• | Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”); |
• | Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and |
• | Other revenues are adjusted for settlements of foreign currency earnings hedges. |
• | Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); |
• | Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; |
• | Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; |
• | Amortization of negative VOBA excludes amounts related to Market Value Adjustments; |
• | Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and |
• | Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs. |
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Retail | Group, Voluntary & Worksite Benefits | Corporate Benefit Funding | Latin America | Total | Asia | EMEA | Corporate & Other | Total | Adjustments | Total Consolidated | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 6,528 | $ | 15,250 | $ | 2,859 | $ | 2,824 | $ | 27,461 | $ | 7,801 | $ | 2,297 | $ | 116 | $ | 37,675 | $ | (1 | ) | $ | 37,674 | |||||||||||||||||||||
Universal life and investment-type product policy fees | 4,912 | 688 | 247 | 991 | 6,838 | 1,722 | 386 | 139 | 9,085 | 366 | 9,451 | |||||||||||||||||||||||||||||||||
Net investment income | 7,898 | 1,856 | 5,790 | 1,246 | 16,790 | 2,915 | 498 | 381 | 20,584 | 1,648 | 22,232 | |||||||||||||||||||||||||||||||||
Other revenues | 1,018 | 418 | 278 | 23 | 1,737 | 92 | 97 | 28 | 1,954 | (34 | ) | 1,920 | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | 161 | 161 | |||||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | (3,239 | ) | (3,239 | ) | |||||||||||||||||||||||||||||||
Total revenues | 20,356 | 18,212 | 9,174 | 5,084 | 52,826 | 12,530 | 3,278 | 664 | 69,298 | (1,099 | ) | 68,199 | ||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 9,028 | 14,227 | 5,402 | 2,454 | 31,111 | 5,755 | 1,039 | 63 | 37,968 | 1,398 | 39,366 | |||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 2,331 | 155 | 1,233 | 417 | 4,136 | 1,690 | 147 | 42 | 6,015 | 2,164 | 8,179 | |||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Capitalization of DAC | (1,309 | ) | (141 | ) | (27 | ) | (424 | ) | (1,901 | ) | (2,143 | ) | (714 | ) | (28 | ) | (4,786 | ) | — | (4,786 | ) | |||||||||||||||||||||||
Amortization of DAC and VOBA | 1,384 | 140 | 23 | 310 | 1,857 | 1,542 | 683 | 1 | 4,083 | (533 | ) | 3,550 | ||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | (2 | ) | (2 | ) | (427 | ) | (95 | ) | — | (524 | ) | (55 | ) | (579 | ) | ||||||||||||||||||||||||||
Interest expense on debt | — | 1 | 9 | — | 10 | — | 1 | 1,148 | 1,159 | 123 | 1,282 | |||||||||||||||||||||||||||||||||
Other expenses | 5,084 | 2,380 | 523 | 1,612 | 9,599 | 4,312 | 1,810 | 894 | 16,615 | 520 | 17,135 | |||||||||||||||||||||||||||||||||
Total expenses | 16,518 | 16,762 | 7,163 | 4,367 | 44,810 | 10,729 | 2,871 | 2,120 | 60,530 | 3,617 | 64,147 | |||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 1,314 | 488 | 704 | 143 | 2,649 | 557 | 78 | (925 | ) | 2,359 | (1,698 | ) | 661 | |||||||||||||||||||||||||||||||
Operating earnings | $ | 2,524 | $ | 962 | $ | 1,307 | $ | 574 | $ | 5,367 | $ | 1,244 | $ | 329 | $ | (531 | ) | 6,409 | ||||||||||||||||||||||||||
Adjustments to: | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | (1,099 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total expenses | (3,617 | ) | ||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 1,698 | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 3,391 | $ | 3,391 |
At December 31, 2013 | Retail | Group, Voluntary & Worksite Benefits | Corporate Benefit Funding | Latin America | Asia (1) | EMEA | Corporate & Other | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total assets | $ | 349,516 | $ | 43,404 | $ | 220,612 | $ | 69,874 | $ | 119,717 | $ | 33,382 | $ | 48,791 | $ | 885,296 | ||||||||||||||||
