Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis:



	June 30, 2017
(In millions)	Total		NAV¹		Level 1		Level 2		Level 3
Assets
AFS securities
Fixed maturity securities
U.S. government and agencies	$	57	$	—	$	28	$	29	$	—
U.S. state, municipal and political subdivisions	1,156		—		—		1,156		—
Foreign governments	2,213		—		—		2,199		14
Corporate	33,220		—		—		32,768		452
CLO	5,170		—		—		5,089		81
ABS	3,604		—		—		2,511		1,093
CMBS	1,865		—		—		1,743		122
RMBS	9,528		—		—		9,216		312
Total AFS fixed maturity securities	56,813		—		28		54,711		2,074
Equity securities	429		—		182		241		6
Total AFS securities	57,242		—		210		54,952		2,080
Trading securities
Fixed maturity securities
U.S. government and agencies	3		—		3		—		—
U.S. state, municipal and political subdivisions	136		—		—		119		17
Corporate	1,479		—		—		1,479		—
CLO	27		—		—		5		22
ABS	87		—		—		87		—
CMBS	64		—		—		64		—
RMBS	418		—		—		318		100
Total trading fixed maturity securities	2,214		—		3		2,072		139
Equity securities	478		—		—		478		—
Total trading securities	2,692		—		3		2,550		139
Mortgage loans	43		—		—		—		43
Investment funds	94		94		—		—		—
Funds withheld at interest – embedded derivative	279		—		—		—		279
Derivative assets	1,808		—		6		1,802		—
Short-term investments	106		—		34		72		—
Cash and cash equivalents	3,478		—		3,478		—		—
Restricted cash	105		—		105		—		—
Investments in related parties
AFS, fixed maturity securities
CLO	283		—		—		283		—
ABS	54		—		—		54		—
Total AFS securities – related party	337		—		—		337		—
Trading securities, CLO	166		—		—		43		123
Investment funds	22		22		—		—		—
Short-term investments	28		—		—		—		28
Reinsurance recoverable	1,782		—		—		—		1,782
Total assets measured at fair value	$	68,182	$	116	$	3,836	$	59,756	$	4,474
									(Continued)



	June 30, 2017
(In millions)	Total		NAV¹		Level 1		Level 2		Level 3
Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	6,207	$	—	$	—	$	—	$	6,207
Universal life benefits	954		—		—		—		954
Unit-linked contracts	458		—		—		458		—
Future policy benefits
AmerUs Closed Block	1,621		—		—		—		1,621
ILICO Closed Block and life benefits	812		—		—		—		812
Derivative liabilities	63		—		1		56		6
Funds withheld liability – embedded derivative	15		—		—		15		—
Total liabilities measured at fair value	$	10,130	$	—	$	1	$	529	$	9,600

¹ Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy.
									(Concluded)



	December 31, 2016
(In millions)	Total		NAV¹		Level 1		Level 2		Level 3
Assets
AFS securities
Fixed maturity securities
U.S. government and agencies	$	60	$	—	$	29	$	31	$	—
U.S. state, municipal and political subdivisions	1,140		—		—		1,135		5
Foreign governments	2,235		—		—		2,221		14
Corporate	30,020		—		—		29,650		370
CLO	4,822		—		—		4,664		158
ABS	2,936		—		—		1,776		1,160
CMBS	1,847		—		—		1,695		152
RMBS	8,973		—		—		8,956		17
Total AFS fixed maturity securities	52,033		—		29		50,128		1,876
Equity securities	353		—		79		269		5
Total AFS securities	52,386		—		108		50,397		1,881
Trading securities
Fixed maturity securities
U.S. government and agencies	3		—		3		—		—
U.S. state, municipal and political subdivisions	137		—		—		120		17
Corporate	1,423		—		—		1,423		—
CLO	43		—		—		—		43
ABS	82		—		—		82		—
CMBS	81		—		—		81		—
RMBS	387		—		—		291		96
Total trading fixed maturity securities	2,156		—		3		1,997		156
Equity securities	425		—		—		425		—
Total trading securities	2,581		—		3		2,422		156
									(Continued)



