Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below.



	September 30, 2013
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets:
Fixed maturity securities:
U.S. corporate	$	—	$	101,605	$	5,886	$	107,491
Foreign corporate	—		57,384		6,264		63,648
Foreign government	—		50,941		2,063		53,004
U.S. Treasury and agency	23,460		20,629		65		44,154
RMBS	657		31,803		3,018		35,478
CMBS	—		15,720		1,176		16,896
ABS	—		10,098		4,063		14,161
State and political subdivision	—		13,939		16		13,955
Total fixed maturity securities	24,117		302,119		22,551		348,787
Equity securities:
Common stock	1,102		983		185		2,270
Non-redeemable preferred stock	—		566		405		971
Total equity securities	1,102		1,549		590		3,241
FVO and trading securities:
Actively Traded Securities	4		621		11		636
FVO general account securities	5		139		47		191
FVO contractholder-directed unit-linked investments	10,302		4,888		606		15,796
FVO securities held by CSEs	—		23		—		23
Total FVO and trading securities	10,311		5,671		664		16,646
Short-term investments (1)	3,615		6,799		192		10,606
Mortgage loans:
Residential mortgage loans — FVO	—		—		212		212
Commercial mortgage loans held by CSEs	—		2,096		—		2,096
Mortgage loans held-for-sale (2)	—		—		—		—
Total mortgage loans	—		2,096		212		2,308
Other invested assets:
Other investments	161		78		—		239
Derivative assets: (3)
Interest rate	3		6,206		64		6,273
Foreign currency exchange rate	2		995		25		1,022
Credit	—		98		31		129
Equity market	30		1,543		304		1,877
Total derivative assets	35		8,842		424		9,301
Total other invested assets	196		8,920		424		9,540
Net embedded derivatives within asset host contracts (4)	—		—		322		322
Separate account assets (5)	35,689		218,144		1,417		255,250
Total assets	$	75,030	$	545,298	$	26,372	$	646,700
Liabilities:
Derivative liabilities: (3)
Interest rate	$	7	$	2,457	$	19	$	2,483
Foreign currency exchange rate	—		1,542		16		1,558
Credit	—		40		—		40
Equity market	4		918		555		1,477
Total derivative liabilities	11		4,957		590		5,558
Net embedded derivatives within liability host contracts (4)	—		7		375		382
Long-term debt of CSEs	—		1,920		26		1,946
Trading liabilities (6)	228		4		—		232
Total liabilities	$	239	$	6,888	$	991	$	8,118



	December 31, 2012
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets:
Fixed maturity securities:
U.S. corporate	$	—	$	106,693	$	7,433	$	114,126
Foreign corporate	—		60,976		6,208		67,184
Foreign government	—		55,522		1,814		57,336
U.S. Treasury and agency	27,441		20,455		71		47,967
RMBS	—		35,442		2,037		37,479
CMBS	—		17,982		1,147		19,129
ABS	—		12,341		3,656		15,997
State and political subdivision	—		14,994		54		15,048
Total fixed maturity securities	27,441		324,405		22,420		374,266
Equity securities:
Common stock	932		1,040		190		2,162
Non-redeemable preferred stock	—		310		419		729
Total equity securities	932		1,350		609		2,891
FVO and trading securities:
Actively Traded Securities	7		646		6		659
FVO general account securities	—		151		32		183
FVO contractholder-directed unit-linked investments	9,103		5,425		937		15,465
FVO securities held by CSEs	—		41		—		41
Total FVO and trading securities	9,110		6,263		975		16,348
Short-term investments (1)	9,426		6,295		429		16,150
Mortgage loans:
Residential mortgage loans — FVO	—		—		—		—
Commercial mortgage loans held by CSEs	—		2,666		—		2,666
Mortgage loans held-for-sale (2)	—		—		49		49
Total mortgage loans	—		2,666		49		2,715
Other invested assets:
Other investments	303		123		—		426
Derivative assets: (3)
Interest rate	1		9,648		206		9,855
Foreign currency exchange rate	4		819		44		867
Credit	—		47		43		90
Equity market	14		2,478		473		2,965
Total derivative assets	19		12,992		766		13,777
Total other invested assets	322		13,115		766		14,203
Net embedded derivatives within asset host contracts (4)	—		1		505		506
Separate account assets (5)	31,620		202,568		1,205		235,393
Total assets	$	78,851	$	556,663	$	26,958	$	662,472
Liabilities:
Derivative liabilities: (3)
Interest rate	$	38	$	3,001	$	29	$	3,068
Foreign currency exchange rate	—		1,521		7		1,528
Credit	—		39		—		39
Equity market	132		424		345		901
Total derivative liabilities	170		4,985		381		5,536
Net embedded derivatives within liability host contracts (4)	—		17		3,667		3,684
Long-term debt of CSEs	—		2,483		44		2,527
Trading liabilities (6)	163		—		—		163
Total liabilities	$	333	$	7,485	$	4,092	$	11,910

__________________


(1)	Short-term investments as presented in the tables above differ from the amounts presented in the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.


