Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Assets and (liabilities) carried at fair value by hierarchy level

	June 30, 2012
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed securities (“ABS”)	$	3,002		$	—		$	2,679		$	323
Collateralized debt obligations ("CDOs")	3,037			—			2,137			900
Commercial mortgage-backed securities ("CMBS")	6,346			—			5,360			986
Corporate	42,983			—			41,178			1,805
Foreign government/government agencies	3,598			—			3,543			55
States, municipalities and political subdivisions (“Municipal”)	14,125			—			13,475			650
Residential mortgage-backed securities ("RMBS")	6,981			—			5,773			1,208
U.S. Treasuries	5,155			1,080			4,075			—
Total fixed maturities	85,227			1,080			78,220			5,927
Fixed maturities, FVO	1,165			—			672			493
Equity securities, trading	29,215			1,902			27,313			—
Equity securities, AFS	851			328			437			86
Derivative assets
Credit derivatives	(19		)	—			(29		)	10
Equity derivatives	28			—			—			28
Foreign exchange derivatives	293			—			293			—
Interest rate derivatives	310			—			222			88
U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments	213			—			11			202
U.S. macro hedge program	70			—			—			70
International program hedging instruments	565			—			362			203
Other derivative contracts	26			—			—			26
Total derivative assets [1]	1,486			—			859			627
Short-term investments	5,154			309			4,845			—
Reinsurance recoverable for U.S. GMWB	376			—			—			376
Separate account assets [2]	141,110			102,608			37,167			1,335
Total assets accounted for at fair value on a recurring basis	$	264,584		$	106,227		$	149,513		$	8,844
Percentage of level to total	100		%	40		%	57		%	3		%
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
U.S guaranteed withdrawal benefits	$	(2,203	)	$	—		$	—		$	(2,203	)
International guaranteed withdrawal benefits	(53		)	—			—			(53		)
International other guaranteed living benefits	(4		)	—			—			(4		)
Equity linked notes	(10		)	—			—			(10		)
Total other policyholder funds and benefits payable	(2,270		)	—			—			(2,270		)
Derivative liabilities
Credit derivatives	(494		)	—			(45		)	(449		)
Equity derivatives	25			—			—			25
Foreign exchange derivatives	213			—			213			—
Interest rate derivatives	(622		)	—			(468		)	(154		)
U.S. GMWB hedging instruments	597			—			43			554
U.S. macro hedge program	110			—			—			110
International program hedging instruments	23			—			65			(42		)
Total derivative liabilities [3]	(148		)	—			(192		)	44
Other Liabilities	(29		)	—			—			(29		)
Consumer notes [4]	(4		)	—			—			(4		)
Total liabilities accounted for at fair value on a recurring basis	$	(2,451	)	$	—		$	(192	)	$	(2,259	)

4. Fair Value Measurements (continued)

	December 31, 2011
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS	$	3,153		$	—		$	2,792		$	361
CDOs	2,487			—			2,119			368
CMBS	6,951			—			6,363			588
Corporate	44,011			—			41,756			2,255
Foreign government/government agencies	2,161			—			2,112			49
States, municipalities and political subdivisions (“Municipal”)	13,260			—			12,823			437
RMBS	5,757			—			4,694			1,063
U.S. Treasuries	4,029			750			3,279			—
Total fixed maturities	81,809			750			75,938			5,121
Fixed maturities, FVO	1,328			—			833			495
Equity securities, trading	30,499			1,967			28,532			—
Equity securities, AFS	921			352			476			93
Derivative assets
Credit derivatives	(24		)	—			(11		)	(13		)
Equity derivatives	31			—			—			31
Foreign exchange derivatives	519			—			519			—
Interest rate derivatives	195			—			147			48
U.S. GMWB hedging instruments	494			—			11			483
U.S. macro hedge program	357			—			—			357
International program hedging instruments	731			—			692			39
Other derivative contracts	28			—			—			28
Total derivative assets [1]	2,331			—			1,358			973
Short-term investments	7,736			750			6,986			—
Reinsurance recoverable for U.S. GMWB	443			—			—			443
Separate account assets [2]	139,432			101,644			36,757			1,031
Total assets accounted for at fair value on a recurring basis	$	264,499		$	105,463		$	150,880		$	8,156
Percentage of level to total	100		%	40		%	57		%	3		%

