Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

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

	December 31, 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
ABS	$	2,763		$	—		$	2,485		$	278
CDOs	3,040			—			2,096			944
CMBS	6,321			—			5,462			859
Corporate	44,049			—			42,048			2,001
Foreign government/government agencies	4,136			—			4,080			56
States, municipalities and political subdivisions (“Municipal”)	14,361			—			14,134			227
RMBS	7,480			—			6,107			1,373
U.S. Treasuries	3,772			115			3,657			—
Total fixed maturities	85,922			115			80,069			5,738
Fixed maturities, FVO	1,087			8			865			214
Equity securities, trading	28,933			1,847			27,086			—
Equity securities, AFS	890			337			469			84
Derivative assets
Credit derivatives	(19		)	—			(8		)	(11		)
Equity derivatives	32			—			—			32
Foreign exchange derivatives	104			—			104			—
Interest rate derivatives	235			—			268			(33		)
U.S. GMWB hedging instruments	36			—			(53		)	89
U.S. macro hedge program	186			—			—			186
International program hedging instruments	448			—			318			130
Other derivative contracts	23			—			—			23
Total derivative assets [1]	1,045			—			629			416
Short-term investments	4,581			342			4,239			—
Limited partnerships and other alternative investments [2]	907			—			593			314
Reinsurance recoverable for U.S. GMWB	191			—			—			191
Separate account assets [3]	138,509			97,988			39,938			583
Total assets accounted for at fair value on a recurring basis	$	262,065		$	100,637		$	153,888		$	7,540
Percentage of level to total	100		%	38		%	59		%	3		%
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
U.S guaranteed withdrawal benefits	$	(1,249	)	$	—		$	—		$	(1,249	)
International guaranteed withdrawal benefits	(50		)	—			—			(50		)
International other guaranteed living benefits	2			—			—			2
Equity linked notes	(7		)	—			—			(7		)
Total other policyholder funds and benefits payable	(1,304		)	—			—			(1,304		)
Derivative liabilities
Credit derivatives	(18		)	—			(33		)	15
Equity derivatives	25			—			—			25
Foreign exchange derivatives	(24		)	—			(24		)	—
Interest rate derivatives	(517		)	—			(518		)	1
U.S. GMWB hedging instruments	536			—			106			430
U.S. macro hedge program	100			—			—			100
International program hedging instruments	(279		)	—			(217		)	(62		)
Total derivative liabilities [4]	(177		)	—			(686		)	509
Consumer notes [5]	(2		)	—			—			(2		)
Total liabilities accounted for at fair value on a recurring basis	$	(1,483	)	$	—		$	(686	)	$	(797	)

	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
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 [3]	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		%

	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 [4]	(538		)	—		(289		)	(249		)
Other liabilities	(9		)	—		—			(9		)
Consumer notes [5]	(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 December 31, 2012 and 2011, $160 and $1.4 billion, respectively, was netted against the derivative asset value in the Consolidated Balance Sheet and is excluded from the table above. See footnote 4 below for derivative liabilities.

[2] Represents hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at fair value.

[3] Approximately $3.1 billion and $4.0 billion of investment sales receivable that are not subject to fair value accounting are excluded as of December 31, 2012 and 2011, respectively.

[4] 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 5, the derivative asset and liability are referred to as “freestanding derivatives” and are presented on a net basis.

[5] 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

	As of December 31, 2012
Securities					Unobservable Inputs
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Method	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
CMBS	$	859	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	320 bps	3,615 bps	1,031 bps	Decrease
Corporate [3]	1,371		Discounted cash flows	Spread	106 bps	900 bps	328 bps	Decrease
Municipal	227		Discounted cash flows	Spread	227 bps	344 bps	258 bps	Decrease
RMBS	1,373		Discounted cash flows	Spread	54 bps	1,689 bps	367 bps	Decrease
				Constant prepayment rate	—%	12.0%	2.0%	Decrease [4]
				Constant default rate	1.0%	24.0%	8.0%	Decrease
				Loss severity	—%	100.0%	80.0%	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.