(2)	See “— Fair Value Option” for additional information on mortgage loans held-for-sale. The amounts in the preceding tables differ from the amounts presented in the consolidated balance sheets as these tables do not include mortgage loans that are stated at lower of amortized cost or estimated fair value.

(3)

Derivative assets are presented within other invested assets in the consolidated balance sheets and derivative liabilities are presented within other liabilities in the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation in the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4)

Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables in the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented primarily within PABs in the consolidated balance sheets. At September 30, 2013 and December 31, 2012, equity securities also included embedded derivatives of ($136) million and ($88) million, respectively.


(5)	Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets.


(6)	Trading liabilities are presented within other liabilities in the consolidated balance sheets.

Fair Value Inputs, Quantitative Information

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:



					September 30, 2013				December 31, 2012				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)	Impact of Increase in Input on Estimated Fair Value (2)
Fixed maturity securities: (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Delta spread adjustments (4)	(40)	-	240	66	(50)	-	500	90	Decrease
			•	Illiquidity premium (4)	30	-	30	30	30	-	30	30	Decrease
			•	Credit spreads (4)	(1,508)	-	711	195	(1,416)	-	876	272	Decrease
			•	Offered quotes (5)	—	-	134	101	—	-	348	115	Increase
	•	Consensus pricing	•	Offered quotes (5)	56	-	116	92	—	-	555	92	Increase
Foreign government	•	Matrix pricing	•	Credit spreads (4)	9	-	1,434	490	(58)	-	150	72	Decrease
	•	Market pricing	•	Quoted prices (5)	62	-	157	98	77	-	146	99	Increase
	•	Consensus pricing	•	Offered quotes (5)	90	-	152	112	82	-	200	117	Increase
RMBS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	(205)	-	3,662	295	9	-	2,980	521	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	22	-	100	97	13	-	109	100	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	37	-	100	90	28	-	100	75	Increase (6)
CMBS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	130	-	2,515	349	1	-	9,164	374	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	75	-	104	99	1	-	106	99	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	96	-	96	96					Increase (6)
ABS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	30	-	1,877	129	—	-	1,829	109	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	—	-	107	101	40	-	105	100	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	—	-	106	89	—	-	111	97	Increase (6)
Derivatives:
Interest rate	•	Present value techniques	•	Swap yield (7)	247	-	427		186	-	353		Increase (12)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (7)	193	-	769		228	-	795		Increase (12)
			•	Correlation (8)	38%	-	49%		43%	-	57%
Credit	•	Present value techniques	•	Credit spreads (9)	99	-	100		100	-	100		Decrease (9)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	14%	-	29%		13%	-	32%		Increase (12)
			•	Correlation (8)	60%	-	60%		65%	-	65%
Embedded derivatives:
Direct and assumed guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.14%		0%	-	0.14%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.88%		0.05%	-	0.88%		Decrease (13)
				Ages 61 - 115	0.26%	-	100%		0.26%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.50%	-	100%		0.50%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	2%	-	100%		2%	-	100%		Decrease (14)
			•	Utilization rates	20%	-	50%		20%	-	50%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0.07%	-	20%		(16)
			•	Long-term equity volatilities	15.20%	-	40%		15.18%	-	40%		Increase (17)
			•	Nonperformance risk spread	(0.19)%	-	1.01%		0.10%	-	1.72%		Decrease (18)

__________________


(1)	The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.


(2)	The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes are based on liability positions.


(3)	Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.


(4)	Range and weighted average are presented in basis points.


(5)	Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.


(6)	Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(7)

Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.


(8)	Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.


(9)	Represents the risk quoted in basis points of a credit default event on the underlying instrument. The range being provided is a single quoted spread in the valuation model. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.


(10)	At both September 30, 2013 and December 31, 2012, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.


(11)	Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.


