Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of September 30, 2015						As of December 31, 2014
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	85,506		$	85,506		$	86,240		$	86,240
VIEs’ fixed maturity securities		598			598			598			598
Equity securities		242			242			231			231
Trading securities		1,914			1,914			2,065			2,065
Mortgage loans on real estate		8,431			8,857			7,574			8,038
Derivative investments (1)		2,020			2,020			1,860			1,860
Other investments		1,820			1,820			1,709			1,709
Cash and invested cash		3,772			3,772			3,919			3,919
Other assets – reinsurance recoverable		294			294			154			154
Separate account assets		120,275			120,275			125,265			125,265

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,043	)		(1,043	)		(1,170	)		(1,170	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(697	)		(697	)		(699	)		(699	)
Account values of certain investment contracts		(30,214	)		(34,226	)		(29,156	)		(33,079	)
Short-term debt		-			-			(250	)		(253	)
Long-term debt		(5,604	)		(5,647	)		(5,270	)		(5,707	)
Reinsurance related embedded derivatives		(116	)		(116	)		(150	)		(150	)
VIEs’ liabilities – derivative instruments		(2	)		(2	)		(13	)		(13	)
Other liabilities:
Credit default swaps		(7	)		(7	)		(3	)		(3	)
Derivative liabilities (1)		(74	)		(74	)		(77	)		(77	)
GLB reserves embedded derivatives (2)		(1,287	)		(1,287	)		(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 September 30, 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		$	62		$	71,227			$	2,002		$	73,291
ABS			-			1,095				46			1,141
U.S. government bonds			420			18				-			438
Foreign government bonds			-			417				115			532
RMBS			-			3,848				1			3,849
CMBS			-			392				11			403
CLOs			-			38				477			515
State and municipal bonds			-			4,480				-			4,480
Hybrid and redeemable preferred securities			46			717				94			857
VIEs’ fixed maturity securities			-			598				-			598
Equity AFS securities			7			74				161			242
Trading securities			161			1,677				76			1,914
Other investments			151			-				-			151
Derivative investments (1)			-			1,688				1,163			2,851
Cash and invested cash			-			3,772				-			3,772
Other assets – reinsurance recoverable			-			-				294			294
Separate account assets			1,097			119,178				-			120,275
Total assets		$	1,944		$	209,219			$	4,440		$	215,603

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,043	)	$	(1,043	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(116	)			-			(116	)
VIEs’ liabilities – derivative instruments			-			-				(2	)		(2	)
Other liabilities:
Credit default swaps			-			-				(7	)		(7	)
Derivative liabilities (1)			-			(641	)			(264	)		(905	)
GLB reserves embedded derivatives			-			-				(1,287	)		(1,287	)
Total liabilities		$	-		$	(1,960	)		$	(2,603	)	$	(4,563	)



		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 September 30, 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	$	2,039		$	3		$	(34	)	$	60		$	(66	)	$	2,002
ABS		33			-			-			13			-			46
Foreign government bonds		114			-			(3	)		-			4			115
RMBS		1			-			-			-			-			1
CMBS		12			1			2			(4	)		-			11
CLOs		461			-			1			15			-			477
Hybrid and redeemable
preferred securities		96			-			(2	)		-			-			94
Equity AFS securities		141			1			-			19			-			161
Trading securities		72			1			1			-			2			76
Derivative investments		740			158			53			(52	)		-			899
Other assets: (5)
GLB reserves embedded derivatives		254			(254	)		-			-			-			-
Reinsurance recoverable		102			192			-			-			-			294
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives (5)		(1,155	)		86			-			26			-			(1,043	)
VIEs’ liabilities – derivative instruments (6)		(3	)		1			-			-			-			(2	)
Other liabilities:
Credit default swaps (7)		(2	)		(5	)		-			-			-			(7	)
GLB reserves embedded derivatives (5)		(102	)		(1,185	)		-			-			-			(1,287	)
Total, net	$	2,803		$	(1,001	)	$	18		$	77		$	(60	)	$	1,837



