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DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The following table summarized the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.
 
Three Months Ended March 31,
 
2013
2012
(In millions)
 
Realized Investment
Gains (Losses)
 
Other
Comprehensive
Income (Loss)
Realized Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)
Qualifying hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
$
(1
)
 
 
 
$
(7
)
 
 
$
0

 
 
$
(12
)
 
  Total cash flow hedges
 
 
(1
)
 
 
 
(7
)
 
 
0

 
 
(12
)
 
  Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency forwards(1)
 
 
(6
)
 
 
 
0

 
 
0

 
 
0

 
  Total fair value hedges
 
 
(6
)
 
 
 
0

 
 
0

 
 
0

 
  Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Non-derivative hedging instruments
 
 
0

 
 
 
69

 
 
0

 
 
49

 
   Total net investment hedge
 
 
0

 
 
 
69

 
 
0

 
 
49

 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Interest rate swaps
 
 
(4
)
 
 
 
0

 
 
(3
)
 
 
0

 
       Foreign currency swaps
 
 
84

 
 
 
0

 
 
50

 
 
0

 
       Foreign currency options
 
 
2

 
 
 
0

 
 
0

 
 
0

 
       Credit default swaps
 
 
12

 
 
 
0

 
 
33

 
 
0

 
  Total non-qualifying strategies
 
 
94

 
 
 
0

 
 
80

 
 
0

 
          Total
 
 
$
87

 
 
 
$
62

 
 
$
80

 
 
$
37

 
(1)Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)
Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk
The counterparties to these derivatives are financial institutions with the following credit ratings.
 
March 31, 2013
 
December 31, 2012
 
Fair Value
Notional Amount
 
Fair Value
Notional Amount
(In millions)
of Swaps
of Swaps
 
of Swaps
of Swaps
Counterparties' credit rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
   AA
 
$
(6
)
 
 
$
161

 
 
 
$
(1
)
 
 
$
161

 
   A
 
(207
)
 
 
14,924

 
 
 
(588
)
 
 
13,209

 
      Total
 
$
(213
)
 
 
$
15,085

 
 
 
$
(589
)
 
 
$
13,370

 
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.
March 31, 2013
  
 
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

 
$
124

 
$
2

 
$
0

 
$
0

 
$
0

 
$
0

 
$
124

 
$
2

 
BB or lower
0

 
0

 
0

 
0

 
106

 
(41
)
 
107

 
(15
)
 
213

 
(56
)
     Total
 
$
0

 
$
0

 
$
124

 
$
2

 
$
106

 
$
(41
)
 
$
107

 
$
(15
)
 
$
337

 
$
(54
)
 
December 31, 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

 
$
(133
)
 
$
2

 
$
0

 
$
0

 
$
0

 
$
0

 
$
(133
)
 
$
2

 
BB or lower
0

 
0

 
0

 
0

 
(106
)
 
(47
)
 
(116
)
 
(20
)
 
(222
)
 
(67
)
     Total
 
$
0

 
$
0

 
$
(133
)
 
$
2

 
$
(106
)
 
$
(47
)
 
$
(116
)
 
$
(20
)
 
$
(355
)
 
$
(65
)
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.
  
 
March 31, 2013
 
(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
 
$
58

 
 
 
$
0

 
 
 
$
0

 
 
 
$
0

 
Foreign currency swaps
 
75

 
 
 
7

 
 
 
7

 
 
 
0

 
Total cash flow hedges
 
133

 
 
 
7

 
 
 
7

 
 
 
0

 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
8,661

 
 
 
(253
)
 
 
 
19

 
 
 
(272
)
 
Total fair value hedges
 
8,661

 
 
 
(253
)
 
 
 
19

 
 
 
(272
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
336

 
 
 
25

 
 
 
26

 
 
 
(1
)
 
Foreign currency swaps
 
5,352

 
 
 
60

 
 
 
374

 
 
 
(314
)
 
Foreign currency options
 
266

 
 
 
2

 
 
 
2

 
 
 
0

 
Credit default swaps
 
337

 
 
 
(54
)
 
 
 
2

 
 
 
(56
)
 
Total non-qualifying strategies
 
6,291

 
 
 
33

 
 
 
404

 
 
 
(371
)
 
Total derivatives
 
$
15,085

 
 
 
$
(213
)
 
 
 
$
430

 
 
 
$
(643
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
4,831

 
 
 
$
430

 
 
 
$
430

 
 
 
$
0

 
Other liabilities
 
10,254

 
 
 
(643
)
 
 
 
0

 
 
 
(643
)
 
Total derivatives
 
$
15,085

 
 
 
$
(213
)
 
 
 
$
430

 
 
 
$
(643
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
December 31, 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
 
$
64

 
 
 
$
0

 
 
 
$
0

 
 
 
$
0

 
Foreign currency swaps
 
75

 
 
 
14

 
 
 
14

 
 
 
0

 
Total cash flow hedges
 
139

 
 
 
14

 
 
 
14

 
 
 
0

 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
6,944

 
 