(12)	Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.


(13)	Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14)

Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15)

The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16)

The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.


(17)	Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.


(18)	Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities:
	U.S. Corporate			Foreign Corporate			Foreign Government			U.S. Treasury and Agency			RMBS			CMBS			ABS			State and Political Subdivision
	(In millions)
Three Months Ended September 30, 2013:
Balance, beginning of period	$	5,918		$	6,008		$	1,971		$	82		$	2,735		$	1,050		$	3,758		$	41
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	3			5			(6		)	—			9			4			3			—
Net investment gains (losses)	4			(14		)	2			—			1			(1		)	5			—
Net derivative gains (losses)	—			—			—			—			—			—			—			—
Other revenues	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
Other expenses	—			—			—			—			—			—			—			—
OCI	(32		)	71			(42		)	—			(16		)	22			(4		)	—
Purchases (3)	297			684			209			—			563			305			636			—
Sales (3)	(249		)	(273		)	(61		)	(2		)	(138		)	(71		)	(309		)	(1		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			—
Transfers into Level 3 (4)	117			173			68			—			—			—			—			—
Transfers out of Level 3 (4)	(172		)	(390		)	(78		)	(15		)	(136		)	(133		)	(26		)	(24		)
Balance, end of period	$	5,886		$	6,264		$	2,063		$	65		$	3,018		$	1,176		$	4,063		$	16
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	2		$	5		$	(6	)	$	—		$	9		$	4		$	3		$	—
Net investment gains (losses)	$	—		$	(3	)	$	—		$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities:						FVO and Trading Securities:											Mortgage Loans:
	Common Stock			Non- redeemable Preferred Stock			Actively Traded Securities			FVO General Account Securities		FVO Contractholder- directed Unit-linked Investments			Short-term Investments			Residential Mortgage Loans - FVO			Mortgage Loans Held- for-sale
	(In millions)
Three Months Ended September 30, 2013:
Balance, beginning of period	$	183		$	408		$	11		$	46	$	593		$	344		$	150		$	—
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			1		(43		)	3			(2		)	—
Net investment gains (losses)	1			(4		)	—			—		—			(2		)	—			—
Net derivative gains (losses)	—			—			—			—		—			—			—			—
Other revenues	—			—			—			—		—			—			—			—
Policyholder benefits and claims	—			—			—			—		—			—			—			—
Other expenses	—			—			—			—		—			—			—			—
OCI	6			11			—			—		—			7			—			—
Purchases (3)	6			52			6			—		308			106			67			—
Sales (3)	(11		)	(42		)	(1		)	—		(232		)	(266		)	—			—
Issuances (3)	—			—			—			—		—			—			—			—
Settlements (3)	—			—			—			—		—			—			(3		)	—
Transfers into Level 3 (4)	1			—			—			—		—			—			—			—
Transfers out of Level 3 (4)	(1		)	(20		)	(5		)	—		(20		)	—			—			—
Balance, end of period	$	185		$	405		$	11		$	47	$	606		$	192		$	212		$	—
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	1	$	(1	)	$	2		$	(2	)	$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Net Derivatives: (6)
	Interest Rate			Foreign Currency Exchange Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)			Long-term Debt of CSEs
	(In millions)
Three Months Ended September 30, 2013:
Balance, beginning of period	$	98		$	6		$	25		$	(171	)	$	(678	)	$	1,225		$	(31	)
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			4			—
Net derivative gains (losses)	5			3			3			(85		)	888			—			—
Other revenues	—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			5			(30		)	—			—
Other expenses	—			—			—			—			—			—			—
OCI	(11		)	—			(1		)	—			(16		)	—			—
Purchases (3)	—			—			—			—			—			106			—
Sales (3)	—			—			—			—			—			(84		)	—
Issuances (3)	—			—			—			—			—			51			—
Settlements (3)	(47		)	1			4			—			(217		)	(2		)	5
Transfers into Level 3 (4)	—			—			—			—			—			162			—
Transfers out of Level 3 (4)	—			(1		)	—			—			—			(45		)	—
Balance, end of period	$	45		$	9		$	31		$	(251	)	$	(53	)	$	1,417		$	(26	)
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	5		$	6		$	3		$	(86	)	$	882		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	6		$	(29	)	$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities:
