Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2016

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 notional value and gross fair value of derivative instruments, including embedded derivatives:



	September 30, 2016						December 31, 2015
	Notional		Gross Fair Value				Notional		Gross Fair Value
	Notional		Assets⁽¹⁾		Liabilities⁽²⁾⁽³⁾		Notional		Assets⁽¹⁾		Liabilities⁽²⁾⁽³⁾
	(in millions)
Derivatives designated as hedging instruments
Interest rate contracts	$	675	$	54	$	—	$	675	$	58	$	—
Foreign exchange contracts	256		3		—		—		—		—
Total qualifying hedges	931		57		—		675		58		—

Derivatives not designated as hedging instruments
Interest rate contracts	75,028		3,593		1,663		63,798		1,882		969
Equity contracts	60,729		1,452		1,876		70,238		1,587		1,993
Credit contracts	1,073		1		—		600		2		—
Foreign exchange contracts	4,849		72		35		4,408		56		18
Other contracts	2,055		3		104		3,760		2		96
Total non-designated hedges	143,734		5,121		3,678		142,804		3,529		3,076

Embedded derivatives
GMWB and GMAB ⁽⁴⁾	N/A		—		1,756		N/A		—		851
IUL	N/A		—		438		N/A		—		364
EIA	N/A		—		5		N/A		—		5
SMC	N/A		—		8		N/A		—		4
Total embedded derivatives	N/A		—		2,207		N/A		—		1,224
Total derivatives	$	144,665	$	5,178	$	5,885	$	143,479	$	3,587	$	4,300

N/A Not applicable.

⁽¹⁾The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets.

⁽³⁾The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $2.4 billion and $1.6 billion at September 30, 2016 and December 31, 2015, respectively. See Note 11 for additional information related to master netting arrangements and cash collateral. See Note 3 for information about derivatives held by consolidated VIEs.

⁽⁴⁾The fair value of the GMWB and GMAB embedded derivatives at September 30, 2016 included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position.

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

The following tables present a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations:



	Net Investment Income		Banking and Deposit Interest Expense			Distribution Expenses		Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses			General and Administrative Expense
	(in millions)
Three Months Ended September 30, 2016
Interest rate contracts	$	6	$	—		$	—	$	—		$	(13	)	$	—
Equity contracts	2		2			11		12			(357		)	2
Credit contracts	—		—			—		—			(3		)	—
Foreign exchange contracts	2		—			—		—			(12		)	3
Other contracts	—		—			—		—			(28		)	—
GMWB and GMAB embedded derivatives	—		—			—		—			209			—
IUL embedded derivatives	—		—			—		(5		)	—			—
SMC embedded derivatives	—		(1		)	—		—			—			—
Total gain (loss)	$	10	$	1		$	11	$	7		$	(204	)	$	5



Nine Months Ended September 30, 2016
Interest rate contracts	$	(54	)	$	—		$	—	$	—	$	1,191		$	—
Equity contracts	2			1			13		10		(518		)	3
Credit contracts	—			—			—		—		(34		)	—
Foreign exchange contracts	—			—			2		—		(66		)	15
Other contracts	—			—			—		—		(36		)	—
GMWB and GMAB embedded derivatives	—			—			—		—		(905		)	—
IUL embedded derivatives	—			—			—		12		—			—
SMC embedded derivatives	—			(1		)	—		—		—			—
Total gain (loss)	$	(52	)	$	—		$	15	$	22	$	(368	)	$	18



	Net Investment Income			Banking and Deposit Interest Expense			Distribution Expenses			Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses			General and Administrative Expense
	(in millions)
Three Months Ended September 30, 2015
Interest rate contracts	$	(31	)	$	—		$	—		$	—		$	536		$	—
Equity contracts	—			(3		)	(15		)	(16		)	328			(4		)
Credit contracts	—			—			—			—			(10		)	—
Foreign exchange contracts	—			—			—			—			6			(1		)
Other contracts	—			—			—			—			3			—
GMWB and GMAB embedded derivatives	—			—			—			—			(872		)	—
IUL embedded derivatives	—			—			—			6			—			—
EIA embedded derivatives	—			—			—			1			—			—
SMC embedded derivatives	—			2			—			—			—			—
Total loss	$	(31	)	$	(1	)	$	(15	)	$	(9	)	$	(9	)	$	(5	)



Nine Months Ended September 30, 2015
Interest rate contracts	$	(32	)	$	—		$	—		$	—		$	360		$	—
Equity contracts	(2		)	(2		)	(9		)	(17		)	69			(3		)
Credit contracts	—			—			—			—			(5		)	—
Foreign exchange contracts	—			—			(2		)	—			(2		)	(1		)
Other contracts	—			—			—			—			(4		)	—
GMWB and GMAB embedded derivatives	—			—			—			—			(628		)	—
IUL embedded derivatives	—			—			—			1			—			—
EIA embedded derivatives	—			—			—			1			—			—
SMC embedded derivatives	—			2			—			—			—			—
Total loss	$	(34	)	$	—		$	(11	)	$	(15	)	$	(210	)	$	(4	)

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)
2016⁽¹⁾	$	92	$	31
2017	277		77
2018	233		132
2019	280		132
2020	198		59
2021 - 2027	831		206
Total	$	1,911	$	637

⁽¹⁾2016 amounts represent the amounts payable and receivable for the period from October 1, 2016 to December 31, 2016.

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 September 30,				Nine Months Ended September 30,
		2016		2015		2016		2015
		(in millions)
Interest rate contracts	Interest and debt expense	$	5	$	8	$	15	$	24