Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2017

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:



	March 31, 2017						December 31, 2016
	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	$	35	$	—	$	675	$	40	$	—
Foreign exchange contracts	20		—		—		164		12		—
Total qualifying hedges	695		35		—		839		52		—

Derivatives not designated as hedging instruments
Interest rate contracts	70,724		1,107		464		71,949		1,735		979
Equity contracts	60,262		1,667		2,247		60,696		1,568		2,027
Credit contracts	1,148		1		—		1,039		1		—
Foreign exchange contracts	4,709		60		38		4,733		81		47
Other contracts	5,185		1		135		3,060		9		118
Total non-designated hedges	142,028		2,836		2,884		141,477		3,394		3,171

Embedded derivatives
GMWB and GMAB ⁽⁴⁾	N/A		—		188		N/A		—		614
IUL	N/A		—		493		N/A		—		464
EIA	N/A		—		4		N/A		—		5
SMC	N/A		—		9		N/A		—		8
Total embedded derivatives	N/A		—		694		N/A		—		1,091
Total derivatives	$	142,723	$	2,871	$	3,578	$	142,316	$	3,446	$	4,262

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 $1.2 billion and $1.5 billion as of March 31, 2017 and December 31, 2016, 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 as of March 31, 2017 included $585 million of individual contracts in a liability position and $397 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 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 as of March 31, 2017:



	Premiums Payable		Premiums Receivable
	(in millions)
2017⁽¹⁾	$	223	$	70
2018	229		131
2019	275		172
2020	196		99
2021	186		108
2022 - 2027	650		184
Total	$	1,759	$	764

⁽¹⁾2017 amounts represent the amounts payable and receivable for the period from April 1, 2017 to December 31, 2017.

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, including embedded derivatives, 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 March 31, 2017
Interest rate contracts	$	1	$	—		$	—	$	—		$	(75	)	$	—
Equity contracts	2		1			15		19			(416		)	3
Credit contracts	—		—			—		—			(8		)	—
Foreign exchange contracts	—		—			1		—			(24		)	1
Other contracts	—		—			—		—			(52		)	—
GMWB and GMAB embedded derivatives	—		—			—		—			426			—
IUL embedded derivatives	—		—			—		(7		)	—			—
SMC embedded derivatives	—		(1		)	—		—			—			—
Total gain (loss)	$	3	$	—		$	16	$	12		$	(149	)	$	4



	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 March 31, 2016
Interest rate contracts	$	(40	)	$	—		$	—		$	—		$	755		$	—
Equity contracts	—			(1		)	(2		)	(3		)	(65		)	1
Credit contracts	—			—			—			—			(16		)	—
Foreign exchange contracts	—			—			3			—			(35		)	6
Other contracts	—			—			—			—			(9		)	—
GMWB and GMAB embedded derivatives	—			—			—			—			(664		)	—
IUL embedded derivatives	—			—			—			14			—			—
SMC embedded derivatives	—			1			—			—			—			—
Total gain (loss)	$	(40	)	$	—		$	1		$	11		$	(34	)	$	7

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 March 31,
		2017		2016
		(in millions)
Interest rate contracts	Interest and debt expense	$	4	$	5