4. Fair Value Measurements (continued)

	December 31, 2011
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
U.S guaranteed withdrawal benefits	$	(2,538	)	$	—	$	—		$	(2,538	)
International guaranteed withdrawal benefits	(66		)	—		—			(66		)
International other guaranteed living benefits	(5		)	—		—			(5		)
Equity linked notes	(9		)	—		—			(9		)
Total other policyholder funds and benefits payable	(2,618		)	—		—			(2,618		)
Derivative liabilities
Credit derivatives	(573		)	—		(25		)	(548		)
Equity derivatives	9			—		—			9
Foreign exchange derivatives	134			—		134			—
Interest rate derivatives	(527		)	—		(421		)	(106		)
U.S. GMWB hedging instruments	400			—		—			400
International program hedging instruments	19			—		23			(4		)
Total derivative liabilities [3]	(538		)	—		(289		)	(249		)
Other Liabilities	(9		)	—		—			(9		)
Consumer notes [4]	(4		)	—		—			(4		)
Total liabilities accounted for at fair value on a recurring basis	$	(3,169	)	$	—	$	(289	)	$	(2,880	)

[1] Includes over-the-counter derivative instruments in a net asset value position which may require the counterparty to pledge collateral to the Company. As of June 30, 2012 and December 31, 2011, $337 and $1.4 billion, respectively, of cash collateral liability was netted against the derivative asset value in the Condensed Consolidated Balance Sheet and is excluded from the table above. See footnote 3 below for derivative liabilities.

[2] Approximately $3.6 billion and $4.0 billion of investment sales receivable that are not subject to fair value accounting are excluded as of June 30, 2012 and December 31, 2011, respectively.

[3] Includes over-the-counter derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll-forward table included below in this Note 4, the derivative asset and liability are referred to as “freestanding derivatives” and are presented on a net basis.

[4] Represents embedded derivatives associated with non-funding agreement-backed consumer equity linked notes.

Information about significant unobservable inputs used in Level 3 assets measured at fair value

Securities	As of June 30, 2012
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Method	Significant Unobservable Input	Range of Values – Unobservable Inputs (Weighted Average) [1]	Impact of Increase in Input on Fair Value [2]
CMBS	$	986	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	300bps - 3,136bps (1,087bps)	Decrease
Corporate [3]	802		Discounted cash flows	Spread	87bps - 790bps (344bps)	Decrease
Municipal	650		Discounted cash flows	Spread	88bps - 496bps (237bps)	Decrease
RMBS	1,208		Discounted cash flows	Spread	54bps - 1,900bps (635bps)	Decrease
				Constant prepayment rate	0% -12% (2%)	Decrease [4]
				Constant default rate	1% - 28% (9%)	Decrease
				Loss severity	45% - 100% (77%)	Decrease

[1] The weighted average is determined based on the fair value of the securities.

[2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above.

[3] Level 3 corporate securities excludes those for which the Company bases fair value on broker quotations as discussed below.

[4] Decrease for above market rate coupons and increase for below market rate coupons.

