Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Balance Sheet Presentation

Derivative Balance Sheet Presentation
	Net Derivatives										Asset Derivatives [1]				Liability Derivatives [1]
	Notional Amount				Fair Value						Fair Value				Fair Value
Hedge Designation/ Derivative Type	Jun. 30, 2018		Dec. 31, 2017		Jun. 30, 2018			Dec. 31, 2017			Jun. 30, 2018		Dec. 31, 2017		Jun. 30, 2018			Dec. 31, 2017
Cash flow hedges
Interest rate swaps	$	2,120	$	2,190	$	—		$	—		$	—	$	1	$	—		$	(1	)
Foreign currency swaps	153		153		(12		)	(13		)	1		—		(13		)	(13		)
Total cash flow hedges	2,273		2,343		(12		)	(13		)	1		1		(13		)	(14		)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	8,849		7,986		(59		)	(83		)	5		7		(64		)	(90		)
Foreign exchange contracts
Foreign currency swaps and forwards	341		213		—			(1		)	1		—		(1		)	(1		)
Credit contracts
Credit derivatives that purchase credit protection	6		61		—			1			—		2		—			(1		)
Credit derivatives that assume credit risk [2]	973		823		10			3			12		3		(2		)	—
Credit derivatives in offsetting positions	51		1,046		—			2			7		11		(7		)	(9		)
Equity contracts
Equity index swaps and options	136		258		1			1			1		1		—			—
Total non-qualifying strategies	10,356		10,387		(48		)	(77		)	26		24		(74		)	(101		)
Total cash flow hedges and non-qualifying strategies	$	12,629	$	12,730	$	(60	)	$	(90	)	$	27	$	25	$	(87	)	$	(115	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	153	$	153	$	—		$	—		$	—	$	—	$	—		$	—
Other investments	2,022		9,957		15			10			20		16		(5		)	(6		)
Other liabilities	10,454		2,620		(75		)	(100		)	7		9		(82		)	(109		)
Total derivatives	$	12,629	$	12,730	$	(60	)	$	(90	)	$	27	$	25	$	(87	)	$	(115	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

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

Offsetting Assets

Offsetting Derivative Assets and Liabilities
	(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 (Liabilities) [1]			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [2] (Liabilities) [3]			Accrued Interest and Cash Collateral (Received) [4] Pledged [3]				Financial Collateral (Received) Pledged [5]			Net Amount
As of June 30, 2018
Other investments	$	27		$	22		$	15		$	(10	)		$	3		$	2
Other liabilities	$	(87	)	$	(11	)	$	(75	)	$	(1	)		$	(68	)	$	(8	)
As of December 31, 2017
Other investments	$	25		$	22		$	10		$	(7	)		$	1		$	2
Other liabilities	$	(115	)	$	(10	)	$	(100	)	$	(5	)		$	(96	)	$	(9	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] Included in other investments in the Company's Condensed Consolidated Balance Sheets.

[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] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

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

Offsetting Liabilities

Securities Lending and Repurchase Agreements
	June 30, 2018		December 31, 2017
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	687	$	922
Gross amount of associated liability for collateral received [1]	$	704	$	945
Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	165	$	174
Gross amount of collateral pledged related to repurchase agreements [2]	$	170	$	176

[1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $9 and $0 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, respectively.

[2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Condensed Consolidated Balance Sheets.

Offsetting Derivative Assets and Liabilities
	(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 (Liabilities) [1]			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [2] (Liabilities) [3]			Accrued Interest and Cash Collateral (Received) [4] Pledged [3]				Financial Collateral (Received) Pledged [5]			Net Amount
As of June 30, 2018
Other investments	$	27		$	22		$	15		$	(10	)		$	3		$	2
Other liabilities	$	(87	)	$	(11	)	$	(75	)	$	(1	)		$	(68	)	$	(8	)
As of December 31, 2017
Other investments	$	25		$	22		$	10		$	(7	)		$	1		$	2
Other liabilities	$	(115	)	$	(10	)	$	(100	)	$	(5	)		$	(96	)	$	(9	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] Included in other investments in the Company's Condensed Consolidated Balance Sheets.

[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] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

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

Derivatives in Cash Flow Hedging Relationships

Derivatives in Cash Flow Hedging Relationships
	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Interest rate swaps	$	(2	)	$	17		$	(16	)	$	14
Foreign currency swaps	8			(4		)	1			(4		)
Total	$	6		$	13		$	(15	)	$	10
	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Interest rate swaps
Net realized capital gains	$	—		$	1		$	1		$	5
Net investment income	9			10			17			19
Total	$	9		$	11		$	18		$	24

Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses)

Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses)
	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Foreign exchange contracts
Foreign currency swaps and forwards	$	4		$	(7	)	$	1		$	(14	)
Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	8			(7		)	6			(2		)
Credit contracts
Credit derivatives that purchase credit protection	1			23			—			18
Credit derivatives that assume credit risk	—			(16		)	(8		)	(7		)
Equity contracts
Equity index swaps and options	(1		)	1			—			—
Other
Contingent capital facility put option	—			—			—			(1		)
Total other non-qualifying derivatives	8			1			(2		)	8
Total [1]	$	12		$	(6	)	$	(1	)	$	(6	)

[1] 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

Credit Derivatives by Type

Credit Risk Assumed Derivatives by Type
							Underlying Referenced Credit Obligation(s) [1]
	Notional Amount [2]		Fair Value			Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of June 30, 2018
Single name credit default swaps
Investment grade risk exposure	$	169	$	3		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Basket credit default swaps [4]
Investment grade risk exposure	794		7			6 years	Corporate Credit	BBB+	—		—
Investment grade risk exposure	12		—			5 years	CMBS Credit	A-	2		—
Below investment grade risk exposure	24		(6		)	Less than 1 year	CMBS Credit	CCC	24		6
Total [5]	$	999	$	4					$	26	$	6
As of December 31, 2017
Single name credit default swaps
Investment grade risk exposure	$	130	$	3		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Below investment grade risk exposure	9		—			Less than 1 year	Corporate Credit	B	9		—
Basket credit default swaps [4]
Investment grade risk exposure	1,137		2			3 years	Corporate Credit	BBB+	454		(2		)
Below investment grade risk exposure	27		2			3 years	Corporate Credit	B+	27		—
Investment grade risk exposure	13		(1		)	5 years	CMBS Credit	A	3		—
Below investment grade risk exposure	30		(6		)	Less than 1 year	CMBS Credit	CCC	30		7
Total [5]	$	1,346	$	—					$	523	$	5

[1] The average credit ratings are based on availability and are generally the midpoint of the available 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 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] Comprised of swaps 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 - Fair Value Measurements