Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of September 30, 2013				As of December 31, 2012
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
AFS securities:
Fixed maturity securities	$	80,135	$	80,135	$	82,036	$	82,036
VIEs' fixed maturity securities		699		699		708		708
Equity securities		185		185		157		157
Trading securities		2,354		2,354		2,554		2,554
Mortgage loans on real estate		7,127		7,456		7,029		7,704
Derivative investments		1,114		1,114		2,652		2,652
Other investments		1,219		1,219		1,098		1,098
Cash and invested cash		2,650		2,650		4,230		4,230
Future contract benefits – GLB reserves
embedded derivatives		711		711		-		-
Separate account assets		109,376		109,376		95,373		95,373
Liabilities
Future contract benefits:
Indexed annuity and universal life contracts
embedded derivatives		(924)		(924)		(732)		(732)
GLB reserves embedded derivatives		-		-		(909)		(909)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(846)		(846)		(867)		(867)
Account values of certain investment contracts		(28,936)		(30,519)		(28,540)		(32,688)
Short-term debt (1)		(503)		(507)		(200)		(204)
Long-term debt		(5,365)		(5,775)		(5,439)		(5,824)
Reinsurance related embedded derivatives		(121)		(121)		(215)		(215)
VIEs' liabilities – derivative instruments		(67)		(67)		(128)		(128)
Other liabilities – credit default swaps		(5)		(5)		(11)		(11)

⁽¹⁾ The difference between the carrying value and fair value of short-term debt as of September 30, 2013, and December 31, 2012, related to current maturities of long-term debt.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of September 30, 2013
		Quoted
		Prices
		in Active
	Markets for			Significant			Significant
		Identical		Observable			Unobservable			Total
		Assets			Inputs			Inputs		Fair
		(Level 1)			(Level 2)			(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	60		$	66,785		$	1,680	$	68,525
U.S. government bonds			345			23			-		368
Foreign government bonds			-			480			96		576
RMBS			-			4,649			1		4,650
CMBS			-			776			19		795
CDOs			-			21			173		194
State and municipal bonds			-			3,947			29		3,976
Hybrid and redeemable preferred securities			40			945			66		1,051
VIEs' fixed maturity securities			105			594			-		699
Equity AFS securities			4			34			147		185
Trading securities			-			2,299			55		2,354
Derivative investments			-			(292)			1,406		1,114
Cash and invested cash			-			2,650			-		2,650
Future contract benefits – GLB reserves
embedded derivatives			-			-			711		711
Separate account assets			1,672			107,704			-		109,376
Total assets		$	2,226		$	190,615		$	4,383	$	197,224
Liabilities
Future contract benefits – indexed annuity
and universal life contracts embedded derivatives		$	-		$	-		$	(924)	$	(924)
Long-term debt			-			(1,203)			-		(1,203)
Reinsurance related embedded derivatives			-			(121)			-		(121)
VIEs' liabilities – derivative instruments			-			-			(67)		(67)
Other liabilities – credit default swaps			-			-			(5)		(5)
Total liabilities		$	-		$	(1,324)		$	(996)	$	(2,320)

		As of December 31, 2012
		Quoted
		Prices
		in Active
	Markets for			Significant			Significant
		Identical		Observable			Unobservable			Total
		Assets			Inputs			Inputs		Fair
		(Level 1)			(Level 2)			(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	65		$	66,446		$	1,505	$	68,016
U.S. government bonds			411			30			1		442
Foreign government bonds			-			608			46		654
RMBS			-			6,168			3		6,171
CMBS			-			976			27		1,003
CDOs			-			26			154		180
State and municipal bonds			-			4,321			32		4,353
Hybrid and redeemable preferred securities			30			1,069			118		1,217
VIEs' fixed maturity securities			110			598			-		708
Equity AFS securities			44			26			87		157
Trading securities			2			2,496			56		2,554
Derivative investments			-			626			2,026		2,652
Cash and invested cash			-			4,230			-		4,230
Separate account assets			1,519			93,854			-		95,373
Total assets		$	2,181		$	181,474		$	4,055	$	187,710
Liabilities
Future contract benefits:
Indexed annuity and universal life contracts
embedded derivatives		$	-		$	-		$	(732)	$	(732)
GLB reserves embedded derivatives			-			-			(909)		(909)
Long-term debt			-			(1,203)			-		(1,203)
Reinsurance related embedded derivatives			-			(215)			-		(215)
VIEs' liabilities – derivative instruments			-			-			(128)		(128)
Other liabilities – credit default swaps			-			-			(11)		(11)
Total liabilities		$	-		$	(1,418)		$	(1,780)	$	(3,198)

