Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of December 31, 2018						As of December 31, 2017
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	94,024		$	94,024		$	94,840		$	94,840
Equity securities		-			-			246			246
Trading securities		1,950			1,950			1,620			1,620
Equity securities		99			99			-			-
Mortgage loans on real estate		13,260			13,092			10,762			10,877
Derivative investments (1)		1,107			1,107			915			915
Other investments		2,255			2,255			2,296			2,296
Cash and invested cash		2,345			2,345			1,628			1,628
Other assets:
GLB direct embedded derivatives		123			123			903			903
GLB ceded embedded derivatives		72			72			51			51
Indexed annuity ceded embedded derivatives		902			902			11			11
Separate account assets		132,833			132,833			144,219			144,219
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,305	)		(1,305	)		(1,418	)		(1,418	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(542	)		(542	)		(592	)		(592	)
Account values of certain investment contracts		(34,535	)		(36,358	)		(32,370	)		(36,200	)
Short-term debt		-			-			(450	)		(452	)
Long-term debt		(5,839	)		(5,604	)		(4,894	)		(5,042	)
Reinsurance related embedded derivatives		(3	)		(3	)		(57	)		(57	)
Other liabilities:
Derivative liabilities (1)		(160	)		(160	)		(338	)		(338	)
GLB ceded embedded derivatives		-			-			(67	)		(67	)
Benefit Plans’ Assets (2)		1,420			1,420			1,626			1,626

⁽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⁾ Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets.  Refer to Note 17 for information regarding our benefit plans.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of December 31, 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		$	-		$	77,079			$	3,269		$	80,348
ABS			-			937				29			966
U.S. government bonds			399			18				-			417
Foreign government bonds			-			339				109			448
RMBS			-			3,366				7			3,373
CMBS			-			802				2			804
CLOs			-			1,625				105			1,730
State and municipal bonds			-			5,345				-			5,345
Hybrid and redeemable preferred securities			67			451				75			593
Trading securities			43			1,840				67			1,950
Equity securities			16			58				25			99
Derivative investments (1)			-			727				705			1,432
Other investments			150			-				-			150
Cash and invested cash			-			2,345				-			2,345
Other assets:
GLB direct embedded derivatives			-			-				123			123
GLB ceded embedded derivatives			-			-				72			72
Indexed annuity ceded embedded derivatives			-			-				902			902
Separate account assets			665			132,135				-			132,800
Total assets		$	1,340		$	227,067			$	5,490		$	233,897
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,305	)	$	(1,305	)
Reinsurance related embedded derivatives			-			(3	)			-			(3	)
Other liabilities:
Derivative liabilities (1)			-			(314	)			(171	)		(485	)
Total liabilities		$	-		$	(317	)		$	(1,476	)	$	(1,793	)
Benefit Plans’ Assets		$	158		$	1,262			$	-		$	1,420

		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	)
Benefit Plans’ Assets		$	210		$	1,416			$	-		$	1,626

⁽¹⁾ Derivative investment assets and liabilities are presented within the fair value hierarchy 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 Year Ended December 31, 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		$	10		$	(199	)	$	429		$	(62	)	$	3,269
ABS		27			-			(1	)		5			(2	)		29
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		110			-			(1	)		-			-			109
RMBS		12			-			-			7			(12	)		7
CMBS		6			-			-			35			(39	)		2
CLOs		91			-			-			218			(204	)		105
Hybrid and redeemable
preferred securities		76			-			(1	)		-			-			75
Equity AFS securities		162			-			-			-			(162	)		-
Trading securities		49			(5	)		-			30			(7	)		67
Equity securities		-			(1	)		-			-			26			25
Derivative investments		30			170			(69	)		403			-			534
Other assets: (6)
GLB direct embedded derivatives		903			(780	)		-			-			-			123
GLB ceded embedded derivatives		51			21			-			-			-			72
Indexed annuity ceded embedded derivatives		11			(117	)		-			1,008			-			902
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,418	)		198			-			(85	)		-			(1,305	)
Other liabilities – GLB ceded embedded
derivatives (6)		(67	)		67			-			-			-			-
Total, net	$	3,139		$	(437	)	$	(271	)	$	2,045		$	(462	)	$	4,014

