Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2016						As of December 31, 2015
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	88,064		$	88,064		$	84,964		$	84,964
VIEs’ fixed maturity securities		599			599			598			598
Equity securities		245			245			237			237
Trading securities		1,864			1,864			1,854			1,854
Mortgage loans on real estate		8,916			9,350			8,678			8,936
Derivative investments (1)		2,085			2,085			1,537			1,537
Other investments (2)		2,048			2,048			1,778			1,778
Cash and invested cash		3,177			3,177			3,146			3,146
Other assets – reinsurance recoverable		433			433			268			268
Separate account assets		123,506			123,506			123,619			123,619
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,088	)		(1,088	)		(1,100	)		(1,100	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(678	)		(678	)		(687	)		(687	)
Account values of certain investment contracts		(30,771	)		(35,831	)		(30,392	)		(34,618	)
Long-term debt		(5,650	)		(5,350	)		(5,553	)		(5,505	)
Reinsurance related embedded derivatives		(111	)		(111	)		(87	)		(87	)
VIEs’ liabilities – derivative instruments		-			-			(4	)		(4	)
Other liabilities:
Credit default swaps		(12	)		(12	)		(9	)		(9	)
Derivative liabilities (1)		(216	)		(216	)		(69	)		(69	)
GLB reserves embedded derivatives (3)		(1,916	)		(1,916	)		(953	)		(953	)

⁽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⁾ Includes credit default swaps in an asset position associated with consolidated VIEs.

⁽³⁾ 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, 2016
		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		$	-		$	73,712			$	2,185		$	75,897
ABS			-			1,015				44			1,059
U.S. government bonds			436			14				-			450
Foreign government bonds			-			421				111			532
RMBS			-			3,678				1			3,679
CMBS			-			340				9			349
CLOs			-			37				591			628
State and municipal bonds			-			4,744				-			4,744
Hybrid and redeemable preferred securities			48			586				92			726
VIEs’ fixed maturity securities			-			599				-			599
Equity AFS securities			9			69				167			245
Trading securities			162			1,628				74			1,864
Derivative investments (1)			-			2,657				818			3,475
Other investments (2)			151			-				2			153
Cash and invested cash			-			3,177				-			3,177
Other assets – reinsurance recoverable			-			-				433			433
Separate account assets			996			122,510				-			123,506
Total assets		$	1,802		$	215,187			$	4,527		$	221,516
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,088	)	$	(1,088	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(111	)			-			(111	)
Other liabilities:
Credit default swaps			-			-				(12	)		(12	)
Derivative liabilities (1)			-			(978	)			(628	)		(1,606	)
GLB reserves embedded derivatives			-			-				(1,916	)		(1,916	)
Total liabilities		$	-		$	(2,292	)		$	(3,644	)	$	(5,936	)

		As of December 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		$	60		$	70,878			$	1,993		$	72,931
ABS			-			1,056				45			1,101
U.S. government bonds			412			17				-			429
Foreign government bonds			-			413				111			524
RMBS			-			3,727				1			3,728
CMBS			-			366				10			376
CLOs			-			38				551			589
State and municipal bonds			-			4,480				-			4,480
Hybrid and redeemable preferred securities			48			664				94			806
VIEs’ fixed maturity securities			-			598				-			598
Equity AFS securities			8			65				164			237
Trading securities			160			1,621				73			1,854
Other investments			148			-				-			148
Derivative investments (1)			-			1,459				853			2,312
Cash and invested cash			-			3,146				-			3,146
Other assets – reinsurance recoverable			-			-				268			268
Separate account assets			1,053			122,566				-			123,619
Total assets		$	1,889		$	211,094			$	4,163		$	217,146
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,100	)	$	(1,100	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(87	)			-			(87	)
VIEs’ liabilities – derivative instruments			-			-				(4	)		(4	)
Other liabilities:
Credit default swaps			-			-				(9	)		(9	)
Derivative liabilities (1)			-			(546	)			(298	)		(844	)
GLB reserves embedded derivatives			-			-				(953	)		(953	)
Total liabilities		$	-		$	(1,836	)		$	(2,364	)	$	(4,200	)

⁽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.

⁽²⁾ Includes credit default swaps in an asset position associated with consolidated VIEs.

