Investments and Derivative Instruments Level 3 (Tables)

3 Months Ended

Mar. 31, 2015



	Three Months Ended March 31,
(Before tax)	2015			2014
Gross gains on sales	$	197		$	183
Gross losses on sales	(148		)	(129		)
Net OTTI losses recognized in earnings	(12		)	(22		)
Valuation allowances on mortgage loans	(3		)	—
Periodic net coupon settlements on credit derivatives	1			(1		)
Results of variable annuity hedge program
GMWB derivatives, net	1			15
Macro hedge program	(4		)	(10		)
Total results of variable annuity hedge program	(3		)	5
Other, net [1]	(27		)	(71		)
Net realized capital gains	$	5		$	(35	)

[1]

Primarily consists of changes in the value of non-qualifying derivatives, 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 three months ended March 31, 2015 and 2014, gains (losses) from transactional foreign currency revaluation of the Japan fixed payout annuity liabilities were $0 and $(28), respectively. For the three months ended March 31, 2015 and 2014, gains (losses) on instruments used to hedge the foreign currency exposure on the fixed payout annuities were $(14) and $15, respectively.

Other-Than-Temporary Impairment Losses

Recognition and Presentation of Other-Than-Temporary Impairments

The Company deems bonds and certain equity securities with debt-like characteristics (collectively “debt securities”) to be other-than-temporarily impaired (“impaired”) if a security meets the following conditions: a) the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value, or b) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value, a charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. For those impaired debt securities which do not meet the first condition and for which the Company does not expect to recover the entire amortized cost basis, the difference between the security’s amortized cost basis and the fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit impairment, which is recorded in OCI. Generally, the Company determines a security’s credit impairment as the difference between its amortized cost basis and its best estimate of expected future cash flows discounted at the security’s effective yield prior to impairment. The remaining non-credit impairment is the difference between the security’s fair value and the Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment, which typically represents current market liquidity and risk premiums. The previous amortized cost basis less the impairment recognized in net realized capital losses becomes the security’s new cost basis. The Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary.

The Company’s evaluation of whether a credit impairment exists for debt securities includes but is not limited to, the following factors: (a) changes in the financial condition of the security’s underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) changes in the financial condition, credit rating and near-term prospects of the issuer, (d) the extent to which the fair value has been less than the amortized cost of the security and (e) the payment structure of the security. The Company’s best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the security. The Company’s best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, and loan-to-value ("LTV") ratios. In addition, for structured securities, the Company considers factors including, but not limited to, average cumulative collateral loss rates that vary by vintage year, commercial and residential property value declines that vary by property type and location and commercial real estate delinquency levels. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral such as changes in the projections of the underlying property value estimates.

For equity securities where the decline in the fair value is deemed to be other-than-temporary, a charge is recorded in net realized capital losses equal to the difference between the fair value and cost basis of the security. The previous cost basis less the impairment becomes the security’s new cost basis. The Company asserts its intent and ability to retain those equity securities deemed to be temporarily impaired until the price recovers. Once identified, these securities are systematically restricted from trading unless approved by investment and accounting professionals. The investment and accounting professionals will only authorize the sale of these securities based on predefined criteria that relate to events that could not have been reasonably foreseen. Examples of the criteria include, but are not limited to, the deterioration in the issuer’s financial condition, security price declines, a change in regulatory requirements or a major business combination or major disposition.

The primary factors considered in evaluating whether an impairment exists for an equity security include, but are not limited to: (a) the length of time and extent to which the fair value has been less than the cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on preferred stock dividends and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery.

Impairments for the three months ended March 31, 2015 and 2014 were $12 and $22, respectively. Impairments for the three months ended March 31, 2015 primarily consisted of securities in an unrealized loss which the Company had the intent-to-sell. Impairments for the three months ended March 31, 2014 primarily consisted of credit impairments caused by issuer specific deterioration.

