Fair Value Measurements Level 3 (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

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

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2017
	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")	$	2,354		$	—	$	2,258		$	96
Collateralized debt obligations ("CDOs")	2,457			—		2,118			339
Commercial mortgage-backed securities ("CMBS")	5,173			—		5,075			98
Corporate	26,044			—		24,908			1,136
Foreign government/government agencies	1,297			—		1,268			29
Bonds of municipalities and political subdivisions ("municipal bonds")	12,284			—		12,198			86
Residential mortgage-backed securities ("RMBS")	4,219			—		2,208			2,011
U.S. Treasuries	4,006			463		3,543			—
Total fixed maturities	57,834			463		53,576			3,795
Fixed maturities, FVO	146			—		146			—
Equity securities, trading [1]	11			11		—			—
Equity securities, AFS	1,055			789		168			98
Derivative assets
Credit derivatives	8			—		8			—
Equity derivatives	2			—		1			1
Interest rate derivatives	2			—		2			—
GMWB hedging instruments	45			—		—			45
Macro hedge program	94			—		8			86
Total derivative assets [2]	151			—		19			132
Short-term investments	4,716			1,916		2,800			—
Reinsurance recoverable for GMWB	57			—		—			57
Modified coinsurance reinsurance contracts	58			—		58			—
Separate account assets [3]	112,559			73,019		38,466			192
Total assets accounted for at fair value on a recurring basis	$	176,587		$	76,198	$	95,233		$	4,274
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
GMWB embedded derivative	$	(134	)	$	—	$	—		$	(134	)
Equity linked notes	(37		)	—		—			(37		)
Total other policyholder funds and benefits payable	(171		)	—		—			(171		)
Derivative liabilities
Credit derivatives	(6		)	—		(6		)	—
Equity derivatives	38			—		37			1
Foreign exchange derivatives	(267		)	—		(267		)	—
Interest rate derivatives	(488		)	—		(462		)	(26		)
GMWB hedging instruments	40			—		45			(5		)
Macro hedge program	74			—		—			74
Total derivative liabilities [4]	(609		)	—		(653		)	44
Contingent consideration [5]	(27		)	—		—			(27		)
Total liabilities accounted for at fair value on a recurring basis	$	(807	)	$	—	$	(653	)	$	(154	)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2016
	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	$	2,382		$	—	$	2,300		$	82
CDOs	1,916			—		1,502			414
CMBS	4,936			—		4,856			80
Corporate	25,666			—		24,586			1,080
Foreign government/government agencies	1,171			—		1,107			64
Municipal bonds	11,486			—		11,368			118
RMBS	4,767			—		2,795			1,972
U.S. Treasuries	3,679			620		3,059			—
Total fixed maturities	56,003			620		51,573			3,810
Fixed maturities, FVO	293			1		281			11
Equity securities, trading [1]	11			11		—			—
Equity securities, AFS	1,097			821		177			99
Derivative assets
Credit derivatives	17			—		17			—
Foreign exchange derivatives	27			—		27			—
Interest rate derivatives	(427		)	—		(427		)	—
GMWB hedging instruments	74			—		14			60
Macro hedge program	128			—		8			120
Other derivative contracts	1			—		—			1
Total derivative assets [2]	(180		)	—		(361		)	181
Short-term investments	3,244			878		2,366			—
Reinsurance recoverable for GMWB	73			—		—			73
Modified coinsurance reinsurance contracts	68			—		68			—
Separate account assets [3]	111,634			71,606		38,856			201
Total assets accounted for at fair value on a recurring basis	$	172,243		$	73,937	$	92,960		$	4,375
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
GMWB embedded derivative	$	(241	)	$	—	$	—		$	(241	)
Equity linked notes	(33		)	—		—			(33		)
Total other policyholder funds and benefits payable	(274		)	—		—			(274		)
Derivative liabilities
Credit derivatives	(13		)	—		(13		)	—
Equity derivatives	33			—		33			—
Foreign exchange derivatives	(237		)	—		(237		)	—
Interest rate derivatives	(542		)	—		(521		)	(21		)
GMWB hedging instruments	20			—		(1		)	21
Macro hedge program	50			—		3			47
Total derivative liabilities [4]	(689		)	—		(736		)	47
Contingent consideration [5]	(25		)	—		—			(25		)
Total liabilities accounted for at fair value on a recurring basis	$	(988	)	$	—	$	(736	)	$	(252	)

[1] Included in other investments on the Condensed Consolidated Balance Sheets.