Freestanding Derivatives	As of June 30, 2012
	Fair Value			Predominant Valuation Method	Significant Unobservable Input	Range of Values – Unobservable Inputs	Impact of Increase in Input on Fair Value [1]
Equity derivatives
Equity options	$	53		Option model	Equity volatility	14% – 25%	Increase
Interest rate derivative
Interest rate swaps	(90		)	Discounted cash flows	Swap curve beyond 30 years	2.5%	Increase
Long interest rate swaptions	24			Option model	Interest rate volatility	22% – 39%	Increase
U.S. GMWB hedging instruments
Equity options	428			Option model	Equity volatility	25% – 34%	Increase
Customized swaps	328			Discounted cash flows	Equity volatility	10% – 50%	Increase
U.S. macro hedge program
Equity options	180			Option model	Equity volatility	23% – 33%	Increase
International program hedging
Equity options	192			Option model	Equity volatility	20% – 30%	Increase
Short interest rate swaptions	(31		)	Option model	Interest rate volatility	27% – 40%	Decrease

Information about significant unobservable inputs used in Level 3 derivative instruments measured at fair value

Freestanding Derivatives	As of June 30, 2012
	Fair Value			Predominant Valuation Method	Significant Unobservable Input	Range of Values – Unobservable Inputs	Impact of Increase in Input on Fair Value [1]
Equity derivatives
Equity options	$	53		Option model	Equity volatility	14% – 25%	Increase
Interest rate derivative
Interest rate swaps	(90		)	Discounted cash flows	Swap curve beyond 30 years	2.5%	Increase
Long interest rate swaptions	24			Option model	Interest rate volatility	22% – 39%	Increase
U.S. GMWB hedging instruments
Equity options	428			Option model	Equity volatility	25% – 34%	Increase
Customized swaps	328			Discounted cash flows	Equity volatility	10% – 50%	Increase
U.S. macro hedge program
Equity options	180			Option model	Equity volatility	23% – 33%	Increase
International program hedging
Equity options	192			Option model	Equity volatility	20% – 30%	Increase
Short interest rate swaptions	(31		)	Option model	Interest rate volatility	27% – 40%	Decrease

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

Information about significant unobservable inputs used in Level 3 living benefits measured at fair value

Significant Unobservable Input	Range of Values-Unobservable Inputs	Impact of Increase in Input on Fair Value Measurement [1]
Withdrawal Utilization[2]	20% to 100%	Increase
Withdrawal Rates [2]	0% to 8%	Increase
Lapse Rates [3]	0% to 75%	Decrease
Reset Elections [4]	20% to 75%	Increase
Equity Volatility [5]	10% to 50%	Increase

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[2] Ranges represent assumed cumulative percentages of policyholders taking withdrawals and the annual amounts withdrawn.

[3] Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business.

[4] Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base.

[5] Range represents implied market volatilities for equity indices based on multiple pricing sources.

Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

For the three months ended June 30, 2012

	Fixed Maturities, AFS
Assets	ABS			CDOs			CMBS			Corporate			Foreign govt./govt. agencies			Municipal			RMBS			Total  Fixed Maturities, AFS			Fixed Maturities, FVO
Fair value as of March 31, 2012	$	299		$	903		$	1,001		$	1,994		$	55		$	625		$	1,109		$	5,986		$	508
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(1		)	(3		)	(29		)	—			—			—			17			(16		)	(6		)
Included in OCI [3]	24			13			36			(13		)	2			35			21			118			—
Purchases	25			—			1			31			—			63			203			323			—
Settlements	(3		)	(13		)	(38		)	(33		)	(1		)	—			(37		)	(125		)	—
Sales	(3		)	—			(71		)	(1		)	(1		)	(65		)	(105		)	(246		)	(9		)
Transfers into Level 3 [4]	—			—			151			120			—			—			—			271			—
Transfers out of Level 3 [4]	(18		)	—			(65		)	(293		)	—			(8		)	—			(384		)	—
Fair value as of June 30, 2012	$	323		$	900		$	986		$	1,805		$	55		$	650		$	1,208		$	5,927		$	493
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	(2	)	$	(3	)	$	—		$	—		$	—		$	—		$	—		$	(5	)	$	20