The following table presents a roll-forward of the Company’s cumulative credit impairments on debt securities held.



	Three Months Ended March 31,
(Before-tax)	2015			2014
Balance as of beginning of period	$	(424	)	$	(552	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	(3		)	(7		)
Securities previously impaired	—			(11		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	4			33
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	9			6
Balance as of end of period	$	(412	)	$	(531	)


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

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

Available-for-Sale Securities

The following table presents the Company’s AFS securities by type.



	March 31, 2015												December 31, 2014
	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	$	2,997	$	41	$	(34	)	$	3,004	$	—		$	2,470	$	39	$	(37	)	$	2,472	$	(1	)
CDOs [2]	2,891		115		(22		)	2,982		—			2,776		98		(36		)	2,841		—
CMBS	4,445		223		(16		)	4,652		(7		)	4,235		196		(16		)	4,415		(6		)
Corporate	24,698		2,558		(137		)	27,119		(6		)	25,188		2,382		(211		)	27,359		(3		)
Foreign govt./govt. agencies	1,310		69		(14		)	1,365		—			1,592		73		(29		)	1,636		—
Municipal	11,656		1,189		(3		)	12,842		—			11,735		1,141		(5		)	12,871		—
RMBS	3,963		132		(17		)	4,078		(1		)	3,815		122		(19		)	3,918		(1		)
U.S. Treasuries	4,144		371		(2		)	4,513		—			3,551		326		(5		)	3,872		—
Total fixed maturities, AFS	56,104		4,698		(245		)	60,555		(14		)	55,362		4,377		(358		)	59,384		(11		)
Equity securities, AFS [3]	726		48		(28		)	746		—			676		50		(27		)	699		—
Total AFS securities	$	56,830	$	4,746	$	(273	)	$	61,301	$	(14	)	$	56,038	$	4,427	$	(385	)	$	60,083	$	(11	)


[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, 2015 and December 31, 2014.


[2]	Gross unrealized gains (losses) exclude the fair value of bifurcated, embedded derivative features of certain securities. Subsequent changes in value are recorded in net realized capital gains (losses).


[3]	Excludes equity securities, FVO, with a cost and fair value of $403 and $402, respectively, as of March 31, 2015, and $351 and $348, respectively, as of December 31, 2014.

Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents the Company’s fixed maturities, AFS, by contractual maturity year.



	March 31, 2015				December 31, 2014
Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,832	$	1,856	$	2,141	$	2,168
Over one year through five years	11,883		12,446		11,264		11,827
Over five years through ten years	8,778		9,294		8,802		9,226
Over ten years	19,315		22,243		19,859		22,517
Subtotal	41,808		45,839		42,066		45,738
Mortgage-backed and asset-backed securities	14,296		14,716		13,296		13,646
Total fixed maturities, AFS	$	56,104	$	60,555	$	55,362	$	59,384

Unrealized Loss Aging on AFS Securities [Table Text Block]



	March 31, 2015
	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	$	736	$	735	$	(1	)	$	416	$	383	$	(33	)	$	1,152	$	1,118	$	(34	)
CDOs [1]	593		591		(2		)	1,341		1,319		(20		)	1,934		1,910		(22		)
CMBS	233		230		(3		)	192		179		(13		)	425		409		(16		)
Corporate	2,086		2,022		(64		)	710		637		(73		)	2,796		2,659		(137		)
Foreign govt./govt. agencies	251		244		(7		)	118		111		(7		)	369		355		(14		)
Municipal	169		167		(2		)	33		32		(1		)	202		199		(3		)
RMBS	717		714		(3		)	277		263		(14		)	994		977		(17		)
U.S. Treasuries	245		244		(1		)	62		61		(1		)	307		305		(2		)
Total fixed maturities, AFS	5,030		4,947		(83		)	3,149		2,985		(162		)	8,179		7,932		(245		)
Equity securities, AFS [2]	198		185		(13		)	108		93		(15		)	306		278		(28		)
Total securities in an unrealized loss position	$	5,228	$	5,132	$	(96	)	$	3,257	$	3,078	$	(177	)	$	8,485	$	8,210	$	(273	)



	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	)


[1]	Unrealized losses exclude the change in fair value of bifurcated embedded derivative features of certain securities, for which changes in fair value are recorded in net realized capital gains (losses).

