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DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
  
 
June 30, 2018
 
 
December 31, 2017
 
 
(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

 
 
 
$
1

 
 
 
$
(4
)
 
 
$
75

 
 
 
$
0

 
 
 
$
(8
)
 
 
Total cash flow hedges
 
75

 
 
 
1

 
 
 
(4
)
 
 
75

 
 
 
0

 
 
 
(8
)
 
 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
3,310

 
 
 
17

 
 
 
(3
)
 
 
7,640

 
 
 
2

 
 
 
(221
)
 
 
Foreign currency options
 
9,225

 
 
 
0

 
 
 
(5
)
 
 
7,670

 
 
 
0

 
 
 
(2
)
 
 
Total fair value hedges
 
12,535

 
 
 
17

 
 
 
(8
)
 
 
15,310

 
 
 
2

 
 
 
(223
)
 
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
0

 
 
 
0

 
 
 
0

 
 
5

 
 
 
0

 
 
 
0

 
 
Foreign currency options
 
0

 
 
 
0

 
 
 
0

 
 
434

 
 
 
12

 
 
 
(1
)
 
 
Total net investment hedge
 
0

 
 
 
0

 
 
 
0

 
 
439

 
 
 
12

 
 
 
(1
)
 
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
5,390

 
 
 
320

 
 
 
(223
)
 
 
5,386

 
 
 
296

 
 
 
(189
)
 
 
Foreign currency forwards
 
10,410

 
 
 
119

 
 
 
(132
)
 
 
3,683

 
 
 
20

 
 
 
(53
)
 
 
Foreign currency options
 
303

 
 
 
0

 
 
 
0

 
 
770

 
 
 
0

 
 
 
0

 
 
Credit default swaps
 
90

 
 
 
0

 
 
 
0

 
 
88

 
 
 
1

 
 
 
0

 
 
Total non-qualifying strategies
 
16,193

 
 
 
439

 
 
 
(355
)
 
 
9,927

 
 
 
317

 
 
 
(242
)
 
 
Total derivatives
 
$
28,803

 
 
 
$
457

 
 
 
$
(367
)
 
 
$
25,751

 
 
 
$
331

 
 
 
$
(474
)
 
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
17,559

 
 
 
$
457

 
 
 
$
0

 
 
$
10,948

 
 
 
$
331

 
 
 
$
0

 
 
Other liabilities
 
11,244

 
 
 
0

 
 
 
(367
)
 
 
14,803

 
 
 
0

 
 
 
(474
)
 
 
Total derivatives
 
$
28,803

 
 
 
$
457

 
 
 
$
(367
)
 
 
$
25,751

 
 
 
$
331

 
 
 
$
(474
)
 
 
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, 2018:
 
 
 
 
 
 
 
Foreign currency
forwards
Fixed maturity securities
 
$
(215
)
 
$
(30
)
 
$
(185
)
 
$
186

 
$
1

Foreign currency
options
Fixed maturity securities
 
(2
)
 
(2
)
 
0

 
0

 
0

Six Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
Fixed maturity securities
 
$
199

 
$
(69
)
 
$
268

 
$
(278
)
 
$
(10
)
Foreign currency options
Fixed maturity securities
 
(3
)
 
(3
)
 
0

 
0

 
0

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
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,
 
2018
2017
2018
2017
(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
)
 
 
$
0

 
 
$
(2
)
 
 
$
1

 
 
$
4

 
 
$
0

 
 
$
1

 
  Total cash flow
    hedges
 
0

 
 
(2
)
 
 
0

 
 
(2
)
 
 
1

 
 
4

 
 
0

 
 
1

 
  Fair value
    hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign
         currency
         forwards(2)
 
(29
)
 
 

 
 
(49
)
 
 

 
 
(79
)
 
 

 
 
(80
)
 
 

 
       Foreign
         currency
         options(2)
 
(2
)
 
 


 
 
(7
)
 
 

 
 
(3
)
 
 


 
 
7

 
 

 
  Total fair value
    hedges
 
(31
)
 
 


 
 
(56
)
 
 

 
 
(82
)
 
 

 
 
(73
)
 