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended September 30, 2013
					Gains		Issuances,			Transfers
			Items		(Losses)			Sales,		In or
			Included		in		Maturities,			Out
	Beginning		in		OCI		Settlements,			of		Ending
	Fair		Net		and			Calls,		Level 3,		Fair
	Value		Income		Other (1)			Net		Net (2)		Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,792	$	2	$	(2)		$	14	$	(126)	$	1,680
Foreign government bonds		75		-		1			20		-		96
RMBS		1		-		-			-		-		1
CMBS		28		1		(1)			(1)		(8)		19
CDOs		143		-		1			29		-		173
State and municipal bonds		30		-		(1)			-		-		29
Hybrid and redeemable
preferred securities		93		-		2			(11)		(18)		66
Equity AFS securities		147		(1)		1			-		-		147
Trading securities		53		-		(3)			(2)		7		55
Derivative investments		1,823		(368)		24			(73)		-		1,406
Future contract benefits: (4)
Indexed annuity and universal life
contracts embedded derivatives		(875)		(63)		-			14		-		(924)
GLB reserves embedded derivatives		292		419		-			-		-		711
VIEs' liabilities – derivative instruments (5)		(101)		34		-			-		-		(67)
Other liabilities – credit default swaps (6)		(8)		3		-			-		-		(5)
Total, net	$	3,493	$	27	$	22		$	(10)	$	(145)	$	3,387

	For the Three Months Ended September 30, 2012
					Gains		Issuances,			Transfers
			Items		(Losses)			Sales		In or
			Included		in		Maturities,			Out
	Beginning		in		OCI		Settlements,			of		Ending
	Fair		Net		and			Calls,		Level 3,		Fair
	Value		Income		Other (1)			Net		Net (2)		Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,678	$	1	$	24		$	225	$	(73)	$	1,855
U.S. government bonds		1		-		-			-		-		1
Foreign government bonds		102		-		-			(2)		(24)		76
RMBS		184		-		-			-		(181)		3
CMBS		39		(2)		4			(2)		4		43
CDOs		120		(2)		2			27		-		147
State and municipal bonds		32		-		1			-		-		33
Hybrid and redeemable
preferred securities		129		-		13			-		(29)		113
Equity AFS securities		85		-		1			-		-		86
Trading securities		72		-		4			(2)		(14)		60
Derivative investments		2,517		(268)		47			(63)		-		2,233
Future contract benefits: (4)
Indexed annuity and universal life
contracts embedded derivatives		(431)		(63)		-			(239)		-		(733)
GLB reserves embedded derivatives		(1,926)		570		-			-		-		(1,356)
VIEs' liabilities – derivative instruments (5)		(231)		57		-			-		-		(174)
Other liabilities – credit default swaps (6)		(11)		(5)		-			-		-		(16)
Total, net	$	2,360	$	288	$	96		$	(56)	$	(317)	$	2,371

	For the Nine Months Ended September 30, 2013
							Purchases,
					Gains		Issuances,			Transfers
			Items		(Losses)		Sales,			In or
			Included		in		Maturities,			Out
	Beginning		in		OCI		Settlements,			of		Ending
	Fair		Net		and			Calls,		Level 3,		Fair
	Value		Income		Other (1)			Net		Net (2)		Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,505	$	(1)	$	(12)		$	(26)	$	214	$	1,680
U.S. government bonds		1		-		-			(1)		-		-
Foreign government bonds		46		-		-			50		-		96
RMBS		3		-		-			(2)		-		1
CMBS		27		1		4			(5)		(8)		19
CDOs		154		(1)		2			18		-		173
State and municipal bonds		32		-		(3)			-		-		29
Hybrid and redeemable
preferred securities		118		-		2			(11)		(43)		66
Equity AFS securities		87		(1)		3			58		-		147
Trading securities		56		1		(8)			(3)		9		55
Derivative investments		2,026		(616)		93			(97)		-		1,406
Future contract benefits: (4)
Indexed annuity and universal life
contracts embedded derivatives		(732)		(225)		-			33		-		(924)
GLB reserves embedded derivatives		(909)		1,620		-			-		-		711
VIEs' liabilities – derivative instruments (5)		(128)		61		-			-		-		(67)
Other liabilities – credit default swaps (6)		(11)		6		-			-		-		(5)
Total, net	$	2,275	$	845	$	81		$	14	$	172	$	3,387

