Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

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



	March 31, 2014
	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")	$	2,252		$	—	$	2,196		$	56
Collateralized debt obligations ("CDOs")	2,394			—		1,682			712
Commercial mortgage-backed securities ("CMBS")	4,568			—		3,976			592
Corporate	29,040			—		27,797			1,243
Foreign government/government agencies	4,050			—		3,996			54
Municipal	12,682			—		12,604			78
Residential mortgage-backed securities ("RMBS")	4,556			—		3,228			1,328
U.S. Treasuries	3,797			309		3,488			—
Total fixed maturities	63,339			309		58,967			4,063
Fixed maturities, FVO	1,009			—		803			206
Equity securities, trading	17,418			12		17,406			—
Equity securities, AFS	779			423		277			79
Derivative assets
Credit derivatives	44			—		28			16
Equity derivatives	—			—		—			—
Foreign exchange derivatives	(47		)	—		(47		)	—
Interest rate derivatives	(21		)	—		(49		)	28
U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments	55			—		(10		)	65
U.S. macro hedge program	83			—		—			83
International program hedging instruments	119			—		68			51
Other derivative contracts	16			—		—			16
Total derivative assets [1]	249			—		(10		)	259
Short-term investments	4,042			346		3,696			—
Limited partnerships and other alternative investments [2]	856			—		749			107
Reinsurance recoverable for U.S. GMWB	30			—		—			30
Modified coinsurance reinsurance contracts	(19		)	—		(19		)	—
Separate account assets [3]	137,039			97,814		38,463			762
Total assets accounted for at fair value on a recurring basis	$	224,742		$	98,904	$	120,332		$	5,506
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
U.S guaranteed withdrawal benefits	$	(24	)	$	—	$	—		$	(24	)
International guaranteed withdrawal benefits	2			—		—			2
International other guaranteed living benefits	2			—		—			2
Equity linked notes	(19		)	—		—			(19		)
Total other policyholder funds and benefits payable	(39		)	—		—			(39		)
Derivative liabilities
Credit derivatives	(33		)	—		(17		)	(16		)
Equity derivatives	19			—		17			2
Foreign exchange derivatives	(312		)	—		(312		)	—
Interest rate derivatives	(555		)	—		(555		)	—
U.S. GMWB hedging instruments	46			—		(12		)	58
U.S. macro hedge program	50			—		—			50
International program hedging instruments	(21		)	—		35			(56		)
Total derivative liabilities [4]	(806		)	—		(844		)	38
Consumer notes [5]	(2		)	—		—			(2		)
Total liabilities accounted for at fair value on a recurring basis	$	(847	)	$	—	$	(844	)	$	(3	)



	December 31, 2013
	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	$	2,365		$	—	$	2,218		$	147
CDOs	2,387			—		1,723			664
CMBS	4,446			—		3,783			663
Corporate	28,490			—		27,216			1,274
Foreign government/government agencies	4,104			—		4,039			65
Municipal	12,173			—		12,104			69
RMBS	4,647			—		3,375			1,272
U.S. Treasuries	3,745			1,311		2,434			—
Total fixed maturities	62,357			1,311		56,892			4,154
Fixed maturities, FVO	844			—		651			193
Equity securities, trading	19,745			12		19,733			—
Equity securities, AFS	868			454		337			77
Derivative assets
Credit derivatives	25			—		20			5
Equity derivatives	—			—		—			—
Foreign exchange derivatives	14			—		14			—
Interest rate derivatives	(21		)	—		(63		)	42
U.S. GMWB hedging instruments	26			—		(42		)	68
U.S. macro hedge program	109			—		—			109
International program hedging instruments	272			—		241			31
Other derivative contracts	17			—		—			17
Total derivative assets [1]	442			—		170			272
Short-term investments	4,008			427		3,581			—
Limited partnerships and other alternative investments [2]	921			—		813			108
Reinsurance recoverable for U.S. GMWB	29			—		—			29
Modified coinsurance reinsurance contracts	67			—		67			—
Separate account assets [3]	138,495			99,930		37,828			737
Total assets accounted for at fair value on a recurring basis	$	227,776		$	102,134	$	120,072		$	5,570