[2] Includes OTC and OTC-cleared derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements, clearing house rules and applicable law. See footnote 4 to this table for derivative liabilities.

[3] Approximately $4.2 billion and $4.0 billion of investment sales receivable, as of June 30, 2017, and December 31, 2016, respectively, are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Included in the total fair value amount are $882 and $1.0 billion of investments, as of June 30, 2017 and December 31, 2016, for which the fair value is estimated using the net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy.

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

[5] For additional information see the Contingent Consideration section below.

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

Significant Unobservable Inputs for Level 3 - Freestanding Derivatives
	Fair Value			Predominant Valuation  Technique	Significant Unobservable Input	Minimum		Maximum		Impact of  Increase in Input on  Fair Value [1]
As of June 30, 2017
Interest rate derivatives
Interest rate swaps	$	(29	)	Discounted cash flows	Swap curve beyond 30 years	3	%	3	%	Decrease
Interest rate swaptions [2]	3			Option model	Interest rate volatility	2	%	2	%	Increase
GMWB hedging instruments
Equity variance swaps	(39		)	Option model	Equity volatility	16	%	20	%	Increase
Equity options	6			Option model	Equity volatility	26	%	28	%	Increase
Customized swaps	73			Discounted cash flows	Equity volatility	9	%	30	%	Increase
Macro hedge program [3]
Equity options	171			Option model	Equity volatility	15	%	26	%	Increase
As of December 31, 2016
Interest rate derivatives
Interest rate swaps	$	(29	)	Discounted cash flows	Swap curve beyond 30 years	3	%	3	%	Decrease
Interest rate swaptions [2]	8			Option model	Interest rate volatility	2	%	2	%	Increase
GMWB hedging instruments
Equity variance swaps	(36		)	Option model	Equity volatility	20	%	23	%	Increase
Equity options	17			Option model	Equity volatility	27	%	30	%	Increase
Customized swaps	100			Discounted cash flows	Equity volatility	12	%	30	%	Increase
Macro hedge program [3]
Equity options	188			Option model	Equity volatility	17	%	28	%	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.

[2] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap.

[3] Excludes derivatives for which the Company bases fair value on broker quotations

Significant Unobservable Inputs for Level 3 - Securities
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
As of June 30, 2017
CMBS [3]	$	51	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,816 bps	466 bps	Decrease
Corporate [4]	489		Discounted cash flows	Spread	108 bps	944 bps	303 bps	Decrease
Municipal [3]	70		Discounted cash flows	Spread	166 bps	222 bps	183 bps	Decrease
RMBS [3]	2,002		Discounted cash flows	Spread	40 bps	624 bps	126 bps	Decrease
				Constant prepayment rate	—%	14%	5%	Decrease [5]
				Constant default rate	2%	10%	5%	Decrease
				Loss severity	—%	100%	71%	Decrease
As of December 31, 2016
CMBS [3]	$	52	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	10 bps	1,273 bps	366 bps	Decrease
Corporate [4]	510		Discounted cash flows	Spread	122 bps	1,302 bps	359 bps	Decrease
Municipal [3]	101		Discounted cash flows	Spread	135 bps	286 bps	221 bps	Decrease
RMBS [3]	1,963		Discounted cash flows	Spread	16 bps	1,830 bps	192 bps	Decrease
				Constant prepayment rate	—%	20%	4%	Decrease [5]
				Constant default rate	—%	11%	5%	Decrease
				Loss severity	—%	100%	75%	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.

[3] Excludes securities for which the Company based fair value on broker quotations.