	For the Year Ended December 31, 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		$	19		$	198		$	99		$	370		$	3,091
ABS		33			-			(1	)		-			(5	)		27
U.S. government bonds		-			-			-			-			5			5
Foreign government bonds		111			-			(1	)		-			-			110
RMBS		3			-			-			20			(11	)		12
CMBS		7			-			1			54			(56	)		6
CLOs		68			-			-			124			(101	)		91
State and municipal bonds		-			(1	)		-			-			1			-
Hybrid and redeemable
preferred securities		76			-			15			(1	)		(14	)		76
Equity AFS securities		177			1			(2	)		(13	)		(1	)		162
Trading securities		65			3			8			(26	)		(1	)		49
Derivative investments		(93	)		(27	)		129			21			-			30
Other assets: (6)
GLB direct embedded derivatives		-			903			-			-			-			903
GLB ceded embedded derivatives		203			(152	)		-			-			-			51
Indexed annuity ceded embedded derivatives		-			-			-			11			-			11
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,139	)		(400	)		-			121			-			(1,418	)
Other liabilities: (6)
GLB direct embedded derivatives		(371	)		371			-			-			-			-
GLB ceded embedded derivatives		-			(67	)		-			-			-			(67	)
Total, net	$	1,545		$	650		$	347		$	410		$	187		$	3,139

	For the Year Ended December 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 (3)			Value
Investments: (5)
Fixed maturity AFS securities:
Corporate bonds	$	1,993		$	4		$	(31	)	$	58		$	381		$	2,405
ABS		45			-			(2	)		14			(24	)		33
U.S. government bonds		-			-			-			8			(8	)		-
Foreign government bonds		111			-			-			-			-			111
RMBS		1			-			-			66			(64	)		3
CMBS		10			2			(1	)		27			(31	)		7
CLOs		551			-			-			138			(621	)		68
Hybrid and redeemable
preferred securities		94			-			(3	)		(15	)		-			76
Equity AFS securities		164			5			(4	)		12			-			177
Trading securities		73			4			-			5			(17	)		65
Derivative investments		555			(483	)		(1	)		(164	)		-			(93	)
Other assets – GLB ceded
embedded derivatives (6)		268			(65	)		-			-			-			203
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (6)		(1,100	)		(120	)		-			81			-			(1,139	)
VIEs’ liabilities – derivative instruments (7)		(4	)		4			-			-			-			-
Other liabilities:
Credit default swaps (7)		(9	)		(6	)		-			15			-			-
GLB direct embedded derivatives (6)		(953	)		582			-			-			-			(371	)
Total, net	$	1,799		$	(73	)	$	(42	)	$	245		$	(384	)	$	1,545

⁽¹⁾ The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6).

⁽²⁾ 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 reported 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 years.

⁽⁴⁾ Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are displayed 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).

⁽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 Year Ended December 31, 2018
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	947		$	(161	)	$	(3	)	$	(277	)	$	(77	)	$	429
ABS		22			(17	)		-			-			-			5
U.S. government bonds		-			(5	)		-			-			-			(5	)
RMBS		7			-			-			-			-			7
CMBS		39			-			-			(4	)		-			35
CLOs		218			-			-			-			-			218
Trading securities		54			(24	)		-			-			-			30
Equity securities		1			(1	)		-			-			-			-
Derivative investments		365			464			(426	)		-			-			403
Other assets – indexed annuity ceded
embedded derivatives		1,030			-			-			(22	)		-			1,008
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(284	)		-			-			199			-			(85	)
Total, net	$	2,399		$	256		$	(429	)	$	(104	)	$	(77	)	$	2,045