Mortgage Loans [Table Text Block]



	March 31, 2015							December 31, 2014
	Amortized Cost [1]		Valuation Allowance			Carrying Value		Amortized Cost [1]		Valuation Allowance			Carrying Value
Total commercial mortgage loans	$	5,718	$	(21	)	$	5,697	$	5,574	$	(18	)	$	5,556


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

Valuation Allowance for Mortgage Loans [Table Text Block]



	2015			2014
Balance, as of January 1	$	(18	)	$	(67	)
(Additions)/Reversals	(3		)	—
Deductions	—			50
Balance, as of March 31	$	(21	)	$	(17	)

Commercial Mortgage Loans Credit Quality [Table Text Block]

The following table presents the carrying value of the Company’s commercial mortgage loans by LTV and DSCR.



Commercial Mortgage Loans Credit Quality
	March 31, 2015			December 31, 2014
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	49	1.12x	$	53	1.07x
65% - 80%	928		1.73x	789		1.75x
Less than 65%	4,720		2.69x	4,714		2.66x
Total commercial mortgage loans	$	5,697	2.51x	$	5,556	2.51x

Mortgage Loans by Region [Table Text Block]

The following tables present the carrying value of the Company’s mortgage loans by region and property type.



Mortgage Loans by Region
	March 31, 2015				December 31, 2014
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	231	4.1	%	$	211	3.8	%
Middle Atlantic	452		7.9	%	468		8.4	%
Mountain	88		1.5	%	88		1.6	%
New England	381		6.7	%	381		6.9	%
Pacific	1,646		28.9	%	1,607		29.0	%
South Atlantic	1,104		19.4	%	1,019		18.3	%
West North Central	44		0.8	%	44		0.8	%
West South Central	319		5.6	%	302		5.4	%
Other [1]	1,432		25.1	%	1,436		25.8	%
Total mortgage loans	$	5,697	100.0	%	$	5,556	100.0	%


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

Mortgage Loans by Property Type [Table Text Block]



Mortgage Loans by Property Type
	March 31, 2015				December 31, 2014
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Agricultural	$	46	0.8	%	$	46	0.8	%
Industrial	1,465		25.7	%	1,476		26.6	%
Lodging	26		0.5	%	26		0.5	%
Multifamily	1,267		22.2	%	1,190		21.4	%
Office	1,538		27.0	%	1,517		27.3	%
Retail	1,204		21.1	%	1,147		20.6	%
Other	151		2.7	%	154		2.8	%
Total mortgage loans	$	5,697	100.0	%	$	5,556	100.0	%

Schedule of Variable Interest Entities [Table Text Block]



	March 31, 2015						December 31, 2014
	Total Assets		Total Liabilities [1]		Maximum Exposure to Loss [2]		Total Assets		Total Liabilities [1]		Maximum Exposure to Loss [2]
CDOs [3]	$	5	$	5	$	—	$	5	$	5	$	—
Investment funds [4]	232		—		235		238		—		243
Limited partnerships and other alternative investments	2		—		2		3		1		2
Total	$	239	$	5	$	237	$	246	$	6	$	245


[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 cash in the Company’s Condensed Consolidated Balance Sheets.


