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Investments (Tables)

9 Months Ended

Sep. 30, 2013

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



	As of September 30, 2013
	Amortized		Gross Unrealized						Fair
	Cost		Gains		Losses		OTTI		Value
Fixed maturity securities:
Corporate bonds	$	64,933	$	4,739	$	1,056	$	91	$	68,525
U.S. government bonds		345		32		9		-		368
Foreign government bonds		523		53		-		-		576
Residential mortgage-backed securities ("RMBS")		4,396		294		1		39		4,650
Commercial mortgage-backed securities ("CMBS")		776		40		4		17		795
Collateralized debt obligations ("CDOs")		202		-		1		7		194
State and municipal bonds		3,654		346		24		-		3,976
Hybrid and redeemable preferred securities		1,027		89		65		-		1,051
VIEs' fixed maturity securities		681		18		-		-		699
Total fixed maturity securities		76,537		5,611		1,160		154		80,834
Equity securities		166		19		-		-		185
Total AFS securities	$	76,703	$	5,630	$	1,160	$	154	$	81,019



	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	$	2,546	$	2,604
Due after one year through five years		13,947		15,116
Due after five years through ten years		25,054		26,239
Due after ten years		29,616		31,236
Subtotal		71,163		75,195
Mortgage-backed securities ("MBS")		5,172		5,445
CDOs		202		194
Total fixed maturity AFS securities	$	76,537	$	80,834

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



	As of September 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	$	15,900		$	978	$	820		$	169	$	16,720		$	1,147
U.S. government bonds		145			9		-			-		145			9
RMBS		635			30		100			10		735			40
CMBS		117			19		29			2		146			21
CDOs		73			7		45			1		118			8
State and municipal bonds		303			18		22			6		325			24
Hybrid and redeemable
preferred securities		60			6		218			59		278			65
Total fixed maturity securities		17,233			1,067		1,234			247		18,467			1,314
Equity securities		-			-		-			-		-			-
Total AFS securities	$	17,233		$	1,067	$	1,234		$	247	$	18,467		$	1,314

Total number of AFS securities in an unrealized loss position															1,361



	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 September 30, 2013
	Amortized		Fair		Unrealized
	Cost		Value		Loss
Total
AFS securities backed by pools of residential mortgages	$	1,285	$	1,163	$	122
AFS securities backed by pools of commercial mortgages		190		163		27
Total	$	1,475	$	1,326	$	149

Subject to Detailed Analysis
AFS securities backed by pools of residential mortgages	$	1,055	$	941	$	114
AFS securities backed by pools of commercial mortgages		34		24		10
Total	$	1,089	$	965	$	124



	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 September 30, 2013
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities⁽¹⁾
Less than six months	$	231	$	61	$	5			22
Six months or greater, but less than nine months		21		17		-			5
Nine months or greater, but less than twelve months		-		-		-			6
Twelve months or greater		249		87		87			84
Total	$	501	$	165	$	92			117



	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 Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Balance as of beginning-of-period	$	413	$	415	$	424	$	390
Increases attributable to:
Credit losses on securities for which an OTTI was not
previously recognized		6		19		26		74
Credit losses on securities for which an OTTI was
previously recognized		16		18		37		60
Decreases attributable to:
Securities sold		(16)		(19)		(68)		(91)
Balance as of end-of-period	$	419	$	433	$	419	$	433

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



	As of September 30, 2013
			Gross Unrealized						OTTI in
	Amortized				Losses and		Fair		Credit
	Cost		Gains		OTTI		Value		Losses
Corporate bonds	$	271	$	17	$	60	$	228	$	122
RMBS		582		18		23		577		189
CMBS		37		3		13		27		108
Total	$	890	$	38	$	96	$	832	$	419



	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
	September 30,			December 31,
		2013			2012
Current		$	7,117		$	7,011
60 to 90 days past due			-			8
Greater than 90 days past due			13			24
Valuation allowance associated with impaired mortgage loans on real estate			(9)			(21)
Unamortized premium (discount)			6			7
Total carrying value		$	7,127		$	7,029

