings per share
|
|
|
|
|
|
|
|||||
|
Income (loss) from continuing operations
|
|
$
|
5,712
|
|
|
|
|
|
|||
|
Less: Income (loss) attributable to noncontrolling interests
|
|
70
|
|
|
|
|
|
||||
|
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards
|
|
55
|
|
|
|
|
|
||||
|
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock
|
|
$
|
5,587
|
|
|
451.7
|
|
|
$
|
12.37
|
|
|
Effect of dilutive securities and compensation programs
|
|
|
|
|
|
|
|||||
|
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic
|
|
$
|
55
|
|
|
|
|
|
|||
|
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted
|
|
54
|
|
|
|
|
|
||||
|
Stock options
|
|
|
|
2.3
|
|
|
|
||||
|
Deferred and long-term compensation programs
|
|
|
|
0.9
|
|
|
|
||||
|
Exchangeable Surplus Notes
|
|
17
|
|
|
5.5
|
|
|
|
|||
|
Diluted earnings per share
|
|
|
|
|
|
|
|||||
|
Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock
|
|
$
|
5,605
|
|
|
460.4
|
|
|
$
|
12.17
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||
|
|
|
Income
|
|
Weighted
Average
Shares
|
|
Per Share
Amount
|
|
Income
|
|
Weighted
Average
Shares
|
|
Per Share
Amount
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions, except per share amounts)
|
||||||||||||||||||||
|
Basic earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income (loss) from continuing operations attributable to the Financial Services Businesses
|
|
$
|
1,579
|
|
|
|
|
|
|
$
|
(613
|
)
|
|
|
|
|
||||||
|
Direct equity adjustment
|
|
(27
|
)
|
|
|
|
|
|
2
|
|
|
|
|
|
||||||||
|
Less: Income (loss) attributable to noncontrolling interests
|
|
57
|
|
|
|
|
|
|
107
|
|
|
|
|
|
||||||||
|
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards
|
|
14
|
|
|
|
|
|
|
8
|
|
|
|
|
|
||||||||
|
Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment
|
|
$
|
1,481
|
|
|
458.5
|
|
|
$
|
3.23
|
|
|
$
|
(726
|
)
|
|
463.1
|
|
|
$
|
(1.57
|
)
|
|
Effect of dilutive securities and compensation programs(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic
|
|
$
|
14
|
|
|
|
|
|
|
$
|
8
|
|
|
|
|
|
||||||
|
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted
|
|
14
|
|
|
|
|
|
|
8
|
|
|
|
|
|
||||||||
|
Stock options
|
|
|
|
3.0
|
|
|
|
|
|
|
0.0
|
|
|
|
||||||||
|
Deferred and long-term compensation programs
|
|
|
|
0.8
|
|
|
|
|
|
|
0.0
|
|
|
|
||||||||
|
Exchangeable Surplus Notes
|
|
17
|
|
|
5.4
|
|
|
|
|
0
|
|
|
0.0
|
|
|
|
||||||
|
Diluted earnings per share(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment
|
|
$
|
1,498
|
|
|
467.7
|
|
|
$
|
3.20
|
|
|
$
|
(726
|
)
|
|
463.1
|
|
|
$
|
(1.57
|
)
|
|
(1)
|
For the year ended December 31,
2013
, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a loss from continuing operations is reported. As a result of the loss from continuing operations available to holders of Common Stock after direct equity adjustment for the year ended December 31,
2013
, all potential stock options and compensation programs were considered antidilutive.
|
|
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
|
|
|
Shares
|
|
Exercise
Price Per
Share
|
|
Shares
|
|
Exercise
Price Per
Share
|
|
Shares
|
|
Exercise
Price Per
Share
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
(in millions, except per share amounts, based on
weighted average)
|
|||||||||||||||||||
|
Antidilutive stock options based on application of the treasury stock method
|
|
2.4
|
|
|
$
|
87.97
|
|
|
1.9
|
|
|
$
|
90.30
|
|
|
6.6
|
|
|
$
|
73.51
|
|
|
Antidilutive stock options due to loss from continuing operations available to holders of Common Stock after direct equity adjustment
|
|
0.0
|
|
|
|
|
0.0
|
|
|
|
|
12.2
|
|
|
|
||||||
|
Antidilutive shares due to loss from continuing operations available to holders of Common Stock after direct equity adjustment
|
|
0.0
|
|
|
|
|
0.0
|
|
|
|
|
5.2
|
|
|
|
||||||
|
Total antidilutive stock options and shares
|
|
2.4
|
|
|
|
|
1.9
|
|
|
|
|
24.0
|
|
|
|
||||||
|
17.
|
SHARE-BASED PAYMENTS
|
|
|
|
2015
|
|
2014
|
|
2013
|
|||
|
Expected volatility
|
|
34.67
|
%
|
|
35.52
|
%
|
|
36.44
|
%
|
|
Expected dividend yield
|
|
3.00
|
%
|
|
2.70
|
%
|
|
3.00
|
%
|
|
Expected term
|
|
5.57 years
|
|
|
5.63 years
|
|
|
5.52 years
|
|
|
Risk-free interest rate
|
|
1.61
|
%
|
|
1.74
|
%
|
|
1.01
|
%
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
|
|
|
Total
Compensation Cost
Recognized
|
|
Income Tax
Benefit
|
|
Total
Compensation Cost
Recognized
|
|
Income Tax
Benefit
|
|
Total
Compensation Cost
Recognized
|
|
Income Tax
Benefit
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Employee stock options
|
|
$
|
21
|
|
|
$
|
8
|
|
|
$
|
25
|
|
|
$
|
9
|
|
|
$
|
43
|
|
|
$
|
15
|
|
|
Employee restricted stock units
|
|
111
|
|
|
42
|
|
|
95
|
|
|
34
|
|
|
88
|
|
|
32
|
|
||||||
|
Employee performance shares and performance units
|
|
32
|
|
|
12
|
|
|
46
|
|
|
17
|
|
|
86
|
|
|
31
|
|
||||||
|
Total
|
|
$
|
164
|
|
|
$
|
62
|
|
|
$
|
166
|
|
|
$
|
60
|
|
|
$
|
217
|
|
|
$
|
78
|
|
|
|
|
Employee Stock Options
|
|||||
|
|
|
Shares
|
|
Weighted Average
Exercise Price
|
|||
|
Outstanding at December 31, 2014
|
|
12,231,497
|
|
|
$
|
64.88
|
|
|
Granted
|
|
934,939
|
|
|
78.10
|
|
|
|
Exercised
|
|
(2,121,926
|
)
|
|
62.95
|
|
|
|
Forfeited
|
|
(22,074
|
)
|
|
68.94
|
|
|
|
Expired
|
|
(96,290
|
)
|
|
87.33
|
|
|
|
Outstanding at December 31, 2015
|
|
10,926,146
|
|
|
$
|
66.18
|
|
|
Vested and expected to vest at December 31, 2015
|
|
10,880,347
|
|
|
$
|
66.13
|
|
|
Exercisable at December 31, 2015
|
|
8,547,934
|
|
|
$
|
64.96
|
|
|
|
|
December 31, 2015
|
||||
|
|
|
Employee Stock Options
|
||||
|
|
|
Weighted Average
Remaining
Contractual Term
|
|
Aggregate
Intrinsic Value
|
||
|
|
|
(in years)
|
|
(in millions)
|
||
|
Outstanding
|
|
4.72
|
|
$
|
183
|
|
|
Vested and expected to vest
|
|
4.70
|
|
$
|
183
|
|
|
Exercisable
|
|
3.91
|
|
$
|
156
|
|
|
|
|
Restricted
Stock
Units
|
|
Weighted
Average Grant
Date Fair Value
|
|
Performance
Share and
Performance
Unit Awards(1)
|
|
Weighted
Average Grant
Date Fair Value
|
||||||
|
Restricted at December 31, 2014(2)
|
|
4,202,891
|
|
|
$
|
66.31
|
|
|
1,174,801
|
|
|
$
|
90.46
|
|
|
Granted(2)
|
|
1,749,959
|
|
|
78.40
|
|
|
577,497
|
|
|
81.41
|
|
||
|
Forfeited
|
|
(99,701
|
)
|
|
74.70
|
|
|
(4,434
|
)
|
|
81.01
|
|
||
|
Performance adjustment(3)
|
|
|
|
|
|
171,070
|
|
|
78.21
|
|
||||
|
Released
|
|
(1,498,863
|
)
|
|
58.98
|
|
|
(528,437
|
)
|
|
78.21
|
|
||
|
Restricted at December 31, 2015(2)
|
|
4,354,286
|
|
|
$
|
73.50
|
|
|
1,390,497
|
|
|
$
|
81.41
|
|
|
(1)
|
Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between
0%
and
150%
of the target number of units granted for performance periods beginning prior to 2014 and between
0%
and
125%
thereafter, based upon a measure of the reported performance for the Company relative to stated goals.
|
|
(2)
|
For performance share and performance unit awards, the grant date is the same as the date the grant vests. The features of the grant are such that a mutual understanding of the key terms and conditions of the award between the employee and employer have not been reached until the grant is vested. Consequently, the weighted average grant date fair value as of December 31,
2015
and December 31,
2014
is the closing stock price of Prudential Financial’s common stock on those dates.
|
|
(3)
|
Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company.
|
|
18.
|
EMPLOYEE BENEFIT PLANS
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Change in benefit obligation
|
|
|
|
|
|
|
|
|
||||||||
|
Benefit obligation at the beginning of period
|
|
$
|
(12,545
|
)
|
|
$
|
(10,886
|
)
|
|
$
|
(2,233
|
)
|
|
$
|
(2,102
|
)
|
|
Service cost
|
|
(244
|
)
|
|
(234
|
)
|
|
(20
|
)
|
|
(17
|
)
|
||||
|
Interest cost
|
|
(469
|
)
|
|
(481
|
)
|
|
(86
|
)
|
|
(96
|
)
|
||||
|
Plan participants’ contributions
|
|
0
|
|
|
0
|
|
|
(29
|
)
|
|
(29
|
)
|
||||
|
Medicare Part D subsidy receipts
|
|
0
|
|
|
0
|
|
|
(12
|
)
|
|
(8
|
)
|
||||
|
Amendments
|
|
0
|
|
|
1
|
|
|
(2
|
)
|
|
0
|
|
||||
|
Actuarial gains (losses), net
|
|
335
|
|
|
(1,804
|
)
|
|
43
|
|
|
(169
|
)
|
||||
|
Settlements
|
|
22
|
|
|
42
|
|
|
0
|
|
|
0
|
|
||||
|
Special termination benefits
|
|
(4
|
)
|
|
(4
|
)
|
|
0
|
|
|
0
|
|
||||
|
Benefits paid
|
|
632
|
|
|
620
|
|
|
176
|
|
|
184
|
|
||||
|
Foreign currency changes and other
|
|
52
|
|
|
201
|
|
|
4
|
|
|
4
|
|
||||
|
Benefit obligation at end of period
|
|
$
|
(12,221
|
)
|
|
$
|
(12,545
|
)
|
|
$
|
(2,159
|
)
|
|
$
|
(2,233
|
)
|
|
Change in plan assets
|
|
|
|
|
|
|
|
|
||||||||
|
Fair value of plan assets at beginning of period
|
|
$
|
13,028
|
|
|
$
|
12,069
|
|
|
$
|
1,717
|
|
|
$
|
1,745
|
|
|
Actual return on plan assets
|
|
35
|
|
|
1,515
|
|
|
9
|
|
|
120
|
|
||||
|
Employer contributions
|
|
162
|
|
|
165
|
|
|
5
|
|
|
7
|
|
||||
|
Plan participants’ contributions
|
|
0
|
|
|
0
|
|
|
29
|
|
|
29
|
|
||||
|
Disbursement for settlements
|
|
(22
|
)
|
|
(42
|
)
|
|
0
|
|
|
0
|
|
||||
|
Benefits paid
|
|
(632
|
)
|
|
(620
|
)
|
|
(176
|
)
|
|
(184
|
)
|
||||
|
Foreign currency changes and other
|
|
(30
|
)
|
|
(59
|
)
|
|
0
|
|
|
0
|
|
||||
|
Fair value of plan assets at end of period
|
|
$
|
12,541
|
|
|
$
|
13,028
|
|
|
$
|
1,584
|
|
|
$
|
1,717
|
|
|
Funded status at end of period
|
|
$
|
320
|
|
|
$
|
483
|
|
|
$
|
(575
|
)
|
|
$
|
(516
|
)
|
|
Amounts recognized in the Statements of Financial Position
|
|
|
|
|
|
|
|
|
||||||||
|
Prepaid benefit cost
|
|
$
|
2,687
|
|
|
$
|
2,828
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Accrued benefit liability
|
|
(2,367
|
)
|
|
(2,345
|
)
|
|
(575
|
)
|
|
(516
|
)
|
||||
|
Net amount recognized
|
|
$
|
320
|
|
|
$
|
483
|
|
|
$
|
(575
|
)
|
|
$
|
(516
|
)
|
|
Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost:
|
|
|
|
|
|
|
|
|
||||||||
|
Transition obligation
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Prior service cost
|
|
(33
|
)
|
|
(42
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||
|
Net actuarial loss
|
|
3,173
|
|
|
2,946
|
|
|
621
|
|
|
600
|
|
||||
|
Net amount not recognized
|
|
$
|
3,140
|
|
|
$
|
2,904
|
|
|
$
|
620
|
|
|
$
|
592
|
|
|
Accumulated benefit obligation
|
|
$
|
(11,607
|
)
|
|
$
|
(11,964
|
)
|
|
$
|
(2,159
|
)
|
|
$
|
(2,233
|
)
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Projected benefit obligation
|
|
$
|
2,403
|
|
|
$
|
2,379
|
|
|
Fair value of plan assets
|
|
$
|
36
|
|
|
$
|
34
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Accumulated benefit obligation
|
|
$
|
2,154
|
|
|
$
|
2,164
|
|
|
Fair value of plan assets
|
|
$
|
5
|
|
|
$
|
33
|
|
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Service cost
|
|
$
|
244
|
|
|
$
|
234
|
|
|
$
|
252
|
|
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
17
|
|
|
Interest cost
|
|
469
|
|
|
481
|
|
|
437
|
|
|
86
|
|
|
96
|
|
|
89
|
|
||||||
|
Expected return on plan assets
|
|
(775
|
)
|
|
(712
|
)
|
|
(769
|
)
|
|
(115
|
)
|
|
(116
|
)
|
|
(87
|
)
|
||||||
|
Amortization of transition obligation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Amortization of prior service cost
|
|
(8
|
)
|
|
(10
|
)
|
|
(10
|
)
|
|
(5
|
)
|
|
(10
|
)
|
|
(12
|
)
|
||||||
|
Amortization of actuarial (gain) loss, net
|
|
168
|
|
|
86
|
|
|
91
|
|
|
38
|
|
|
25
|
|
|
56
|
|
||||||
|
Settlements
|
|
5
|
|
|
10
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Special termination benefits(1)
|
|
4
|
|
|
4
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Net periodic (benefit) cost
|
|
$
|
107
|
|
|
$
|
93
|
|
|
$
|
3
|
|
|
$
|
24
|
|
|
$
|
12
|
|
|
$
|
63
|
|
|
(1)
|
Certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination.
|
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||||||||||
|
|
|
Transition
Obligation
|
|
Prior
Service
Cost
|
|
Net
Actuarial
(Gain) Loss
|
|
Transition
Obligation
|
|
Prior
Service
Cost
|
|
Net
Actuarial
(Gain) Loss
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance, December 31, 2012
|
|
$
|
0
|
|
|
$
|
(81
|
)
|
|
$
|
2,548
|
|
|
$
|
0
|
|
|
$
|
(30
|
)
|
|
$
|
893
|
|
|
Amortization for the period
|
|
0
|
|
|
10
|
|
|
(91
|
)
|
|
0
|
|
|
12
|
|
|
(56
|
)
|
||||||
|
Deferrals for the period
|
|
0
|
|
|
2
|
|
|
(341
|
)
|
|
0
|
|
|
0
|
|
|
(377
|
)
|
||||||
|
Impact of foreign currency changes and other
|
|
0
|
|
|
13
|
|
|
(51
|
)
|
|
0
|
|
|
(1
|
)
|
|
3
|
|
||||||
|
Balance, December 31, 2013
|
|
0
|
|
|
(56
|
)
|
|
2,065
|
|
|
0
|
|
|
(19
|
)
|
|
463
|
|
||||||
|
Amortization for the period
|
|
0
|
|
|
10
|
|
|
(86
|
)
|
|
0
|
|
|
10
|
|
|
(25
|
)
|
||||||
|
Deferrals for the period
|
|
0
|
|
|
(1
|
)
|
|
1,001
|
|
|
0
|
|
|
0
|
|
|
165
|
|
||||||
|
Impact of foreign currency changes and other
|
|
0
|
|
|
5
|
|
|
(34
|
)
|
|
0
|
|
|
1
|
|
|
(3
|
)
|
||||||
|
Balance, December 31, 2014
|
|
0
|
|
|
(42
|
)
|
|
2,946
|
|
|
0
|
|
|
(8
|
)
|
|
600
|
|
||||||
|
Amortization for the period
|
|
0
|
|
|
8
|
|
|
(168
|
)
|
|
0
|
|
|
5
|
|
|
(38
|
)
|
||||||
|
Deferrals for the period
|
|
0
|
|
|
0
|
|
|
405
|
|
|
0
|
|
|
2
|
|
|
63
|
|
||||||
|
Impact of foreign currency changes and other
|
|
0
|
|
|
1
|
|
|
(10
|
)
|
|
0
|
|
|
0
|
|
|
(4
|
)
|
||||||
|
Balance, December 31, 2015
|
|
$
|
0
|
|
|
$
|
(33
|
)
|
|
$
|
3,173
|
|
|
$
|
0
|
|
|
$
|
(1
|
)
|
|
$
|
621
|
|
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Amortization of prior service cost
|
|
$
|
(6
|
)
|
|
$
|
(2
|
)
|
|
Amortization of actuarial (gain) loss, net
|
|
180
|
|
|
41
|
|
||
|
Total
|
|
$
|
174
|
|
|
$
|
39
|
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
Weighted average assumptions
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Discount rate (beginning of period)
|
|
4.10
|
%
|
|
4.95
|
%
|
|
4.05
|
%
|
|
3.95
|
%
|
|
4.75
|
%
|
|
3.85
|
%
|
|
Discount rate (end of period)
|
|
4.50
|
%
|
|
4.10
|
%
|
|
4.95
|
%
|
|
4.35
|
%
|
|
3.95
|
%
|
|
4.75
|
%
|
|
Rate of increase in compensation levels (beginning of period)
|
|
4.50
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Rate of increase in compensation levels (end of period)
|
|
4.50
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Expected return on plan assets (beginning of period)
|
|
6.25
|
%
|
|
6.25
|
%
|
|
6.25
|
%
|
|
7.00
|
%
|
|
7.00
|
%
|
|
7.00
|
%
|
|
Health care cost trend rates (beginning of period)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
5.00-6.66%
|
|
|
5.00-7.08%
|
|
|
5.00-7.50%
|
|
|
Health care cost trend rates (end of period)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
5.00-7.00%
|
|
|
5.00-6.66%
|
|
|
5.00-7.08%
|
|
|
For 2015, 2014 and 2013, the ultimate health care cost trend rate after gradual decrease until: 2019, 2019, 2019, (beginning of period)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
5.00
|
%
|
|
5.00
|
%
|
|
5.00
|
%
|
|
For 2015, 2014 and 2013, the ultimate health care cost trend rate after gradual decrease until: 2021, 2019, 2019 (end of period)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
5.00
|
%
|
|
5.00
|
%
|
|
5.00
|
%
|
|
|
|
Other Postretirement
Benefits
|
||
|
|
|
(in millions)
|
||
|
One percentage point increase
|
|
|
||
|
Increase in total service and interest costs
|
|
$
|
7
|
|
|
Increase in postretirement benefit obligation
|
|
153
|
|
|
|
|
|
|
||
|
One percentage point decrease
|
|
|
||
|
Decrease in total service and interest costs
|
|
$
|
5
|
|
|
Decrease in postretirement benefit obligation
|
|
120
|
|
|
|
|
|
Pension
|
|
Postretirement
|
||||||||
|
|
|
Minimum
|
|
Maximum
|
|
Minimum
|
|
Maximum
|
||||
|
Asset Category
|
|
|
|
|
|
|
|
|
||||
|
U.S. Equities
|
|
2
|
%
|
|
15
|
%
|
|
25
|
%
|
|
58
|
%
|
|
International Equities
|
|
2
|
%
|
|
16
|
%
|
|
2
|
%
|
|
22
|
%
|
|
Fixed Maturities
|
|
50
|
%
|
|
69
|
%
|
|
3
|
%
|
|
52
|
%
|
|
Short-term Investments
|
|
0
|
%
|
|
15
|
%
|
|
0
|
%
|
|
44
|
%
|
|
Real Estate
|
|
2
|
%
|
|
15
|
%
|
|
0
|
%
|
|
0
|
%
|
|
Other
|
|
0
|
%
|
|
16
|
%
|
|
0
|
%
|
|
0
|
%
|
|
|
|
As of December 31, 2015
|
||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
U.S. Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(1)
|
|
$
|
0
|
|
|
$
|
636
|
|
|
$
|
0
|
|
|
$
|
636
|
|
|
Common/collective trusts(1)
|
|
0
|
|
|
85
|
|
|
0
|
|
|
85
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
721
|
|
|||||||
|
International Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(2)
|
|
0
|
|
|
321
|
|
|
0
|
|
|
321
|
|
||||
|
Common/collective trusts(3)
|
|
0
|
|
|
229
|
|
|
0
|
|
|
229
|
|
||||
|
United Kingdom insurance pooled funds(4)
|
|
0
|
|
|
50
|
|
|
0
|
|
|
50
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
600
|
|
|||||||
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(5)
|
|
0
|
|
|
1,183
|
|
|
35
|
|
|
1,218
|
|
||||
|
Common/collective trusts(6)
|
|
0
|
|
|
347
|
|
|
0
|
|
|
347
|
|
||||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
||||||||
|
Mortgage-backed
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|
||||
|
Other U.S. government securities
|
|
0
|
|
|
661
|
|
|
0
|
|
|
661
|
|
||||
|
U.S. government securities (state & other)
|
|
0
|
|
|
582
|
|
|
0
|
|
|
582
|
|
||||
|
Non-U.S. government securities
|
|
0
|
|
|
14
|
|
|
0
|
|
|
14
|
|
||||
|
United Kingdom insurance pooled funds(7)
|
|
0
|
|
|
293
|
|
|
0
|
|
|
293
|
|
||||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate bonds(8)
|
|
0
|
|
|
4,417
|
|
|
0
|
|
|
4,417
|
|
||||
|
Asset-backed
|
|
0
|
|
|
8
|
|
|
0
|
|
|
8
|
|
||||
|
Collateralized Mortgage Obligations(9)
|
|
0
|
|
|
109
|
|
|
0
|
|
|
109
|
|
||||
|
Interest rate swaps (Notional amount: $2,073)
|
|
0
|
|
|
(5
|
)
|
|
0
|
|
|
(5
|
)
|
||||
|
Guaranteed investment contract
|
|
0
|
|
|
31
|
|
|
0
|
|
|
31
|
|
||||
|
Other(10)
|
|
685
|
|
|
2
|
|
|
93
|
|
|
780
|
|
||||
|
Unrealized gain (loss) on investment of securities lending collateral(11)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
8,456
|
|
|||||||
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts
|
|
0
|
|
|
39
|
|
|
0
|
|
|
39
|
|
||||
|
United Kingdom insurance pooled funds
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
39
|
|
|||||||
|
Real Estate:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(12)
|
|
0
|
|
|
0
|
|
|
607
|
|
|
607
|
|
||||
|
Partnerships
|
|
0
|
|
|
0
|
|
|
347
|
|
|
347
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
954
|
|
|||||||
|
Other:
|
|
|
|
|
|
|
|
|
||||||||
|
Partnerships
|
|
0
|
|
|
0
|
|
|
481
|
|
|
481
|
|
||||
|
Hedge funds
|
|
0
|
|
|
0
|
|
|
1,290
|
|
|
1,290
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
1,771
|
|
|||||||
|
Total
|
|
$
|
685
|
|
|
$
|
9,003
|
|
|
$
|
2,853
|
|
|
$
|
12,541
|
|
|
|
|
As of December 31, 2014
|
||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
U.S. Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(1)
|
|
$
|
0
|
|
|
$
|
881
|
|
|
$
|
0
|
|
|
$
|
881
|
|
|
Common/collective trusts(1)
|
|
0
|
|
|
87
|
|
|
0
|
|
|
87
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
968
|
|
|||||||
|
International Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(2)
|
|
0
|
|
|
323
|
|
|
0
|
|
|
323
|
|
||||
|
Common/collective trusts(3)
|
|
0
|
|
|
202
|
|
|
0
|
|
|
202
|
|
||||
|
United Kingdom insurance pooled funds(4)
|
|
0
|
|
|
45
|
|
|
0
|
|
|
45
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
570
|
|
|||||||
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(5)
|
|
0
|
|
|
1,162
|
|
|
35
|
|
|
1,197
|
|
||||
|
Common/collective trusts(6)
|
|
0
|
|
|
490
|
|
|
0
|
|
|
490
|
|
||||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
||||||||
|
Mortgage-backed
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|
||||
|
Other U.S. government securities
|
|
0
|
|
|
852
|
|
|
0
|
|
|
852
|
|
||||
|
U.S. government securities (state & other)
|
|
0
|
|
|
694
|
|
|
0
|
|
|
694
|
|
||||
|
Non-U.S. government securities
|
|
0
|
|
|
16
|
|
|
0
|
|
|
16
|
|
||||
|
United Kingdom insurance pooled funds(7)
|
|
0
|
|
|
320
|
|
|
0
|
|
|
320
|
|
||||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate bonds(8)
|
|
0
|
|
|
4,550
|
|
|
14
|
|
|
4,564
|
|
||||
|
Asset-backed
|
|
0
|
|
|
25
|
|
|
0
|
|
|
25
|
|
||||
|
Collateralized Mortgage Obligations(9)
|
|
0
|
|
|
112
|
|
|
0
|
|
|
112
|
|
||||
|
Interest rate swaps (Notional amount: $1,536)
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
||||
|
Guaranteed investment contract
|
|
0
|
|
|
28
|
|
|
0
|
|
|
28
|
|
||||
|
Other(10)
|
|
712
|
|
|
4
|
|
|
73
|
|
|
789
|
|
||||
|
Unrealized gain (loss) on investment of securities lending collateral(13)
|
|
0
|
|
|
(37
|
)
|
|
0
|
|
|
(37
|
)
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
9,050
|
|
|||||||
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts
|
|
0
|
|
|
39
|
|
|
0
|
|
|
39
|
|
||||
|
United Kingdom insurance pooled funds
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
40
|
|
|||||||
|
Real Estate:
|
|
|
|
|
|
|
|
|
||||||||
|
Pooled separate accounts(12)
|
|
0
|
|
|
0
|
|
|
465
|
|
|
465
|
|
||||
|
Partnerships
|
|
0
|
|
|
0
|
|
|
336
|
|
|
336
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
801
|
|
|||||||
|
Other:
|
|
|
|
|
|
|
|
|
||||||||
|
Partnerships
|
|
0
|
|
|
0
|
|
|
455
|
|
|
455
|
|
||||
|
Hedge funds
|
|
0
|
|
|
0
|
|
|
1,144
|
|
|
1,144
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
1,599
|
|
|||||||
|
Total
|
|
$
|
712
|
|
|
$
|
9,794
|
|
|
$
|
2,522
|
|
|
$
|
13,028
|
|
|
(1)
|
These categories invest in U.S. equity funds whose objective is to track or outperform various indexes.