	For the Year Ended December 31, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	747		$	(200	)	$	(98	)	$	(206	)	$	(144	)	$	99
RMBS		20			-			-			-			-			20
CMBS		55			-			-			(1	)		-			54
CLOs		124			-			-			-			-			124
Hybrid and redeemable preferred
securities		-			-			-			(1	)		-			(1	)
Equity AFS securities		18			(31	)		-			-			-			(13	)
Trading securities		2			(27	)		-			(1	)		-			(26	)
Derivative investments		197			234			(410	)		-			-			21
Other assets – indexed annuity ceded
embedded derivatives		11			-			-			-			-			11
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(71	)		-			-			192			-			121
Total, net	$	1,103		$	(24	)	$	(508	)	$	(17	)	$	(144	)	$	410

	For the Year Ended December 31, 2016
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	460		$	(62	)	$	(23	)	$	(177	)	$	(140	)	$	58
ABS		15			-			-			(1	)		-			14
U.S. government bonds		-			-			-			8			-			8
RMBS		67			-			-			(1	)		-			66
CMBS		31			(1	)		-			(3	)		-			27
CLOs		140			-			-			(2	)		-			138
Hybrid and redeemable preferred
securities		-			(15	)		-			-			-			(15	)
Equity AFS securities		18			(6	)		-			-			-			12
Trading securities		6			-			-			(1	)		-			5
Derivative investments		176			(169	)		(171	)		-			-			(164	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(70	)		-			-			151			-			81
Other liabilities – credit default swaps		-			15			-			-			-			15
Total, net	$	843		$	(238	)	$	(194	)	$	(26	)	$	(140	)	$	245

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

	For the Years Ended December 31,
	2018			2017			2016
Derivative investments	$	90		$	(266	)	$	(431	)
Embedded derivatives:
Indexed annuity and IUL contracts		(38	)		(14	)		(16	)
GLB		(75	)		1,904			1,122
VIEs’ liabilities – derivative instruments		-			-			4
Total, net (1)	$	(23	)	$	1,624		$	679

⁽¹⁾ Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Components Of The Transfers In And Out Of Level 3

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:

	For the Year Ended December 31, 2018
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	78	$	(140	)	$	(62	)
ABS		-		(2	)		(2	)
RMBS		-		(12	)		(12	)
CMBS		1		(40	)		(39	)
CLOs		-		(204	)		(204	)
Equity AFS securities		-		(162	)		(162	)
Trading securities		-		(7	)		(7	)
Equity securities		26		-			26
Total, net	$	105	$	(567	)	$	(462	)

	For the Year Ended December 31, 2017
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	458	$	(88	)	$	370
ABS		16		(21	)		(5	)
U.S. government bonds		5		-			5
RMBS		-		(11	)		(11	)
CMBS		3		(59	)		(56	)
CLOs		30		(131	)		(101	)
State and municipal bonds		2		(1	)		1
Hybrid and redeemable preferred securities		-		(14	)		(14	)
Equity AFS securities		-		(1	)		(1	)
Trading securities		4		(5	)		(1	)
Total, net	$	518	$	(331	)	$	187

	For the Year Ended December 31, 2016
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	605	$	(224	)	$	381
ABS		4		(28	)		(24	)
U.S. government bonds		-		(8	)		(8	)
RMBS		3		(67	)		(64	)
CMBS		-		(31	)		(31	)
CLOs		-		(621	)		(621	)
Trading securities		1		(18	)		(17	)
Total, net	$	613	$	(997	)	$	(384	)

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	$	2,456		Discounted cash flow	Liquidity/duration adjustment (1)	0.6	%	-	28.6	%
ABS		23		Discounted cash flow	Liquidity/duration adjustment (1)	2.9	%	-	2.9	%
Foreign government bonds		77		Discounted cash flow	Liquidity/duration adjustment (1)	1.3	%	-	3.3	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment (1)	1.6	%	-	1.6	%
Equity securities		20		Discounted cash flow	Liquidity/duration adjustment (1)	4.5	%	-	5.4	%
Other assets:
GLB direct and ceded
embedded derivatives		195		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)	0.03	%	-	0.41	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Indexed annuity ceded
embedded derivatives		902		Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,305	)	Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)

⁽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.