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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of June 30, 2019						As of December 31, 2018
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	99,733		$	99,733		$	94,024		$	94,024
Trading securities		4,522			4,522			1,950			1,950
Equity securities		196			196			99			99
Mortgage loans on real estate		15,090			15,426			13,260			13,092
Derivative investments ⁽¹⁾		1,510			1,510			1,107			1,107
Other investments		2,833			2,833			2,255			2,255
Cash and invested cash		3,314			3,314			2,345			2,345
Other assets:
GLB direct embedded derivatives		-			-			123			123
GLB ceded embedded derivatives		111			111			72			72
Indexed annuity ceded embedded derivatives		903			903			902			902
Separate account assets		146,275			146,275			132,833			132,833

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,973	)		(1,973	)		(1,305	)		(1,305	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,973	)		(1,973	)		(542	)		(542	)
Account values of certain investment contracts		(36,691	)		(44,704	)		(34,535	)		(36,358	)
Short-term debt		(300	)		(306	)		-			-
Long-term debt		(5,621	)		(5,626	)		(5,839	)		(5,604	)
Reinsurance related embedded derivatives		(310	)		(310	)		(3	)		(3	)
Other liabilities:
Derivative liabilities⁽¹⁾		(358	)		(358	)		(160	)		(160	)
GLB direct embedded derivatives		(1	)		(1	)		-			-

⁽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 June 30, 2019
		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		$	-		$	81,142			$	3,648		$	84,790
ABS			-			904				213			1,117
U.S. government bonds			413			17				-			430
Foreign government bonds			-			327				113			440
RMBS			-			3,292				-			3,292
CMBS			-			963				2			965
CLOs			-			2,318				107			2,425
State and municipal bonds			-			5,669				-			5,669
Hybrid and redeemable preferred securities			73			454				78			605
Trading securities			49			3,950				523			4,522
Equity securities			40			88				68			196
Derivative investments ⁽¹⁾			-			1,230				895			2,125
Other investments			153			-				-			153
Cash and invested cash			-			3,314				-			3,314
Other assets:
GLB ceded embedded derivatives			-			-				111			111
Indexed annuity ceded embedded derivatives			-			-				903			903
Separate account assets			685			145,577				-			146,262
Total assets		$	1,413		$	249,245			$	6,661		$	257,319

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,973	)	$	(1,973	)
Reinsurance related embedded derivatives			-			(310	)			-			(310	)
Other liabilities:
Derivative liabilities ⁽¹⁾			-			(544	)			(429	)		(973	)
GLB direct embedded derivatives			-			-				(1	)		(1	)
Total liabilities		$	-		$	(854	)		$	(2,403	)	$	(3,257	)

‎


		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	)

⁽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 Three Months Ended June 30, 2019
							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	$	3,521		$	1		$	24		$	171		$	(69	)	$	3,648
ABS		81			-			1			152			(21	)		213
Foreign government bonds		110			-			3			-			-			113
CMBS		2			-			-			-			-			2
CLOs		97			-			-			107			(97	)		107
Hybrid and redeemable
preferred securities		78			-			-			-			-			78
Trading securities		236			2			-			371			(86	)		523
Equity securities		25			-			-			43			-			68
Derivative investments		267			71			69			59			-			466
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		439			(439	)		-			-			-			-
GLB ceded embedded derivatives		50			61			-			-			-			111
Indexed annuity ceded embedded derivatives		872			44			-			(13	)		-			903
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,730	)		(154	)		-			(89	)		-			(1,973	)
Other liabilities: ⁽⁶⁾
GLB direct embedded derivatives		-			(1	)		-			-			-			(1	)
GLB ceded embedded derivatives		(8	)		8			-			-			-			-
Total, net	$	4,040		$	(407	)	$	97		$	801		$	(273	)	$	4,258

