Investments and Derivative Instruments Level 3 (Tables)



	For the years ended December 31,
(Before-tax)	2014			2013			2012
Fixed maturities [1]	$	2,420		$	2,552		$	3,299
Equity securities, AFS	38			30			36
Mortgage loans	265			260			334
Policy loans	80			83			119
Limited partnerships and other alternative investments	294			287			196
Other investments [2]	179			167			248
Investment expenses	(122		)	(115		)	(105		)
Total net investment income	$	3,154		$	3,264		$	4,127


[1]	Includes net investment income on short-term investments.


[2]	Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting.

Net Realized Capital Gains (Losses)



	For the years ended December 31,
(Before-tax)	2014			2013			2012
Gross gains on sales [1]	$	527		$	2,313		$	801
Gross losses on sales	(250		)	(659		)	(420		)
Net OTTI losses recognized in earnings [2]	(59		)	(73		)	(349		)
Valuation allowances on mortgage loans	(4		)	(1		)	14
Periodic net coupon settlements on credit derivatives	1			(8		)	(18		)
Results of variable annuity hedge program
GMWB derivatives, net	5			262			519
Macro hedge program	(11		)	(234		)	(340		)
Total results of variable annuity hedge program	(6		)	28			179
Other, net [3]	(193		)	198			290
Net realized capital gains	$	16		$	1,798		$	497


[1]	Includes $1.5 billion of gains relating to the sales of the Retirement Plans and Individual Life businesses in the year ended December 31, 2013.


[2]	Includes $177 of intent-to-sell impairments relating to the Retirement Plans and Individual Life businesses sold for the year ended December 31, 2012.

[3]

Primarily consists of changes in the value of non-qualifying derivatives, including interest rate derivatives used to manage the risk of a rise in interest rates and manage duration, transactional foreign currency revaluation gains (losses) on the Japan fixed payout annuity liabilities assumed from HLIKK and gains (losses) on non-qualifying derivatives used to hedge the foreign currency exposure of the liabilities. For the years ended December 31, 2014, 2013, and 2012, gains (losses) from transactional foreign currency revaluation of the Japan fixed payout annuity liabilities were $116, $250, and $189, respectively. For the years ended December 31, 2014, 2013, and 2012, gains (losses) on instruments used to hedge the foreign currency exposure on the fixed payout annuities were $(148), $(268), and $(300), respectively. Also includes $71 and $110 of gains relating to the sales of the Retirement Plans and Individual Life businesses for the years ended December 31, 2013 and 2012, respectively.



	For the years ended December 31,
	2014			2013			2012
Fixed maturities, AFS
Sale proceeds	$	22,923		$	39,225		$	41,442
Gross gains [1]	456			2,143			825
Gross losses	(182		)	(645		)	(399		)
Equity securities, AFS
Sale proceeds	$	354		$	274		$	295
Gross gains	22			96			34
Gross losses	(20		)	(6		)	(20		)



	For the years ended December 31,
(Before-tax)	2014			2013			2012
Balance as of beginning of period	$	(552	)	$	(1,013	)	$	(1,676	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	(15		)	(19		)	(28		)
Securities previously impaired	(22		)	(13		)	(20		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	138			469			700
Securities the Company made the decision to sell or more likely than not will be required to sell	—			2			—
Securities due to an increase in expected cash flows	27			22			11
Balance as of end of period	$	(424	)	$	(552	)	$	(1,013	)


[1]	These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations.



	December 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	$	2,470	$	39	$	(37	)	$	2,472	$	(1	)	$	2,404	$	25	$	(64	)	$	2,365	$	(2	)
CDOs [2]	2,776		98		(36		)	2,841		—			2,340		108		(59		)	2,387		—
CMBS	4,235		196		(16		)	4,415		(6		)	4,288		216		(58		)	4,446		(6		)
Corporate	25,188		2,382		(211		)	27,359		(3		)	27,013		1,823		(346		)	28,490		(7		)
Foreign govt./govt. agencies	1,592		73		(29		)	1,636		—			4,228		52		(176		)	4,104		—
Municipal	11,735		1,141		(5		)	12,871		—			11,932		425		(184		)	12,173		—
RMBS	3,815		122		(19		)	3,918		(1		)	4,639		90		(82		)	4,647		(4		)
U.S. Treasuries	3,551		326		(5		)	3,872		—			3,797		7		(59		)	3,745		—
Total fixed maturities, AFS	55,362		4,377		(358		)	59,384		(11		)	60,641		2,746		(1,028		)	62,357		(19		)
Equity securities, AFS [3]	676		50		(27		)	699		—			850		67		(49		)	868		—
Total AFS securities	$	56,038	$	4,427	$	(385	)	$	60,083	$	(11	)	$	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 December 31, 2014 and 2013.