	December 31, 2016
(In millions)	Total		NAV¹		Level 1		Level 2		Level 3
Mortgage loans	44		—		—		—		44
Investment funds	99		99		—		—		—
Funds withheld at interest – embedded derivative	140		—		—		—		140
Derivative assets	1,370		—		9		1,361		—
Short-term investments	189		—		19		170		—
Cash and cash equivalents	2,445		—		2,445		—		—
Restricted cash	57		—		57		—		—
Investments in related parties
AFS, fixed maturity securities
CLO	279		—		—		279		—
ABS	56		—		—		—		56
Total AFS fixed maturity securities	335		—		—		279		56
AFS, equity securities	20		—		20		—		—
Total AFS securities – related party	355		—		20		279		56
Trading securities, CLO	195		—		—		—		195
Reinsurance recoverable	1,692		—		—		—		1,692
Total assets measured at fair value	$	61,553	$	99	$	2,661	$	54,629	$	4,164
Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	5,283	$	—	$	—	$	—	$	5,283
Universal life benefits	883		—		—		—		883
Unit-linked contracts	408		—		—		408		—
Future policy benefits
AmerUs Closed Block	1,606		—		—		—		1,606
ILICO Closed Block and life benefits	794		—		—		—		794
Derivative liabilities	40		—		—		33		7
Funds withheld liability – embedded derivative	6		—		—		6		—
Total liabilities measured at fair value	$	9,020	$	—	$	—	$	447	$	8,573

¹ Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy.
									(Concluded)

Summary of Fair Value Option

The following represents the gains (losses) recorded for instruments for which we have elected the fair value option:



	Three months ended June 30,						Six months ended June 30,
(In millions)	2017			2016			2017			2016
Trading securities	$	44		$	53		$	46		$	65
Investment funds	7			(3		)	14			—
Future policy benefits	(19		)	(48		)	(15		)	(101		)
Total gains (losses)	$	32		$	2		$	45		$	(36	)

The following summarizes information for fair value option mortgage loans:



(In millions)	June 30, 2017		December 31, 2016
Unpaid principal balance	$	41	$	42
Mark to fair value	2		2
Fair value	$	43	$	44

Reconciliation of Level 3 Assets Measured on a Recurring Basis

The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis:



	Three months ended June 30, 2017
				Total realized and unrealized gains (losses)								Transfers
(In millions)	Beginning Balance			Included in income			Included in OCI		Purchases, issuances, sales and settlements, net			In		(Out)			Ending Balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
Foreign governments	$	13		$	1		$	—	$	—		$	—	$	—		$	14		$	—
Corporate	490			3			4		28			—		(73		)	452			—
CLO	100			—			4		17			11		(51		)	81			—
ABS	1,222			5			3		11			—		(148		)	1,093			—
CMBS	147			1			—		13			48		(87		)	122			—
RMBS	60			1			2		6			243		—			312			—
Equity securities	5			—			—		1			—		—			6			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17			—			—		—			—		—			17			—
CLO	27			—			—		—			—		(5		)	22			1
RMBS	82			(4		)	—		22			—		—			100			—
Mortgage loans	44			—			—		(1)			—		—			43			—
Funds withheld at interest – embedded derivative	212			67			—		—			—		—			279			—
Investments in related parties
Trading securities, CLO	131			5			—		(12		)	31		(32		)	123			5
Short-term investments	20			—			—		8			—		—			28			—
Reinsurance recoverable	1,738			44			—		—			—		—			1,782			—
Total Level 3 assets	$	4,308		$	123		$	13	$	93		$	333	$	(396	)	$	4,474		$	6

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(5,793	)	$	(302	)	$	—	$	(112	)	$	—	$	—		$	(6,207	)	$	—
Universal life liabilities	(910		)	(44		)	—		—			—		—			(954		)	—
Future policy benefits
AmerUs Closed Block	(1,602		)	(19		)	—		—			—		—			(1,621		)	—
ILICO Closed Block and life benefits	(813		)	1			—		—			—		—			(812		)	—
Derivative liabilities	(7		)	1			—		—			—		—			(6		)	—
Total Level 3 liabilities	$	(9,125	)	$	(363	)	$	—	$	(112	)	$	—	$	—		$	(9,600	)	$	—

¹ Related to instruments held at end of period.