Separate account assets | $ | 172,382 | $ | 644 | $ | 77,023 | $ | 49,660 | $ | 8,996 | $ | 8,496 | $ | — | $ | 317,201 | ||||||||||||||||
Separate account liabilities | $ | 172,382 | $ | 644 | $ | 77,023 | $ | 49,660 | $ | 8,996 | $ | 8,496 | $ | — | $ | 317,201 |
(1) | Total assets includes $98.4 billion of assets from the Japan operations which represents 11% of total consolidated assets. |
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | Retail | Group, Voluntary & Worksite Benefits | Corporate Benefit Funding | Latin America | Total | Asia | EMEA | Corporate & Other | Total | Adjustments | Total Consolidated | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 6,532 | $ | 14,794 | $ | 3,237 | $ | 2,578 | $ | 27,141 | $ | 8,344 | $ | 2,370 | $ | 56 | $ | 37,911 | $ | 64 | $ | 37,975 | ||||||||||||||||||||||
Universal life and investment-type product policy fees | 4,561 | 662 | 225 | 785 | 6,233 | 1,491 | 333 | 155 | 8,212 | 344 | 8,556 | |||||||||||||||||||||||||||||||||
Net investment income | 7,670 | 1,768 | 5,703 | 1,198 | 16,339 | 2,895 | 535 | 703 | 20,472 | 1,512 | 21,984 | |||||||||||||||||||||||||||||||||
Other revenues | 879 | 422 | 259 | 16 | 1,576 | 26 | 121 | 33 | 1,756 | 150 | 1,906 | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | (352 | ) | (352 | ) | |||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | (1,919 | ) | (1,919 | ) | |||||||||||||||||||||||||||||||
Total revenues | 19,642 | 17,646 | 9,424 | 4,577 | 51,289 | 12,756 | 3,359 | 947 | 68,351 | (201 | ) | 68,150 | ||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 9,010 | 13,691 | 5,704 | 2,231 | 30,636 | 5,819 | 1,196 | 119 | 37,770 | 1,586 | 39,356 | |||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 2,375 | 167 | 1,358 | 393 | 4,293 | 1,784 | 126 | 39 | 6,242 | 1,487 | 7,729 | |||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | — | — | — | 1,868 | 1,868 | |||||||||||||||||||||||||||||||||
Capitalization of DAC | (1,753 | ) | (138 | ) | (29 | ) | (353 | ) | (2,273 | ) | (2,288 | ) | (723 | ) | — | (5,284 | ) | (5 | ) | (5,289 | ) | |||||||||||||||||||||||
Amortization of DAC and VOBA | 1,607 | 133 | 22 | 224 | 1,986 | 1,563 | 626 | 2 | 4,177 | 22 | 4,199 | |||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | (5 | ) | (5 | ) | (456 | ) | (94 | ) | — | (555 | ) | (67 | ) | (622 | ) | ||||||||||||||||||||||||||
Interest expense on debt | — | 1 | 8 | (1 | ) | 8 | 5 | 1 | 1,176 | 1,190 | 166 | 1,356 | ||||||||||||||||||||||||||||||||
Other expenses | 5,369 | 2,351 | 478 | 1,375 | 9,573 | 4,738 | 1,810 | 559 | 16,680 | 1,431 | 18,111 | |||||||||||||||||||||||||||||||||
Total expenses | 16,608 | 16,205 | 7,541 | 3,864 | 44,218 | 11,165 | 2,942 | 1,895 | 60,220 | 6,488 | 66,708 | |||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 1,032 | 481 | 659 | 130 | 2,302 | 554 | 146 | (679 | ) | 2,323 | (2,195 | ) | 128 | |||||||||||||||||||||||||||||||
Operating earnings | $ | 2,002 | $ | 960 | $ | 1,224 | $ | 583 | $ | 4,769 | $ | 1,037 | $ | 271 | $ | (269 | ) | 5,808 | ||||||||||||||||||||||||||
Adjustments to: | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | (201 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total expenses | (6,488 | ) | ||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 2,195 | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 1,314 | $ | 1,314 |
At December 31, 2012 | Retail | Group, Voluntary & Worksite Benefits | Corporate Benefit Funding | Latin America | Asia (1) | EMEA | Corporate & Other | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total assets | $ | 332,387 | $ | 44,138 | $ | 217,352 | $ | 23,272 | $ | 131,138 | $ | 23,474 | $ | 65,020 | $ | 836,781 | ||||||||||||||||
Separate account assets | $ | 150,513 | $ | 532 | $ | 71,875 | $ | 4,200 | $ | 8,273 | $ | — | $ | — | $ | 235,393 | ||||||||||||||||
