Fair Value Of Assets And Liabilities (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value of Assets and Liabilities

Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis

($ in millions)		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Counterparty and cash collateral		Balance as of June 30,
		(Level 1)		(Level 2)		(Level 3)		netting		2011
Assets
Fixed income securities:
U.S. government and agencies	$	4,298	$	1,889	$	--			$	6,187
Municipal		--		13,119		1,554				14,673
Corporate		--		40,649		1,720				42,369
Foreign government		--		3,043		--				3,043
RMBS		--		4,796		1,194				5,990
CMBS		--		1,048		938				1,986
ABS		--		1,975		2,167				4,142
Redeemable preferred stock		--		23		1				24
Total fixed income securities		4,298		66,542		7,574				78,414
Equity securities		4,248		664		42				4,954
Short-term investments		271		2,265		--				2,536
Other investments:
Free-standing derivatives		--		425		22	$	(99)		348
Separate account assets		8,175		--		--				8,175
Other assets		2		--		1				3
Total recurring basis assets		16,994		69,896		7,639		(99)		94,430
Non-recurring basis (1)		--		--		62				62
Total assets at fair value	$	16,994	$	69,896	$	7,701	$	(99)	$	94,492
% of total assets at fair value		18.0 %		74.0 %		8.1 %		(0.1) %		100.0 %
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(629)			$	(629)
Other liabilities:
Free-standing derivatives		--		(217)		(78)	$	95		(200)
Total liabilities at fair value	$	--	$	(217)	$	(707)	$	95	$	(829)
% of total liabilities at fair value		-- %		26.2 %		85.3 %		(11.5) %		100.0 %

(1)  Includes $50 million of mortgage loans, $1 million of limited partnership interests and $11 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

($ in millions)		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Counterparty and cash collateral		Balance as of December 31,
		(Level 1)		(Level 2)		(Level 3)		netting		2010
Assets
Fixed income securities:
U.S. government and agencies	$	4,976	$	3,620	$	--			$	8,596
Municipal		--		13,918		2,016				15,934
Corporate		--		35,747		1,908				37,655
Foreign government		--		3,158		--				3,158
RMBS		--		6,199		1,794				7,993
CMBS		--		1,071		923				1,994
ABS		--		1,827		2,417				4,244
Redeemable preferred stock		--		37		1				38
Total fixed income securities		4,976		65,577		9,059				79,612
Equity securities		4,316		432		63				4,811
Short-term investments		174		3,105		--				3,279
Other investments:
Free-standing derivatives		--		651		74	$	(286)		439
Separate account assets		8,676		--		--				8,676
Other assets		--		--		1				1
Total recurring basis assets		18,142		69,765		9,197		(286)		96,818
Non-recurring basis (1)		--		--		120				120
Total assets at fair value	$	18,142	$	69,765	$	9,317	$	(286)	$	96,938
% of total assets at fair value		18.7 %		72.0 %		9.6 %		(0.3) %		100.0 %
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(653)			$	(653)
Other liabilities:
Free-standing derivatives		(2)		(529)		(95)	$	263		(363)
Total liabilities at fair value	$	(2)	$	(529)	$	(748)	$	263	$	(1,016)
% of total liabilities at fair value		0.2 %		52.1 %		73.6 %		(25.9) %		100.0 %

Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of March 31, 2011		Net income (1)		OCI on Statement of Financial Position		Transfers into Level 3		Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	1,864	$	(13)	$	45	$	--	$	(22)
Corporate		2,035		23		8		87		(117)
RMBS		1,398		(26)		1		--		(68)
CMBS		995		(21)		4		10		(10)
ABS		2,091		11		12		--		(9)
Redeemable preferred stock		1		--		--		--		--
Total fixed income securities		8,384		(26)		70		97		(226)
Equity securities		43		--		--		--		--
Other investments:
Free-standing derivatives, net		(71)		(3)		--		--		--
Other assets		1		--		--		--		--
Total recurring Level 3 assets	$	8,357	$	(29)	$	70	$	97	$	(226)
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(630)	$	(34)	$	--	$	--	$	--
Total recurring Level 3 liabilities	$	(630)	$	(34)	$	--	$	--	$	--
		Purchases		Sales		Issuances		Settlements		Balance as of June 30, 2011
Assets
Fixed income securities:
Municipal	$	3	$	(321)	$	--	$	(2)	$	1,554
Corporate		35		(347)		--		(4)		1,720
RMBS		--		(60)		--		(51)		1,194
CMBS		2		(41)		--		(1)		938
ABS		213		(49)		--		(102)		2,167
Redeemable preferred stock		--		--		--		--		1
Total fixed income securities		253		(818)		--		(160)		7,574
Equity securities		--		(1)		--		--		42
Other investments:
Free-standing derivatives, net		19		--		--		(1)		(56)	(2)
Other assets		--		--		--		--		1
Total recurring Level 3 assets	$	272	$	(819)	$	--	$	(161)	$	7,561
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(13)	$	48	$	(629)
Total recurring Level 3 liabilities	$	--	$	--	$	(13)	$	48	$	(629)

(1)The effect to net income totals $(63) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(38) million in realized capital gains and losses, $9 million in net investment income, $(26) million in interest credited to contractholder funds and $(8) million in life and annuity contract benefits.

(2)Comprises $22 million of assets and $78 million of liabilities.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of December 31, 2010		Net income (1)		OCI on Statement of Financial Position		Transfers into Level 3		Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	2,016	$	(24)	$	66	$	--	$	(59)
Corporate		1,908		35		18		182		(164)
RMBS		1,794		(87)		106		--		(113)
CMBS		923		(42)		118		66		(69)
ABS		2,417		55		28		--		(313)
Redeemable preferred stock		1		--		--		--		--
Total fixed income securities		9,059		(63)		336		248		(718)
Equity securities		63		(10)		--		--		(10)
Other investments:
Free-standing derivatives, net		(21)		(34)		--		--		--
Other assets		1		--		--		--		--
Total recurring Level 3 assets	$	9,102	$	(107)	$	336	$	248	$	(728)
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(653)	$	(26)	$	--	$	--	$	--
Total recurring Level 3 liabilities	$	(653)	$	(26)	$	--	$	--	$	--
		Purchases		Sales		Issuances		Settlements		Balance as of June 30, 2011
Assets
Fixed income securities:
Municipal	$	13	$	(455)	$	--	$	(3)	$	1,554
Corporate		131		(378)		--		(12)		1,720
RMBS		--		(378)		--		(128)		1,194
CMBS		10		(66)		--		(2)		938
ABS		303		(163)		--		(160)		2,167
Redeemable preferred stock		--		--		--		--		1
Total fixed income securities		457		(1,440)		--		(305)		7,574
Equity securities		--		(1)		--		--		42
Other investments:
Free-standing derivatives, net		67		--		--		(68)		(56)	(2)
Other assets		--		--		--		--		1
Total recurring Level 3 assets	$	524	$	(1,441)	$	--	$	(373)	$	7,561
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(27)	$	77	$	(629)
Total recurring Level 3 liabilities	$	--	$	--	$	(27)	$	77	$	(629)

(1)The effect to net income totals $(133) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(123) million in realized capital gains and losses, $16 million in net investment income, $(63) million in interest credited to contractholder funds and $37 million in life and annuity contract benefits.