	Three months ended June 30, 2016
					Total realized and unrealized gains (losses)									Transfers
(In millions)	Beginning balance				Included in income			Included in OCI			Purchases, issuances, sales and settlements, net			In		Out			Ending balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
Foreign governments	$	17			$	—		$	(1	)	$	—		$	—	$	—		$	16		$	—
Corporate	449				3			3			3			35		(91		)	402			—
CLO	1,037				1			53			17			89		(912		)	285			—
ABS	1,361				24			1			(86		)	2		(64		)	1,238			—
CMBS	83				—			3			—			50		(56		)	80			—
RMBS	689				—			13			(32		)	—		(670		)	—			—
Equity securities	10				—			—			—			—		—			10			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17				—			—			—			—		—			17			—
Corporate	—			—	—			—			—			1		—			1			—
CLO	97				8			—			(1		)	—		—			104			12
ABS	96				(7		)	—			—			—		—			89			—
RMBS	71				—			—			61			—		(10		)	122			3
Mortgage loans	45				1			—			(1		)	—		—			45			—
Funds withheld at interest – embedded derivative	37				85			—			—			—		—			122			—
Investments in related parties
AFS securities
Fixed maturity
CLO	46				—			1			—			—		(47		)	—			—
ABS	59				—			—			(1		)	—		—			58			—
Trading securities, CLO	213				(10		)	—			8			—		—			211			6
Reinsurance recoverable	2,012				(114		)	—			—			—		—			1,898			—
Total Level 3 assets	$	6,339			$	(9	)	$	73		$	(32	)	$	177	$	(1,850	)	$	4,698		$	21

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(4,583	)		$	(132	)	$	—		$	(92	)	$	—	$	—		$	(4,807	)	$	—
Universal life liabilities	(1,119		)		60			—			—			—		—			(1,059		)	—
Future policy benefits
AmerUs Closed Block	(1,634		)		(48		)	—			—			—		—			(1,682		)	—
ILICO Closed Block and life benefits	(877		)		54			—			—			—		—			(823		)	—
Derivative liabilities	(8		)		—			—			—			—		—			(8		)	—
Total Level 3 liabilities	$	(8,221	)		$	(66	)	$	—		$	(92	)	$	—	$	—		$	(8,379	)	$	—

¹Related to instruments held at end of period.



	Six months ended June 30, 2017
				Total realized and unrealized gains (losses)									Transfers
(In millions)	Beginning Balance			Included in income			Included in OCI			Purchases, issuances, sales and settlements, net			In		(Out)			Ending Balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
U.S. state, municipal and political subdivisions	$	5		$	16		$	(1	)	$	(20	)	$	—	$	—		$	—		$	—
Foreign governments	14			1			—			(1		)	—		—			14			—
Corporate	370			4			10			105			—		(37		)	452			—
CLO	158			—			9			7			11		(104		)	81			—
ABS	1,160			9			17			42			—		(135		)	1,093			—
CMBS	152			1			(3		)	13			17		(58		)	122			—
RMBS	17			1			—			6			296		(8		)	312			—
Equity securities	5			—			—			1			—		—			6			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17			—			—			—			—		—			17			—
CLO	43			(1		)	—			(15		)	—		(5		)	22			2
RMBS	96			(9		)	—			24			—		(11		)	100			(1		)
Mortgage loans	44			—			—			(1		)	—		—			43			—
Funds withheld at interest – embedded derivative	140			139			—			—			—		—			279			—
Investments in related parties
AFS securities
Fixed maturity
ABS	56			—			1			(4		)	—		(53		)	—			—
Trading securities, CLO	195			(3		)	—			(26		)	—		(43		)	123			(1		)
Short-term investments	—			—			—			28			—		—			28			—
Reinsurance recoverable	1,692			90			—			—			—		—			1,782			—
Total Level 3 assets	$	4,164		$	248		$	33		$	159		$	324	$	(454	)	$	4,474		$	—

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(5,283	)	$	(733	)	$	—		$	(191	)	$	—	$	—		$	(6,207	)	$	—
Universal life liabilities	(883		)	(71		)	—			—			—		—			(954		)	—
Future policy benefits
AmerUs Closed Block	(1,606		)	(15		)	—			—			—		—			(1,621		)	—
ILICO Closed Block and life benefits	(794		)	(18		)	—			—			—		—			(812		)	—
Derivative liabilities	(7		)	1			—			—			—		—			(6		)	1
Total Level 3 liabilities	$	(8,573	)	$	(836	)	$	—		$	(191	)	$	—	$	—		$	(9,600	)	$	1

¹ Related to instruments held at end of period.



