DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2016

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:



	March 31, 2016										December 31, 2015
(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		$	2,366		$	153		$	(58	)		$	2,187		$	166		$	(35	)
A		18,157			926			(199		)		19,940			510			(336		)
BBB		1,635			65			(75		)		0			0			0
Total		$	22,158		$	1,144		$	(332	)		$	22,127		$	676		$	(371	)

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, 2016
(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		$	(10	)		$	0		$	(10	)
Total cash flow hedges		75			(10		)		0			(10		)
Fair value hedges:
Foreign currency forwards		12,711			629				635			(6		)
Foreign currency options		1,485			(1		)		1			(2		)
Total fair value hedges		14,196			628				636			(8		)
Net investment hedge:
Foreign currency forwards		773			(25		)		5			(30		)
Foreign currency options		384			(18		)		4			(22		)
Total net investment hedge		1,157			(43		)		9			(52		)
Non-qualifying strategies:
Foreign currency swaps		6,580			231				493			(262		)
Foreign currency forwards		61			4				4			0
Credit default swaps		89			2				2			0
Total non-qualifying strategies		6,730			237				499			(262		)
Total derivatives		$	22,158		$	812			$	1,144		$	(332	)
Balance Sheet Location
Other assets		$	16,012		$	1,144			$	1,144		$	0
Other liabilities		6,146			(332		)		0			(332		)
Total derivatives		$	22,158		$	812			$	1,144		$	(332	)



		December 31, 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	)

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 March 31, 2016:
Foreign currency forwards	Fixed-maturity securities	$	857		$	(44	)	$	901		$	(882	)	$	19
Foreign currency options	Fixed-maturity securities	(1		)	(1		)	0			0			0
Three Months Ended March 31, 2015:
Foreign currency forwards	Fixed-maturity securities	$	37		$	(15	)	$	52		$	(39	)	$	13
Foreign currency options	Fixed-maturity securities	2			3			(1		)	1			0
Interest rate swaptions	Fixed-maturity securities	(91		)	19			(110		)	94			(16		)

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 March 31,
	2016								2015
(In millions)	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			$	3			$	0			$	(4	)
Total cash flow hedges		0				3				0				(4		)
Fair value hedges:
Foreign currency forwards ⁽²⁾		(25		)		0				(2		)		0
Foreign currency options ⁽²⁾		(1		)		0				3				0
Interest rate swaptions ⁽²⁾		0				0				3				0
Total fair value hedges		(26		)		0				4				0
Net investment hedge:
Non-derivative hedging instruments		0				(15		)		0				(1		)
Foreign currency forwards		0				(50		)		0				2
Foreign currency options		0				(16		)		0				0
Total net investment hedge		0				(81		)		0				1
Non-qualifying strategies:
Foreign currency swaps		10				0				(57		)		0
Foreign currency forwards		11				0				0				0
Credit default swaps		1				0				1				0
Interest rate swaps		0				0				3				0
Total non- qualifying strategies		22				0				(53		)		0
Total		$	(4	)		$	(78	)		$	(49	)		$	(3	)

⁽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 U.S. GAAP, our policy is to not offset these financial instruments in the Consolidated Balance Sheets.

Offsetting of Financial Assets and Derivative Assets



March 31, 2016
										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		$	493		$	0		$	493		$	0		$	(308	)			$	185
Foreign currency forwards		644			0			644			0			(630		)			14
Foreign currency options		5			0			5			0			0					5
Credit default swaps		2			0			2			0			0					2
Total derivative assets, subject to a master netting arrangement or offsetting arrangement		1,144			0			1,144			0			(938		)	⁽¹⁾		206
Securities lending and similar arrangements		790			0			790			0			(790		)			0
Total		$	1,934		$	0		$	1,934		$	0		$	(1,728	)			$	206

⁽¹⁾ Consists of $661 of pledged securities and $277 of cash.



December 31, 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.

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities



March 31, 2016
												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		$	(272	)		$	0		$	(272	)		$	0		$	33			$	(239	)
Foreign currency forwards		(36		)		0			(36		)		0			24				(12		)
Foreign currency options		(24		)		0			(24		)		0			17				(7		)
Total derivative liabilities, subject to a master netting arrangement or offsetting arrangement		(332		)		0			(332		)		0			74		⁽¹⁾		(258		)
Securities lending and similar arrangements		(830		)		0			(830		)		790			0				(40		)
Total		$	(1,162	)		$	0		$	(1,162	)		$	790		$	74			$	(298	)

⁽¹⁾ Consists entirely of cash.



December 31, 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.