(2)Comprises $22 million of assets and $78 million of liabilities.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of March 31, 2010		Net income (1)		OCI on Statement of Financial Position		Purchases, sales, issuances and settlements, net		Transfers into Level 3		Transfers out of Level 3		Balance as of June 30, 2010
Assets
Fixed income securities:
Municipal	$	2,482	$	(31)	$	21	$	(236)	$	16	$	(55)	$	2,197
Corporate		2,177		(10)		26		45		151		(164)		2,225
RMBS		2,079		(111)		180		(124)		--		(14)		2,010
CMBS		1,130		(73)		192		(165)		--		(204)		880
ABS		2,403		3		6		141		--		(123)		2,430
Redeemable preferred stock		2		--		--		(1)		--		--		1
Total fixed income securities		10,273		(222)		425		(340)		167		(560)		9,743
Equity securities		72		(6)		1		(1)		--		--		66
Other investments:
Free-standing derivatives, net		(38)		(99)		--		38		--		--		(99)	(2)
Other assets		2		--		--		--		--		--		2
Total recurring Level 3 assets	$	10,309	$	(327)	$	426	$	(303)	$	167	$	(560)	$	9,712
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(90)	$	(30)	$	--	$	1	$	--	$	--	$	(119)
Total recurring Level 3 liabilities	$	(90)	$	(30)	$	--	$	1	$	--	$	--	$	(119)

(1)The effect to net income totals $(357) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(345) million in realized capital gains and losses, $22 million in net investment income, $(4) million in interest credited to contractholder funds and $(30) million in life and annuity contract benefits.

(2)Comprises $27 million of assets and $126 million of liabilities.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of December 31, 2009		Net income (1)		OCI on Statement of Financial Position		Purchases, sales, issuances and settlements, net		Transfers into Level 3		Transfers out of Level 3		Balance as of June 30, 2010
Assets
Fixed income securities:
Municipal	$	2,706	$	(47)	$	58	$	(452)	$	16	$	(84)	$	2,197
Corporate		2,241		(37)		101		34		163		(277)		2,225
Foreign government		20		--		--		(20)		--		--		--
RMBS		1,671		(169)		343		179		--		(14)		2,010
CMBS		1,404		(107)		300		(328)		24		(413)		880
ABS		2,001		18		99		472		--		(160)		2,430
Redeemable preferred stock		2		--		--		(1)		--		--		1
Total fixed income securities		10,045		(342)		901		(116)		203		(948)		9,743
Equity securities		69		(6)		4		3		--		(4)		66
Other investments:
Free-standing derivatives, net		55		(232)		--		78		--		--		(99)	(2)
Other assets		2		--		--		--		--		--		2
Total recurring Level 3 assets	$	10,171	$	(580)	$	905	$	(35)	$	203	$	(952)	$	9,712
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(110)	$	(12)	$	--	$	3	$	--	$	--	$	(119)
Total recurring Level 3 liabilities	$	(110)	$	(12)	$	--	$	3	$	--	$	--	$	(119)

(1)The effect to net income totals $(592) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(631) million in realized capital gains and losses, $54 million in net investment income, $(3) million in interest credited to contractholder funds and $(12) million in life and annuity contract benefits.

(2)Comprises $27 million of assets and $126 million of liabilities.

Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Assets
Fixed income securities:
Municipal	$	(5)	$	(31)	$	(15)	$	(43	)
Corporate		6		(14)		10		(50	)
RMBS		(27)		(106)		(63)		(164	)
CMBS		(11)		(19)		(16)		(43	)
ABS		5		14		7		15
Total fixed income securities		(32)		(156)		(77)		(285	)
Equity securities		--		(7)		(10)		(6	)
Other investments:
Free-standing derivatives, net		--		(55)		3		(141	)
Total recurring Level 3 assets	$	(32)	$	(218)	$	(84)	$	(432	)
Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(34)	$	(30)	$	(26)	$	(12	)
Total recurring Level 3 liabilities	$	(34)	$	(30)	$	(26)	$	(12	)

Schedule of carrying values and fair value estimates of financial instruments not carried at fair value

Financial assets

($ in millions)		June 30, 2011				December 31, 2010
		Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	6,827	$	6,879	$	6,679	$	6,439
Limited partnership interests - cost basis		1,408		1,704		1,348		1,481
Bank loans		354		351		363		355

Financial liabilities

($ in millions)		June 30, 2011				December 31, 2010
		Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	33,126	$	32,269	$	36,163	$	35,194
Long-term debt		5,907		6,222		5,908		6,325
Liability for collateral		907		907		484		484