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Investments and Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2012
Derivative [Line Items]  
Investment Income
 
For the years ended December 31,
(Before-tax)
2012
2011
2010
Fixed maturities [1]
$
3,363

$
3,396

$
3,489

Equity securities, AFS
37

36

53

Mortgage loans
337

281

260

Policy loans
119

131

132

Limited partnerships and other alternative investments
196

243

216

Other investments [2]
296

301

329

Investment expenses
(111
)
(116
)
(115
)
Total securities AFS and other
4,237

4,272

4,364

Equity securities, trading
4,565

(1,359
)
(774
)
Total net investment income (loss)
$
8,802

$
2,913

$
3,590

[1]
Includes net investment income on short-term investments.
[2]
Includes income from derivatives that qualify for hedge accounting and hedge fixed maturities.
Net Realized Capital Gains (Losses)
 
For the years ended December 31,
(Before-tax)
2012
2011
2010
Gross gains on sales
$
877

$
693

$
836

Gross losses on sales
(441
)
(384
)
(522
)
Net OTTI losses recognized in earnings [1]
(349
)
(174
)
(434
)
Valuation allowances on mortgage loans
14

24

(154
)
Japanese fixed annuity contract hedges, net [2]
(36
)
3

27

Periodic net coupon settlements on credit derivatives/Japan
(10
)
(10
)
(17
)
Results of variable annuity hedge program
 
 
 
GMWB derivatives, net
519

(397
)
89

U.S. macro hedge program
(340
)
(216
)
(445
)
Total U.S. program
179

(613
)
(356
)
International program
(1,490
)
775

11

Total results of variable annuity hedge program
(1,311
)
162

(345
)
Other, net [3]
545

(459
)
(2
)
Net realized capital gains (losses)
$
(711
)
$
(145
)
$
(611
)
[1] Includes $177 of intent-to-sell impairments relating to the sales of the Retirement Plans and Individual Life businesses.
[2] Relates to the Japanese fixed annuity products (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding net period coupon settlements, and Japan FVO securities).
[3] Primarily consists of non-qualifying derivatives, transactional foreign currency re-valuation associated with the internal reinsurance of the Japan variable annuity business, which is offset in AOCI, and Japan 3Win related foreign currency swaps.
Sales of Available-for-sale Securities
 
For the years ended December 31,
 
2012
2011
2010
Fixed maturities, AFS
 
 
 
Sale proceeds
$
41,442

$
36,956

$
46,482

Gross gains
845

617

706

Gross losses
(416
)
(381
)
(452
)
Equity securities, AFS
 
 
 
Sale proceeds
$
295

$
239

$
325

Gross gains
34

59

24

Gross losses
(20
)
—

(16
)
Other-Than-Temporary Impairment Losses
 
For the years ended December 31,
 (Before-tax)
2012
2011
2010
Balance as of beginning of period
$
(1,676
)
$
(2,072
)
$
(2,200
)
Additions for credit impairments recognized on [1]:
 
 
 
Securities not previously impaired
(28
)
(56
)
(211
)
Securities previously impaired
(20
)
(69
)
(161
)
Reductions for credit impairments previously recognized on:
 
 
 
Securities that matured or were sold during the period
700

505

468

Securities due to an increase in expected cash flows
11

16

32

Balance as of end of period
$
(1,013
)
$
(1,676
)
$
(2,072
)
[1] These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations.
Available-for-Sale Securities
 
December 31, 2012
December 31, 2011
 
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Non-
Credit
OTTI [1]
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Non-
Credit
OTTI [1]
ABS
$
2,883

