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Investments (Tables)

6 Months Ended

Jun. 30, 2013

Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value



	As of June 30, 2013
	Amortized		Gross Unrealized						Fair
	Cost		Gains		Losses		OTTI		Value
Fixed maturity securities:
Corporate bonds	$	63,980	$	4,978	$	929	$	91	$	67,938
U.S. government bonds		378		36		6		-		408
Foreign government bonds		508		56		-		-		564
Residential mortgage-backed securities ("RMBS")		4,816		312		10		40		5,078
Commercial mortgage-backed securities ("CMBS")		857		46		3		17		883
Collateralized debt obligations ("CDOs")		174		-		2		7		165
State and municipal bonds		3,622		442		16		-		4,048
Hybrid and redeemable preferred securities		1,134		90		73		-		1,151
VIEs' fixed maturity securities		680		18		-		-		698
Total fixed maturity securities		76,149		5,978		1,039		155		80,933
Equity securities		192		18		1		-		209
Total AFS securities	$	76,341	$	5,996	$	1,040	$	155	$	81,142



	As of December 31, 2012
	Amortized		Gross Unrealized						Fair
	Cost		Gains		Losses		OTTI		Value
Fixed maturity securities:
Corporate bonds	$	60,124	$	8,219	$	219	$	108	$	68,016
U.S. government bonds		383		59		-		-		442
Foreign government bonds		562		92		-		-		654
RMBS		5,763		471		3		60		6,171
CMBS		970		68		16		19		1,003
CDOs		189		2		3		8		180
State and municipal bonds		3,546		814		7		-		4,353
Hybrid and redeemable preferred securities		1,181		106		70		-		1,217
VIEs' fixed maturity securities		677		31		-		-		708
Total fixed maturity securities		73,395		9,862		318		195		82,744
Equity securities		137		22		2		-		157
Total AFS securities	$	73,532	$	9,884	$	320	$	195	$	82,901

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,577	$	2,631
Due after one year through five years		13,707		14,812
Due after five years through ten years		25,010		26,334
Due after ten years		29,008		31,030
Subtotal		70,302		74,807
Mortgage-backed securities ("MBS")		5,673		5,961
CDOs		174		165
Total fixed maturity AFS securities	$	76,149	$	80,933

Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position



	As of June 30, 2013
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
	Fair		Losses and			Fair		Losses and			Fair		Losses and
	Value			OTTI		Value			OTTI		Value			OTTI
Fixed maturity securities:
Corporate bonds	$	14,856		$	858	$	786		$	162	$	15,642		$	1,020
U.S. government bonds		149			6		-			-		149			6
RMBS		653			35		139			15		792			50
CMBS		141			18		56			2		197			20
CDOs		53			8		48			1		101			9
State and municipal bonds		229			12		24			4		253			16
Hybrid and redeemable
preferred securities		99			6		226			67		325			73
Total fixed maturity securities		16,180			943		1,279			251		17,459			1,194
Equity securities		29			1		-			-		29			1
Total AFS securities	$	16,209		$	944	$	1,279		$	251	$	17,488		$	1,195

Total number of AFS securities in an unrealized loss position															1,331



	As of December 31, 2012
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
	Fair		Losses and			Fair		Losses and			Fair		Losses and
	Value			OTTI		Value			OTTI		Value			OTTI
Fixed maturity securities:
Corporate bonds	$	2,853		$	145	$	934		$	182	$	3,787		$	327
RMBS		272			39		199			24		471			63
CMBS		66			16		113			19		179			35
CDOs		10			8		53			3		63			11
State and municipal bonds		64			1		24			6		88			7
Hybrid and redeemable
preferred securities		71			3		293			67		364			70
Total fixed maturity securities		3,336			212		1,616			301		4,952			513
Equity securities		7			2		-			-		7			2
Total AFS securities	$	3,343		$	214	$	1,616		$	301	$	4,959		$	515