	For the Three Months Ended September 30, 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)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	2,197		$	1		$	(34	)	$	51		$	(266	)	$	1,949
ABS		7			-			1			-			26			34
Foreign government bonds		108			-			-			-			-			108
RMBS		1			-			-			-			-			1
CMBS		19			-			1			(2	)		-			18
CLOs		210			(2	)		1			45			-			254
Hybrid and redeemable
preferred securities		52			-			-			-			-			52
Equity AFS securities		158			-			-			-			-			158
Trading securities		67			1			(2	)		8			(5	)		69
Derivative investments		780			278			37			(72	)		-			1,023
Other assets: (5)
GLB reserves embedded derivatives		932			(340	)		-			-			-			592
Reinsurance recoverable		54			25			-			-			-			79
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives (5)		(1,167	)		6			-			44			-			(1,117	)
VIEs’ liabilities – derivative instruments (6)		(10	)		(7	)		-			-			-			(17	)
Other liabilities:
Credit default swaps (7)		(1	)		-			-			-			-			(1	)
GLB reserves embedded derivatives (5)		(54	)		(25	)		-			-			-			(79	)
Total, net	$	3,353		$	(63	)	$	4		$	74		$	(245	)	$	3,123



	For the Nine Months Ended September 30, 2015
									Purchases,
							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		$	6		$	(123	)	$	150		$	16		$	2,002
ABS		33			-			-			13			-			46
Foreign government bonds		109			-			2			-			4			115
RMBS		1			-			-			-			-			1
CMBS		15			3			6			(13	)		-			11
CLOs		368			-			4			117			(12	)		477
Hybrid and redeemable
preferred securities		55			(1	)		(3	)		-			43			94
Equity AFS securities		157			2			-			3			(1	)		161
Trading securities		73			2			(1	)		-			2			76
Derivative investments		989			185			(22	)		(253	)		-			899
Other assets – reinsurance recoverable (5)		154			140			-			-			-			294
Future contract benefits – indexed annuity
and universal life contracts embedded
derivatives (5)		(1,170	)		39			-			88			-			(1,043	)
VIEs’ liabilities – derivative instruments (6)		(13	)		11			-			-			-			(2	)
Other liabilities:
Credit default swaps (7)		(3	)		(4	)		-			-			-			(7	)
GLB reserves embedded derivatives (5)		(174	)		(1,113	)		-			-			-			(1,287	)
Total, net	$	2,547		$	(730	)	$	(137	)	$	105		$	52		$	1,837



	For the Nine Months Ended September 30, 2014
									Purchases,
							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		$	9		$	39		$	202		$	(2	)	$	1,949
ABS		10			-			2			-			22			34
Foreign government bonds		79			-			4			-			25			108
RMBS		1			-			-			-			-			1
CMBS		20			-			1			(9	)		6			18
CLOs		179			(3	)		5			69			4			254
State and municipal bonds		28			-			1			-			(29	)		-
Hybrid and redeemable
preferred securities		66			-			1			(5	)		(10	)		52
Equity AFS securities		161			3			(1	)		(5	)		-			158
Trading securities		52			4			4			10			(1	)		69
Derivative investments		1,266			128			250			(195	)		(426	)		1,023
Other assets: (5)
GLB reserves embedded derivatives		-			(652	)		-			-			1,244			592
Reinsurance recoverable		27			52			-			-			-			79
Future contract benefits: (5)
Indexed annuity and IUL
contracts embedded derivatives		(1,048	)		(134	)		-			65			-			(1,117	)
GLB reserves embedded derivatives		1,244			-			-			-			(1,244	)		-
VIEs’ liabilities – derivative instruments (6)		(27	)		10			-			-			-			(17	)
Other liabilities:
Credit default swaps (7)		(2	)		1			-			-			-			(1	)
GLB reserves embedded derivatives (5)		(27	)		(52	)		-			-			-			(79	)
Total, net	$	3,730		$	(634	)	$	306		$	132		$	(411	)	$	3,123

(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-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) 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 September 30, 2015
	Issuances			Sales			Maturities		Settlements				Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	93		$	(3	)	$	-		$	(30	)	$	-	$	60
ABS		13			-			-			-			-		13
CMBS		-			-			-			(4	)		-		(4	)
CLOs		30			-			-			(15	)		-		15
Equity AFS securities		33			(14	)		-			-			-		19
Derivative investments		52			(28	)		(76	)		-			-		(52	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(24	)		-			-			50			-		26
Total, net	$	197		$	(45	)	$	(76	)	$	1		$	-	$	77



	For the Three Months Ended September 30, 2014
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	144		$	(17	)	$	(13	)	$	(9	)	$	(54	)	$	51
CMBS		-			-			-			(2	)		-			(2	)
CLOs		79			-			-			(34	)		-			45
Trading securities		8			-			-			-			-			8
Derivative investments		45			(106	)		(11	)		-			-			(72	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(11	)		-			-			55			-			44
Total, net	$	265		$	(123	)	$	(24	)	$	10		$	(54	)	$	74