	Six months ended June 30, 2016
				Total realized and unrealized gains (losses)									Transfers
(In millions)	Beginning balance			Included in income			Included in OCI			Purchases, issuances, sales and settlements, net			In		Out			Ending balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
Foreign governments	$	17		$	1		$	(1	)	$	(1	)	$	—	$	—		$	16		$	—
Corporate	636			3			19			(16		)	47		(287		)	402			—
CLO	517			2			(1		)	16			136		(385		)	285			—
ABS	1,813			76			(13		)	(615		)	105		(128		)	1,238			—
CMBS	67			—			1			7			50		(45		)	80			—
RMBS	758			1			6			(108		)	—		(657		)	—			—
Equity securities	9			—			1			—			—		—			10			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17			—			—			—			—		—			17			—
Corporate	16			—			—			(4		)	1		(12		)	1			4
CLO	108			(3		)	—			(1		)	—		—			104			4
ABS	98			(9		)	—			—			—		—			89			—
RMBS	29			(2		)	—			100			—		(5		)	122			2
Mortgage loans	48			—			—			(3		)	—		—			45			—
Funds withheld at interest – embedded derivative	36			86			—			—			—		—			122			—
Investments in related parties
AFS securities
Fixed maturity
CLO	7			—			(1		)	—			—		(6		)	—			—
ABS	60			—			—			(2		)	—		—			58			—
Trading securities, CLO	191			(23		)	—			17			26		—			211			16
Reinsurance recoverable	2,377			(479		)	—			—			—		—			1,898			—
Total Level 3 assets	$	6,804		$	(347	)	$	11		$	(610	)	$	365	$	(1,525	)	$	4,698		$	26

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(4,464	)	$	(147	)	$	—		$	(196	)	$	—	$	—		$	(4,807	)	$	—
Universal life liabilities	(1,464		)	405			—			—			—		—			(1,059		)	—
Future policy benefits
AmerUs Closed Block	(1,581		)	(101		)	—			—			—		—			(1,682		)	—
ILICO Closed Block and life benefits	(897		)	74			—			—			—		—			(823		)	—
Derivative liabilities	(7		)	(1		)	—			—			—		—			(8		)	(1		)
Total Level 3 liabilities	$	(8,413	)	$	230		$	—		$	(196	)	$	—	$	—		$	(8,379	)	$	(1	)

¹Related to instruments held at end of period.



	Three months ended June 30, 2017
(In millions)	Purchases		Issuances			Sales			Settlements			Purchases, issuances, sales and settlements, net
Assets
AFS securities
Fixed maturity
Corporate	$	30	$	—		$	(1	)	$	(1	)	$	28
CLO	24		—			(5		)	(2		)	17
ABS	99		—			—			(88		)	11
CMBS	13		—			—			—			13
RMBS	7		—			—			(1		)	6
Equity securities	1		—			—			—			1
Trading securities
Fixed maturity
RMBS	22		—			—			—			22
Mortgage loans	—		—			—			(1)			(1		)
Investments in related parties
Trading securities, CLO	—		—			(12		)	—			(12		)
Short-term investments	8		—			—			—			8
Total Level 3 assets	$	204	$	—		$	(18	)	$	(93	)	$	93

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	—	$	(160	)	$	—		$	48		$	(112	)
Total Level 3 liabilities	$	—	$	(160	)	$	—		$	48		$	(112	)