[4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5] Decrease for above market rate coupons and increase for below market rate coupons.

Significant Unobservable Inputs for Level 3 GMWB Embedded Customized and Reinsurance Derivatives
As of June 30, 2017
Significant Unobservable Input	Unobservable Inputs (Minimum)	Unobservable Inputs (Maximum)	Impact of Increase in Input on Fair Value Measurement [1]
Withdrawal Utilization [2]	15%	100%	Increase
Withdrawal Rates [3]	—%	8%	Increase
Lapse Rates [4]	—%	40%	Decrease
Reset Elections [5]	20%	75%	Increase
Equity Volatility [6]	9%	30%	Increase
As of December 31, 2016
Significant Unobservable Input	Unobservable Inputs (Minimum)	Unobservable Inputs (Maximum)	Impact of Increase in Input on Fair Value Measurement [1]
Withdrawal Utilization [2]	15%	100%	Increase
Withdrawal Rates [3]	—%	8%	Increase
Lapse Rates [4]	—%	40%	Decrease
Reset Elections [5]	20%	75%	Increase
Equity Volatility [6]	12%	30%	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] Range represents assumed cumulative percentages of policyholders taking withdrawals.

[3] Range represents assumed cumulative annual amount withdrawn by policyholders.

[4] Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business.

[5] Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base.

[6] 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)

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 roll-forward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements.

Fair Value Roll-forwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of March 31, 2017			Included in net income [1] [2] [6]			Included in OCI [3]			Purchases [8]		Settlements			Sales			Transfers into Level 3 [4]		Transfers out of Level 3 [4]			Fair value as of June 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	125		$	—		$	—		$	25	$	(1	)	$	—		$	—	$	(53	)	$	96
	CDOs	319			—			(5		)	300		(207		)	—			—		(68		)	339
	CMBS	117			—			1			19		(3		)	—			—		(36		)	98
	Corporate	1,078			(12		)	14			46		(4		)	(30		)	52		(8		)	1,136
	Foreign Govt./Govt. Agencies	66			—			—			6		(1		)	(2		)	—		(40		)	29
	Municipal	117			4			(1		)	—		—			(34		)	—		—			86
	RMBS	2,048			—			27			50		(114		)	—			—		—			2,011
Total Fixed Maturities, AFS		3,870			(8		)	36			446		(330		)	(66		)	52		(205		)	3,795
Equity Securities, AFS		99			—			(1		)	—		—			—			—		—			98
Freestanding Derivatives, net [5]
	Equity	4			(2		)	—			—		—			—			—		—			2
	Interest rate	(24		)	(2		)	—			—		—			—			—		—			(26		)
	GMWB hedging instruments	46			(6		)	—			—		—			—			—		—			40
	Macro hedge program	159			1			—			—		—			—			—		—			160
	Other contracts	—			—			—			—		—			—			—		—			—
Total Freestanding Derivatives, net [5]		185			(9		)	—			—		—			—			—		—			176
Reinsurance Recoverable for GMWB		60			(7		)	—			—		4			—			—		—			57
Separate Accounts		277			2			—			13		(2		)	(34		)	7		(71		)	192
Total Assets		$	4,491		$	(22	)	$	35		$	459	$	(328	)	$	(100	)	$	59	$	(276	)	$	4,318
Liabilities
Other Policyholder Funds and Benefits Payable
	Guaranteed Withdrawal Benefits	$	(157	)	$	40		$	—		$	—	$	(17	)	$	—		$	—	$	—		$	(134	)
	Equity Linked Notes	(36		)	(1		)	—			—		—			—			—		—			(37		)
Total Other Policyholder Funds and Benefits Payable		(193		)	39			—			—		(17		)	—			—		—			(171		)
Contingent Consideration [7]		(26		)	(1		)	—			—		—			—			—		—			(27		)
Total Liabilities		$	(219	)	$	38		$	—		$	—	$	(17	)	$	—		$	—	$	—		$	(198	)