4. Fair Value Measurements (continued)

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity		Interest Rate			U.S. GMWB Hedging		U.S. Macro Hedge Program		Intl. Program Hedging Instr.			Other Contracts			Total Free- Standing Derivatives [5]
Fair value as of March 31, 2012	$	89		$	(474	)	$	39	$	(57	)	$	594	$	173	$	115		$	27		$	417
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	8			36			3		(11		)	139		7		58			(1		)	231
Included in OCI [3]	(4		)	—			—		2			—		—		—			—			2
Purchases	12			—			11		—			23		—		(12		)	—			22
Settlements	—			—			—		—			—		—		—			—			—
Sales	(19		)	—			—		—			—		—		—			—			—
Transfers into Level 3 [4]	—			—			—		—			—		—		—			—			—
Transfers out of Level 3 [4]	—			(1		)	—		—			—		—		—			—			(1		)
Fair value as of June 30, 2012	$	86		$	(439	)	$	53	$	(66	)	$	756	$	180	$	161		$	26		$	671
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	8		$	36		$	3	$	(11	)	$	139	$	7	$	55		$	(1	)	$	228

Assets	Reinsurance Recoverable for U.S. GMWB		Separate Accounts
Fair value as of March 31, 2012	$	308	$	1,346
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	62		16
Included in OCI [3]	—		—
Purchases	—		24
Settlements	6		—
Sales	—		(58		)
Transfers into Level 3 [4]	—		14
Transfers out of Level 3 [4]	—		(7		)
Fair value as of June 30, 2012	$	376	$	1,335
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	62	$	4

4. Fair Value Measurements (continued)

	Other Policyholder Funds and Benefits Payable
Liabilities	U.S. Guaranteed Withdrawal Benefits			International Guaranteed Living Benefits			International Other Living Benefits			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Other Liabilities			Consumer Notes
Fair value as of March 31, 2012	$	(1,683	)	$	(37	)	$	(1	)	$	(10	)	$	(1,731	)	$	(21	)	$	(4	)
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(484		)	(14		)	(2		)	—			(500		)	(8		)	—
Included in OCI [3]	—			—			—			—			—			—			—
Settlements	(36		)	(2		)	(1		)	—			(39		)	—			—
Fair value as of June 30, 2012	$	(2,203	)	$	(53	)	$	(4	)	$	(10	)	$	(2,270	)	$	(29	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	(484	)	$	(14	)	$	(2	)	$	—		$	(500	)	$	(8	)	$	—

For the six months ended June 30, 2012

	Fixed Maturities, AFS
Assets	ABS			CDOs			CMBS			Corporate			Foreign govt./govt. agencies			Municipal			RMBS			Total  Fixed Maturities, AFS			Fixed Maturities, FVO
Fair value as of January 1, 2012	$	361		$	368		$	588		$	2,255		$	49		$	437		$	1,063		$	5,121		$	495
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(1		)	(1		)	(34		)	(3		)	—			—			24			(15		)	21
Included in OCI [3]	33			76			59			(3		)	2			24			47			238			—
Purchases	25			—			13			165			7			275			283			768			—
Settlements	(38		)	(23		)	(70		)	(53		)	(2		)	—			(70		)	(256		)	—
Sales	(15		)	(3		)	(71		)	(54		)	(1		)	(65		)	(139		)	(348		)	(23		)
Transfers into Level 3 [4]	—			483			601			322			—			—			—			1,406			—
Transfers out of Level 3 [4]	(42		)	—			(100		)	(824		)	—			(21		)	—			(987		)	—
Fair value as of June 30, 2012	$	323		$	900		$	986		$	1,805		$	55		$	650		$	1,208		$	5,927		$	493
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	(2	)	$	(3	)	$	(1	)	$	—		$	—		$	—		$	(3	)	$	(9	)	$	35