	Three months ended June 30, 2016
(In millions)	Purchases		Issuances			Sales			Settlements			Purchases, issuances, sales and settlements, net
Assets
AFS securities
Fixed maturity
Corporate	$	28	$	—		$	(23	)	$	(2	)	$	3
CLO	20		—			(3		)	—			17
ABS	216		—			(34		)	(268		)	(86		)
RMBS	—		—			—			(32		)	(32		)
Trading securities
Fixed maturity
CLO	—		—			(1		)	—			(1		)
RMBS	61		—			—			—			61
Mortgage loans	—		—			—			(1		)	(1		)
Investments in related parties
AFS securities
Fixed maturity
ABS	—		—			—			(1		)	(1		)
Trading securities, CLO	8		—			—			—			8
Total Level 3 assets	$	333	$	—		$	(61	)	$	(304	)	$	(32	)

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	—	$	(129	)	$	—		$	37		$	(92	)
Total Level 3 liabilities	$	—	$	(129	)	$	—		$	37		$	(92	)

Reconciliation of Level 3 Liabilities Measured on a Recurring Basis

The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis:



	Three months ended June 30, 2017
				Total realized and unrealized gains (losses)								Transfers
(In millions)	Beginning Balance			Included in income			Included in OCI		Purchases, issuances, sales and settlements, net			In		(Out)			Ending Balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
Foreign governments	$	13		$	1		$	—	$	—		$	—	$	—		$	14		$	—
Corporate	490			3			4		28			—		(73		)	452			—
CLO	100			—			4		17			11		(51		)	81			—
ABS	1,222			5			3		11			—		(148		)	1,093			—
CMBS	147			1			—		13			48		(87		)	122			—
RMBS	60			1			2		6			243		—			312			—
Equity securities	5			—			—		1			—		—			6			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17			—			—		—			—		—			17			—
CLO	27			—			—		—			—		(5		)	22			1
RMBS	82			(4		)	—		22			—		—			100			—
Mortgage loans	44			—			—		(1)			—		—			43			—
Funds withheld at interest – embedded derivative	212			67			—		—			—		—			279			—
Investments in related parties
Trading securities, CLO	131			5			—		(12		)	31		(32		)	123			5
Short-term investments	20			—			—		8			—		—			28			—
Reinsurance recoverable	1,738			44			—		—			—		—			1,782			—
Total Level 3 assets	$	4,308		$	123		$	13	$	93		$	333	$	(396	)	$	4,474		$	6

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(5,793	)	$	(302	)	$	—	$	(112	)	$	—	$	—		$	(6,207	)	$	—
Universal life liabilities	(910		)	(44		)	—		—			—		—			(954		)	—
Future policy benefits
AmerUs Closed Block	(1,602		)	(19		)	—		—			—		—			(1,621		)	—
ILICO Closed Block and life benefits	(813		)	1			—		—			—		—			(812		)	—
Derivative liabilities	(7		)	1			—		—			—		—			(6		)	—
Total Level 3 liabilities	$	(9,125	)	$	(363	)	$	—	$	(112	)	$	—	$	—		$	(9,600	)	$	—

¹ Related to instruments held at end of period.



	Three months ended June 30, 2016
					Total realized and unrealized gains (losses)									Transfers
(In millions)	Beginning balance				Included in income			Included in OCI			Purchases, issuances, sales and settlements, net			In		Out			Ending balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
Foreign governments	$	17			$	—		$	(1	)	$	—		$	—	$	—		$	16		$	—
Corporate	449				3			3			3			35		(91		)	402			—
CLO	1,037				1			53			17			89		(912		)	285			—
ABS	1,361				24			1			(86		)	2		(64		)	1,238			—
CMBS	83				—			3			—			50		(56		)	80			—
RMBS	689				—			13			(32		)	—		(670		)	—			—
Equity securities	10				—			—			—			—		—			10			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17				—			—			—			—		—			17			—
Corporate	—			—	—			—			—			1		—			1			—
CLO	97				8			—			(1		)	—		—			104			12
ABS	96				(7		)	—			—			—		—			89			—
RMBS	71				—			—			61			—		(10		)	122			3
Mortgage loans	45				1			—			(1		)	—		—			45			—
Funds withheld at interest – embedded derivative	37				85			—			—			—		—			122			—
Investments in related parties
AFS securities
Fixed maturity
CLO	46				—			1			—			—		(47		)	—			—
ABS	59				—			—			(1		)	—		—			58			—
Trading securities, CLO	213				(10		)	—			8			—		—			211			6
Reinsurance recoverable	2,012				(114		)	—			—			—		—			1,898			—
Total Level 3 assets	$	6,339			$	(9	)	$	73		$	(32	)	$	177	$	(1,850	)	$	4,698		$	21