Fair Value Roll-forwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2017			Included in net income [1] [2] [6]			Included in OCI [3]			Purchases [8]		Settlements			Sales			Transfers into Level 3 [4]		Transfers out of Level 3 [4]			Fair value as of June 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	82		$	—		$	—		$	70	$	(6	)	$	—		$	26	$	(76	)	$	96
	CDOs	414			—			(1		)	300		(208		)	—			—		(166		)	339
	CMBS	80			(1		)	1			75		(6		)	—			—		(51		)	98
	Corporate	1,080			(6		)	30			215		(40		)	(190		)	92		(45		)	1,136
	Foreign Govt./Govt. Agencies	64			—			3			6		(2		)	(2		)	—		(40		)	29
	Municipal	118			4			4			—		—			(40		)	—		—			86
	RMBS	1,972			—			33			223		(210		)	(7		)	—		—			2,011
Total Fixed Maturities, AFS		3,810			(3		)	70			889		(472		)	(239		)	118		(378		)	3,795
Fixed Maturities, FVO		11			—			—			4		(2		)	(13		)	—		—			—
Equity Securities, AFS		99			—			(5		)	4		—			—			—		—			98
Freestanding Derivatives, net [5]
	Equity	—			(3		)	—			5		—			—			—		—			2
	Interest rate	(21		)	(5		)	—			—		—			—			—		—			(26		)
	GMWB hedging instruments	81			(41		)	—			—		—			—			—		—			40
	Macro hedge program	167			(7		)	—			—		—			—			—		—			160
	Other contracts	1			(1		)	—			—		—			—			—		—			—
Total Freestanding Derivatives, net [5]		228			(57		)	—			5		—			—			—		—			176
Reinsurance Recoverable for GMWB		73			(23		)	—			—		7			—			—		—			57
Separate Accounts		201			3			2			111		(7		)	(42		)	10		(86		)	192
Total Assets		$	4,422		$	(80	)	$	67		$	1,013	$	(474	)	$	(294	)	$	128	$	(464	)	$	4,318
Liabilities
Other Policyholder Funds and Benefits Payable
	Guaranteed Withdrawal Benefits	$	(241	)	$	140		$	—		$	—	$	(33	)	$	—		$	—	$	—		$	(134	)
	Equity Linked Notes	(33		)	(4		)	—			—		—			—			—		—			(37		)
Total Other Policyholder Funds and Benefits Payable		(274		)	136			—			—		(33		)	—			—		—			(171		)
Contingent Consideration [7]		(25		)	(2		)	—			—		—			—			—		—			(27		)
Total Liabilities		$	(299	)	$	134		$	—		$	—	$	(33	)	$	—		$	—	$	—		$	(198	)

Fair Value Roll-forwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2016
					Total realized/unrealized gains (losses)
		Fair value as of March 31, 2016			Included in net income [1] [2] [6]			Included in OCI [3]			Purchases [8]		Settlements			Sales			Transfers into Level 3 [4]		Transfers out of Level 3 [4]			Fair value as of June 30, 2016
Assets
Fixed Maturities, AFS
	ABS	$	32		$	—		$	—		$	—	$	(4	)	$	—		$	13	$	—		$	41
	CDOs	542			(1		)	(2		)	—		(61		)	—			—		—			478
	CMBS	134			—			5			10		(9		)	(3		)	1		(59		)	79
	Corporate	834			(1		)	19			37		(50		)	(66		)	455		(92		)	1,136
	Foreign Govt./Govt. Agencies	76			1			4			1		(1		)	(9		)	—		—			72
	Municipal	50			—			4			20		—			—			16		—			90
	RMBS	1,886			—			10			97		(101		)	—			3		(22		)	1,873
Total Fixed Maturities, AFS		3,554			(1		)	40			165		(226		)	(78		)	488		(173		)	3,769
Fixed Maturities, FVO		14			1			—			1		(1		)	(3		)	—		(6		)	6
Equity Securities, AFS		92			1			5			2		—			(3		)	—		—			97
Freestanding Derivatives, net [5]
	Equity	5			(4		)	—			—		—			—			—		—			1
	Interest rate	(28		)	(4		)	—			—		—			—			—		—			(32		)
	GMWB hedging instruments	144			15			—			—		—			—			—		6			165
	Macro hedge program	145			(4		)	—			—		—			—			—		—			141
	Other contracts	5			(1		)	—			—		—			—			—		—			4
Total Freestanding Derivatives, net [5]		271			2			—			—		—			—			—		6			279
Reinsurance Recoverable for GMWB		99			3			—			—		4			—			—		—			106
Separate Accounts		154			—			3			22		(3		)	(6		)	3		(2		)	171
Total Assets		$	4,184		$	6		$	48		$	190	$	(226	)	$	(90	)	$	491	$	(175	)	$	4,428
Liabilities
Other Policyholder Funds and Benefits Payable
	Guaranteed Withdrawal Benefits	$	(361	)	$	(35	)	$	—		$	—	$	(16	)	$	—		$	—	$	—		$	(412	)
	Equity Linked Notes	(25		)	(3		)	—			—		—			—			—		—			(28		)
Total Other Policyholder Funds and Benefits Payable		(386		)	(38		)	—			—		(16		)	—			—		—			(440		)
Total Liabilities		$	(386	)	$	(38	)	$	—		$	—	$	(16	)	$	—		$	—	$	—		$	(440	)