Total number of AFS securities in an unrealized loss position															626

Select Information For Securities In A Gross Unrealized Loss Position



	As of June 30, 2013
	Amortized		Fair		Unrealized
	Cost		Value		Loss
Total
AFS securities backed by pools of residential mortgages	$	1,336	$	1,197	$	139
AFS securities backed by pools of commercial mortgages		240		213		27
Total	$	1,576	$	1,410	$	166

Subject to Detailed Analysis
AFS securities backed by pools of residential mortgages	$	1,098	$	966	$	132
AFS securities backed by pools of commercial mortgages		43		33		10
Total	$	1,141	$	999	$	142



	As of December 31, 2012
	Amortized		Fair		Unrealized
	Cost		Value		Loss
Total
AFS securities backed by pools of residential mortgages	$	1,181	$	980	$	201
AFS securities backed by pools of commercial mortgages		236		192		44
Total	$	1,417	$	1,172	$	245

Subject to Detailed Analysis
AFS securities backed by pools of residential mortgages	$	1,173	$	972	$	201
AFS securities backed by pools of commercial mortgages		56		40		16
Total	$	1,229	$	1,012	$	217

Schedule Of Available-For-Sale Securites Whose Value Is Below Amortized Cost



	As of June 30, 2013
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities⁽¹⁾
Less than six months	$	227	$	71	$	7			29
Six months or greater, but less than nine months		-		-		-			5
Nine months or greater, but less than twelve months		-		-		-			1
Twelve months or greater		285		94		89			97
Total	$	512	$	165	$	96			132



	As of December 31, 2012
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities ⁽¹⁾
Less than six months	$	34	$	9	$	1			14
Nine months or greater, but less than twelve months		15		10		-			3
Twelve months or greater		395		179		128			131
Total	$	444	$	198	$	129			148

⁽¹⁾	We may reflect a security in more than one aging category based on various purchase dates.

Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Balance as of beginning-of-period	$	437	$	410	$	424	$	390
Increases attributable to:
Credit losses on securities for which an OTTI was not
previously recognized		19		21		20		56
Credit losses on securities for which an OTTI was
previously recognized		5		19		21		42
Decreases attributable to:
Securities sold		(48)		(35)		(52)		(73)
Balance as of end-of-period	$	413	$	415	$	413	$	415

Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)



	As of June 30, 2013
			Gross Unrealized						OTTI in
	Amortized				Losses and		Fair		Credit
	Cost		Gains		OTTI		Value		Losses
Corporate bonds	$	280	$	10	$	66	$	224	$	112
RMBS		593		19		26		586		194
CMBS		38		3		13		28		107
Total	$	911	$	32	$	105	$	838	$	413



	As of December 31, 2012
			Gross Unrealized						OTTI in
	Amortized				Losses and		Fair		Credit
	Cost		Gains		OTTI		Value		Losses
Corporate bonds	$	299	$	4	$	98	$	205	$	104
RMBS		636		22		40		618		227
CMBS		41		1		16		26		93
Total	$	976	$	27	$	154	$	849	$	424

Composition Of Current And Past Due Mortgage Loans On Real Estate



		As of			As of
	June 30,			December 31,
		2013			2012
Current		$	7,021		$	7,011
60 to 90 days past due			11			8
Greater than 90 days past due			3			24
Valuation allowance associated with impaired mortgage loans on real estate			(8)			(21)
Unamortized premium (discount)			6			7
Total carrying value		$	7,033		$	7,029

Schedule Of Impaired Mortgage Loans



		As of			As of
	June 30,			December 31,
		2013			2012
Number of impaired mortgage loans on real estate		5			10

Principal balance of impaired mortgage loans on real estate		$	41		$	75
Valuation allowance associated with impaired mortgage loans on real estate			(8)			(21)
Carrying value of impaired mortgage loans on real estate		$	33		$	54

Schedule of changes in the valuation allowance associated with impaired mortgage loans on real estate



		As of			As of
	June 30,			December 31,
		2013			2012
Balance as of beginning-of-year		$	21		$	31
Additions			-			14
Charge-offs, net of recoveries			(13)			(24)
Balance as of end-of-period		$	8		$	21