	For the Nine Months Ended September 30, 2012
							Purchases,
					Gains		Issuances,			Transfers
			Items		(Losses)		Sales,			In or
			Included		in		Maturities,			Out
	Beginning		in		OCI		Settlements,			of		Ending
	Fair		Net		and			Calls,		Level 3,		Fair
	Value		Income		Other (1)			Net		Net (2)		Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,888	$	(16)	$	14		$	327	$	(358)	$	1,855
U.S. government bonds		1		-		-			-		-		1
Foreign government bonds		97		-		-			(4)		(17)		76
RMBS		158		(3)		3			(8)		(147)		3
CMBS		34		(9)		15			(10)		13		43
CDOs		102		(2)		7			34		6		147
State and municipal bonds		-		-		1			32		-		33
Hybrid and redeemable
preferred securities		100		(1)		19			-		(5)		113
Equity AFS securities		56		-		5			25		-		86
Trading securities		68		2		3			(2)		(11)		60
Derivative investments		2,470		(557)		114			206		-		2,233
Future contract benefits: (4)
Indexed annuity and universal life
contracts embedded derivatives		(399)		(143)		-			(191)		-		(733)
GLB reserves embedded derivatives		(2,217)		861		-			-		-		(1,356)
VIEs' liabilities – derivative instruments (5)		(291)		117		-			-		-		(174)
Other liabilities – credit default swaps (6)		(16)		-		-			-		-		(16)
Total, net	$	2,051	$	249	$	181		$	409	$	(519)	$	2,371

⁽¹⁾ The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6).

⁽²⁾ Transfers in or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period.  For AFS and trading securities, the difference between beginning-of-period amortized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in prior periods.

⁽³⁾ Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).  Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾ Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁵⁾ The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁶⁾ Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).

Schedule Of Investment Holdings Movements

	For the Three Months Ended September 30, 2013
	Issuances		Sales		Maturities		Settlements			Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	51	$	(6)	$	-		$	(9)	$	(22)	$	14
Foreign government bonds		20		-		-			-		-		20
CMBS		-		-		-			-		(1)		(1)
CDOs		34		-		-			(5)		-		29
Hybrid and redeemable
preferred securities		-		(11)		-			-		-		(11)
Trading securities		-		(1)		-			(1)		-		(2)
Derivative investments		45		(27)		(91)			-		-		(73)
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives		(14)		-		-			28		-		14
Total, net	$	136	$	(45)	$	(91)		$	13	$	(23)	$	(10)

	For the Three Months Ended September 30, 2012
	Issuances		Sales		Maturities		Settlements			Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	247	$	-	$	(7)		$	(14)	$	(1)	$	225
Foreign government bonds		-		-		-			(2)		-		(2)
CMBS		-		-		-			(2)		-		(2)
CDOs		30		-		-			(3)		-		27
Trading securities		-		(1)		-			(1)		-		(2)
Derivative investments		55		(43)		(75)			-		-		(63)
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives		(31)		-		-			(208)		-		(239)
Total, net	$	301	$	(44)	$	(82)		$	(230)	$	(1)	$	(56)

	For the Nine Months Ended September 30, 2013
	Issuances		Sales		Maturities		Settlements			Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	113	$	(41)	$	(4)		$	(40)	$	(54)	$	(26)
U.S. government bonds		-		-		-			(1)		-		(1)
Foreign government bonds		50		-		-			-		-		50
RMBS		-		-		-			(2)		-		(2)
CMBS		-		-		-			(3)		(2)		(5)
CDOs		35		-		-			(17)		-		18
Hybrid and redeemable preferred
securities		-		(11)		-			-		-		(11)
Equity AFS securities		63		(5)		-			-		-		58
Trading securities		-		(1)		-			(2)		-		(3)
Derivative investments		119		17		(233)			-		-		(97)
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives		(53)		-		-			86		-		33
Total, net	$	327	$	(41)	$	(237)		$	21	$	(56)	$	14

