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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements [Abstract]

Outstanding derivative instruments with off-balance-sheet risks

				As of December 31, 2012						As of December 31, 2011
				Notional		Fair Value				Notional		Fair Value
				Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
	Interest rate contracts⁽¹⁾			$	3,214	$	462	$	224	$	2,512	$	385	$	255
	Foreign currency contracts⁽¹⁾				420		39		26		340		52		14
		Total cash flow hedges			3,634		501		250		2,852		437		269
Fair value hedges:
	Interest rate contracts⁽¹⁾				875		269		-		1,675		319		-
Non-Qualifying Hedges
Interest rate contracts⁽¹⁾					36,539		1,042		475		30,232		1,041		473
Foreign currency contracts⁽¹⁾					48		-		-		4		-		-
Equity market contracts⁽¹⁾					19,857		1,734		170		16,401		2,153		57
Equity collar⁽¹⁾					9		1		-		-		-		-
Credit contracts⁽¹⁾					-		-				48		-		-
Credit contracts⁽²⁾					148		-		11		148		-		16
Embedded derivatives:
	Indexed annuity contracts⁽³⁾				-		-		732		-		-		399
	GLB reserves⁽³⁾				-		-		909		-		-		2,217
	Reinsurance related ⁽⁴⁾				-		-		215		-		-		168
			Total derivative instruments	$	61,110	$	3,547	$	2,762	$	51,360	$	3,950	$	3,599

Maturity of the notional amounts of derivative financial instruments

			Remaining Life as of December 31, 2012
			Less Than		1 – 5		6 – 10		11 – 30		Over 30
			1 Year		Years		Years		Years		Years		Total
Interest rate contracts⁽¹⁾			$	2,834	$	20,828	$	5,901	$	9,852	$	1,213	$	40,628
Foreign currency contracts⁽²⁾				48		205		200		15		-		468
Equity market contracts				10,668		4,007		5,165		23		3		19,866
Credit contracts				-		148		-		-		-		148
	Total derivative instruments
		with notional amounts	$	13,550	$	25,188	$	11,266	$	9,890	$	1,216	$	61,110

Change in our unrealized gain on derivative instruments in accumulated OCI

						For the Years Ended December 31,
						2012		2011		2010
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year						$	119	$	(11)	$	11
Cumulative effect from adoption of new accounting standards							-		-		3
Other comprehensive income (loss):
	Unrealized holding gains (losses) arising during the year:
		Cash flow hedges:
			Interest rate contracts				73		177		(47)
			Foreign currency contracts				(22)		3		14
		Fair value hedges:
			Interest rate contracts				4		4		4
		AFS securities embedded derivatives					-		-		2
	Change in foreign currency exchange rate adjustment						(12)		7		4
	Change in DAC, VOBA, DSI and DFEL						15		-		-
	Income tax benefit (expense)						(21)		(67)		7
	Less:
		Reclassification adjustment for gains (losses) included in net income (loss):
			Cash flow hedges:
				Interest rate contracts⁽¹⁾			(21)		(15)		4
				Interest rate contracts⁽²⁾			(1)		(1)		4
				Foreign currency contracts⁽¹⁾			3		2		2
			Fair value hedges:
				Interest rate contracts⁽²⁾			4		4		4
		Associated amortization of DAC, VOBA, DSI and DFEL					4		1		-
		Income tax benefit (expense)					4		3		(5)
					Balance as of end-of-year	$	163	$	119	$	(11)

Gains (losses) on derivative instruments recorded within income (loss) from continuing operations

				For the Years Ended December 31,
				2012		2011		2010
Qualifying Hedges
Cash flow hedges:
	Interest rate contracts⁽¹⁾			$	(22)	$	(15)	$	3
	Foreign currency contracts⁽¹⁾				3		2		2
		Total cash flow hedges			(18)		(13)		5
Fair value hedges:
	Interest rate contracts⁽²⁾				36		50		42
	Equity market contracts⁽³⁾				-		-		15
		Total fair value hedges			36		50		57
Non-Qualifying Hedges
Interest rate contracts⁽¹⁾					(26)		(44)		5
Interest rate contracts⁽³⁾					61		1,144		175
Foreign currency contracts⁽¹⁾					-		-		43
Foreign currency contracts⁽³⁾					(8)		(12)		(13)
Equity market contracts⁽³⁾					(1,014)		316		(386)
Equity market contracts⁽⁴⁾					(345)		21		(118)
Credit contracts⁽¹⁾					-		-		1
Credit contracts⁽³⁾					2		(7)		7
Embedded derivatives:
	Indexed annuity contracts⁽³⁾				(136)		5		(81)
	GLB reserves⁽³⁾				1,308		(1,809)		268
	Reinsurance related⁽³⁾				(47)		(66)		(71)
	AFS securities⁽¹⁾				-		-		2
			Total derivative instruments	$	(187)	$	(415)	$	(106)

Gains (losses) on derivative instruments designated as cash flow hedges

		For the Years Ended December 31,
		2012		2011		2010
Gain (loss) recognized as a component of OCI with
	the offset to net investment income	$	(19)	$	(13)	$	6

Gains (losses) on derivative instruments designated as fair value hedges

		For the Years Ended December 31,
		2012		2011		2010
Gain (loss) recognized as a component of OCI with
	the offset to interest expense	$	4	$	4	$	4

Open credit default swap liabilities

As of December 31, 2012

Credit

Reason

Nature

Rating of

Number

Maximum

for

Underlying

Fair

Potential

Maturity

Entering

Recourse

Obligation⁽¹⁾

Instruments

Value⁽²⁾

Payout

12/20/2016⁽³⁾

⁽⁴⁾

⁽⁵⁾

BBB-

(4)

03/20/2017⁽³⁾

⁽⁴⁾

⁽⁵⁾

BBB-

(7)

(11)

149

As of December 31, 2011

Credit

Reason

Nature

Rating of

Number

Maximum

for

Underlying

Fair

Potential

Maturity

Entering

Recourse

Obligation⁽¹⁾

Instruments

Value⁽²⁾

Payout

12/20/2012⁽⁶⁾

⁽⁴⁾

⁽⁵⁾

BBB+

12/20/2016⁽³⁾

⁽⁴⁾

⁽⁵⁾

BBB+

(12)

03/20/2017⁽³⁾

⁽⁴⁾

⁽⁵⁾

BBB

(4)

(16)

148

			As of December 31,
			2012		2011
Maximum potential payout			$	149	$	148
Less:
	Counterparty thresholds			-		-
		Maximum collateral potentially required to post	$	149	$	148

Collateral support agreements

	As of December 31, 2012				As of December 31, 2011
	Collateral		Collateral		Collateral		Collateral
	Posted by		Posted by		Posted by		Posted by
S&P	Counter-		LNC		Counter-		LNC
Credit	Party		(Held by		Party		(Held by
Rating of	(Held by		Counter-		(Held by		Counter-
Counterparty	LNC)		Party)		LNC)		Party)

AA	$	41	$	-	$	35	$	-
AA-		58		-		219		-
A+		605		-		848		-
A		770		(68)		1,681		(120)
A-		1,214		-		387		-
BBB		4		-		-		-
	$	2,692	$	(68)	$	3,170	$	(120)

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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+ Details