Derivative Financial Instruments (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2011

Derivative Financial Instruments Tables [Abstract]

Designated as accounting hedges; interest rate, FX and combinations

Instrument / Volume of Activity	Primary Risk	Purpose				Cash Flows				Accounting Policy
Derivatives Designated as Accounting Hedges - Cash Flow Hedges
Interest rate swaps — $137 million as of June 30, 2011 and $153 million as of December 31, 2010 of par value of related investments Foreign currency swaps — $134 million as of June 30, 2011 and $159 million as of December 31, 2010 of U.S. dollar equivalent par value of related investments Combination swaps (interest rate and foreign currency) — $64 million as of June 30, 2011 and December 31, 2010 of U.S. dollar equivalent par value of related investments	Interest rate and foreign currency	To hedge the interest and/or foreign currency cash flows of fixed maturities to match associated liabilities. Currency swaps are primarily euros, Australian dollars, Canadian dollars and British pounds for periods of up to 10 years.				The Company periodically exchanges cash flows between variable and fixed interest rates and/or between two currencies for both principal and interest. Net interest cash flows are reported in operating activities.				Using cash flow hedge accounting, fair values are reported in other long-term investments or other liabilities and accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.
	Fair Value Effect on the Financial Statements (In millions)
		Other Long-Term Investments				Accounts Payable, Accrued Expenses and Other Liabilities				Gain (Loss) Recognized in Other Comprehensive Income (1)
		As of June 30,		As of December 31,		As of June 30,		As of December 31,		Three Months Ended June 30,				Six Months Ended June 30,
	Instrument	2011		2010		2011		2010		2011		2010		2011		2010
	Interest rate swaps	$	8	$	10	$	-	$	-	$	-	$	1	$	(2)	$	2
	Foreign currency swaps		1		6		26		20		(6)		15		(10)		19
	Interest rate and foreign currency swaps		-		-		17		12		(2)		8		(5)		8
	Total	$	9	$	16	$	43	$	32	$	(8)	$	24	$	(17)	$	29
	(1) Other comprehensive income for foreign currency swaps excludes amounts required to adjust future policy benefits for the run-off settlement annuity business.
Treasury lock	Interest rate	To hedge the variability of and fix at inception date, the benchmark Treasury rate component of future interest payments on debt to be issued.				The Company paid the fair value of the contract at the expiration. Cash flows were reported in operating activities.				Using cash flow hedge accounting, fair values are reported in other assets or other liabilities, with changes in fair value reported in accumulated other comprehensive income and amortized to interest expense over the period of expected cash flows.
	Fair Value Effect on the Financial Statements
	During the first quarter of 2009, the remaining treasury locks matured and the Company recognized a gain of $14 million in other comprehensive income, resulting in net cumulative losses of $36 million ($23 million after-tax) recorded in other comprehensive income, that are being amortized over the period of expected cash flows. The remaining unamortized balance in other comprehensive income was $18 million after-tax as of June 30, 2011 and $19 million after-tax as of December 31, 2010.

