Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2015						As of December 31, 2014
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	88,813		$	88,813		$	86,240		$	86,240
VIEs’ fixed maturity securities		598			598			598			598
Equity securities		210			210			231			231
Trading securities		2,077			2,077			2,065			2,065
Mortgage loans on real estate		7,654			8,172			7,574			8,038
Derivative investments (1)		2,095			2,095			1,860			1,860
Other investments		1,885			1,885			1,709			1,709
Cash and invested cash		3,487			3,487			3,919			3,919
Other assets – reinsurance recoverable		204			204			154			154
Separate account assets		127,828			127,828			125,265			125,265
Liabilities
Future contract benefits –
Indexed annuity and IUL contracts embedded derivatives		(1,180	)		(1,180	)		(1,170	)		(1,170	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(687	)		(687	)		(699	)		(699	)
Account values of certain investment contracts		(29,990	)		(34,666	)		(29,156	)		(33,079	)
Short-term debt		(250	)		(252	)		(250	)		(253	)
Long-term debt		(5,627	)		(6,035	)		(5,270	)		(5,707	)
Reinsurance related embedded derivatives		(165	)		(165	)		(150	)		(150	)
VIEs’ liabilities – derivative instruments		(5	)		(5	)		(13	)		(13	)
Other liabilities:
Credit default swaps		(3	)		(3	)		(3	)		(3	)
Derivative liabilities (1)		(92	)		(92	)		(77	)		(77	)
GLB reserves embedded derivatives (2)		(552	)		(552	)		(174	)		(174	)

⁽¹⁾ We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

⁽²⁾ Portions of our GLB reserves embedded derivatives are ceded to third-party reinsurance counterparties.  Refer to Note 5 for additional detail.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of March 31, 2015
		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		$	64		$	73,813			$	2,033		$	75,910
ABS			-			1,120				33			1,153
U.S. government bonds			418			34				-			452
Foreign government bonds			-			448				113			561
RMBS			-			4,171				1			4,172
CMBS			-			487				15			502
CLOs			-			7				416			423
State and municipal bonds			-			4,705				-			4,705
Hybrid and redeemable preferred securities			47			813				75			935
VIEs’ fixed maturity securities			-			598				-			598
Equity AFS securities			7			68				135			210
Trading securities			-			2,002				75			2,077
Other investments			155			-				-			155
Derivative investments (1)			-			1,867				1,186			3,053
Cash and invested cash			-			3,487				-			3,487
Other assets – reinsurance recoverable			-			-				204			204
Separate account assets			1,228			126,600				-			127,828
Total assets		$	1,919		$	220,220			$	4,286		$	226,425
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,180	)	$	(1,180	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(165	)			-			(165	)
VIEs’ liabilities – derivative instruments			-			-				(5	)		(5	)
Other liabilities:
Credit default swaps			-			-				(3	)		(3	)
Derivative liabilities (1)			-			(713	)			(337	)		(1,050	)
GLB reserves embedded derivatives			-			-				(552	)		(552	)
Total liabilities		$	-		$	(2,081	)		$	(2,077	)	$	(4,158	)

		As of December 31, 2014
		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		$	63		$	71,400			$	1,953		$	73,416
ABS			-			1,097				33			1,130
U.S. government bonds			399			36				-			435
Foreign government bonds			-			432				109			541
RMBS			-			4,225				1			4,226
CMBS			-			555				15			570
CLOs			-			7				368			375
State and municipal bonds			-			4,593				-			4,593
Hybrid and redeemable preferred securities			45			854				55			954
VIEs’ fixed maturity securities			-			598				-			598
Equity AFS securities			7			67				157			231
Trading securities			-			1,992				73			2,065
Other investments			150			-				-			150
Derivative investments (1)			-			1,356				1,231			2,587
Cash and invested cash			-			3,919				-			3,919
Other assets – reinsurance recoverable			-			-				154			154
Separate account assets			1,539			123,726				-			125,265
Total assets		$	2,203		$	214,857			$	4,149		$	221,209
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,170	)	$	(1,170	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(150	)			-			(150	)
VIEs’ liabilities – derivative instruments			-			-				(13	)		(13	)
Other liabilities:
Credit default swaps			-			-				(3	)		(3	)
Derivative liabilities (1)			-			(562	)			(242	)		(804	)
GLB reserves embedded derivatives			-			-				(174	)		(174	)
Total liabilities		$	-		$	(1,915	)		$	(1,602	)	$	(3,517	)

⁽¹⁾ Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty.

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended March 31, 2015
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into 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: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,953		$	3		$	(31	)	$	29		$	79	$	2,033
ABS		33			-			-			-			-		33
Foreign government bonds		109			-			4			-			-		113
RMBS		1			-			-			-			-		1
CMBS		15			1			2			(3	)		-		15
CLOs		368			-			3			45			-		416
Hybrid and redeemable
preferred securities		55			-			-			-			20		75
Equity AFS securities		157			-			2			(24	)		-		135
Trading securities		73			1			2			(1	)		-		75
Derivative investments		989			(94	)		48			(94	)		-		849
Other assets (5) – reinsurance recoverable		154			50			-			-			-		204
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives (5)		(1,170	)		(38	)		-			28			-		(1,180	)
VIEs’ liabilities – derivative instruments (6)		(13	)		8			-			-			-		(5	)
Other liabilities:
Credit default swaps (7)		(3	)		-			-			-			-		(3	)
GLB reserves embedded derivatives (5)		(174	)		(378	)		-			-			-		(552	)
Total, net	$	2,547		$	(447	)	$	30		$	(20	)	$	99	$	2,209