	For the Nine Months Ended September 30, 2012
	Issuances		Sales		Maturities		Settlements			Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	404	$	(27)	$	(5)		$	(41)	$	(4)	$	327
Foreign government bonds		-		-		-			(4)		-		(4)
RMBS		-		-		(7)			(1)		-		(8)
CMBS		-		-		-			(10)		-		(10)
CDOs		47		-		-			(13)		-		34
State and municipal bonds		32		-		-			-		-		32
Equity AFS securities		25		-		-			-		-		25
Trading securities		-		-		-			(2)		-		(2)
Derivative investments		428		(40)		(182)			-		-		206
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives		(66)		-		-			(125)		-		(191)
Total, net	$	870	$	(67)	$	(194)		$	(196)	$	(4)	$	409

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held

	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Investments: (1)
Derivative investments	$	(343)	$	(279)	$	(533)	$	(618)
Future contract benefits: (1)
Indexed annuity and universal life contracts
embedded derivatives		5		4		25		22
GLB reserves embedded derivatives		508		556		1,825		924
VIEs' liabilities – derivative instruments (1)		35		57		61		117
Other liabilities – credit default swaps (2)		4		(5)		6		-
Total, net	$	209	$	333	$	1,384	$	445

⁽¹⁾ Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). 

⁽²⁾ Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). 

Components Of The Transfers In And Out Of Level 3

	For the Three						For the Three
	Months Ended						Months Ended
	September 30, 2013						September 30, 2012
	Transfers		Transfers				Transfers		Transfers
	In to		Out of				In to		Out of
	Level 3		Level 3		Total		Level 3		Level 3		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	71	$	(197)	$	(126)	$	241	$	(314)	$	(73)
Foreign government bonds		-		-		-		27		(51)		(24)
RMBS		-		-		-		-		(181)		(181)
CMBS		-		(8)		(8)		4		-		4
Hybrid and redeemable
preferred securities		-		(18)		(18)		-		(29)		(29)
Trading securities		7		-		7		3		(17)		(14)
Total, net	$	78	$	(223)	$	(145)	$	275	$	(592)	$	(317)

	For the Nine						For the Nine
	Months Ended						Months Ended
	September 30, 2013						September 30, 2012
	Transfers		Transfers				Transfers		Transfers
	In to		Out of				In to		Out of
	Level 3		Level 3		Total		Level 3		Level 3		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	257	$	(43)	$	214	$	163	$	(521)	$	(358)
Foreign government bonds		-		-		-		29		(46)		(17)
RMBS		-		-		-		-		(147)		(147)
CMBS		-		(8)		(8)		13		-		13
CDOs		-		-		-		6		-		6
Hybrid and redeemable
preferred securities		5		(48)		(43)		35		(40)		(5)
Trading securities		9		-		9		5		(16)		(11)
Total, net	$	271	$	(99)	$	172	$	251	$	(770)	$	(519)

Fair Value Inputs Quantitative Information

	Fair		Valuation	Significant		Assumption or
	Value		Technique	Unobservable Inputs		Input Ranges
Assets
Investments:
Fixed maturity AFS and trading
securities:
Corporate bonds	$	1,031	Discounted cash flow	Liquidity/duration adjustment (1)		0.6	%	-	15.3	%
Foreign government bonds		97	Discounted cash flow	Liquidity/duration adjustment (1)		2.1	%	-	4.1	%
Hybrid and redeemable
preferred securities		21	Discounted cash flow	Liquidity/duration adjustment (1)		1.6	%	-	2.0	%
Equity AFS and trading
securities		13	Discounted cash flow	Liquidity/duration adjustment (1)		4.3	%	-	4.5	%
Future contract benefits – GLB
reserves embedded derivatives		711	Monte Carlo simulation	Long-term lapse rate (2)		1.0	%	-	27.0	%
				Utilization of guaranteed
					withdrawal (3)	90.0	%	-	100.0	%
				NPR (4)		0.0	%	-	0.51	%
				Mortality rate (5)					(7)
				Volatility (6)		1.0	%	-	28.0	%
Liabilities
Future contract benefits – indexed
annuity and universal life
contracts embedded derivatives		(924)	Discounted cash flow	Lapse rate (2)		1.0	%	-	15.0	%
				Mortality rate (5)					(8)

⁽¹⁾ The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽²⁾ The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits.  The range for indexed annuity and universal life contracts represents the lapse rates during the surrender charge period. 

⁽³⁾ The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁴⁾ The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract.

⁽⁵⁾ The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁶⁾ The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed income assets.  Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. 

⁽⁷⁾ The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽⁸⁾ Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee onLife Insurance Research that was adopted by the National Association of Insurance Commissioners in 1996 for our mortality input.