|
|
(2)
|
This category invests in a large cap international equity funds whose objective is to track an index.
|
|
(3)
|
This category invests in international equity funds, primarily large cap, whose objective is to outperform various indexes. This category also includes a global equity fund, primarily focused on new market leaders with sustainable competitive advantage.
|
|
(4)
|
This category invests in an international equity fund whose objective is to track an index.
|
|
(5)
|
This category invests in bond funds, primarily highly rated private placement securities.
|
|
(6)
|
This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index.
|
|
(7)
|
This category invests in bond funds, primarily highly rated corporate securities.
|
|
(8)
|
This category invests in highly rated corporate securities.
|
|
(9)
|
This category invests in highly rated Collateralized Mortgage Obligations.
|
|
(10)
|
Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income collateral).
|
|
(11)
|
The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is
$163 million
and the liability for securities lending collateral is
$163 million
.
|
|
(12)
|
This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index.
|
|
(13)
|
The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is
$717 million
and the liability for securities lending collateral is
$754 million
.
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||
|
|
|
Fixed
Maturities–
Pooled
Separate
Accounts
|
|
Fixed
Maturities–
Corporate Debt–
Corporate
Bonds
|
|
Fixed
Maturities–
Other
|
|
Real Estate–
Pooled
Separate
Accounts
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
35
|
|
|
$
|
14
|
|
|
$
|
73
|
|
|
$
|
465
|
|
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Relating to assets still held at the reporting date
|
|
0
|
|
|
0
|
|
|
0
|
|
|
81
|
|
||||
|
Relating to assets sold during the period
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2
|
|
||||
|
Purchases, sales and settlements
|
|
0
|
|
|
0
|
|
|
20
|
|
|
59
|
|
||||
|
Transfers in and/or out of Level 3(1)
|
|
0
|
|
|
(14
|
)
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
35
|
|
|
$
|
0
|
|
|
$
|
93
|
|
|
$
|
607
|
|
|
|
|
Year Ended December 31, 2015
|
||||||||||
|
|
|
Real Estate–
Partnerships
|
|
Other–
Partnerships
|
|
Other–Hedge
Fund
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
|
$
|
336
|
|
|
$
|
455
|
|
|
$
|
1,144
|
|
|
Actual Return on Assets:
|
|
|
|
|
|
|
||||||
|
Relating to assets still held at the reporting date
|
|
32
|
|
|
34
|
|
|
(8
|
)
|
|||
|
Relating to assets sold during the period
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Purchases, sales and settlements
|
|
(21
|
)
|
|
(8
|
)
|
|
154
|
|
|||
|
Transfers in and/or out of Level 3
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Fair Value, end of period
|
|
$
|
347
|
|
|
$
|
481
|
|
|
$
|
1,290
|
|
|
(1)
|
The transfers from level 3 to level 2 are due to the availability of external pricing sources.
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||
|
|
|
Fixed
Maturities–
Pooled
Separate
Accounts
|
|
Fixed
Maturities–
Corporate Debt–
Corporate
Bonds
|
|
Fixed
Maturities–
Other
|
|
Real Estate–
Pooled
Separate
Accounts
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
32
|
|
|
$
|
16
|
|
|
$
|
66
|
|
|
$
|
356
|
|
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Relating to assets still held at the reporting date
|
|
3
|
|
|
0
|
|
|
0
|
|
|
49
|
|
||||
|
Relating to assets sold during the period
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
||||
|
Purchases, sales and settlements
|
|
0
|
|
|
(2
|
)
|
|
7
|
|
|
55
|
|
||||
|
Transfers in and/or out of Level 3
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
35
|
|
|
$
|
14
|
|
|
$
|
73
|
|
|
$
|
465
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
|
Real Estate–
Partnerships
|
|
Other–
Partnerships
|
|
Other–Hedge
Fund
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
|
$
|
320
|
|
|
$
|
374
|
|
|
$
|
1,095
|
|
|
Actual Return on Assets:
|
|
|
|
|
|
|
||||||
|
Relating to assets still held at the reporting date
|
|
6
|
|
|
53
|
|
|
49
|
|
|||
|
Relating to assets sold during the period
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Purchases, sales and settlements
|
|
10
|
|
|
28
|
|
|
0
|
|
|||
|
Transfers in and/or out of Level 3
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Fair Value, end of period
|
|
$
|
336
|
|
|
$
|
455
|
|
|
$
|
1,144
|
|
|
|
|
As of December 31, 2015
|
||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
U.S. Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies(1)
|
|
$
|
0
|
|
|
$
|
592
|
|
|
$
|
0
|
|
|
$
|
592
|
|
|
Common trusts(2)
|
|
0
|
|
|
169
|
|
|
0
|
|
|
169
|
|
||||
|
Equities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
761
|
|
|||||||
|
International Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies(3)
|
|
0
|
|
|
89
|
|
|
0
|
|
|
89
|
|
||||
|
Common trusts(4)
|
|
0
|
|
|
97
|
|
|
0
|
|
|
97
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
186
|
|
|||||||
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies(5)
|
|
0
|
|
|
59
|
|
|
0
|
|
|
59
|
|
||||
|
Common trusts(5)
|
|
0
|
|
|
67
|
|
|
0
|
|
|
67
|
|
||||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
||||||||
|
Mortgage-Backed
|
|
0
|
|
|
4
|
|
|
0
|
|
|
4
|
|
||||
|
Other U.S. government securities
|
|
0
|
|
|
80
|
|
|
0
|
|
|
80
|
|
||||
|
U.S. government securities (state & other)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Non-U.S. government securities
|
|
0
|
|
|
5
|
|
|
0
|
|
|
5
|
|
||||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate bonds(6)
|
|
0
|
|
|
204
|
|
|
0
|
|
|
204
|
|
||||
|
Asset-Backed
|
|
0
|
|
|
53
|
|
|
0
|
|
|
53
|
|
||||
|
Collateralized Mortgage Obligations(7)
|
|
0
|
|
|
30
|
|
|
0
|
|
|
30
|
|
||||
|
Interest rate swaps (Notional amount: $380)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Other(8)
|
|
6
|
|
|
0
|
|
|
3
|
|
|
9
|
|
||||
|
Unrealized gain (loss) on investment of securities lending collateral(9)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
511
|
|
|||||||
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Registered investment companies
|
|
126
|
|
|
0
|
|
|
0
|
|
|
126
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
126
|
|
|||||||
|
Total
|
|
$
|
132
|
|
|
$
|
1,449
|
|
|
$
|
3
|
|
|
$
|
1,584
|
|
|
|
|
As of December 31, 2014
|
||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
U.S. Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies(1)
|
|
$
|
0
|
|
|
$
|
698
|
|
|
$
|
0
|
|
|
$
|
698
|
|
|
Common trusts(2)
|
|
0
|
|
|
155
|
|
|
0
|
|
|
155
|
|
||||
|
Equities
|
|
124
|
|
|
0
|
|
|
0
|
|
|
124
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
977
|
|
|||||||
|
International Equities:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies(3)
|
|
0
|
|
|
61
|
|
|
0
|
|
|
61
|
|
||||
|
Common trusts(4)
|
|
0
|
|
|
22
|
|
|
0
|
|
|
22
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
83
|
|
|||||||
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
||||||||
|
Common trusts(5)
|
|
0
|
|
|
31
|
|
|
0
|
|
|
31
|
|
||||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
||||||||
|
Mortgage-Backed
|
|
0
|
|
|
5
|
|
|
0
|
|
|
5
|
|
||||
|
Other U.S. government securities
|
|
0
|
|
|
116
|
|
|
0
|
|
|
116
|
|
||||
|
U.S. government securities (state & other)
|
|
0
|
|
|
3
|
|
|
0
|
|
|
3
|
|
||||
|
Non-U.S. government securities
|
|
0
|
|
|
7
|
|
|
0
|
|
|
7
|
|
||||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate bonds(6)
|
|
0
|
|
|
254
|
|
|
1
|
|
|
255
|
|
||||
|
Asset-Backed
|
|
0
|
|
|
76
|
|
|
1
|
|
|
77
|
|
||||
|
Collateralized Mortgage Obligations(7)
|
|
0
|
|
|
39
|
|
|
0
|
|
|
39
|
|
||||
|
Interest rate swaps (Notional amount: $1,024)
|
|
0
|
|
|
(8
|
)
|
|
0
|
|
|
(8
|
)
|
||||
|
Other(8)
|
|
57
|
|
|
0
|
|
|
(5
|
)
|
|
52
|
|
||||
|
Unrealized gain (loss) on investment of securities lending collateral(10)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
577
|
|
|||||||
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
||||||||
|
Variable Life Insurance Policies
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Registered investment companies
|
|
80
|
|
|
0
|
|
|
0
|
|
|
80
|
|
||||
|
Subtotal
|
|
|
|
|
|
|
|
80
|
|
|||||||
|
Total
|
|
$
|
261
|
|
|
$
|
1,459
|
|
|
$
|
(3
|
)
|
|
$
|
1,717
|
|
|
(1)
|
This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies.
|
|
(2)
|
This category invests in U.S. equity funds, primarily large cap equities.
|
|
(3)
|
This category invests in international equity funds, primarily large cap international equities whose objective is to track an index.
|
|
(4)
|
This category fund invests in large cap international equity fund whose objective is to outperform an index.
|
|
(5)
|
This category invests in U.S. government and corporate bond funds.
|
|
(6)
|
This category invests in highly rated corporate bonds.
|
|
(7)
|
This category invests in highly rated Collateralized Mortgage Obligations.
|
|
(8)
|
Cash and cash equivalents, short-term investments, payables and receivables and open future contract positions (including fixed income collateral).
|
|
(9)
|
In
2015
, the contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is
$2 million
and the liability for securities lending collateral is
$2 million
.
|
|
(10)
|
In
2014
, the contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is
$10 million
and the liability for securities lending collateral is
$10 million
.
|
|
|
|
Year Ended December 31, 2015
|
||||||||||
|
|
|
Fixed
Maturities–
Corporate Debt–
Corporate
Bonds
|
|
Fixed
Maturities–
Corporate Debt–
Asset-
Backed
|
|
Fixed
Maturities–
Other
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
Actual Return on Assets:
|
|
|
|
|
|
|
||||||
|
Relating to assets still held at the reporting date
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Relating to assets sold during the period
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Purchases, sales and settlements
|
|
0
|
|
|
0
|
|
|
8
|
|
|||
|
Transfers in and/or out of Level 3(1)
|
|
(1
|
)
|
|
(1
|
)
|
|
0
|
|
|||
|
Fair Value, end of period
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
(1)
|
The transfers from level 3 to level 2 are due to the availability of external pricing sources.
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
|
Fixed
Maturities–
Corporate Debt–
Corporate
Bonds
|
|
Fixed
Maturities–
Corporate Debt–
Asset-
Backed
|
|
Fixed
Maturities–
Other
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(6
|
)
|
|
Actual Return on Assets:
|
|
|
|
|
|
|
||||||
|
Relating to assets still held at the reporting date
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Relating to assets sold during the period
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Purchases, sales and settlements
|
|
0
|
|
|
1
|
|
|
1
|
|
|||
|
Transfers in and/or out of Level 3(1)
|
|
0
|
|
|
(5
|
)
|
|
0
|
|
|||
|
Fair Value, end of period
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
(1)
|
The transfers from level 3 to level 2 are due to the availability of external pricing sources.
|
|
|
|
Pension Percentage of Plan Assets
|
|
Postretirement Percentage of Plan Assets
|
||||||||
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
|
Asset Category
|
|
|
|
|
|
|
|
|
||||
|
U.S. Equities
|
|
6
|
%
|
|
7
|
%
|
|
48
|
%
|
|
57
|
%
|
|
International Equities
|
|
5
|
|
|
5
|
|
|
12
|
|
|
5
|
|
|
Fixed Maturities
|
|
67
|
|
|
69
|
|
|
32
|
|
|
34
|
|
|
Short-term Investments
|
|
0
|
|
|
0
|
|
|
8
|
|
|
4
|
|
|
Real Estate
|
|
8
|
|
|
6
|
|
|
0
|
|
|
0
|
|
|
Other
|
|
14
|
|
|
13
|
|
|
0
|
|
|
0
|
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
Pension Benefit
Payments
|
|
Other
Postretirement
Benefit Payments
|
|
Other
Postretirement
Benefits–
Medicare Part
D Subsidy
Receipts
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
2016
|
|
$
|
678
|
|
|
$
|
172
|
|
|
$
|
12
|
|
|
2017
|
|
696
|
|
|
176
|
|
|
12
|
|
|||
|
2018
|
|
722
|
|
|
178
|
|
|
13
|
|
|||
|
2019
|
|
746
|
|
|
179
|
|
|
14
|
|
|||
|
2020
|
|
772
|
|
|
180
|
|
|
14
|
|
|||
|
2021-2025
|
|
4,205
|
|
|
876
|
|
|
75
|
|
|||
|
Total
|
|
$
|
7,819
|
|
|
$
|
1,761
|
|
|
$
|
140
|
|
|
19.
|
INCOME TAXES
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Current tax expense (benefit)
|
|
|
|
|
|
|
||||||
|
U.S.
|
|
$
|
738
|
|
|
$
|
(80
|
)
|
|
$
|
(292
|
)
|
|
State and local
|
|
3
|
|
|
(7
|
)
|
|
16
|
|
|||
|
Foreign
|
|
622
|
|
|
463
|
|
|
310
|
|
|||
|
Total
|
|
1,363
|
|
|
376
|
|
|
34
|
|
|||
|
Deferred tax expense (benefit)
|
|
|
|
|
|
|
||||||
|
U.S.
|
|
585
|
|
|
880
|
|
|
44
|
|
|||
|
State and local
|
|
4
|
|
|
12
|
|
|
0
|
|
|||
|
Foreign
|
|
120
|
|
|
(919
|
)
|
|
(1,136
|
)
|
|||
|
Total
|
|
709
|
|
|
(27
|
)
|
|
(1,092
|
)
|
|||
|
Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures
|
|
2,072
|
|
|
349
|
|
|
(1,058
|
)
|
|||
|
Income tax expense on equity in earnings of operating joint ventures
|
|
(1
|
)
|
|
(2
|
)
|
|
19
|
|
|||
|
Income tax expense on discontinued operations
|
|
0
|
|
|
6
|
|
|
3
|
|
|||
|
Income tax expense (benefit) reported in equity related to:
|
|
|
|
|
|
|
||||||
|
Other comprehensive income
|
|
(2,213
|
)
|
|
4,249
|
|
|
(582
|
)
|
|||
|
Stock-based compensation programs
|
|
(22
|
)
|
|
(29
|
)
|
|
(32
|
)
|
|||
|
Total income taxes
|
|
$
|
(164
|
)
|
|
$
|
4,573
|
|
|
$
|
(1,650
|
)
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Expected federal income tax expense (benefit)
|
|
$
|
2,719
|
|
|
$
|
616
|
|
|
$
|
(589
|
)
|
|
Non-taxable investment income
|
|
(341
|
)
|
|
(381
|
)
|
|
(319
|
)
|
|||
|
Foreign taxes at other than U.S. rate
|
|
(51
|
)
|
|
146
|
|
|
(38
|
)
|
|||
|
Low-income housing and other tax credits
|
|
(116
|
)
|
|
(127
|
)
|
|
(105
|
)
|
|||
|
Reversal of acquisition opening balance sheet deferred tax items
|
|
0
|
|
|
53
|
|
|
55
|
|
|||
|
Change in repatriation assertion
|
|
(3
|
)
|
|
32
|
|
|
0
|
|
|||
|
Minority interest
|
|
(24
|
)
|
|
(19
|
)
|
|
(37
|
)
|
|||
|
Medicare Part D
|
|
(10
|
)
|
|
3
|
|
|
(43
|
)
|
|||
|
Change in tax law: active financing exception
|
|
(108
|
)
|
|
0
|
|
|
(2
|
)
|
|||
|
Other
|
|
6
|
|
|
26
|
|
|
20
|
|
|||
|
Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures
|
|
$
|
2,072
|
|
|
$
|
349
|
|
|
$
|
(1,058
|
)
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Deferred tax assets(1)
|
|
|
|
|
||||
|
Insurance reserves
|
|
$
|
2,878
|
|
|
$
|
3,930
|
|
|
Policyholders’ dividends
|
|
1,815
|
|
|
2,552
|
|
||
|
Net operating and capital loss carryforwards
|
|
181
|
|
|
256
|
|
||
|
Employee benefits
|
|
628
|
|
|
825
|
|
||
|
Investments
|
|
530
|
|
|
260
|
|
||
|
Other
|
|
0
|
|
|
285
|
|
||
|
Deferred tax assets before valuation allowance
|
|
6,032
|
|
|
8,108
|
|
||
|
Valuation allowance
|
|
(133
|
)
|
|
(277
|
)
|
||
|
Deferred tax assets after valuation allowance
|
|
5,899
|
|
|
7,831
|
|
||
|
Deferred tax liabilities(2)
|
|
|
|
|
||||
|
Net unrealized investment gains
|
|
9,167
|
|
|
12,713
|
|
||
|
Deferred policy acquisition costs
|
|
4,179
|
|
|
4,049
|
|
||
|
Investments
|
|
0
|
|
|
0
|
|
||
|
Unremitted foreign earnings
|
|
290
|
|
|
512
|
|
||
|
Value of business acquired
|
|
903
|
|
|
924
|
|
||
|
Other
|
|
291
|
|
|
0
|
|
||
|
Deferred tax liabilities
|
|
14,830
|
|
|
18,198
|
|
||
|
Net deferred tax liability
|
|
$
|
(8,931
|
)
|
|
$
|
(10,367
|
)
|
|
(1)
|
Amounts for Insurance reserves, Investments, Deferred tax assets before valuation allowance and Deferred tax assets after valuation allowance have been revised to correct previously reported amounts of
$4,361 million
,
$0 million
,
$8,279 million
and
$8,002 million
, respectively.
|
|
(2)
|
Amounts for Investments and Deferred tax liabilities have been revised to correct previously reported amounts of
$171 million
and
$18,369 million
, respectively.