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

Derivative Instruments [Abstract]

Notional and Fair Value for GMWB Hedging Instruments [Table Text Block]



	Notional Amount				Fair Value
	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Customized swaps	$	6,806	$	7,041	$	144	$	124
Equity swaps, options, and futures	1,803		3,761		11		39
Interest rate swaps and futures	3,570		3,640		26		11
Total	$	12,179	$	14,442	$	181	$	174

Notional and Fair Value for Macro Hedge Program [Table Text Block]

Macro hedge program

The Company utilizes equity options, swaps, futures, and foreign currency options to partially hedge against a decline in the equity markets and the resulting statutory surplus and capital impact primarily arising from the guaranteed minimum death benefit ("GMDB") and GMWB obligations. The following table presents notional and fair value for the macro hedge program.



	Notional Amount				Fair Value
	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Equity swaps, options, and futures	7,342		5,983		187		141
Foreign currency options	400		400		—		—
Total	$	7,742	$	6,383	$	187	$	141

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]



	Net Derivatives										Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value						Fair Value				Fair Value
Hedge Designation/ Derivative Type	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2015			Dec. 31, 2014			Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2015			Dec. 31, 2014
Cash flow hedges
Interest rate swaps	$	4,001	$	3,999	$	100		$	44		$	101	$	52	$	(1	)	$	(8	)
Foreign currency swaps	143		143		(27		)	(19		)	6		3		(33		)	(22		)
Total cash flow hedges	4,144		4,142		73			25			107		55		(34		)	(30		)
Fair value hedges
Interest rate swaps	66		32		—			—			—		—		—			—
Total fair value hedges	66		32		—			—			—		—		—			—
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	15,295		15,254		(501		)	(512		)	718		536		(1,219		)	(1,048		)
Foreign exchange contracts
Foreign currency swaps and forwards	179		177		8			1			9		3		(1		)	(2		)
Japan fixed payout annuity hedge	1,319		1,319		(441		)	(427		)	—		—		(441		)	(427		)
Credit contracts
Credit derivatives that purchase credit protection	197		595		(3		)	(6		)	—		4		(3		)	(10		)
Credit derivatives that assume credit risk [1]	1,863		1,487		8			3			21		14		(13		)	(11		)
Credit derivatives in offsetting positions	5,150		5,343		(3		)	(3		)	49		53		(52		)	(56		)
Equity contracts
Equity index swaps and options	541		635		4			2			34		31		(30		)	(29		)
Commodity contracts
Commodity options	582		—		10			—			10		—		—			—
Variable annuity hedge program
GMWB product derivatives [2]	17,079		17,908		(176		)	(139		)	—		—		(176		)	(139		)
GMWB reinsurance contracts	3,514		3,659		65			56			65		56		—			—
GMWB hedging instruments	12,179		14,442		181			174			309		289		(128		)	(115		)
Macro hedge program	7,742		6,383		187			141			227		180		(40		)	(39		)
Other
Contingent capital facility put option	500		500		11			12			11		12		—			—
Modified coinsurance reinsurance contracts	963		974		22			34			22		34		—			—
Total non-qualifying strategies	67,103		68,676		(628		)	(664		)	1,475		1,212		(2,103		)	(1,876		)
Total cash flow hedges, fair value hedges, and non-qualifying strategies	$	71,313	$	72,850	$	(555	)	$	(639	)	$	1,582	$	1,267	$	(2,137	)	$	(1,906	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	454	$	454	$	(2	)	$	2		$	—	$	2	$	(2	)	$	—
Other investments	22,729		23,014		445			364			659		624		(214		)	(260		)
Other liabilities	26,524		26,791		(883		)	(930		)	836		551		(1,719		)	(1,481		)
Reinsurance recoverables	4,477		4,633		87			90			87		90		—			—
Other policyholder funds and benefits payable	17,129		17,958		(202		)	(165		)	—		—		(202		)	(165		)
Total derivatives	$	71,313	$	72,850	$	(555	)	$	(639	)	$	1,582	$	1,267	$	(2,137	)	$	(1,906	)


[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.

