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Investments and Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative [Line Items]  
Offsetting Assets and Liabilities [Table Text Block]
As of March 31, 2014
 
(i)
 
(ii)
 
(iii) = (i) - (ii)
(iv)
 
(v) = (iii) - (iv)
 
 
 
 
 
Net Amounts Presented in the Statement of Financial Position
 
Collateral Disallowed for Offset in the Statement of Financial Position
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Assets [1]
 
Accrued Interest and Cash Collateral Received [2]
 
Financial Collateral Received [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other investments
$
1,488

 
$
1,212

 
$
249

 
$
27

 
$
184

 
$
92

 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Liabilities [3]
 
Accrued Interest and Cash Collateral Pledged [3]
 
Financial Collateral Pledged [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
(2,045
)
 
$
(1,104
)
 
$
(806
)
 
$
(135
)
 
$
(1,017
)
 
$
76










As of December 31, 2013
 
(i)
 
(ii)
 
(iii) = (i) - (ii)
(iv)
 
(v) = (iii) - (iv)
 
 
 
 
 
Net Amounts Presented in the Statement of Financial Position
 
Collateral Disallowed for Offset in the Statement of Financial Position
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Assets [1]
 
Accrued Interest and Cash Collateral Received [2]
 
Financial Collateral Received [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other investments
$
1,845

 
$
1,463

 
$
442

 
$
(60
)
 
$
242

 
$
140

 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Liabilities [3]
 
Accrued Interest and Cash Collateral Pledged [3]
 
Financial Collateral Pledged [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
(2,626
)
 
$
(1,496
)
 
$
(1,223
)
 
$
93

 
$
(1,204
)
 
$
74

[1]
Included in other invested assets in the Company's Condensed Consolidated Balance Sheets.
[2]
Included in other assets in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.
[3]
Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.
[4]
Excludes collateral associated with exchange-traded derivative instruments.
Cash Flow Hedges
For derivative instruments that are designated and quali
Net Realized Capital Gains (Losses)
 
Three Months Ended March 31,
(Before tax)
2014
2013
Gross gains on sales [1]
$
197

$
1,717

Gross losses on sales
(148
)
(82
)
Net OTTI losses recognized in earnings
(22
)
(21
)
Valuation allowances on mortgage loans
—

—

Japanese fixed annuity contract hedges, net [2]
(9
)
3

Periodic net coupon settlements on credit derivatives/Japan
3

(6
)
Results of variable annuity hedge program


GMWB derivatives, net
15

47

U.S. macro hedge program
(10
)
(85
)
Total U.S. program
5

(38
)
International program [3]
(32
)
(171
)
Total results of variable annuity hedge program
(27
)
(209
)
Other, net [4]
(80
)
204

Net realized capital gains (losses)
$
(86
)
$
1,606

[1]
Includes $1.5 billion of gains relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended March 31, 2013.
[2]
Includes for the three months ended March 31, 2014 and 2013, transactional foreign currency re-valuation related to the Japan fixed annuity
product of $(30) and $151, respectively, as well as the change in value related to the derivative hedging instruments and the Japan
government FVO securities of $21 and $(148), respectively.
[3]
Includes $6 and (34) of transactional foreign currency re-valuation for the three months ended March 31, 2014 and 2013, respectively.
[4]
For the three months ended March 31, 2014 and 2013, other, net gains and losses includes $(11) and $134, respectively, of transactional
foreign currency re-valuation associated with the internal reinsurance of the Japan GMIB variable annuity business, which is offset in AOCI. Also includes for the three months ended March 31, 2014 and 2013, $(28) and $116, respectively, of other transactional foreign currency revaluation, primarily associated with the internal reinsurance of the Japan 3 wins variable annuity business, of which a portion is offset within realized gains and losses by the change in value of the associated hedging derivatives. Includes $71 of gains relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended March 31, 2013.
Other-Than-Temporary Impairment Losses
 
Three Months Ended March 31,
(Before-tax)
2014
2013
Balance as of beginning of period
$
(552
)
$
(1,013
)
Additions for credit impairments recognized on [1]:


Securities not previously impaired
(7
)
(8
)
Securities previously impaired
(11
)
(2
)
Reductions for credit impairments previously recognized on:


Securities that matured or were sold during the period
33

114

Securities due to an increase in expected cash flows
6

3

Balance as of end of period
$
(531
)
$
(906
)
[1]
These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.
Available-for-Sale Securities
 
March 31, 2014
 
December 31, 2013
 
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
$
2,274

$
29

$
(51
)
$
2,252

$
(2
)
 
$
2,404

$
25

$
(64
)
$
2,365

$
(2
)
CDOs [2]
2,343

107

(53
)
2,394

—

 
2,340

108

(59
)
2,387

—

CMBS
4,411

198

(41
)
4,568

(7
)
 
4,288

216

(58
)
4,446

(6
)
Corporate
27,037

2,211

(208
)
29,040

(4
)
 
27,013

1,823

(346
)
28,490

(7
)
Foreign govt./govt. agencies
4,092

73

(115
)
4,050

—

 
4,228

52

(176
)
4,104

—

Municipal
12,052

688

(58
)
12,682

—

 
11,932

425

(184
)
12,173

—

RMBS
4,515

95

(54
)
4,556

(3
)
 
4,639

90

(82
)
4,647

(4
)
U.S. Treasuries
3,731

86

(20
)
3,797

—

 
3,797

7

(59
)
3,745

—

Total fixed maturities, AFS
60,455

3,487

(600
)
63,339

(16
)
 
60,641

2,746

(1,028
)
62,357

(19
)
Equity securities, AFS
745

72

(38
)
779

—

 
850

67

(49
)
868

—

Total AFS securities
$
61,200

$
3,559

$
(638
)
$
64,118

$
(16
)
 
$
61,491

$
2,813

$
(1,077
)
$
63,225

$
(19
)
[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 March 31, 2014 and December 31, 2013.
[2]
Gross unrealized gains (losses) exclude the change in fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in fair value will be recorded in net realized capital gains (losses).
Contractual Maturity
 
March 31, 2014
Contractual Maturity
Amortized Cost
Fair Value
One year or less
$
2,580

$
2,618

Over one year through five years
11,931

12,526

Over five years through ten years
10,294

10,770

Over ten years
22,107

23,655

Subtotal
46,912

49,569

Mortgage-backed and asset-backed securities
13,543

13,770

Total fixed maturities, AFS
$
60,455

$
63,339
Securities Unrealized Loss Aging
 
March 31, 2014
 
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
$
595

$
592

$
(3
)
 
$
454

$
406

$
(48
)
 
$
1,049

$
998

$
(51
)
CDOs [1]
222

219

(3
)
 
1,842

1,789

(50
)
 
2,064

2,008

(53
)
CMBS
619

605

(14
)
 
567

540

(27
)
 
1,186

1,145

(41
)
Corporate
2,884

2,812

(72
)
 
1,241

1,105

(136
)
 
4,125

3,917

(208
)
Foreign govt./govt. agencies
1,173

1,139

(34
)
 
390

309

(81
)
 
1,563

1,448

(115
)
Municipal
1,089

1,053

(36
)
 
252

230

(22
)
 
1,341

1,283

(58
)
RMBS
1,292

1,274

(18
)
 
533

497

(36
)
 
1,825

1,771

(54
)
U.S. Treasuries
1,275

1,260

(15
)
 
33

28

(5
)
 
1,308

1,288

(20
)
Total fixed maturities, AFS
9,149

8,954

(195
)
 
5,312

4,904

(405
)
 
14,461

13,858

(600
)
Equity securities, AFS
100

94

(6
)
 
217

185

(32
)
 
317

279

(38
)
Total securities in an unrealized loss position
$
9,249

$
9,048

$
(201
)
 
$
5,529

$
5,089

$
(437
)
 
$
14,778

$
14,137

$
(638
)
 
December 31, 2013
 
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
$
893

$
888

$
(5
)
 
$
477

$
418

$
(59
)
 
$
1,370

$
1,306

$
(64
)
CDOs [1]
137

135

(2
)
 
1,933

1,874

(57
)
 
2,070

2,009

(59
)
CMBS
812

788

(24
)
 
610

576

(34
)
 
1,422

1,364

(58
)
Corporate
4,922

4,737

(185
)
 
1,225

1,064

(161
)
 
6,147

5,801

(346
)
Foreign govt./govt. agencies
2,961

2,868

(93
)
 