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(4,583	)		$	(132	)	$	—		$	(92	)	$	—	$	—		$	(4,807	)	$	—
Universal life liabilities	(1,119		)		60			—			—			—		—			(1,059		)	—
Future policy benefits
AmerUs Closed Block	(1,634		)		(48		)	—			—			—		—			(1,682		)	—
ILICO Closed Block and life benefits	(877		)		54			—			—			—		—			(823		)	—
Derivative liabilities	(8		)		—			—			—			—		—			(8		)	—
Total Level 3 liabilities	$	(8,221	)		$	(66	)	$	—		$	(92	)	$	—	$	—		$	(8,379	)	$	—

¹Related to instruments held at end of period.



	Six months ended June 30, 2017
				Total realized and unrealized gains (losses)									Transfers
(In millions)	Beginning Balance			Included in income			Included in OCI			Purchases, issuances, sales and settlements, net			In		(Out)			Ending Balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
U.S. state, municipal and political subdivisions	$	5		$	16		$	(1	)	$	(20	)	$	—	$	—		$	—		$	—
Foreign governments	14			1			—			(1		)	—		—			14			—
Corporate	370			4			10			105			—		(37		)	452			—
CLO	158			—			9			7			11		(104		)	81			—
ABS	1,160			9			17			42			—		(135		)	1,093			—
CMBS	152			1			(3		)	13			17		(58		)	122			—
RMBS	17			1			—			6			296		(8		)	312			—
Equity securities	5			—			—			1			—		—			6			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17			—			—			—			—		—			17			—
CLO	43			(1		)	—			(15		)	—		(5		)	22			2
RMBS	96			(9		)	—			24			—		(11		)	100			(1		)
Mortgage loans	44			—			—			(1		)	—		—			43			—
Funds withheld at interest – embedded derivative	140			139			—			—			—		—			279			—
Investments in related parties
AFS securities
Fixed maturity
ABS	56			—			1			(4		)	—		(53		)	—			—
Trading securities, CLO	195			(3		)	—			(26		)	—		(43		)	123			(1		)
Short-term investments	—			—			—			28			—		—			28			—
Reinsurance recoverable	1,692			90			—			—			—		—			1,782			—
Total Level 3 assets	$	4,164		$	248		$	33		$	159		$	324	$	(454	)	$	4,474		$	—

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(5,283	)	$	(733	)	$	—		$	(191	)	$	—	$	—		$	(6,207	)	$	—
Universal life liabilities	(883		)	(71		)	—			—			—		—			(954		)	—
Future policy benefits
AmerUs Closed Block	(1,606		)	(15		)	—			—			—		—			(1,621		)	—
ILICO Closed Block and life benefits	(794		)	(18		)	—			—			—		—			(812		)	—
Derivative liabilities	(7		)	1			—			—			—		—			(6		)	1
Total Level 3 liabilities	$	(8,573	)	$	(836	)	$	—		$	(191	)	$	—	$	—		$	(9,600	)	$	1

¹ Related to instruments held at end of period.