4. Fair Value Measurements (continued)

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity			Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging Instr.			Other Contracts			Total Free- Standing Derivatives [5]
Fair value as of January 1, 2012	$	93		$	(561	)	$	40		$	(58	)	$	883		$	357		$	35		$	28		$	724
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	11			128			(14		)	(10		)	(173		)	(177		)	143			(2		)	(105		)
Included in OCI [3]	(4		)	—			—			2			—			—			—			—			2
Purchases	14			—			46			—			23			—			(65		)	—			4
Settlements	—			(5		)	(19		)	—			—			—			40			—			16
Sales	(28		)	—			—			—			—			—			—			—			—
Transfers into Level 3 [4]	—			—			—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			(1		)	—			—			23			—			8			—			30
Fair value as of June 30, 2012	$	86		$	(439	)	$	53		$	(66	)	$	756		$	180		$	161		$	26		$	671
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	8		$	116		$	(2	)	$	(10	)	$	(173	)	$	(176	)	$	140		$	(2	)	$	(107	)

Assets	Reinsurance Recoverable for U.S. GMWB			Separate Accounts
Fair value as of January 1, 2012	$	443		$	1,031
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(81		)	33
Included in OCI [3]	—			—
Purchases	—			239
Settlements	14			—
Sales	—			(401		)
Transfers into Level 3 [4]	—			454
Transfers out of Level 3 [4]	—			(21		)
Fair value as of June 30, 2012	$	376		$	1,335
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	(81	)	$	10

4. Fair Value Measurements (continued)

	Other Policyholder Funds and Benefits Payable
Liabilities	U.S. Guaranteed Withdrawal Benefits			International Guaranteed Living Benefits			International Other Living Benefits			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Other Liabilities			Consumer Notes
Fair value as of January 1, 2012	$	(2,538	)	$	(66	)	$	(5	)	$	(9	)	$	(2,618	)	$	(9	)	$	(4	)
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	412			16			3			(1		)	430			(20		)	—
Included in OCI [3]	—			1			—			—			1			—			—
Settlements	(77		)	(4		)	(2		)	—			(83		)	—			—
Fair value as of June 30, 2012	$	(2,203	)	$	(53	)	$	(4	)	$	(10	)	$	(2,270	)	$	(29	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2012 [2] [7]	$	412		$	16		$	3		$	(1	)	$	430		$	(20	)	$	—

For the three months ended June 30, 2011

	Fixed Maturities, AFS
Assets	ABS			CDOs			CMBS			Corporate			Foreign govt./govt. agencies			Municipal			RMBS			Total  Fixed Maturities, AFS			Fixed Maturities, FVO
Fair value as of March 31, 2011	$	446		$	2,674		$	741		$	2,096		$	63		$	276		$	1,124		$	7,420		$	579
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(1		)	—			13			(6		)	—			—			—			6			(22		)
Included in OCI [3]	17			10			34			27			1			9			(16		)	82			—
Purchases	—			—			—			35			—			—			25			60			—
Settlements	(7		)	(43		)	(20		)	(42		)	(1		)	—			(33		)	(146		)	(1		)
Sales	(2		)	(66		)	(193		)	(61		)	(3		)	(2		)	—			(327		)	—
Transfers into Level 3 [4]	19			—			79			78			—			—			14			190			—
Transfers out of Level 3 [4]	(20		)	—			—			(17		)	(9		)	(3		)	—			(49		)	—
Fair value as of June 30, 2011	$	452		$	2,575		$	654		$	2,110		$	51		$	280		$	1,114		$	7,236		$	556
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	(1	)	$	—		$	13		$	(6	)	$	—		$	—		$	—		$	6		$	(22	)