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

	As of December 31, 2012
Freestanding Derivatives						Unobservable Inputs
	Fair Value			Predominant Valuation Method	Significant Unobservable Input	Minimum		Maximum		Impact of Increase in Input on Fair Value [1]
Equity derivatives
Equity options	$	57		Option model	Equity volatility	13	%	24	%	Increase
Interest rate derivative
Interest rate swaps	(55		)	Discounted cash flows	Swap curve beyond 30 years	2.8	%	2.8	%	Increase
Long interest rate swaptions	23			Option model	Interest rate volatility	—	%	1	%	Increase
U.S. GMWB hedging instruments
Equity options	281			Option model	Equity volatility	10	%	31	%	Increase
Customized swaps	238			Discounted cash flows	Equity volatility	10	%	50	%	Increase
U.S. macro hedge program
Equity options	286			Option model	Equity volatility	24	%	43	%	Increase
International program hedging
Equity options	26			Option model	Equity volatility	19	%	27	%	Increase
Long interest rate swaptions	42			Option model	Interest rate volatility	—	%	1	%	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. 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	Unobservable Inputs (Minimum)	Unobservable Inputs (Maximum)	Impact of Increase in Input on Fair Value Measurement [1]
Withdrawal Utilization[2]	20%	100%	Increase
Withdrawal Rates [2]	—%	8%	Increase
Lapse Rates [3]	—%	75%	Decrease
Reset Elections [4]	20%	75%	Increase
Equity Volatility [5]	10%	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)

	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]	(2		)	(20		)	(83		)	3			—			(5		)	(55		)	(162		)	109
Included in OCI [3]	49			163			152			(46		)	2			41			315			676			—
Purchases	36			—			21			264			23			293			446			1,083			1
Settlements	(63		)	(47		)	(160		)	(157		)	(4		)	—			(151		)	(582		)	(1		)
Sales	(37		)	(3		)	(210		)	(114		)	(19		)	(96		)	(207		)	(686		)	(391		)
Transfers into Level 3 [4]	13			483			666			775			5			25			1			1,968			1
Transfers out of Level 3 [4]	(79		)	—			(115		)	(979		)	—			(468		)	(39		)	(1,680		)	—
Fair value as of December 31, 2012	$	278		$	944		$	859		$	2,001		$	56		$	227		$	1,373		$	5,738		$	214
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	(5	)	$	(12	)	$	(46	)	$	(7	)	$	—		$	(5	)	$	(12	)	$	(87	)	$	(4	)

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity			Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging			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]	8			195			(40		)	(9		)	(429		)	(323		)	(21		)	(5		)	(632		)
Included in OCI [3]	(5		)	—			—			2			—			—			—			—			2
Purchases	21			—			76			1			55			252			(58		)	—			326
Settlements	—			371			(19		)	—			(13		)	—			104			—			443
Sales	(33		)	—			—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			(1		)	—			32			23			—			8			—			62
Fair value as of December 31, 2012	$	84		$	4		$	57		$	(32	)	$	519		$	286		$	68		$	23		$	925
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	5		$	146		$	(15	)	$	(12	)	$	(425	)	$	(322	)	$	(5	)	$	(4	)	$	(637	)

Assets	Limited Partnerships and Other Alternative Investments			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]	(1		)	(280		)	37
Purchases	55			—			252
Settlements	—			28			(1		)
Sales	—			—			(476		)
Transfers into Level 3 [4]	260			—			443
Transfers out of Level 3 [4]	—			—			(703		)
Fair value as of December 31, 2012	$	314		$	191		$	583
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	(1	)	$	(280	)	$	28

	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]	1,430			26			11			2			1,469			(34		)	2
Settlements [8]	(141		)	(10		)	(4		)	—			(155		)	43			—
Fair value as of December 31, 2012	$	(1,249	)	$	(50	)	$	2		$	(7	)	$	(1,304	)	$	—		$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	1,430		$	26		$	11		$	2		$	1,469		$	—		$	2