[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]	As of December 31, 2014, excludes equity securities, FVO, with a cost of $351 and fair value of $348, which are included in equity securities, AFS on the Consolidated Balance Sheets.



	December 31, 2014				December 31, 2013
Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	2,141	$	2,168	$	2,195	$	2,228
Over one year through five years	11,264		11,827		11,930		12,470
Over five years through ten years	8,802		9,226		10,814		11,183
Over ten years	19,859		22,517		22,031		22,631
Subtotal	42,066		45,738		46,970		48,512
Mortgage-backed and asset-backed securities	13,296		13,646		13,671		13,845
Total fixed maturities, AFS	$	55,362	$	59,384	$	60,641	$	62,357



	December 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	$	897	$	893	$	(4	)	$	473	$	440	$	(33	)	$	1,370	$	1,333	$	(37	)
CDOs [1]	748		743		(5		)	1,489		1,461		(31		)	2,237		2,204		(36		)
CMBS	230		227		(3		)	319		306		(13		)	549		533		(16		)
Corporate	3,082		2,980		(102		)	1,177		1,068		(109		)	4,259		4,048		(211		)
Foreign govt./govt. agencies	363		349		(14		)	227		212		(15		)	590		561		(29		)
Municipal	74		73		(1		)	86		82		(4		)	160		155		(5		)
RMBS	320		318		(2		)	433		416		(17		)	753		734		(19		)
U.S. Treasuries	432		431		(1		)	361		357		(4		)	793		788		(5		)
Total fixed maturities, AFS	6,146		6,014		(132		)	4,565		4,342		(226		)	10,711		10,356		(358		)
Equity securities, AFS [2]	172		160		(12		)	102		87		(15		)	274		247		(27		)
Total securities in an unrealized loss position	$	6,318	$	6,174	$	(144	)	$	4,667	$	4,429	$	(241	)	$	10,985	$	10,603	$	(385	)



	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 [2]	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. Subsequent changes in fair value are recorded in net realized capital gains (losses).

Mortgage Loans



	December 31, 2014							December 31, 2013
	Amortized Cost [1]		Valuation Allowance			Carrying Value		Amortized Cost [1]		Valuation Allowance			Carrying Value
Total commercial mortgage loans	$	5,574	$	(18	)	$	5,556	$	5,665	$	(67	)	$	5,598


[1]	Amortized cost represents carrying value prior to valuation allowances, if any.



	For the years ended December 31,
	2014			2013			2012
Balance as of January 1	$	(67	)	$	(68	)	$	(102	)
(Additions)/Reversals	(4		)	(2		)	14
Deductions	53			3			20
Balance as of December 31	$	(18	)	$	(67	)	$	(68	)



Commercial Mortgage Loans Credit Quality
	December 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%	$	53	1.07x	$	101	0.99x
65% - 80%	789		1.75x	1,195		1.82x
Less than 65%	4,714		2.66x	4,302		2.53x
Total commercial mortgage loans	$	5,556	2.51x	$	5,598	2.34x



Mortgage Loans by Region
	December 31, 2014				December 31, 2013
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	211	3.8	%	$	187	3.3	%
Middle Atlantic	468		8.4	%	409		7.3	%
Mountain	88		1.6	%	104		1.9	%
New England	381		6.9	%	353		6.3	%
Pacific	1,607		29.0	%	1,587		28.3	%
South Atlantic	1,019		18.3	%	899		16.1	%
West North Central	44		0.8	%	47		0.8	%
West South Central	302		5.4	%	338		6.0	%
Other [1]	1,436		25.8	%	1,674		30.0	%
Total mortgage loans	$	5,556	100.0	%	$	5,598	100.0	%


[1]	Primarily represents loans collateralized by multiple properties in various regions.



Mortgage Loans by Property Type
	December 31, 2014				December 31, 2013
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Agricultural	$	46	0.8	%	$	125	2.2	%
Industrial	1,476		26.6	%	1,718		30.7	%
Lodging	26		0.5	%	27		0.5	%
Multifamily	1,190		21.4	%	1,155		20.6	%
Office	1,517		27.3	%	1,278		22.8	%
Retail	1,147		20.6	%	1,140		20.4	%
Other	154		2.8	%	155		2.8	%
Total mortgage loans	$	5,556	100.0	%	$	5,598	100.0	%



	December 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]	$	5	$	5	$	—	$	31	$	33	$	—
Investment funds [4]	238		—		243		164		—		173
Limited partnerships and other alternative investments	3		1		2		4		—		4
Total	$	246	$	6	$	245	$	199	$	33	$	177


[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 and short-term investments, or cash in the Company’s Consolidated Balance Sheets.