$
63

$
(183
)
$
2,763

$
(4
)
$
3,430

$
55

$
(332
)
$
3,153

$
(7
)
CDOs [2]
3,170

60

(159
)
3,040

(14
)
2,819

16

(348
)
2,487

(44
)
CMBS
6,083

417

(179
)
6,321

(11
)
7,192

271

(512
)
6,951

(31
)
Corporate [2]
39,694

4,631

(276
)
44,049

(19
)
41,161

3,661

(739
)
44,011

—

Foreign govt./govt. agencies
3,985

191

(40
)
4,136

—

2,030

141

(10
)
2,161

—

Municipal
13,001

1,379

(19
)
14,361

—

12,557

775

(72
)
13,260

—

RMBS
7,318

295

(133
)
7,480

(32
)
5,961

252

(456
)
5,757

(105
)
U.S. Treasuries
3,613

175

(16
)
3,772

—

3,828

203

(2
)
4,029

—

Total fixed maturities, AFS
79,747

7,211

(1,005
)
85,922

(80
)
78,978

5,374

(2,471
)
81,809

(187
)
Equity securities, AFS
866

81

(57
)
890

—

1,056

68

(203
)
921

—

Total AFS securities [3]
$
80,613

$
7,292

$
(1,062
)
$
86,812

$
(80
)
$
80,034

$
5,442

$
(2,674
)
$
82,730

$
(187
)
[1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2012 and 2011.
[2] Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses).
[3] Includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of the Notes to Consolidated Financial Statements for further discussion of this transaction.
Contractual Maturity
 
December 31, 2012
Contractual Maturity
Amortized Cost
Fair Value
One year or less
$
1,689

$
1,710

Over one year through five years
14,664

15,556

Over five years through ten years
15,542

17,038

Over ten years
28,398

32,014

Subtotal
60,293

66,318

Mortgage-backed and asset-backed securities
19,454

19,604

Total fixed maturities, AFS [1]
$
79,747

$
85,922

[1] Includes fixed maturities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of the Notes to Consolidated Financial Statements for further discussion of this transaction.
Securities Unrealized Loss Aging
 
December 31, 2012
 
Less Than 12 Months
12 Months or More
Total
 
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
163

$
161

$
(2
)
$
886

$
705

$
(181
)
$
1,049

$
866

$
(183
)
CDOs [1]
5

4

(1
)
2,567

2,389

(158
)
2,572

2,393

(159
)
CMBS
339

322

(17
)
1,248

1,086

(162
)
1,587

1,408

(179
)
Corporate
1,261

1,218

(43
)
1,823

1,590

(233
)
3,084

2,808

(276
)
Foreign govt./govt. agencies
1,380

1,343

(37
)
20

17

(3
)
1,400

1,360

(40
)
Municipal
271

265

(6
)
157

144

(13
)
428

409

(19
)
RMBS
910

908

(2
)
869

738

(131
)
1,779

1,646

(133
)
U.S. Treasuries
583

567

(16
)
—

—

—

583

567

(16
)
Total fixed maturities, AFS
4,912

4,788

(124
)
7,570

6,669

(881
)
12,482

11,457

(1,005
)
Equity securities, AFS
69

67

(2
)
280

225

(55
)
349

292

(57
)
Total securities in an unrealized loss
$
4,981

$
4,855

$
(126
)
$
7,850

$
6,894

$
(936
)
$
12,831

$
11,749

$
(1,062
)
 
December 31, 2011
 
Less Than 12 Months
12 Months or More
Total
 
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
629

$
594

$
(35
)
$
1,169

$
872

$
(297
)
$
1,798

$
1,466

$
(332
)
CDOs [1]
81

59

(22
)
2,709

2,383

(326
)
2,790

2,442

(348
)
CMBS
1,297

1,194

(103
)
2,144

1,735

(409
)
3,441

2,929

(512
)
Corporate
4,388

4,219

(169
)
3,268

2,627

(570
)
7,656

6,846

(739
)
Foreign govt./govt. agencies
218

212

(6
)
51

47

(4
)
269

259

(10
)
Municipal
299

294

(5
)
627

560

(67
)
926

854

(72
)
RMBS
415

330

(85
)
1,206

835

(371
)
1,621

1,165

(456
)
U.S. Treasuries
343

341

(2
)
—

—

—

343

341

(2
)
Total fixed maturities, AFS
7,670

7,243

(427
)
11,174

9,059

(2,044
)
18,844

16,302

(2,471
)
Equity securities, AFS
167

138

(29
)
439

265

(174
)
606

403

(203
)
Total securities in an unrealized loss
$
7,837

$
7,381

$
(456
)
$
11,613

$
9,324

$
(2,218
)
$
19,450

$
16,705

$
(2,674
)
[1] Unrealized losses exclude the change in fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in fair value are recorded in net realized capital gains (losses).
Mortgage Loans
 