	December 31, 2013
	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	$	(36	)	$	—	$	—		$	(36	)
International guaranteed withdrawal benefits	3			—		—			3
International other guaranteed living benefits	3			—		—			3
Equity linked notes	(18		)	—		—			(18		)
Total other policyholder funds and benefits payable	(48		)	—		—			(48		)
Derivative liabilities
Credit derivatives	(12		)	—		(9		)	(3		)
Equity derivatives	19			—		16			3
Foreign exchange derivatives	(388		)	—		(388		)	—
Interest rate derivatives	(582		)	—		(558		)	(24		)
U.S. GMWB hedging instruments	15			—		(63		)	78
U.S Macro hedge program	30			—		—			30
International program hedging instruments	(305		)	—		(245		)	(60		)
Total derivative liabilities [4]	(1,223		)	—		(1,247		)	24
Consumer notes [5]	(2		)	—		—			(2		)
Total liabilities accounted for at fair value on a recurring basis	$	(1,273	)	$	—	$	(1,247	)	$	(26	)

[1]

Includes over-the-counter("OTC") and OTC-cleared derivative instruments in a net asset value position after consideration of the impact of collateral posting requirements which may be imposed by agreements, clearing house rules and applicable law. As of March 31, 2014 and December 31, 2013, $114 and $128, 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 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 $1.5 billion and $2.4 billion of investment sales receivable that are not subject to fair value accounting are excluded as of March 31, 2014 and December 31, 2013, respectively.

[4]

Includes OTC and OTC-cleared derivative instruments in a net negative market value position (derivative liability) after consideration of the impact of collateral positing requirements which may be imposed by agreements, clearing house rules and applicable law. 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.


[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 March 31, 2014
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	$	592	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	98	bps	3,096	bps	391	bps	Decrease
Corporate [3]	777		Discounted cash flows	Spread	118	bps	697	bps	142	bps	Decrease
Municipal [3]	30		Discounted cash flows	Spread	189	bps	189	bps	189	bps	Decrease
RMBS	1,328		Discounted cash flows	Spread	58	bps	1,763	bps	202	bps	Decrease
				Constant prepayment rate	—	%	10.0	%	3.0	%	Decrease [4]
				Constant default rate	1.0	%	22.0	%	7.0	%	Decrease
				Loss severity	—	%	100.0	%	80.0	%	Decrease
	As of December 31, 2013
CMBS	$	663	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	99	bps	3,000	bps	527	bps	Decrease
Corporate [3]	665		Discounted cash flows	Spread	119	bps	5,594	bps	344	bps	Decrease
Municipal [3]	29		Discounted cash flows	Spread	184	bps	184	bps	184	bps	Decrease
RMBS	1,272		Discounted cash flows	Spread	62	bps	1,748	bps	232	bps	Decrease
				Constant prepayment rate	—	%	10.0	%	3.0	%	Decrease [4]
				Constant default rate	1.0	%	22.0	%	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 and municipal 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.



	As of March 31, 2014
Freestanding Derivatives	Unobservable Inputs
	Fair Value		Predominant Valuation Method	Significant Unobservable Input	Minimum		Maximum		Impact of Increase in Input on Fair Value [1]
Interest rate derivative
Interest rate swaptions	28		Option model	Interest rate volatility	3.0	%	4.0	%	Decrease
U.S. GMWB hedging instruments
Equity options	52		Option model	Equity volatility	20	%	30	%	Increase
Customized swaps	71		Discounted cash flows	Equity volatility	10	%	50	%	Increase
U.S. macro hedge program
Equity options	133		Option model	Equity volatility	23	%	34	%	Increase
International program hedging [2]
Equity options	(32	)	Option model	Equity volatility	28	%	36	%	Increase
Long interest rate swaptions	61		Option model	Interest rate volatility	—	%	3	%	Increase
	As of December 31, 2013
Interest rate derivative
Interest rate swaps	(24	)	Discounted cash flows	Swap curve beyond 30 years	4.0	%	4.0	%	Increase
Long interest rate swaptions	42		Option model	Interest rate volatility	1	%	1	%	Increase
U.S. GMWB hedging instruments
Equity options	72		Option model	Equity volatility	21	%	29	%	Increase
Customized swaps	74		Discounted cash flows	Equity volatility	10	%	50	%	Increase
U.S. macro hedge program
Equity options	139		Option model	Equity volatility	24	%	31	%	Increase
International program hedging [2]
Equity options	(35	)	Option model	Equity volatility	24	%	37	%	Increase
Short interest rate swaptions	(13	)	Option model	Interest rate volatility	—	%	1	%	Decrease
Long interest rate swaptions	50		Option model	Interest rate volatility	1	%	1	%	Increase

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



	As of March 31, 2014
Freestanding Derivatives	Unobservable Inputs
	Fair Value		Predominant Valuation Method	Significant Unobservable Input	Minimum		Maximum		Impact of Increase in Input on Fair Value [1]
Interest rate derivative
Interest rate swaptions	28		Option model	Interest rate volatility	3.0	%	4.0	%	Decrease
U.S. GMWB hedging instruments
Equity options	52		Option model	Equity volatility	20	%	30	%	Increase
Customized swaps	71		Discounted cash flows	Equity volatility	10	%	50	%	Increase
U.S. macro hedge program
Equity options	133		Option model	Equity volatility	23	%	34	%	Increase
International program hedging [2]
Equity options	(32	)	Option model	Equity volatility	28	%	36	%	Increase
Long interest rate swaptions	61		Option model	Interest rate volatility	—	%	3	%	Increase
	As of December 31, 2013
Interest rate derivative
Interest rate swaps	(24	)	Discounted cash flows	Swap curve beyond 30 years	4.0	%	4.0	%	Increase
Long interest rate swaptions	42		Option model	Interest rate volatility	1	%	1	%	Increase
U.S. GMWB hedging instruments
Equity options	72		Option model	Equity volatility	21	%	29	%	Increase
Customized swaps	74		Discounted cash flows	Equity volatility	10	%	50	%	Increase
U.S. macro hedge program
Equity options	139		Option model	Equity volatility	24	%	31	%	Increase
International program hedging [2]
Equity options	(35	)	Option model	Equity volatility	24	%	37	%	Increase
Short interest rate swaptions	(13	)	Option model	Interest rate volatility	—	%	1	%	Decrease
Long interest rate swaptions	50		Option model	Interest rate volatility	1	%	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)

For the three months ended March 31, 2014



	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, 2014	$	147		$	664		$	663		$	1,274		$	65		$	69		$	1,272		$	4,154		$	193
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	—			—			23			(14		)	(2		)	—			(1		)	6			10
Included in OCI [3]	2			—			(22		)	24			5			3			14			26			—
Purchases	—			—			65			37			—			12			147			261			5
Settlements	(1		)	(14		)	(33		)	1			(1		)	—			(46		)	(94		)	—
Sales	—			—			(87		)	(78		)	(13		)	—			(42		)	(220		)	(2		)
Transfers into Level 3 [4]	—			72			—			67			—			—			—			139			1
Transfers out of Level 3 [4]	(92		)	(10		)	(17		)	(68		)	—			(6		)	(16		)	(209		)	(1		)
Fair value as of March 31, 2014	$	56		$	712		$	592		$	1,243		$	54		$	78		$	1,328		$	4,063		$	206
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2014 [2] [7]	$	—		$	—		$	8		$	(17	)	$	(2	)	$	—		$	—		$	(11	)	$	10



				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, 2014	$	77		$	2		$	3		$	18		$	146		$	139		$	(29	)	$	17		$	296
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(2		)	(2		)	(1		)	(14		)	(34		)	(10		)	15			(1		)	(47		)
Included in OCI [3]	4			—			—			—			—			—			—			—			—
Purchases	—			—			—			—			4			4			9			—			17
Settlements	—			—			—			—			7			—			—			—			7
Sales	—						—			—			—			—						—			—
Transfers into Level 3 [4]	—			—			—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—			—			24			—			—			—			—			24
Fair value as of March 31, 2014	$	79		$	—		$	2		$	28		$	123		$	133		$	(5	)	$	16		$	297
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2014 [2] [7]	$	(2	)	$	(1	)	$	—		$	(16	)	$	(50	)	$	(10	)	$	17		$	—		$	(60	)



Assets	Limited Partnerships and Other Alternative Investments			Reinsurance Recoverable for U.S. GMWB			Separate Accounts
Fair value as of January 1, 2014	$	108		$	29		$	737
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	3			(4		)	5
Included in OCI [3]	—			—			—
Purchases	30			—			130
Settlements	—			5			(1		)
Sales	(24		)	—			(86		)
Transfers into Level 3 [4]	—			—			3
Transfers out of Level 3 [4]	(10		)	—			(26		)
Fair value as of March 31, 2014	$	107		$	30		$	762
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2014 [2] [7]	$	3		$	(4	)	$	5



	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			Consumer Notes
Fair value as of January 1, 2014	$	(36	)	$	3		$	3		$	(18	)	$	(48	)	$	(2	)
Transfers to liabilities held for sale	—			—			—			—			—			—
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	36			—			(1		)	(1		)	34			—
Included in OCI [3]	—			—			—			—			—			—
Settlements	(24		)	(1		)	—			—			(25		)	—
Fair value as of March 31, 2014	$	(24	)	$	2		$	2		$	(19	)	$	(39	)	$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2014 [2] [7]	$	36		$	—		$	(1	)	$	(1	)	$	34		$	—