Instrument / Volume of Activity	Primary Risk	Purpose				Cash Flows				Accounting Policy
Derivatives Designated as Accounting Hedges - Cash Flow Hedges
Interest rate swaps — $137 million as of June 30, 2011 and $153 million as of December 31, 2010 of par value of related investments Foreign currency swaps — $134 million as of June 30, 2011 and $159 million as of December 31, 2010 of U.S. dollar equivalent par value of related investments Combination swaps (interest rate and foreign currency) — $64 million as of June 30, 2011 and December 31, 2010 of U.S. dollar equivalent par value of related investments	Interest rate and foreign currency	To hedge the interest and/or foreign currency cash flows of fixed maturities to match associated liabilities. Currency swaps are primarily euros, Australian dollars, Canadian dollars and British pounds for periods of up to 10 years.				The Company periodically exchanges cash flows between variable and fixed interest rates and/or between two currencies for both principal and interest. Net interest cash flows are reported in operating activities.				Using cash flow hedge accounting, fair values are reported in other long-term investments or other liabilities and accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.
	Fair Value Effect on the Financial Statements (In millions)
		Other Long-Term Investments				Accounts Payable, Accrued Expenses and Other Liabilities				Gain (Loss) Recognized in Other Comprehensive Income (1)
		As of June 30,		As of December 31,		As of June 30,		As of December 31,		Three Months Ended June 30,				Six Months Ended June 30,
	Instrument	2011		2010		2011		2010		2011		2010		2011		2010
	Interest rate swaps	$	8	$	10	$	-	$	-	$	-	$	1	$	(2)	$	2
	Foreign currency swaps		1		6		26		20		(6)		15		(10)		19
	Interest rate and foreign currency swaps		-		-		17		12		(2)		8		(5)		8
	Total	$	9	$	16	$	43	$	32	$	(8)	$	24	$	(17)	$	29
	(1) Other comprehensive income for foreign currency swaps excludes amounts required to adjust future policy benefits for the run-off settlement annuity business.
Treasury lock	Interest rate	To hedge the variability of and fix at inception date, the benchmark Treasury rate component of future interest payments on debt to be issued.				The Company paid the fair value of the contract at the expiration. Cash flows were reported in operating activities.				Using cash flow hedge accounting, fair values are reported in other assets or other liabilities, with changes in fair value reported in accumulated other comprehensive income and amortized to interest expense over the period of expected cash flows.
	Fair Value Effect on the Financial Statements
	During the first quarter of 2009, the remaining treasury locks matured and the Company recognized a gain of $14 million in other comprehensive income, resulting in net cumulative losses of $36 million ($23 million after-tax) recorded in other comprehensive income, that are being amortized over the period of expected cash flows. The remaining unamortized balance in other comprehensive income was $18 million after-tax as of June 30, 2011 and $19 million after-tax as of December 31, 2010.

Not designated as accounting hedges; futures

Instrument / Volume of Activity	Primary Risk	Purpose				Cash Flows					Accounting Policy
Derivatives Not Designated As Accounting Hedges
Futures — $862 million and $878 million of U.S. dollar equivalent notional value as of June 30, 2011 and December 31, 2010	Equity and foreign currency	To reduce domestic and international equity market exposures resulting from changes in variable annuity account values based on underlying mutual funds for certain reinsurance contracts that guarantee minimum death benefits (GMDB) (excluding exposures due to partial surrenders) and a portion (approximately one-quarter) of these risks associated with certain reinsurance contracts that guarantee minimum income benefits (GMIB). Currency futures are euros, Japanese yen and British pounds.				The Company receives (pays) cash daily in the amount of the change in fair value of the futures contracts. Cash flows are included in operating activities.					Fair value changes are reported in other revenues. Amounts not yet settled from the previous day's fair value change (daily variation margin) are reported in other assets and other liabilities.
	Fair Value Effect on the Financial Statements (In millions)
						Other Revenues
						Three Months Ended June 30,					Six Months Ended June 30,
						2011			2010		2011			2010
	Futures for GMDB exposures					$	(5)		$	92	$	(49)		$	47
	Futures for GMIB exposures						-					-
	Total Futures					$	(5)		$	92	$	(49)		$	47
Interest rate swaps — $240 million of swap notional value as of June 30, 2011	Interest rate		To reduce the exposure to changes in interest rates levels on the growth rate for certain contracts that guarantee minimum death benefits and minimum income benefits. The hedge program covers approximately one-third of the GMDB and approximately one-quarter of the GMIB growth interest exposures.			For interest rate swaps, the Company periodically exchanges cash flows between variable and fixed interest rates. Cash flows are included in operating activities.					For interest rate swaps, fair values are reported in other assets and other liabilities, with changes in fair value and interest income and interest expense reported in other revenues.
Interest rate futures — $548 million notional value of Eurodollar futures contracts and $9 million notional value of U.S. Treasury futures contracts as of June 30, 2011								For interest rate futures, the Company receives (pays) cash daily in the amount of the change in fair value of the futures contracts. Cash flows are included in operating activities.					For interest rate futures, fair value changes are reported in other revenues. Amounts not yet settled from the previous day's fair value change (daily variation margin) are reported in other assets and other liabilities.
	Fair Value Effect on the Financial Statements (In millions)
			Other assets, including other intangibles			Other Revenues
				As of		Three Months Ended					Six Months Ended
				June 30, 2011		June 30, 2011					June 30, 2011
	Interest rate swaps		$		9	$	8				$	12
	Interest rate futures						(1)					-
	Total swaps and futures					$	7				$	12
	Derivatives for GMDB exposures					$	6				$	10
	Derivatives for GMIB exposures						1					2
	Total swaps and futures					$	7				$	12