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended March 31, 2016
							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: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,993		$	6		$	18		$	28		$	140		$	2,185
ABS		45			-			(1	)		-			-			44
Foreign government bonds		111			-			-			-			-			111
RMBS		1			-			-			-			-			1
CMBS		10			-			-			(1	)		-			9
CLOs		551			-			2			38			-			591
Hybrid and redeemable
preferred securities		94			-			(2	)		-			-			92
Equity AFS securities		164			-			(1	)		4			-			167
Trading securities		73			1			2			(1	)		(1	)		74
Derivative investments		555			(440	)		92			(17	)		-			190
Other investments (4)		-			2			-			-			-			2
Other assets – reinsurance recoverable (5)		268			165			-			-			-			433
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives (5)		(1,100	)		7			-			5			-			(1,088	)
VIEs’ liabilities – derivative instruments (4)		(4	)		4			-			-			-			-
Other liabilities:
Credit default swaps (4)		(9	)		(3	)		-			-			-			(12	)
GLB reserves embedded derivatives (5)		(953	)		(963	)		-			-			-			(1,916	)
Total, net	$	1,799		$	(1,221	)	$	110		$	56		$	139		$	883

	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: (3)
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 –reinsurance recoverable (5)		154			50			-			-			-		204
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives (5)		(1,170	)		(38	)		-			28			-		(1,180	)
VIEs’ liabilities – derivative instruments (4)		(13	)		8			-			-			-		(5	)
Other liabilities:
Credit default swaps (4)		(3	)		-			-			-			-		(3	)
GLB reserves embedded derivatives (5)		(174	)		(378	)		-			-			-		(552	)
Total, net	$	2,547		$	(447	)	$	30		$	(20	)	$	99	$	2,209

⁽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⁾ 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⁾ 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).

⁽⁵⁾ Gains (losses) from sales, maturities, settlements and calls 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, 2016
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	116		$	9		$	(4	)	$	(36	)	$	(57	)	$	28
CMBS		-			(1	)		-			-			-			(1	)
CLOs		40			-			-			(2	)		-			38
Equity AFS securities		4			-			-			-			-			4
Trading securities		-			-			-			(1	)		-			(1	)
Derivative investments		40			(43	)		(14	)		-			-			(17	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(26	)		-			-			31			-			5
Total, net	$	174		$	(35	)	$	(18	)	$	(8	)	$	(57	)	$	56

	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	)

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

	For the Three
	Months Ended
	March 31,
	2016			2015
Derivative investments	$	(393	)	$	(95	)
Other investments		2			-
Embedded derivatives:
Indexed annuity and IUL contracts		(23	)		(26	)
GLB reserves		(824	)		(161	)
VIEs’ liabilities – derivative instruments		4			8
Credit default swaps		(3	)		-
Total, net (1)	$	(1,237	)	$	(274	)

⁽¹⁾ Included in realized gain (loss) 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, 2016								March 31, 2015
	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	$	164	$	(24	)	$	140		$	80	$	(1	)	$	79
Hybrid and redeemable preferred
securities		-		-			-			25		(5	)		20
Trading securities		-		(1	)		(1	)		-		-			-
Total, net	$	164	$	(25	)	$	139		$	105	$	(6	)	$	99

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	$	1,517		Discounted cash flow	Liquidity/duration adjustment (1)	0.7	%		19.1	%
ABS		25		Discounted cash flow	Liquidity/duration adjustment (1)	3.3	%	-	3.3	%
Foreign government bonds		77		Discounted cash flow	Liquidity/duration adjustment (1)	2.1	%	-	4.4	%
Hybrid and redeemable
preferred securities		20		Discounted cash flow	Liquidity/duration adjustment (1)	2.5	%	-	2.5	%
Equity AFS and trading securities		27		Discounted cash flow	Liquidity/duration adjustment (1)	4.3	%	-	5.8	%
Other assets – reinsurance
recoverable		433		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)	0.04	%	-	0.51	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,088	)	Discounted cash flow	Lapse rate (2)	1	%	-	15	%
					Mortality rate (6)				(8)
Other liabilities – GLB reserves
embedded derivatives		(1,916	)	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)	0.04	%	-	0.51	%
					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.