Investments and Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Investments and Derivative Instruments (Tables) [Abstract]

Change in non-credit impairments of debt securities recognized in OCI

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
OTTI losses recognized in OCI	$	(8	)	$	(184	)	$	(72	)	$	(372	)
Changes in fair value and/or sales		3			223			67			477
Tax and deferred acquisition costs		1			(18	)		6			(52	)
Change in non-credit impairments recognized in OCI	$	(4	)	$	21		$	1		$	53

Net Realized Capital Gains (Losses)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Before-tax)	2011			2010			2011			2010
Gross gains on sales	$	261		$	343		$	322		$	475
Gross losses on sales		(98	)		(94	)		(231	)		(205	)
Net OTTI losses recognized in earnings		(23	)		(108	)		(78	)		(260	)
Valuation allowances on mortgage loans		26			(40	)		23			(152	)
Japanese fixed annuity contract hedges, net [1]		6			27			(11	)		11
Periodic net coupon settlements on credit derivatives/Japan		(2	)		(4	)		(9	)		(11	)
Results of variable annuity hedge program
GMWB derivatives, net		(37	)		(426	)		34			(297	)
Macro hedge program		35			397			(322	)		233
Total results of variable annuity hedge program		(2	)		(29	)		(288	)		(64	)
Other, net		(99	)		(86	)		(62	)		(59	)
Net realized capital gains (losses)	$	69		$	9		$	(334	)	$	(265	)

[1] Relates to derivative hedging instruments, excluding periodic net coupon settlements, and is net of the Japanese fixed annuity product liability adjustment for changes in the dollar/yen exchange spot rate, as well as Japan FVO securities.

Other-Than-Temporary Impairment Losses

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Before-tax)	2011			2010			2011			2010
Balance as of beginning of period	$	(2,003	)	$	(2,341	)	$	(2,072	)	$	(2,200	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired		(8	)		(52	)		(36	)		(164	)
Securities previously impaired		(8	)		(52	)		(25	)		(91	)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period		83			151			192			154
Securities due to an increase in expected cash flows		3			13			8			20
Balance as of end of period	$	(1,933	)	$	(2,281	)	$	(1,933	)	$	(2,281	)

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

Available-for-Sale Securities

	June 30, 2011												December 31, 2010
	Cost or		Gross		Gross					Non-			Cost or		Gross		Gross					Non-
	Amortized		Unrealized		Unrealized			Fair		Credit			Amortized		Unrealized		Unrealized			Fair		Credit
	Cost		Gains		Losses			Value		OTTI [1]			Cost		Gains		Losses			Value		OTTI [1]
ABS	$	3,551	$	54	$	(308	)	$	3,297	$	(11	)	$	3,247	$	38	$	(396	)	$	2,889	$	(2	)
CDOs		2,928		—		(353	)		2,575		(68	)		3,088		1		(478	)		2,611		(82	)
CMBS		7,360		250		(333	)		7,277		(28	)		8,297		235		(615	)		7,917		(9	)
Corporate [2]		39,972		2,311		(611	)		41,629		—			38,496		2,174		(747	)		39,884		7
Foreign govt./govt. agencies		1,765		107		(8	)		1,864		—			1,627		73		(17	)		1,683		—
Municipal		12,738		278		(235	)		12,781		—			12,469		150		(495	)		12,124		—
RMBS		5,487		144		(417	)		5,214		(108	)		6,036		109		(462	)		5,683		(124	)
U.S. Treasuries		3,566		23		(94	)		3,495		—			5,159		24		(154	)		5,029		—
Total fixed maturities, AFS		77,367		3,167		(2,359	)		78,132		(215	)		78,419		2,804		(3,364	)		77,820		(210	)
Equity securities, AFS		1,070		112		(101	)		1,081		—			1,013		92		(132	)		973		—
Total AFS securities	$	78,437	$	3,279	$	(2,460	)	$	79,213	$	(215	)	$	79,432	$	2,896	$	(3,496	)	$	78,793	$	(210	)

[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 June 30, 2011 and December 31, 2010.
[2]	Gross unrealized gains (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).