	Six months ended June 30, 2016
				Total realized and unrealized gains (losses)									Transfers
(In millions)	Beginning balance			Included in income			Included in OCI			Purchases, issuances, sales and settlements, net			In		Out			Ending balance			Total gains (losses) included in earnings¹
Assets
AFS securities
Fixed maturity
Foreign governments	$	17		$	1		$	(1	)	$	(1	)	$	—	$	—		$	16		$	—
Corporate	636			3			19			(16		)	47		(287		)	402			—
CLO	517			2			(1		)	16			136		(385		)	285			—
ABS	1,813			76			(13		)	(615		)	105		(128		)	1,238			—
CMBS	67			—			1			7			50		(45		)	80			—
RMBS	758			1			6			(108		)	—		(657		)	—			—
Equity securities	9			—			1			—			—		—			10			—
Trading securities
Fixed maturity
U.S. state, municipal and political subdivisions	17			—			—			—			—		—			17			—
Corporate	16			—			—			(4		)	1		(12		)	1			4
CLO	108			(3		)	—			(1		)	—		—			104			4
ABS	98			(9		)	—			—			—		—			89			—
RMBS	29			(2		)	—			100			—		(5		)	122			2
Mortgage loans	48			—			—			(3		)	—		—			45			—
Funds withheld at interest – embedded derivative	36			86			—			—			—		—			122			—
Investments in related parties
AFS securities
Fixed maturity
CLO	7			—			(1		)	—			—		(6		)	—			—
ABS	60			—			—			(2		)	—		—			58			—
Trading securities, CLO	191			(23		)	—			17			26		—			211			16
Reinsurance recoverable	2,377			(479		)	—			—			—		—			1,898			—
Total Level 3 assets	$	6,804		$	(347	)	$	11		$	(610	)	$	365	$	(1,525	)	$	4,698		$	26

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	(4,464	)	$	(147	)	$	—		$	(196	)	$	—	$	—		$	(4,807	)	$	—
Universal life liabilities	(1,464		)	405			—			—			—		—			(1,059		)	—
Future policy benefits
AmerUs Closed Block	(1,581		)	(101		)	—			—			—		—			(1,682		)	—
ILICO Closed Block and life benefits	(897		)	74			—			—			—		—			(823		)	—
Derivative liabilities	(7		)	(1		)	—			—			—		—			(8		)	(1		)
Total Level 3 liabilities	$	(8,413	)	$	230		$	—		$	(196	)	$	—	$	—		$	(8,379	)	$	(1	)

¹Related to instruments held at end of period.



	Three months ended June 30, 2017
(In millions)	Purchases		Issuances			Sales			Settlements			Purchases, issuances, sales and settlements, net
Assets
AFS securities
Fixed maturity
Corporate	$	30	$	—		$	(1	)	$	(1	)	$	28
CLO	24		—			(5		)	(2		)	17
ABS	99		—			—			(88		)	11
CMBS	13		—			—			—			13
RMBS	7		—			—			(1		)	6
Equity securities	1		—			—			—			1
Trading securities
Fixed maturity
RMBS	22		—			—			—			22
Mortgage loans	—		—			—			(1)			(1		)
Investments in related parties
Trading securities, CLO	—		—			(12		)	—			(12		)
Short-term investments	8		—			—			—			8
Total Level 3 assets	$	204	$	—		$	(18	)	$	(93	)	$	93

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	—	$	(160	)	$	—		$	48		$	(112	)
Total Level 3 liabilities	$	—	$	(160	)	$	—		$	48		$	(112	)



	Three months ended June 30, 2016
(In millions)	Purchases		Issuances			Sales			Settlements			Purchases, issuances, sales and settlements, net
Assets
AFS securities
Fixed maturity
Corporate	$	28	$	—		$	(23	)	$	(2	)	$	3
CLO	20		—			(3		)	—			17
ABS	216		—			(34		)	(268		)	(86		)
RMBS	—		—			—			(32		)	(32		)
Trading securities
Fixed maturity
CLO	—		—			(1		)	—			(1		)
RMBS	61		—			—			—			61
Mortgage loans	—		—			—			(1		)	(1		)
Investments in related parties
AFS securities
Fixed maturity
ABS	—		—			—			(1		)	(1		)
Trading securities, CLO	8		—			—			—			8
Total Level 3 assets	$	333	$	—		$	(61	)	$	(304	)	$	(32	)

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	—	$	(129	)	$	—		$	37		$	(92	)
Total Level 3 liabilities	$	—	$	(129	)	$	—		$	37		$	(92	)

Gross Components of Purchases, Sales, Issuances and Settlements, net

The following represents the gross components of purchases, issuances, sales and settlements, net, shown above:



