FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.



	March 31, 2016
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies		$	23,075		$	706		$	0		$	23,781
Municipalities		0			1,270			0			1,270
Mortgage- and asset-backed securities		0			368			237			605
Public utilities		0			7,819			0			7,819
Sovereign and supranational		0			1,451			0			1,451
Banks/financial institutions		0			5,830			26			5,856
Other corporate		0			31,346			0			31,346
Total fixed maturities		23,075			48,790			263			72,128
Perpetual securities:
Banks/financial institutions		0			1,692			0			1,692
Other corporate		0			217			0			217
Total perpetual securities		0			1,909			0			1,909
Equity securities		860			6			3			869
Other assets:
Foreign currency swaps		0			381			112			493
Foreign currency forwards		0			644			0			644
Foreign currency options		0			5			0			5
Credit default swaps		0			0			2			2
Total other assets		0			1,030			114			1,144
Other investments		198			0			0			198
Cash and cash equivalents		3,449			0			0			3,449
Total assets		$	27,582		$	51,735		$	380		$	79,697
Liabilities:
Foreign currency swaps		$	0		$	97		$	175		$	272
Foreign currency forwards		0			36			0			36
Foreign currency options		0			24			0			24
Total liabilities		$	0		$	157		$	175		$	332



	December 31, 2015
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies		$	18,669		$	607		$	0		$	19,276
Municipalities		0			1,208			0			1,208
Mortgage- and asset-backed securities		0			362			220			582
Public utilities		0			7,479			0			7,479
Sovereign and supranational		0			1,407			0			1,407
Banks/financial institutions		0			5,993			26			6,019
Other corporate		0			29,378			0			29,378
Total fixed maturities		18,669			46,434			246			65,349
Perpetual securities:
Banks/financial institutions		0			1,742			0			1,742
Other corporate		0			205			0			205
Total perpetual securities		0			1,947			0			1,947
Equity securities		489			6			3			498
Other assets:
Foreign currency swaps		0			462			101			563
Foreign currency forwards		0			107			0			107
Foreign currency options		0			5			0			5
Credit default swaps		0			0			1			1
Total other assets		0			574			102			676
Other investments		176			0			0			176
Cash and cash equivalents		4,350			0			0			4,350
Total assets		$	23,684		$	48,961		$	351		$	72,996
Liabilities:
Foreign currency swaps		$	0		$	21		$	293		$	314
Foreign currency forwards		0			49			0			49
Foreign currency options		0			8			0			8
Total liabilities		$	0		$	78		$	293		$	371

Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.



	March 31, 2016
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies		$	21,409		$	27,595		$	0		$	0		$	27,595
Municipalities		365			0			487			0			487
Mortgage and asset-backed securities		37			0			13			27			40
Public utilities		3,309			0			3,520			0			3,520
Sovereign and supranational		2,735			0			2,987			0			2,987
Banks/financial institutions		4,566			0			4,731			0			4,731
Other corporate		3,094			0			3,447			0			3,447
Other investments		252			0			0			253			253
Total assets		$	35,767		$	27,595		$	15,185		$	280		$	43,060
Liabilities:
Other policyholders’ funds		$	6,781		$	0		$	0		$	6,649		$	6,649
Notes payable (excluding capital leases)		4,965			0			0			5,353			5,353
Total liabilities		$	11,746		$	0		$	0		$	12,002		$	12,002



	December 31, 2015
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies		$	20,004		$	23,391		$	0		$	0		$	23,391
Municipalities		341			0			415			0			415
Mortgage and asset-backed securities		36			0			12			26			38
Public utilities		3,092			0			3,203			0			3,203
Sovereign and supranational		2,555			0			2,711			0			2,711
Banks/financial institutions		4,431			0			4,546			0			4,546
Other corporate		3,000			0			3,216			0			3,216
Other investments		118			0			0			118			118
Total assets		$	33,577		$	23,391		$	14,103		$	144		$	37,638
Liabilities:
Other policyholders’ funds		$	6,285		$	0		$	0		$	6,160		$	6,160
Notes payable (excluding capital leases)		4,991			0			0			5,285			5,285
Total liabilities		$	11,276		$	0		$	0		$	11,445		$	11,445

Fair Value Assets Available-for-Sale Securities Primary Pricing Sources

The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities.



