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Investments (Tables)

6 Months Ended

Jun. 30, 2018

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



	As of June 30, 2018
	Amortized		Gross Unrealized							Fair
	Cost		Gains		Losses		OTTI (1)			Value
Fixed maturity AFS securities:
Corporate bonds	$	78,009	$	3,605	$	1,582	$	(9	)	$	80,041
Asset-backed securities ("ABS")		964		44		7		(17	)		1,018
U.S. government bonds		396		29		3		-			422
Foreign government bonds		430		41		-		-			471
Residential mortgage-backed securities ("RMBS")		3,317		119		84		(22	)		3,374
Commercial mortgage-backed securities ("CMBS")		759		5		20		(3	)		747
Collateralized loan obligations ("CLOs")		1,121		-		7		(5	)		1,119
State and municipal bonds		4,509		753		14		-			5,248
Hybrid and redeemable preferred securities		578		65		23		-			620
Total AFS securities	$	90,083	$	4,661	$	1,740	$	(56	)	$	93,060



	As of December 31, 2017
	Amortized		Gross Unrealized							Fair
	Cost		Gains		Losses		OTTI (1)			Value
Fixed maturity AFS securities:
Corporate bonds	$	75,701	$	6,862	$	354	$	(7	)	$	82,216
ABS		903		51		7		(27	)		974
U.S. government bonds		527		41		1		-			567
Foreign government bonds		395		56		-		-			451
RMBS		3,327		155		39		(22	)		3,465
CMBS		590		10		2		(2	)		600
CLOs		803		2		2		(5	)		808
State and municipal bonds		4,172		953		6		-			5,119
Hybrid and redeemable preferred securities		575		87		22		-			640
Total fixed maturity securities		86,993		8,217		433		(63	)		94,840
Equity AFS securities		247		16		17		-			246
Total AFS securities	$	87,240	$	8,233	$	450	$	(63	)	$	95,086

⁽¹⁾

Includes unrealized (gains) and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date.

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	3,607	$	3,649
Due after one year through five years		18,525		18,658
Due after five years through ten years		17,025		17,013
Due after ten years		44,765		47,482
Subtotal		83,922		86,802
Structured securities (ABS, MBS, CLOs)		6,161		6,258
Total fixed maturity AFS securities	$	90,083	$	93,060

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



	As of June 30, 2018
	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 AFS securities:
Corporate bonds	$	29,697		$	1,070	$	4,512		$	513	$	34,209		$	1,583
ABS		171			2		135			13		306			15
U.S. government bonds		113			1		18			2		131			3
RMBS		760			27		607			58		1,367			85
CMBS		525			16		58			4		583			20
CLOs		639			7		57			-		696			7
State and municipal bonds		215			5		85			9		300			14
Hybrid and redeemable
preferred securities		47			2		118			21		165			23
Total AFS securities	$	32,167		$	1,130	$	5,590		$	620	$	37,757		$	1,750

Total number of AFS securities in an unrealized loss position															3,092



	As of December 31, 2017
	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 AFS securities:
Corporate bonds	$	4,854		$	68	$	4,893		$	288	$	9,747		$	356
ABS		62			1		151			15		213			16
U.S. government bonds		156			-		19			1		175			1
RMBS		302			4		641			36		943			40
CMBS		113			-		60			3		173			3
CLOs		281			2		72			-		353			2
State and municipal bonds		34			-		93			6		127			6
Hybrid and redeemable
preferred securities		20			-		126			22		146			22
Total fixed maturity securities		5,822			75		6,055			371		11,877			446
Equity AFS securities		22			14		8			3		30			17
Total AFS securities	$	5,844		$	89	$	6,063		$	374	$	11,907		$	463

Total number of AFS securities in an unrealized loss position															1,128

Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost



	As of June 30, 2018
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities (1)
Less than six months	$	173	$	59	$	-			23
Six months or greater, but less than nine months		39		16		-			6
Nine months or greater, but less than twelve months		7		4		-			1
Twelve months or greater		117		47		8			28
Total	$	336	$	126	$	8			58



	As of December 31, 2017
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities (1)
Less than six months	$	156	$	57	$	1			26
Six months or greater, but less than nine months		2		1		-			4
Nine months or greater, but less than twelve months		15		8		-			7
Twelve months or greater		215		78		10			49
Total	$	388	$	144	$	11			86

⁽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 Six
	Months Ended						Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Balance as of beginning-of-period	$	378		$	393		$	378		$	430
Increases attributable to:
Credit losses on securities for which an
OTTI was not previously recognized		1			4			2			5
Credit losses on securities for which an
OTTI was previously recognized		-			-			1			3
Decreases attributable to:
Securities sold, paid down or matured		(4	)		(7	)		(6	)		(48	)
Balance as of end-of-period	$	375		$	390		$	375		$	390

Composition Of Current And Past Due Mortgage Loans On Real Estate



	As of				As of
	June 30,				December 31,
		2018				2017
Current		$	12,231			$	10,762
60 to 90 days past due			2				-
Greater than 90 days past due			3				3
Valuation allowance associated with impaired mortgage loans on real estate			(2	)			(3	)
Unamortized premium (discount)			(17	)			-
Total carrying value		$	12,217			$	10,762