4. Fair Value Measurements (continued)

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity		Interest Rate			U.S. GMWB Hedging		U.S. Macro Hedge Program			Intl. Program Hedging Instr.			Other Contracts			Total Free- Standing Derivatives [5]
Fair value as of March 31, 2011	$	80		$	(382	)	$	5	$	9		$	488	$	123		$	2		$	31		$	276
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	—			(17		)	1		(2		)	60		(17		)	(1		)	(1		)	23
Included in OCI [3]	2			—			—		—			—		—			—			—			—
Purchases	24			—			—		—			—		180			5			—			185
Settlements	—			(3		)	—		—			—		(35		)	—			—			(38		)
Sales	(1		)	—			—		—			—		—			—			—			—
Transfers into Level 3 [4]	—			—			—		—			—		—			—			—			—
Transfers out of Level 3 [4]	(5		)	—			—		—			—		—			—			—			—
Fair value as of June 30, 2011	$	100		$	(402	)	$	6	$	7		$	548	$	251		$	6		$	30		$	446
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	—		$	(19	)	$	1	$	(2	)	$	52	$	—		$	(3	)	$	(1	)	$	28

Assets	Reinsurance Recoverable for U.S. GMWB		Separate Accounts
Fair value as of March 31, 2011	$	224	$	1,207
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	4		5
Included in OCI [3]	—		—
Purchases	—		(94		)
Settlements	9		—
Sales	—		(22		)
Transfers into Level 3 [4]	—		3
Transfers out of Level 3 [4]	—		(31		)
Fair value as of June 30, 2011	$	237	$	1,068
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	4	$	4

4. Fair Value Measurements (continued)

	Other Policyholder Funds and Benefits Payable
Liabilities	U.S. Guaranteed Withdrawal Benefits			International Guaranteed Living Benefits			International Other Living Benefits			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Other Liabilities			Consumer Notes
Fair value as of March 31, 2011	$	(1,301	)	$	(23	)	$	3		$	(10	)	$	(1,331	)	$	(51	)	$	(5	)
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(80		)	(4		)	(2		)	—			(86		)	7			1
Included in OCI [3]	—			—			—			—			—			—			—
Settlements	(39		)	(3		)	(1		)	—			(43		)	—			—
Fair value as of June 30, 2011	$	(1,420	)	$	(30	)	$	—		$	(10	)	$	(1,460	)	$	(44	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	(80	)	$	(4	)	$	(2	)	$	—		$	(86	)	$	7		$	1

For the six months ended June 30, 2011

	Fixed Maturities, AFS
Assets	ABS			CDOs			CMBS			Corporate			Foreign govt./govt. agencies			Municipal			RMBS			Total  Fixed Maturities, AFS			Fixed Maturities, FVO
Fair value as of January 1, 2011	$	477		$	2,581		$	689		$	2,129		$	56		$	272		$	1,285		$	7,489		$	522
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(6		)	(15		)	11			(28		)	—			—			(9		)	(47		)	36
Included in OCI [3]	37			123			147			19			1			9			25			361			—
Purchases	—			—			—			52			2			—			25			79			—
Settlements	(18		)	(78		)	(30		)	(73		)	(2		)	—			(67		)	(268		)	(2		)
Sales	(2		)	(66		)	(315		)	(134		)	(5		)	(2		)	(16		)	(540		)	—
Transfers into Level 3 [4]	68			30			152			273			11			4			14			552			—
Transfers out of Level 3 [4]	(104		)	—			—			(128		)	(12		)	(3		)	(143		)	(390		)	—
Fair value as of June 30, 2011	$	452		$	2,575		$	654		$	2,110		$	51		$	280		$	1,114		$	7,236		$	556
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	(6	)	$	(15	)	$	11		$	(28	)	$	—		$	—		$	(9	)	$	(47	)	$	36

4. Fair Value Measurements (continued)

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity		Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging Instr.			Other Contracts			Total Free- Standing Derivatives [5]
Fair value as of January 1, 2011	$	154		$	(390	)	$	4	$	(53	)	$	600		$	203		$	5		$	32		$	401
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(10		)	(6		)	2		(5		)	(59		)	(97		)	(4		)	(2		)	(171		)
Included in OCI [3]	1			—			—		—			—			—			—			—			—
Purchases	37			1			—		64			23			180			5			—			273
Settlements	—			(7		)	—		1			(16		)	(35		)	—			—			(57		)
Sales	(1		)	—			—		—			—			—			—			—			—
Transfers into Level 3 [4]	—			—			—		—			—			—			—			—			—
Transfers out of Level 3 [4]	(81		)	—			—		—			—			—			—			—			—
Fair value as of June 30, 2011	$	100		$	(402	)	$	6	$	7		$	548		$	251		$	6		$	30		$	446
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	(10	)	$	(8	)	$	2	$	(3	)	$	(61	)	$	(80	)	$	(5	)	$	(2	)	$	(157	)