 
(535
)
 
 
 
0

 
 
 
(535
)
 
Total fair value hedges
 
6,944

 
 
 
(535
)
 
 
 
0

 
 
 
(535
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
355

 
 
 
29

 
 
 
32

 
 
 
(3
)
 
Foreign currency swaps
 
5,577

 
 
 
(32
)
 
 
 
297

 
 
 
(329
)
 
Credit default swaps
 
355

 
 
 
(65
)
 
 
 
2

 
 
 
(67
)
 
Total non-qualifying strategies
 
6,287

 
 
 
(68
)
 
 
 
331

 
 
 
(399
)
 
Total derivatives
 
$
13,370

 
 
 
$
(589
)
 
 
 
$
345

 
 
 
$
(934
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
2,585

 
 
 
$
345

 
 
 
$
345

 
 
 
$
0

 
Other liabilities
 
10,785

 
 
 
(934
)
 
 
 
0

 
 
 
(934
)
 
Total derivatives
 
$
13,370

 
 
 
$
(589
)
 
 
 
$
345

 
 
 
$
(934
)
 
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)
Derivative Gain (Loss) 
Recognized in Other 
Comprehensive Income
(Effective Portion)
 
Derivative Gains (Losses)
Recognized in Income
(Ineffective Portion)
Three Months Ended March 31, 2013:
 
 
 
 
 
 
 
   Foreign currency swaps
 
$
(7
)
 
 
 
$
(1
)
 
Total
 
$
(7
)
 
 
 
$
(1
)
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2012:
 
 
 
 
 
 
 
   Foreign currency swaps
 
$
(12
)
 
 
 
$
0

 
Total
 
$
(12
)
 
 
 
$
0

 
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.
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 Months Ended March 31, 2013:(1)
 
 
 
 
 
 
Foreign currency
forwards
Fixed-maturity securities
 
$
(609
)
 
$
(5
)
 
$
(604
)
 
$
603

 
$
(1
)
(1) Fair value hedging program began in September 2012
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
Derivative Gains (Losses) Recognized in Income
 
Three Months Ended
March 31,
(In millions)
2013
 
2012
Interest rate swaps
 
$
(4
)
 
 
 
$
(3
)
 
Foreign currency swaps
 
84

 
 
 
50

 
Foreign currency options
 
2

 
 
 
0

 
Credit default swaps
 
12

 
 
 
33

 
Total
 
$
94

 
 
 
$
80

 
Offsetting Assets [Table Text Block]
Offsetting of Financial Instruments and Derivatives

The tables below summarize the balance sheet offsetting of financial instruments. Our financial instruments that are subject to balance sheet offsetting consist of derivatives (interest rate swaps, foreign currency swaps, foreign currency forwards, foreign currency options, and credit default swaps) and security lending transactions (see Note 3). In accordance with GAAP, our policy is to not offset financial instruments in the Consolidated Balance Sheets.

Offsetting of Financial Assets and Derivative Assets
 
March 31, 2013
(In millions)
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
 
Description
Carrying Value of Financial Instruments
 
Cash Collateral Received
 
Net Amount
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
251

 
 
 
$
0

 
 
 
$
251

 
Foreign currency forwards
 
19

 
 
 
0

 
 
 
19

 
Foreign currency options
 
2

 
 
 
0

 
 
 
2

 
    Total derivative assets, subject to a
master netting arrangement or
offsetting arrangement
 
272

 
 
 
0

 
 
 
272

 
Securities lending and similar
arrangements
 
202

 
 
 
(207
)
 
 
 
(5
)
 
    Total
 
$
474

 
 
 
$
(207
)
 
 
 
$
267

 

 
December 31, 2012
(In millions)
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
 
Description
Carrying Value of Financial Instruments
 
Cash Collateral Received
 
Net Amount
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
154

 
 
 
$
0

 
 
 
$
154

 
    Total derivative assets, subject to a
master netting arrangement or
offsetting arrangement
 
154

 
 
 
0

 
 
 
154

 
Securities lending and similar
arrangements
 
6,122

 
 
 
(6,277
)
 
 
 
(155
)
 
    Total
 
$
6,276

 
 
 
$
(6,277
)
 
 
 
$
(1
)
 
OffsettingLiabilitiesTable [Table Text Block]
Offsetting of Financial Liabilities and Derivative Liabilities
 
March 31, 2013
(In millions)
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
 
Description
Carrying Value of Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
$
(272
)
 
 
 
$
0

 
 
 
$
(272
)
 
    Total derivative liabilities, subject to a
master netting arrangement or
offsetting arrangement
 
$
(272
)
 
 
 
$
0

 
 
 
$
(272
)
 

 
December 31, 2012
(In millions)
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
 
Description
Carrying Value of Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
$
(535
)
 
 
 
$
0

 
 
 
$
(535
)
 
    Total derivative liabilities, subject to a
master netting arrangement or
offsetting arrangement
 
$
(535
)
 
 
 
$
0

 
 
 
$
(535
)