‎



	For the Three Months Ended June 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⁾			Value
Investments: ⁽⁵⁾
Fixed maturity AFS securities:
Corporate bonds	$	3,192		$	3		$	(124	)	$	157		$	(47	)	$	3,181
ABS		26			-			-			5			-			31
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		108			-			-			-			-			108
CMBS		27			-			-			(1	)		(21	)		5
CLOs		2			-			-			145			(2	)		145
Hybrid and redeemable
preferred securities		77			-			1			-			-			78
Trading securities		47			(3	)		-			(22	)		-			22
Equity securities		27			-			-			(1	)		-			26
Derivative investments		279			(108	)		(39	)		(39	)		-			93
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		1,110			138			-			-			-			1,248
GLB ceded embedded derivatives		45			(4	)		-			-			-			41
Indexed annuity ceded embedded derivatives		17			1			-			11			-			29
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,346	)		(62	)		-			8			-			(1,400	)
Other liabilities – GLB ceded embedded
derivatives ⁽⁶⁾		(111	)		(20	)		-			-			-			(131	)
Total, net	$	3,505		$	(55	)	$	(162	)	$	258		$	(70	)	$	3,476

‎



	For the Six Months Ended June 30, 2019
							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	$	3,269		$	-		$	94		$	371		$	(86	)	$	3,648
ABS		29			-			1			204			(21	)		213
Foreign government bonds		109			-			4			-			-			113
RMBS		7			-			-			-			(7	)		-
CMBS		2			-			-			-			-			2
CLOs		105			-			-			204			(202	)		107
Hybrid and redeemable
preferred securities		75			-			3			-			-			78
Trading securities		67			2			-			577			(123	)		523
Equity securities		25			-			-			43			-			68
Derivative investments		534			(312	)		115			129			-			466
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		123			(123	)		-			-			-			-
GLB ceded embedded derivatives		72			39			-			-			-			111
Indexed annuity ceded embedded derivatives		902			121			-			(120	)		-			903
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,305	)		(470	)		-			(198	)		-			(1,973	)
Other liabilities – GLB direct embedded
derivatives ⁽⁶⁾		-			(1	)		-			-			-			(1	)
Total, net	$	4,014		$	(744	)	$	217		$	1,210		$	(439	)	$	4,258

‎


	For the Six Months Ended June 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		$	6		$	(107	)	$	231		$	(40	)	$	3,181
ABS		27			-			(1	)		5			-			31
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		110			-			(2	)		-			-			108
RMBS		12			-			-			-			(12	)		-
CMBS		6			1			-			19			(21	)		5
CLOs		91			-			-			147			(93	)		145
Hybrid and redeemable
preferred securities		76			-			2			-			-			78
Equity AFS securities		162			-			-			-			(162	)		-
Trading securities		49			(5	)		-			(22	)		-			22
Equity securities		-			-			-			-			26			26
Derivative investments		30			222			(59	)		(100	)		-			93
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		903			345			-			-			-			1,248
GLB ceded embedded derivatives		51			(10	)		-			-			-			41
Indexed annuity ceded embedded derivatives		11			1			-			17			-			29
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,418	)		(10	)		-			28			-			(1,400	)
Other liabilities:⁽⁶⁾
GLB ceded embedded derivatives		(67	)		(64	)		-			-			-			(131	)
Total, net	$	3,139		$	486		$	(167	)	$	320		$	(302	)	$	3,476

⁽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, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $67 million and asset-backed securities 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-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 are reported 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 June 30, 2019
	Issuances			Sales			Maturities		Settlements				Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	268		$	(16	)	$	(47	)	$	(34	)	$	-	$	171
ABS		154			-			-			(2	)		-		152
CLOs		107			-			-			-			-		107
Trading securities		371			-			-			-			-		371
Equity securities		43			-			-			-			-		43
Derivative investments		141			4			(86	)		-			-		59
Other assets – indexed annuity ceded
embedded derivatives		21			-			-			(34	)		-		(13	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(149	)		-			-			60			-		(89	)
Total, net	$	956		$	(12	)	$	(133	)	$	(10	)	$	-	$	801



	For the Three Months Ended June 30, 2018
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	400		$	(103	)	$	-		$	(79	)	$	(61	)	$	157
ABS		22			(17	)		-			-			-			5
U.S. government bonds		-			(5	)		-			-			-			(5	)
CMBS		-			-			-			(1	)		-			(1	)
CLOs		145			-			-			-			-			145
Trading securities		2			(24	)		-			-			-			(22	)
Equity securities		-			(1	)		-			-			-			(1	)
Derivative investments		61			11			(111	)		-			-			(39	)
Other assets – indexed annuity ceded
embedded derivatives		11			-			-			-			-			11
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(48	)		-			-			56			-			8
Total, net	$	593		$	(139	)	$	(111	)	$	(24	)	$	(61	)	$	258