 

 
  Net investment
    hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Non-
         derivative
         hedging
         instruments
 
0

 
 
55

 
 
0

 
 
(1
)
 
 
0

 
 
(29
)
 
 
0

 
 
(18
)
 
       Foreign
         currency
         forwards
 
0

 
 
0

 
 
0

 
 
(19
)
 
 
0

 
 
0

 
 
0

 
 
(28
)
 
       Foreign
         currency
         options
 
0

 
 
0

 
 
0

 
 
31

 
 
0

 
 
(8
)
 
 
0

 
 
8

 
  Total net
    investment
    hedge
 
0

 
 
55

 
 
0

 
 
11

 
 
0

 
 
(37
)
 
 
0

 
 
(38
)
 
  Non-qualifying
    strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign
         currency
         swaps
 
14

 
 

 
 
34

 
 

 
 
28

 
 

 
 
26

 
 

 
       Foreign
         currency
         forwards
 
(154
)
 
 


 
 
(29
)
 
 


 
 
25

 
 


 
 
(56
)
 
 


 
       Foreign
         currency
         options
 
(1
)
 
 

 
 
0

 
 

 
 
0

 
 

 
 
0

 
 

 
  Total non-
    qualifying
    strategies
 
(141
)
 
 


 
 
5

 
 

 
 
53

 
 


 
 
(30
)
 
 

 
          Total
 
$
(172
)
 
 
$
53

 
 
$
(51
)
 
 
$
9

 
 
$
(28
)
 
 
$
(33
)
 
 
$
(103
)
 
 
$
(37
)
 
(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, 2018
December 31, 2017
(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
 
$
5,122

 
 
$
78

 
 
$
(12
)
 
 
$
4,708

 
 
$
52

 
 
$
(37
)
 
A
 
23,237

 
 
375

 
 
(302
)
 
 
20,604

 
 
271

 
 
(370
)
 
BBB
 
444

 
 
4

 
 
(53
)
 
 
439

 
 
8

 
 
(67
)
 
Total
 
$
28,803

 
 
$
457

 
 
$
(367
)
 
 
$
25,751

 
 
$
331

 
 
$
(474
)
 
Offsetting Assets

Offsetting of Financial Assets and Derivative Asset
June 30, 2018
 
 
 
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
 
$
255

 
 
 
$
0

 
 
 
$
255

 
 
 
$
(138
)
 
 
$
(32
)
 
 
$
(82
)
 
 
 
$
3

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
202

 
 
 
 
 
 
 
202

 
 
 
 
 
 
 
 
 
 
 
 
 
202

 
    Total derivative
      assets
 
457

 
 
 
0

 
 
 
457

 
 
 
(138
)
 
 
(32
)
 
 
(82
)
 
 
 
205

 
Securities lending
   and similar
   arrangements
 
3,638

 
 
 
0

 
 
 
3,638

 
 
 
0

 
 
0

 
 
(3,638
)
 
 
 
0

 
    Total
 
$
4,095

 
 
 
$
0

 
 
 
$
4,095

 
 
 
$
(138
)
 
 
$
(32
)
 
 
$
(3,720
)
 
 
 
$
205

 

December 31, 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

 
Offsetting Liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
June 30, 2018
 
 
 
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
 
$
(276
)
 
 
 
$
0

 
 
 
$
(276
)
 
 
 
$
138

 
 
$
73

 
 
$
51

 
 
 
$
(14
)
 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(91
)
 
 
 
 
 
 
 
(91
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(91
)
 
    Total derivative
      liabilities
 
(367
)
 
 
 
0

 
 
 
(367
)
 
 
 
138

 
 
73

 
 
51

 
 
 
(105
)
 
Securities lending
   and similar
   arrangements
 
(3,712
)
 
 
 
0

 
 
 
(3,712
)
 
 
 
3,638

 
 
0

 
 
0

 
 
 
(74
)
 
    Total
 
$
(4,079
)
 
 
 
$
0

 
 
 
$
(4,079
)
 
 
 
$
3,776

 
 
$
73

 
 
$
51

 
 
 
$
(179
)
 


December 31, 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
)