	March 31, 2016
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies:
Third party pricing vendor		$	23,075		$	706		$	0		$	23,781
Total government and agencies		23,075			706			0			23,781
Municipalities:
Third party pricing vendor		0			1,270			0			1,270
Total municipalities		0			1,270			0			1,270
Mortgage- and asset-backed securities:
Third party pricing vendor		0			368			0			368
Broker/other		0			0			237			237
Total mortgage- and asset-backed securities		0			368			237			605
Public utilities:
Third party pricing vendor		0			7,819			0			7,819
Total public utilities		0			7,819			0			7,819
Sovereign and supranational:
Third party pricing vendor		0			1,451			0			1,451
Total sovereign and supranational		0			1,451			0			1,451
Banks/financial institutions:
Third party pricing vendor		0			5,830			0			5,830
Broker/other		0			0			26			26
Total banks/financial institutions		0			5,830			26			5,856
Other corporate:
Third party pricing vendor		0			31,346			0			31,346
Total other corporate		0			31,346			0			31,346
Total fixed maturities		23,075			48,790			263			72,128
Perpetual securities:
Banks/financial institutions:
Third party pricing vendor		0			1,648			0			1,648
Broker/other		0			44			0			44
Total banks/financial institutions		0			1,692			0			1,692
Other corporate:
Third party pricing vendor		0			217			0			217
Total other corporate		0			217			0			217
Total perpetual securities		0			1,909			0			1,909
Equity securities:
Third party pricing vendor		860			6			0			866
Broker/other		0			0			3			3
Total equity securities		860			6			3			869
Total securities available for sale		$	23,935		$	50,705		$	266		$	74,906



	December 31, 2015
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies:
Third party pricing vendor		$	18,669		$	607		$	0		$	19,276
Total government and agencies		18,669			607			0			19,276
Municipalities:
Third party pricing vendor		0			1,208			0			1,208
Total municipalities		0			1,208			0			1,208
Mortgage- and asset-backed securities:
Third party pricing vendor		0			362			0			362
Broker/other		0			0			220			220
Total mortgage- and asset-backed securities		0			362			220			582
Public utilities:
Third party pricing vendor		0			7,479			0			7,479
Total public utilities		0			7,479			0			7,479
Sovereign and supranational:
Third party pricing vendor		0			1,407			0			1,407
Total sovereign and supranational		0			1,407			0			1,407
Banks/financial institutions:
Third party pricing vendor		0			5,993			0			5,993
Broker/other		0			0			26			26
Total banks/financial institutions		0			5,993			26			6,019
Other corporate:
Third party pricing vendor		0			29,378			0			29,378
Total other corporate		0			29,378			0			29,378
Total fixed maturities		18,669			46,434			246			65,349
Perpetual securities:
Banks/financial institutions:
Third party pricing vendor		0			1,742			0			1,742
Total banks/financial institutions		0			1,742			0			1,742
Other corporate:
Third party pricing vendor		0			205			0			205
Total other corporate		0			205			0			205
Total perpetual securities		0			1,947			0			1,947
Equity securities:
Third party pricing vendor		489			6			0			495
Broker/other		0			0			3			3
Total equity securities		489			6			3			498
Total securities available for sale		$	19,158		$	48,387		$	249		$	67,794

Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources



	December 31, 2015
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies:
Third party pricing vendor		$	23,391		$	0		$	0		$	23,391
Total government and agencies		23,391			0			0			23,391
Municipalities:
Third party pricing vendor		0			415			0			415
Total municipalities		0			415			0			415
Mortgage- and asset-backed securities:
Third party pricing vendor		0			12			0			12
Broker/other		0			0			26			26
Total mortgage- and asset-backed securities		0			12			26			38
Public utilities:
Third party pricing vendor		0			3,203			0			3,203
Total public utilities		0			3,203			0			3,203
Sovereign and supranational:
Third party pricing vendor		0			2,711			0			2,711
Total sovereign and supranational		0			2,711			0			2,711
Banks/financial institutions:
Third party pricing vendor		0			4,546			0			4,546
Total banks/financial institutions		0			4,546			0			4,546
Other corporate:
Third party pricing vendor		0			3,189			0			3,189
Broker/other		0			27			0			27
Total other corporate		0			3,216			0			3,216
Total securities held to maturity		$	23,391		$	14,103		$	26		$	37,520