Separate account liabilities | $ | 150,513 | $ | 532 | $ | 71,875 | $ | 4,200 | $ | 8,273 | $ | — | $ | — | $ | 235,393 |
(1) | Total assets includes $111.0 billion of assets from the Japan operations which represents 13% of total consolidated assets. |
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | Retail | Group, Voluntary & Worksite Benefits | Corporate Benefit Funding | Latin America | Total | Asia | EMEA | Corporate & Other | Total | Adjustments | Total Consolidated | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 6,711 | $ | 13,949 | $ | 2,848 | $ | 2,514 | $ | 26,022 | $ | 7,716 | $ | 2,477 | $ | 54 | $ | 36,269 | $ | 92 | $ | 36,361 | ||||||||||||||||||||||
Universal life and investment-type product policy fees | 4,096 | 630 | 232 | 757 | 5,715 | 1,343 | 315 | 155 | 7,528 | 278 | 7,806 | |||||||||||||||||||||||||||||||||
Net investment income | 7,414 | 1,768 | 5,506 | 1,025 | 15,713 | 2,475 | 562 | 888 | 19,638 | (53 | ) | 19,585 | ||||||||||||||||||||||||||||||||
Other revenues | 779 | 390 | 249 | 15 | 1,433 | 36 | 123 | 60 | 1,652 | 880 | 2,532 | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | (867 | ) | (867 | ) | |||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | 4,824 | 4,824 | |||||||||||||||||||||||||||||||||
Total revenues | 19,000 | 16,737 | 8,835 | 4,311 | 48,883 | 11,570 | 3,477 | 1,157 | 65,087 | 5,154 | 70,241 | |||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 9,220 | 13,015 | 5,287 | 2,064 | 29,586 | 5,239 | 1,290 | 126 | 36,241 | 676 | 36,917 | |||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 2,412 | 178 | 1,323 | 371 | 4,284 | 1,607 | 166 | — | 6,057 | (454 | ) | 5,603 | ||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Capitalization of DAC | (2,339 | ) | (176 | ) | (25 | ) | (295 | ) | (2,835 | ) | (2,045 | ) | (669 | ) | — | (5,549 | ) | (9 | ) | (5,558 | ) | |||||||||||||||||||||||
Amortization of DAC and VOBA | 1,845 | 186 | 17 | 207 | 2,255 | 1,486 | 613 | 1 | 4,355 | 543 | 4,898 | |||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | (6 | ) | (6 | ) | (560 | ) | (53 | ) | — | (619 | ) | (78 | ) | (697 | ) | ||||||||||||||||||||||||||
Interest expense on debt | 1 | — | 9 | 1 | 11 | — | — | 1,293 | 1,304 | 325 | 1,629 | |||||||||||||||||||||||||||||||||
Other expenses | 5,854 | 2,198 | 513 | 1,305 | 9,870 | 4,522 | 1,723 | 505 | 16,620 | 1,645 | 18,265 | |||||||||||||||||||||||||||||||||
Total expenses | 16,993 | 15,401 | 7,124 | 3,647 | 43,165 | 10,249 | 3,070 | 1,925 | 58,409 | 2,648 | 61,057 | |||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 672 | 445 | 599 | 150 | 1,866 | 441 | 156 | (584 | ) | 1,879 | 914 | 2,793 | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 1,335 | $ | 891 | $ | 1,112 | $ | 514 | $ | 3,852 | $ | 880 | $ | 251 | $ | (184 | ) | 4,799 | ||||||||||||||||||||||||||
Adjustments to: | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 5,154 | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | (2,648 | ) | ||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (914 | ) | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 6,391 | $ | 6,391 |
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In millions) | |||||||||||
Life insurance (1) | $ | 32,176 | $ | 31,723 | $ | 30,486 | |||||
Accident and health insurance | 13,214 | 13,255 | 12,269 | ||||||||
Property and casualty insurance | 3,270 | 3,117 | 3,043 | ||||||||
Non-insurance | 385 | 342 | 901 | ||||||||
Total | $ | 49,045 | $ | 48,437 | $ | 46,699 |
(1) | Includes annuities and corporate benefit funding products. |
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In millions) | |||||||||||
U.S. | $ | 32,529 | $ | 31,500 | $ | 30,108 | |||||
Foreign: | |||||||||||
Japan | 7,373 | 7,833 | 7,184 | ||||||||
Other | 9,143 | 9,104 | 9,407 | ||||||||
Total | $ | 49,045 | $ | 48,437 | $ | 46,699 |