‎



	For the Six Months Ended June 30, 2019
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	535		$	(18	)	$	(54	)	$	(85	)	$	(7	)	$	371
ABS		206			-			-			(2	)		-			204
CLOs		204			-			-			-			-			204
Trading securities		578			-			-			(1	)		-			577
Equity securities		43			-			-			-			-			43
Derivative investments		272			(11	)		(132	)		-			-			129
Other assets – indexed annuity ceded
embedded derivatives		40			-			-			(160	)		-			(120	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(296	)		-			-			98			-			(198	)
Total, net	$	1,582		$	(29	)	$	(186	)	$	(150	)	$	(7	)	$	1,210



	For the Six Months Ended June 30, 2018
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	623		$	(156	)	$	(2	)	$	(173	)	$	(61	)	$	231
ABS		22			(17	)		-			-			-			5
U.S. government bonds		-			(5	)		-			-			-			(5	)
CMBS		21			-			-			(2	)		-			19
CLOs		147			-			-			-			-			147
Trading securities		2			(24	)		-			-			-			(22	)
Equity securities		1			(1	)		-			-			-			-
Derivative investments		129			5			(234	)		-			-			(100	)
Other assets – indexed annuity ceded
embedded derivatives		17			-			-			-			-			17
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(75	)		-			-			103			-			28
Total, net	$	887		$	(198	)	$	(236	)	$	(72	)	$	(61	)	$	320

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



	For the Three						For the Six
	Months Ended						Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Derivative investments	$	18		$	(169	)	$	(269	)	$	106
Embedded derivatives:
Indexed annuity and IUL contracts		(44	)		(6	)		(76	)		(7	)
GLB		(267	)		313			213			689
Total, net⁽¹⁾	$	(293	)	$	138		$	(132	)	$	788

⁽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
	June 30, 2019								June 30, 2018
	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	$	2	$	(71	)	$	(69	)	$	3	$	(50	)	$	(47	)
ABS		-		(21	)		(21	)		-		-			-
CMBS		-		-			-			-		(21	)		(21	)
CLOs		-		(97	)		(97	)		-		(2	)		(2	)
Trading securities		5		(91	)		(86	)		-		-			-
Total, net	$	7	$	(280	)	$	(273	)	$	3	$	(73	)	$	(70	)



	For the Six								For the Six
	Months Ended								Months Ended
	June 30, 2019								June 30, 2018
	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	$	85	$	(171	)	$	(86	)	$	43	$	(83	)	$	(40	)
ABS		-		(21	)		(21	)		-		-			-
RMBS		-		(7	)		(7	)		-		(12	)		(12	)
CMBS		-		-			-			-		(21	)		(21	)
CLOs		-		(202	)		(202	)		-		(93	)		(93	)
Equity AFS securities		-		-			-			-		(162	)		(162	)
Trading securities		5		(128	)		(123	)		-		-			-
Equity securities		-		-			-			26		-			26
Total, net	$	90	$	(529	)	$	(439	)	$	69	$	(371	)	$	(302	)

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	$	2,708		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	0.9	%	-	32.2	%
ABS		23		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	3.0	%	-	3.0	%
Foreign government bonds		77		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	1.0	%	-	2.7	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	1.6	%	-	1.6	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	4.5	%	-	5.2	%
Other assets – GLB ceded
embedded derivatives		111		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⁾	0.02	%	-	0.27	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
					Volatility ⁽⁷⁾	1	%	-	28	%

Indexed annuity ceded
embedded derivatives		903		Discounted cash flow	Lapse rate ⁽²⁾	1	%	-	9	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,973	)	Discounted cash flow	Lapse rate ⁽²⁾	1	%	-	9	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
Other liabilities – GLB direct
embedded derivatives		(1	)	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⁾	0.02	%	-	0.27	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
					Volatility ⁽⁷⁾	1	%	-	28	%

⁽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.