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Valuation allowance related to state and local deferred tax assets
|
|
$
|
98
|
|
|
$
|
252
|
|
|
Valuation allowance related to foreign operations deferred tax assets
|
|
$
|
35
|
|
|
$
|
25
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Federal net operating and capital loss carryforwards
|
|
$
|
0
|
|
|
$
|
0
|
|
|
State net operating and capital loss carryforwards(1)
|
|
$
|
3,687
|
|
|
$
|
5,895
|
|
|
Foreign operating loss carryforwards(2)
|
|
$
|
65
|
|
|
$
|
53
|
|
|
General business credits
|
|
$
|
0
|
|
|
$
|
136
|
|
|
Alternative minimum tax credits(3)
|
|
$
|
85
|
|
|
$
|
248
|
|
|
(1)
|
Expires between 2016 and 2034.
|
|
(2)
|
$34 million
expires between 2016 and 2025 and
$31 million
has an unlimited carryforward.
|
|
(3)
|
Alternative minimum tax credits do not expire.
|
|
Foreign Operation
|
|
Unremitted earnings for which the Company provides U.S. income taxes
|
|
Japanese insurance operations
|
|
- Pre-2014 U.S. GAAP earnings
|
|
|
|
- Post-2013 realized and unrealized capital gains
|
|
|
|
- An additional amount from Gibraltar Life and Prudential Gibraltar, not to exceed the deferred tax asset recorded in the Statements of Financial Position as of the acquisition date for Prudential Gibraltar and the Star and Edison Businesses
|
|
Korean insurance operations
|
|
Portion of post 2011 U.S. GAAP earnings
|
|
Certain operations in India, Germany, Taiwan, Brazil, and non-insurance operations in Japan
|
|
U.S. GAAP earnings
|
|
|
|
At December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment)
|
|
$
|
3,215
|
|
|
$
|
2,396
|
|
|
$
|
1,973
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Balance at January 1,
|
|
$
|
6
|
|
|
$
|
11
|
|
|
$
|
19
|
|
|
Increases in unrecognized tax benefits—prior years
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
(Decreases) in unrecognized tax benefits—prior years
|
|
0
|
|
|
0
|
|
|
(7
|
)
|
|||
|
Increases in unrecognized tax benefits—current year
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
(Decreases) in unrecognized tax benefits—current year
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Settlements with taxing authorities
|
|
0
|
|
|
(5
|
)
|
|
(1
|
)
|
|||
|
Balance at December 31,
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
11
|
|
|
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
11
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Interest and penalties recognized in the consolidated statements of operations
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Interest and penalties recognized in liabilities in the consolidated statements of financial position
|
|
$
|
4
|
|
|
$
|
4
|
|
|
Major Tax Jurisdiction
|
|
Open Tax Years
|
|
United States
|
|
2007-2015
|
|
Japan
|
|
Fiscal years ended March 31, 2011-2015
|
|
Korea
|
|
Fiscal years ended March 31, 2011-2013, the periods ended December 31, 2014 and 2015
|
|
20.
|
FAIR VALUE OF ASSETS AND LIABILITIES
|
|
|
|
As of December 31, 2015
|
||||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(1)
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Fixed maturities, available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
|
$
|
0
|
|
|
$
|
18,517
|
|
|
$
|
0
|
|
|
$
|
|
$
|
18,517
|
|
||
|
Obligations of U.S. states and their political subdivisions
|
|
0
|
|
|
8,789
|
|
|
6
|
|
|
|
|
8,795
|
|
||||||
|
Foreign government bonds
|
|
0
|
|
|
83,590
|
|
|
123
|
|
|
|
|
83,713
|
|
||||||
|
U.S. corporate public securities
|
|
0
|
|
|
75,163
|
|
|
205
|
|
|
|
|
75,368
|
|
||||||
|
U.S. corporate private securities
|
|
0
|
|
|
29,750
|
|
|
694
|
|
|
|
|
30,444
|
|
||||||
|
Foreign corporate public securities
|
|
0
|
|
|
28,510
|
|
|
44
|
|
|
|
|
28,554
|
|
||||||
|
Foreign corporate private securities
|
|
0
|
|
|
18,859
|
|
|
279
|
|
|
|
|
19,138
|
|
||||||
|
Asset-backed securities(7)
|
|
0
|
|
|
6,178
|
|
|
4,048
|
|
|
|
|
10,226
|
|
||||||
|
Commercial mortgage-backed securities
|
|
0
|
|
|
10,424
|
|
|
38
|
|
|
|
|
10,462
|
|
||||||
|
Residential mortgage-backed securities
|
|
0
|
|
|
4,923
|
|
|
183
|
|
|
|
|
5,106
|
|
||||||
|
Subtotal
|
|
0
|
|
|
284,703
|
|
|
5,620
|
|
|
|
|
290,323
|
|
||||||
|
Trading account assets:(2)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
|
0
|
|
|
288
|
|
|
0
|
|
|
|
|
288
|
|
||||||
|
Obligations of U.S. states and their political subdivisions
|
|
0
|
|
|
189
|
|
|
0
|
|
|
|
|
189
|
|
||||||
|
Foreign government bonds
|
|
0
|
|
|
697
|
|
|
34
|
|
|
|
|
731
|
|
||||||
|
Corporate securities
|
|
0
|
|
|
23,125
|
|
|
203
|
|
|
|
|
23,328
|
|
||||||
|
Asset-backed securities(7)
|
|
0
|
|
|
749
|
|
|
596
|
|
|
|
|
1,345
|
|
||||||
|
Commercial mortgage-backed securities
|
|
0
|
|
|
1,870
|
|
|
3
|
|
|
|
|
1,873
|
|
||||||
|
Residential mortgage-backed securities
|
|
0
|
|
|
1,509
|
|
|
4
|
|
|
|
|
1,513
|
|
||||||
|
Equity securities
|
|
1,542
|
|
|
221
|
|
|
589
|
|
|
|
|
2,352
|
|
||||||
|
All other(3)
|
|
630
|
|
|
14,173
|
|
|
5
|
|
|
(11,447
|
)
|
|
3,361
|
|
|||||
|
Subtotal
|
|
2,172
|
|
|
42,821
|
|
|
1,434
|
|
|
(11,447
|
)
|
|
34,980
|
|
|||||
|
Equity securities, available-for-sale
|
|
6,011
|
|
|
2,997
|
|
|
266
|
|
|
|
|
9,274
|
|
||||||
|
Commercial mortgage and other loans
|
|
0
|
|
|
274
|
|
|
0
|
|
|
|
|
274
|
|
||||||
|
Other long-term investments
|
|
13
|
|
|
212
|
|
|
1,380
|
|
|
(10
|
)
|
|
1,595
|
|
|||||
|
Short-term investments
|
|
6,776
|
|
|
711
|
|
|
0
|
|
|
|
|
7,487
|
|
||||||
|
Cash equivalents
|
|
4,834
|
|
|
9,374
|
|
|
0
|
|
|
|
|
14,208
|
|
||||||
|
Other assets
|
|
0
|
|
|
9
|
|
|
7
|
|
|
|
|
16
|
|
||||||
|
Subtotal excluding separate account assets
|
|
19,806
|
|
|
341,101
|
|
|
8,707
|
|
|
(11,457
|
)
|
|
358,157
|
|
|||||
|
Separate account assets(4)
|
|
43,076
|
|
|
214,838
|
|
|
27,656
|
|
|
|
|
285,570
|
|
||||||
|
Total assets
|
|
$
|
62,882
|
|
|
$
|
555,939
|
|
|
$
|
36,363
|
|
|
$
|
(11,457
|
)
|
|
$
|
643,727
|
|
|
Future policy benefits(5)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
8,434
|
|
|
$
|
|
$
|
8,434
|
|
||
|
Other liabilities
|
|
1
|
|
|
5,306
|
|
|
2
|
|
|
(5,276
|
)
|
|
33
|
|
|||||
|
Notes issued by consolidated VIEs
|
|
0
|
|
|
0
|
|
|
8,597
|
|
|
|
|
8,597
|
|
||||||
|
Total liabilities
|
|
$
|
1
|
|
|
$
|
5,306
|
|
|
$
|
17,033
|
|
|
$
|
(5,276
|
)
|
|
$
|
17,064
|
|
|
|
|
As of December 31, 2014(6)
|
||||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(1)
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Fixed maturities, available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
|
$
|
0
|
|
|
$
|
20,123
|
|
|
$
|
0
|
|
|
$
|
|
$
|
20,123
|
|
||
|
Obligations of U.S. states and their political subdivisions
|
|
0
|
|
|
6,525
|
|
|
6
|
|
|
|
|
6,531
|
|
||||||
|
Foreign government bonds
|
|
0
|
|
|
80,939
|
|
|
2
|
|
|
|
|
80,941
|
|
||||||
|
U.S. corporate public securities
|
|
0
|
|
|
79,709
|
|
|
357
|
|
|
|
|
80,066
|
|
||||||
|
U.S. corporate private securities
|
|
0
|
|
|
30,238
|
|
|
523
|
|
|
|
|
30,761
|
|
||||||
|
Foreign corporate public securities
|
|
0
|
|
|
30,816
|
|
|
252
|
|
|
|
|
31,068
|
|
||||||
|
Foreign corporate private securities
|
|
0
|
|
|
18,310
|
|
|
171
|
|
|
|
|
18,481
|
|
||||||
|
Asset-backed securities(7)
|
|
0
|
|
|
7,126
|
|
|
4,059
|
|
|
|
|
11,185
|
|
||||||
|
Commercial mortgage-backed securities
|
|
0
|
|
|
13,834
|
|
|
43
|
|
|
|
|
13,877
|
|
||||||
|
Residential mortgage-backed securities
|
|
0
|
|
|
5,804
|
|
|
253
|
|
|
|
|
6,057
|
|
||||||
|
Subtotal
|
|
0
|
|
|
293,424
|
|
|
5,666
|
|
|
|
|
299,090
|
|
||||||
|
Trading account assets:(2)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
|
0
|
|
|
399
|
|
|
0
|
|
|
|
|
399
|
|
||||||
|
Obligations of U.S. states and their political subdivisions
|
|
0
|
|
|
199
|
|
|
0
|
|
|
|
|
199
|
|
||||||
|
Foreign government bonds
|
|
0
|
|
|
696
|
|
|
21
|
|
|
|
|
717
|
|
||||||
|
Corporate securities
|
|
0
|
|
|
20,146
|
|
|
124
|
|
|
|
|
20,270
|
|
||||||
|
Asset-backed securities(7)
|
|
0
|
|
|
850
|
|
|
393
|
|
|
|
|
1,243
|
|
||||||
|
Commercial mortgage-backed securities
|
|
0
|
|
|
2,556
|
|
|
5
|
|
|
|
|
2,561
|
|
||||||
|
Residential mortgage-backed securities
|
|
0
|
|
|
1,767
|
|
|
7
|
|
|
|
|
1,774
|
|
||||||
|
Equity securities
|
|
1,396
|
|
|
232
|
|
|
663
|
|
|
|
|
2,291
|
|
||||||
|
All other(3)
|
|
194
|
|
|
13,803
|
|
|
7
|
|
|
(12,321
|
)
|
|
1,683
|
|
|||||
|
Subtotal
|
|
1,590
|
|
|
40,648
|
|
|
1,220
|
|
|
(12,321
|
)
|
|
31,137
|
|
|||||
|
Equity securities, available-for-sale
|
|
6,688
|
|
|
2,898
|
|
|
275
|
|
|
|
|
9,861
|
|
||||||
|
Commercial mortgage and other loans
|
|
0
|
|
|
380
|
|
|
0
|
|
|
|
|
380
|
|
||||||
|
Other long-term investments
|
|
12
|
|
|
224
|
|
|
1,547
|
|
|
(11
|
)
|
|
1,772
|
|
|||||
|
Short-term investments
|
|
5,263
|
|
|
2,472
|
|
|
0
|
|
|
|
|
7,735
|
|
||||||
|
Cash equivalents
|
|
2,657
|
|
|
9,188
|
|
|
0
|
|
|
|
|
11,845
|
|
||||||
|
Other assets
|
|
4
|
|
|
109
|
|
|
2
|
|
|
|
|
115
|
|
||||||
|
Subtotal excluding separate account assets
|
|
16,214
|
|
|
349,343
|
|
|
8,710
|
|
|
(12,332
|
)
|
|
361,935
|
|
|||||
|
Separate account assets(4)
|
|
48,063
|
|
|
223,710
|
|
|
24,662
|
|
|
|
|
296,435
|
|
||||||
|
Total assets
|
|
$
|
64,277
|
|
|
$
|
573,053
|
|
|
$
|
33,372
|
|
|
$
|
(12,332
|
)
|
|
$
|
658,370
|
|
|
Future policy benefits(5)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
8,182
|
|
|
$
|
|
$
|
8,182
|
|
||
|
Other liabilities
|
|
1
|
|
|
6,883
|
|
|
5
|
|
|
(6,661
|
)
|
|
228
|
|
|||||
|
Notes issued by consolidated VIEs
|
|
0
|
|
|
0
|
|
|
6,033
|
|
|
|
|
6,033
|
|
||||||
|
Total liabilities
|
|
$
|
1
|
|
|
$
|
6,883
|
|
|
$
|
14,220
|
|
|
$
|
(6,661
|
)
|
|
$
|
14,443
|
|
|
(1)
|
“Netting” amounts represent cash collateral of
$6,181 million
and
$5,671 million
as of December 31,
2015
and
2014
, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.
|
|
(2)
|
Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets.”
|
|
(3)
|
Level 1 represents cash equivalents and short-term investments. All other amounts primarily represent derivative assets.
|
|
(4)
|
Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position.
|
|
(5)
|
For the year ended December 31,
2015
, the net embedded derivative liability position of
$8.4 billion
includes
$0.7 billion
of embedded derivatives in an asset position and
$9.1 billion
of embedded derivatives in a liability position. For the year ended December 31,
2014
, the net embedded derivative liability position of
$8.2 billion
includes
$0.6 billion
of embedded derivatives in an asset position and
$8.8 billion
of embedded derivatives in a liability position.
|
|
(6)
|
Prior period amounts are presented on a basis consistent with the current period presentation.
|
|
(7)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
|
|
|
|
As of December 31, 2015
|
||||||||||
|
|
|
Internal(1)
|
|
External(2)
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Obligations of U.S. states and their political subdivisions
|
|
$
|
6
|
|
|
$
|
0
|
|
|
$
|
6
|
|
|
Foreign government bonds
|
|
0
|
|
|
157
|
|
|
157
|
|
|||
|
Corporate securities(3)
|
|
1,085
|
|
|
340
|
|
|
1,425
|
|
|||
|
Asset-backed securities(4)
|
|
149
|
|
|
4,495
|
|
|
4,644
|
|
|||
|
Commercial mortgage-backed securities
|
|
5
|
|
|
36
|
|
|
41
|
|
|||
|
Residential mortgage-backed securities
|
|
37
|
|
|
150
|
|
|
187
|
|
|||
|
Equity securities
|
|
63
|
|
|
792
|
|
|
855
|
|
|||
|
Other long-term investments
|
|
33
|
|
|
1,347
|
|
|
1,380
|
|
|||
|
Other assets
|
|
12
|
|
|
0
|
|
|
12
|
|
|||
|
Subtotal excluding separate account assets(3)
|
|
1,390
|
|
|
7,317
|
|
|
8,707
|
|
|||
|
Separate account assets
|
|
26,326
|
|
|
1,330
|
|
|
27,656
|
|
|||
|
Total assets
|
|
$
|
27,716
|
|
|
$
|
8,647
|
|
|
$
|
36,363
|
|
|
Future policy benefits
|
|
$
|
8,434
|
|
|
$
|
0
|
|
|
$
|
8,434
|
|
|
Other liabilities
|
|
2
|
|
|
0
|
|
|
2
|
|
|||
|
Notes issued by consolidated VIEs
|
|
0
|
|
|
8,597
|
|
|
8,597
|
|
|||
|
Total liabilities
|
|
$
|
8,436
|
|
|
$
|
8,597
|
|
|
$
|
17,033
|
|
|
|
|
As of December 31, 2014
|
||||||||||
|
|
|
Internal(1)
|
|
External(2)
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Obligations of U.S. states and their political subdivisions
|
|
$
|
6
|
|
|
$
|
0
|
|
|
$
|
6
|
|
|
Foreign government bonds
|
|
0
|
|
|
23
|
|
|
23
|
|
|||
|
Corporate securities(3)
|
|
752
|
|
|
675
|
|
|
1,427
|
|
|||
|
Asset-backed securities(4)
|
|
150
|
|
|
4,302
|
|
|
4,452
|
|
|||
|
Commercial mortgage-backed securities
|
|
10
|
|
|
38
|
|
|
48
|
|
|||
|
Residential mortgage-backed securities
|
|
57
|
|
|
203
|
|
|
260
|
|
|||
|
Equity securities
|
|
140
|
|
|
798
|
|
|
938
|
|
|||
|
Other long-term investments
|
|
1
|
|
|
1,546
|
|
|
1,547
|
|
|||
|
Other assets
|
|
9
|
|
|
0
|
|
|
9
|
|
|||
|
Subtotal excluding separate account assets(3)
|
|
1,125
|
|
|
7,585
|
|
|
8,710
|
|
|||
|
Separate account assets
|
|
23,632
|
|
|
1,030
|
|
|
24,662
|
|
|||
|
Total assets
|
|
$
|
24,757
|
|
|
$
|
8,615
|
|
|
$
|
33,372
|
|
|
Future policy benefits
|
|
$
|
8,182
|
|
|
$
|
0
|
|
|
$
|
8,182
|
|
|
Other liabilities
|
|
2
|
|
|
3
|
|
|
5
|
|
|||
|
Notes issued by consolidated VIEs
|
|
0
|
|
|
6,033
|
|
|
6,033
|
|
|||
|
Total liabilities
|
|
$
|
8,184
|
|
|
$
|
6,036
|
|
|
$
|
14,220
|
|
|
(1)
|
Represents valuations reflecting both internally-derived and market inputs, as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table.
|
|
(2)
|
Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.
|
|
(3)
|
Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets.
|
|
(4)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
|
|
|
|
As of December 31, 2015
|
||||||||||||||||
|
|
|
Fair Value
|
|
Valuation
Techniques
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted
Average
|
|
Impact of
Increase in
Input on
Fair
Value(1)
|
||||
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Corporate securities(9)
|
|
$
|
1,085
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
0.93%
|
—
|
|
25%
|
|
7.66
|
%
|
|
Decrease
|
|
|
|
|
|
Market comparables
|
|
EBITDA multiples(2)
|
|
1.4X
|
—
|
|
5.0X
|
|
3.7X
|
|
Increase
|
|||
|
|
|
|
|
Liquidation
|
|
Liquidation value
|
|
15.79%
|
—
|
|
29.33%
|
|
17.77
|
%
|
|
Increase
|
||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Future policy benefits(3)
|
|
$
|
8,434
|
|
|
Discounted cash flow
|
|
Lapse rate(4)
|
|
0%
|
—
|
|
14%
|
|
|
|
Decrease
|
|
|
|
|
|
|
|
|
NPR spread(5)
|
|
0.06%
|
—
|
|
1.76%
|
|
|
|
Decrease
|
|||
|
|
|
|
|
|
|
Utilization rate(6)
|
|
56%
|
—
|
|
96%
|
|
|
|
Increase
|
|||
|
|
|
|
|
|
|
Withdrawal rate(7)
|
|
74%
|
—
|
|
100%
|
|
|
|
Increase
|
|||
|
|
|
|
|
|
|
Mortality rate(8)
|
|
0%
|
—
|
|
14%
|
|
|
|
Decrease
|
|||
|
|
|
|
|
|
|
Equity volatility curve
|
|
17%
|
—
|
|
28%
|
|
|
|
Increase
|
|||
|
|
|
As of December 31, 2014
|
|||||||||||||||
|
|
|
Fair Value
|
|
Valuation
Techniques
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted
Average
|
|
Impact of
Increase in
Input on
Fair
Value(1)
|
|||
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Corporate securities(9)
|
|
$
|
752
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
0.84%
|
—
|
|
15%
|
|
7.73%
|
|
Decrease
|
|
|
|
|
|
Market comparables
|
|
EBITDA multiples(2)
|
|
6.1X
|
—
|
|
7.0X
|
|
6.1X
|
|
Increase
|
||
|
|
|
|
|
Liquidation
|
|
Liquidation value
|
|
22.12%
|
—
|
|
100.0%
|
|
82.92%
|
|
Increase
|
||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Future policy benefits(3)
|
|
$
|
8,182
|
|
|
Discounted cash flow
|
|
Lapse rate(4)
|
|
0%
|
—
|
|
14%
|
|
|
|
Decrease
|
|
|
|
|
|
|
|
NPR spread(5)
|
|
0%
|
—
|
|
1.30%
|
|
|
|
Decrease
|
||
|
|
|
|
|
|
|
Utilization rate(6)
|
|
63%
|
—
|
|
96%
|
|
|
|
Increase
|
||
|
|
|
|
|
|
|
Withdrawal rate(7)
|
|
74%
|
—
|
|
100%
|
|
|
|
Increase
|
||
|
|
|
|
|
|
|
Mortality rate(8)
|
|
0%
|
—
|
|
14%
|
|
|
|
Decrease
|
||
|
|
|
|
|
|
|
Equity volatility curve
|
|
17%
|
—
|
|
28%
|
|
|
|
Increase
|
||
|
(1)
|
Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table.
|
|
(2)
|
Represents multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments.
|
|
(3)
|
Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
|
|
(4)
|
Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.
|
|
(5)
|
To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium.
|
|
(6)
|
The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status, and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.
|
|
(7)
|
The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder age, tax status, and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%.
|
|
(8)
|
Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from
35
to
90
years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching
0%
. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.
|
|
(9)
|
Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets.
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
|
|
|
Fixed Maturities Available-For-Sale
|
||||||||||||||||||||||
|
|
|
U.S.
States
|
|
Foreign
Government
|
|
U.S. Corporate Public Securities
|
|
U.S. Corporate Private Securities
|
|
Foreign Corporate Public Securities
|
|
Foreign Corporate Private Securities
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
357
|
|
|
$
|
523
|
|
|
$
|
252
|
|
|
$
|
171
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Realized investment gains (losses), net
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(14
|
)
|
|
0
|
|
|
(81
|
)
|
||||||
|
Included in other comprehensive income (loss)
|
|
0
|
|
|
(3
|
)
|
|
1
|
|
|
(27
|
)
|
|
6
|
|
|
27
|
|
||||||
|
Net investment income
|
|
0
|
|
|
0
|
|
|
1
|
|
|
12
|
|
|
0
|
|
|
(27
|
)
|
||||||
|
Purchases
|
|
15
|
|
|
20
|
|
|
33
|
|
|
182
|
|
|
33
|
|
|
108
|
|
||||||
|
Sales
|
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
|
(43
|
)
|
|
(51
|
)
|
|
0
|
|
||||||
|
Issuances
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Settlements
|
|
0
|
|
|
0
|
|
|
(26
|
)
|
|
(110
|
)
|
|
(32
|
)
|
|
(59
|
)
|
||||||
|
Foreign currency translation
|
|
0
|
|
|
(4
|
)
|
|
(3
|
)
|
|
0
|
|
|
(5
|
)
|
|
0
|
|
||||||
|
Other(1)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(3
|
)
|
|
0
|
|
|
0
|
|
||||||
|
Transfers into Level 3(2)
|
|
0
|
|
|
129
|
|
|
23
|
|
|
209
|
|
|
0
|
|
|
140
|
|
||||||
|
Transfers out of Level 3(2)
|
|
(14
|
)
|
|
(21
|
)
|
|
(180
|
)
|
|
(35
|
)
|
|
(159
|
)
|
|
0
|
|
||||||
|
Fair Value, end of period
|
|
$
|
6
|
|
|
$
|
123
|
|
|
$
|
205
|
|
|
$
|
694
|
|
|
$
|
44
|
|
|
$
|
279
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(19
|
)
|
|
$
|
0
|
|
|
$
|
(68
|
)
|
|
|
Year Ended December 31, 2015
|
||||||||||
|
|
Fixed Maturities Available-For-Sale
|
||||||||||
|
|
Asset-
Backed(6)
|
|
Commercial
Mortgage-
Backed
|
|
Residential
Mortgage-
Backed
|
||||||
|
|
|
|
|
|
|
||||||
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
$
|
4,059
|
|
|
$
|
43
|
|
|
$
|
253
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
40
|
|
|
1
|
|
|
0
|
|
|||
|
Included in other comprehensive income (loss)
|
(37
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
|
Net investment income
|
21
|
|
|
0
|
|
|
(1
|
)
|
|||
|
Purchases
|
1,234
|
|
|
44
|
|
|
0
|
|
|||
|
Sales
|
(563
|
)
|
|
0
|
|
|
(7
|
)
|
|||
|
Issuances
|
(4
|
)
|
|
0
|
|
|
0
|
|
|||
|
Settlements
|
(308
|
)
|
|
(6
|
)
|
|
(52
|
)
|
|||
|
Foreign currency translation
|
(13
|
)
|
|
0
|
|
|
(8
|
)
|
|||
|
Other(1)
|
3
|
|
|
0
|
|
|
0
|
|
|||
|
Transfers into Level 3(2)
|
2,555
|
|
|
2
|
|
|
0
|
|
|||
|
Transfers out of Level 3(2)
|
(2,939
|
)
|
|
(45
|
)
|
|
0
|
|
|||
|
Fair Value, end of period
|
$
|
4,048
|
|
|
$
|
38
|
|
|
$
|
183
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
$
|
4
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||||||
|
|
|
Trading Account Assets
|
||||||||||||||||||||||||||
|
|
|
Foreign
Government
|
|
Corporate
|
|
Asset-
Backed(6)
|
|
Commercial
Mortgage-
Backed
|
|
Residential
Mortgage-
Backed
|
|
Equity
|
|
All
Other
Activity
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
21
|
|
|
$
|
124
|
|
|
$
|
393
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
663
|
|
|
$
|
7
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Other income
|
|
0
|
|
|
(28
|
)
|
|
(7
|
)
|
|
0
|
|
|
0
|
|
|
(15
|
)
|
|
(1
|
)
|
|||||||
|
Net investment income
|
|
0
|
|
|
1
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Purchases
|
|
16
|
|
|
124
|
|
|
325
|
|
|
27
|
|
|
0
|
|
|
28
|
|
|
0
|
|
|||||||
|
Sales
|
|
0
|
|
|
(15
|
)
|
|
(16
|
)
|
|
(3
|
)
|
|
0
|
|
|
(26
|
)
|
|
(1
|
)
|
|||||||
|
Issuances
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Settlements
|
|
(3
|
)
|
|
(39
|
)
|
|
(11
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(40
|
)
|
|
0
|
|
|||||||
|
Foreign currency translation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(13
|
)
|
|
0
|
|
|||||||
|
Other(1)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(8
|
)
|
|
0
|
|
|||||||
|
Transfers into Level 3(2)
|
|
0
|
|
|
77
|
|
|
272
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Transfers out of Level 3(2)
|
|
0
|
|
|
(41
|
)
|
|
(361
|
)
|
|
(25
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|||||||
|
Fair Value, end of period
|
|
$
|
34
|
|
|
$
|
203
|
|
|
$
|
596
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
589
|
|
|
$
|
5
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
9
|
|
|
$
|
(7
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
6
|
|
|
$
|
(1
|
)
|
|
|
|
Year Ended December 31, 2015
|
||||||||||
|
|
|
Equity
Securities
Available-
For-Sale
|
|
Other
Long-term
Investments
|
|
Other
Assets
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
|
$
|
275
|
|
|
$
|
1,547
|
|
|
$
|
2
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
|
15
|
|
|
23
|
|
|
0
|
|
|||
|
Other income
|
|
0
|
|
|
58
|
|
|
0
|
|
|||
|
Included in other comprehensive income (loss)
|
|
1
|
|
|
0
|
|
|
0
|
|
|||
|
Net investment income
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Purchases
|
|
31
|
|
|
481
|
|
|
0
|
|
|||
|
Sales
|
|
(48
|
)
|
|
(30
|
)
|
|
0
|
|
|||
|
Issuances
|
|
0
|
|
|
0
|
|
|
5
|
|
|||
|
Settlements
|
|
(3
|
)
|
|
(213
|
)
|
|
0
|
|
|||
|
Foreign currency translation
|
|
(7
|
)
|
|
(52
|
)
|
|
0
|
|
|||
|
Other(1)
|
|
0
|
|
|
(433
|
)
|
|
0
|
|
|||
|
Transfers into Level 3(2)
|
|
2
|
|
|
0
|
|
|
0
|
|
|||
|
Transfers out of Level 3(2)
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|||
|
Fair Value, end of period
|
|
$
|
266
|
|
|
$
|
1,380
|
|
|
$
|
7
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
|
$
|
(3
|
)
|
|
$
|
19
|
|
|
$
|
2
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
60
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||
|
|
|
Separate
Account
Assets(4)
|
|
Future
Policy
Benefits
|
|
Other
Liabilities
|
|
Notes Issued
by Consolidated
VIEs
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
24,662
|
|
|
$
|
(8,182
|
)
|
|
$
|
(5
|
)
|
|
$
|
(6,033
|
)
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
15
|
|
|
717
|
|
|
1
|
|
|
287
|
|
||||
|
Other income
|
|
0
|
|
|
0
|
|
|
0
|
|
|
146
|
|
||||
|
Interest credited to policyholders’ account balances
|
|
3,359
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net investment income
|
|
24
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Purchases
|
|
3,495
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Sales
|
|
(1,114
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Issuances
|
|
0
|
|
|
(969
|
)
|
|
0
|
|
|
(2,997
|
)
|
||||
|
Settlements
|
|
(1,839
|
)
|
|
0
|
|
|
2
|
|
|
0
|
|
||||
|
Foreign currency translation
|
|
(5
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Other(1)
|
|
(472
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Transfers into Level 3(2)
|
|
51
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Transfers out of Level 3(2)
|
|
(520
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
27,656
|
|
|
$
|
(8,434
|
)
|
|
$
|
(2
|
)
|
|
$
|
(8,597
|
)
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
485
|
|
|
$
|
1
|
|
|
$
|
287
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
146
|
|
|
Interest credited to policyholders’ account balances
|
|
$
|
1,970
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
Year Ended December 31, 2014(5)
|
||||||||||||||||||||||||||
|
|
Fixed Maturities Available-For-Sale
|
||||||||||||||||||||||||||
|
|
U.S.