December 31, 2012
December 31, 2011
 
Amortized Cost [1]
Valuation Allowance
Carrying Value
Amortized Cost [1]
Valuation Allowance
Carrying Value
Commercial
$
6,779

$
(68
)
$
6,711

$
5,830

$
(102
)
$
5,728

Total mortgage loans [2]
$
6,779

$
(68
)
$
6,711

$
5,830

$
(102
)
$
5,728

[1] Amortized cost represents carrying value prior to valuation allowances, if any.
[2] Includes commercial mortgage loans relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of the Notes to Consolidated Financial Statements for further discussion of this transaction.
Valuation Allowance for Mortgage Loans
 
For the years ended December 31,
 
2012
2011
2010
Balance as of January 1
$
(102
)
$
(155
)
$
(366
)
(Additions)/Reversals
14

(26
)
(157
)
Deductions
20

79

368

Balance as of December 31
$
(68
)
$
(102
)
$
(155
)
Commercial Mortgage Loans Credit Quality
Commercial Mortgage Loans Credit Quality
 
December 31, 2012
December 31, 2011
Loan-to-value
Carrying Value
Avg. Debt-Service Coverage Ratio
Carrying Value
Avg. Debt-Service Coverage Ratio
Greater than 80%
$
253

0.95x
$
707

1.45x
65% - 80%
2,220

2.12x
2,384

1.60x
Less than 65%
4,238

2.40x
2,637

2.40x
Total commercial mortgage loans
$
6,711

2.24x
$
5,728

1.94x
Mortgage Loans by Region
Mortgage Loans by Region
 
December 31, 2012
December 31, 2011
 
Carrying Value
Percent of Total
Carrying Value
Percent of Total
East North Central
$
145

2.2
%
$
94

1.6
%
Middle Atlantic
477

7.1
%
508

8.9
%
Mountain
99

1.5
%
125

2.2
%
New England
350

5.2
%
294

5.1
%
Pacific
1,978

29.5
%
1,690

29.5
%
South Atlantic
1,378

20.5
%
1,149

20.1
%
West North Central
16

0.2
%
30

0.5
%
West South Central
398

5.9
%
224

3.9
%
Other [1]
1,870

27.9
%
1,614

28.2
%
Total mortgage loans
$
6,711

100.0
%
$
5,728

100.0
%
[1] Primarily represents loans collateralized by multiple properties in various regions.
Mortgage Loans by Property Type
Mortgage Loans by Property Type
 
 
December 31, 2012
December 31, 2011
 
Carrying Value
Percent of Total
Carrying Value
Percent of Total
Commercial
 
 
 
 
Agricultural
$
142

2.1
%
$
249

4.3
%
Industrial
2,079

30.9
%
1,747

30.5
%
Lodging
81

1.2
%
93

1.6
%
Multifamily
1,200

17.9
%
1,070

18.7
%
Office
1,510

22.5
%
1,078

18.8
%
Retail
1,460

21.8
%
1,234

21.5
%
Other
239

3.6
%
257

4.6
%
Total mortgage loans
$
6,711

100.0
%
$
5,728

100.0
%
Variable Interest Entities Primary Beneficiary
 
December 31, 2012
December 31, 2011
 
Total Assets
Total Liabilities [1]
Maximum Exposure to Loss [2]
Total Assets
Total Liabilities [1]
Maximum Exposure to Loss [2]
CDOs [3]
$
89

$
88

$
7

$
491

$
471

$
29

Investment funds [4]
163

—

162

—

—

—

Limited partnerships
6

1

5

7

—

7

Total
$
258

$
89

$
174

$
498

$
471

$
36

[1] Included in other liabilities in the Company’s Consolidated Balance Sheets.
[2] The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment.
[3] Total assets included in fixed maturities, AFS in the Company’s Consolidated Balance Sheets.
[4] Total assets included in fixed maturities, FVO in the Company's Consolidated Balance Sheets.
GMWB reinsurance contracts
 