[4]	Total assets included in fixed maturities, FVO, short-term investments, and equity, AFS in the Company's Consolidated Balance Sheets.



	Notional Amount				Fair Value
	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013
Customized swaps	$	7,041	$	7,839	$	124	$	74
Equity swaps, options, and futures	3,761		4,237		39		44
Interest rate swaps and futures	3,640		6,615		11		(77		)
Total	$	14,442	$	18,691	$	174	$	41



	Notional Amount				Fair Value
	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013
Equity options and swaps	$	5,983	$	9,934	$	141	$	139
Foreign currency options	400		—		—		—
Total	$	6,383	$	9,934	$	141	$	139



	Net Derivatives										Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value						Fair Value				Fair Value
Hedge Designation/ Derivative Type	Dec 31, 2014		Dec 31, 2013		Dec 31, 2014			Dec 31, 2013			Dec 31, 2014		Dec 31, 2013		Dec 31, 2014			Dec 31, 2013
Cash flow hedges
Interest rate swaps	$	3,999	$	5,026	$	44		$	(92	)	$	52	$	50	$	(8	)	$	(142	)
Foreign currency swaps	143		143		(19		)	(5		)	3		2		(22		)	(7		)
Total cash flow hedges	4,142		5,169		25			(97		)	55		52		(30		)	(149		)
Fair value hedges
Interest rate swaps	32		1,799		—			(24		)	—		3		—			(27		)
Total fair value hedges	32		1,799		—			(24		)	—		3		—			(27		)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps, caps, floors, and futures	15,254		8,453		(512		)	(487		)	536		171		(1,048		)	(658		)
Foreign exchange contracts
Foreign currency swaps and forwards	177		258		1			(9		)	3		6		(2		)	(15		)
Japan fixed payout annuity hedge	1,319		1,571		(427		)	(354		)	—		—		(427		)	(354		)
Japanese fixed annuity hedging instruments [1]	—		1,436		—			(6		)	—		88		—			(94		)
Credit contracts
Credit derivatives that purchase credit protection	595		938		(6		)	(15		)	4		1		(10		)	(16		)
Credit derivatives that assume credit risk [2]	1,487		1,886		3			33			14		36		(11		)	(3		)
Credit derivatives in offsetting positions	5,343		7,764		(3		)	(7		)	53		76		(56		)	(83		)
Equity contracts
Equity index swaps and options	635		358		2			(1		)	31		19		(29		)	(20		)
Variable annuity hedge program
GMWB product derivative [3]	17,908		21,512		(139		)	(36		)	—		—		(139		)	(36		)
GMWB reinsurance contracts	3,659		4,508		56			29			56		29		—			—
GMWB hedging instruments	14,442		18,691		174			41			289		333		(115		)	(292		)
Macro hedge program	6,383		9,934		141			139			180		178		(39		)	(39		)
International program product derivatives [1]	—		366		—			6			—		6		—			—
International program hedging instruments [1]	—		73,048		—			(33		)	—		866		—			(899		)
Other
Contingent capital facility put option	500		500		12			17			12		17		—			—
Modified coinsurance reinsurance contracts	974		1,250		34			67			34		67		—			—
Total non-qualifying strategies	68,676		152,473		(664		)	(616		)	1,212		1,893		(1,876		)	(2,509		)
Total cash flow hedges, fair value hedges, and non-qualifying strategies	$	72,850	$	159,441	$	(639	)	$	(737	)	$	1,267	$	1,948	$	(1,906	)	$	(2,685	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	454	$	473	$	2		$	(2	)	$	2	$	1	$	—		$	(3	)
Other investments	23,014		53,219		364			442			624		909		(260		)	(467		)
Other liabilities	26,791		78,064		(930		)	(1,225		)	551		936		(1,481		)	(2,161		)
Reinsurance recoverables	4,633		5,758		90			96			90		96		—			—
Other policyholder funds and benefits payable	17,958		21,927		(165		)	(48		)	—		6		(165		)	(54		)
Total derivatives	$	72,850	$	159,441	$	(639	)	$	(737	)	$	1,267	$	1,948	$	(1,906	)	$	(2,685	)


[1]	Represents hedge programs formerly associated with the Japan variable and fixed annuity products which were terminated due to the sale of HLIKK during 2014. For further information on the sale, see Note 2 - Business Dispositions of Notes to the Consolidated Financial Statements.