343

260

(83
)
 
3,304

3,128

(176
)
Municipal
3,150

2,994

(156
)
 
190

162

(28
)
 
3,340

3,156

(184
)
RMBS
2,046

2,008

(38
)
 
591

547

(44
)
 
2,637

2,555

(82
)
U.S. Treasuries
2,914

2,862

(52
)
 
33

26

(7
)
 
2,947

2,888

(59
)
Total fixed maturities, AFS
17,835

17,280

(555
)
 
5,402

4,927

(473
)
 
23,237

22,207

(1,028
)
Equity securities, AFS
196

188

(8
)
 
223

182

(41
)
 
419

370

(49
)
Total securities in an unrealized loss position
$
18,031

$
17,468

$
(563
)
 
$
5,625

$
5,109

$
(514
)
 
$
23,656

$
22,577

$
(1,077
)
[1]
Unrealized losses exclude the change in fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in net realized capital gains (losses).
Mortgage Loans
 
March 31, 2014
 
December 31, 2013
 
Amortized Cost [1]
Valuation Allowance
Carrying Value
 
Amortized Cost [1]
Valuation Allowance
Carrying Value
Total commercial mortgage loans
$
5,724

$
(17
)
$
5,707

 
$
5,665

$
(67
)
$
5,598

[1]
Amortized cost represents carrying value prior to valuation allowances, if any.
Valuation Allowance for Mortgage Loans
 
2014
2013
Balance, as of January 1
$
(67
)
$
(68
)
(Additions)/Reversals
—

(2
)
Deductions
50

2

Balance, as of March 31
$
(17
)
$
(68
)
Commercial Mortgage Loans Credit Quality
Commercial Mortgage Loans Credit Quality
 
March 31, 2014
 
December 31, 2013
Loan-to-value
Carrying Value
Avg. Debt-Service Coverage Ratio
 
Carrying Value
Avg. Debt-Service Coverage Ratio
Greater than 80%
$
95

0.96x
 
$
101

0.99x
65% - 80%
1,047

1.90x
 
1,195

1.82x
Less than 65%
4,565

2.49x
 
4,302

2.53x
Total commercial mortgage loans
$
5,707

2.35x
 
$
5,598

2.34x
Mortgage Loans by Region
Mortgage Loans by Region
 
March 31, 2014
 
December 31, 2013
 
Carrying Value
Percent of Total
 
Carrying Value
Percent of Total
East North Central
$
181

3.2
%
 
$
187

3.3
%
Middle Atlantic
408

7.1
%
 
409

7.3
%
Mountain
104

1.8
%
 
104

1.9
%
New England
383

6.7
%
 
353

6.3
%
Pacific
1,543

27.0
%
 
1,587

28.3
%
South Atlantic
1,025

18.0
%
 
899

16.1
%
West North Central
46

0.8
%
 
47

0.8
%
West South Central
338

5.9
%
 
338

6.0
%
Other [1]
1,679

29.5
%
 
1,674

30.0
%
Total mortgage loans
$
5,707

100.0
%
 
$
5,598

100.0
%
[1]
Primarily represents loans collateralized by multiple properties in various regions.
Mortgage Loans by Property Type
Mortgage Loans by Property Type
 
March 31, 2014
 
December 31, 2013
 
Carrying Value
Percent of Total
 
Carrying
Value
Percent of Total
Commercial
 
 
 
 
 
Agricultural
$
89

1.6
%
 
$
125

2.2
%
Industrial
1,721

30.1
%
 
1,718

30.7
%
Lodging
27

0.5
%
 
27

0.5
%
Multifamily
1,241

21.7
%
 
1,155

20.6
%
Office
1,373

24.1
%
 
1,278

22.8
%
Retail
1,104

19.3
%
 
1,140

20.4
%
Other
152

2.7
%
 
155

2.8
%
Total mortgage loans
$
5,707

100.0
%
 
$
5,598

100.0
%
Variable Interest Entities Primary Beneficiary
 
March 31, 2014
 
December 31, 2013
 
Total Assets
Total Liabilities [1]
Maximum Exposure to Loss [2]
 