Contractual Maturity

	June 30, 2011
Contractual Maturity	Amortized Cost		Fair Value
One year or less	$	2,545	$	2,573
Over one year through five years		16,181		17,009
Over five years through ten years		14,627		15,312
Over ten years		24,688		24,875
Subtotal		58,041		59,769
Mortgage-backed and asset-backed securities		19,326		18,363
Total fixed maturities, AFS	$	77,367	$	78,132

Security Unrealized Loss Aging

	June 30, 2011
	Less Than 12 Months							12 Months or More							Total
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Losses			Cost		Value		Losses			Cost		Value		Losses
ABS	$	264	$	257	$	(7	)	$	1,331	$	1,030	$	(301	)	$	1,595	$	1,287	$	(308	)
CDOs		337		317		(20	)		2,570		2,237		(333	)		2,907		2,554		(353	)
CMBS		1,334		1,282		(52	)		2,495		2,214		(281	)		3,829		3,496		(333	)
Corporate [1]		5,789		5,590		(194	)		3,617		3,162		(417	)		9,406		8,752		(611	)
Foreign govt./govt. agencies		182		180		(2	)		53		47		(6	)		235		227		(8	)
Municipal		4,340		4,249		(91	)		1,016		872		(144	)		5,356		5,121		(235	)
RMBS		810		791		(19	)		1,424		1,026		(398	)		2,234		1,817		(417	)
U.S. Treasuries		1,289		1,228		(61	)		133		100		(33	)		1,422		1,328		(94	)
Total fixed maturities		14,345		13,894		(446	)		12,639		10,688		(1,913	)		26,984		24,582		(2,359	)
Equity securities		211		206		(5	)		569		473		(96	)		780		679		(101	)
Total securities in an unrealized loss	$	14,556	$	14,100	$	(451	)	$	13,208	$	11,161	$	(2,009	)	$	27,764	$	25,261	$	(2,460	)

	December 31, 2010
	Less Than 12 Months							12 Months or More							Total
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
	Cost		Value		Losses			Cost		Value		Losses			Cost		Value		Losses
ABS	$	302	$	290	$	(12	)	$	1,410	$	1,026	$	(384	)	$	1,712	$	1,316	$	(396	)
CDOs		321		293		(28	)		2,724		2,274		(450	)		3,045		2,567		(478	)
CMBS		556		530		(26	)		3,962		3,373		(589	)		4,518		3,903		(615	)
Corporate [1]		5,533		5,329		(199	)		4,017		3,435		(548	)		9,550		8,764		(747	)
Foreign govt./govt. agencies		356		349		(7	)		78		68		(10	)		434		417		(17	)
Municipal		7,485		7,173		(312	)		1,046		863		(183	)		8,531		8,036		(495	)
RMBS		1,744		1,702		(42	)		1,567		1,147		(420	)		3,311		2,849		(462	)
U.S. Treasuries		2,436		2,321		(115	)		158		119		(39	)		2,594		2,440		(154	)
Total fixed maturities		18,733		17,987		(741	)		14,962		12,305		(2,623	)		33,695		30,292		(3,364	)
Equity securities		53		52		(1	)		637		506		(131	)		690		558		(132	)
Total securities in an unrealized loss	$	18,786	$	18,039	$	(742	)	$	15,599	$	12,811	$	(2,754	)	$	34,385	$	30,850	$	(3,496	)

[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

	June 30, 2011							December 31, 2010
	Amortized		Valuation			Carrying		Amortized		Valuation			Carrying
	Cost [1]		Allowance			Value		Cost [1]		Allowance			Value
Commercial	$	5,324	$	(129	)	$	5,195	$	4,492	$	(152	)	$	4,340
Residential		151		(42	)		109		152		(3	)		149
Total mortgage loans	$	5,475	$	(171	)	$	5,304	$	4,644	$	(155	)	$	4,489

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

Valuation allowance for mortgage loans

	2011			2010
Balance as of January 1	$	(155	)	$	(366	)
Additions		(27	)		(152	)
Deductions		11			178
Balance as of June 30	$	(171	)	$	(340	)

Commercial Mortgage Loans Credit Quality

Commercial Mortgage Loans Credit Quality
	June 30, 2011				December 31, 2010
	Carrying		Avg. Debt-Service		Carrying		Avg. Debt-Service
Loan-to-value	Value		Coverage Ratio		Value		Coverage Ratio
Greater than 80%	$	1,032		1.51x	$	1,358		1.49x
65% - 80%		2,379		1.71x		1,829		1.93x
Less than 65%		1,784		2.30x		1,153		2.26x
Total commercial mortgage loans	$	5,195		1.88x	$	4,340		1.87x