Fair Value Roll-forwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2016
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2016			Included in net income [1] [2] [6]			Included in OCI [3]			Purchases [8]		Settlements			Sales			Transfers into Level 3 [4]		Transfers out of Level 3 [4]			Fair value as of June 30, 2016
Assets
Fixed Maturities, AFS
	ABS	$	37		$	—		$	—		$	—	$	(7	)	$	—		$	18	$	(7	)	$	41
	CDOs	541			(1		)	(2		)	—		(60		)	—			—		—			478
	CMBS	150			(1		)	(3		)	50		(18		)	(3		)	1		(97		)	79
	Corporate	854			(14		)	12			67		(55		)	(91		)	513		(150		)	1,136
	Foreign Govt./Govt. Agencies	60			1			9			15		(2		)	(11		)	—		—			72
	Municipal	49			—			5			20		—			—			16		—			90
	RMBS	1,622			—			(4		)	430		(158		)	—			5		(22		)	1,873
Total Fixed Maturities, AFS		3,313			(15		)	17			582		(300		)	(105		)	553		(276		)	3,769
Fixed Maturities, FVO		16			(1		)	—			6		(2		)	(3		)	—		(10		)	6
Equity Securities, AFS		93			—			7			2		—			(5		)	—		—			97
Freestanding Derivatives, net [5]
	Equity	—			(15		)	—			16		—			—			—		—			1
	Interest rate	(22		)	(10		)	—			—		—			—			—		—			(32		)
	GMWB hedging instruments	135			24			—			—		—			—			—		6			165
	Macro hedge program	147			(4		)	—			—		(2		)	—			—		—			141
	Other contracts	7			(3		)	—			—		—			—			—		—			4
Total Freestanding Derivatives, net [5]		267			(8		)	—			16		(2		)	—			—		6			279
Reinsurance Recoverable for GMWB		83			16			—			—		7			—			—		—			106
Separate Accounts		139			—			7			61		(9		)	(16		)	6		(17		)	171
Total Assets		$	3,911		$	(8	)	$	31		$	667	$	(306	)	$	(129	)	$	559	$	(297	)	$	4,428
Liabilities
Other Policyholder Funds and Benefits Payable
	Guaranteed Withdrawal Benefits	$	(262	)	$	(117	)	$	—		$	—	$	(33	)	$	—		$	—	$	—		$	(412	)
	Equity Linked Notes	(26		)	(2		)	—			—		—			—			—		—			(28		)
Total Other Policyholder Funds and Benefits Payable		(288		)	(119		)	—			—		(33		)	—			—		—			(440		)
Total Liabilities		$	(288	)	$	(119	)	$	—		$	—	$	(33	)	$	—		$	—	$	—		$	(440	)

[1] The Company classifies realized and unrealized gains (losses) on GMWB reinsurance derivatives and GMWB 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] Amounts in these rows are generally 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 of 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 Sheets in other investments and other liabilities.

