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DERIVATIVE INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk
The counterparties to all these swap agreements are financial institutions with the following credit ratings.
 
September 30, 2012
 
December 31, 2011
 
Fair Value
Notional Amount
 
Fair Value
Notional Amount
(In millions)
of Swaps
of Swaps
 
of Swaps
of Swaps
Counterparty
credit rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
   A
 
$
(63
)
 
 
$
9,199

 
 
 
$
(156
)
 
 
$
5,491

 
      Total
 
$
(63
)
 
 
$
9,199

 
 
 
$
(156
)
 
 
$
5,491

 
Maximum Potential Risk, Fair Value, Weighted Average Years to Maturity, and Underlying Referenced Credit Obligation Type for Credit Derivatives
The following tables present the maximum potential risk, fair value, weighted-average years to maturity, and underlying referenced credit obligation type for credit default swaps within consolidated VIE structures.
September 30, 2012
  
 
Less than
one year
 
One to
three years
 
Three to
five years
 
Five to
ten years
 
Total
(In millions)
Credit
Rating
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
Index exposure:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate bonds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A
$
0

 
$
0

 
$
0

 
$
0

 
$
(147
)
 
$
0

 
$
0

 
$
0

 
$
(147
)
 
$
0

 
BB or lower
0

 
0

 
0

 
0

 
0

 
0

 
(235
)
 
(82
)
 
(235
)
 
(82
)
     Total
 
$
0

 
$
0

 
$
0

 
$
0

 
$
(147
)
 
$
0

 
$
(235
)
 
$
(82
)
 
$
(382
)
 
$
(82
)
 
December 31, 2011
  
 
Less than
one year
 
One to
three years
 
Three to
five years
 
Five to
ten years
 
Total
(In millions)
Credit
Rating
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
 
Maximum
potential
risk
 
Estimated
fair value
Index exposure:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate bonds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A
$
0

 
$
0

 
$
0

 
$
0

 
$
(146
)
 
$
(17
)
 
$
0

 
$
0

 
$
(146
)
 
$
(17
)
 
BB or lower
0

 
0

 
0

 
0

 
0

 
0

 
(235
)
 
(113
)
 
(235
)
 
(113
)
     Total
 
$
0

 
$
0

 
$
0

 
$
0

 
$
(146
)
 
$
(17
)
 
$
(235
)
 
$
(113
)
 
$
(381
)
 
$
(130
)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The tables below summarize the balance sheet classification of our derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated. Notional amounts are not reflective of credit risk.
  
September 30, 2012
(In millions)
Net Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
Hedge Designation/ Derivative Type
Notional
Amount
 
Fair Value
 
Fair Value
 
Fair Value
Cash flow hedges:
 
 
 
 
 
 
 
Interest rate swaps
$
71

 
$
0

 
$
0

 
$
0

Foreign currency swaps
75

 
30

 
30

 
0

Total cash flow hedges
146

 
30

 
30

 
0

Fair value hedges:
 
 
 
 
 
 
 
Foreign currency forwards
2,502

 
17

 
17

 
0

Total fair value hedges
2,502

 
17

 
17

 
0

Non-qualifying strategies:
 
 
 
 
 
 
 
Interest rate swaps
382

 
34

 
39

 
(5
)
Foreign currency swaps
5,787

 
(62
)
 
298

 
(360
)
Credit default swaps
382

 
(82
)
 
0

 
(82
)
Total non-qualifying strategies
6,551

 
(110
)
 
337

 
(447
)
Total derivatives
$
9,199

 
$
(63
)
 
$
384

 
$
(447
)
Balance Sheet Location
 
 
 
 
 
 
 
Other assets
$
5,281

 
$
384

 
$
384

 
$
0

Other liabilities
3,918

 
(447
)
 
0

 
(447
)
Total derivatives
$
9,199

 
$
(63
)
 
$
384

 
$
(447
)
 
 
 
 
 
 
 
 
  
December 31, 2011
(In millions)
Net Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
Hedge Designation/ Derivative Type
Notional
Amount
 
Fair Value
 
Fair Value
 
Fair Value
Cash flow hedges:
 
 
 
 
 
 
 