Mortgage Loans by Region

Mortgage Loans by Region
	June 30, 2011					December 31, 2010
	Carrying		Percent of			Carrying		Percent of
	Value		Total			Value		Total
East North Central	$	76		1.4	%	$	77		1.7	%
Middle Atlantic		498		9.4	%		428		9.5	%
Mountain		127		2.4	%		109		2.4	%
New England		296		5.6	%		259		5.8	%
Pacific		1,307		24.6	%		1,147		25.6	%
South Atlantic		1,150		21.7	%		1,177		26.3	%
West North Central		34		0.6	%		36		0.8	%
West South Central		225		4.2	%		231		5.1	%
Other [1]		1,591		30.1	%		1,025		22.8	%
Total mortgage loans	$	5,304		100.0	%	$	4,489		100.0	%

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

Mortgage Loans by Property Type

Mortgage Loans by Property Type
	June 30, 2011					December 31, 2010
	Carrying		Percent of			Carrying		Percent of
	Value		Total			Value		Total
Commercial
Agricultural	$	258		4.9	%	$	315		7.0	%
Industrial		1,615		30.5	%		1,141		25.4	%
Lodging		124		2.3	%		132		2.9	%
Multifamily		974		18.4	%		713		15.9	%
Office		944		17.8	%		986		22.1	%
Retail		986		18.6	%		669		14.9	%
Other		294		5.4	%		384		8.5	%
Residential		109		2.1	%		149		3.3	%
Total mortgage loans	$	5,304		100.0	%	$	4,489		100.0	%

Variable Interest Entities Primary Beneficiary

	June 30, 2011						December 31, 2010
					Maximum						Maximum
	Total		Total		Exposure		Total		Total		Exposure
	Assets		Liabilities [1]		to Loss [2]		Assets		Liabilities [1]		to Loss [2]
CDOs [3]	$	510	$	439	$	48	$	729	$	393	$	289
Limited partnerships		7		—		7		14		1		13
Total	$	517	$	439	$	55	$	743	$	394	$	302

[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, and fixed maturities, FVO, in the Company’s Condensed Consolidated Balance Sheets.

GMWB reinsurance contracts

	Notional Amount				Fair Value
	June 30,		December 31,		June 30,			December 31,
	2011		2010		2011			2010
Customized swaps	$	9,615	$	10,113	$	175		$	209
Equity swaps, options, and futures		5,239		4,943		372			391
Interest rate swaps and futures		2,752		2,800		(118	)		(133	)
Total	$	17,606	$	17,856	$	429		$	467

Macro hedge program

	Notional Amount				Fair Value
	June 30,		December 31,		June 30,			December 31,
	2011		2010		2011			2010
Long equity options, swaps and futures	$	8,650	$	13,332	$	231		$	205
Short equity options, swaps and futures		2,116		1,168		23			—
Long currency forward contracts		196		1,791		(4	)		64
Short currency forward contracts		2,778		1,441		56			29
Foreign interest rate swaps		2,192		2,182		30			21
Cross-currency equity options		121		1,000		4			3
Long currency options		2,155		3,075		139			67
Short currency options		465		2,221		(8	)		(5	)
Total	$	18,673	$	26,210	$	471		$	384