Government
|
|
U.S.
States
|
|
Foreign
Government
|
|
U.S. Corporate Public Securities
|
|
U.S. Corporate Private Securities
|
|
Foreign Corporate Public Securities
|
|
Foreign Corporate Private Securities
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Fair Value, beginning of period
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
270
|
|
|
$
|
343
|
|
|
$
|
487
|
|
|
$
|
229
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
9
|
|
|
(8
|
)
|
|
19
|
|
|||||||
|
Included in other comprehensive income (loss)
|
0
|
|
|
0
|
|
|
0
|
|
|
11
|
|
|
2
|
|
|
52
|
|
|
(20
|
)
|
|||||||
|
Net investment income
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
8
|
|
|
1
|
|
|
(18
|
)
|
|||||||
|
Purchases
|
0
|
|
|
2
|
|
|
2
|
|
|
232
|
|
|
192
|
|
|
13
|
|
|
388
|
|
|||||||
|
Sales
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(34
|
)
|
|
(22
|
)
|
|
(217
|
)
|
|
(363
|
)
|
|||||||
|
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Settlements
|
0
|
|
|
0
|
|
|
0
|
|
|
(105
|
)
|
|
(231
|
)
|
|
(13
|
)
|
|
(64
|
)
|
|||||||
|
Foreign currency translation
|
0
|
|
|
0
|
|
|
0
|
|
|
(13
|
)
|
|
0
|
|
|
(53
|
)
|
|
0
|
|
|||||||
|
Other(1)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
2
|
|
|
0
|
|
|||||||
|
Transfers into Level 3(2)
|
0
|
|
|
5
|
|
|
0
|
|
|
61
|
|
|
257
|
|
|
1
|
|
|
0
|
|
|||||||
|
Transfers out of Level 3(2)
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
(64
|
)
|
|
(37
|
)
|
|
(13
|
)
|
|
0
|
|
|||||||
|
Fair Value, end of period
|
$
|
0
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
357
|
|
|
$
|
523
|
|
|
$
|
252
|
|
|
$
|
171
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(20
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
Fixed Maturities Available-For-Sale
|
||||||||||
|
|
Asset-
Backed(6)
|
|
Commercial
Mortgage-
Backed
|
|
Residential
Mortgage-
Backed
|
||||||
|
|
|
|
|
|
|
||||||
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
$
|
3,112
|
|
|
$
|
165
|
|
|
$
|
338
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
17
|
|
|
4
|
|
|
0
|
|
|||
|
Included in other comprehensive income (loss)
|
24
|
|
|
(1
|
)
|
|
0
|
|
|||
|
Net investment income
|
17
|
|
|
0
|
|
|
0
|
|
|||
|
Purchases
|
2,743
|
|
|
869
|
|
|
0
|
|
|||
|
Sales
|
(346
|
)
|
|
(11
|
)
|
|
0
|
|
|||
|
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Settlements
|
(1,046
|
)
|
|
(5
|
)
|
|
(12
|
)
|
|||
|
Foreign currency translation
|
(60
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|||
|
Other(1)
|
53
|
|
|
0
|
|
|
(55
|
)
|
|||
|
Transfers into Level 3(2)
|
1,164
|
|
|
0
|
|
|
0
|
|
|||
|
Transfers out of Level 3(2)
|
(1,619
|
)
|
|
(977
|
)
|
|
0
|
|
|||
|
Fair Value, end of period
|
$
|
4,059
|
|
|
$
|
43
|
|
|
$
|
253
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
$
|
2
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||
|
|
|
Trading Account Assets
|
||||||||||||||||||||||||||
|
|
|
Foreign
Government |
|
Corporate
|
|
Asset-
Backed(6)
|
|
Commercial
Mortgage-
Backed
|
|
Residential
Mortgage-
Backed
|
|
Equity
|
|
All
Other
Activity
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
0
|
|
|
$
|
115
|
|
|
$
|
395
|
|
|
$
|
1
|
|
|
$
|
9
|
|
|
$
|
842
|
|
|
$
|
6
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|||||||
|
Other income
|
|
0
|
|
|
(7
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
13
|
|
|
1
|
|
|||||||
|
Net investment income
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Purchases
|
|
21
|
|
|
181
|
|
|
119
|
|
|
87
|
|
|
0
|
|
|
29
|
|
|
0
|
|
|||||||
|
Sales
|
|
0
|
|
|
(160
|
)
|
|
(21
|
)
|
|
0
|
|
|
0
|
|
|
(64
|
)
|
|
0
|
|
|||||||
|
Issuances
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Settlements
|
|
0
|
|
|
(10
|
)
|
|
(29
|
)
|
|
0
|
|
|
(1
|
)
|
|
(84
|
)
|
|
0
|
|
|||||||
|
Foreign currency translation
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
(74
|
)
|
|
0
|
|
|||||||
|
Other(1)
|
|
0
|
|
|
0
|
|
|
2
|
|
|
(1
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|||||||
|
Transfers into Level 3(2)
|
|
0
|
|
|
9
|
|
|
47
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Transfers out of Level 3(2)
|
|
0
|
|
|
(4
|
)
|
|
(119
|
)
|
|
(87
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Fair Value, end of period
|
|
$
|
21
|
|
|
$
|
124
|
|
|
$
|
393
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
663
|
|
|
$
|
7
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
0
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
6
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||
|
|
|
Equity
Securities
Available-
For-Sale
|
|
Commercial
Mortgage
and Other
Loans
|
|
Other
Long-term
Investments
|
|
Other
Assets
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
304
|
|
|
$
|
0
|
|
|
$
|
1,396
|
|
|
$
|
4
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
8
|
|
|
0
|
|
|
(8
|
)
|
|
0
|
|
||||
|
Other income
|
|
0
|
|
|
0
|
|
|
94
|
|
|
0
|
|
||||
|
Included in other comprehensive income (loss)
|
|
9
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net investment income
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
||||
|
Purchases
|
|
24
|
|
|
0
|
|
|
240
|
|
|
0
|
|
||||
|
Sales
|
|
(41
|
)
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
||||
|
Issuances
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Settlements
|
|
0
|
|
|
0
|
|
|
(89
|
)
|
|
(2
|
)
|
||||
|
Foreign currency translation
|
|
(29
|
)
|
|
0
|
|
|
(9
|
)
|
|
0
|
|
||||
|
Other(1)
|
|
1
|
|
|
0
|
|
|
(79
|
)
|
|
0
|
|
||||
|
Transfers into Level 3(2)
|
|
7
|
|
|
0
|
|
|
5
|
|
|
0
|
|
||||
|
Transfers out of Level 3(2)
|
|
(8
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
275
|
|
|
$
|
0
|
|
|
$
|
1,547
|
|
|
$
|
2
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
$
|
(2
|
)
|
|
$
|
0
|
|
|
$
|
(8
|
)
|
|
$
|
0
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
94
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||
|
|
|
Separate
Account
Assets(4)
|
|
Future
Policy
Benefits
|
|
Other
Liabilities
|
|
Notes
Issued by
Consolidated
VIEs
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
22,603
|
|
|
$
|
(441
|
)
|
|
$
|
(5
|
)
|
|
$
|
(3,254
|
)
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
10
|
|
|
(6,831
|
)
|
|
2
|
|
|
201
|
|
||||
|
Interest credited to policyholders’ account balances
|
|
2,738
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net investment income
|
|
24
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Purchases
|
|
1,801
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Sales
|
|
(710
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Issuances
|
|
0
|
|
|
(910
|
)
|
|
0
|
|
|
(2,980
|
)
|
||||
|
Settlements
|
|
(1,783
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Foreign currency translation
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Other(1)
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
||||
|
Transfers into Level 3(2)
|
|
100
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Transfers out of Level 3(2)
|
|
(120
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
24,662
|
|
|
$
|
(8,182
|
)
|
|
$
|
(5
|
)
|
|
$
|
(6,033
|
)
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
(6,853
|
)
|
|
$
|
2
|
|
|
$
|
201
|
|
|
Interest credited to policyholders’ account balances
|
|
$
|
1,760
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
Year Ended December 31, 2013(5)
|
||||||||||||||||||||||||||
|
|
Fixed Maturities Available-For-Sale
|
||||||||||||||||||||||||||
|
|
U.S.
Government
|
|
U.S.
States
|
|
Foreign
Government
|
|
U.S. Corporate Public Securities
|
|
U.S. Corporate Private Securities
|
|
Foreign Corporate Public Securities
|
|
Foreign Corporate Private Securities
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Fair Value, beginning of period
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
263
|
|
|
$
|
650
|
|
|
$
|
566
|
|
|
$
|
151
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(40
|
)
|
|
(1
|
)
|
|
11
|
|
|||||||
|
Included in other comprehensive income (loss)
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(17
|
)
|
|
30
|
|
|
(27
|
)
|
|||||||
|
Net investment income
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
0
|
|
|
(9
|
)
|
|||||||
|
Purchases
|
0
|
|
|
0
|
|
|
4
|
|
|
107
|
|
|
162
|
|
|
139
|
|
|
69
|
|
|||||||
|
Sales
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
(61
|
)
|
|
(43
|
)
|
|
(14
|
)
|
|
(8
|
)
|
|||||||
|
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Settlements
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
(95
|
)
|
|
(347
|
)
|
|
0
|
|
|
(137
|
)
|
|||||||
|
Foreign currency translation
|
0
|
|
|
0
|
|
|
0
|
|
|
(7
|
)
|
|
0
|
|
|
(112
|
)
|
|
(8
|
)
|
|||||||
|
Other(1)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Transfers into Level 3(2)
|
0
|
|
|
0
|
|
|
13
|
|
|
222
|
|
|
143
|
|
|
21
|
|
|
187
|
|
|||||||
|
Transfers out of Level 3(2)
|
0
|
|
|
0
|
|
|
(12
|
)
|
|
(155
|
)
|
|
(170
|
)
|
|
(142
|
)
|
|
0
|
|
|||||||
|
Fair Value, end of period
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
270
|
|
|
$
|
343
|
|
|
$
|
487
|
|
|
$
|
229
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(51
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
Year Ended December 31, 2013
|
||||||||||
|
|
Fixed Maturities Available-For-Sale
|
||||||||||
|
|
Asset-
Backed(6)
|
|
Commercial
Mortgage-
Backed
|
|
Residential
Mortgage-
Backed
|
||||||
|
|
|
|
|
|
|
||||||
|
|
(in millions)
|
||||||||||
|
Fair Value, beginning of period
|
$
|
3,230
|
|
|
$
|
124
|
|
|
$
|
484
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
29
|
|
|
37
|
|
|
0
|
|
|||
|
Included in other comprehensive income (loss)
|
(6
|
)
|
|
(19
|
)
|
|
(2
|
)
|
|||
|
Net investment income
|
37
|
|
|
0
|
|
|
(2
|
)
|
|||
|
Purchases
|
2,412
|
|
|
438
|
|
|
0
|
|
|||
|
Sales
|
(320
|
)
|
|
(51
|
)
|
|
0
|
|
|||
|
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Settlements
|
(1,175
|
)
|
|
(41
|
)
|
|
(55
|
)
|
|||
|
Foreign currency translation
|
(22
|
)
|
|
(9
|
)
|
|
(88
|
)
|
|||
|
Other(1)
|
(171
|
)
|
|
0
|
|
|
1
|
|
|||
|
Transfers into Level 3(2)
|
10
|
|
|
0
|
|
|
0
|
|
|||
|
Transfers out of Level 3(2)
|
(912
|
)
|
|
(314
|
)
|
|
0
|
|
|||
|
Fair Value, end of period
|
$
|
3,112
|
|
|
$
|
165
|
|
|
$
|
338
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
||||||
|
Included in earnings:
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net
|
$
|
13
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2013
|
||||||||||||||||||||||||||
|
|
|
Trading Account Assets
|
||||||||||||||||||||||||||
|
|
|
U.S.
Government
|
|
Corporate
|
|
Asset-
Backed(6)
|
|
Commercial
Mortgage-
Backed
|
|
Residential
Mortgage-
Backed
|
|
Equity
|
|
All
Other
Activity
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
0
|
|
|
$
|
134
|
|
|
$
|
419
|
|
|
$
|
10
|
|
|
$
|
12
|
|
|
$
|
1,098
|
|
|
$
|
25
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(16
|
)
|
|||||||
|
Other income
|
|
0
|
|
|
(8
|
)
|
|
7
|
|
|
0
|
|
|
1
|
|
|
63
|
|
|
2
|
|
|||||||
|
Net investment income
|
|
0
|
|
|
0
|
|
|
5
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Purchases
|
|
0
|
|
|
23
|
|
|
319
|
|
|
74
|
|
|
0
|
|
|
17
|
|
|
0
|
|
|||||||
|
Sales
|
|
0
|
|
|
(13
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
0
|
|
|
(140
|
)
|
|
0
|
|
|||||||
|
Issuances
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Settlements
|
|
0
|
|
|
(49
|
)
|
|
(228
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(43
|
)
|
|
(5
|
)
|
|||||||
|
Foreign currency translation
|
|
0
|
|
|
0
|
|
|
(6
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(153
|
)
|
|
0
|
|
|||||||
|
Other(1)
|
|
0
|
|
|
0
|
|
|
(76
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Transfers into Level 3(2)
|
|
0
|
|
|
52
|
|
|
2
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|||||||
|
Transfers out of Level 3(2)
|
|
0
|
|
|
(24
|
)
|
|
(45
|
)
|
|
(80
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|||||||
|
Fair Value, end of period
|
|
$
|
0
|
|
|
$
|
115
|
|
|
$
|
395
|
|
|
$
|
1
|
|
|
$
|
9
|
|
|
$
|
842
|
|
|
$
|
6
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(16
|
)
|
|
Other income
|
|
$
|
0
|
|
|
$
|
(7
|
)
|
|
$
|
7
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
50
|
|
|
$
|
2
|
|
|
|
|
Year Ended December 31, 2013
|
||||||||||||||
|
|
|
Equity
Securities
Available-
For-Sale
|
|
Commercial
Mortgage
and Other
Loans
|
|
Other
Long-term
Investments
|
|
Other
Assets |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
330
|
|
|
$
|
48
|
|
|
$
|
1,053
|
|
|
$
|
8
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
13
|
|
|
5
|
|
|
0
|
|
|
(4
|
)
|
||||
|
Other income
|
|
0
|
|
|
0
|
|
|
160
|
|
|
0
|
|
||||
|
Included in other comprehensive income (loss)
|
|
58
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Purchases
|
|
37
|
|
|
0
|
|
|
439
|
|
|
0
|
|
||||
|
Sales
|
|
(65
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Issuances
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Settlements
|
|
(3
|
)
|
|
(53
|
)
|
|
(134
|
)
|
|
0
|
|
||||
|
Foreign currency translation
|
|
(53
|
)
|
|
0
|
|
|
(13
|
)
|
|
0
|
|
||||
|
Other(1)
|
|
(18
|
)
|
|
0
|
|
|
(109
|
)
|
|
0
|
|
||||
|
Transfers into Level 3(2)
|
|
6
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Transfers out of Level 3(2)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
304
|
|
|
$
|
0
|
|
|
$
|
1,396
|
|
|
$
|
4
|
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
$
|
(5
|
)
|
|
$
|
0
|
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
|
Other income
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
155
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2013
|
||||||||||||||
|
|
|
Separate
Account
Assets(4)
|
|
Future
Policy
Benefits
|
|
Other
Liabilities
|
|
Notes
Issued by
Consolidated
VIEs
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Fair Value, beginning of period
|
|
$
|
21,132
|
|
|
$
|
(3,348
|
)
|
|
$
|
0
|
|
|
$
|
(1,406
|
)
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
2
|
|
|
3,741
|
|
|
(3
|
)
|
|
17
|
|
||||
|
Interest credited to policyholders’ account balances
|
|
2,649
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Net investment income
|
|
20
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Purchases
|
|
1,653
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Sales
|
|
(832
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Issuances
|
|
0
|
|
|
(836
|
)
|
|
0
|
|
|
(1,834
|
)
|
||||
|
Settlements
|
|
(2,120
|
)
|
|
0
|
|
|
0
|
|
|
(31
|
)
|
||||
|
Foreign currency translation
|
|
0
|
|
|
2
|
|
|
0
|
|
|
0
|
|
||||
|
Other(1)
|
|
140
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
||||
|
Transfers into Level 3(2)
|
|
89
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Transfers out of Level 3(2)
|
|
(130
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
|
Fair Value, end of period
|
|
$
|
22,603
|
|
|
$
|
(441
|
)
|
|
$
|
(5
|
)
|
|
$
|
(3,254
|
)
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
||||||||
|
Included in earnings:
|
|
|
|
|
|
|
|
|
||||||||
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
|
$
|
3,647
|
|
|
$
|
(3
|
)
|
|
$
|
17
|
|
|
Interest credited to policyholders’ account balances
|
|
$
|
1,652
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
(1)
|
For the year ended December 31, 2015 primarily represents distributions to and deconsolidations of noncontrolling interests and eliminations of intercompany separate account investments. For the years ended December 31, 2014 and 2013 primarily represents reclassifications of certain assets between reporting categories.
|
|
(2)
|
Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter.
|
|
(3)
|
Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.
|
|
(4)
|
Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position.
|
|
(5)
|
Prior period's amounts are presented on a basis consistent with the current period presentation.
|
|
(6)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
|
|
|
|
As of December 31, 2015
|
||||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(1)
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest Rate
|
|
$
|
11
|
|
|
$
|
10,561
|
|
|
$
|
7
|
|
|
|
|
$
|
10,579
|
|
||
|
Currency
|
|
0
|
|
|
318
|
|
|
0
|
|
|
|
|
318
|
|
||||||
|
Credit
|
|
0
|
|
|
3
|
|
|
0
|
|
|
|
|
3
|
|
||||||
|
Currency/Interest Rate
|
|
0
|
|
|
2,995
|
|
|
0
|
|
|
|
|
2,995
|
|
||||||
|
Equity
|
|
4
|
|
|
254
|
|
|
32
|
|
|
|
|
290
|
|
||||||
|
Commodity
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
|
0
|
|
||||||
|
Netting(1)
|
|
|
|
|
|
|
|
(11,457
|
)
|
|
(11,457
|
)
|
||||||||
|
Total derivative assets
|
|
$
|
15
|
|
|
$
|
14,131
|
|
|
$
|
39
|
|
|
$
|
(11,457
|
)
|
|
$
|
2,728
|
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest Rate
|
|
$
|
3
|
|
|
$
|
4,573
|
|
|
$
|
2
|
|
|
|
|
$
|
4,578
|
|
||
|
Currency
|
|
0
|
|
|
114
|
|
|
0
|
|
|
|
|
114
|
|
||||||
|
Credit
|
|
0
|
|
|
53
|
|
|
0
|
|
|
|
|
53
|
|
||||||
|
Currency/Interest Rate
|
|
0
|
|
|
244
|
|
|
0
|
|
|
|
|
244
|
|
||||||
|
Equity
|
|
0
|
|
|
327
|
|
|
0
|
|
|
|
|
327
|
|
||||||
|
Commodity
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
|
0
|
|
||||||
|
Netting(1)
|
|
|
|
|
|
|
|
(5,276
|
)
|
|
(5,276
|
)
|
||||||||
|
Total derivative liabilities
|
|
$
|
3
|
|
|
$
|
5,311
|
|
|
$
|
2
|
|
|
$
|
(5,276
|
)
|
|
$
|
40
|
|
|
|
|
As of December 31, 2014
|
||||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(1)
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest Rate
|
|
$
|
5
|
|
|
$
|
10,584
|
|
|
$
|
6
|
|
|
|
|
$
|
10,595
|
|
||
|
Currency
|
|
0
|
|
|
865
|
|
|
0
|
|
|
|
|
865
|
|
||||||
|
Credit
|
|
0
|
|
|
7
|
|
|
0
|
|
|
|
|
7
|
|
||||||
|
Currency/Interest Rate
|
|
0
|
|
|
1,885
|
|
|
0
|
|
|
|
|
1,885
|
|
||||||
|
Equity
|
|
5
|
|
|
562
|
|
|
5
|
|
|
|
|
572
|
|
||||||
|
Commodity
|
|
1
|
|
|
0
|
|
|
0
|
|
|
|
|
1
|
|
||||||
|
Netting(1)
|
|
|
|
|
|
|
|
(12,332
|
)
|
|
(12,332
|
)
|
||||||||
|
Total derivative assets
|
|
$
|
11
|
|
|
$
|
13,903
|
|
|
$
|
11
|
|
|
$
|
(12,332
|
)
|
|
$
|
1,593
|
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest Rate
|
|
$
|
3
|
|
|
$
|
4,948
|
|
|
$
|
3
|
|
|
|
|
$
|
4,954
|
|
||
|
Currency
|
|
0
|
|
|
1,025
|
|
|
0
|
|
|
|
|
1,025
|
|
||||||
|
Credit
|
|
0
|
|
|
30
|
|
|
0
|
|
|
|
|
30
|
|
||||||
|
Currency/Interest Rate
|
|
0
|
|
|
307
|
|
|
0
|
|
|
|
|
307
|
|
||||||
|
Equity
|
|
0
|
|
|
503
|
|
|
0
|
|
|
|
|
503
|
|
||||||
|
Commodity
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
|
0
|
|
||||||
|
Netting(1)
|
|
|
|
|
|
|
|
(6,661
|
)
|
|
(6,661
|
)
|
||||||||
|
Total derivative liabilities
|
|
$
|
3
|
|
|
$
|
6,813
|
|
|
$
|
3
|
|
|
$
|
(6,661
|
)
|
|
$
|
158
|
|
|
(1)
|
“Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty.
