Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Designated as Hedging Instrument [Member] | Net Investment Hedge [Member] | Foreign Currency Swaps [Member]

Derivative [Line Items]

Schedule of derivative instruments

Net Investment Hedge of Certain International Subsidiaries	Notional Value (in millions)
Type of instrument. Foreign currency swap contracts	June 30, 2018		December 31, 2017
	$	439	$	-
Purpose. During the first quarter of 2018, the Company entered into fixed-for-fixed currency swaps to reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in Euros.
Terms of derivative instruments. The Company receives fixed rate U.S. dollar coupon and principal payments, and pays fixed rate coupon and principal payments denominated in the functional currency of the hedged foreign subsidiary. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. Foreign currency swaps are denominated in Euros.
Accounting. As a net investment hedge, the fair values of the swap contracts are reported in other assets, including other intangibles, or in accounts payable, accrued expenses, and other liabilities. The changes in fair values of these instruments are reported in other comprehensive income, specifically in translation of foreign currencies. The portion of the change in swap fair values relating to foreign exchange spot rates will be recognized in earnings upon deconsolidation of the hedged foreign subsidiaries. The remaining changes in swap fair value are excluded from the effectiveness assessment and recognized in other operating expenses as swap coupon payments are accrued.

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Swaps [Member]

Derivative [Line Items]

Schedule of derivative instruments

Cash Flow Hedges of Benchmark Interest Rates on Expected Debt Issuances	Notional Value (in millions)
Type of instrument. Swaptions	June 30, 2018		December 31, 2017
	$	2,050	$	-
Purpose. To hedge the benchmark interest rates on forecasted coupon cash flows on debt issuances expected later in 2018.
Terms of derivative instruments. There is no upfront premium paid or received, and the instruments contain upper and lower threshold strike rates based on the benchmark interest rate. These instruments provide offsetting economic benefits when the Company receives cash at settlement as rates rise above the upper threshold, and offsetting economic losses when the Company must pay cash at settlement as rates decline below the lower threshold. The notional value of these derivatives matches the par value of the hedged debt issuance.
Accounting. Using cash flow hedge accounting, the fair values of these instruments are reported in other assets, including other intangibles, or accounts payable, accrued expenses, and other liabilities. Changes in fair value are reported in accumulated other comprehensive income ("AOCI"). Upon issuance of the debt, any cumulative gain or loss on these contracts will begin amortizing to interest expense over the life of the hedged debt.

Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Foreign Currency Swaps [Member]

Derivative [Line Items]

Schedule of derivative instruments

Fair Value Hedges of Fixed Maturity Bonds	Notional Value (in millions)
Type of instrument. Foreign currency swap contracts	June 30, 2018		December 31, 2017
	$	478	$	318
Purpose. To hedge the foreign exchange related changes in fair values of certain fixed maturity foreign-denominated bonds.
Terms of derivative instruments. The Company periodically exchanges cash flows between two currencies for both principal and interest. Foreign currency swaps are Euros, British pounds and Australian dollars, and have terms for periods of up to thirty years. The notional value of these derivatives matches the amortized cost of the hedged bonds.
Accounting. Using fair value hedge accounting, swap fair values are reported in other long-term investments or in accounts payable, accrued expenses and other liabilities. Changes in fair values attributable to foreign exchange risk of the swap contracts and the hedged bonds are reported in other realized investment gains and losses. The portion of the swap contracts' changes in fair value excluded from the assessment of hedge effectiveness is recorded in accumulated other comprehensive income and recognized in net investment income as swap coupon payments are accrued, offsetting the foreign denominated coupons received on the designated bonds. Prior to adopting ASU 2017-12, changes in fair value of excluded components of the swap contracts were recognized immediately in realized investment gains and losses.

Non designated [Member] | Swaption [Member]

Derivative [Line Items]

Schedule of derivative instruments

Economic Hedges of Benchmark Interest Rates on Expected Debt Issuances	Notional Value (in millions)
Type of instrument. Swaptions	June 30, 2018		December 31, 2017
	$	3,550	$	-
Purpose. To hedge the benchmark interest rates on forecasted coupon cash flows on debt issuances to be used primarily to finance a portion of the proposed acquisition of Express Scripts expected later in 2018.
Terms of derivative instruments. There is no upfront premium paid or received, and the instruments contain upper and lower threshold strike rates based on the benchmark interest rate. These instruments provide offsetting economic benefits when the Company receives cash at settlement as rates rise above the upper threshold, and offsetting economic losses when the Company must pay cash at settlement as rates decline below the lower threshold.
Accounting. Hedge accounting has not been designated for these instruments. The fair values of the swaption contracts are reported in other assets, including other intangibles, or accounts payable, accrued expenses, and other liabilities. Changes in fair value and settlements are reported in interest expense.

Non designated [Member] | Forward Contracts [Member]

Derivative [Line Items]

Schedule of derivative instruments

Economic Hedges of a Fixed Maturity Bond Portfolio	Notional Value (in millions)
Type of instrument. Foreign currency forward contracts	June 30, 2018		December 31, 2017
	$	309	$	255
Purpose. To hedge the foreign exchange related changes in fair values of a U.S. dollar-denominated fixed maturity bond portfolio to reflect the local currency for the Company's foreign subsidiary in South Korea.
Terms of derivative instruments. The Company agrees to purchase South Korean won in exchange for U.S. dollars at a future date, generally within three months from the contracts' trade dates. The notional value of hedging instruments generally aligns with the fair value of the hedged bond portfolio.
Accounting. As these arrangements were not designated as accounting hedges, fair values are reported in short-term investments or accounts payable, accrued expenses, and other liabilities, and changes in fair values are reported in other realized investment gains and losses.