Interest rate swaps
$
71

 
$
0

 
$
0

 
$
0

Foreign currency swaps
75

 
36

 
36

 
0

Total cash flow hedges
146

 
36

 
36

 
0

Non-qualifying strategies:
 
 
 
 
 
 
 
Interest rate swaps
381

 
30

 
34

 
(4
)
Foreign currency swaps
4,583

 
(92
)
 
305

 
(397
)
Credit default swaps
381

 
(130
)
 
0

 
(130
)
Total non-qualifying strategies
5,345

 
(192
)
 
339

 
(531
)
Total derivatives
$
5,491

 
$
(156
)
 
$
375

 
$
(531
)
Balance Sheet Location
 
 
 
 
 
 
 
Other assets
$
1,794

 
$
375

 
$
375

 
$
0

Other liabilities
3,697

 
(531
)
 
0

 
(531
)
Total derivatives
$
5,491

 
$
(156
)
 
$
375

 
$
(531
)
Cash Flow Hedges Gains (Losses) Recognized In Other Comprehensive Income and Income
The following table presents the components of the gain or loss on derivatives that qualified as cash flow hedges.
Derivatives in Cash Flow Hedging Relationships
(In millions)
Gain (Loss) Recognized in
Other Comprehensive Income
on Derivative (Effective Portion)
 
Derivative Gains (Losses)
Recognized in Income
(Ineffective Portion)
Three Months Ended September 30, 2012:
 
 
 
 
 
 
 
   Interest rate swaps
 
$
0

 
 
 
$
0

 
   Foreign currency swaps
 
2

 
 
 
0

 
Total
 
$
2

 
 
 
$
0

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012:
 
 
 
 
 
 
 
   Interest rate swaps
 
$
0

 
 
 
$
0

 
   Foreign currency swaps
 
(6
)
 
 
 
0

 
Total
 
$
(6
)
 
 
 
$
0

 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2011:
 
 
 
 
 
 
 
   Interest rate swaps
 
$
1

 
 
 
$
0

 
   Foreign currency swaps
 
(1
)
 
 
 
0

 
Total
 
$
0

 
 
 
$
0

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2011:
 
 
 
 
 
 
 
   Interest rate swaps
 
$
2

 
 
 
$
0

 
   Foreign currency swaps
 
(40
)
 
 
 
(2
)
 
Total
 
$
(38
)
 
 
 
$
(2
)
 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges.
Derivatives in Fair Value Hedging Relationships
(In millions)
 
 
Hedging Derivatives
 
Hedged Items
 
 
Hedging Derivatives
Hedged Items
 
Total
Gains (Losses)
 
Gains (Losses)
Excluded from Effectiveness Testing
 
Gains (Losses)
Included in Effectiveness Testing
 
Foreign Currency Gains (Losses)
 
Ineffectiveness
Recognized for Fair Value Hedge
Three and Nine Months Ended September 30, 2012:(1)
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity securities
 
$
17

 
$
(3
)
 
$
20

 
$
(20
)
 
$
0

(1) Fair value hedging program began in September 2012; therefore, the three- and nine-month results are the same
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the gain or loss recognized in income on non-qualifying strategies.
Non-qualifying Strategies
Gain (Loss) Recognized within Derivative Gains (Losses)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In millions)
2012
 
2011
 
2012
 
2011
Interest rate swaps
 
$
7

 
 
 
$
(78
)
 
 
 
$
4

 
 
 
$
(79
)
 
Foreign currency swaps
 
66

 
 
 
(72
)
 
 
 
59

 
 
 
(98
)
 
Credit default swaps
 
25

 
 
 
(74
)
 
 
 
48

 
 
 
(112
)
 
Total
 
$
98

 
 
 
$
(224
)
 
 
 
$
111

 
 
 
$
(289
)
 
Schedule of Net Investment Hedges Statements of Financial Performance and Financial Position Location

Non-Derivative Hedging Instruments in
Net Investment Hedging Relationships
 
Gain (Loss) Recognized in
Other Comprehensive Income (Effective Portion)
 
Three Months Ended September 30,
 
Nine Months Ended
September 30,
(In millions)
2012
 
2011
 
2012
 
2011
Non-derivative hedging instruments
 
$
(21
)
 
 
 
$
(65
)
 
 
 
$
(4
)
 
 
 
$
(75
)