|
|
|
|
Year Ended December 31, 2015
|
||||||
|
|
|
Derivative Assets–
Equity
|
|
Derivative
Assets–
Interest Rate
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Fair Value, beginning of period
|
|
$
|
6
|
|
|
$
|
3
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
||||
|
Included in earnings:
|
|
|
|
|
||||
|
Realized investment gains (losses), net
|
|
20
|
|
|
2
|
|
||
|
Other income
|
|
0
|
|
|
0
|
|
||
|
Purchases
|
|
9
|
|
|
0
|
|
||
|
Sales
|
|
(2
|
)
|
|
0
|
|
||
|
Issuances
|
|
0
|
|
|
0
|
|
||
|
Settlements
|
|
0
|
|
|
0
|
|
||
|
Transfers into Level 3(1)
|
|
0
|
|
|
0
|
|
||
|
Transfers out of Level 3(1)
|
|
(1
|
)
|
|
0
|
|
||
|
Fair Value, end of period
|
|
$
|
32
|
|
|
$
|
5
|
|
|
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period:
|
|
|
|
|
||||
|
Included in earnings:
|
|
|
|
|
||||
|
Realized investment gains (losses), net
|
|
$
|
20
|
|
|
$
|
2
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
Year Ended December 31, 2014
|
||||||
|
|
|
Derivative Assets–
Equity
|
|
Derivative
Assets–
Interest Rate
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Fair Value, beginning of period
|
|
$
|
0
|
|
|
$
|
3
|
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
||||
|
Included in earnings:
|
|
|
|
|
||||
|
Realized investment gains (losses), net
|
|
1
|
|
|
0
|
|
||
|
Other income
|
|
0
|
|
|
0
|
|
||
|
Purchases
|
|
0
|
|
|
0
|
|
||
|
Sales
|
|
0
|
|
|
0
|
|
||
|
Issuances
|
|
0
|
|
|
0
|
|
||
|
Settlements
|
|
0
|
|
|
0
|
|
||
|
Transfers into Level 3(1)
|
|
5
|
|
|
0
|
|
||
|
Transfers out of Level 3(1)
|
|
0
|
|
|
0
|
|
||
|
Fair Value, end of period
|
|
$
|
6
|
|
|
$
|
3
|
|
|
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period:
|
|
|
|
|
||||
|
Included in earnings:
|
|
|
|
|
||||
|
Realized investment gains (losses), net
|
|
$
|
1
|
|
|
$
|
0
|
|
|
Other income
|
|
$
|
0
|
|
|
$
|
0
|
|
|
(1)
|
Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
(in millions)
|
||||||||||
|
Commercial mortgage loans(1):
|
|
|
|
|
|
||||||
|
Carrying value
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
27
|
|
|
Gains (Losses)
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(9
|
)
|
|
Mortgage servicing rights(2):
|
|
|
|
|
|
||||||
|
Carrying value
|
$
|
90
|
|
|
$
|
89
|
|
|
$
|
100
|
|
|
Gains (Losses)
|
$
|
(7
|
)
|
|
$
|
7
|
|
|
$
|
16
|
|
|
Cost method investments(3):
|
|
|
|
|
|
||||||
|
Carrying value
|
$
|
239
|
|
|
$
|
102
|
|
|
$
|
338
|
|
|
Gains (Losses)
|
$
|
(123
|
)
|
|
$
|
(21
|
)
|
|
$
|
(21
|
)
|
|
(1)
|
The reserve adjustments were based on discounted cash flows utilizing market rates or the fair value of the underlying real estate collateral.
|
|
(2)
|
Mortgage servicing rights are revalued based on internal models which utilize inputs. The fair value for mortgage servicing rights is determined using a discounted cash flow model incorporating assumptions for servicing revenues, adjusted for expected prepayments, delinquency rates, escrow deposit income and estimated loan servicing expenses.
|
|
(3)
|
For cost method impairments, the methodologies utilized were primarily discounted cash flow and, where appropriate, valuations provided by the general partners taking into consideration investment-related expenses.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
(in millions)
|
||||||||||
|
Assets:
|
|
|
|
|
|
||||||
|
Commercial mortgage and other loans:
|
|
|
|
|
|
||||||
|
Changes in instrument-specific credit risk
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
Other changes in fair value
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
Other long-term investments:
|
|
|
|
|
|
||||||
|
Changes in fair value
|
2
|
|
|
54
|
|
|
68
|
|
|||
|
Liabilities:
|
|
|
|
|
|
||||||
|
Notes issued by consolidated VIEs:
|
|
|
|
|
|
||||||
|
Changes in fair value
|
$
|
(434
|
)
|
|
$
|
(201
|
)
|
|
$
|
(17
|
)
|
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
|
Fair Value
|
|
Carrying
Amount(1)
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed maturities, held-to-maturity
|
|
$
|
0
|
|
|
$
|
1,543
|
|
|
$
|
1,081
|
|
|
$
|
2,624
|
|
|
$
|
2,308
|
|
|
Commercial mortgage and other loans
|
|
0
|
|
|
533
|
|
|
51,046
|
|
|
51,579
|
|
|
50,285
|
|
|||||
|
Policy loans
|
|
0
|
|
|
0
|
|
|
11,657
|
|
|
11,657
|
|
|
11,657
|
|
|||||
|
Other long-term investments
|
|
0
|
|
|
0
|
|
|
1,653
|
|
|
1,653
|
|
|
1,563
|
|
|||||
|
Short-term investments
|
|
0
|
|
|
617
|
|
|
1
|
|
|
618
|
|
|
618
|
|
|||||
|
Cash and cash equivalents
|
|
2,832
|
|
|
572
|
|
|
0
|
|
|
3,404
|
|
|
3,404
|
|
|||||
|
Accrued investment income
|
|
0
|
|
|
3,110
|
|
|
0
|
|
|
3,110
|
|
|
3,110
|
|
|||||
|
Other assets
|
|
136
|
|
|
2,334
|
|
|
652
|
|
|
3,122
|
|
|
3,122
|
|
|||||
|
Total assets
|
|
$
|
2,968
|
|
|
$
|
8,709
|
|
|
$
|
66,090
|
|
|
$
|
77,767
|
|
|
$
|
76,067
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Policyholders’ account balances—investment contracts
|
|
$
|
0
|
|
|
$
|
39,314
|
|
|
$
|
54,957
|
|
|
$
|
94,271
|
|
|
$
|
93,937
|
|
|
Securities sold under agreements to repurchase
|
|
0
|
|
|
7,882
|
|
|
0
|
|
|
7,882
|
|
|
7,882
|
|
|||||
|
Cash collateral for loaned securities
|
|
0
|
|
|
3,496
|
|
|
0
|
|
|
3,496
|
|
|
3,496
|
|
|||||
|
Short-term debt
|
|
0
|
|
|
1,221
|
|
|
0
|
|
|
1,221
|
|
|
1,216
|
|
|||||
|
Long-term debt
|
|
1,328
|
|
|
16,540
|
|
|
3,433
|
|
|
21,301
|
|
|
19,727
|
|
|||||
|
Notes issued by consolidated VIEs
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
|
Other liabilities
|
|
0
|
|
|
5,344
|
|
|
695
|
|
|
6,039
|
|
|
6,039
|
|
|||||
|
Separate account liabilities—investment contracts
|
|
0
|
|
|
69,978
|
|
|
32,267
|
|
|
102,245
|
|
|
102,245
|
|
|||||
|
Total liabilities
|
|
$
|
1,328
|
|
|
$
|
143,775
|
|
|
$
|
91,352
|
|
|
$
|
236,455
|
|
|
$
|
234,542
|
|
|
|
|
December 31, 2014
|
||||||||||||||||||
|
|
|
Fair Value
|
|
Carrying
Amount(1)
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed maturities, held-to-maturity
|
|
$
|
0
|
|
|
$
|
1,703
|
|
|
$
|
1,199
|
|
|
$
|
2,902
|
|
|
$
|
2,575
|
|
|
Commercial mortgage and other loans
|
|
0
|
|
|
559
|
|
|
48,158
|
|
|
48,717
|
|
|
46,052
|
|
|||||
|
Policy loans
|
|
0
|
|
|
0
|
|
|
11,712
|
|
|
11,712
|
|
|
11,712
|
|
|||||
|
Other long-term investments
|
|
0
|
|
|
0
|
|
|
1,917
|
|
|
1,917
|
|
|
1,712
|
|
|||||
|
Short-term investments
|
|
0
|
|
|
523
|
|
|
0
|
|
|
523
|
|
|
523
|
|
|||||
|
Cash and cash equivalents
|
|
2,230
|
|
|
843
|
|
|
0
|
|
|
3,073
|
|
|
3,073
|
|
|||||
|
Accrued investment income
|
|
0
|
|
|
3,130
|
|
|
0
|
|
|
3,130
|
|
|
3,130
|
|
|||||
|
Other assets
|
|
143
|
|
|
2,106
|
|
|
109
|
|
|
2,358
|
|
|
2,358
|
|
|||||
|
Total assets
|
|
$
|
2,373
|
|
|
$
|
8,864
|
|
|
$
|
63,095
|
|
|
$
|
74,332
|
|
|
$
|
71,135
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Policyholders’ account balances—investment contracts
|
|
$
|
0
|
|
|
$
|
40,264
|
|
|
$
|
56,111
|
|
|
$
|
96,375
|
|
|
$
|
95,069
|
|
|
Securities sold under agreements to repurchase
|
|
0
|
|
|
9,407
|
|
|
0
|
|
|
9,407
|
|
|
9,407
|
|
|||||
|
Cash collateral for loaned securities
|
|
0
|
|
|
4,241
|
|
|
0
|
|
|
4,241
|
|
|
4,241
|
|
|||||
|
Short-term debt
|
|
0
|
|
|
3,784
|
|
|
104
|
|
|
3,888
|
|
|
3,839
|
|
|||||
|
Long-term debt
|
|
1,285
|
|
|
16,718
|
|
|
4,083
|
|
|
22,086
|
|
|
19,831
|
|
|||||
|
Notes issued by consolidated VIEs
|
|
0
|
|
|
0
|
|
|
18
|
|
|
18
|
|
|
25
|
|
|||||
|
Other liabilities
|
|
0
|
|
|
6,254
|
|
|
120
|
|
|
6,374
|
|
|
6,374
|
|
|||||
|
Separate account liabilities—investment contracts
|
|
0
|
|
|
82,801
|
|
|
24,175
|
|
|
106,976
|
|
|
106,976
|
|
|||||
|
Total liabilities
|
|
$
|
1,285
|
|
|
$
|
163,469
|
|
|
$
|
84,611
|
|
|
$
|
249,365
|
|
|
$
|
245,762
|
|
|
(1)
|
Carrying values presented herein differ from those in the Company’s Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments.
|
|
21.
|
DERIVATIVE INSTRUMENTS
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Primary Underlying/
Instrument Type
|
|
|
Gross Fair Value
|
|
|
|
Gross Fair Value
|
||||||||||||||||
|
Notional(1)
|
|
Assets
|
|
Liabilities
|
|
Notional(1)
|
|
Assets
|
|
Liabilities
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate Swaps
|
$
|
1,431
|
|
|
$
|
20
|
|
|
$
|
(148
|
)
|
|
$
|
1,714
|
|
|
$
|
21
|
|
|
$
|
(191
|
)
|
|
Foreign Currency
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Foreign Currency Forwards
|
323
|
|
|
7
|
|
|
(1
|
)
|
|
443
|
|
|
5
|
|
|
(14
|
)
|
||||||
|
Currency/Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Foreign Currency Swaps
|
12,739
|
|
|
1,592
|
|
|
(5
|
)
|
|
10,772
|
|
|
679
|
|
|
(161
|
)
|
||||||
|
Total Qualifying Hedges
|
$
|
14,493
|
|
|
$
|
1,619
|
|
|
$
|
(154
|
)
|
|
$
|
12,929
|
|
|
$
|
705
|
|
|
$
|
(366
|
)
|
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate Swaps
|
$
|
173,091
|
|
|
$
|
10,161
|
|
|
$
|
(4,232
|
)
|
|
$
|
182,937
|
|
|
$
|
9,904
|
|
|
$
|
(4,578
|
)
|
|
Interest Rate Futures
|
28,209
|
|
|
11
|
|
|
(3
|
)
|
|
32,008
|
|
|
5
|
|
|
(3
|
)
|
||||||
|
Interest Rate Options
|
40,056
|
|
|
387
|
|
|
(196
|
)
|
|
27,561
|
|
|
663
|
|
|
(180
|
)
|
||||||
|
Interest Rate Forwards
|
86
|
|
|
0
|
|
|
0
|
|
|
877
|
|
|
2
|
|
|
(1
|
)
|
||||||
|
Foreign Currency
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Foreign Currency Forwards
|
17,400
|
|
|
311
|
|
|
(113
|
)
|
|
21,197
|
|
|
854
|
|
|
(1,011
|
)
|
||||||
|
Foreign Currency Options
|
93
|
|
|
0
|
|
|
0
|
|
|
203
|
|
|
6
|
|
|
0
|
|
||||||
|
Currency/Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Foreign Currency Swaps
|
11,607
|
|
|
1,404
|
|
|
(238
|
)
|
|
11,083
|
|
|
1,207
|
|
|
(145
|
)
|
||||||
|
Credit
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Credit Default Swaps
|
1,839
|
|
|
3
|
|
|
(53
|
)
|
|
2,622
|
|
|
7
|
|
|
(30
|
)
|
||||||
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Equity Futures
|
249
|
|
|
2
|
|
|
0
|
|
|
331
|
|
|
3
|
|
|
0
|
|
||||||
|
Equity Options
|
48,958
|
|
|
159
|
|
|
(118
|
)
|
|
57,590
|
|
|
504
|
|
|
(41
|
)
|
||||||
|
Total Return Swaps
|
18,804
|
|
|
128
|
|
|
(209
|
)
|
|
15,217
|
|
|
65
|
|
|
(462
|
)
|
||||||
|
Commodity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commodity Futures
|
80
|
|
|
0
|
|
|
0
|
|
|
18
|
|
|
1
|
|
|
0
|
|
||||||
|
Synthetic GICs
|
72,585
|
|
|
7
|
|
|
0
|
|
|
74,707
|
|
|
6
|
|
|
0
|
|
||||||
|
Total Non-Qualifying Derivatives(2)
|
$
|
413,057
|
|
|
$
|
12,573
|
|
|
$
|
(5,162
|
)
|
|
$
|
426,351
|
|
|
$
|
13,227
|
|
|
$
|
(6,451
|
)
|
|
Total Derivatives(3)
|
$
|
427,550
|
|
|
$
|
14,192
|
|
|
$
|
(5,316
|
)
|
|
$
|
439,280
|
|
|
$
|
13,932
|
|
|
$
|
(6,817
|
)
|
|
(1)
|
Notional amounts are presented on a gross basis and include derivatives used to offset existing positions.
|
|
(2)
|
Based on notional amounts, most of the Company’s derivatives do not qualify for hedge accounting as follows: i) derivatives that economically hedge embedded derivatives do not qualify for hedge accounting because changes in the fair value of the embedded derivatives are already recorded in net income, ii) derivatives that are utilized as macro hedges of the Company’s exposure to various risks typically do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedge accounting rules, and iii) synthetic GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules.
|
|
(3)
|
Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of
$8,408 million
as of December 31,
2015
and a net liability of
$8,162 million
as of December 31,
2014
, primarily included in “Future policy benefits.”
|
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
|
Gross
Amounts of
Recognized
Financial
Instruments
|
|
Gross
Amounts
Offset in the
Statement of
Financial
Position
|
|
Net Amounts
Presented in
the Statement
of Financial
Position
|
|
Financial
Instruments/
Collateral(1)
|
|
Net
Amount
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Offsetting of Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivatives(1)
|
|
$
|
14,028
|
|
|
$
|
(11,457
|
)
|
|
$
|
2,571
|
|
|
$
|
(1,296
|
)
|
|
$
|
1,275
|
|
|
Securities purchased under agreement to resell
|
|
776
|
|
|
0
|
|
|
776
|
|
|
(776
|
)
|
|
0
|
|
|||||
|
Total Assets
|
|
$
|
14,804
|
|
|
$
|
(11,457
|
)
|
|
$
|
3,347
|
|
|
$
|
(2,072
|
)
|
|
$
|
1,275
|
|
|
Offsetting of Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivatives(1)
|
|
$
|
5,310
|
|
|
$
|
(5,276
|
)
|
|
$
|
34
|
|
|
$
|
(14
|
)
|
|
$
|
20
|
|
|
Securities sold under agreement to repurchase
|
|
7,882
|
|
|
0
|
|
|
7,882
|
|
|
(7,882
|
)
|
|
0
|
|
|||||
|
Total Liabilities
|
|
$
|
13,192
|
|
|
$
|
(5,276
|
)
|
|
$
|
7,916
|
|
|
$
|
(7,896
|
)
|
|
$
|
20
|
|
|
|
|
December 31, 2014
|
||||||||||||||||||
|
|
|
Gross
Amounts of
Recognized
Financial
Instruments
|
|
Gross
Amounts
Offset in the
Statement of
Financial
Position
|
|
Net Amounts
Presented in
the Statement
of Financial
Position
|
|
Financial
Instruments/
Collateral(1)
|
|
Net
Amount
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Offsetting of Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivatives(1)
|
|
$
|
13,786
|
|
|
$
|
(12,332
|
)
|
|
$
|
1,454
|
|
|
$
|
(623
|
)
|
|
$
|
831
|
|
|
Securities purchased under agreement to resell
|
|
702
|
|
|
0
|
|
|
702
|
|
|
(702
|
)
|
|
0
|
|
|||||
|
Total Assets
|
|
$
|
14,488
|
|
|
$
|
(12,332
|
)
|
|
$
|
2,156
|
|
|
$
|
(1,325
|
)
|
|
$
|
831
|
|
|
Offsetting of Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivatives(1)
|
|
$
|
6,810
|
|
|
$
|
(6,661
|
)
|
|
$
|
149
|
|
|
$
|
(149
|
)
|
|
$
|
0
|
|
|
Securities sold under agreement to repurchase
|
|
9,407
|
|
|
0
|
|
|
9,407
|
|
|
(9,407
|
)
|
|
0
|
|
|||||
|
Total Liabilities
|
|
$
|
16,217
|
|
|
$
|
(6,661
|
)
|
|
$
|
9,556
|
|
|
$
|
(9,556
|
)
|
|
$
|
0
|
|
|
(1)
|
Amounts exclude the excess of collateral received/pledged from/to the counterparty.
|
|
|
Year Ended December 31, 2015
|
|||||||||||||||||||||||
|
|
Realized
Investment
Gains
(Losses)
|
|
Net
Investment
Income
|
|
Other
Income
|
|
Interest
Expense
|
|
Interest
Credited
To Policyholders’
Account
Balances
|
|
AOCI(1)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
(in millions)
|
|||||||||||||||||||||||
|
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest Rate
|
$
|
29
|
|
|
$
|
(44
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
Currency
|
18
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total fair value hedges
|
47
|
|
|
(45
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest Rate
|
0
|
|
|
0
|
|
|
0
|
|
|
(7
|
)
|
|
0
|
|
|
2
|
|
|||||||
|
Currency/Interest Rate
|
0
|
|
|
75
|
|
|
146
|
|
|
0
|
|
|
0
|
|
|
957
|
|
|||||||
|
Total cash flow hedges
|
0
|
|
|
75
|
|
|
146
|
|
|
(7
|
)
|
|
0
|
|
|
959
|
|
|||||||
|
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Currency
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
9
|
|
|||||||
|
Currency/Interest Rate
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
31
|
|
|||||||
|
Total net investment hedges
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
40
|
|
|||||||
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest Rate
|
1,394
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Currency
|
(124
|
)
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Currency/Interest Rate
|
563
|
|
|
0
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Credit
|
(5
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Equity
|
(591
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Commodity
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Embedded Derivatives
|
724
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total non-qualifying hedges
|
1,961
|
|
|
0
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total
|
$
|
2,008
|
|
|
$
|
30
|
|
|
$
|
151
|
|
|
$
|
(7
|
)
|
|
$
|
0
|
|
|
$
|
999
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||
|
|
Realized
Investment
Gains
(Losses)
|
|
Net
Investment
Income
|
|
Other
Income
|
|
Interest
Expense
|
|
Interest
Credited
To
Policyholders’
Account
Balances
|
|
AOCI(1)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate
|
$
|
(4
|
)
|
|
$
|
(57
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
0
|
|
|
Currency
|
(9
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total fair value hedges
|
(13
|
)
|
|
(58
|
)
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
||||||
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate
|
0
|
|
|
0
|
|
|
0
|
|
|
(22
|
)
|
|
0
|
|
|
38
|
|
||||||
|
Currency/Interest Rate
|
0
|
|
|
7
|
|
|
67
|
|
|
0
|
|
|
0
|
|
|
614
|
|
||||||
|
Total cash flow hedges
|
0
|
|
|
7
|
|
|
67
|
|
|
(22
|
)
|
|
0
|
|
|
652
|
|
||||||
|
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Currency
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
17
|
|
||||||
|
Currency/Interest Rate
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
128
|
|
||||||
|
Total net investment hedges
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
145
|
|
||||||
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Rate
|
7,623
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Currency
|
(562
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Currency/Interest Rate
|
1,124
|
|
|
0
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Credit
|
(22
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Equity
|
(1,605
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Commodity
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Embedded Derivatives
|
(6,734
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total non-qualifying hedges
|
(175
|
)
|
|
0
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
|
Total
|
$
|
(188
|
)
|
|
$
|
(51
|
)
|
|
$
|
72
|
|
|
$
|
(22
|
)
|
|
$
|
2
|
|
|
$
|
797
|
|
|
|
Year Ended December 31, 2013
|
|||||||||||||||||||||||
|
|
Realized
Investment
Gains (Losses)
|
|
Net
Investment
Income
|
|
Other
Income
|
|
Interest
Expense
|
|
Interest
Credited
To Policyholders’
Account
Balances
|
|
AOCI(1)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
(in millions)
|
|||||||||||||||||||||||
|
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest Rate
|
$
|
103
|
|
|
$
|
(71
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
20
|
|
|
$
|
0
|
|
|
|
Currency
|
(80
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total fair value hedges
|
23
|
|
|
(72
|
)
|
|
0
|
|
|
0
|
|
|
20
|
|
|
0
|
|
|||||||
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest Rate
|
0
|
|
|
0
|
|
|
0
|
|
|
(23
|
)
|
|
0
|
|
|
26
|
|
|||||||
|
Currency/Interest Rate
|
0
|
|
|
2
|
|
|
(91
|
)
|
|
0
|
|
|
0
|
|
|
(215
|
)
|
|||||||
|
Total cash flow hedges
|
0
|
|
|
2
|
|
|
(91
|
)
|
|
(23
|
)
|
|
0
|
|
|
(189
|
)
|
|||||||
|
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Currency(2)
|
0
|
|
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
0
|
|
|
6
|
|
|||||||
|
Currency/Interest Rate
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
233
|
|
|||||||
|
Total net investment hedges
|
0
|
|
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
0
|
|
|
239
|
|
|||||||
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest Rate
|
(5,254
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Currency
|
(591
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Currency/Interest Rate
|
131
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Credit
|
(4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Equity
|
(3,684
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Commodity
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Embedded Derivatives
|
3,752
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total non-qualifying hedges
|
(5,649
|
)
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total
|
$
|
(5,626
|
)
|
|
$
|
(70
|
)
|
|
$
|
(97
|
)
|
|
$
|
(23
|
)
|
|
$
|
20
|
|
|
$
|
50
|
|
|
|
(1)
|
Amounts deferred in AOCI.
|
|
(2)
|
Relates to the sale of equity method investments.
|
|
|
(in millions)
|
||
|
Balance, December 31, 2012
|
$
|
(257
|
)
|
|
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2013
|
(317
|
)
|
|
|
Amount reclassified into current period earnings
|
128
|
|
|
|
Balance, December 31, 2013
|
(446
|
)
|
|
|
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014
|
706
|
|
|
|
Amount reclassified into current period earnings
|
(54
|
)
|
|
|
Balance, December 31, 2014
|
206
|
|
|
|
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015
|
1,199
|
|
|
|
Amount reclassified into current period earnings
|
(240
|
)
|
|
|
Balance, December 31, 2015
|
$
|
1,165
|
|
|
22.
|
SEGMENT INFORMATION
|
|
•
|
realized investment gains (losses), net, and related charges and adjustments;
|
|
•
|
net investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes;
|
|
•
|
the contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down status, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP; and
|
|
•
|
equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests.
