Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of September 30, 2018						As of December 31, 2017
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	93,161		$	93,161		$	94,840		$	94,840
Equity securities		-			-			246			246
Trading securities		1,440			1,440			1,620			1,620
Equity securities		112			112			-			-
Mortgage loans on real estate		12,561			12,239			10,762			10,877
Derivative investments (1)		706			706			915			915
Other investments		2,204			2,204			2,296			2,296
Cash and invested cash		1,460			1,460			1,628			1,628
Other assets:
GLB direct embedded derivatives		1,648			1,648			903			903
GLB ceded embedded derivatives		35			35			51			51
Indexed annuity ceded embedded derivatives		44			44			11			11
Separate account assets		147,692			147,692			144,219			144,219
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,571	)		(1,571	)		(1,418	)		(1,418	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(562	)		(562	)		(592	)		(592	)
Account values of certain investment contracts		(33,684	)		(34,577	)		(32,370	)		(36,200	)
Short-term debt		-			-			(450	)		(452	)
Long-term debt		(5,804	)		(5,795	)		(4,894	)		(5,042	)
Reinsurance related embedded derivatives		(20	)		(20	)		(57	)		(57	)
Other liabilities:
Derivative liabilities (1)		(197	)		(197	)		(338	)		(338	)
GLB ceded embedded derivatives		(193	)		(193	)		(67	)		(67	)

⁽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.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of September 30, 2018
		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		$	-		$	76,871			$	3,209		$	80,080
ABS			-			954				31			985
U.S. government bonds			391			18				-			409
Foreign government bonds			-			351				108			459
RMBS			-			3,280				7			3,287
CMBS			-			725				23			748
CLOs			-			1,311				51			1,362
State and municipal bonds			-			5,218				-			5,218
Hybrid and redeemable preferred securities			74			462				77			613
Trading securities			43			1,379				18			1,440
Equity securities			28			58				26			112
Derivative investments (1)			-			572				535			1,107
Other investments			149			-				-			149
Cash and invested cash			-			1,460				-			1,460
Other assets:
GLB direct embedded derivatives			-			-				1,648			1,648
GLB ceded embedded derivatives			-			-				35			35
Indexed annuity ceded embedded derivatives			-			-				44			44
Separate account assets			764			146,894				-			147,658
Total assets		$	1,449		$	239,553			$	5,812		$	246,814
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,571	)	$	(1,571	)
Reinsurance related embedded derivatives			-			(20	)			-			(20	)
Other liabilities:
Derivative liabilities (1)			-			(417	)			(181	)		(598	)
GLB ceded embedded derivatives			-			-				(193	)		(193	)
Total liabilities		$	-		$	(437	)		$	(1,945	)	$	(2,382	)

		As of December 31, 2017
		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		$	-		$	79,125			$	3,091		$	82,216
ABS			-			947				27			974
U.S. government bonds			556			6				5			567
Foreign government bonds			-			341				110			451
RMBS			-			3,453				12			3,465
CMBS			-			594				6			600
CLOs			-			717				91			808
State and municipal bonds			-			5,119				-			5,119
Hybrid and redeemable preferred securities			71			493				76			640
Equity AFS securities			28			56				162			246
Trading securities			73			1,498				49			1,620
Derivative investments (1)			-			994				603			1,597
Other investments			150			-				-			150
Cash and invested cash			-			1,628				-			1,628
Other assets:
GLB direct embedded derivatives			-			-				903			903
GLB ceded embedded derivatives			-			-				51			51
Indexed annuity ceded embedded derivatives			-			-				11			11
Separate account assets			814			143,405				-			144,219
Total assets		$	1,692		$	238,376			$	5,197		$	245,265
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,418	)	$	(1,418	)
Long-term debt			-			(1,127	)			-			(1,127	)
Reinsurance related embedded derivatives			-			(57	)			-			(57	)
Other liabilities:
Derivative liabilities (1)			-			(447	)			(573	)		(1,020	)
GLB ceded embedded derivatives			-			-				(67	)		(67	)
Total liabilities		$	-		$	(1,631	)		$	(2,058	)	$	(3,689	)

⁽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, 2018
							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 (3)			Value
Investments: (5)
Fixed maturity AFS securities:
Corporate bonds	$	3,181		$	1		$	(30	)	$	88		$	(31	)	$	3,209
ABS		31			-			-			-			-			31
Foreign government bonds		108			-			-			-			-			108
RMBS		-			-			-			7			-			7
CMBS		5			-			-			18			-			23
CLOs		145			-			-			17			(111	)		51
Hybrid and redeemable
preferred securities		78			-			(1	)		-			-			77
Trading securities		22			-			-			2			(6	)		18
Equity securities		26			-			-			-			-			26
Derivative investments		93			(115	)		(55	)		431			-			354
Other assets: (6)
GLB direct embedded derivatives		1,248			400			-			-			-			1,648
GLB ceded embedded derivatives		41			(6	)		-			-			-			35
Indexed annuity ceded embedded derivatives		29			4			-			11			-			44
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,400	)		(164	)		-			(7	)		-			(1,571	)
Other liabilities – GLB ceded embedded
derivatives (6)		(131	)		(62	)		-			-			-			(193	)
Total, net	$	3,476		$	58		$	(86	)	$	567		$	(148	)	$	3,867

