DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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 as of December 31:



	2015										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		$	2,187		$	166		$	(35	)		$	1,098		$	39		$	(36	)
A		19,940			510			(336		)		22,564			763			(2,387		)
Total		$	22,127		$	676		$	(371	)		$	23,662		$	802		$	(2,423	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value



	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		$	(15	)		$	0		$	(15	)
Total cash flow hedges		75			(15		)		0			(15		)
Fair value hedges:
Foreign currency forwards		13,080			45				88			(43		)
Foreign currency options		1,250			0				0			0
Total fair value hedges		14,330			45				88			(43		)
Net investment hedge:
Foreign currency forwards		763			13				19			(6		)
Foreign currency options		266			(3		)		5			(8		)
Total net investment hedge		1,029			10				24			(14		)
Non-qualifying strategies:
Foreign currency swaps		6,599			264				563			(299		)
Foreign currency forwards		11			0				0			0
Credit default swaps		83			1				1			0
Total non-qualifying strategies		6,693			265				564			(299		)
Total derivatives		$	22,127		$	305			$	676		$	(371	)
Balance Sheet Location
Other assets		$	11,413		$	676			$	676		$	0
Other liabilities		10,714			(371		)		0			(371		)
Total derivatives		$	22,127		$	305			$	676		$	(371	)



	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 for the years ended December 31.

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
2015:
Foreign currency forwards	Fixed-maturity securities	$	(133	)	$	(136	)	$	3		$	(5	)	$	(2	)
Foreign currency options	Fixed-maturity securities	(4		)	3			(7		)	7			0
Interest rate swaptions	Fixed-maturity securities	(95		)	19			(114		)	99			(15		)
2014:
Foreign currency forwards	Fixed-maturity securities	$	(1,835	)	$	(38	)	$	(1,797	)	$	1,819		$	22
Foreign currency options	Fixed-maturity securities	(41		)	(4		)	(37		)	38			1
Interest rate swaptions	Fixed-maturity securities	(318		)	(36		)	(282		)	316			34
2013:
Foreign currency forwards	Fixed-maturity securities	$	(1,735	)	$	(25	)	$	(1,710	)	$	1,700		$	(10	)
Interest rate swaptions	Fixed-maturity securities	17			17			0			0			0

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

The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments for the years ended December 31.



	2015							2014								2013
(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⁾
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps		$	0			$	0		$	(2	)		$	(17	)		$	(2	)		$	(10	)
Total cash flow hedges		0				0			(2		)		(17		)		(2		)		(10		)
Fair value hedges:
Foreign currency forwards ⁽²⁾		(138		)		0			(16		)		0				(35		)		0
Foreign currency options ⁽²⁾		3				0			(3		)		0				0				0
Interest rate swaptions ⁽²⁾		4				0			(2		)		0				17				0
Total fair value hedges		(131		)		0			(21		)		0				(18		)		0
Net investment hedge:
Non-derivative hedging instruments		0				3			0				39				0				155
Foreign currency swaps		0				0			0				0				0				(104		)
Foreign currency forwards		0				4			0				89				0				24
Foreign currency options		0				0			0				(3		)		0				4
Total net investment hedge		0				7			0				125				0				79
Non-qualifying strategies:
Foreign currency swaps		16				0			151				0				346				0
Foreign currency forwards		100				0			(11		)		0				0				0
Foreign currency options		0				0			0				0				11				0
Credit default swaps		1				0			3				0				31				0
Interest rate swaps		5				0			(1		)		0				(8		)		0
Interest rate swaptions		0				0			1				0				(29		)		0
Futures		(1		)		0			(89		)		0				(5		)		0
Total non- qualifying strategies		121				0			54				0				346				0
Total		$	(10	)		$	7		$	31			$	108			$	326			$	69

⁽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

Offsetting of Financial Assets and Derivative Assets



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		$	563		$	0		$	563		$	0		$	(313	)			$	250
Foreign currency forwards		107			0			107			0			(96		)			11
Foreign currency options		5			0			5			0			(3		)			2
Credit default swaps		1			0			1			0			0					1
Total derivative assets, subject to a master netting arrangement or offsetting arrangement		676			0			676			0			(412		)	⁽¹⁾		264
Securities lending and similar arrangements		921			0			921			0			(921		)			0
Total		$	1,597		$	0		$	1,597		$	0		$	(1,333	)			$	264

⁽¹⁾Consists of $86 of pledged securities and $326 of cash.



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



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		$	(314	)		$	0		$	(314	)		$	0		$	1			$	(313	)
Foreign currency forwards		(49		)		0			(49		)		0			18				(31		)
Foreign currency options		(8		)		0			(8		)		0			1				(7		)
Total derivative liabilities, subject to a master netting arrangement or offsetting arrangement		(371		)		0			(371		)		0			20		⁽¹⁾		(351		)
Securities lending and similar arrangements		(941		)		0			(941		)		921			0				(20		)
Total		$	(1,312	)		$	0		$	(1,312	)		$	921		$	20			$	(371	)

⁽¹⁾Consists of $17 of pledged securities and $3 of cash.



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.