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DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
  
 
June 30, 2017
 
 
December 31, 2016
 
 
(In millions)
 
 
Asset
Derivatives
 
Liability
Derivatives
 
 
Asset
Derivatives
 
Liability
Derivatives
 
Hedge Designation/ Derivative
Type
Notional
Amount
 
Fair Value
 
Fair Value
Notional
Amount
 
Fair Value
 
Fair Value
 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
75

 
 
 
$
0

 
 
 
$
(8
)
 
 
$
75

 
 
 
$
0

 
 
 
$
(10
)
 
 
Total cash flow hedges
 
75

 
 
 
0

 
 
 
(8
)
 
 
75

 
 
 
0

 
 
 
(10
)
 
 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
9,268

 
 
 
0

 
 
 
(469
)
 
 
10,965

 
 
 
0

 
 
 
(759
)
 
 
Foreign currency options
 
5,585

 
 
 
0

 
 
 
(6
)
 
 
4,224

 
 
 
2

 
 
 
(32
)
 
 
Total fair value hedges
 
14,853

 
 
 
0

 
 
 
(475
)
 
 
15,189

 
 
 
2

 
 
 
(791
)
 
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
287

 
 
 
2

 
 
 
(3
)
 
 
209

 
 
 
5

 
 
 
(2
)
 
 
Foreign currency options
 
926

 
 
 
20

 
 
 
(10
)
 
 
843

 
 
 
41

 
 
 
(17
)
 
 
Total net investment hedge
 
1,213

 
 
 
22

 
 
 
(13
)
 
 
1,052

 
 
 
46

 
 
 
(19
)
 
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
5,882

 
 
 
307

 
 
 
(191
)
 
 
6,266

 
 
 
490

 
 
 
(220
)
 
 
Foreign currency forwards
 
10,676

 
 
 
212

 
 
 
(434
)
 
 
21,218

 
 
 
667

 
 
 
(956
)
 
 
Foreign currency options
 
0

 
 
 
0

 
 
 
0

 
 
41

 
 
 
0

 
 
 
(2
)
 
 
Credit default swaps
 
89

 
 
 
2

 
 
 
0

 
 
86

 
 
 
2

 
 
 
0

 
 
Total non-qualifying strategies
 
16,647

 
 
 
521

 
 
 
(625
)
 
 
27,611

 
 
 
1,159

 
 
 
(1,178
)
 
 
Total derivatives
 
$
32,788

 
 
 
$
543

 
 
 
$
(1,121
)
 
 
$
43,927

 
 
 
$
1,207

 
 
 
$
(1,998
)
 
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
12,108

 
 
 
$
543

 
 
 
$
0

 
 
$
18,329

 
 
 
$
1,207

 
 
 
$
0

 
 
Other liabilities
 
20,680

 
 
 
0

 
 
 
(1,121
)
 
 
25,598

 
 
 
0

 
 
 
(1,998
)
 
 
Total derivatives
 
$
32,788

 
 
 
$
543

 
 
 
$
(1,121
)
 
 
$
43,927

 
 
 
$
1,207

 
 
 
$
(1,998
)
 
 
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, 2017:
 
 
 
 
 
 
 
Foreign currency
forwards
Fixed-maturity and equity securities
 
$
(34
)
 
$
(50
)
 
$
16

 
$
(15
)
 
$
1

Foreign currency
options
Fixed-maturity securities
 
(7
)
 
(7
)
 
0

 
0

 
0

Six Months Ended June 30, 2017:
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity and equity securities
 
$
307

 
$
(98
)
 
$
405

 
$
(387
)
 
$
18

Foreign currency options
Fixed-maturity securities
 
17

 
6

 
11

 
(10
)
 
1

Three Months Ended June 30, 2016:
 
 
 
 
 
 
 
 
 
 
Foreign currency
forwards
Fixed-maturity securities
 
$
1,156

 
$
(48
)
 
$
1,204

 
$
(1,236
)
 
$
(32
)
Foreign currency options
Fixed-maturity securities
 
7

 
7

 
0

 
0

 
0

Six Months Ended June 30, 2016:
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity securities
 
$
2,013

 
$
(92
)
 
$
2,105

 
$
(2,118
)
 
$
(13
)
Foreign currency options
Fixed-maturity securities
 
6

 
6

 
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.