	For the Three Months Ended March 31, 2014
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales			Into 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)(3)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,701		$	3		$	23		$	19		$	200		$	1,946
ABS		10			-			2			-			-			12
Foreign government bonds		79			-			3			-			25			107
RMBS		1			-			-			-			-			1
CMBS		20			-			1			(6	)		6			21
CLOs		179			-			1			7			8			195
State and municipal bonds		28			-			1			-			-			29
Hybrid and redeemable
preferred securities		66			-			(1	)		-			(10	)		55
Equity AFS securities		161			-			1			-			-			162
Trading securities		52			1			3			(1	)		(2	)		53
Derivative investments		1,266			(108	)		134			(55	)		(426	)		811
Other assets – GLB reserves
embedded derivatives (5)		27			(249	)		-			-			1,244			1,022
Future contract benefits: (5)
Indexed annuity and universal life
contracts embedded derivatives		(1,048	)		(49	)		-			7			-			(1,090	)
GLB reserves embedded derivatives		1,244			-			-			-			(1,244	)		-
VIEs’ liabilities – derivative instruments (6)		(27	)		5			-			-			-			(22	)
Other liabilities:
Credit default swaps (7)		(2	)		-			-			-			-			(2	)
GLB reserves embedded derivatives (5)		(27	)		(16	)		-			-			-			(43	)
Total, net	$	3,730		$	(413	)	$	168		$	(29	)	$	(199	)	$	3,257

⁽¹⁾ The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

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

⁽³⁾ Transfers into or out of Level 3 for GLB reserves embedded derivatives between future contract benefits, other assets and other liabilities on our Consolidated Balance Sheets.

⁽⁴⁾ 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).

⁽⁵⁾ Gains (losses) from sales, maturities, settlements and calls 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).

⁽⁷⁾ 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).

Schedule Of Investment Holdings Movements

	For the Three Months Ended March 31, 2015
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	63		$	(1	)	$	-		$	(26	)	$	(7	)	$	29
CMBS		-			-			-			(2	)		(1	)		(3	)
CLOs		47			-			-			(2	)		-			45
Equity AFS securities		-			(24	)		-			-			-			(24	)
Trading securities		-			-			-			(1	)		-			(1	)
Derivative investments		40			(47	)		(87	)		-			-			(94	)
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives		(14	)		-			-			42			-			28
Total, net	$	136		$	(72	)	$	(87	)	$	11		$	(8	)	$	(20	)

	For the Three Months Ended March 31, 2014
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	145		$	(10	)	$	(58	)	$	(16	)	$	(42	)	$	19
CMBS		-			-			-			(6	)		-			(6	)
CLOs		12			-			-			(5	)		-			7
Trading securities		1			-			-			(2	)		-			(1	)
Derivative investments		36			(20	)		(71	)		-			-			(55	)
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives		(25	)		-			-			32			-			7
Total, net	$	169		$	(30	)	$	(129	)	$	3		$	(42	)	$	(29	)

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

	For the Three
	Months Ended
	March 31,
	2015			2014
Derivative investments (1)	$	(95	)	$	(110	)
VIEs’ liabilities – derivative instruments (2)		8			5
Embedded derivatives: (1)
Indexed annuity and IUL contracts		(26	)		(24	)
GLB reserves		(161	)		(172	)
Total, net	$	(274	)	$	(301	)

⁽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
	March 31, 2015							March 31, 2014
	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	$	80	$	(1	)	$	79	$	260	$	(60	)	$	200
Foreign government bonds		-		-			-		25		-			25
CMBS		-		-			-		6		-			6
CLOs		-		-			-		8		-			8
Hybrid and redeemable preferred
securities		25		(5	)		20		12		(22	)		(10	)
Trading securities		-		-			-		4		(6	)		(2	)
Derivative investments		-		-			-		-		(426	)		(426	)
Other assets – GLB reserves embedded
derivatives		-		-			-		1,244		-			1,244
Future contract benefits – GLB embedded
derivatives		-		-			-		-		(1,244	)		(1,244	)
Total, net	$	105	$	(6	)	$	99	$	1,559	$	(1,758	)	$	(199	)

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	$	1,344		Discounted cash flow	Liquidity/duration adjustment (1)	0.8	%	-	11.2	%
ABS		26		Discounted cash flow	Liquidity/duration adjustment (1)	3.2	%	-	3.2	%
Foreign government bonds		80		Discounted cash flow	Liquidity/duration adjustment (1)	2.0	%	-	4.0	%
Hybrid and redeemable
preferred securities		20		Discounted cash flow	Liquidity/duration adjustment (1)	2.4	%	-	2.4	%
Equity AFS and trading securities		28		Discounted cash flow	Liquidity/duration adjustment (1)	4.3	%	-	5.8	%
Other assets – reinsurance
recoverable		204		Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	90	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	70	%	-	140	%
					NPR (5)	0.00	%	-	0.35	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	28	%
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives		(1,180	)	Discounted cash flow	Lapse rate (2)	1	%	-	15	%
					Mortality rate (6)				(9)
Other liabilities – GLB reserves
embedded derivatives		(552	)	Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	90	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	70	%	-	140	%
					NPR (5)	0.00	%	-	0.35	%
					Mortality rate (6)(8)				(9)
					Volatility (7)	1	%	-	28	%

⁽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 IUL 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 utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁵⁾ The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract.

⁽⁶⁾ 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.

⁽⁷⁾ 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. 

⁽⁸⁾ The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽⁹⁾ Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee on Life Insurance Research that was adopted by the National Association of Insurance Commissioners in 1996 for our mortality input.