	March 31, 2016
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies:
Third party pricing vendor		$	27,595		$	0		$	0		$	27,595
Total government and agencies		27,595			0			0			27,595
Municipalities:
Third party pricing vendor		0			487			0			487
Total municipalities		0			487			0			487
Mortgage- and asset-backed securities:
Third party pricing vendor		0			13			0			13
Broker/other		0			0			27			27
Total mortgage- and asset-backed securities		0			13			27			40
Public utilities:
Third party pricing vendor		0			3,520			0			3,520
Total public utilities		0			3,520			0			3,520
Sovereign and supranational:
Third party pricing vendor		0			2,987			0			2,987
Total sovereign and supranational		0			2,987			0			2,987
Banks/financial institutions:
Third party pricing vendor		0			4,731			0			4,731
Total banks/financial institutions		0			4,731			0			4,731
Other corporate:
Third party pricing vendor		0			3,447			0			3,447
Total other corporate		0			3,447			0			3,447
Total securities held to maturity		$	27,595		$	15,185		$	27		$	42,807

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Transfers between Hierarchy Levels and Level 3 Rollforward

There were no transfers between Level 1 and 2 for the three-month periods ended March 31, 2016 and 2015, respectively.

The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3.



Three Months Ended March 31, 2016
	Fixed Maturities											Perpetual Securities		Equity Securities		Derivatives ⁽¹⁾
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate		Banks/ Financial Institutions				Interest Rate Swaps		Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	220		$	0	$	0	$	26	$	0	$	0	$	3	$	0	$	(192	)	$	1	$	58
Realized investment gains (losses) included in earnings	0			0		0		0		0		0		0		0		125			1		126
Unrealized gains (losses) included in other comprehensive income (loss)	21			0		0		0		0		0		0		0		4			0		25
Purchases, issuances, sales and settlements:
Purchases	0			0		0		0		0		0		0		0		0			0		0
Issuances	0			0		0		0		0		0		0		0		0			0		0
Sales	0			0		0		0		0		0		0		0		0			0		0
Settlements	(4		)	0		0		0		0		0		0		0		0			0		(4		)
Transfers into Level 3	0			0		0		0		0		0		0		0		0			0		0
Transfers out of Level 3	0			0		0		0		0		0		0		0		0			0		0
Balance, end of period	$	237		$	0	$	0	$	26	$	0	$	0	$	3	$	0	$	(63	)	$	2	$	205
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in realized investment gains (losses)	$	0		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	125		$	1	$	126

⁽¹⁾ Derivative assets and liabilities are presented net



Three Months Ended March 31, 2015
	Fixed Maturities											Perpetual Securities		Equity Securities		Derivatives ⁽¹⁾
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate		Banks/ Financial Institutions				Interest Rate Swaps		Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	223		$	0	$	0	$	26	$	0	$	149	$	3	$	0	$	(212	)	$	0	$	189
Realized investment gains (losses) included in earnings	0			0		0		0		0		0		0		0		(83		)	1		(82		)
Unrealized gains (losses) included in other comprehensive income (loss)	(1		)	0		0		0		0		1		0		0		(4		)	0		(4		)
Purchases, issuances, sales and settlements:
Purchases	0			0		0		0		0		0		0		0		0			0		0
Issuances	0			0		0		0		0		0		0		0		0			0		0
Sales	0			0		0		0		0		0		0		0		0			0		0
Settlements	(1		)	0		0		0		0		0		0		0		16			0		15
Transfers into Level 3	0			0		0		0		0		0		0		0		0			0		0
Transfers out of Level 3	0			0		0		0		0		0		0		0		0			0		0
Balance, end of period	$	221		$	0	$	0	$	26	$	0	$	150	$	3	$	0	$	(283	)	$	1	$	118
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in realized investment gains (losses)	$	0		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	(83	)	$	1	$	(82	)