Assets	Reinsurance Recoverable for U.S. GMWB			Separate Accounts
Fair value as of January 1, 2011	$	280		$	1,247
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(61		)	24
Included in OCI [3]	—			—
Purchases	—			34
Settlements	18			—
Sales	—			(169		)
Transfers into Level 3 [4]	—			12
Transfers out of Level 3 [4]	—			(80		)
Fair value as of June 30, 2011	$	237		$	1,068
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	(61	)	$	1

4. Fair Value Measurements (continued)

	Other Policyholder Funds and Benefits Payable
Liabilities	U.S. Guaranteed Withdrawal Benefits			International Guaranteed Living Benefits			International Other Living Benefits			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Other Liabilities			Consumer Notes
Fair value as of January 1, 2011	$	(1,611	)	$	(36	)	$	3		$	(9	)	$	(1,653	)	$	(37	)	$	(5	)
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	268			11			(1		)	—			278			(7		)	1
Included in OCI [3]	—			—			—			—			—			—			—
Settlements	(77		)	(5		)	(2		)	(1		)	(85		)	—			—
Fair value as of June 30, 2011	$	(1,420	)	$	(30	)	$	—		$	(10	)	$	(1,460	)	$	(44	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30, 2011 [2] [7]	$	268		$	11		$	(1	)	$	—		$	278		$	(7	)	$	1

[1] The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives.

[2] All amounts in these rows are reported in net realized capital gains/losses. The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization DAC.

[3] All amounts are before income taxes and amortization of DAC.

[4] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[5] Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Condensed Consolidated Balance Sheet in other investments and other liabilities.

[6] Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

[7] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

Fair value of assets and liabilities accounted for using the fair value option

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Assets
Fixed maturities, FVO
Corporate	$	(1	)	$	2		$	—		$	14
CRE CDOs	(10		)	(25		)	9			21
Foreign government	20			17			(29		)	11
Other liabilities
Credit-linked notes	(8		)	7			(20		)	(7		)
Total realized capital gains (losses)	$	1		$	1		$	(40	)	$	39

Fair value of assets and liabilities accounted for using the fair value option

	As of
	June 30, 2012		December 31, 2011
Assets
Fixed maturities, FVO
ABS	$	65	$	65
CRE CDOs	229		225
Corporate	266		272
Foreign government	605		766
Total fixed maturities, FVO	$	1,165	$	1,328
Other liabilities
Credit-linked notes [1]	$	29	$	9

[1] As of June 30, 2012 and December 31, 2011, the outstanding principal balance of the notes was $243.

Financial Instruments Not Carried at Fair Value

		June 30, 2012				December 31, 2011
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Policy loans	Level 3	$	1,956	$	2,156	$	2,001	$	2,153
Mortgage loans	Level 3	6,875		7,211		5,728		5,977
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	$	10,077	$	10,207	$	10,343	$	11,238
Senior notes [2]	Level 2	6,025		6,387		4,481		4,623
Junior subordinated debentures [2]	Level 2	1,100		1,173		500		498
Private placement junior subordinated debentures [2]	Level 3	—		—		1,235		1,932
Consumer notes [3]	Level 3	250		257		310		305

[1] Excludes guarantees on variable annuities, group accident and health and universal life insurance contracts, including corporate owned life insurance.

[2] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.

[3] Excludes amounts carried at fair value and included in disclosures above.