	U.S. Corporate			Foreign Corporate			Foreign Government			U.S. Treasury and Agency		RMBS			CMBS			ABS			State and Political Subdivision
	(In millions)
Three Months Ended September 30, 2012:
Balance, beginning of period	$	7,394		$	4,813		$	2,386		$	74	$	2,363		$	1,038		$	2,680		$	76
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	5			5			4			—		8			—			4			—
Net investment gains (losses)	(6		)	(13		)	6			—		(3		)	(1		)	—			—
Net derivative gains (losses)	—			—			—			—		—			—			—			—
Other revenues	—			—			—			—		—			—			—			—
Policyholder benefits and claims	—			—			—			—		—			—			—			—
Other expenses	—			—			—			—		—			—			—			—
OCI	323			135			43			—		108			7			32			1
Purchases (3)	442			630			370			—		249			416			215			15
Sales (3)	(348		)	(276		)	(254		)	—		(114		)	(249		)	(47		)	(6		)
Issuances (3)	—			—			—			—		—			—			—			—
Settlements (3)	—			—			—			—		—			—			—			—
Transfers into Level 3 (4)	128			172			51			—		11			26			2			—
Transfers out of Level 3 (4)	(239		)	(156		)	(16		)	—		(49		)	(23		)	(36		)	(21		)
Balance, end of period	$	7,699		$	5,310		$	2,590		$	74	$	2,573		$	1,214		$	2,850		$	65
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	3		$	5		$	5		$	—	$	8		$	—		$	4		$	—
Net investment gains (losses)	$	(3	)	$	(10	)	$	—		$	—	$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities:						FVO and Trading Securities:												Mortgage Loans:
	Common Stock			Non- redeemable Preferred Stock			Actively Traded Securities			FVO General Account Securities			FVO Contractholder- directed Unit-linked Investments			Short-term Investments			Residential Mortgage Loans - FVO		Mortgage Loans Held- for-sale
	(In millions)
Three Months Ended September 30, 2012:
Balance, beginning of period	$	282		$	432		$	13		$	26		$	1,096		$	717		$	—	$	211
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			7			32			1			—		—
Net investment gains (losses)	8			1			—			—			—			—			—		—
Net derivative gains (losses)	—			—			—			—			—			—			—		—
Other revenues	—			—			—			—			—			—			—		(23		)
Policyholder benefits and claims	—			—			—			—			—			—			—		—
Other expenses	—			—			—			—			—			—			—		—
OCI	(2		)	4			—			—			—			15			—		—
Purchases (3)	76			1			14			—			903			515			—		—
Sales (3)	(102		)	(60		)	(11		)	(2		)	(909		)	(337		)	—		(145		)
Issuances (3)	—			—			—			—			—			—			—		2
Settlements (3)	—			—			—			—			—			—			—		(10		)
Transfers into Level 3 (4)	—			48			—			—			1			186			—		30
Transfers out of Level 3 (4)	—			—			(2		)	—			(2		)	—			—		(1		)
Balance, end of period	$	262		$	426		$	14		$	31		$	1,121		$	1,097		$	—	$	64
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	6		$	6		$	—		$	—	$	—
Net investment gains (losses)	$	(1	)	$	—		$	—		$	—		$	—		$	—		$	—	$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	(22	)
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Net Derivatives: (6)
	Interest Rate			Foreign Currency Exchange Rate			Credit		Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)			Long-term Debt of CSEs			MSRs (9)			Liability Related to Securitized Reverse Mortgage Loans (9)
	(In millions)
Three Months Ended September 30, 2012:
Balance, beginning of period	$	228		$	40		$	24	$	575		$	(3,961	)	$	1,445		$	(81	)	$	564		$	(98	)
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—		—			—			—			—			—			—
Net investment gains (losses)	—			—			—		—			—			18			7			—			—
Net derivative gains (losses)	(7		)	20			16		(187		)	291			—			—			—			—
Other revenues	—			—			—		—			—			—			—			(37		)	—
Policyholder benefits and claims	—			—			—		11			(4		)	—			—			—			—
Other expenses	—			—			—		—			—			—			—			—			—
OCI	(16		)	—			—		1			(78		)	—			—			—			—
Purchases (3)	—			—			—		7			—			144			—			—			—
Sales (3)	—			—			—		—			—			(74		)	—			—			97
Issuances (3)	—			—			—		—			—			—			—			4			—
Settlements (3)	12			(2		)	—		(82		)	(170		)	—			26			(41		)	1
Transfers into Level 3 (4)	—			—			—		—			—			2			—			—			—
Transfers out of Level 3 (4)	—			—			—		—			—			(128		)	—			—			—
Balance, end of period	$	217		$	58		$	40	$	325		$	(3,922	)	$	1,407		$	(48	)	$	490		$	—
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—	$	—		$	—		$	—		$	7		$	—		$	—
Net derivative gains (losses)	$	(4	)	$	19		$	16	$	(195	)	$	283		$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—	$	—		$	—		$	—		$	—		$	(24	)	$	—