Notional Amount
Fair Value
 
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Customized swaps
$
7,787

$
8,389

$
238

$
385

Equity swaps, options, and futures
5,130

5,320

267

498

Interest rate swaps and futures
5,705

2,697

67

11

Total
$
18,622

$
16,406

$
572

$
894
Derivative Classification by Balance Sheet Location
 
Net Derivatives
Asset Derivatives
Liability Derivatives
 
Notional Amount
Fair Value
Fair Value
Fair Value
Hedge Designation/ Derivative Type
Dec 31, 2012
Dec 31, 2011
Dec 31, 2012
Dec 31, 2011
Dec 31, 2012
Dec 31, 2011
Dec 31, 2012
Dec 31, 2011
Cash flow hedges
 
 
 
 
 
 
 
 
Interest rate swaps
$
6,063

$
8,652

$
271

$
329

$
271

$
329

$
—

$
—

Foreign currency swaps
163

291

(17
)
6

3

30

(20
)
(24
)
Total cash flow hedges
6,226

8,943

254

335

274

359

(20
)
(24
)
Fair value hedges
 
 
 
 
 
 
 
 
Interest rate swaps
753

1,007

(55
)
(78
)
—

—

(55
)
(78
)
Foreign currency swaps
40

677

16

(39
)
16

63

—

(102
)
Total fair value hedges
793

1,684

(39
)
(117
)
16

63

(55
)
(180
)
Non-qualifying strategies
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Interest rate swaps, caps, floors, and futures
17,117

10,144

(497
)
(583
)
556

531

(1,053
)
(1,114
)
Foreign exchange contracts
 
 
 
 
 
 
 
 
Foreign currency swaps and forwards
355

380

(16
)
(12
)
5

6

(21
)
(18
)
Japan 3Win foreign currency swaps
1,816

2,054

(127
)
184

—

184

(127
)
—

Japanese fixed annuity hedging instruments
1,652

1,945

224

514

228

540

(4
)
(26
)
Credit contracts
 
 
 
 
 
 
 
 
Credit derivatives that purchase credit protection
1,823

1,721

(8
)
36

5

56

(13
)
(20
)
Credit derivatives that assume credit risk [1]
2,745

2,952

(29
)
(648
)
19

2

(48
)
(650
)
Credit derivatives in offsetting positions
9,497

8,189

(32
)
(57
)
94

164

(126
)
(221
)
Equity contracts
 
 
 
 
 
 
 
 
Equity index swaps and options
994

1,501

47

27

57

40

(10
)
(13
)
Variable annuity hedge program
 
 
 
 
 
 
 
 
U.S. GMWB product derivative [2]
28,868

34,569

(1,249
)
(2,538
)
—

—

(1,249
)
(2,538
)
U.S. GMWB reinsurance contracts
5,773

7,193

191

443

191

443

—

—

U.S. GMWB hedging instruments
18,622

16,406

572

894

743

1,022

(171
)
(128
)
U.S. macro hedge program
7,442

6,819

286

357

356

357

(70
)
—

International program product derivatives [2]
2,454

2,710

(48
)
(71
)
—

—

(48
)
(71
)
International program hedging instruments
63,085

33,726

169

750

1,020

887

(851
)
(137
)
Other
 
 
 
 
 
 
 
 
Contingent capital facility put option
500

500

23

28

23

28

—

—

Total non-qualifying strategies
162,743

130,809

(494
)
(676
)
3,297

4,260

(3,791
)
(4,936
)
Total cash flow hedges, fair value hedges, and non-qualifying strategies
$
169,762

$
141,436

$
(279
)
$
(458
)
$
3,587

$
4,682

$
(3,866
)
$
(5,140
)
Balance Sheet Location
 
 
 
 
 
 
 