Total Assets
Total Liabilities [1]
Maximum Exposure to Loss [2]
CDOs [3]
$
18

$
20

$
—

 
$
31

$
33

$
—

Investment funds [4]
167

—

175

 
164

—

173

Limited partnerships
3

—

3

 
4

—

4

Total
$
188

$
20

$
178

 
$
199

$
33

$
177

[1]
Included in other liabilities in the Company’s Condensed 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 Condensed Consolidated Balance Sheets.
[4]
Total assets included in fixed maturities, FVO, short-term investments, and equity, AFS in the Company’s Condensed Consolidated Balance Sheets.
GMWB reinsurance contracts
 
Notional Amount
 
Fair Value
 
March 31,
2014
December 31, 2013
 
March 31,
2014
December 31, 2013
Customized swaps
$
7,561

$
7,839

 
$
71

$
74

Equity swaps, options, and futures
3,888

4,237

 
32

44

Interest rate swaps and futures
3,975

6,615

 
(2
)
(77
)
Total
$
15,424

$
18,691

 
$
101

$
41
Macro hedge program
 
Notional Amount
 
Fair Value
 
March 31,
2014
December 31, 2013
 
March 31,
2014
December 31, 2013
Equity options and swaps
7,596

9,934

 
133

139

Total
$
7,596

$
9,934

 
$
133

$
139
Derivative Classification by Balance Sheet Location
 
Net Derivatives
 
Asset Derivatives
 
Liability Derivatives
 
Notional Amount
 
Fair Value
 
Fair Value
 
Fair Value
Hedge Designation/ Derivative Type
Mar. 31, 2014
Dec. 31, 2013
 
Mar. 31, 2014
Dec. 31, 2013
 
Mar. 31, 2014
Dec. 31, 2013
 
Mar. 31, 2014
Dec. 31, 2013
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
4,716

$
5,026

 
$
(49
)
$
(92
)
 
$
44

$
50

 
$
(93
)
$
(142
)
Foreign currency swaps
143

143

 
(7
)
(5
)
 
2

2

 
(9
)
(7
)
Total cash flow hedges
4,859

5,169

 
(56
)
(97
)
 
46

52

 
(102
)
(149
)
Fair value hedges
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
1,031

1,799

 
(25
)
(24
)
 
1

3

 
(26
)
(27
)
Total fair value hedges
1,031

1,799

 
(25
)
(24
)
 
1

3

 
(26
)
(27
)
Non-qualifying strategies
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps and futures
11,106

8,453

 
(502
)
(487
)
 
230

171

 
(732
)
(658
)
Foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps and forwards
247

258

 
(12
)
(9
)
 
6

6

 
(18
)
(15
)
Japan 3Win foreign currency swaps
1,571

1,571

 
(338
)
(354
)
 
—

—

 
(338
)
(354
)
Japanese fixed annuity hedging instruments
1,381

1,436

 
(2
)
(6
)
 
88

88

 
(90
)
(94
)
Credit contracts
 
 
 
 
 
 
 
 
 
 
 
Credit derivatives that purchase credit protection
550

938

 
(10
)
(15
)
 
1

1

 
(11
)
(16
)
Credit derivatives that assume credit risk [1]
1,724

1,886

 
22

33

 
26

36

 
(4
)
(3
)
Credit derivatives in offsetting positions
6,339

7,764

 
(5
)
(7
)
 
69

76

 
(74
)
(83
)
Equity contracts
 
 
 
 
 
 
 
 
 
 
 
Equity index swaps and options
362

358

 
(2
)
(1
)
 
19

19

 
(21
)
(20
)
Variable annuity hedge program
 
 
 
 
 
 
 
 
 
 
 
U.S. GMWB product derivatives [2]
21,195

21,512

 
(24
)
(36
)
 
—

—

 
(24
)
(36
)
U.S. GMWB reinsurance contracts
4,280

4,508

 
30

29

 
30

29

 
—

—

U.S. GMWB hedging instruments
15,424

18,691

 
101

41

 
278

333

 
(177
)
(292
)
U.S. macro hedge program
7,596

9,934

 
133

139

 
166

178

 
(33
)
(39
)
International program product derivatives [2]
353

366

 
4

6

 
4

6

 
—

—

International program hedging instruments
61,528

73,048

 
98

(33
)
 
542

866

 
(444
)
(899
)
Other
 
 
 