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Net gains (losses) from(1):
|
|
|
|
|
|
|
||||||
|
Terminated hedges of foreign currency earnings
|
|
$
|
284
|
|
|
$
|
293
|
|
|
$
|
240
|
|
|
Current period yield adjustments
|
|
$
|
475
|
|
|
$
|
476
|
|
|
$
|
445
|
|
|
Principal source of earnings
|
|
$
|
123
|
|
|
$
|
100
|
|
|
$
|
122
|
|
|
(1)
|
In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to divested businesses as results of “Divested businesses,” discussed below.
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Net gains (losses) from:
|
|
|
||||||||||
|
Other trading account assets
|
|
$
|
(94
|
)
|
|
$
|
(21
|
)
|
|
$
|
168
|
|
|
Foreign currency exchange movements
|
|
$
|
69
|
|
|
$
|
(3,023
|
)
|
|
$
|
(4,060
|
)
|
|
Other activities
|
|
$
|
9
|
|
|
$
|
13
|
|
|
$
|
167
|
|
|
•
|
The portion of the amortization of DAC, VOBA, unearned revenue reserves and DSI for certain products that is related to net realized investment gains (losses).
|
|
•
|
Policyholder dividends and interest credited to policyholders’ account balances that relate to certain life policies that pass back certain realized investment gains (losses) to the policyholder, and reserves for future policy benefits for certain policies that are affected by net realized investment gains (losses).
|
|
•
|
Market value adjustments paid or received upon a contractholder’s surrender of certain of the Company’s annuity products as these amounts mitigate the net realized investment gains or losses incurred upon the disposition of the underlying invested assets.
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Adjusted Operating Income before income taxes by Segment:
|
|
|
|
|
|
|
||||||
|
Individual Annuities
|
|
$
|
1,797
|
|
|
$
|
1,467
|
|
|
$
|
2,085
|
|
|
Retirement
|
|
931
|
|
|
1,215
|
|
|
1,039
|
|
|||
|
Asset Management
|
|
779
|
|
|
785
|
|
|
723
|
|
|||
|
Total U.S. Retirement Solutions and Investment Management division
|
|
3,507
|
|
|
3,467
|
|
|
3,847
|
|
|||
|
Individual Life
|
|
635
|
|
|
498
|
|
|
583
|
|
|||
|
Group Insurance
|
|
176
|
|
|
23
|
|
|
157
|
|
|||
|
Total U.S. Individual Life and Group Insurance division
|
|
811
|
|
|
521
|
|
|
740
|
|
|||
|
International Insurance
|
|
3,226
|
|
|
3,252
|
|
|
3,152
|
|
|||
|
Total International Insurance division
|
|
3,226
|
|
|
3,252
|
|
|
3,152
|
|
|||
|
Corporate and Other operations
|
|
(1,313
|
)
|
|
(1,348
|
)
|
|
(1,370
|
)
|
|||
|
Total Corporate and Other
|
|
(1,313
|
)
|
|
(1,348
|
)
|
|
(1,370
|
)
|
|||
|
Total Adjusted Operating Income before income taxes
|
|
6,231
|
|
|
5,892
|
|
|
6,369
|
|
|||
|
Reconciling Items:
|
|
|
|
|
|
|
||||||
|
Realized investment gains (losses), net, and related adjustments
|
|
2,258
|
|
|
(3,588
|
)
|
|
(9,956
|
)
|
|||
|
Charges related to realized investment gains (losses), net
|
|
(679
|
)
|
|
(542
|
)
|
|
1,807
|
|
|||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
(524
|
)
|
|
339
|
|
|
(250
|
)
|
|||
|
Change in experience-rated contractholder liabilities due to asset value changes
|
|
433
|
|
|
(294
|
)
|
|
227
|
|
|||
|
Divested businesses:
|
|
|
|
|
|
|
||||||
|
Closed Block division(1)
|
|
58
|
|
|
0
|
|
|
0
|
|
|||
|
Other divested businesses
|
|
(66
|
)
|
|
167
|
|
|
29
|
|
|||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
58
|
|
|
44
|
|
|
28
|
|
|||
|
Subtotal(2)
|
|
7,769
|
|
|
2,018
|
|
|
(1,746
|
)
|
|||
|
Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures for Closed Block Business(3)
|
|
0
|
|
|
(259
|
)
|
|
62
|
|
|||
|
Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures
|
|
$
|
7,769
|
|
|
$
|
1,759
|
|
|
$
|
(1,684
|
)
|
|
(1)
|
As a result of the Class B Repurchase, for the year ended December 31, 2015, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations.
|
|
(2)
|
Amounts for the years ended December 31, 2014 and 2013 represent “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” of the Company’s former Financial Services Businesses, reflecting the existence of two classes of common stock and the separate reporting of the Financial Services Businesses and the Closed Block Business for each period.
|
|
(3)
|
Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the years ended December 31, 2014 and 2013.
|
|
|
|
|
||||||
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Total Assets:
|
|
|
|
|
||||
|
Individual Annuities
|
|
$
|
169,447
|
|
|
$
|
174,951
|
|
|
Retirement
|
|
171,183
|
|
|
179,674
|
|
||
|
Asset Management
|
|
54,491
|
|
|
50,214
|
|
||
|
Total U.S. Retirement Solutions and Investment Management division
|
|
395,121
|
|
|
404,839
|
|
||
|
Individual Life
|
|
71,856
|
|
|
70,152
|
|
||
|
Group Insurance
|
|
39,344
|
|
|
41,125
|
|
||
|
Total U.S. Individual Life and Group Insurance division
|
|
111,200
|
|
|
111,277
|
|
||
|
International Insurance
|
|
175,153
|
|
|
171,635
|
|
||
|
Total International Insurance division
|
|
175,153
|
|
|
171,635
|
|
||
|
Corporate and Other operations
|
|
13,787
|
|
|
8,013
|
|
||
|
Total Corporate and Other
|
|
13,787
|
|
|
8,013
|
|
||
|
Closed Block(1)
|
|
62,127
|
|
|
70,891
|
|
||
|
Total Closed Block division(1)
|
|
62,127
|
|
|
70,891
|
|
||
|
Total per Consolidated Statements of Financial Position
|
|
$
|
757,388
|
|
|
$
|
766,655
|
|
|
(1)
|
As of December 31, 2014, represents assets of the former Closed Block Business.
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||||||
|
|
|
Revenues
|
|
Net
Investment
Income
|
|
Policyholders’
Benefits
|
|
Interest
Credited to
Policyholders’
Account
Balances
|
|
Dividends to
Policyholders
|
|
Interest
Expense
|
|
Amortization
of DAC
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Individual Annuities
|
|
$
|
4,695
|
|
|
$
|
603
|
|
|
$
|
314
|
|
|
$
|
363
|
|
|
$
|
0
|
|
|
$
|
69
|
|
|
$
|
465
|
|
|
Retirement
|
|
11,821
|
|
|
4,082
|
|
|
8,352
|
|
|
1,441
|
|
|
(2
|
)
|
|
25
|
|
|
66
|
|
|||||||
|
Asset Management
|
|
2,944
|
|
|
111
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
10
|
|
|
19
|
|
|||||||
|
Total U.S. Retirement Solutions and Investment Management division
|
|
19,460
|
|
|
4,796
|
|
|
8,666
|
|
|
1,804
|
|
|
(2
|
)
|
|
104
|
|
|
550
|
|
|||||||
|
Individual Life
|
|
5,233
|
|
|
1,669
|
|
|
2,245
|
|
|
644
|
|
|
33
|
|
|
550
|
|
|
133
|
|
|||||||
|
Group Insurance
|
|
5,143
|
|
|
586
|
|
|
3,868
|
|
|
257
|
|
|
0
|
|
|
8
|
|
|
6
|
|
|||||||
|
Total U.S. Individual Life and Group Insurance division
|
|
10,376
|
|
|
2,255
|
|
|
6,113
|
|
|
901
|
|
|
33
|
|
|
558
|
|
|
139
|
|
|||||||
|
International Insurance
|
|
19,364
|
|
|
4,357
|
|
|
11,821
|
|
|
880
|
|
|
51
|
|
|
5
|
|
|
989
|
|
|||||||
|
Total International Insurance division
|
|
19,364
|
|
|
4,357
|
|
|
11,821
|
|
|
880
|
|
|
51
|
|
|
5
|
|
|
989
|
|
|||||||
|
Corporate and Other operations
|
|
(570
|
)
|
|
550
|
|
|
16
|
|
|
0
|
|
|
0
|
|
|
635
|
|
|
(47
|
)
|
|||||||
|
Total Corporate and Other
|
|
(570
|
)
|
|
550
|
|
|
16
|
|
|
0
|
|
|
0
|
|
|
635
|
|
|
(47
|
)
|
|||||||
|
Total
|
|
48,630
|
|
|
11,958
|
|
|
26,616
|
|
|
3,585
|
|
|
82
|
|
|
1,302
|
|
|
1,631
|
|
|||||||
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net, and related adjustments
|
|
2,258
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Charges related to realized investment gains (losses), net
|
|
(31
|
)
|
|
0
|
|
|
39
|
|
|
191
|
|
|
0
|
|
|
0
|
|
|
452
|
|
|||||||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
(524
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Change in experience-rated contractholder liabilities due to assets value changes
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(433
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Divested businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Closed Block division(1)
|
|
6,160
|
|
|
2,653
|
|
|
3,365
|
|
|
135
|
|
|
2,130
|
|
|
1
|
|
|
37
|
|
|||||||
|
Other divested businesses
|
|
638
|
|
|
217
|
|
|
607
|
|
|
1
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|||||||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
(12
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Total per Consolidated Statements of Operations
|
|
$
|
57,119
|
|
|
$
|
14,829
|
|
|
$
|
30,627
|
|
|
$
|
3,479
|
|
|
$
|
2,212
|
|
|
$
|
1,306
|
|
|
$
|
2,120
|
|
|
(1)
|
As a result of the Class B Repurchase, for the year ended December 31, 2015, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations.
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||
|
|
|
Revenues
|
|
Net
Investment
Income
|
|
Policyholders’
Benefits
|
|
Interest
Credited to
Policyholders’
Account
Balances
|
|
Dividends to
Policyholders
|
|
Interest
Expense
|
|
Amortization
of DAC
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Individual Annuities
|
|
$
|
4,710
|
|
|
$
|
630
|
|
|
$
|
481
|
|
|
$
|
429
|
|
|
$
|
0
|
|
|
$
|
107
|
|
|
$
|
543
|
|
|
Retirement
|
|
12,077
|
|
|
4,209
|
|
|
8,336
|
|
|
1,476
|
|
|
0
|
|
|
25
|
|
|
31
|
|
|||||||
|
Asset Management
|
|
2,840
|
|
|
120
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
10
|
|
|
20
|
|
|||||||
|
Total U.S. Retirement Solutions and Investment Management division
|
|
19,627
|
|
|
4,959
|
|
|
8,817
|
|
|
1,905
|
|
|
0
|
|
|
142
|
|
|
594
|
|
|||||||
|
Individual Life
|
|
5,226
|
|
|
1,620
|
|
|
2,108
|
|
|
606
|
|
|
32
|
|
|
533
|
|
|
345
|
|
|||||||
|
Group Insurance
|
|
5,357
|
|
|
613
|
|
|
4,215
|
|
|
248
|
|
|
0
|
|
|
9
|
|
|
8
|
|
|||||||
|
Total U.S. Individual Life and Group Insurance division
|
|
10,583
|
|
|
2,233
|
|
|
6,323
|
|
|
854
|
|
|
32
|
|
|
542
|
|
|
353
|
|
|||||||
|
International Insurance
|
|
20,066
|
|
|
4,434
|
|
|
12,234
|
|
|
961
|
|
|
50
|
|
|
4
|
|
|
961
|
|
|||||||
|
Total International Insurance division
|
|
20,066
|
|
|
4,434
|
|
|
12,234
|
|
|
961
|
|
|
50
|
|
|
4
|
|
|
961
|
|
|||||||
|
Corporate and Other operations
|
|
(632
|
)
|
|
420
|
|
|
83
|
|
|
0
|
|
|
0
|
|
|
620
|
|
|
(55
|
)
|
|||||||
|
Total Corporate and Other
|
|
(632
|
)
|
|
420
|
|
|
83
|
|
|
0
|
|
|
0
|
|
|
620
|
|
|
(55
|
)
|
|||||||
|
Total
|
|
49,644
|
|
|
12,046
|
|
|
27,457
|
|
|
3,720
|
|
|
82
|
|
|
1,308
|
|
|
1,853
|
|
|||||||
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net, and related adjustments
|
|
(3,588
|
)
|
|
(5
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Charges related to realized investment gains (losses), net
|
|
55
|
|
|
0
|
|
|
295
|
|
|
111
|
|
|
(1
|
)
|
|
0
|
|
|
83
|
|
|||||||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
339
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Change in experience-rated contractholder liabilities due to assets value changes
|
|
0
|
|
|
0
|
|
|
0
|
|
|
294
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Divested businesses
|
|
762
|
|
|
208
|
|
|
509
|
|
|
2
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|||||||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
(13
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Subtotal
|
|
47,199
|
|
|
12,249
|
|
|
28,261
|
|
|
4,127
|
|
|
81
|
|
|
1,311
|
|
|
1,936
|
|
|||||||
|
Closed Block Business(1)
|
|
6,906
|
|
|
3,007
|
|
|
3,326
|
|
|
136
|
|
|
2,635
|
|
|
597
|
|
|
37
|
|
|||||||
|
Total per Consolidated Statements of Operations
|
|
$
|
54,105
|
|
|
$
|
15,256
|
|
|
$
|
31,587
|
|
|
$
|
4,263
|
|
|
$
|
2,716
|
|
|
$
|
1,908
|
|
|
$
|
1,973
|
|
|
(1)
|
Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the year ended December 31, 2014.
|
|
|
|
Year Ended December 31, 2013
|
||||||||||||||||||||||||||
|
|
|
Revenues
|
|
Net
Investment
Income
|
|
Policyholders’
Benefits
|
|
Interest
Credited to
Policyholders’
Account
Balances
|
|
Dividends to
Policyholders
|
|
Interest
Expense
|
|
Amortization
of DAC
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Individual Annuities
|
|
$
|
4,465
|
|
|
$
|
693
|
|
|
$
|
77
|
|
|
$
|
381
|
|
|
$
|
0
|
|
|
$
|
91
|
|
|
$
|
257
|
|
|
Retirement
|
|
6,028
|
|
|
4,067
|
|
|
2,461
|
|
|
1,529
|
|
|
0
|
|
|
26
|
|
|
15
|
|
|||||||
|
Asset Management
|
|
2,678
|
|
|
87
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
11
|
|
|
25
|
|
|||||||
|
Total U.S. Retirement Solutions and Investment Management division
|
|
13,171
|
|
|
4,847
|
|
|
2,538
|
|
|
1,910
|
|
|
0
|
|
|
128
|
|
|
297
|
|
|||||||
|
Individual Life
|
|
4,620
|
|
|
1,406
|
|
|
1,869
|
|
|
576
|
|
|
33
|
|
|
407
|
|
|
111
|
|
|||||||
|
Group Insurance
|
|
5,518
|
|
|
585
|
|
|
4,299
|
|
|
232
|
|
|
0
|
|
|
7
|
|
|
10
|
|
|||||||
|
Total U.S. Individual Life and Group Insurance division
|
|
10,138
|
|
|
1,991
|
|
|
6,168
|
|
|
808
|
|
|
33
|
|
|
414
|
|
|
121
|
|
|||||||
|
International Insurance
|
|
22,540
|
|
|
4,306
|
|
|
14,499
|
|
|
984
|
|
|
107
|
|
|
3
|
|
|
1,011
|
|
|||||||
|
Total International Insurance division
|
|
22,540
|
|
|
4,306
|
|
|
14,499
|
|
|
984
|
|
|
107
|
|
|
3
|
|
|
1,011
|
|
|||||||
|
Corporate and Other operations
|
|
(568
|
)
|
|
386
|
|
|
(35
|
)
|
|
0
|
|
|
0
|
|
|
715
|
|
|
(35
|
)
|
|||||||
|
Total Corporate and Other
|
|
(568
|
)
|
|
386
|
|
|
(35
|
)
|
|
0
|
|
|
0
|
|
|
715
|
|
|
(35
|
)
|
|||||||
|
Total
|
|
45,281
|
|
|
11,530
|
|
|
23,170
|
|
|
3,702
|
|
|
140
|
|
|
1,260
|
|
|
1,394
|
|
|||||||
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized investment gains (losses), net, and related adjustments
|
|
(9,960
|
)
|
|
(13
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Charges related to realized investment gains (losses), net
|
|
(199
|
)
|
|
0
|
|
|
(225
|
)
|
|
(500
|
)
|
|
0
|
|
|
0
|
|
|
(1,191
|
)
|
|||||||
|
Investment gains (losses) on trading account assets supporting insurance liabilities, net
|
|
(250
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Change in experience-rated contractholder liabilities due to assets value changes
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(227
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Divested businesses
|
|
631
|
|
|
196
|
|
|
454
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|||||||
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
|
|
(78
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
|
Subtotal
|
|
35,425
|
|
|
11,713
|
|
|
23,399
|
|
|
2,975
|
|
|
140
|
|
|
1,261
|
|
|
203
|
|
|||||||
|
Closed Block Business(1)
|
|
6,036
|
|
|
3,016
|
|
|
3,334
|
|
|
136
|
|
|
1,910
|
|
|
148
|
|
|
37
|
|
|||||||
|
Total per Consolidated Statements of Operations
|
|
$
|
41,461
|
|
|
$
|
14,729
|
|
|
$
|
26,733
|
|
|
$
|
3,111
|
|
|
$
|
2,050
|
|
|
$
|
1,409
|
|
|
$
|
240
|
|
|
(1)
|
Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the year ended December 31, 2013.
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Domestic operations
|
|
$
|
36,151
|
|
|
$
|
35,793
|
|
|
$
|
22,222
|
|
|
Foreign operations, total
|
|
$
|
20,968
|
|
|
$
|
18,312
|
|
|
$
|
19,239
|
|
|
Foreign operations, Japan
|
|
$
|
18,177
|
|
|
$
|
15,461
|
|
|
$
|
16,523
|
|
|
Foreign operations, Korea
|
|
$
|
1,462
|
|
|
$
|
1,484
|
|
|
$
|
1,437
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Asset Management segment intersegment revenues
|
|
$
|
682
|
|
|
$
|
645
|
|
|
$
|
611
|
|
|
23.
|
COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS
|
|
|
|
Operating and
Capital Leases(1)
|
|
Sub-lease
Income
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
2016
|
|
$
|
131
|
|
|
$
|
(1
|
)
|
|
2017
|
|
117
|
|
|
0
|
|
||
|
2018
|
|
92
|
|
|
0
|
|
||
|
2019
|
|
74
|
|
|
0
|
|
||
|
2020
|
|
53
|
|
|
0
|
|
||
|
2021 and thereafter
|
|
198
|
|
|
0
|
|
||
|
Total
|
|
$
|
665
|
|
|
$
|
(1
|
)
|
|
(1)
|
Future minimum lease payments under capital leases were $
22
million as of December 31,
2015
.
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Total outstanding mortgage loan commitments
|
|
$
|
2,272
|
|
|
$
|
2,442
|
|
|
Portion of commitment where prearrangement to sell to investor exists
|
|
$
|
721
|
|
|
$
|
958
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Expected to be funded from the general account and other operations outside the separate accounts(1)
|
|
$
|
3,787
|
|
|
$
|
4,883
|
|
|
Expected to be funded from separate accounts
|
|
$
|
92
|
|
|
$
|
28
|
|
|
(1)
|
Includes a remaining commitment of
$152 million
and
$194 million
at December 31,
2015
and
2014
, respectively, related to the Company’s agreement to co-invest with the Fosun Group (“Fosun”) in a private equity fund, managed by Fosun, for the Chinese marketplace.
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Indemnification provided to mutual fund, trust fund, and insurance company separate account clients for securities lending
|
|
$
|
15,084
|
|
|
$
|
14,334
|
|
|
Fair value of related collateral associated with above indemnifications
|
|
$
|
15,508
|
|
|
$
|
14,740
|
|
|
Accrued liability associated with guarantee
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Guaranteed value of third parties’ assets
|
|
$
|
72,585
|
|
|
$
|
74,707
|
|
|
Fair value of collateral supporting these assets
|
|
$
|
73,634
|
|
|
$
|
76,711
|
|
|
Asset associated with guarantee, carried at fair value
|
|
$
|
7
|
|
|
$
|
6
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Guarantees of credit enhancements of debt instruments associated with commercial real estate assets
|
|
$
|
24
|
|
|
$
|
5
|
|
|
Fair value of collateral that secure the guarantee
|
|
$
|
25
|
|
|
$
|
8
|
|
|
Accrued liability associated with guarantee
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company
|
|
$
|
1,200
|
|
|
$
|
1,248
|
|
|
First-loss exposure portion of above
|
|
$
|
371
|
|
|
$
|
388
|
|
|
Accrued liability associated with guarantees
|
|
$
|
14
|
|
|
$
|
16
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Other guarantees where amount can be determined
|
|
$
|
324
|
|
|
$
|
331
|
|
|
Accrued liability for other guarantees and indemnifications
|
|
$
|
4
|
|
|
$
|
5
|
|
|
|
|
As of December 31,
|
||||||
|
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
||||
|
|
|
(in millions)
|
||||||
|
Other assets:
|
|
|
|
|
||||
|
Premium tax offset for future undiscounted assessments
|
|
$
|
79
|
|
|
$
|
92
|
|
|
Premium tax offsets currently available for paid assessments
|
|
6
|
|
|
6
|
|
||
|
Total
|
|
$
|
85
|
|
|
$
|
98
|
|
|
Other liabilities:
|
|
|
|
|
||||
|
Insolvency assessments
|
|
$
|
39
|
|
|
$
|
39
|
|
|
24.
|
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
|
|
|
|
Three Months Ended
|
||||||||||
|
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
(in millions, except per share amounts)
|
||||||||||
|
2015
|
|
|
|
|
|
|
|
|
||||
|
Total revenues
|
|
$15,552
|
|
$13,712
|
|
$13,599
|
|
$14,256
|
||||
|
Total benefits and expenses
|
|
12,804
|
|
|
11,583
|
|
|
11,550
|
|
|
13,413
|
|
|
Income (loss) from continuing operations
|
|
2,046
|
|
|
1,459
|
|
|
1,467
|
|
|
740
|
|
|
Income (loss) from discontinued operations
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Net income (loss)
|
|
2,046
|
|
|
1,459
|
|
|
1,467
|
|
|
740
|
|
|
Less: Income attributable to noncontrolling interests
|
|
10
|
|
|
53
|
|
|
2
|
|
|
5
|
|
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
2,036
|
|
|
1,406
|
|
|
1,465
|
|
|
735
|
|
|
Basic earnings per share—Common Stock(1)(2):
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
|
$
|
4.44
|
|
|
$
|
3.07
|
|
|
$
|
3.22
|
|
|
$
|
1.62
|
|
|
Income (loss) from discontinued operations, net of taxes
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
||||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
$
|
4.44
|
|
|
$
|
3.07
|
|
|
$
|
3.22
|
|
|
$
|
1.62
|
|
|
Diluted earnings per share—Common Stock(1)(2):
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
|
$
|
4.37
|
|
|
$
|
3.03
|
|
|
$
|
3.16
|
|
|
$
|
1.60
|
|
|
Income (loss) from discontinued operations, net of taxes
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
||||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
$
|
4.37
|
|
|
$
|
3.03
|
|
|
$
|
3.16
|
|
|
$
|
1.60
|
|
|
2014
|
|
|
|
|
|
|
|
|
||||
|
Total revenues
|
|
$12,854
|
|
$13,146
|
|
$12,380
|
|
$15,725
|
||||
|
Total benefits and expenses
|
|
11,136
|
|
|
11,639
|
|
|
12,096
|
|
|
17,475
|
|
|
Income (loss) from continuing operations
|
|
1,245
|
|
|
1,109
|
|
|
523
|
|
|
(1,451
|
)
|
|
Income (loss) from discontinued operations
|
|
4
|
|
|
4
|
|
|
0
|
|
|
4
|
|
|
Net income (loss)
|
|
1,249
|
|
|
1,113
|
|
|
523
|
|
|
(1,447
|
)
|
|
Less: Income attributable to noncontrolling interests
|
|
11
|
|
|
23
|
|
|
11
|
|
|
12
|
|
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
1,238
|
|
|
1,090
|
|
|
512
|
|
|
(1,459
|
)
|
|
Basic earnings per share—Common Stock(1)(2):
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
|
$
|
2.62
|
|
|
$
|
2.25
|
|
|
$
|
1.00
|
|
|
$
|
(2.70
|
)
|
|
Income (loss) from discontinued operations, net of taxes
|
|
0.01
|
|
|
0.01
|
|
|
0.00
|
|
|
0.01
|
|
||||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
$
|
2.63
|
|
|
$
|
2.26
|
|
|
$
|
1.00
|
|
|
$
|
(2.69
|
)
|
|
Diluted earnings per share—Common Stock(1)(2):
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from continuing operations attributable to Prudential Financial, Inc.