Instrument / Volume of Activity	Primary Risk	Purpose				Cash Flows					Accounting Policy
Derivatives Not Designated As Accounting Hedges
Futures — $862 million and $878 million of U.S. dollar equivalent notional value as of June 30, 2011 and December 31, 2010	Equity and foreign currency	To reduce domestic and international equity market exposures resulting from changes in variable annuity account values based on underlying mutual funds for certain reinsurance contracts that guarantee minimum death benefits (GMDB) (excluding exposures due to partial surrenders) and a portion (approximately one-quarter) of these risks associated with certain reinsurance contracts that guarantee minimum income benefits (GMIB). Currency futures are euros, Japanese yen and British pounds.				The Company receives (pays) cash daily in the amount of the change in fair value of the futures contracts. Cash flows are included in operating activities.					Fair value changes are reported in other revenues. Amounts not yet settled from the previous day's fair value change (daily variation margin) are reported in other assets and other liabilities.
	Fair Value Effect on the Financial Statements (In millions)
						Other Revenues
						Three Months Ended June 30,					Six Months Ended June 30,
						2011			2010		2011			2010
	Futures for GMDB exposures					$	(5)		$	92	$	(49)		$	47
	Futures for GMIB exposures						-					-
	Total Futures					$	(5)		$	92	$	(49)		$	47
Interest rate swaps — $240 million of swap notional value as of June 30, 2011	Interest rate		To reduce the exposure to changes in interest rates levels on the growth rate for certain contracts that guarantee minimum death benefits and minimum income benefits. The hedge program covers approximately one-third of the GMDB and approximately one-quarter of the GMIB growth interest exposures.			For interest rate swaps, the Company periodically exchanges cash flows between variable and fixed interest rates. Cash flows are included in operating activities.					For interest rate swaps, fair values are reported in other assets and other liabilities, with changes in fair value and interest income and interest expense reported in other revenues.
Interest rate futures — $548 million notional value of Eurodollar futures contracts and $9 million notional value of U.S. Treasury futures contracts as of June 30, 2011								For interest rate futures, the Company receives (pays) cash daily in the amount of the change in fair value of the futures contracts. Cash flows are included in operating activities.					For interest rate futures, fair value changes are reported in other revenues. Amounts not yet settled from the previous day's fair value change (daily variation margin) are reported in other assets and other liabilities.
	Fair Value Effect on the Financial Statements (In millions)
			Other assets, including other intangibles			Other Revenues
				As of		Three Months Ended					Six Months Ended
				June 30, 2011		June 30, 2011					June 30, 2011
	Interest rate swaps		$		9	$	8				$	12
	Interest rate futures						(1)					-
	Total swaps and futures					$	7				$	12
	Derivatives for GMDB exposures					$	6				$	10
	Derivatives for GMIB exposures						1					2
	Total swaps and futures					$	7				$	12

Not designated as accounting hedges; interest rate swaps

Instrument / Volume of Activity	Primary Risk		Purpose					Cash Flows				Accounting Policy
Derivatives Not Designated As Accounting Hedges
Interest rate swaps — $45 million of par value of related investments as of June 30, 2011 and December 31, 2010	Interest rate		To hedge the interest cash flows of fixed maturities to match associated liabilities.					The Company periodically exchanges cash flows between variable and fixed interest rates and these cash flows are included in investing activities.				Fair values are reported in other long-term investments or other liabilities, with changes in fair value reported in other realized investment gains and losses.
	Fair Value Effect on the Financial Statements (In millions)
		Other Long-Term Investments						Realized Investment Gains (Losses)
			As of		As of		Three Months Ended June 30,						Six Months Ended June 30,
			June 30, 2011		December 31, 2010			2011		2010			2011		2010
	Interest rate swaps		$	3	$	3	$		-	$	2		$	-	$	2