Derivative Classification by Balance Sheet Location

	Net Derivatives										Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value						Fair Value				Fair Value
	Jun. 30,		Dec. 31,		Jun. 30,			Dec. 31,			Jun. 30,		Dec. 31,		Jun. 30,			Dec. 31,
Hedge Designation/ Derivative Type	2011		2010		2011			2010			2011		2010		2011			2010
Cash flow hedges
Interest rate swaps	$	9,941	$	10,290	$	183		$	115		$	206	$	188	$	(23	)	$	(73	)
Foreign currency swaps		302		335		7			6			27		29		(20	)		(23	)
Total cash flow hedges		10,243		10,625		190			121			233		217		(43	)		(96	)
Fair value hedges
Interest rate swaps		1,277		1,120		(60	)		(46	)		1		5		(61	)		(51	)
Foreign currency swaps		677		677		15			(12	)		96		71		(81	)		(83	)
Total fair value hedges		1,954		1,797		(45	)		(58	)		97		76		(142	)		(134	)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps, swaptions, caps, floors, and futures		9,044		7,938		(354	)		(441	)		219		126		(573	)		(567	)
Foreign exchange contracts
Foreign currency swaps and forwards		369		368		(29	)		(18	)		—		1		(29	)		(19	)
Japan 3Win foreign currency swaps		2,285		2,285		152			177			152		177		—			—
Japanese fixed annuity hedging instruments		2,137		2,119		487			608			494		608		(7	)		—
Japanese variable annuity hedging instruments		3,526		1,720		10			73			61		74		(51	)		(1	)
Credit contracts
Credit derivatives that purchase credit protection		1,396		2,559		(10	)		(9	)		17		29		(27	)		(38	)
Credit derivatives that assume credit risk [1]		2,270		2,569		(444	)		(434	)		5		8		(449	)		(442	)
Credit derivatives in offsetting positions		8,535		8,367		(70	)		(75	)		114		98		(184	)		(173	)
Equity contracts
Equity index swaps and options		192		189		(8	)		(10	)		6		5		(14	)		(15	)
Variable annuity hedge program
GMWB product derivatives [2]		39,593		42,739		(1,450	)		(1,647	)		—		—		(1,450	)		(1,647	)
GMWB reinsurance contracts		7,886		8,767		237			280			237		280		—			—
GMWB hedging instruments		17,606		17,856		429			467			575		647		(146	)		(180	)
Macro hedge program		18,673		26,210		471			384			486		394		(15	)		(10	)
Other
GMAB product derivatives [2]		237		246		—			3			—		3		—			—
Contingent capital facility put option		500		500		30			32			30		32		—			—
Total non-qualifying strategies		114,249		124,432		(549	)		(610	)		2,396		2,482		(2,945	)		(3,092	)
Total cash flow hedges, fair value hedges, and non-qualifying strategies	$	126,446	$	136,854	$	(404	)	$	(547	)	$	2,726	$	2,775	$	(3,130	)	$	(3,322	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	703	$	728	$	(43	)	$	(39	)	$	—	$	—	$	(43	)	$	(39	)
Other investments		27,523		55,948		890			1,524			1,223		2,105		(333	)		(581	)
Other liabilities		50,410		28,333		(24	)		(654	)		1,266		387		(1,290	)		(1,041	)
Consumer notes		39		39		(4	)		(5	)		—		—		(4	)		(5	)
Reinsurance recoverables		7,886		8,767		237			280			237		280		—			—
Other policyholder funds and benefits payable		39,885		43,039		(1,460	)		(1,653	)		—		3		(1,460	)		(1,656	)
Total derivatives	$	126,446	$	136,854	$	(404	)	$	(547	)	$	2,726	$	2,775	$	(3,130	)	$	(3,322	)

[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

Derivatives in Cash Flow Hedging Relationships
										Gain (Loss) Recognized in
		Gain (Loss) Recognized in OCI								Income on Derivative
		on Derivative (Effective Portion)								(Ineffective Portion)
		Three Months				Six Months				Three Months				Six Months
		Ended				Ended				Ended				Ended
		June 30,				June 30,				June 30,				June 30,
		2011		2010		2011		2010		2011		2010		2011			2010
Interest rate swaps	Net realized capital gains (losses)	$	148	$	260	$	82	$	360	$	—	$	4	$	(2	)	$	3
Foreign currency swaps	Net realized capital gains		—		6		—		15		—		—		—			—
Total		$	148	$	266	$	82	$	375	$	—	$	4	$	(2	)	$	3

Derivatives in Cash Flow Hedging Relationships
		Gain (Loss) Reclassified from AOCI into Income
		(Effective Portion)
		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2011		2010			2011		2010
Interest rate swaps	Net realized capital gains	$	2	$	4		$	4	$	4
Interest rate swaps	Net investment income		31		22			63		34
Foreign currency swaps	Net realized capital gains (losses)		3		(11	)		8		(16	)
Foreign currency swaps	Net investment income		—		—			—		—
Total		$	36	$	15		$	75	$	22

Derivatives in Fair Value Hedging Relationships

Derivatives in Fair Value Hedging Relationships
	Gain (Loss) Recognized in Income [1]
	Three Months Ended											Six Months Ended
	June 30,											June 30,
	2011						2010					2011						2010
				Hedge						Hedge					Hedge						Hedge
	Derivative			Item			Derivative			Item		Derivative			Item			Derivative			Item
Interest rate swaps
Net realized capital gains (losses)	$	(27	)	$	26		$	(40	)	$	37	$	(17	)	$	17		$	(52	)	$	47
Benefits, losses and loss adjustment expenses		—			—			(7	)		8		—			—			(2	)		3
Foreign currency swaps
Net realized capital gains (losses)		22			(22	)		(11	)		11		36			(36	)		(40	)		40
Benefits, losses and loss adjustment expenses		(1	)		1			—			—		(9	)		9			(1	)		1
Total	$	(6	)	$	5		$	(58	)	$	56	$	10		$	(10	)	$	(95	)	$	91

