DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk

The counterparties to these derivatives are financial institutions with the following credit ratings:



	June 30, 2015										December 31, 2014
(In millions)	Notional Amount of Derivatives			Asset Derivatives Fair Value			Liability Derivatives Fair Value				Notional Amount of Derivatives			Asset Derivatives Fair Value			Liability Derivatives Fair Value
Counterparties' credit rating:
AA		$	2,592		$	220		$	(32	)		$	1,098		$	39		$	(36	)
A		23,277			532			(470		)		22,564			763			(2,387		)
Total		$	25,869		$	752		$	(502	)		$	23,662		$	802		$	(2,423	)

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.



		June 30, 2015
(In millions)	Net Derivatives							Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value				Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps		$	75		$	(17	)		$	0		$	(17	)
Total cash flow hedges		75			(17		)		0			(17		)
Fair value hedges:
Foreign currency forwards		12,980			(114		)		54			(168		)
Foreign currency options		1,250			0				0			0
Total fair value hedges		14,230			(114		)		54			(168		)
Net investment hedge:
Foreign currency forwards		1,997			81				85			(4		)
Total net investment hedge		1,997			81				85			(4		)
Non-qualifying strategies:
Foreign currency swaps		6,586			300				609			(309		)
Foreign currency forwards		2,899			(1		)		3			(4		)
Credit default swaps		82			1				1			0
Total non-qualifying strategies		9,567			300				613			(313		)
Total derivatives		$	25,869		$	250			$	752		$	(502	)
Balance Sheet Location
Other assets		$	13,372		$	752			$	752		$	0
Other liabilities		12,497			(502		)		0			(502		)
Total derivatives		$	25,869		$	250			$	752		$	(502	)



		December 31, 2014
(In millions)	Net Derivatives							Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value				Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps		$	75		$	(15	)		$	0		$	(15	)
Total cash flow hedges		75			(15		)		0			(15		)
Fair value hedges:
Foreign currency forwards		12,388			(1,791		)		0			(1,791		)
Foreign currency options		697			(32		)		0			(32		)
Interest rate swaptions		2,502			(159		)		0			(159		)
Total fair value hedges		15,587			(1,982		)		0			(1,982		)
Net investment hedge:
Foreign currency forwards		1,307			54				56			(2		)
Total net investment hedge		1,307			54				56			(2		)
Non-qualifying strategies:
Foreign currency swaps		5,765			443				746			(303		)
Foreign currency forwards		784			(119		)		0			(119		)
Foreign currency options		53			(1		)		0			(1		)
Credit default swaps		83			0				0			0
Interest rate swaptions		8			(1		)		0			(1		)
Total non-qualifying strategies		6,693			322				746			(424		)
Total derivatives		$	23,662		$	(1,621	)		$	802		$	(2,423	)
Balance Sheet Location
Other assets		$	6,531		$	802			$	802		$	0
Other liabilities		17,131			(2,423		)		0			(2,423		)
Total derivatives		$	23,662		$	(1,621	)		$	802		$	(2,423	)

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			Gains (Losses)			Ineffectiveness Recognized for Fair Value Hedge
Three Months Ended June 30, 2015:
Foreign currency forwards	Fixed-maturity securities	$	(267	)	$	(17	)	$	(250	)	$	244		$	(6	)
Foreign currency options	Fixed-maturity securities	(5		)	1			(6		)	6			0
Interest rate swaptions	Fixed-maturity securities	(4		)	0			(4		)	5			1
Six Months Ended June 30, 2015:
Foreign currency forwards	Fixed-maturity securities	$	(230	)	$	(32	)	$	(198	)	$	205		$	7
Foreign currency options	Fixed-maturity securities	(3		)	4			(7		)	7			0
Interest rate swaptions	Fixed-maturity securities	(95		)	19			(114		)	99			(15		)
Three Months Ended June 30, 2014:
Foreign currency forwards	Fixed-maturity securities	$	199		$	(25	)	$	224		$	(204	)	$	20
Foreign currency options	Fixed-maturity securities	1			1			0			0			0
Interest rate swaptions	Fixed-maturity securities	(81		)	2			(83		)	90			7
Six Months Ended June 30, 2014:
Foreign currency forwards	Fixed-maturity securities	$	463		$	(35	)	$	498		$	(473	)	$	25
Foreign currency options	Fixed-maturity securities	1			1			0			0			0
Interest rate swaptions	Fixed-maturity securities	(135		)	(22		)	(113		)	122			9

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Impact of Derivatives and Hedging Instruments

The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.