Instrument / Volume of Activity	Primary Risk		Purpose					Cash Flows				Accounting Policy
Derivatives Not Designated As Accounting Hedges
Interest rate swaps — $45 million of par value of related investments as of June 30, 2011 and December 31, 2010	Interest rate		To hedge the interest cash flows of fixed maturities to match associated liabilities.					The Company periodically exchanges cash flows between variable and fixed interest rates and these cash flows are included in investing activities.				Fair values are reported in other long-term investments or other liabilities, with changes in fair value reported in other realized investment gains and losses.
	Fair Value Effect on the Financial Statements (In millions)
		Other Long-Term Investments						Realized Investment Gains (Losses)
			As of		As of		Three Months Ended June 30,						Six Months Ended June 30,
			June 30, 2011		December 31, 2010			2011		2010			2011		2010
	Interest rate swaps		$	3	$	3	$		-	$	2		$	-	$	2

Not designated as accounting hedges; GMIB written and purchased options

Instrument / Volume of Activity	Primary Risk	Purpose				Cash Flows				Accounting Policy
Derivatives Not Designated As Accounting Hedges
Written options (GMIB liability) — $1,089 million as of June 30, 2011 and $1,134 million as of December 31, 2010 of maximum potential undiscounted future payments as defined in Note 16 Purchased options (GMIB asset) — $599 million as of June 30, 2011 and $624 million as of December 31, 2010 of maximum potential undiscounted future receipts as defined in Note 16	Equity and interest rate	The Company has written reinsurance contracts with issuers of variable annuity contracts that provide annuitants with certain guarantees related to minimum income benefits. According to the contractual terms of written reinsurance contracts, payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments. The Company purchased reinsurance contracts to reduce a portion of the risks assumed. These contracts are accounted for as written and purchased options.				The Company periodically receives (pays) fees based on either contractholders' account values or deposits increased at a contractual rate. The Company will also pay (receive) cash depending on changes in account values and interest rates when contractholders first elect to receive minimum income payments. These cash flows are reported in operating activities.				Fair values are reported in other liabilities (GMIB liability) and other assets (GMIB asset). Changes in fair value are reported in GMIB fair value (gain) loss.
	Fair Value Effect on the Financial Statements (In millions)
		Other Assets, including other intangibles				Accounts Payable, Accrued Expenses and Other Liabilities				GMIB Fair Value (Gain) Loss
		As of		As of		As of		As of		Three Months Ended June 30,				Six Months Ended June 30,
	Instrument	June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010			2011	2010			2011	2010
	Written options (GMIB liability)					$	917	$	903	$	85	$	351	$	48	$	347
	Purchased options (GMIB asset)	$	490	$	480						(48)		(187)		(27)		(187)
	Total	$	490	$	480	$	917	$	903	$	37	$	164	$	21	$	160

Instrument / Volume of Activity	Primary Risk	Purpose				Cash Flows				Accounting Policy
Derivatives Not Designated As Accounting Hedges
Written options (GMIB liability) — $1,089 million as of June 30, 2011 and $1,134 million as of December 31, 2010 of maximum potential undiscounted future payments as defined in Note 16 Purchased options (GMIB asset) — $599 million as of June 30, 2011 and $624 million as of December 31, 2010 of maximum potential undiscounted future receipts as defined in Note 16	Equity and interest rate	The Company has written reinsurance contracts with issuers of variable annuity contracts that provide annuitants with certain guarantees related to minimum income benefits. According to the contractual terms of written reinsurance contracts, payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments. The Company purchased reinsurance contracts to reduce a portion of the risks assumed. These contracts are accounted for as written and purchased options.				The Company periodically receives (pays) fees based on either contractholders' account values or deposits increased at a contractual rate. The Company will also pay (receive) cash depending on changes in account values and interest rates when contractholders first elect to receive minimum income payments. These cash flows are reported in operating activities.				Fair values are reported in other liabilities (GMIB liability) and other assets (GMIB asset). Changes in fair value are reported in GMIB fair value (gain) loss.
	Fair Value Effect on the Financial Statements (In millions)
		Other Assets, including other intangibles				Accounts Payable, Accrued Expenses and Other Liabilities				GMIB Fair Value (Gain) Loss
		As of		As of		As of		As of		Three Months Ended June 30,				Six Months Ended June 30,
	Instrument	June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010			2011	2010			2011	2010
	Written options (GMIB liability)					$	917	$	903	$	85	$	351	$	48	$	347
	Purchased options (GMIB asset)	$	490	$	480						(48)		(187)		(27)		(187)
	Total	$	490	$	480	$	917	$	903	$	37	$	164	$	21	$	160