	For the Three Months Ended September 30, 2017
							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 (3)			Value
Investments: (5)
Fixed maturity AFS securities:
Corporate bonds	$	2,517		$	4		$	35		$	(35	)	$	59		$	2,580
ABS		43			-			(1	)		-			(15	)		27
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		109			-			1			-			-			110
RMBS		7			-			-			6			-			13
CMBS		21			-			-			(1	)		(14	)		6
CLOs		28			-			-			15			(28	)		15
Hybrid and redeemable
preferred securities		82			-			3			-			(9	)		76
Equity AFS securities		183			-			(1	)		9			(1	)		190
Trading securities		59			-			-			(10	)		1			50
Derivative investments		155			(13	)		9			(85	)		-			66
Other assets: (6)
GLB direct embedded derivatives		298			272			-			-			-			570
GLB ceded embedded derivatives		85			(32	)		-			-			-			53
Indexed annuity ceded embedded derivatives		-			-			-			3			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,268	)		(47	)		-			(3	)		-			(1,318	)
Other liabilities – GLB ceded embedded
derivatives (6)		-			(7	)		-			-			-			(7	)
Total, net	$	2,324		$	177		$	46		$	(101	)	$	(7	)	$	2,439

	For the Nine Months Ended September 30, 2018
							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 (2)			Net (3)(4)			Value
Investments: (5)
Fixed maturity AFS securities:
Corporate bonds	$	3,091		$	7		$	(137	)	$	319		$	(71	)	$	3,209
ABS		27			-			(1	)		5			-			31
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		110			-			(2	)		-			-			108
RMBS		12			-			-			7			(12	)		7
CMBS		6			1			-			37			(21	)		23
CLOs		91			-			-			164			(204	)		51
Hybrid and redeemable
preferred securities		76			-			1			-			-			77
Equity AFS securities		162			-			-			-			(162	)		-
Trading securities		49			(5	)		-			(20	)		(6	)		18
Equity securities		-			-			-			-			26			26
Derivative investments		30			106			(113	)		331			-			354
Other assets: (6)
GLB direct embedded derivatives		903			745			-			-			-			1,648
GLB ceded embedded derivatives		51			(16	)		-			-			-			35
Indexed annuity ceded embedded derivatives		11			4			-			29			-			44
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,418	)		(175	)		-			22			-			(1,571	)
Other liabilities – GLB ceded embedded
derivatives (6)		(67	)		(126	)		-			-			-			(193	)
Total, net	$	3,139		$	541		$	(252	)	$	889		$	(450	)	$	3,867

	For the Nine Months Ended September 30, 2017
							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 (3)			Value
Investments: (5)
Fixed maturity AFS securities:
Corporate bonds	$	2,405		$	15		$	153		$	(182	)	$	189		$	2,580
ABS		33			-			-			-			(6	)		27
U.S. government bonds		-			-			-			-			5			5
Foreign government bonds		111			-			(1	)		-			-			110
RMBS		3			-			-			10			-			13
CMBS		7			-			1			54			(56	)		6
CLOs		68			-			-			33			(86	)		15
State and municipal bonds		-			(1	)		-			-			1			-
Hybrid and redeemable
preferred securities		76			-			14			-			(14	)		76
Equity AFS securities		177			1			(2	)		15			(1	)		190
Trading securities		65			2			8			(26	)		1			50
Derivative investments		(93	)		(25	)		97			87			-			66
Other assets: (6)
GLB direct embedded derivatives		-			570			-			-			-			570
GLB ceded embedded derivatives		203			(150	)		-			-			-			53
Indexed annuity ceded embedded derivatives		-			-			-			3			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,139	)		(230	)		-			51			-			(1,318	)
Other liabilities: (6)
GLB direct embedded derivatives		(371	)		371			-			-			-			-
GLB ceded embedded derivatives		-			(7	)		-			-			-			(7	)
Total, net	$	1,545		$	546		$	270		$	45		$	33		$	2,439

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

⁽²⁾ Net issuances, sales, maturities, settlements, calls, net include financial instruments acquired from Liberty Life as follows: corporate bonds of $67 million and ABS of $17 million.

⁽³⁾ 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-period amortized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in the prior period.

⁽⁴⁾ Transfers into or out of Level 3 for FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets.

⁽⁵⁾ 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).