Policyholder benefits and claims	$	—		$	—		$	—	$	10		$	(3	)	$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities:
	U.S. Corporate			Foreign Corporate			Foreign Government			U.S. Treasury and Agency			RMBS			CMBS			ABS			State and Political Subdivision
	(In millions)
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	7,433		$	6,208		$	1,814		$	71		$	2,037		$	1,147		$	3,656		$	54
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	10			11			3			—			20			2			12			—
Net investment gains (losses)	(27		)	(34		)	8			—			4			(2		)	5			—
Net derivative gains (losses)	—			—			—			—			—			—			—			—
Other revenues	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
Other expenses	—			—			—			—			—			—			—			—
OCI	(38		)	(97		)	(104		)	(2		)	108			(28		)	(60		)	(1		)
Purchases (3)	824			1,364			551			—			1,155			549			1,510			1
Sales (3)	(907		)	(714		)	(105		)	(4		)	(242		)	(339		)	(651		)	(6		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			—
Transfers into Level 3 (4)	324			254			91			—			12			113			—			—
Transfers out of Level 3 (4)	(1,733		)	(728		)	(195		)	—			(76		)	(266		)	(409		)	(32		)
Balance, end of period	$	5,886		$	6,264		$	2,063		$	65		$	3,018		$	1,176		$	4,063		$	16
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	9		$	10		$	3		$	—		$	26		$	2		$	10		$	—
Net investment gains (losses)	$	(34	)	$	(3	)	$	—		$	—		$	(1	)	$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities:						FVO and Trading Securities:												Mortgage Loans:
	Common Stock			Non- redeemable Preferred Stock			Actively Traded Securities			FVO General Account Securities			FVO Contractholder- directed Unit-linked Investments			Short-term Investments			Residential Mortgage Loans - FVO			Mortgage Loans Held- for-sale
	(In millions)
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	190		$	419		$	6		$	32		$	937		$	429		$	—		$	49
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			6			(12		)	3			(2		)	—
Net investment gains (losses)	2			(28		)	—			—			—			(24		)	—			—
Net derivative gains (losses)	—			—			—			—			—			—			—			—
Other revenues	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
Other expenses	—			—			—			—			—			—			—			—
OCI	—			77			—			—			—			15			—			—
Purchases (3)	11			55			8			—			348			189			214			—
Sales (3)	(15		)	(118		)	—			(5		)	(430		)	(414		)	—			(45		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			(4		)
Transfers into Level 3 (4)	1			—			—			14			57			—			—			—
Transfers out of Level 3 (4)	(4		)	—			(3		)	—			(294		)	(6		)	—			—
Balance, end of period	$	185		$	405		$	11		$	47		$	606		$	192		$	212		$	—
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	6		$	(5	)	$	2		$	(2	)	$	—
Net investment gains (losses)	$	(1	)	$	(17	)	$	—		$	—		$	—		$	(1	)	$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Net Derivatives: (6)
	Interest Rate			Foreign Currency Exchange Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)			Long-term Debt of CSEs
	(In millions)
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	177		$	37		$	43		$	128		$	(3,162	)	$	1,205		$	(44	)
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			25			(1		)
Net derivative gains (losses)	(23		)	(30		)	(12		)	(390		)	3,609			—			—
Other revenues	—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			15			(110		)	—			—
Other expenses	—			—			—			—			—			—			—
OCI	(83		)	—			—			(1		)	193			—			—
Purchases (3)	—			—			—			4			—			249			—
Sales (3)	—			—			—			—			—			(223		)	—
Issuances (3)	—			—			—			—			—			71			—
Settlements (3)	(27		)	2			—			(7		)	(583		)	—			19
Transfers into Level 3 (4)	—			—			—			—			—			161			—
Transfers out of Level 3 (4)	1			—			—			—			—			(71		)	—
Balance, end of period	$	45		$	9		$	31		$	(251	)	$	(53	)	$	1,417		$	(26	)
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	(1	)
Net derivative gains (losses)	$	(14	)	$	(28	)	$	(11	)	$	(390	)	$	3,589		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	15		$	(106	)	$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities:
	U.S. Corporate			Foreign Corporate			Foreign Government			U.S. Treasury and Agency			RMBS			CMBS			ABS			State and Political Subdivision
	(In millions)
Nine Months Ended September 30, 2012:
Balance, beginning of period	$	6,784		$	4,370		$	2,322		$	31		$	1,602		$	753		$	1,850		$	53