 
Fixed maturities, available-for-sale
$
703

$
703

$
(32
)
$
(72
)
$
—

$
—

$
(32
)
$
(72
)
Other investments
54,504

60,227

1,045

2,331

1,581

3,165

(536
)
(834
)
Other liabilities
77,384

35,944

(177
)
(538
)
1,815

1,074

(1,992
)
(1,612
)
Consumer notes
26

35

(2
)
(4
)
—

—

(2
)
(4
)
Reinsurance recoverables
5,773

7,193

191

443

191

443

—

—

Other policyholder funds and benefits payable
31,372

37,334

(1,304
)
(2,618
)
—

—

(1,304
)
(2,618
)
Total derivatives
$
169,762

$
141,436

$
(279
)
$
(458
)
$
3,587

$
4,682

$
(3,866
)
$
(5,140
)
[1] The derivative instruments related to this strategy are held for other investment purposes.
[2] These derivatives are embedded within liabilities and are not held for risk management purposes.
Derivatives in Cash Flow Hedging Relationships
Derivatives in Cash Flow Hedging Relationships
 
Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
Net Realized Capital Gains(Losses) Recognized in Income on Derivative (Ineffective Portion)
 
2012
2011
2010
2012
2011
2010
Interest rate swaps
$
120

$
337

$
294

$
—

$
(4
)
$
2

Foreign currency swaps
(31
)
(3
)
8

—

—

(1
)
Total
$
89

$
334

$
302

$
—

$
(4
)
$
1

Derivatives in Cash Flow Hedging Relationships
 
 
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Location
2012
2011
2010
Interest rate swaps
Net realized capital gain/(loss)
$
90

$
9

$
18

Interest rate swaps
Net investment income
140

126

94

Foreign currency swaps
Net realized capital gain/(loss)
(6
)
(3
)
(7
)
Total
 
$
224

$
132

$
105
Derivatives in Fair Value Hedging Relationships
Derivatives in Fair Value Hedging Relationships
 
Gain (Loss) Recognized in Income [1]
 
2012
2011
2010
 
Derivative
Hedged Item
Derivative
Hedged Item
Derivative
Hedged Item
Interest rate swaps
 
 
 
 
 
 
Net realized capital gains (losses)
$
(3
)
$
(3
)
$
(73
)
$
70

$
(43
)
$
36

Benefits, losses and loss adjustment expenses
—

—

(1
)
—

(1
)
3

Foreign currency swaps
 

 

 

 

 
 
Net realized capital gains (losses)
(7
)
7

(1
)
1

8

(8
)
Benefits, losses and loss adjustment expenses
(6
)
6

(22
)
22

(12
)
12

Total
$
(16
)
$
10

$
(96
)
$
93

$
(48
)
$
43

[1]
The amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (expense) related to the hedged item. The net of the amounts presented represents the ineffective portion of the hedge.
Gain or loss recognized in income on non-qualifying strategies
Non-qualifying Strategies
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
 
December 31,
 
2012
2011
2010
Interest rate contracts
 
 
 
Interest rate swaps, caps, floors, and forwards
$
21

$
(22
)
$
45

Foreign exchange contracts
 
 
 
Foreign currency swaps and forwards
19

3

(1
)
Japan 3Win foreign currency swaps [1]
(300
)
31

215

Japanese fixed annuity hedging instruments [2]
(178
)
109

385

Credit contracts
 
 
 
Credit derivatives that purchase credit protection
(64
)
(10
)
(23
)
Credit derivatives that assume credit risk
293

(174
)
196

Equity contracts
 
 
 
Equity index swaps and options
(39
)
(89
)
5

Variable annuity hedge program
 
 
 
U.S. GMWB product derivative
1,430

(780
)
486

U.S. GMWB reinsurance contracts
(280
)
131

(102
)
U.S. GMWB hedging instruments
(631
)
252

(295
)
U.S. macro hedge program
(340
)
(216
)
(445
)
International program product derivatives
36

(25
)
26

International program hedging instruments
(1,526
)
800

(15
)
Other
 
 
 
Contingent capital facility put option
(6
)
(5
)
(6
)
Total
$
(1,565
)
$
5

$
471

[1]
The associated liability is adjusted for changes in spot rates through realized capital gains and was $189, $(100) and $(273) for the years ended December 31, 2012, 2011 and 2010, respectively.
[2]
The associated liability is adjusted for changes in spot rates through realized capital gains and losses and was $245, $(129) and $(332) for the years ended December 31, 2012, 2011 and 2010, respectively.
Credit Derivatives Description
As of December 31, 2012 
 