Offsetting Assets and Liabilities [Table Text Block]

The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Condensed Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

As of March 31, 2015



	(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	$	1,495	$	1,268	$	445	$	(218	)		$	138	$	89



	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	$	(1,933	)	$	(946	)	$	(880	)	$	(107	)	$	(1,131	)	$	144

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



	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


[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. Not included in this amount are embedded derivatives associated with consumer notes of $(3) as of March 31, 2015 and December 31, 2014, which were not eligible for offset in the Company's Condensed Consolidated Balance Sheets.


[4]	Excludes collateral associated with exchange-traded derivative instruments.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

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)
	Three Months Ended March 31,						Three Months Ended March 31,
	2015			2014			2015		2014
Interest rate swaps	$	56		$	44		$	—	$	(1	)
Foreign currency swaps	(7		)	(1		)	—		—
Total	$	49		$	43		$	—	$	(1	)



		Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
		Three Months Ended March 31,
	Location	2015			2014
Interest rate swaps	Net realized capital gain (loss)	$	1		$	1
Interest rate swaps	Net investment income	16			23
Foreign currency swaps	Net realized capital gain (loss)	(10		)	—
Total		$	7		$	24

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

rivatives in Fair Value Hedging Relationships



		Gain or (Loss) Recognized in Income [1]
		Three Months Ended March 31,
		2015				2014
	Location	Derivative		Hedge Item		Derivative			Hedge Item
Interest rate swaps	Net realized capital gain/(loss)	$	—	$	—	$	(1	)	$	—


[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 with in Net Realized Capital Gains Losses on Non Qualifying Strategies [Table Text Block]

Derivatives Used in Non-Qualifying Strategies

Gain or (Loss) Recognized within Net Realized Capital Gains and Losses



	Three Months Ended March 31,
	2015			2014
Interest rate contracts
Interest rate swaps and forwards	$	(12	)	$	(57	)
Foreign exchange contracts
Foreign currency swaps and forwards	7			(2		)
Japan fixed payout annuity hedge [1]	(14		)	15
Credit contracts
Credit derivatives that purchase credit protection	(2		)	(4		)
Credit derivatives that assume credit risk	9			(1		)
Equity contracts
Equity index swaps and options	(3		)	—
Commodity contracts
Commodity options	(5		)	—
Variable annuity hedge program
GMWB product derivatives	(19		)	36
GMWB reinsurance contracts	7			(4		)
GMWB hedging instruments	13			(17		)
Macro hedge program	(4		)	(10		)
Other
Contingent capital facility put option	(2		)	(1		)
Modified coinsurance reinsurance contracts	(11		)	(19		)
Total [2]	$	(36	)	$	(64	)


[1]	Not included in this amount is the associated liability adjustment for changes in foreign exchange spot rates through realized capital gains of $0 and $(28) for the three months ended March 31, 2015 and 2014, respectively.


[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 4 - Fair Value Measurements.

Disclosure of Credit Derivatives [Table Text Block]

As of March 31, 2015



							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	$	252	$	4		2 years	Corporate Credit/ Foreign Gov.	BBB+	$	227	$	(4	)
Below investment grade risk exposure	29		—			2 years	Corporate Credit	BB	29		(1		)
Basket credit default swaps [4]
Investment grade risk exposure	2,721		38			3 years	Corporate Credit	BBB+	1,898		(23		)
Below investment grade risk exposure	59		4			5 years	Corporate Credit	B+	—		—
Investment grade risk exposure	873		(12		)	6 years	CMBS Credit	AA+	267		2
Below investment grade risk exposure	154		(22		)	2 years	CMBS Credit	CCC+	154		21
Embedded credit derivatives
Investment grade risk exposure	350		347			2 years	Corporate Credit	A+	—		—
Total [5]	$	4,438	$	359					$	2,575	$	(5	)

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	)


[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 $3.8 billion and $3.5 billion as of March 31, 2015 and December 31, 2014, 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 4 - Fair Value Measurements.