DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 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 as of December 31:



	2016										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		$	6,844		$	247		$	(308	)		$	2,187		$	166		$	(35	)
A		36,019			900			(1,621		)		19,940			510			(336		)
BBB		1,064			60			(69		)		0			0			0
Total		$	43,927		$	1,207		$	(1,998	)		$	22,127		$	676		$	(371	)

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



	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		10,965			(759		)		0			(759		)
Foreign currency options		4,224			(30		)		2			(32		)
Total fair value hedges		15,189			(789		)		2			(791		)
Net investment hedge:
Foreign currency forwards		209			3				5			(2		)
Foreign currency options		843			24				41			(17		)
Total net investment hedge		1,052			27				46			(19		)
Non-qualifying strategies:
Foreign currency swaps		6,266			270				490			(220		)
Foreign currency forwards		21,218			(289		)		667			(956		)
Foreign currency options		41			(2		)		0			(2		)
Credit default swaps		86			2				2			0
Total non-qualifying strategies		27,611			(19		)		1,159			(1,178		)
Total derivatives		$	43,927		$	(791	)		$	1,207		$	(1,998	)
Balance Sheet Location
Other assets		$	18,329		$	1,207			$	1,207		$	0
Other liabilities		25,598			(1,998		)		0			(1,998		)
Total derivatives		$	43,927		$	(791	)		$	1,207		$	(1,998	)



	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 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
2016:
Foreign currency forwards	Fixed-maturity securities and equity securities	$	207		$	(338	)	$	545		$	(566	)	$	(21	)
Foreign currency options	Fixed-maturity securities	(95		)	(18		)	(77		)	70			(7		)
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

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.



	2016								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⁾
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps		$	1			$	3			$	0			$	0		$	(2	)		$	(17	)
Total cash flow hedges		1				3				0				0			(2		)		(17		)
Fair value hedges:
Foreign currency forwards ⁽²⁾		(359		)		0				(138		)		0			(16		)		0
Foreign currency options ⁽²⁾		(25		)		0				3				0			(3		)		0
Interest rate swaptions ⁽²⁾		0				0				4				0			(2		)		0
Total fair value hedges		(384		)		0				(131		)		0			(21		)		0
Net investment hedge:
Non-derivative hedging instruments		0				0				0				3			0				39
Foreign currency forwards		0				(118		)		0				4			0				89
Foreign currency options		0				73				0				0			0				(3		)
Total net investment hedge		0				(45		)		0				7			0				125
Non-qualifying strategies:
Foreign currency swaps		117				0				16				0			151				0
Foreign currency forwards		9				0				100				0			(11		)		0
Credit default swaps		2				0				1				0			3				0
Interest rate swaps		0				0				5				0			(1		)		0
Interest rate swaptions		0				0				0				0			1				0
Futures		0				0				(1		)		0			(89		)		0
Total non- qualifying strategies		128				0				121				0			54				0
Total		$	(255	)		$	(42	)		$	(10	)		$	7		$	31			$	108

⁽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



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			Financial Instruments				Securities Collateral		Cash Collateral Received				Net Amount
Derivative assets:
Derivative assets subject to a master netting agreement or offsetting arrangement		$	1,080		$	0		$	1,080		$	(698	)	$	0		$	(382	)		$	0
Derivative assets not subject to a master netting agreement or offsetting arrangement		127						127													127
Total derivative assets		1,207			0			1,207			(698		)	0			(382		)		127
Securities lending and similar arrangements		513			0			513			0			0			(513		)		0
Total		$	1,720		$	0		$	1,720		$	(698	)	$	0		$	(895	)		$	127



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			Financial Instruments				Securities Collateral				Cash Collateral Received				Net Amount
Derivative assets:
Derivative assets subject to a master netting agreement or offsetting arrangement		$	574		$	0		$	574		$	(51	)		$	(190	)		$	(326	)		$	7
Derivative assets not subject to a master netting agreement or offsetting arrangement		102						102															102
Total derivative assets		676			0			676			(51		)		(190		)		(326		)		109
Securities lending and similar arrangements		921			0			921			0				0				(921		)		0
Total		$	1,597		$	0		$	1,597		$	(51	)		$	(190	)		$	(1,247	)		$	109

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities



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				Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative liabilities:
Derivative liabilities subject to a master netting agreement or offsetting arrangement		$	(1,852	)		$	0		$	(1,852	)		$	698	$	1,130		$	21		$	(3	)
Derivative liabilities not subject to a master netting agreement or offsetting arrangement		(146		)					(146		)										(146		)
Total derivative liabilities		(1,998		)		0			(1,998		)		698		1,130			21			(149		)
Securities lending and similar arrangements		(526		)		0			(526		)		513		0			0			(13		)
Total		$	(2,524	)		$	0		$	(2,524	)		$	1,211	$	1,130		$	21		$	(162	)



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				Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative liabilities:
Derivative liabilities subject to a master netting agreement or offsetting arrangement		$	(78	)		$	0		$	(78	)		$	51	$	18		$	3		$	(6	)
Derivative liabilities not subject to a master netting agreement or offsetting arrangement		(293		)					(293		)										$	(293	)
Total derivative liabilities		(371		)		0			(371		)		51		18			3			(299		)
Securities lending and similar arrangements		(941		)		0			(941		)		921		0			0			(20		)
Total		$	(1,312	)		$	0		$	(1,312	)		$	972	$	18		$	3		$	(319	)