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	10			16			4			—			20			7			14			—
Net investment gains (losses)	4			(68		)	(1		)	—			(7		)	(37		)	2			—
Net derivative gains (losses)	—			—			—			—			—			—			—			—
Other revenues	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
Other expenses	—			—			—			—			—			—			—			—
OCI	351			233			26			—			149			21			19			4
Purchases (3)	1,371			1,535			1,003			49			1,060			695			1,293			15
Sales (3)	(865		)	(708		)	(467		)	(6		)	(315		)	(253		)	(286		)	(7		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			—
Transfers into Level 3 (4)	266			254			53			—			76			40			6			—
Transfers out of Level 3 (4)	(222		)	(322		)	(350		)	—			(12		)	(12		)	(48		)	—
Balance, end of period	$	7,699		$	5,310		$	2,590		$	74		$	2,573		$	1,214		$	2,850		$	65
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	8		$	18		$	12		$	—		$	20		$	2		$	14		$	—
Net investment gains (losses)	$	(6	)	$	(27	)	$	—		$	—		$	(3	)	$	(4	)	$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities:						FVO and Trading Securities:											Mortgage Loans:
	Common Stock			Non- redeemable Preferred Stock			Actively Traded Securities		FVO General Account Securities			FVO Contractholder- directed Unit-linked Investments			Short-term Investments			Residential Mortgage Loans - FVO		Mortgage Loans Held- for-sale
	(In millions)
Nine Months Ended September 30, 2012:
Balance, beginning of period	$	281		$	438		$	—	$	23		$	1,386		$	590		$	—	$	1,414
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—		10			12			1			—		—
Net investment gains (losses)	(1		)	1			—		—			—			—			—		—
Net derivative gains (losses)	—			—			—		—			—			—			—		—
Other revenues	—			—			—		—			—			—			—		(31		)
Policyholder benefits and claims	—			—			—		—			—			—			—		—
Other expenses	—			—			—		—			—			—			—		—
OCI	7			23			—		—			—			10			—		—
Purchases (3)	111			5			14		—			918			1,059			—		1
Sales (3)	(126		)	(89		)	—		(2		)	(1,159		)	(455		)	—		(1,348		)
Issuances (3)	—			—			—		—			—			—			—		6
Settlements (3)	—			—			—		—			—			—			—		(46		)
Transfers into Level 3 (4)	3			48			—		—			2			—			—		72
Transfers out of Level 3 (4)	(13		)	—			—		—			(38		)	(108		)	—		(4		)
Balance, end of period	$	262		$	426		$	14	$	31		$	1,121		$	1,097		$	—	$	64
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—	$	9		$	1		$	(1	)	$	—	$	—
Net investment gains (losses)	$	(11	)	$	—		$	—	$	—		$	—		$	—		$	—	$	—
Net derivative gains (losses)	$	—		$	—		$	—	$	—		$	—		$	—		$	—	$	—
Other revenues	$	—		$	—		$	—	$	—		$	—		$	—		$	—	$	(25	)
Policyholder benefits and claims	$	—		$	—		$	—	$	—		$	—		$	—		$	—	$	—
Other expenses	$	—		$	—		$	—	$	—		$	—		$	—		$	—	$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Net Derivatives: (6)
	Interest Rate			Foreign Currency Exchange Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)			Long-term Debt of CSEs			MSRs (9)			Liability Related to Securitized Reverse Mortgage Loans (9)
	(In millions)
Nine Months Ended September 30, 2012:
Balance, beginning of period	$	300		$	44		$	1		$	889		$	(4,203	)	$	1,325		$	(116	)	$	666		$	(1,175	)
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			95			(2		)	—			—
Net derivative gains (losses)	16			30			44			(470		)	802			—			—			—			—
Other revenues	(67		)	—			—			—			—			—			—			(122		)	1
Policyholder benefits and claims	—			—			—			22			(9		)	—			—			—			—
Other expenses	—			—			—			—			—			—			—			—			—
OCI	13			—			—			(1		)	(39		)	—			—			—			—
Purchases (3)	—			—			—			16			—			294			—			—			—
Sales (3)	—			—			—			—			—			(289		)	—			—			1,149
Issuances (3)	—			—			(3		)	—			—			1			—			109			—
Settlements (3)	(45		)	(16		)	(3		)	(131		)	(473		)	(3		)	70			(163		)	23
Transfers into Level 3 (4)	—			—			—			—			—			25			—			—			—
Transfers out of Level 3 (4)	—			—			1			—			—			(41		)	—			—			2
Balance, end of period	$	217		$	58		$	40		$	325		$	(3,922	)	$	1,407		$	(48	)	$	490		$	—
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	(2	)	$	—		$	—
Net derivative gains (losses)	$	2		$	10		$	43		$	(474	)	$	781		$	—		$	—		$	—		$	—
Other revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(88	)	$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	22		$	(7	)	$	—		$	—		$	—		$	—
Other expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