 
 
 
 
 
 
 
 
Contingent capital facility put option
500

500

 
16

17

 
16

17

 
—

—

Modified coinsurance reinsurance contracts
1,261

1,250

 
(19
)
67

 
—

67

 
(19
)
—

Total non-qualifying strategies
135,417

152,473

 
(510
)
(616
)
 
1,475

1,893

 
(1,985
)
(2,509
)
Total cash flow hedges, fair value hedges, and non-qualifying strategies
$
141,307

$
159,441

 
$
(591
)
$
(737
)
 
$
1,522

$
1,948

 
$
(2,113
)
$
(2,685
)
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available-for-sale
$
479

$
473

 
$
(4
)
$
(2
)
 
$
—

$
1

 
$
(4
)
$
(3
)
Other investments
53,415

53,219

 
249

442

 
674

909

 
(425
)
(467
)
Other liabilities
60,266

78,055

 
(806
)
(1,223
)
 
814

936

 
(1,620
)
(2,159
)
Consumer notes
9

9

 
(2
)
(2
)
 
—

—

 
(2
)
(2
)
Reinsurance recoverables
5,541

5,758

 
11

96

 
30

96

 
(19
)
—

Other policyholder funds and benefits payable
21,597

21,927

 
(39
)
(48
)
 
4

6

 
(43
)
(54
)
Total derivatives
$
141,307

$
159,441

 
$
(591
)
$
(737
)
 
$
1,522

$
1,948

 
$
(2,113
)
$
(2,685
)
[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
erivatives 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)
 
Three Months Ended March 31,
 
Three Months Ended March 31,
 
2014
2013
 
2014
2013
Interest rate swaps
$
44

$
(71
)
 
$
(1
)
$
—

Foreign currency swaps
(1
)
1

 
—

—

Total
$
43

$
(70
)
 
$
(1
)
$
—

Derivatives in Cash Flow Hedging Relationships
 
 
Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
 
Three Months Ended March 31,
 
Location
2014
2013
Interest rate swaps
Net realized capital gain/(loss)
$
1

$
73

Interest rate swaps
Net investment income
23

24

Foreign currency swaps
Net realized capital gain/(loss)
—

(3
)
Total
 
$
24

$
94
Derivatives in Fair Value Hedging Relationships
rivatives in Fair-Value Hedging Relationships
 
Gain or (Loss) Recognized in Income [1]
 
Three Months Ended March 31,
 
2014
 
2013
 
Derivative
Hedge Item
 
Derivative
Hedge Item
Interest rate swaps
 
 
 
 
 
Net realized capital gain/(loss)
$
(2
)
$
2

 
$
6

$
(8
)
Foreign currency swaps
 
 
 
 
 
Net realized capital gain/(loss)
—

—

 
(2
)
2

Benefits, losses and loss adjustment expenses
—

—

 
(1
)
1

Total
$
(2
)
$
2

 
$
3

$
(5
)
[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
erivatives Used in Non-Qualifying Strategies
Gain or (Loss) Recognized within Net Realized Capital Gains and Losses
 
Three Months Ended March 31,
 
2014
2013
Interest rate contracts
 
 
Interest rate swaps and forwards
$
(56
)
$
18

Foreign exchange contracts
 
 
Foreign currency swaps and forwards
1

2

Japan 3Win foreign currency swaps [1]
15

(130
)
Japanese fixed annuity hedging instruments [2]
12

(101
)
Credit contracts
 
 
Credit derivatives that purchase credit protection
(4
)
(9
)
Credit derivatives that assume credit risk
(1
)
14

Equity contracts
 
 
Equity index swaps and options
—

(20
)
Variable annuity hedge program
 
 
U.S. GMWB product derivatives
36

456

U.S. GMWB reinsurance contracts
(4
)
(60
)
U.S. GMWB hedging instruments
(17
)
(349
)
U.S. macro hedge program
(10
)
(85
)
International program product derivatives
(1
)
8

International program hedging instruments
(31
)
(179
)
Other
 
 
Contingent capital facility put option
(1
)
(2
)
Modified coinsurance reinsurance contracts
(19
)
5