Schedule Of Average Carrying Value Of Impaired Mortgage Loans



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Average carrying value for impaired mortgage loans on real estate	$	35	$	49	$	41	$	56
Interest income recognized on impaired mortgage loans on real estate		-		-		1		-
Interest income collected on impaired mortgage loans on real estate		-		-		1		-

Credit Quality Indicators For Mortgage Loans



	As of June 30, 2013				As of December 31, 2012
				Debt-				Debt-
				Service				Service
	Principal		% of	Coverage	Principal		% of	Coverage
	Amount		Total	Ratio	Amount		Total	Ratio
Less than 65%	$	5,827	82.9%	1.73	$	5,677	80.6%	1.68
65% to 74%		761	10.8%	1.44		897	12.7%	1.39
75% to 100%		396	5.6%	0.83		386	5.5%	0.84
Greater than 100%		49	0.7%	0.76		83	1.2%	0.66
Total mortgage loans on real estate	$	7,033	100.0%		$	7,043	100.0%

Realized Gain (Loss) Related To Certain Investments



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Fixed maturity AFS securities:
Gross gains	$	4	$	3	$	11	$	8
Gross losses		(25)		(49)		(43)		(112)
Equity AFS securities:
Gross gains		-		-		6		1
Gross losses		(1)		-		(1)		-
Gain (loss) on other investments		1		(5)		(1)		2
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(4)		-		(11)		2
Total realized gain (loss) related to certain investments	$	(25)	$	(51)	$	(39)	$	(99)

OTTI Recognized In Net Income (Loss) And OCI



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
OTTI Recognized in Net Income (Loss)
Corporate bonds	$	(7)	$	(10)	$	(10)	$	(29)
RMBS		(5)		(14)		(16)		(32)
CMBS		(12)		(16)		(14)		(36)
CDOs		-		-		(1)		-
Gross OTTI recognized in net income (loss)		(24)		(40)		(41)		(97)
Associated amortization of DAC, VOBA, DSI and DFEL		5		7		8		17
Net OTTI recognized in net income (loss), pre-tax	$	(19)	$	(33)	$	(33)	$	(80)
						.
Portion of OTTI Recognized in OCI
Gross OTTI recognized in OCI	$	1	$	21	$	7	$	79
Change in DAC, VOBA, DSI and DFEL		-		(4)		(1)		(12)
Net portion of OTTI recognized in OCI, pre-tax	$	1	$	17	$	6	$	67

Payables For Collateral On Investments



	As of June 30, 2013				As of December 31, 2012
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable held for derivative investments ⁽¹⁾	$	1,418	$	1,418	$	2,567	$	2,567
Securities pledged under securities lending agreements ⁽²⁾		177		171		197		189
Securities pledged under reverse repurchase agreements ⁽³⁾		280		293		280		294
Securities pledged for Term Asset-Backed Securities
Loan Facility ("TALF") ⁽⁴⁾		37		50		37		52
Investments pledged for Federal Home Loan Bank of
Indianapolis ("FHLBI")⁽⁵⁾		2,340		3,777		1,100		1,936
Total payables for collateral on investments	$	4,252	$	5,709	$	4,181	$	5,038

⁽¹⁾

We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 5 for details about maximum collateral potentially required to post on our credit default swaps.

⁽²⁾

Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾

Our pledged securities under reverse repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our reverse repurchase program is typically invested in fixed maturity AFS securities.

⁽⁴⁾

Our pledged securities for TALF are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount that has typically averaged 90% of the fair value of the TALF securities. The cash received in these transactions is invested in fixed maturity AFS securities.

⁽⁵⁾

Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Schedule Of Increase (Decrease) In Payables For Collateral On Investments



	For the Six
	Months Ended
	June 30,
	2013		2012
Collateral payable held for derivative investments	$	(1,149)	$	461
Securities pledged under securities lending agreements		(20)		-
Securities pledged for TALF		-		(124)
Investments pledged for FHLBI		1,240		1,000
Total increase (decrease) in payables for collateral on investments	$	71	$	1,337