⁽⁶⁾ 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 September 30, 2018
	Issuances			Sales		Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	162		$	-	$	(1	)	$	(65	)	$	(8	)	$	88
RMBS		7			-		-			-			-			7
CMBS		18			-		-			-			-			18
CLOs		17			-		-			-			-			17
Trading securities		2			-		-			-			-			2
Derivative investments		96			455		(120	)		-			-			431
Other assets – indexed annuity ceded
embedded derivatives		11			-		-			-			-			11
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(83	)		-		-			76			-			(7	)
Total, net	$	230		$	455	$	(121	)	$	11		$	(8	)	$	567

	For the Three Months Ended September 30, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	167		$	(114	)	$	(19	)	$	(43	)	$	(26	)	$	(35	)
RMBS		6			-			-			-			-			6
CMBS		-			-			-			(1	)		-			(1	)
CLOs		15			-			-			-			-			15
Equity AFS securities		10			(1	)		-			-			-			9
Trading securities		-			(10	)		-			-			-			(10	)
Derivative investments		50			(23	)		(112	)		-			-			(85	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			-			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(14	)		-			-			11			-			(3	)
Total, net	$	237		$	(148	)	$	(131	)	$	(33	)	$	(26	)	$	(101	)

	For the Nine Months Ended September 30, 2018
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	785		$	(156	)	$	(3	)	$	(238	)	$	(69	)	$	319
ABS		22			(17	)		-			-			-			5
U.S. government bonds		-			(5	)		-			-			-			(5	)
RMBS		7			-			-			-			-			7
CMBS		39			-			-			(2	)		-			37
CLOs		164			-			-			-			-			164
Trading securities		4			(24	)		-			-			-			(20	)
Equity securities		1			(1	)		-			-			-			-
Derivative investments		225			460			(354	)		-			-			331
Other assets – indexed annuity ceded
embedded derivatives		29			-			-			-			-			29
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(158	)		-			-			180			-			22
Total, net	$	1,118		$	257		$	(357	)	$	(60	)	$	(69	)	$	889

	For the Nine Months Ended September 30, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	367		$	(179	)	$	(66	)	$	(170	)	$	(134	)	$	(182	)
RMBS		10			-			-			-			-			10
CMBS		55			-			-			(1	)		-			54
CLOs		33			-			-			-			-			33
Equity AFS securities		18			(3	)		-			-			-			15
Trading securities		2			(27	)		-			(1	)		-			(26	)
Derivative investments		145			243			(301	)		-			-			87
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			-			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(45	)		-			-			96			-			51
Total, net	$	588		$	34		$	(367	)	$	(76	)	$	(134	)	$	45

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,
	2018			2017			2018			2017
Derivative investments	$	(1	)	$	(83	)	$	105		$	(159	)
Embedded derivatives:
Indexed annuity and IUL contracts		(11	)		2			(18	)		(13	)
GLB		576			428			1,264			1,352
Total, net (1)	$	564		$	347		$	1,351		$	1,180

⁽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
	September 30, 2018								September 30, 2017
	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	$	11	$	(42	)	$	(31	)	$	116	$	(57	)	$	59
ABS		-		-			-			-		(15	)		(15	)
CMBS		-		-			-			-		(14	)		(14	)
CLOs		-		(111	)		(111	)		-		(28	)		(28	)
Hybrid and redeemable preferred
securities		-		-			-			-		(9	)		(9	)
Equity AFS securities		-		-			-			-		(1	)		(1	)
Trading securities		-		(6	)		(6	)		1		-			1
Total, net	$	11	$	(159	)	$	(148	)	$	117	$	(124	)	$	(7	)

	For the Nine								For the Nine
	Months Ended								Months Ended
	September 30, 2018								September 30, 2017
	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	$	54	$	(125	)	$	(71	)	$	277	$	(88	)	$	189
ABS		-		-			-			15		(21	)		(6	)
U.S. government bonds		-		-			-			5		-			5
RMBS		-		(12	)		(12	)		-		-			-
CMBS		-		(21	)		(21	)		3		(59	)		(56	)
CLOs		-		(204	)		(204	)		30		(116	)		(86	)
State and municipal bonds		-		-			-			2		(1	)		1
Hybrid and redeemable preferred
securities		-		-			-			-		(14	)		(14	)
Equity AFS securities		-		(162	)		(162	)		-		(1	)		(1	)
Trading securities		-		(6	)		(6	)		4		(3	)		1
Equity securities		26		-			26			-		-			-
Total, net	$	80	$	(530	)	$	(450	)	$	336	$	(303	)	$	33

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	$	2,445		Discounted cash flow	Liquidity/duration adjustment (1)	0.5	%	-	24.8	%
ABS		23		Discounted cash flow	Liquidity/duration adjustment (1)	3.0	%	-	3.0	%
Foreign government bonds		78		Discounted cash flow	Liquidity/duration adjustment (1)	1.1	%	-	2.8	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment (1)	1.8	%	-	1.8	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment (1)	4.5	%	-	5.1	%
Other assets:
GLB direct and ceded
embedded derivatives		1,683		Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	85	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	80	%	-	115	%
					NPR (5)	0.01	%	-	0.32	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Indexed annuity ceded
embedded derivatives		44		Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,571	)	Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)
Other liabilities – GLB ceded
embedded derivatives		(193	)	Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	85	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	80	%	-	115	%
					NPR (5)	0.01	%	-	0.32	%
					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.