Total [3]
$
(80
)
$
(432
)
[1]
The associated liability is adjusted for changes in foreign exchange spot rates through realized capital gains and was $(28) and $116 for the three months ended March 31, 2014 and 2013, respectively.
[2]
The associated liability is adjusted for changes in foreign exchange spot rates through realized capital gains and was $(30) and $151 for the three months ended March 31, 2014 and 2013, respectively.
[3]
Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements.
F
Credit Derivatives Description
As of March 31, 2014
 
 
 
 
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
$
466

$
7

3 years
Corporate Credit/
Foreign Gov.
A-
$
282

$
(7
)
Below investment grade risk exposure
24

—

Less than 1 year
Corporate Credit
CCC
24

—

Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
3,468

50

3 years
Corporate Credit
BBB+
2,343

(34
)
Below investment grade risk exposure
60

4

5 years
Corporate Credit
B
—

—

Investment grade risk exposure
331

(5
)
3 years
CMBS Credit
AA-
326

6

Below investment grade risk exposure
195

(28
)
3 years
CMBS Credit
B
195

28

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
350

338

3 years
Corporate Credit
A-
—

—

Total [5]
$
4,894

$
366

 
 
 
$
3,170

$
(7
)
As of December 31, 2013
 
 
 
 
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
$
1,259

$
8

1 year
Corporate Credit/
Foreign Gov.
A-
$
1,066

$
(9
)
Below investment grade risk exposure
24

—

1 year
Corporate Credit
CCC
24

(1
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
3,447

50

3 years
Corporate Credit
BBB
2,270

(35
)
Below investment grade risk exposure
166

15

5 years
Corporate Credit
BB-
—

—

Investment grade risk exposure
327

(7
)
3 years
CMBS Credit
A
327

7

Below investment grade risk exposure
195

(31
)
3 years
CMBS Credit
B-
195

31

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
350

339

3 years
Corporate Credit
BBB+
—

—

Total [5]
$
5,768

$
374

 
 
 
$
3,882

$
(7
)
[1]
The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, Fitch and Morningstar. 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. These derivatives are governed by agreements and clearing house rules and applicable law which include collateral posting requirements. There is no additional 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 $4.1 billion and $4.1 billion as of March 31, 2014 and December 31, 2013, 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.
[5]
Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements.

Derivative Collateral Arrangements
The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of March 31, 2014 and December 31, 2013 the Company pledged securities collateral associated with derivative instruments with a fair value of $1.1 billion and $1.3 billion, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties have the right to sell or re-pledge these securities. The Company also pledged cash collateral associated with derivative instruments with a fair value of $107 and $347, respectively, as of March 31, 2014 and December 31, 2013 which have been primarily included within other assets on the Company's Condensed Consolidated Balance Sheets.
As of March 31, 2014 and December 31, 2013 the Company accepted cash collateral associated with derivative instruments with a fair value of $235 and $180, respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other liabilities. The Company also accepted securities collateral as of March 31, 2014 and December 31, 2013 of $184 and $243, respectively, of which the Company has the ability to sell or repledge $136 and $191, respectively. As of March 31, 2014 and December 31, 2013 the fair value of repledged securities totaled $0 and $39, respectively, and the Company did not sell any securities. In addition, as of March 31, 2014 and December 31, 2013 non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.
International [Member]
  
Derivative [Line Items]  
Notional and Fair Value for International Program Hedging Instruments [Table Text Block] [Table Text Block]
 
Notional Amount
 
Fair Value
 
March 31,
2014
December 31, 2013
 
March 31,
2014
December 31, 2013
Credit derivatives
$
350

$
350

 
$
—

$
5

Currency forwards [1]
15,474

13,410

 
44

(60
)
Currency options
5,432

12,066

 
(12
)
(54
)
Equity futures
473

999

 
—

—

Equity options
2,912

3,051

 
(30
)
(30
)
Equity swaps
2,120

4,269

 
(50
)
(119
)
Interest rate futures
551

952

 
—

—

Interest rate swaps and swaptions
34,216

37,951

 
146

225

Total
$
61,528

$
73,048

 
$
98

$
(33
)
[1]
As of March 31, 2014 and December 31, 2013 net notional amounts are $(0.9) billion and $(1.8) billion, respectively, which include $7.3 billion and $5.8 billion, respectively, related to long positions and $8.2 billion and $7.6 billion, respectively, related to short positions.