|
|
$
|
2.58
|
|
|
$
|
2.21
|
|
|
$
|
0.99
|
|
|
$
|
(2.70
|
)
|
|
Income (loss) from discontinued operations, net of taxes
|
|
0.01
|
|
|
0.01
|
|
|
0.00
|
|
|
0.01
|
|
||||
|
Net income (loss) attributable to Prudential Financial, Inc.
|
|
$
|
2.59
|
|
|
$
|
2.22
|
|
|
$
|
0.99
|
|
|
$
|
(2.69
|
)
|
|
(1)
|
Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares.
|
|
(2)
|
For 2015, represents consolidated earnings per share of Common Stock. For 2014, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock. See Note 16 for additional information.
|
|
25.
|
SUBSEQUENT EVENTS
|
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
|
|
|
Page
Number
|
|
1.
|
||
|
2.
|
Financial Statement Schedules:
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Any remaining schedules are omitted because they are inapplicable.
|
|
|
Type of Investment
|
|
Cost(1)
|
|
Fair
Value
|
|
Amount
shown in the
Balance Sheet
|
||||||
|
Fixed maturities, available-for-sale:
|
|
|
|
|
|
|
||||||
|
Bonds:
|
|
|
|
|
|
|
||||||
|
United States Government and government agencies and authorities
|
|
$
|
14,992
|
|
|
$
|
18,517
|
|
|
$
|
18,517
|
|
|
States, municipalities and political subdivisions
|
|
8,089
|
|
|
8,795
|
|
|
8,795
|
|
|||
|
Foreign governments
|
|
71,849
|
|
|
83,713
|
|
|
83,713
|
|
|||
|
Asset-backed securities
|
|
10,121
|
|
|
10,226
|
|
|
10,226
|
|
|||
|
Residential mortgage-backed securities
|
|
4,777
|
|
|
5,106
|
|
|
5,106
|
|
|||
|
Commercial mortgage-backed securities
|
|
10,337
|
|
|
10,462
|
|
|
10,462
|
|
|||
|
Public utilities
|
|
20,825
|
|
|
22,157
|
|
|
22,157
|
|
|||
|
Certificates of deposit
|
|
62
|
|
|
60
|
|
|
60
|
|
|||
|
All other corporate bonds
|
|
123,780
|
|
|
130,669
|
|
|
130,669
|
|
|||
|
Redeemable preferred stock
|
|
584
|
|
|
618
|
|
|
618
|
|
|||
|
Total fixed maturities, available-for-sale
|
|
$
|
265,416
|
|
|
$
|
290,323
|
|
|
$
|
290,323
|
|
|
Fixed maturities, held-to-maturity:
|
|
|
|
|
|
|
||||||
|
Bonds:
|
|
|
|
|
|
|
||||||
|
Foreign governments
|
|
$
|
816
|
|
|
$
|
1,012
|
|
|
$
|
816
|
|
|
Residential mortgage-backed securities
|
|
756
|
|
|
809
|
|
|
756
|
|
|||
|
Commercial mortgage-backed securities
|
|
33
|
|
|
34
|
|
|
33
|
|
|||
|
All other corporate bonds
|
|
703
|
|
|
769
|
|
|
703
|
|
|||
|
Total fixed maturities, held-to-maturity
|
|
$
|
2,308
|
|
|
$
|
2,624
|
|
|
$
|
2,308
|
|
|
Equity securities:
|
|
|
|
|
|
|
||||||
|
Common Stocks:
|
|
|
|
|
|
|
||||||
|
Public utilities
|
|
$
|
134
|
|
|
$
|
160
|
|
|
$
|
160
|
|
|
Banks, trust and insurance companies
|
|
1,164
|
|
|
1,779
|
|
|
1,779
|
|
|||
|
Industrial, miscellaneous and other
|
|
5,525
|
|
|
7,312
|
|
|
7,312
|
|
|||
|
Nonredeemable preferred stocks
|
|
24
|
|
|
23
|
|
|
23
|
|
|||
|
Total equity securities, available-for-sale
|
|
$
|
6,847
|
|
|
$
|
9,274
|
|
|
$
|
9,274
|
|
|
Trading account assets supporting insurance liabilities(2)(3)
|
|
$
|
20,522
|
|
|
|
|
$
|
20,522
|
|
||
|
Other trading account assets(2)
|
|
14,458
|
|
|
|
|
14,458
|
|
||||
|
Commercial mortgage and other loans(4)
|
|
50,559
|
|
|
|
|
50,559
|
|
||||
|
Policy loans
|
|
11,657
|
|
|
|
|
11,657
|
|
||||
|
Short-term investments(5)
|
|
8,105
|
|
|
|
|
8,105
|
|
||||
|
Other long-term investments
|
|
9,986
|
|
|
|
|
9,986
|
|
||||
|
Total investments
|
|
$
|
389,858
|
|
|
|
|
$
|
417,192
|
|
||
|
(1)
|
Original cost of equities reduced by impairment and, as to fixed maturities, original cost reduced by repayments and impairments and adjusted for amortization of premiums and accretion of discounts.
|
|
(2)
|
At fair value.
|
|
(3)
|
See Note 4 to the Consolidated Financial Statements for the composition of the Company’s “Trading account assets supporting insurance liabilities, at fair value.”
|
|
(4)
|
At carrying value, net of allowance for losses. Includes commercial mortgage and other collateralized loans of
$49,557 million
and uncollateralized loans of
$1,002 million
.
|
|
(5)
|
“Short-term investments” include securities purchased under agreements to resell.
|
|
|
|
2015
|
|
2014
|
||||
|
ASSETS
|
|
|
|
|
||||
|
Investment contracts from subsidiaries
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Other investments
|
|
1,691
|
|
|
2,395
|
|
||
|
Total investments
|
|
1,692
|
|
|
2,396
|
|
||
|
Cash and cash equivalents
|
|
9,437
|
|
|
8,692
|
|
||
|
Due from subsidiaries
|
|
1,723
|
|
|
875
|
|
||
|
Loans receivable from subsidiaries
|
|
6,122
|
|
|
8,475
|
|
||
|
Investment in subsidiaries
|
|
50,625
|
|
|
50,218
|
|
||
|
Property, plant and equipment
|
|
579
|
|
|
0
|
|
||
|
Other assets
|
|
728
|
|
|
365
|
|
||
|
TOTAL ASSETS
|
|
$
|
70,906
|
|
|
$
|
71,021
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
||||
|
LIABILITIES
|
|
|
|
|
||||
|
Due to subsidiaries
|
|
$
|
7,664
|
|
|
$
|
7,414
|
|
|
Loans payable to subsidiaries
|
|
3,248
|
|
|
2,033
|
|
||
|
Short-term debt
|
|
831
|
|
|
2,319
|
|
||
|
Long-term debt
|
|
16,487
|
|
|
16,061
|
|
||
|
Income taxes payable
|
|
0
|
|
|
271
|
|
||
|
Other liabilities
|
|
786
|
|
|
1,153
|
|
||
|
Total liabilities
|
|
29,016
|
|
|
29,251
|
|
||
|
EQUITY
|
|
|
|
|
||||
|
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued)
|
|
0
|
|
|
0
|
|
||
|
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued at both December 31, 2015 and 2014)
|
|
6
|
|
|
6
|
|
||
|
Class B Stock ($.01 par value; 0 shares authorized and issued at December 31, 2015; 10,000,000 shares authorized and 2,000,000 shares issued at December 31, 2014)
|
|
0
|
|
|
0
|
|
||
|
Additional paid-in capital
|
|
24,482
|
|
|
24,565
|
|
||
|
Common Stock held in treasury, at cost (213,009,970 and 205,277,862 shares at December 31, 2015 and 2014, respectively)
|
|
(13,814
|
)
|
|
(13,088
|
)
|
||
|
Class B Stock held in treasury, at cost (0 and 2,000,000 shares at December 31, 2015 and December 31, 2014, respectively)
|
|
0
|
|
|
(651
|
)
|
||
|
Accumulated other comprehensive income (loss)
|
|
12,285
|
|
|
16,050
|
|
||
|
Retained earnings
|
|
18,931
|
|
|
14,888
|
|
||
|
Total equity
|
|
41,890
|
|
|
41,770
|
|
||
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
70,906
|
|
|
$
|
71,021
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
REVENUES
|
|
|
|
|
|
|
||||||
|
Net investment income
|
|
$
|
19
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
Realized investment gains (losses), net
|
|
(98
|
)
|
|
(793
|
)
|
|
390
|
|
|||
|
Affiliated interest revenue
|
|
353
|
|
|
417
|
|
|
416
|
|
|||
|
Other income
|
|
28
|
|
|
146
|
|
|
153
|
|
|||
|
Total revenues
|
|
302
|
|
|
(223
|
)
|
|
965
|
|
|||
|
EXPENSES
|
|
|
|
|
|
|
||||||
|
General and administrative expenses
|
|
170
|
|
|
59
|
|
|
50
|
|
|||
|
Interest expense
|
|
1,080
|
|
|
1,075
|
|
|
1,091
|
|
|||
|
Total expenses
|
|
1,250
|
|
|
1,134
|
|
|
1,141
|
|
|||
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
|
(948
|
)
|
|
(1,357
|
)
|
|
(176
|
)
|
|||
|
Total income tax expense (benefit)
|
|
(396
|
)
|
|
(492
|
)
|
|
(80
|
)
|
|||
|
LOSS FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES
|
|
(552
|
)
|
|
(865
|
)
|
|
(96
|
)
|
|||
|
Equity in earnings of subsidiaries
|
|
6,194
|
|
|
2,246
|
|
|
(571
|
)
|
|||
|
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|
5,642
|
|
|
1,381
|
|
|
(667
|
)
|
|||
|
Income (loss) from discontinued operations, net of taxes
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
|
NET INCOME (LOSS)
|
|
$
|
5,642
|
|
|
$
|
1,381
|
|
|
$
|
(667
|
)
|
|
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
1,877
|
|
|
$
|
8,750
|
|
|
$
|
(2,200
|
)
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Net income (loss)
|
|
$
|
5,642
|
|
|
$
|
1,381
|
|
|
$
|
(667
|
)
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
|
||||||
|
Equity in earnings of subsidiaries
|
|
(6,194
|
)
|
|
(2,246
|
)
|
|
571
|
|
|||
|
Realized investment (gains) losses, net
|
|
98
|
|
|
793
|
|
|
(390
|
)
|
|||
|
Dividends received from subsidiaries
|
|
4,557
|
|
|
2,218
|
|
|
2,483
|
|
|||
|
Property, plant and equipment
|
|
(579
|
)
|
|
0
|
|
|
0
|
|
|||
|
Change in:
|
|
|
|
|
|
|
||||||
|
Due to/from subsidiaries, net
|
|
(493
|
)
|
|
5,718
|
|
|
(1,753
|
)
|
|||
|
Other, operating
|
|
(380
|
)
|
|
647
|
|
|
(418
|
)
|
|||
|
Cash flows from (used in) operating activities
|
|
2,651
|
|
|
8,511
|
|
|
(174
|
)
|
|||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Proceeds from the sale/maturity of:
|
|
|
|
|
|
|
||||||
|
Short-term investments
|
|
13,700
|
|
|
10,207
|
|
|
6,522
|
|
|||
|
Payments for the purchase of:
|
|
|
|
|
|
|
||||||
|
Investment contracts from subsidiaries
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|||
|
Short-term investments
|
|
(13,002
|
)
|
|
(11,394
|
)
|
|
(6,544
|
)
|
|||
|
Capital contributions to subsidiaries
|
|
(2,545
|
)
|
|
(3,065
|
)
|
|
(1,760
|
)
|
|||
|
Returns of capital contributions from subsidiaries
|
|
75
|
|
|
258
|
|
|
524
|
|
|||
|
Loans to subsidiaries, net of maturities
|
|
2,056
|
|
|
925
|
|
|
(22
|
)
|
|||
|
Other, investing
|
|
244
|
|
|
21
|
|
|
32
|
|
|||
|
Cash flows from (used in) investing activities
|
|
528
|
|
|
(3,048
|
)
|
|
(1,249
|
)
|
|||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Cash dividends paid on Common Stock
|
|
(1,117
|
)
|
|
(1,008
|
)
|
|
(828
|
)
|
|||
|
Cash dividends paid on Class B Stock
|
|
0
|
|
|
(19
|
)
|
|
(19
|
)
|
|||
|
Common Stock acquired
|
|
(1,664
|
)
|
|
(999
|
)
|
|
(738
|
)
|
|||
|
Common Stock reissued for exercise of stock options
|
|
209
|
|
|
269
|
|
|
348
|
|
|||
|
Proceeds from the issuance of debt (maturities longer than 90 days)
|
|
1,332
|
|
|
2,063
|
|
|
2,414
|
|
|||
|
Repayments of debt (maturities longer than 90 days)
|
|
(2,404
|
)
|
|
(1,659
|
)
|
|
(3,257
|
)
|
|||
|
Repayments of loans from subsidiaries
|
|
(102
|
)
|
|
(241
|
)
|
|
(102
|
)
|
|||
|
Proceeds from loans payable to subsidiaries
|
|
1,316
|
|
|
558
|
|
|
545
|
|
|||
|
Net change in financing arrangements (maturities of 90 days or less)
|
|
8
|
|
|
(94
|
)
|
|
65
|
|
|||
|
Excess tax benefits from share-based payment arrangements
|
|
3
|
|
|
7
|
|
|
10
|
|
|||
|
Other, financing
|
|
(15
|
)
|
|
(18
|
)
|
|
(45
|
)
|
|||
|
Cash flows from (used in) financing activities
|
|
(2,434
|
)
|
|
(1,141
|
)
|
|
(1,607
|
)
|
|||
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
745
|
|
|
4,322
|
|
|
(3,030
|
)
|
|||
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
8,692
|
|
|
4,370
|
|
|
7,400
|
|
|||
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
9,437
|
|
|
$
|
8,692
|
|
|
$
|
4,370
|
|
|
|
|
|
|
|
|
|
||||||
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
|
|
|
||||||
|
Cash paid during the period for interest
|
|
$
|
1,048
|
|
|
$
|
1,036
|
|
|
$
|
1,070
|
|
|
Cash paid (refunds received) during the period for taxes
|
|
$
|
46
|
|
|
$
|
(1,231
|
)
|
|
$
|
246
|
|
|
|
|
|
|
|
|
|
||||||
|
NON-CASH TRANSACTIONS DURING THE YEAR
|
|
|
|
|
|
|
||||||
|
Non-cash capital contributions to subsidiaries
|
|
$
|
1,453
|
|
|
$
|
100
|
|
|
$
|
1,097
|
|
|
Non-cash dividends from subsidiaries
|
|
$
|
1,335
|
|
|
$
|
650
|
|
|
$
|
942
|
|
|
Treasury Stock shares issued for stock-based compensation programs
|
|
$
|
115
|
|
|
$
|
100
|
|
|
$
|
105
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
|
Maturity
Dates
|
|
Rate(1)
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
($ in millions)
|
||||||
|
Short-term debt:
|
|
|
|
|
|
|
|
||||
|
Commercial Paper(2)
|
|
|
|
|
$
|
80
|
|
|
$
|
97
|
|
|
Current portion of long-term debt
|
|
|
|
|
751
|
|
|
2,222
|
|
||
|
Total short-term debt
|
|
|
|
|
$
|
831
|
|
|
$
|
2,319
|
|
|
Long-term debt:
|
|
|
|
|
|
|
|
||||
|
Fixed rate senior notes
|
2016-2045
|
|
2.30%-7.38%
|
|
$
|
10,093
|
|
|
$
|
10,667
|
|
|
Floating rate senior notes
|
2018-2020
|
|
1.01%-5.00%
|
|
510
|
|
|
510
|
|
||
|
Junior subordinated notes
|
2042-2068
|
|
5.20%-8.88%
|
|
5,884
|
|
|
4,884
|
|
||
|
Total long-term debt
|
|
|
|
|
$
|
16,487
|
|
|
$
|
16,061
|
|
|
(1)
|
Ranges of interest rates are for the year ended December 31,
2015
.
|
|
(2)
|
The weighted average interest rate on outstanding commercial paper was
0.4%
and
0.28%
at December 31,
2015
and
2014
, respectively.
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021 and
thereafter
|
|
Total
|
||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||
|
Long-term debt
|
$
|
971
|
|
|
$
|
830
|
|
|
$
|
1,100
|
|
|
$
|
1,179
|
|
|
$
|
12,407
|
|
|
$
|
16,487
|
|
|
|
|
2015
|
|
2014(1)
|
|
2013
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Prudential Holdings, LLC
|
|
$
|
1,950
|
|
|
$
|
400
|
|
|
$
|
0
|
|
|
Prudential Annuities Life Assurance Corporation
|
|
450
|
|
|
342
|
|
|
284
|
|
|||
|
International Insurance and Investments Holding Companies
|
|
1,818
|
|
|
966
|
|
|
1,642
|
|
|||
|
Prudential Asset Management Holding Company
|
|
266
|
|
|
578
|
|
|
441
|
|
|||
|
Other Holding Companies
|
|
148
|
|
|
190
|
|
|
640
|
|
|||
|
Total
|
|
$
|
4,632
|
|
|
$
|
2,476
|
|
|
$
|
3,007
|
|
|
(1)
|
Amounts for International Insurance and Investments Holding Companies, Prudential Asset Management Holding Company and Other Holding Companies have been revised to correct previously reported amounts of
$526 million
,
$588 million
and
$620 million
, respectively.