For the year ended December 31, 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]	(27		)	(41		)	11			(40		)	—			—			(21		)	(118		)	22
Included in OCI [3]	22			126			52			(31		)	1			48			3			221			—
Purchases	58			—			29			108			3			131			25			354			—
Settlements	(37		)	(151		)	(86		)	(121		)	(4		)	—			(135		)	(534		)	(3		)
Sales	(10		)	(66		)	(317		)	(162		)	(7		)	(2		)	(16		)	(580		)	(42		)
Transfers into Level 3 [4]	82			30			268			774			39			4			82			1,279			—
Transfers out of Level 3 [4]	(204		)	(2,111		)	(58		)	(402		)	(39		)	(16		)	(160		)	(2,990		)	(4		)
Fair value as of December 31, 2011	$	361		$	368		$	588		$	2,255		$	49		$	437		$	1,063		$	5,121		$	495
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	(16	)	$	(41	)	$	(17	)	$	(17	)	$	—		$	—		$	(15	)	$	(106	)	$	19

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity			Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging			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]	(12		)	(170		)	(9		)	(21		)	279			(128		)	(3		)	(4		)	(56		)
Included in OCI [3]	(4		)	—			—			—			—			—			—			—			—
Purchases	39			1			45			64			23			347			33			—			513
Settlements	—			(2		)	—			(48		)	(19		)	(65		)	—			—			(134		)
Sales	(10		)	—			—			—			—			—			—			—			—
Transfers into Level 3 [4]	7			—			—			—			—			—			—			—			—
Transfers out of Level 3 [4]	(81		)	—			—			—			—			—			—			—			—
Fair value as of December 31, 2011	$	93		$	(561	)	$	40		$	(58	)	$	883		$	357		$	35		$	28		$	724
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	(10	)	$	(163	)	$	(8	)	$	(19	)	$	278		$	(107	)	$	(5	)	$	(4	)	$	(28	)

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]	131		25
Included in OCI [3]	—		—
Purchases	—		292
Settlements	32		—
Sales	—		(171		)
Transfers into Level 3 [4]	—		14
Transfers out of Level 3 [4]	—		(376		)
Fair value as of December 31, 2011	$	443	$	1,031
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	131	$	(1	)

	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]	(780		)	(21		)	(4		)	—			(805		)	28			1
Included in OCI [3]	—			—			—			—			—			—			—
Settlements	(147		)	(9		)	(4		)	—			(160		)	—			—
Fair value as of December 31, 2011	$	(2,538	)	$	(66	)	$	(5	)	$	(9	)	$	(2,618	)	$	(9	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	(780	)	$	(21	)	$	(4	)	$	—		$	(805	)	$	28		$	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 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.

[8] Settlements of other liabilities reflect the removal of liabilities carried at fair value upon the deconsolidation of a variable interest entity. See note 6, Investments and Derivative Instruments for additional information.

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

	For the years ended December 31,
	2012			2011
Assets
Fixed maturities, FVO
Corporate	13			10
CRE CDOs	63			(33		)
CMBS bonds	(2		)	—
Foreign government	(86		)	45
RMBS	5			—
Other liabilities
Credit-linked notes	(34		)	28
Total realized capital gains (losses)	$	(41	)	$	50

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

	As of December 31,
	2012		2011
Assets
Fixed maturities, FVO
ABS	$	—	$	65
CRE CDOs	205		225
CMBS	5		—
Corporate	140		272
Foreign government	730		766
U.S. government	2		—
Municipals	1		—
RMBS	4		—
Total fixed maturities, FVO	$	1,087	$	1,328
Other liabilities
Credit-linked notes [1]	$	—	$	9

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

Financial Instruments Not Carried at Fair Value

		December 31, 2012				December 31, 2011
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Policy loans	Level 3	$	1,997	$	2,165	$	2,001	$	2,153
Mortgage loans	Level 3	6,711		6,933		5,728		5,977
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	$	9,558	$	9,910	$	10,343	$	11,238
Senior notes [2]	Level 2	5,706		7,071		4,481		4,623
Junior subordinated debentures [2]	Level 2	1,100		1,265		500		498
Private placement junior subordinated debentures [2]	Level 3	—		—		1,235		1,932
Consumer notes [3]	Level 3	159		159		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 Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.

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