[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

Non-qualifying Strategies
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Interest rate contracts
Interest rate swaps, swaptions, caps, floors, futures, and forwards	$	(4	)	$	(5	)	$	1		$	(5	)
Foreign exchange contracts
Foreign currency swaps, forwards, and swaptions		(7	)		23			(12	)		29
Japan 3Win hedging derivatives [1]		33			65			(25	)		9
Japanese fixed annuity hedging instruments [2]		57			160			(5	)		141
Japanese variable annuity hedging instruments		6			32			(56	)		45
Credit contracts
Credit derivatives that purchase credit protection		(3	)		38			(20	)		38
Credit derivatives that assume credit risk		(14	)		(50	)		5			(13	)
Equity contracts
Equity index swaps, options, and futures		2			4			2			5
Variable annuity hedge program
GMWB product derivatives		(84	)		(1,497	)		279			(1,144	)
GMWB reinsurance contracts		4			246			(61	)		185
GMWB hedging instruments		43			825			(184	)		662
Macro hedge program		35			397			(322	)		233
Other
GMAB product derivatives		(2	)		(5	)		(1	)		(2	)
Contingent capital facility put option		(1	)		(1	)		(3	)		(2	)
Total	$	65		$	232		$	(402	)	$	181

[1]	The associated liability is adjusted for changes in spot rates through realized capital gains and was $(49) and $(103) for the three months ended June 30, 2011 and 2010, respectively, and $(7) and $(96) for the six months ended June 30, 2011 and 2010, respectively.
[2]	The associated liability is adjusted for changes in spot rates through realized capital gains and was $(63) and $(126) for the three months ended June 30, 2011 and 2010, respectively, and $(10) and $(119) for the six months ended June 30, 2011 and 2010, respectively.

Credit Derivatives Description

As of June 30, 2011
							Underlying Referenced
						Weighted	Credit Obligation(s) [1]
						Average		Average		Offsetting
Credit Derivative type by derivative	Notional		Fair			Years to		Credit		Notional		Offsetting
risk exposure	Amount [2]		Value			Maturity	Type	Rating		Amount [3]		Fair Value [3]
Single name credit default swaps
Investment grade risk exposure	$	1,585	$	(3	)	3 years	Corporate Credit/Foreign Gov.		A+	$	1,446	$	(53	)
Below investment grade risk exposure		180		(4	)	2 years	Corporate Credit	BB-			144		(8	)
Basket credit default swaps [4]
Investment grade risk exposure		3,144		10		3 years	Corporate Credit	BBB+			2,128		(18	)
Investment grade risk exposure		525		(66	)	6 years	CMBS Credit	BBB+			525		66
Below investment grade risk exposure		578		(396	)	4 years	Corporate Credit	BBB+			25		1
Embedded credit derivatives
Investment grade risk exposure		25		24		3 years	Corporate Credit	BBB-			—		—
Below investment grade risk exposure		500		438		6 years	Corporate Credit	BB+			—		—
Total	$	6,537	$	3						$	4,268	$	(12	)

As of December 31, 2010
							Underlying Referenced
						Weighted	Credit Obligation(s) [1]
						Average		Average		Offsetting
Credit Derivative type by derivative	Notional		Fair			Years to		Credit		Notional		Offsetting
risk exposure	Amount [2]		Value			Maturity	Type	Rating		Amount [3]		Fair Value [3]
Single name credit default swaps
Investment grade risk exposure	$	1,562	$	(14	)	3 years	Corporate Credit/Foreign Gov.		A+	$	1,447	$	(41	)
Below investment grade risk exposure		204		(6	)	3 years	Corporate Credit	BB-			168		(13	)
Basket credit default swaps [4]
Investment grade risk exposure		3,145		(1	)	4 years	Corporate Credit	BBB+			2,019		(14	)
Investment grade risk exposure		525		(50	)	6 years	CMBS Credit	BBB+			525		50
Below investment grade risk exposure		767		(381	)	4 years	Corporate Credit	BBB+			25		—
Embedded credit derivatives
Investment grade risk exposure		25		25		4 years	Corporate Credit	BBB-			—		—
Below investment grade risk exposure		525		463		6 years	Corporate Credit	BB+			—		—
Total	$	6,753	$	36						$	4,184	$	(18	)

[1]	The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, and Fitch. 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. There is no 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 $3.7 billion and $3.9 billion as of June 30, 2011 and December 31, 2010, 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. Also includes $553 and $542 as of June 30, 2011 and December 31, 2010, respectively, of customized diversified portfolios of corporate issuers referenced through credit default swaps.