|
|
Segment
|
Deferred
Policy
Acquisition
Costs
|
|
Future
Policy
Benefits,
Losses,
Claims,
Expenses
|
|
Unearned
Premiums
|
|
Other
Policy Claims
and Benefits
Payable
|
|
Premiums,
Policy
Charges
and Fee
Income
|
|
Net
Investment
Income
|
|
Benefits,
Claims,
Losses
and
Settlement
Expenses
|
|
Amortization
of DAC
|
|
Other
Operating
Expenses
|
||||||||||||||||||
|
Individual Annuities
|
$
|
4,915
|
|
|
$
|
10,486
|
|
|
$
|
0
|
|
|
$
|
8,720
|
|
|
$
|
2,823
|
|
|
$
|
594
|
|
|
$
|
864
|
|
|
$
|
940
|
|
|
$
|
1,757
|
|
|
Retirement
|
133
|
|
|
51,264
|
|
|
1,835
|
|
|
47,113
|
|
|
6,946
|
|
|
4,110
|
|
|
9,301
|
|
|
66
|
|
|
1,034
|
|
|||||||||
|
Asset Management
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
111
|
|
|
0
|
|
|
19
|
|
|
2,076
|
|
|||||||||
|
U.S. Retirement Solutions and Investment Management division
|
5,048
|
|
|
61,750
|
|
|
1,835
|
|
|
55,833
|
|
|
9,769
|
|
|
4,815
|
|
|
10,165
|
|
|
1,025
|
|
|
4,867
|
|
|||||||||
|
Individual Life
|
4,883
|
|
|
10,102
|
|
|
0
|
|
|
23,425
|
|
|
2,944
|
|
|
1,679
|
|
|
2,961
|
|
|
133
|
|
|
1,508
|
|
|||||||||
|
Group Insurance
|
181
|
|
|
4,745
|
|
|
206
|
|
|
8,569
|
|
|
4,468
|
|
|
573
|
|
|
4,129
|
|
|
6
|
|
|
837
|
|
|||||||||
|
U.S. Individual Life and Group Insurance division
|
5,064
|
|
|
14,847
|
|
|
206
|
|
|
31,994
|
|
|
7,412
|
|
|
2,252
|
|
|
7,090
|
|
|
139
|
|
|
2,345
|
|
|||||||||
|
International Insurance
|
6,554
|
|
|
91,357
|
|
|
574
|
|
|
43,828
|
|
|
14,311
|
|
|
4,383
|
|
|
12,809
|
|
|
987
|
|
|
2,396
|
|
|||||||||
|
International Insurance division
|
6,554
|
|
|
91,357
|
|
|
574
|
|
|
43,828
|
|
|
14,311
|
|
|
4,383
|
|
|
12,809
|
|
|
987
|
|
|
2,396
|
|
|||||||||
|
Corporate and Other operations
|
(321
|
)
|
|
4,276
|
|
|
0
|
|
|
3
|
|
|
332
|
|
|
726
|
|
|
624
|
|
|
(68
|
)
|
|
869
|
|
|||||||||
|
Total PFI excluding Closed Block division
|
16,345
|
|
|
172,230
|
|
|
2,615
|
|
|
131,658
|
|
|
31,824
|
|
|
12,176
|
|
|
30,688
|
|
|
2,083
|
|
|
10,477
|
|
|||||||||
|
Closed Block division
|
373
|
|
|
49,539
|
|
|
0
|
|
|
10,704
|
|
|
2,669
|
|
|
2,653
|
|
|
5,630
|
|
|
37
|
|
|
435
|
|
|||||||||
|
Total
|
$
|
16,718
|
|
|
$
|
221,769
|
|
|
$
|
2,615
|
|
|
$
|
142,362
|
|
|
$
|
34,493
|
|
|
$
|
14,829
|
|
|
$
|
36,318
|
|
|
$
|
2,120
|
|
|
$
|
10,912
|
|
|
Segment
|
Deferred
Policy
Acquisition
Costs
|
|
Future
Policy
Benefits,
Losses,
Claims
Expenses
|
|
Unearned
Premiums
|
|
Other Policy
Claims and
Benefits
Payable
|
|
Premiums,
Policy
Charges
and
Fee Income
|
|
Net
Investment
Income
|
|
Benefits,
Claims,
Losses
and
Settlement
Expenses
|
|
Amortization of
DAC
|
|
Other
Operating
Expenses
|
||||||||||||||||||
|
Individual Annuities
|
$
|
5,376
|
|
|
$
|
10,220
|
|
|
$
|
0
|
|
|
$
|
8,693
|
|
|
$
|
2,785
|
|
|
$
|
615
|
|
|
$
|
1,017
|
|
|
$
|
603
|
|
|
$
|
1,791
|
|
|
Retirement
|
117
|
|
|
49,237
|
|
|
1,848
|
|
|
47,465
|
|
|
7,013
|
|
|
4,238
|
|
|
9,918
|
|
|
33
|
|
|
1,020
|
|
|||||||||
|
Asset Management
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
120
|
|
|
0
|
|
|
20
|
|
|
1,976
|
|
|||||||||
|
U.S. Retirement Solutions and Investment Management division
|
5,493
|
|
|
59,457
|
|
|
1,848
|
|
|
56,158
|
|
|
9,798
|
|
|
4,973
|
|
|
10,935
|
|
|
656
|
|
|
4,787
|
|
|||||||||
|
Individual Life
|
4,056
|
|
|
9,224
|
|
|
0
|
|
|
21,463
|
|
|
3,073
|
|
|
1,610
|
|
|
3,040
|
|
|
368
|
|
|
1,745
|
|
|||||||||
|
Group Insurance
|
177
|
|
|
4,925
|
|
|
201
|
|
|
8,342
|
|
|
4,626
|
|
|
610
|
|
|
4,468
|
|
|
8
|
|
|
863
|
|
|||||||||
|
U.S. Individual Life and Group Insurance division
|
4,233
|
|
|
14,149
|
|
|
201
|
|
|
29,805
|
|
|
7,699
|
|
|
2,220
|
|
|
7,508
|
|
|
376
|
|
|
2,608
|
|
|||||||||
|
International Insurance
|
6,156
|
|
|
87,744
|
|
|
543
|
|
|
44,977
|
|
|
14,961
|
|
|
4,434
|
|
|
13,432
|
|
|
962
|
|
|
2,608
|
|
|||||||||
|
International Insurance division
|
6,156
|
|
|
87,744
|
|
|
543
|
|
|
44,977
|
|
|
14,961
|
|
|
4,434
|
|
|
13,432
|
|
|
962
|
|
|
2,608
|
|
|||||||||
|
Corporate and Other operations
|
(321
|
)
|
|
3,961
|
|
|
0
|
|
|
18
|
|
|
310
|
|
|
622
|
|
|
594
|
|
|
(58
|
)
|
|
773
|
|
|||||||||
|
Total Financial Services Businesses
|
15,561
|
|
|
165,311
|
|
|
2,592
|
|
|
130,958
|
|
|
32,768
|
|
|
12,249
|
|
|
32,469
|
|
|
1,936
|
|
|
10,776
|
|
|||||||||
|
Closed Block Business
|
410
|
|
|
49,863
|
|
|
0
|
|
|
12,853
|
|
|
2,704
|
|
|
3,007
|
|
|
6,097
|
|
|
37
|
|
|
1,031
|
|
|||||||||
|
Total
|
$
|
15,971
|
|
|
$
|
215,174
|
|
|
$
|
2,592
|
|
|
$
|
143,811
|
|
|
$
|
35,472
|
|
|
$
|
15,256
|
|
|
$
|
38,566
|
|
|
$
|
1,973
|
|
|
$
|
11,807
|
|
|
Segment
|
Deferred
Policy
Acquisition
Costs
|
|
Future
Policy
Benefits,
Losses,
Claims,
Expenses
|
|
Unearned
Premiums
|
|
Other
Policy Claims
and Benefits
Payable
|
|
Premiums,
Policy
Charges
and Fee
Income
|
|
Net
Investment
Income
|
|
Benefits,
Claims,
Losses
and
Settlement
Expenses
|
|
Amortization of
DAC
|
|
Other
Operating
Expenses
|
||||||||||||||||||
|
Individual Annuities
|
$
|
5,490
|
|
|
$
|
2,341
|
|
|
$
|
0
|
|
|
$
|
9,035
|
|
|
$
|
2,541
|
|
|
$
|
685
|
|
|
$
|
(30
|
)
|
|
$
|
(956
|
)
|
|
$
|
1,661
|
|
|
Retirement
|
225
|
|
|
45,241
|
|
|
1,939
|
|
|
46,475
|
|
|
1,107
|
|
|
4,084
|
|
|
3,294
|
|
|
15
|
|
|
984
|
|
|||||||||
|
Asset Management
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
87
|
|
|
0
|
|
|
25
|
|
|
1,826
|
|
|||||||||
|
U.S. Retirement Solutions and Investment Management division
|
5,715
|
|
|
47,582
|
|
|
1,939
|
|
|
55,510
|
|
|
3,648
|
|
|
4,856
|
|
|
3,264
|
|
|
(916
|
)
|
|
4,471
|
|
|||||||||
|
Individual Life
|
4,112
|
|
|
7,407
|
|
|
0
|
|
|
20,746
|
|
|
2,660
|
|
|
1,403
|
|
|
2,238
|
|
|
95
|
|
|
1,363
|
|
|||||||||
|
Group Insurance
|
183
|
|
|
4,921
|
|
|
193
|
|
|
8,179
|
|
|
4,813
|
|
|
581
|
|
|
4,535
|
|
|
10
|
|
|
820
|
|
|||||||||
|
U.S. Individual Life and Group Insurance division
|
4,295
|
|
|
12,328
|
|
|
193
|
|
|
28,925
|
|
|
7,473
|
|
|
1,984
|
|
|
6,773
|
|
|
105
|
|
|
2,183
|
|
|||||||||
|
International Insurance
|
6,407
|
|
|
90,641
|
|
|
504
|
|
|
46,948
|
|
|
17,482
|
|
|
4,291
|
|
|
16,057
|
|
|
998
|
|
|
2,782
|
|
|||||||||
|
International Insurance division
|
6,407
|
|
|
90,641
|
|
|
504
|
|
|
46,948
|
|
|
17,482
|
|
|
4,291
|
|
|
16,057
|
|
|
998
|
|
|
2,782
|
|
|||||||||
|
Corporate and Other
|
(316
|
)
|
|
3,414
|
|
|
0
|
|
|
12
|
|
|
321
|
|
|
582
|
|
|
420
|
|
|
16
|
|
|
1,018
|
|
|||||||||
|
Total Financial Services Businesses
|
16,101
|
|
|
153,965
|
|
|
2,636
|
|
|
131,395
|
|
|
28,924
|
|
|
11,713
|
|
|
26,514
|
|
|
203
|
|
|
10,454
|
|
|||||||||
|
Closed Block Business
|
411
|
|
|
50,258
|
|
|
0
|
|
|
10,777
|
|
|
2,728
|
|
|
3,016
|
|
|
5,380
|
|
|
37
|
|
|
557
|
|
|||||||||
|
Total
|
$
|
16,512
|
|
|
$
|
204,223
|
|
|
$
|
2,636
|
|
|
$
|
142,172
|
|
|
$
|
31,652
|
|
|
$
|
14,729
|
|
|
$
|
31,894
|
|
|
$
|
240
|
|
|
$
|
11,011
|
|
|
|
|
Gross
Amount
|
|
Ceded to
Other
Companies
|
|
Assumed
from
Other
Companies
|
|
Net
Amount
|
|
Percentage
of Amount
Assumed
to Net
|
|||||||||
|
2015
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Life Insurance Face Amount In Force
|
|
$
|
3,457,711
|
|
|
$
|
642,525
|
|
|
$
|
235,418
|
|
|
$
|
3,050,604
|
|
|
7.7
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Life Insurance
|
|
$
|
25,346
|
|
|
$
|
1,573
|
|
|
$
|
2,147
|
|
|
$
|
25,920
|
|
|
8.3
|
%
|
|
Accident and Health Insurance
|
|
2,650
|
|
|
49
|
|
|
0
|
|
|
2,601
|
|
|
0.0
|
|
||||
|
Total Premiums
|
|
$
|
27,996
|
|
|
$
|
1,622
|
|
|
$
|
2,147
|
|
|
$
|
28,521
|
|
|
7.5
|
%
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Life Insurance Face Amount In Force
|
|
$
|
3,492,396
|
|
|
$
|
633,501
|
|
|
$
|
245,674
|
|
|
$
|
3,104,569
|
|
|
7.9
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Life Insurance
|
|
$
|
26,638
|
|
|
$
|
1,451
|
|
|
$
|
1,134
|
|
|
$
|
26,321
|
|
|
4.3
|
%
|
|
Accident and Health Insurance
|
|
3,028
|
|
|
56
|
|
|
0
|
|
|
2,972
|
|
|
0.0
|
|
||||
|
Total Premiums
|
|
$
|
29,666
|
|
|
$
|
1,507
|
|
|
$
|
1,134
|
|
|
$
|
29,293
|
|
|
3.9
|
%
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Life Insurance Face Amount In Force
|
|
$
|
3,534,834
|
|
|
$
|
521,189
|
|
|
$
|
185,479
|
|
|
$
|
3,199,124
|
|
|
5.8
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Life Insurance
|
|
$
|
24,068
|
|
|
$
|
1,408
|
|
|
$
|
272
|
|
|
$
|
22,932
|
|
|
1.2
|
%
|
|
Accident and Health Insurance
|
|
3,376
|
|
|
71
|
|
|
0
|
|
|
3,305
|
|
|
0.0
|
|
||||
|
Total Premiums
|
|
$
|
27,444
|
|
|
$
|
1,479
|
|
|
$
|
272
|
|
|
$
|
26,237
|
|
|
1.0
|
%
|
|
|
|
|
Additions
|
|
|
|
|
|
|
||||||||||||||
|
Description
|
Balance at
Beginning
of Period
|
|
Charged to
Costs and
Expenses
|
|
Other
|
|
Deductions
|
|
Effect of
Foreign
Exchange Rates
|
|
Balance
at End
of Period
|
||||||||||||
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for losses on commercial mortgage and other loans
|
$
|
119
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
7
|
|
(1)
|
$
|
0
|
|
|
$
|
112
|
|
|
Valuation allowance on deferred tax asset
|
277
|
|
|
38
|
|
|
(3
|
)
|
|
178
|
|
|
(1
|
)
|
|
133
|
|
||||||
|
|
$
|
396
|
|
|
$
|
38
|
|
|
$
|
(3
|
)
|
|
$
|
185
|
|
|
$
|
(1
|
)
|
|
$
|
245
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for losses on commercial mortgage and other loans
|
$
|
216
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
96
|
|
(1)
|
$
|
(1
|
)
|
|
$
|
119
|
|
|
Valuation allowance on deferred tax asset
|
235
|
|
|
44
|
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
277
|
|
||||||
|
|
$
|
451
|
|
|
$
|
44
|
|
|
$
|
0
|
|
|
$
|
96
|
|
|
$
|
(3
|
)
|
|
$
|
396
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for losses on commercial mortgage and other loans
|
$
|
269
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
48
|
|
(1)
|
$
|
(5
|
)
|
|
$
|
216
|
|
|
Valuation allowance on deferred tax asset
|
280
|
|
|
(42
|
)
|
|
(1
|
)
|
|
0
|
|
|
(2
|
)
|
|
235
|
|
||||||
|
|
$
|
549
|
|
|
$
|
(42
|
)
|
|
$
|
(1
|
)
|
|
$
|
48
|
|
|
$
|
(7
|
)
|
|
$
|
451
|
|
|
(1)
|
Represents net release of allowance for losses and charge-offs, net of recoveries.
|
|
Prudential Financial, Inc.
|
||
|
|
|
|
|
By:
|
|
/
S
/ R
OBERT
M. F
ALZON
|
|
Name:
|
|
Robert M. Falzon
|
|
Title:
|
|
Executive Vice President
|
|
Name
|
|
Title
|
|
/
S
/ J
OHN
R. S
TRANGFELD
, J
R
.
|
|
Chief Executive Officer,
|
|
John R. Strangfeld, Jr.
|
|
President and Director
|
|
|
|
|
|
/
S
/ R
OBERT
M. F
ALZON
|
|
Executive Vice President and Chief Financial Officer
|
|
Robert M. Falzon
|
|
(Principal Financial Officer)
|
|
|
|
|
|
/
S
/ R
OBERT
D. A
XEL
|
|
Senior Vice President and
|
|
Robert D. Axel
|
|
Principal Accounting Officer
|
|
|
|
|
|
T
HOMAS
J. B
ALTIMORE
, J
R
.*
|
|
Director
|
|
Thomas J. Baltimore, Jr.
|
|
|
|
|
|
|
|
G
ORDON
M. B
ETHUNE
*
|
|
Director
|
|
Gordon M. Bethune
|
|
|
|
|
|
|
|
G
ILBERT
F. C
ASELLAS
*
|
|
Director
|
|
Gilbert F. Casellas
|
|
|
|
|
|
|
|
J
AMES
G. C
ULLEN
*
|
|
Director
|
|
James G. Cullen
|
|
|
|
|
|
|
|
M
ARK
B. G
RIER
*
|
|
Director
|
|
Mark B. Grier
|
|
|
|
|
|
|
|
C
ONSTANCE
J. H
ORNER
*
|
|
Director
|
|
Constance J. Horner
|
|
|
|
|
|
|
|
M
ARTINA
H
UND
-M
EJEAN
*
|
|
Director
|
|
Martina Hund-Mejean
|
|
|
|
|
|
|
|
K
ARL
J. K
RAPEK
*
|
|
Director
|
|
Karl J. Krapek
|
|
|
|
|
|
|
|
S
ANDRA
P
IANALTO
*
|
|
Director
|
|
Sandra Pianalto
|
|
|
|
|
|
|
|
C
HRISTINE
A. P
OON
*
|
|
Director
|
|
Christine A. Poon
|
|
|
|
|
|
|
|
D
OUGLAS
A. S
COVANNER
*
|
|
Director
|
|
Douglas A. Scovanner
|
|
|
|
By:*
|
/
S
/ R
OBERT
M. F
ALZON
|
|
|
|
Attorney-in-fact
|
|
|
2.1
|
|
Plan of Reorganization. Incorporated by reference to Exhibit 2.1 to the Registrant’s Registration Statement on Form S-1 (No. 333-58524) (the “Registration Statement”).
|
|
|
|
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation of Prudential Financial, Inc. Incorporated by reference to Exhibit 3.1 to the Registrant’s January 22, 2015 Current Report on Form 8-K.
|
|
|
|
|
|
3.2
|
|
Amended and Restated By-laws of Prudential Financial, Inc. Incorporated by reference to Exhibit 3.1 to the Registrant’s March 10, 2015 Current Report on Form 8-K.
|
|
|
|
|
|
4.1
|
|
Form of certificate for the Common Stock of Prudential Financial, Inc., par value $.01 per share. Incorporated by reference to Exhibit 4.1 to the Registration Statement.
|
|
|
|
|
|
4.2
|
|
Upon the request of the Securities and Exchange Commission, the Registrant will furnish copies of all instruments defining the rights of holders of long-term debt of the Registrant.
|
|
|
|
|
|
10.1
|
|
Amended and Restated Credit Agreement dated as of April 14, 2015 among Prudential Financial, Inc., Prudential Funding, LLC, as Borrowers, The Prudential Insurance Company of America, JP Morgan, as Administrative Agent and Several L/C Agent, and the lenders party thereto. Incorporated by reference to Exhibit 10.1 to the Registrant’s April 17, 2015 Current Report on Form 8-K.
|
|
|
|
|
|
10.2
|
|
Support Agreement between The Prudential Insurance Company of America and Prudential Funding Corporation, dated as of March 18, 1982. Incorporated by reference to Exhibit 10.1 to the Registration Statement.
|
|
|
|
|
|
10.3
|
|
The Prudential Insurance Company of America Deferred Compensation Plan (as amended and restated effective as of December 1, 2015).*
|
|
|
|
|
|
10.4
|
|
The Pension Plan for Non-Employee Directors of The Prudential Insurance Company of America. Incorporated by reference to Exhibit 10.6 to the Registration Statement.*
|
|
|
|
|
|
10.5
|
|
Prudential Financial, Inc. Executive Change of Control Severance Program (amended and restated effective as of November 11, 2008). Incorporated by reference to Exhibit 10.13 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.6
|
|
Prudential Financial Executive Officer Severance Policy (adopted October 10, 2006). Incorporated by reference to Exhibit 10.2 to the Registrant’s October 11, 2006 Current Report on Form 8-K.*
|
|
|
|
|
|
10.7
|
|
Prudential Financial, Inc. Omnibus Incentive Plan (amended and restated effective November 11, 2008). Incorporated by reference to Exhibit 10.15 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.8
|
|
First Amendment to the Prudential Financial, Inc. Omnibus Incentive Plan, effective February 9, 2010. Incorporated by reference to Exhibit 10.2 to the Registrant’s February 11, 2010 Current Report on Form 8-K.*
|
|
|
|
|
|
10.9
|
|
Form of 2006 Grant Acceptance Agreement relating to stock option grants to executive officers under the Prudential Financial, Inc. Omnibus Incentive Plan. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 16, 2006 Current Report on Form 8-K.*
|
|
|
|
|
|
10.10
|
|
Form of 2007 Grant Acceptance Agreement relating to stock option grants to the chairman, principal executive officer, principal financial officer and other executive officers under the Prudential Financial, Inc. Omnibus Incentive Plan. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 13, 2007 Current Report on Form 8-K.*
|
|
10.11
|
|
Form of Grant Acceptance Agreement relating to January 18, 2008 stock option grants to John R. Strangfeld, Mark B. Grier, Bernard B. Winograd and Edward P. Baird under the Prudential Financial, Inc. Omnibus Incentive Plan. Incorporated by reference to Exhibit 10.1 to the Registrant’s January 23, 2008 Current Report on Form 8-K.*
|
|
|
|
|
|
10.12
|
|
Form of 2008 Grant Acceptance Agreement relating to stock option grants to the chairman, principal executive officer, principal financial officer and other executive officers under the Prudential Financial, Inc. Omnibus Incentive Plan. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 12, 2008 Current Report on Form 8-K.*
|
|
|
|
|
|
10.13
|
|
Form of Terms and Conditions of the 2009 Long-Term Incentive Program relating to stock option grants and restricted stock unit awards to the chairman and principal executive officer, principal financial officer and other executive officers under the Prudential Financial, Inc. Omnibus Incentive Plan. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 10, 2009 Current Report on Form 8-K.*
|
|
|
|
|
|
10.14
|
|
Form of Terms and Conditions relating to awards in 2010 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units under the 2010 Mid-Term Incentive Program and of stock options, performance shares and performance units under the 2010 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.3 to the Registrant’s February 11, 2010 Current Report on Form 8-K.*
|
|
|
|
|
|
10.15
|
|
Form of Terms and Conditions relating to awards in 2011 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units under the 2011 Mid-Term Incentive Program and of stock options, performance shares and performance units under the 2011 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 8, 2011 Current Report on Form 8-K.*
|
|
|
|
|
|
10.16
|
|
Revised Form of Terms and Conditions relating to awards in 2012 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units, stock options, performance shares and performance units under the 2012 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.1 to the Registrant’s June 11, 2013 Current Report on Form 8-K.*
|
|
|
|
|
|
10.17
|
|
Revised Form of Terms and Conditions relating to awards in 2013 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units, stock options, performance shares and performance units under the 2013 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.2 to the Registrant’s June 11, 2013 Current Report on Form 8-K.*
|
|
|
|
|
|
10.18
|
|
Revised Form of Terms and Conditions relating to awards in 2014 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units, stock options, performance shares and performance units under the 2014 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 18, 2014 Current Report on Form 8-K.*
|
|
|
|
|
|
10.19
|
|
Form of Terms and Conditions relating to awards in 2015 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units, stock options, performance shares and performance units under the 2015 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.3 to the Registrant’s February 10, 2015 Current Report on Form 8-K.*
|
|
|
|
|
|
10.20
|
|
Form of Terms and Conditions relating to awards in 2016 under the Prudential Financial, Inc. Omnibus Incentive Plan to the chairman, principal executive officer, principal financial officer and other executive officers of book value units, stock options, performance shares and performance units under the 2016 Long-Term Incentive Program. Incorporated by reference to Exhibit 10.2 to the Registrant’s February 9, 2016 Current Report on Form 8-K.*
|
|
|
|
|
|
10.21
|
|
Prudential Financial, Inc. Clawback Policy effective February 10, 2015. Incorporated by reference to Exhibit 10.1 to the Registrant’s February 10, 2015 Current Report on Form 8-K.*
|
|
|
|
|
|
10.22
|
|
Annual Incentive Payment Criteria for Executive Officers (Effective for awards in 2016 in respect of 2015 and for subsequent years). Incorporated by reference to Exhibit 10.1 to the Registrant’s February 9, 2016 Current Report on Form 8-K.*
|
|
|
|
|
|
10.23
|
|
Prudential Financial, Inc. Non-Employee Director Compensation Summary effective February 10, 2015. Incorporated by reference to Exhibit 10.21 to the Registrant’s December 31, 2014 Annual Report on Form 10-K.*
|
|
10.24
|
|
The Prudential Supplemental Retirement Plan (amended and restated effective as of January 1, 2009). Incorporated by reference to Exhibit 10.35 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.25
|
|
First Amendment to The Prudential Supplemental Retirement Plan, effective June 30, 2012. Incorporated by reference to Exhibit 10.1 to the Registrant’s June 30, 2012 Quarterly Report on Form 10-Q.*
|
|
|
|
|
|
10.26
|
|
Second Amendment to The Prudential Supplemental Retirement Plan, effective December 6, 2013. Incorporated by reference to Exhibit 10.26 to the Registrant’s December 31, 2013 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.27
|
|
Prudential Supplemental Employee Savings Plan, as amended and restated effective as of January 1, 2006. Incorporated by reference to Exhibit 10.32 to the Registrant’s December 31, 2006 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.28
|
|
First Amendment to the Prudential Supplemental Employee Savings Plan, effective as of January 1, 2008. Incorporated by reference to Exhibit 10.2 to the Registrant’s March 31, 2008 Quarterly Report on Form 10-Q.*
|
|
|
|
|
|
10.29
|
|
Second Amendment to the Prudential Supplemental Employee Savings Plan, dated December 23, 2008. Incorporated by reference to Exhibit 10.38 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.30
|
|
The Prudential Insurance Supplemental Executive Retirement Plan (amended and restated effective as of January 1, 2009). Incorporated by reference to Exhibit 10.39 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
|
|
|
|
|
|
10.31
|
|
First Amendment to the Prudential Insurance Supplemental Executive Retirement Plan, effective as of January 1, 2010. Incorporated by reference to Exhibit 10.35 to the Registrant’s December 31, 2010 Annual Report on Form 10-K.*
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10.32
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Prudential Financial, Inc. Compensation Plan (amended and restated effective as of November 11, 2008). Incorporated by reference to Exhibit 10.41 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
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10.33
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The Prudential Deferred Compensation Plan for Non-Employee Directors (as amended through October 9, 2007). Incorporated by reference to Exhibit 10.3 to the Registrant’s September 30, 2007 Quarterly Report on Form 10-Q.*
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10.34
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First Amendment to The Prudential Deferred Compensation Plan for Non-Employee Directors, dated November 20, 2008. Incorporated by reference to Exhibit 10.43 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
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10.35
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Prudential Financial, Inc. 2011 Deferred Compensation Plan for Non-Employee Directors (effective as of January 1, 2011). Incorporated by reference to Exhibit 10.39 to the Registrant’s December 31, 2010 Annual Report on Form 10-K.*
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10.36
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Amendment No. 1 to the Prudential Financial, Inc. 2011 Deferred Compensation Plan for Non-Employee Directors. Incorporated by reference to Exhibit 10.1 to the Registrant’s September 30, 2015 Quarterly Report on Form 10-Q.*
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10.37
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Prudential Securities Incorporated Supplemental Retirement Plan for Executives (amended and restated effective January 1, 2009). Incorporated by reference to Exhibit 10.44 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
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10.38
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PFI Supplemental Executive Retirement Plan (amended and restated effective as of January 1, 2009). Incorporated by reference to Exhibit 10.45 to the Registrant’s December 31, 2008 Annual Report on Form 10-K.*
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10.39
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First Amendment to the PFI Supplemental Executive Retirement Plan, effective as of January 1, 2010. Incorporated by reference to Exhibit 10.42 to the Registrant’s December 31, 2010 Annual Report on Form 10-K.*
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10.40
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Prudential Financial, Inc. Nonqualified Retirement Plan Trust Agreement between Prudential Financial, Inc. and Wachovia Bank, N.A. Incorporated by reference to Exhibit 10.1 to the Registrant’s June 30, 2007 Quarterly Report on Form 10-Q.*
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10.41
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The Prudential Severance Plan for Senior Executives (amended and restated effective as of November 1, 2011). Incorporated by reference to Exhibit 10.41 to the Registrant’s December 31, 2011 Annual Report on Form 10-K.*
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10.42
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The Prudential Severance Plan for Executives (amended and restated effective as of November 1, 2011). Incorporated by reference to Exhibit 10.42 to the Registrant’s December 31, 2011 Annual Report on Form 10-K.*
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10.43
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The Prudential Severance Plan (amended and restated effective as of November 1, 2011). Incorporated by reference to Exhibit 10.43 to the Registrant’s December 31, 2011 Annual Report on Form 10-K.*
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10.44
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First Amendment to the Prudential Severance Plan, the Prudential Severance Plan for Executives, and the Prudential Severance Plan for Senior Executives, dated December 11, 2012. Incorporated by reference to Exhibit 10.47 to the Registrant’s December 31, 2012 Annual Report on Form 10-K.*
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10.45
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2014 Prudential Financial, Inc. Leveraging Opportunities Program Long-Term Incentive Award Plan. Incorporated by reference to Exhibit 10.44 to the Registrant’s December 31, 2013 Annual Report on Form 10-K.*
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12.1
|
|
Statement of Ratio of Earnings to Fixed Charges.
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21.1
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Subsidiaries of Prudential Financial, Inc.
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23.1
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Consent of PricewaterhouseCoopers LLP.
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24.1
|
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Powers of Attorney.
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31.1
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Section 302 Certification of the Chief Executive Officer.
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31.2
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Section 302 Certification of the Chief Financial Officer.
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32.1
|
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Section 906 Certification of the Chief Executive Officer.
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32.2
|
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Section 906 Certification of the Chief Financial Officer.
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101.INS—XBRL
|
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Instance Document.
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101.SCH—XBRL
|
|
Taxonomy Extension Schema Document.
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101.CAL—XBRL
|
|
Taxonomy Extension Calculation Linkbase Document.
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101.LAB—XBRL
|
|
Taxonomy Extension Label Linkbase Document.
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101.PRE—XBRL
|
|
Taxonomy Extension Presentation Linkbase Document.
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101.DEF—XBRL
|
|
Taxonomy Extension Definition Linkbase Document.
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*
|
This exhibit is a management contract or compensatory plan or arrangement.
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|