 
  Three Months Ended June 30,
Six Months Ended June 30,
 
2017
2016
2017
2016
(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
)
 
 
$
1

 
 
$
8

 
 
$
0

 
 
$
1

 
 
$
1

 
 
$
11

 
  Total cash flow
    hedges
 
0

 
 
(2
)
 
 
1

 
 
8

 
 
0

 
 
1

 
 
1

 
 
11

 
  Fair value
    hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign
          currency
          forwards(2)
 
(49
)
 
 
0

 
 
(80
)
 
 
0

 
 
(80
)
 
 
0

 
 
(105
)
 
 
0

 
       Foreign
          currency
          options(2)
 
(7
)
 
 
0

 
 
7

 
 
0

 
 
7

 
 
0

 
 
6

 
 
0

 
  Total fair value
    hedges
 
(56
)
 
 
0

 
 
(73
)
 
 
0

 
 
(73
)
 
 
0

 
 
(99
)
 
 
0

 
  Net investment
    hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Non-
          derivative
          hedging
          instruments
 
0

 
 
(1
)
 
 
0

 
 
(22
)
 
 
0

 
 
(18
)
 
 
0

 
 
(37
)
 
       Foreign
          currency
          forwards
 
0

 
 
(19
)
 
 
0

 
 
(83
)
 
 
0

 
 
(28
)
 
 
0

 
 
(133
)
 
       Foreign
          currency
          options
 
0

 
 
31

 
 
0

 
 
(15
)
 
 
0

 
 
8

 
 
0

 
 
(31
)
 
  Total net
    investment
    hedge
 
0

 
 
11

 
 
0

 
 
(120
)
 
 
0

 
 
(38
)
 
 
0

 
 
(201
)
 
  Non-qualifying
    strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign
          currency
          swaps
 
34

 
 
0

 
 
(104
)
 
 
0

 
 
26

 
 
0

 
 
(94
)
 
 
0

 
       Foreign
          currency
          forwards
 
(29
)
 
 
0

 
 
10

 
 
0

 
 
(56
)
 
 
0

 
 
21

 
 
0

 
       Credit
          default
          swaps
 
0

 
 
0

 
 
(1
)
 
 
0

 
 
0

 
 
0

 
 
0

 
 
0

 
  Total non-
    qualifying
    strategies
 
5

 
 
0

 
 
(95
)
 
 
0

 
 
(30
)
 
 
0

 
 
(73
)
 
 
0

 
          Total
 
$
(51
)
 
 
$
9

 
 
$
(167
)
 
 
$
(112
)
 
 
$
(103
)
 
 
$
(37
)
 
 
$
(171
)
 
 
$
(190
)
 
(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)
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, 2017
December 31, 2016
(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
 
$
24,508

 
 
$
385

 
 
$
(977
)
 
 
$
6,844

 
 
$
247

 
 
$
(308
)
 
A
 
7,839

 
 
149

 
 
(76
)
 
 
36,019

 
 
900

 
 
(1,621
)
 
BBB
 
441

 
 
9

 
 
(68
)
 
 
1,064

 
 
60

 
 
(69
)
 
Total
 
$
32,788

 
 
$
543

 
 
$
(1,121
)
 
 
$
43,927

 
 
$
1,207

 
 
$
(1,998
)
 
Offsetting Assets

Offsetting of Financial Assets and Derivative Asset
June 30, 2017
 
 
 
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
 
$
401

 
 
 
$
0

 
 
 
$
401

 
 
 
$
(285
)
 
 
$
0

 
 
$
(114
)
 
 
 
$
2

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
142

 
 
 
 
 
 
 
142

 
 
 
 
 
 
 
 
 
 
 
 
 
142

 
    Total derivative
      assets
 
543

 
 
 
0

 
 
 
543

 
 
 
(285
)
 
 
0

 
 
(114
)
 
 
 
144

 
Securities lending
   and similar
   arrangements
 
647

 
 
 
0

 
 
 
647

 
 
 
0

 
 
0

 
 
(647
)
 
 
 
0

 
    Total
 
$
1,190

 
 
 
$
0

 
 
 
$
1,190

 
 
 
$
(285
)
 
 
$
0

 
 
$
(761
)
 
 
 
$
144

 

December 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
 
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

 
Offsetting Liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
June 30, 2017
 
 
 
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
 
$
(988
)
 
 
 
$
0

 
 
 
$
(988
)
 
 
 
$
285

 
 
$
697

 
 
$
7

 
 
 
$
1

 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(133
)
 
 
 
 
 
 
 
(133
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(133
)
 
    Total derivative
      liabilities
 
(1,121
)
 
 
 
0

 
 
 
(1,121
)
 
 
 
285

 
 
697

 
 
7

 
 
 
(132
)
 
Securities lending
   and similar
   arrangements
 
(663
)
 
 
 
0

 
 
 
(663
)
 
 
 
647

 
 
0

 
 
0

 
 
 
(16
)
 
    Total
 
$
(1,784
)
 
 
 
$
0

 
 
 
$
(1,784
)
 
 
 
$
932

 
 
$
697

 
 
$
7

 
 
 
$
(148
)
 


December 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
 
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
)