	Three Months Ended June 30,															Six Months Ended June 30,
	2015							2014								2015								2014
(In millions)	Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)⁽¹⁾			Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)⁽¹⁾				Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)⁽¹⁾				Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)⁽¹⁾
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps		$	0			$	2		$	0			$	2			$	0			$	(2	)		$	(1	)		$	1
Total cash flow hedges		0				2			0				2				0				(2		)		(1		)		1
Fair value hedges:
Foreign currency forwards⁽²⁾		(23		)		0			(5		)		0				(25		)		0				(10		)		0
Foreign currency options ⁽²⁾		1				0			1				0				4				0				1				0
Interest rate swaptions⁽²⁾		1				0			9				0				4				0				(13		)		0
Total fair value hedges		(21		)		0			5				0				(17		)		0				(22		)		0
Net investment hedge:
Non- derivative hedging instruments		0				6			0				(11		)		0				5				0				(28		)
Foreign currency forwards		0				32			0				(7		)		0				34				0				(13		)
Foreign currency options		0				0			0				(2		)		0				0				0				(3		)
Total net investment hedge		0				38			0				(20		)		0				39				0				(44		)
Non-qualifying strategies:
Foreign currency swaps		55				0			24				0				(2		)		0				4				0
Foreign currency forwards		(1		)		0			0				0				(1		)		0				0				0
Credit default swaps		0				0			1				0				1				0				3				0
Interest rate swaps		2				0			2				0				5				0				1				0
Futures		0				0			1				0				0				0				(35		)		0
Total non- qualifying strategies		56				0			28				0				3				0				(27		)		0
Total		$	35			$	40		$	33			$	(18	)		$	(14	)		$	37			$	(50	)		$	(43	)

⁽¹⁾Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

⁽²⁾ Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

Offsetting Assets

The tables below summarize our derivatives and securities lending transactions, and as reflected in the tables, in accordance with GAAP, our policy is to not offset these financial instruments in the Consolidated Balance Sheets.

Offsetting of Financial Assets and Derivative Assets



June 30, 2015
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented in Balance Sheet			Carrying Value of Financial Instruments			Collateral Received					Net Amount
Derivative assets:
Foreign currency swaps		$	609		$	0		$	609		$	0		$	(520	)			$	89
Foreign currency forwards		142			0			142			0			(104		)			38
Credit default swaps		1			0			1			0			0					1
Total derivative assets, subject to a master netting arrangement or offsetting arrangement		752			0			752			0			(624		)	⁽¹⁾		128
Securities lending and similar arrangements		1,003			0			1,003			0			(1,003		)			0
Total		$	1,755		$	0		$	1,755		$	0		$	(1,627	)			$	128

⁽¹⁾ Consists entirely of cash.



December 31, 2014
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented in Balance Sheet			Carrying Value of Financial Instruments			Collateral Received					Net Amount
Derivative assets:
Foreign currency swaps		$	746		$	0		$	746		$	0		$	(568	)			$	178
Foreign currency forwards		56			0			56			0			(51		)			5
Total derivative assets, subject to a master netting arrangement or offsetting arrangement		802			0			802			0			(619		)	⁽¹⁾		183
Securities lending and similar arrangements		2,149			0			2,149			0			(2,149		)			0
Total		$	2,951		$	0		$	2,951		$	0		$	(2,768	)			$	183

⁽¹⁾ Consists of $153 of pledged securities and $466 of cash.

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities



June 30, 2015
												Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities				Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented in Balance Sheet				Carrying Value of Financial Instruments			Collateral Pledged				Net Amount
Derivative liabilities:
Foreign currency swaps		$	(326	)		$	0		$	(326	)		$	0		$	0			$	(326	)
Foreign currency forwards		(176		)		0			(176		)		0			176				0
Total derivative liabilities, subject to a master netting arrangement or offsetting arrangement		(502		)		0			(502		)		0			176		⁽¹⁾		(326		)
Securities lending and similar arrangements		(1,023		)		0			(1,023		)		1,003			0				(20		)
Total		$	(1,525	)		$	0		$	(1,525	)		$	1,003		$	176			$	(346	)

⁽¹⁾ Consists entirely of pledged securities.



December 31, 2014
												Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities				Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented in Balance Sheet				Carrying Value of Financial Instruments			Collateral Pledged				Net Amount
Derivative liabilities:
Foreign currency swaps		$	(318	)		$	0		$	(318	)		$	0		$	0			$	(318	)
Foreign currency forwards		(1,912		)		0			(1,912		)		0			1,439				(473		)
Foreign currency options		(33		)		0			(33		)		0			24				(9		)
Interest rate swaptions		(160		)		0			(160		)		0			158				(2		)
Total derivative liabilities, subject to a master netting arrangement or offsetting arrangement		(2,423		)		0			(2,423		)		0			1,621		⁽¹⁾		(802		)
Securities lending and similar arrangements		(2,193		)		0			(2,193		)		2,149			0				(44		)
Total		$	(4,616	)		$	0		$	(4,616	)		$	2,149		$	1,621			$	(846	)

⁽¹⁾ Consists entirely of pledged securities.