[2]	The derivative instruments related to this strategy are held for other investment purposes.


[3]	These derivatives are embedded within liabilities and are not held for risk management purposes.

As of December 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	$	1,175	$	969	$	364	$	(158	)		$	109	$	97

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	$	(1,741	)	$	(799	)	$	(927	)	$	(15	)	$	(1,079	)	$	137



	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



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)
	2014			2013			2012			2014		2013			2012
Interest rate swaps	$	150		$	(315	)	$	120		$	2	$	(3	)	$	—
Foreign currency swaps	(10		)	12			(31		)	—		—			—
Total	$	140		$	(303	)	$	89		$	2	$	(3	)	$	—



Derivatives in Cash Flow Hedging Relationships
		Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Location	2014			2013		2012
Interest rate swaps	Net realized capital gain/(loss)	$	(1	)	$	91	$	90
Interest rate swaps	Net investment income	87			97		140
Foreign currency swaps	Net realized capital gain/(loss)	(13		)	4		(6		)
Total		$	73		$	192	$	224



Derivatives in Fair Value Hedging Relationships
	Gain (Loss) Recognized in Income [1]
	2014					2013						2012
	Derivative			Hedged Item		Derivative			Hedged Item			Derivative			Hedged Item
Interest rate swaps
Net realized capital gains (losses)	$	(3	)	$	1	$	7		$	(12	)	$	(4	)	$	2
Foreign currency swaps
Net realized capital gains (losses)	—			—		1			(1		)	(7		)	7
Benefits, losses and loss adjustment expenses	—			—		(2		)	2			(6		)	6
Total	$	(3	)	$	1	$	6		$	(11	)	$	(17	)	$	15


[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



Non-qualifying Strategies
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
	December 31,
	2014			2013			2012
Interest rate contracts
Interest rate swaps, caps, floors, and forwards	$	(172	)	$	50		$	22
Foreign exchange contracts
Foreign currency swaps and forwards	6			5			19
Japan fixed payout annuity hedge [1]	(148		)	(268		)	(300		)
Credit contracts
Credit derivatives that purchase credit protection	(10		)	(38		)	(61		)
Credit derivatives that assume credit risk	16			71			291
Equity contracts
Equity index swaps and options	3			(33		)	(39		)
Variable annuity hedge program
GMWB product derivative	(2		)	1,306			1,430
GMWB reinsurance contracts	4			(192		)	(280		)
GMWB hedging instruments	3			(852		)	(631		)
Macro hedge program	(11		)	(234		)	(340		)
Other
Contingent capital facility put option	(6		)	(7		)	(6		)
Modified coinsurance reinsurance contracts	(34		)	67			—
Derivative instruments formerly associated with Japan [3]	(2		)	—			—
Total [2]	$	(353	)	$	(125	)	$	105


[1]	The associated liability is adjusted for changes in spot rates through realized capital gains and was $116, $250 and $189 for the years ended December 31, 2014, 2013 and 2012, respectively, which is not presented in this table


[2]	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.


[3]	These amounts relate to the termination of the hedging program associated with the Japan variable annuity product due to the sale of HLIKK.

The following tables present the notional amount, fair value, weighted average years to maturity, underlying referenced credit obligation type and average credit ratings, and offsetting notional amounts and fair value for credit derivatives in which the Company is assuming credit risk as of December 31, 2014 and 2013.



As of December 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	$	320	$	5		2 years	Corporate Credit/ Foreign Gov.	BBB+	$	247	$	(5	)
Below investment grade risk exposure	29		—			2 years	Corporate Credit	BB	29		(1		)
Basket credit default swaps [4]
Investment grade risk exposure	2,546		33			3 years	Corporate Credit	BBB	1,973		(25		)
Below investment grade risk exposure	38		(1		)	12 years	Corporate Credit	D	—		—
Investment grade risk exposure	722		(12		)	6 years	CMBS Credit	AA+	269		3
Below investment grade risk exposure	154		(22		)	2 years	CMBS Credit	CCC+	154		23
Embedded credit derivatives
Investment grade risk exposure	350		342			2 years	Corporate Credit	A	—		—
Total [5]	$	4,159	$	345					$	2,672	$	(5	)



As of December 31, 2013
							Unifying 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, 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 $3.5 billion and $4.1 billion as of December 31, 2014 and 2013, respectively, of standard market indices of diversified portfolios of corporate and CMBS 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 -