For the three months ended March 31, 2013



	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, 2013	$	278		$	944		$	859		$	2,001		$	56		$	227		$	1,373		$	5,738		$	214
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(3		)	(12		)	(5		)	17			—			—			29			26			15
Included in OCI [3]	25			45			45			(12		)	(2		)	1			20			122			—
Purchases	23			1			—			26			12			6			91			159			6
Settlements	(5		)	(24		)	(24		)	(59		)	(1		)	—			(41		)	(154		)	(1		)
Sales	(34		)	(185		)	(61		)	(281		)	(8		)	(39		)	(192		)	(800		)	(18		)
Transfers into Level 3 [4]	—			32			26			70			—			—			—			128			1
Transfers out of Level 3 [4]	(9		)	—			—			(40		)	(6		)	(44		)	—			(99		)	(1		)
Fair value as of March 31, 2013	$	275		$	801		$	840		$	1,722		$	51		$	151		$	1,280		$	5,120		$	216
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	(4	)	$	(2	)	$	(3	)	$	(4	)	$	—		$	—		$	—		$	(13	)	$	36



				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, 2013	$	84		$	4	$	57		$	(32	)	$	519		$	286		$	68		$	23		$	925
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	(6		)	2		(22		)	7			(190		)	(64		)	(84		)	(1		)	(352		)
Included in OCI [3]	9			—		—			—			—			—			—			—			—
Purchases	1			—		—			(3		)	—			21			(24		)	—			(6		)
Settlements	—			—		(3		)	—			—			—			(5		)	—			(8		)
Sales	(3		)	—		—			—			—			—			—			—			—
Transfers into Level 3 [4]	—			—		—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—		—			2			—			—			—			—			2
Fair value as of March 31, 2013	$	85		$	6	$	32		$	(26	)	$	329		$	243		$	(45	)	$	22		$	561
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	(6	)	$	2	$	(21	)	$	1		$	(185	)	$	(63	)	$	(41	)	$	(1	)	$	(308	)



Assets	Limited Partnerships and Other Alternative Investments			Reinsurance Recoverable for U.S. GMWB			Separate Accounts
Fair value as of January 1, 2013	$	314		$	191		$	583
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	7			(60		)	15
Included in OCI [3]	—			—			—
Purchases	60			—			255
Settlements	—			8			—
Sales	(21		)	—			(26		)
Transfers into Level 3 [4]	—			—			—
Transfers out of Level 3 [4]	(23		)	—			(4		)
Fair value as of March 31, 2013	$	337		$	139		$	823
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	7		$	(60	)	$	8



	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			Consumer Notes
Fair value as of January 1, 2013	$	(1,249	)	$	(50	)	$	2		$	(7	)	$	(1,304	)	$	(2	)
Total realized/unrealized gains (losses)
Included in net income [1], [2], [6]	456			14			3			(3		)	470			—
Included in OCI [3]	—			3			—			—			3			—
Settlements	(2		)	(1		)	(1		)	—			(4		)	—
Fair value as of March 31, 2013	$	(795	)	$	(34	)	$	4		$	(10	)	$	(835	)	$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	456		$	14		$	3		$	(3	)	$	470		$	—


[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 March 31,
	2014		2013
Assets
Fixed maturities, FVO
Corporate	$	2	$	(9	)
CDOs	8		6
Foreign government	10		(49		)
RMBS	1		—
Total realized capital gains (losses)	$	21	$	(52	)

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



	March 31, 2014		December 31, 2013
Assets
Fixed maturities, FVO
ABS	$	12	$	3
CDOs	191		183
CMBS	11		8
Corporate	98		92
Foreign government	588		518
U.S government	1		24
Municipals	2		1
RMBS	106		15
Total fixed maturities, FVO	$	1,009	$	844

Financial Instruments Not Carried at Fair Value



		March 31, 2014				December 31, 2013
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Policy loans	Level 3	$	1,429	$	1,478	$	1,420	$	1,480
Mortgage loans	Level 3	5,707		5,786		5,598		5,641
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	$	8,968	$	9,218	$	9,152	$	9,352
Senior notes [2]	Level 2	5,007		5,770		5,206		5,845
Junior subordinated debentures [2]	Level 2	1,100		1,298		1,100		1,271
Revolving Credit Facility	Level 2	243		243		238		238
Consumer notes [3]	Level 3	78		76		82		82


[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.

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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