	For the Nine Months Ended September 30, 2015
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	287		$	(24	)	$	(15	)	$	(80	)	$	(18	)	$	150
ABS		13			-			-			-			-			13
CMBS		-			-			-			(12	)		(1	)		(13	)
CLOs		139			-			-			(22	)		-			117
Equity AFS securities		43			(40	)		-			-			-			3
Derivative investments		140			(124	)		(269	)		-			-			(253	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(54	)		-			-			142			-			88
Total, net	$	568		$	(188	)	$	(284	)	$	28		$	(19	)	$	105



	For the Nine Months Ended September 30, 2014
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	521		$	(74	)	$	(86	)	$	(41	)	$	(118	)	$	202
CMBS		-			-			-			(9	)		-			(9	)
CLOs		110			-			-			(41	)		-			69
Hybrid and redeemable preferred
securities		-			(5	)		-			-			-			(5	)
Equity AFS securities		-			(5	)		-			-			-			(5	)
Trading securities		14			-			-			(4	)		-			10
Derivative investments		124			(50	)		(269	)		-			-			(195	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(60	)		-			-			125			-			65
Total, net	$	709		$	(134	)	$	(355	)	$	30		$	(118	)	$	132

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,
	2015			2014			2015			2014
Derivative investments (1)	$	162		$	262		$	177		$	84
Embedded derivatives: (1)
Indexed annuity and IUL contracts		(35	)		20			(69	)		(19	)
GLB reserves		(1,297	)		(175	)		(712	)		(247	)
VIEs’ liabilities – derivative instruments (2)		1			(7	)		12			10
Credit default swaps (1)		(5	)		-			(4	)		1
Total, net	$	(1,174	)	$	100		$	(596	)	$	(171	)

(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, 2015								September 30, 2014
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	-	$	(66	)	$	(66	)	$	14	$	(280	)	$	(266	)
ABS		-		-			-			26		-			26
Foreign government bonds		4		-			4			-		-			-
Trading securities		3		(1	)		2			-		(5	)		(5	)
Total, net	$	7	$	(67	)	$	(60	)	$	40	$	(285	)	$	(245	)



	For the Nine								For the Nine
	Months Ended								Months Ended
	September 30, 2015								September 30, 2014
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	159	$	(143	)	$	16		$	418	$	(420	)	$	(2	)
ABS		-		-			-			26		(4	)		22
Foreign government bonds		4		-			4			25		-			25
CMBS		-		-			-			6		-			6
CLOs		4		(16	)		(12	)		8		(4	)		4
State and municipal bonds		-		-			-			-		(29	)		(29	)
Hybrid and redeemable preferred
securities		48		(5	)		43			12		(22	)		(10	)
Equity AFS securities		-		(1	)		(1	)		-		-			-
Trading securities		3		(1	)		2			10		(11	)		(1	)
Derivative investments		-		-			-			-		(426	)		(426	)
Other assets – GLB reserves embedded
derivatives		-		-			-			1,244		-			1,244
Future contract benefits – GLB reserves
embedded derivatives		-		-			-			-		(1,244	)		(1,244	)
Total, net	$	218	$	(166	)	$	52		$	1,749	$	(2,160	)	$	(411	)

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	$	1,307		Discounted cash flow	Liquidity/duration adjustment (1)	0.6	%	-	10.9	%
ABS		25		Discounted cash flow	Liquidity/duration adjustment (1)	3.4	%	-	3.4	%
Foreign government bonds		77		Discounted cash flow	Liquidity/duration adjustment (1)	2.1	%	-	4.6	%
Hybrid and redeemable
preferred securities		20		Discounted cash flow	Liquidity/duration adjustment (1)	1.9	%	-	1.9	%
Equity AFS and trading securities		27		Discounted cash flow	Liquidity/duration adjustment (1)	4.3	%	-	6.0	%
Other assets – reinsurance
recoverable		294		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	%	-	120	%
					NPR (5)	0.05	%	-	0.49	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives		(1,043	)	Discounted cash flow	Lapse rate (2)	1	%	-	15	%
					Mortality rate (6)				(8)
Other liabilities – GLB reserves
embedded derivatives		(1,287	)	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	%	-	120	%
					NPR (5)	0.05	%	-	0.49	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%

(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.