__________________

(1)

Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities and certain mortgage loans are included in net investment gains (losses) while changes in the estimated fair value of certain mortgage loans and MSRs are included in other revenues. Lapses associated with net embedded derivatives are included in net derivative gains (losses).


(2)	Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.


(3)	Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.


(4)	Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.


(5)	Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods.


(6)	Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.


(7)	Embedded derivative assets and liabilities are presented net for purposes of the rollforward.


(8)	Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses).

(9)

See Note 3 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report for a discussion of the MetLife Bank Divestiture. See Note 10 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report for discussion of the valuation techniques and key inputs. Other revenues related to MSRs represent the changes in estimated fair value due to changes in valuation model inputs or assumptions.

Fair Value, Option, Quantitative Disclosures

The following table presents information for certain assets and liabilities accounted for under the FVO. These assets and liabilities were initially measured at fair value.



	Residential Mortgage Loans — FVO (1)					Mortgage Loans Held-for-Sale (2)					Certain Assets and Liabilities of CSEs (3)
	September 30, 2013			December 31, 2012		September 30, 2013		December 31, 2012			September 30, 2013		December 31, 2012
	(In millions)
Assets:
Unpaid principal balance	$	325		$	—	$	—	$	80		$	2,020	$	2,539
Difference between estimated fair value and unpaid principal balance	(113		)	—		—		(31		)	76		127
Carrying value at estimated fair value	$	212		$	—	$	—	$	49		$	2,096	$	2,666
Loans in non-accrual status	$	—		$	—	$	—	$	3		$	—	$	—
Loans more than 90 days past due	$	—		$	—	$	—	$	23		$	—	$	—
Loans in non-accrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	—		$	—	$	—	$	(14	)	$	—	$	—
Liabilities:
Contractual principal balance											$	1,918	$	2,430
Difference between estimated fair value and contractual principal balance											28		97
Carrying value at estimated fair value											$	1,946	$	2,527

__________________


(1)	Interest income, changes in estimated fair value and gains or losses on sales are recognized in net investment income. Changes in estimated fair value for these loans were due to the following:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
	(In millions)
Instrument-specific credit risk based on changes in credit spreads for non-agency loans and adjustments in individual loan quality	$	—		$	—	$	—		$	—
Other changes in estimated fair value	(2		)	—		(2		)	—
Total gains (losses) recognized in net investment income	$	(2	)	$	—	$	(2	)	$	—


(2)	Interest income is included in net investment income. Gains and losses from initial measurement, subsequent changes in estimated fair value and gains or losses on sales are recognized in other revenues. Changes in estimated fair value for these loans were due to the following:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
	(In millions)
Instrument-specific credit risk based on changes in credit spreads for non-agency loans and adjustments in individual loan quality	$	—	$	(2	)	$	—	$	—
Other changes in estimated fair value	—		(27		)	—		71
Total gains (losses) recognized in other revenues	$	—	$	(29	)	$	—	$	71

(3)

These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs is recognized in net investment income. Interest expense from long-term debt of CSEs is recognized in other expenses.

Estimated fair value of certain investments

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates; that is, they are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).