Schedule Of Impaired Mortgage Loans



		As of				As of
	June 30,				December 31,
		2018				2017
Number of impaired mortgage loans on real estate		2				3

Principal balance of impaired mortgage loans on real estate		$	8			$	11
Valuation allowance associated with impaired mortgage loans on real estate			(2	)			(3	)
Carrying value of impaired mortgage loans on real estate		$	6			$	8

Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate



	For the Three					For the Six
	Months Ended					Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Balance as of beginning-of-period	$	3		$	2	$	3		$	2
Additions		-			-		-			-
Charge-offs, net of recoveries		(1	)		-		(1	)		-
Balance as of end-of-period	$	2		$	2	$	2		$	2

Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Average carrying value for impaired mortgage loans on real estate	$	7	$	5	$	7	$	5
Interest income recognized on impaired mortgage loans on real estate		-		-		-		-
Interest income collected on impaired mortgage loans on real estate		-		-		-		-

Credit Quality Indicators For Mortgage Loans



	As of June 30, 2018				As of December 31, 2017
				Debt-				Debt-
				Service				Service
	Carrying		% of	Coverage	Carrying		% of	Coverage
Loan-to-Value Ratio	Value		Total	Ratio	Value		Total	Ratio
Less than 65%	$	11,043	90.4%	2.31	$	9,642	89.6%	2.26
65% to 74%		1,081	8.8%	1.84		1,000	9.3%	1.94
75% to 100%		87	0.7%	1.03		112	1.0%	0.97
Greater than 100%		6	0.1%	0.77		8	0.1%	0.82
Total mortgage loans on real estate	$	12,217	100.0%		$	10,762	100.0%

Realized Gain (Loss) Related To Certain Investments



	For the Three						For the Six
	Months Ended						Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Fixed maturity AFS securities: (1)
Gross gains	$	1		$	3		$	16		$	11
Gross losses		(12	)		(13	)		(45	)		(25	)
Equity AFS securities:
Gross gains		-			-			-			1
Gain (loss) on other investments (2)		4			(2	)		6			(5	)
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(6	)		(6	)		(11	)		(13	)
Total realized gain (loss) related to certain investments, pre-tax	$	(13	)	$	(18	)	$	(34	)	$	(31	)

⁽¹⁾

These amounts are represented net of related fair value hedging activity. See Note 6 for more information.

⁽²⁾

Includes market adjustments on equity securities still held of $2 million for the three and six months ended June 30, 2018.

OTTI Recognized In Net Income (Loss) And OCI



	For the Three						For the Six
	Months Ended						Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
OTTI Recognized in Net Income (Loss)
Fixed maturity AFS securities:
Corporate bonds	$	(1	)	$	(4	)	$	(3	)	$	(5	)
ABS		-			-			-			(1	)
RMBS		-			-			-			(1	)
State and municipal bonds		-			-			-			(1	)
Gross OTTI recognized in net income (loss)		(1	)		(4	)		(3	)		(8	)
Associated amortization of DAC, VOBA, DSI and DFEL		-			-			-			-
Net OTTI recognized in net income (loss), pre-tax	$	(1	)	$	(4	)	$	(3	)	$	(8	)

Payables For Collateral On Investments



	As of June 30, 2018				As of December 31, 2017
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments (1)	$	468	$	468	$	765	$	765
Securities pledged under securities lending agreements (2)		142		138		222		213
Securities pledged under repurchase agreements (3)		909		977		530		588
Investments pledged for Federal Home Loan Bank of
Indianapolis (“FHLBI”) (4)		3,180		4,712		2,900		4,235
Total payables for collateral on investments	$	4,699	$	6,295	$	4,417	$	5,801

⁽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 additional information.

⁽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 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 repurchase program is typically invested in fixed maturity AFS securities.

⁽⁴⁾

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 Six
	Months Ended
	June 30,
	2018			2017
Collateral payable for derivative investments	$	(297	)	$	160
Securities pledged under securities lending agreements		(80	)		(8	)
Securities pledged under repurchase agreements		379			5
Investments pledged for FHLBI		280			(200	)
Total increase (decrease) in payables for collateral on investments	$	282		$	(43	)

Schedule Of Securities Pledged By Contractual Maturity



	As of June 30, 2018
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Repurchase Agreements
Corporate bonds	$	-	$	760	$	-	$	149	$	909
Total		-		760		-		149		909
Securities Lending
Corporate bonds		142		-		-		-		142
Total		142		-		-		-		142
Total gross secured borrowings	$	142	$	760	$	-	$	149	$	1,051


	As of December 31, 2017
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Repurchase Agreements
Corporate bonds	$	-	$	100	$	280	$	150	$	530
Total		-		100		280		150		530
Securities Lending
Corporate bonds		222		-		-		-		222
Total		222		-		-		-		222
Total gross secured borrowings	$	222	$	100	$	280	$	150	$	752