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DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
 
2017
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
 
7,640

 
 
 
2

 
 
 
(221
)
 
 
10,965

 
 
 
0

 
 
 
(759
)
 
Foreign currency options
 
7,670

 
 
 
0

 
 
 
(2
)
 
 
4,224

 
 
 
2

 
 
 
(32
)
 
Total fair value hedges
 
15,310

 
 
 
2

 
 
 
(223
)
 
 
15,189

 
 
 
2

 
 
 
(791
)
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
5

 
 
 
0

 
 
 
0

 
 
209

 
 
 
5

 
 
 
(2
)
 
Foreign currency options
 
434

 
 
 
12

 
 
 
(1
)
 
 
843

 
 
 
41

 
 
 
(17
)
 
Total net investment hedge
 
439

 
 
 
12

 
 
 
(1
)
 
 
1,052

 
 
 
46

 
 
 
(19
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
5,386

 
 
 
296

 
 
 
(189
)
 
 
6,266

 
 
 
490

 
 
 
(220
)
 
Foreign currency forwards
 
3,683

 
 
 
20

 
 
 
(53
)
 
 
21,218

 
 
 
667

 
 
 
(956
)
 
Foreign currency options
 
770

 
 
 
0

 
 
 
0

 
 
41

 
 
 
0

 
 
 
(2
)
 
Credit default swaps
 
88

 
 
 
1

 
 
 
0

 
 
86

 
 
 
2

 
 
 
0

 
Total non-qualifying strategies
 
9,927

 
 
 
317

 
 
 
(242
)
 
 
27,611

 
 
 
1,159

 
 
 
(1,178
)
 
Total derivatives
 
$
25,751

 
 
 
$
331

 
 
 
$
(474
)
 
 
$
43,927

 
 
 
$
1,207

 
 
 
$
(1,998
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
10,948

 
 
 
$
331

 
 
 
$
0

 
 
$
18,329

 
 
 
$
1,207

 
 
 
$
0

 
Other liabilities
 
14,803

 
 
 
0

 
 
 
(474
)
 
 
25,598

 
 
 
0

 
 
 
(1,998
)
 
Total derivatives
 
$
25,751

 
 
 
$
331

 
 
 
$
(474
)
 
 
$
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 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
2017:
 
 
 
 
 
 
 
 
 
 
Foreign currency
forwards
Fixed-maturity and equity securities
 
$
98

 
$
(202
)
 
$
300

 
$
(278
)
 
$
22

Foreign currency
options
Fixed-maturity securities
 
21

 
10

 
11

 
(10
)
 
1

2016:
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity 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
)
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.
 
2017
2016
2015
(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

 
 
$
1

 
 
$
1

 
 
$
3

 
 
$
0

 
 
$
0

 
  Total cash flow hedges
 
0

 
 
1

 
 
1

 
 
3

 
 
0

 
 
0

 
  Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency forwards (2)
 
(180
)
 
 
0

 
 
(359
)
 
 
0

 
 
(138
)
 
 
0

 
       Foreign currency options (2)
 
11

 
 
0

 
 
(25
)
 
 
0

 
 
3

 
 
0

 
       Interest rate swaptions (2)
 
0

 
 
0

 
 
0

 
 
0

 
 
4

 
 
0

 
  Total fair value hedges
 
(169
)
 
 
0

 
 
(384
)
 
 
0

 
 
(131
)
 
 
0

 
  Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Non-derivative hedging
instruments
 
0

 
 
(15
)
 
 
0

 
 
0

 
 
0

 
 
3

 
       Foreign currency forwards
 
0

 
 
(25
)
 
 
0

 
 
(118
)
 
 
0

 
 
4

 
       Foreign currency options
 
0

 
 
5

 
 
0

 
 
73

 
 
0

 
 
0

 
   Total net investment hedge
 
0

 
 
(35
)
 
 
0

 
 
(45
)
 
 
0

 
 
7

 
  Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
53

 
 
0

 
 
117

 
 
0

 
 
16

 
 
0

 
       Foreign currency forwards
 
8

 
 
0

 
 
9

 
 
0

 
 
100

 
 
0

 
       Credit default swaps
 
(1
)
 
 
0

 
 
2

 
 
0

 
 
1

 
 
0

 
       Interest rate swaps
 
0

 
 
0

 
 
0

 
 
0

 
 
5

 
 
0

 
       Futures
 
0

 
 
0

 
 
0

 
 
0

 
 
(1
)
 
 
0

 
  Total non- qualifying strategies
 
60

 
 
0

 
 
128

 
 
0

 
 
121

 
 
0

 
          Total
 
$
(109
)
 
 
$
(34
)
 
 
$
(255
)
 
 
$
(42
)
 
 
$
(10
)
 
 
$
7

 
(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 as of December 31:
 
2017
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
 
$
4,708

 
 
$
52

 
 
$
(37
)
 
 
$
6,844

 
 
$
247

 
 
$
(308
)
 
A
 
20,604

 
 
271

 
 
(370
)
 
 
36,019

 
 
900

 
 
(1,621
)
 
BBB
 
439

 
 
8

 
 
(67
)
 
 
1,064

 
 
60

 
 
(69
)
 
Total
 
$
25,751

 
 
$
331

 
 
$
(474
)
 
 
$
43,927

 
 
$
1,207

 
 
$
(1,998
)
 
Offsetting Assets
Offsetting of Financial Assets and Derivative Assets
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
 
$
180

 
 
 
$
0

 
 
 
$
180

 
 
 
$
(82
)
 
 
$
0

 
 
$
(98
)
 
 
 
$
0

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
151

 
 
 

 
 
 
151

 
 
 

 
 


 
 

 
 
 
151

 
    Total derivative
      assets
 
331

 
 
 
0

 
 
 
331

 
 
 
(82
)
 
 
0

 
 
(98
)
 
 
 
151

 
Securities lending
   and similar
   arrangements
 
592

 
 
 
0

 
 
 
592

 
 
 
0

 
 
0

 
 
(592
)
 
 
 
0

 
    Total
 
$
923

 
 
 
$
0

 
 
 
$
923

 
 
 
$
(82
)
 
 
$
0

 
 
$
(690
)
 
 
 
$
151

 


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
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
 
$
(346
)
 
 
 
$
0

 
 
 
$
(346
)
 
 
 
$
82

 
 
$
245

 
 
$
10

 
 
 
$
(9
)
 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(128
)
 
 
 
 
 
 
 
(128
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(128
)
 
    Total derivative
      liabilities
 
(474
)
 
 
 
0

 
 
 
(474
)
 
 
 
82

 
 
245

 
 
10

 
 
 
(137
)
 
Securities lending
   and similar
   arrangements
 
(606
)
 
 
 
0

 
 
 
(606
)
 
 
 
592

 
 
0

 
 
0

 
 
 
(14
)
 
    Total
 
$
(1,080
)
 
 
 
$
0

 
 
 
$
(1,080
)
 
 
 
$
674

 
 
$
245

 
 
$
10

 
 
 
$
(151
)
 


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
)