 
 

Underlying Referenced Credit Obligation(s) [1]

 
Credit Derivative type by derivative risk exposure
Notional Amount [2]
Fair Value
Weighted Average Years to Maturity
Type
Average Credit Rating
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Single name credit default swaps
 

 

 
 
 
 
 

Investment grade risk exposure
$
2,321

$
7

3 years
Corporate Credit/
Foreign Gov.
A
$
1,367

$
(26
)
Below investment grade risk exposure
145

(1
)
1 year
Corporate Credit
B+
145

(3
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
3,978

7

3 years
Corporate Credit
BBB+
2,712

(13
)
Investment grade risk exposure
330

(17
)
4 years
CMBS Credit
A
330

17

Below investment grade risk exposure
195

(46
)
4 years
CMBS Credit
B+
195

46

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
525

478

4 years
Corporate Credit
BBB-
—

—

Total
$
7,494

$
428

 
 
 
$
4,749

$
21

December 31, 2011
 
 
 

Unifying Refernced Credit Obligation(s) [1]
 

 
Credit Derivative type by derivative risk exposure
Notional Amount [2]
Fair Value
Weighted Average Years to Maturity
Type
Average Credit Rating
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Single name credit default swaps
 

 

 
 
 
 

 

Investment grade risk exposure
$
1,628

$
(34
)
3 years
Corporate Credit/
Foreign Gov.
A+
$
1,424

$
(15
)
Below investment grade risk exposure
170

(7
)
2 years
Corporate Credit
BB-
144

(5
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
3,645

(92
)
3 years
Corporate Credit
BBB+
2,001

29

Investment grade risk exposure
525

(98
)
5 years
CMBS Credit
BBB+
525

98

Below investment grade risk exposure
553

(509
)
3 years
Corporate Credit
BBB+
—

—

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
25

24

3 years
Corporate Credit
BBB-
—

—

Below investment grade risk exposure
500

411

5 years
Corporate Credit
BB+
—

—

Total
$
7,046

$
(305
)
 
 
 
$
4,094

$
107

[1]
The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.
[2]
Notional amount is equal to the maximum potential future loss amount. There is no specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.
[3]
The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.
[4]
Includes $4.5 billion and $4.2 billion as of December 31, 2012 and December 31, 2011, respectively, of standard market indices of diversified portfolios of corporate issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. As of December 31, 2012, The Company did not hold customized diversified portfolios of corporate issuers referenced through credit default swaps. As of December 31, 2011 the Company held $553 of customized diversified portfolios of corporate issuers referenced through credit default swaps.
Classification and Carrying Amount of Loaned Securities and Derivative Instruments Collateral Pledged
 
December 31, 2012
December 31, 2011
Fixed maturities, AFS
$
663

$
1,086

Short-term investments
208

199

Total collateral pledged
$
871

$
1,285
U.S. [Member]
  
Derivative [Line Items]  
Macro hedge program
 
Notional Amount
Fair Value
 
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Equity futures
$
—

$
59

$
—

$
—

Equity options
7,442

6,760

286

357

Total
$
7,442

$
6,819

$
286

$
357
International [Member]
  
Derivative [Line Items]  
Macro hedge program
 
Notional Amount
Fair Value
 
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Credit derivatives
$
350

$
—

$
28

$
—

Currency forwards [1]
9,327

8,622

(87
)
446

Currency options
10,342

7,357

(24
)
127

Equity futures
2,332

3,835

—

—

Equity options
3,952

1,565

47

74

Equity swaps
2,617

392

(12
)
(8
)
Customized swaps
899

—

(11
)
—

Interest rate futures
634

739

—

—

Interest rate swaps and swaptions
32,632

11,216

228

111

Total
$
63,085

$
33,726

$
169

$
750

[1]
As of December 31, 2012 and December 31, 2011 net notional amounts are $0.1 billion and $7.2 billion, respectively, which include $4.7 billion and $7.9 billion, respectively, related to long positions and $4.6 billion and $0.7 billion, respectively, related to short positions.