⁽¹⁾ Derivative assets and liabilities are presented net

Fair Value Inputs Assets Quantitative Information

December 31, 2015

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Assets:

Securities available for sale, carried at fair value:

Fixed maturities:

Mortgage- and asset-backed securities

220

Consensus pricing

Offered quotes

N/A

^(d)

Banks/financial institutions

Consensus pricing

Offered quotes

N/A

^(d)

Equity securities

Net asset value

Offered quotes

$1-$677 ($7)

Other assets:

Foreign currency swaps

Discounted cash flow

Interest rates (USD)

2.20% - 2.62%

^(a)

Interest rates (JPY)

.42% - 1.22%

^(b)

CDS spreads

32 - 147 bps

Foreign exchange rates

20.05%

^(c)

Discounted cash flow

Interest rates (USD)

2.20% - 2.62%

^(a)

Interest rates (JPY)

.42% - 1.22%

^(b)

Foreign exchange rates

20.05%

^(c)

Credit default swaps

Discounted cash flow

Base correlation

53.26% - 58.40%

^(e)

CDS spreads

123 bps

Recovery rate

36.87%

Total assets

351

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

(d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices

The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

March 31, 2016

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Assets:

Securities available for sale, carried at fair value:

Fixed maturities:

Mortgage- and asset-backed securities

237

Consensus pricing

Offered quotes

N/A

^(d)

Banks/financial institutions

Consensus pricing

Offered quotes

N/A

^(d)

Equity securities

Net asset value

Offered quotes

$1 - $724 ($8)

Other assets:

Foreign currency swaps

Discounted cash flow

Interest rates (USD)

1.64% - 2.14%

^(a)

Interest rates (JPY)

.15% - .60%

^(b)

CDS spreads

32 - 147 bps

Foreign exchange rates

20.34%

^(c)

Discounted cash flow

Interest rates (USD)

1.64% - 2.14%

^(a)

Interest rates (JPY)

.15% - .60%

^(b)

CDS spreads

12 - 82 bps

Discounted cash flow

Interest rates (USD)

1.64% - 2.14%

^(a)

Interest rates (JPY)

.15% - .60%

^(b)

Foreign exchange rates

20.34%

^(c)

Credit default swaps

Discounted cash flow

Base correlation

64.18% - 69.87%

^(e)

CDS spreads

84 bps

Recovery rate

36.95%

Total assets

380

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

(d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices.

Fair Value Inputs Liabilities Quantitative Information

December 31, 2015

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Liabilities:

Foreign currency swaps

158

Discounted cash flow

Interest rates (USD)

2.20% - 2.62%

^(a)

Interest rates (JPY)

.42% - 1.22%

^(b)

CDS spreads

32 - 147 bps

Foreign exchange rates

20.05%

^(c)

120

Discounted cash flow

Interest rates (USD)

2.20% - 2.62%

^(a)

Interest rates (JPY)

.42% - 1.22%

^(b)

CDS spreads

35 - 213 bps

Discounted cash flow

Interest rates (USD)

2.20% - 2.62%

^(a)

Interest rates (JPY)

.42% - 1.22%

^(b)

Foreign exchange rates

20.05%

^(c)

Total liabilities

293

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

March 31, 2016

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Liabilities:

Foreign currency swaps

119

Discounted cash flow

Interest rates (USD)

1.64% - 2.14%

^(a)

Interest rates (JPY)

.15% - .60%

^(b)

CDS spreads

32 - 147 bps

Foreign exchange rates

20.34%

^(c)

Discounted cash flow

Interest rates (USD)

1.64% - 2.14%

^(a)

Interest rates (JPY)

.15% - .60%

^(b)

CDS spreads

35 - 213 bps

Discounted cash flow

Interest rates (USD)

1.64% - 2.14%

^(a)

Interest rates (JPY)

.15% - .60%

^(b)

Foreign exchange rates

20.34%

^(c)

Total liabilities

175

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps