Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block]

The Company uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:



Derivatives designated as hedging instruments		Assets					Liabilities
Derivatives designated as hedging instruments	Balance Sheet Location	June 30, 2015		December 31, 2014		Balance Sheet Location	June 30, 2015			December 31, 2014
		(in millions)					(in millions)
Fair value hedges
Interest rate contracts	Other assets	$	69	$	76	Other liabilities	$	—		$	—
Total qualifying hedges		69		76			—			—
Derivatives not designated as hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets	1,574		1,955		Other liabilities	1,021			1,136
Equity contracts	Other assets	2,036		1,954		Other liabilities	2,576			2,650
Credit contracts	Other assets	9		—		Other liabilities	—			—
Foreign exchange contracts	Other assets	42		29		Other liabilities	5			2
Embedded derivatives⁽¹⁾	N/A	—		—		Policyholder account balances, future policy benefits and claims⁽²⁾	235			479
Total GMWB and GMAB		3,661		3,938			3,837			4,267
Other derivatives:
Interest rate
Investments	Other assets	—		—		Other liabilities	1			—
Equity
EIA embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	6			6
IUL	Other assets	26		39		Other liabilities	4			12
IUL embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	292			242
Stock market certificates	Other assets	23		46		Other liabilities	19			40
Stock market certificates embedded derivatives	N/A	—		—		Customer deposits	4			6
Foreign exchange
Foreign currency	Other assets	1		1		Other liabilities	—			—
Seed money	Other assets	—		—		Other liabilities	—			1
Other
Macro hedge program	Other assets	17		1		Other liabilities	115			114
Total other derivatives		67		87			441			421
Total non-designated hedges		3,728		4,025			4,278			4,688
Total derivatives		$	3,797	$	4,101		$	4,278	⁽³⁾	$	4,688	⁽³⁾

N/A Not applicable.

⁽¹⁾The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

⁽²⁾The fair value of the GMWB and GMAB embedded derivatives at June 30, 2015 included $541 million of individual contracts in a liability position and $306 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position.

Schedule of payments to make and receive for options [Table Text Block]

The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options:



	Premiums Payable		Premiums Receivable
	(in millions)
2015 ⁽¹⁾	$	194	$	38
2016	346		77
2017	276		77
2018	216		125
2019	261		87
2020 - 2027	634		208
Total	$	1,927	$	612

⁽¹⁾2015 amounts represent the amounts payable and receivable for the period from July 1, 2015 to December 31, 2015.

Derivatives not designated as hedging instruments [Member]

Derivative Instruments, Gain (Loss)

Schedule of gain (loss) on derivative instruments [Table Text Block]

The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operation:



Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income	Amount of Gain (Loss) on Derivatives Recognized in Income
		Three Months Ended June 30,						Six Months Ended June 30,
		2015			2014			2015			2014
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(562	)	$	245		$	(176	)	$	509
Equity contracts	Benefits, claims, losses and settlement expenses	(137		)	(197		)	(259		)	(387		)
Credit contracts	Benefits, claims, losses and settlement expenses	14			(12		)	5			(22		)
Foreign exchange contracts	Benefits, claims, losses and settlement expenses	(2		)	—			(8		)	(1		)
Embedded derivatives ⁽¹⁾	Benefits, claims, losses and settlement expenses	592			(124		)	244			(228		)
Total GMWB and GMAB		(95		)	(88		)	(194		)	(129		)

Other derivatives:
Interest rate
Investments	Net investment income	(1		)	—			(1		)	—
Tax hedge	Net investment income	—			—			—			3
Seed money	Net investment income	—			—			—			(1		)
Equity
IUL	Interest credited to fixed accounts	(2		)	6			(1		)	11
IUL embedded derivatives	Interest credited to fixed accounts	4			(5		)	(5		)	(11		)
EIA	Interest credited to fixed accounts	—			1			—			1
EIA embedded derivatives	Interest credited to fixed accounts	—			(1		)	—			(1		)
Stock market certificates	Banking and deposit interest expense	—			1			1			2
Stock market certificates embedded derivatives	Banking and deposit interest expense	—			(1		)	—			(2		)
Seed money	Net investment income	—			(2		)	(2		)	(3		)
Deferred compensation	Distribution expenses	(1		)	4			6			5
Deferred compensation	General and administrative expense	—			2			1			2
Foreign exchange
Foreign currency	Net investment income	—			(2		)	—			(2		)
Deferred compensation	Distribution expenses	1			1			(2		)	1
Commodity
Seed money	Net investment income	—			—			—			(1		)
Other
Macro hedge program	Benefits, claims, losses and settlement expenses	(6		)	(24		)	(7		)	(25		)
Total other derivatives		(5		)	(20		)	(10		)	(21		)
Total derivatives		$	(100	)	$	(108	)	$	(204	)	$	(150	)

⁽¹⁾The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Cash flow hedges [Member]

Derivative Instruments, Gain (Loss)

Schedule of gain (loss) on derivative instruments [Table Text Block]

The following table presents the impact of the effective portion of the Company’s cash flow hedges on the Consolidated Statements of Operations and the Consolidated Statements of Equity:



Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in millions)
Interest and debt expense	$	1		$	1		$	2		$	2
Net investment income	(1		)	(1		)	(2		)	(2		)
Total	$	—		$	—		$	—		$	—

Fair value hedges [Member]

Derivative Instruments, Gain (Loss)

Schedule of gain (loss) on derivative instruments [Table Text Block]

The following table presents the amounts recognized in income related to fair value hedges:



Derivatives designated as hedging instruments	Location of Gain Recorded into Income	Amount of Gain Recognized in Income on Derivatives
		Three Months Ended June 30,				Six Months Ended June 30,
		2015		2014		2015		2014
		(in millions)
Interest rate contracts	Interest and debt expense	$	8	$	8	$	16	$	16