[6] Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

[7] For additional information, see the Contingent Consideration section of Note 5 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.

[8] Includes issuance of contingent consideration associated with the Lattice acquisition, see Note 2 - Business Disposition of Notes to Condensed Consolidated Financial Statements for additional discussion.

Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period
		Three months ended June 30,						Six months ended June 30,
		2017 [1] [2]			2016 [1] [2]			2017 [1] [2]			2016 [1] [2]
Assets
Fixed Maturities, AFS
	CMBS	$	—		$	—		$	(1	)	$	(1	)
	Corporate	(12		)	(1		)	(12		)	(1		)
Total Fixed Maturities, AFS		(12		)	(1		)	(13		)	(2		)
Fixed Maturities, FVO		—			—			—			(1		)
Freestanding Derivatives, net
	Equity	(2		)	(4		)	(2		)	(15		)
	Interest rate	(2		)	(4		)	(2		)	(10		)
	GMWB hedging instruments	(6		)	15			(42		)	24
	Macro hedge program	2			(4		)	(6		)	(4		)
	Other Contracts	—			(1		)	—			(3		)
Total Freestanding Derivatives, net		(8		)	2			(52		)	(8		)
Reinsurance Recoverable for GMWB		(7		)	3			(23		)	16
Separate Accounts		—			—			1			—
Total Assets		$	(27	)	$	4		$	(87	)	$	5
Liabilities
Other Policyholder Funds and Benefits Payable
	Guaranteed Withdrawal Benefits	$	40		$	(35	)	$	140		$	(117	)
	Equity Linked Notes	(1		)	(3		)	(4		)	(2		)
Total Other Policyholder Funds and Benefits Payable		39			(38		)	136			(119		)
Contingent Consideration [3]		(1		)	—			(2		)	—
Total Liabilities		$	38		$	(38	)	$	134		$	(119	)

[1] 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 of DAC.

[2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3] For additional information, see the Contingent Consideration section of Note 5 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.

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

Changes in Fair Value of Assets using Fair Value Option
	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017			2016
Assets
Fixed maturities, FVO
Corporate	$	—	$	—	$	(1	)	$	—
Foreign government	—		—		—			(1		)
RMBS	—		4		1			5
Total fixed maturities, FVO	$	—	$	4	$	—		$	4
Equity, FVO	3		—		2			(34		)
Total realized capital gains (losses)	$	3	$	4	$	2		$	(30	)

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

Fair Value of Assets and Liabilities using the Fair Value Option
	June 30, 2017		December 31, 2016
Assets
Fixed maturities, FVO
ABS	$	—	$	7
CDOs	—		3
CMBS	—		8
Corporate	—		40
U.S government	—		7
RMBS	146		228
Total fixed maturities, FVO	$	146	$	293

Financial Instruments Not Carried at Fair Value

Financial Assets and Liabilities Not Carried at Fair Value
	Fair Value Hierarchy Level	Carrying Amount		Fair Value
June 30, 2017
Assets
Policy loans	Level 3	$	1,433	$	1,433
Mortgage loans	Level 3	5,796		5,871
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	$	6,403	$	6,603
Senior notes [2]	Level 2	3,555		4,200
Junior subordinated debentures [2]	Level 2	1,582		1,756
Consumer notes [3] [4]	Level 3	10		10
Assumed investment contracts [3]	Level 3	514		541
December 31, 2016
Assets
Policy loans	Level 3	$	1,444	$	1,444
Mortgage loans	Level 3	5,697		5,721
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	$	6,714	$	6,906
Senior notes [2]	Level 2	3,969		4,487
Junior subordinated debentures [2]	Level 2	1,083		1,246
Consumer notes [3] [4]	Level 3	20		20
Assumed investment contracts [3]	Level 3	487		526

[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 preceding disclosures.

[4] Included in other liabilities in the Condensed Consolidated Balance Sheets.