Schedule Of Impaired Mortgage Loans



		As of			As of
	September 30,			December 31,
		2013			2012
Number of impaired mortgage loans on real estate		4			10

Principal balance of impaired mortgage loans on real estate		$	37		$	75
Valuation allowance associated with impaired mortgage loans on real estate			(9)			(21)
Carrying value of impaired mortgage loans on real estate		$	28		$	54

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



		As of			As of
	September 30,			December 31,
		2013			2012
Balance as of beginning-of-year		$	21		$	31
Additions			3			14
Charge-offs, net of recoveries			(15)			(24)
Balance as of end-of-period		$	9		$	21

Schedule Of Average Carrying Value Of Impaired Mortgage Loans



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Average carrying value for impaired mortgage loans on real estate	$	31	$	42	$	37	$	52
Interest income recognized on impaired mortgage loans on real estate		-		1		1		1
Interest income collected on impaired mortgage loans on real estate		-		1		1		1

Credit Quality Indicators For Mortgage Loans



	As of September 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%	$	5,958	83.6%	1.79	$	5,677	80.6%	1.68
65% to 74%		723	10.1%	1.42		897	12.7%	1.39
75% to 100%		404	5.7%	0.83		386	5.5%	0.84
Greater than 100%		45	0.6%	0.66		83	1.2%	0.66
Total mortgage loans on real estate	$	7,130	100.0%		$	7,043	100.0%

Realized Gain (Loss) Related To Certain Investments



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Fixed maturity AFS securities:
Gross gains	$	5	$	4	$	17	$	12
Gross losses		(28)		(49)		(73)		(161)
Equity AFS securities:
Gross gains		1		-		7		1
Gross losses		(1)		-		(2)		-
Gain (loss) on other investments		(2)		(10)		(3)		(8)
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(8)		1		(19)		3
Total realized gain (loss) related to certain investments	$	(33)	$	(54)	$	(73)	$	(153)

OTTI Recognized In Net Income (Loss) And OCI



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
OTTI Recognized in Net Income (Loss)
Corporate bonds	$	(11)	$	(5)	$	(21)	$	(34)
RMBS		(10)		(16)		(25)		(48)
CMBS		(1)		(14)		(15)		(50)
CDOs		-		(2)		(1)		(2)
Total fixed maturity securities		(22)		(37)		(62)		(134)
Equity securities		(1)		-		(1)		-
Gross OTTI recognized in net income (loss)		(23)		(37)		(63)		(134)
Associated amortization of DAC, VOBA, DSI, and DFEL		4		5		11		22
Net OTTI recognized in net income (loss), pre-tax	$	(19)	$	(32)	$	(52)	$	(112)
						.
Portion of OTTI Recognized in OCI
Gross OTTI recognized in OCI	$	4	$	17	$	10	$	96
Change in DAC, VOBA, DSI and DFEL		(1)		(2)		(1)		(14)
Net portion of OTTI recognized in OCI, pre-tax	$	3	$	15	$	9	$	82

Payables For Collateral On Investments



	As of September 30, 2013				As of December 31, 2012
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable held for derivative investments ⁽¹⁾	$	957	$	957	$	2,567	$	2,567
Securities pledged under securities lending agreements ⁽²⁾		180		173		197		189
Securities pledged under reverse repurchase agreements ⁽³⁾		530		552		280		294
Securities pledged for Term Asset-Backed Securities
Loan Facility ("TALF") ⁽⁴⁾		36		50		37		52
Investments pledged for Federal Home Loan Bank of
Indianapolis ("FHLBI")⁽⁵⁾		1,850		3,080		1,100		1,936
Total payables for collateral on investments	$	3,553	$	4,812	$	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 6 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 Nine
	Months Ended
	September 30,
	2013		2012
Collateral payable held for derivative investments	$	(1,610)	$	(27)
Securities pledged under securities lending agreements		(17)		(4)
Securities pledged under reverse repurchase agreements		250		-
Securities pledged for TALF		(1)		(136)
Investments pledged for FHLBI		750		1,000
Total increase (decrease) in payables for collateral on investments	$	(628)	$	833