	Six months ended June 30, 2017
(In millions)	Purchases		Issuances			Sales			Settlements			Purchases, issuances, sales and settlements, net
Assets
AFS securities
Fixed maturity
U.S. state, municipal and political subdivisions	$	—	$	—		$	—		$	(20	)	$	(20	)
Foreign governments	—		—			—			(1		)	(1		)
Corporate	110		—			(2		)	(3		)	105
CLO	24		—			(2		)	(15		)	7
ABS	182		—			—			(140		)	42
CMBS	13		—			—			—			13
RMBS	7		—			—			(1		)	6
Equity securities	1		—			—			—			1
Trading securities
Fixed maturity
CLO	—		—			(15		)	—			(15		)
RMBS	24		—			—			—			24
Mortgage loans	—		—			—			(1		)	(1		)
Investments in related parties
AFS securities
Fixed maturity
ABS	5		—			—			(9		)	(4		)
Trading securities, CLO	—		—			(26		)	—			(26		)
Short-term investments	28		—			—			—			28
Total Level 3 assets	$	394	$	—		$	(45	)	$	(190	)	$	159

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	—	$	(270	)	$	—		$	79		$	(191	)
Total Level 3 liabilities	$	—	$	(270	)	$	—		$	79		$	(191	)



	Six months ended June 30, 2016
(In millions)	Purchases		Issuances			Sales			Settlements			Purchases, issuances, sales and settlements, net
Assets
AFS securities
Fixed maturity
Foreign governments	$	—	$	—		$	—		$	(1	)	$	(1	)
Corporate	40		—			(54		)	(2		)	(16		)
CLO	19		—			(3		)	—			16
ABS	239		—			(34		)	(820		)	(615		)
CMBS	7		—			—			—			7
RMBS	—		—			—			(108		)	(108		)
Trading securities
Fixed maturity
Corporate	—		—			(4		)	—			(4		)
CLO	—		—			(1		)	—			(1		)
RMBS	100		—			—			—			100
Mortgage loans	—		—			—			(3		)	(3		)
Investments in related parties
AFS securities
Fixed maturity
ABS	—		—			—			(2		)	(2		)
Trading securities, CLO	33		—			(16		)	—			17
Total Level 3 assets	$	438	$	—		$	(112	)	$	(936	)	$	(610	)

Liabilities
Interest sensitive contract liabilities
Embedded derivative	$	—	$	(273	)	$	—		$	77		$	(196	)
Total Level 3 liabilities	$	—	$	(273	)	$	—		$	77		$	(196	)

Summary of the Unobservable Inputs for the Embedded Derivative of Fixed Indexed Annuities

The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities:



	June 30, 2017
(In millions, except for percentages)	Fair value		Valuation technique	Unobservable inputs	Input/range of inputs				Impact of an increase in the input on fair value
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives	$	6,207	Option budget method	Non-performance risk	0.3	%	–	1.4%	Decrease
				Option budget	0.8	%	–	3.8%	Increase
				Surrender rate	0.0	%	–	16.5%	Decrease



	December 31, 2016
(In millions, except for percentages)	Fair value		Valuation technique	Unobservable inputs	Input/range of inputs				Impact of an increase in the input on fair value
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives	$	5,283	Option budget method	Non-performance risk	0.7	%	–	1.5%	Decrease
				Option budget	0.8	%	–	3.8%	Increase
				Surrender rate	0.0	%	–	16.3%	Decrease

Summary of Financial Instruments Not Carried at Fair Value on the Balance Sheet

The following represents our financial instruments not carried at fair value on the condensed consolidated balance sheets:



		June 30, 2017				December 31, 2016
(In millions)	Fair Value Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
Mortgage loans	3	$	5,981	$	6,152	$	5,426	$	5,560
Investment funds	NAV¹	603		603		590		590
Policy loans	2	579		579		602		602
Funds withheld at interest	3	6,555		6,555		6,398		6,398
Other investments	3	91		91		81		81
Investments in related parties
Investment funds	NAV¹	1,238		1,238		1,198		1,198
Other investments	3	238		266		237		262
Total assets not carried at fair value		$	15,285	$	15,484	$	14,532	$	14,691
Liabilities
Interest sensitive contract liabilities	3	$	29,786	$	29,249	$	27,628	$	26,930
Funds withheld liability	2	376		376		374		374
Total liabilities not carried at fair value		$	30,162	$	29,625	$	28,002	$	27,304

¹ Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy.

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References + Details