	At September 30,				Three Months Ended September 30,						Nine Months Ended September 30,
	2013		2012		2013			2012			2013			2012
	Carrying Value After Measurement				Gains (Losses)
	(In millions)
Mortgage loans: (1)
Held-for-investment	$	232	$	379	$	(4	)	$	(4	)	$	13		$	9
Held-for-sale	$	—	$	174	$	—		$	(10	)	$	—		$	(39	)
Other limited partnership interests (2)	$	70	$	61	$	—		$	(9	)	$	(39	)	$	(23	)
Real estate joint ventures (3)	$	3	$	10	$	—		$	—		$	(2	)	$	(5	)
Goodwill (4)	$	—	$	—	$	—		$	(1,868	)	$	—		$	(1,868	)

__________________


(1)	Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows.

(2)

For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both September 30, 2013 and 2012 were not significant.

(3)

For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include several real estate funds that typically invest primarily in commercial real estate and mezzanine debt. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next one to 10 years. Unfunded commitments for these investments at both September 30, 2013 and 2012 were not significant.


(4)	As discussed in Note 11 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report, the Company recorded an impairment of goodwill associated with the Retail Annuities reporting unit. This impairment has been categorized as Level 3 due to the significant unobservable inputs used in the determination of the estimated fair value.

Fair value of financial instruments

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:



	September 30, 2013
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2			Level 3			Total Estimated Fair Value
	(In millions)
Assets:
Mortgage loans:
Held-for-investment	$	55,200	$	—	$	—		$	57,639		$	57,639
Held-for-sale	225		—		—			225			225
Mortgage loans, net	$	55,425	$	—	$	—		$	57,864		$	57,864
Policy loans	$	11,782	$	—	$	1,701		$	11,900		$	13,601
Real estate joint ventures	$	107	$	—	$	—		$	177		$	177
Other limited partnership interests	$	1,013	$	—	$	—		$	1,171		$	1,171
Other invested assets	$	855	$	234	$	276		$	345		$	855
Premiums, reinsurance and other receivables	$	4,470	$	—	$	2,080		$	2,466		$	4,546
Other assets	$	276	$	—	$	211		$	94		$	305
Liabilities:
PABs	$	140,721	$	—	$	—		$	147,010		$	147,010
Bank deposits	$	—	$	—	$	—		$	—		$	—
Long-term debt	$	16,275	$	—	$	17,889		$	—		$	17,889
Collateral financing arrangements	$	4,196	$	—	$	—		$	3,947		$	3,947
Junior subordinated debt securities	$	3,193	$	—	$	3,738		$	—		$	3,738
Other liabilities	$	3,428	$	—	$	2,161		$	1,270		$	3,431
Separate account liabilities	$	62,984	$	—	$	62,984		$	—		$	62,984
Commitments: (1)
Mortgage loan commitments	$	—	$	—	$	—		$	(14	)	$	(14	)
Commitments to fund bank credit facilities, bridge loans and private corporate bond investments	$	—	$	—	$	(1	)	$	—		$	(1	)



	December 31, 2012
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets:
Mortgage loans:
Held-for-investment	$	53,926	$	—	$	—	$	57,381	$	57,381
Held-for-sale	365		—		—		365		365
Mortgage loans, net	$	54,291	$	—	$	—	$	57,746	$	57,746
Policy loans	$	11,884	$	—	$	1,690	$	12,567	$	14,257
Real estate joint ventures	$	113	$	—	$	—	$	171	$	171
Other limited partnership interests	$	1,154	$	—	$	—	$	1,277	$	1,277
Other invested assets	$	815	$	305	$	144	$	366	$	815
Premiums, reinsurance and other receivables	$	3,287	$	—	$	745	$	2,960	$	3,705
Other assets	$	260	$	—	$	214	$	78	$	292
Liabilities:
PABs	$	149,928	$	—	$	—	$	158,040	$	158,040
Bank deposits	$	6,416	$	—	$	2,018	$	4,398	$	6,416
Long-term debt	$	16,502	$	—	$	18,978	$	—	$	18,978
Collateral financing arrangements	$	4,196	$	—	$	—	$	3,839	$	3,839
Junior subordinated debt securities	$	3,192	$	—	$	3,984	$	—	$	3,984
Other liabilities	$	1,913	$	—	$	673	$	1,243	$	1,916
Separate account liabilities	$	58,726	$	—	$	58,726	$	—	$	58,726
Commitments: (1)
Mortgage loan commitments	$	—	$	—	$	—	$	12	$	12
Commitments to fund bank credit facilities, bridge loans and private corporate bond investments	$	—	$	—	$	22	$	—	$	22

__________________


(1)	Commitments are off-balance sheet obligations. Negative estimated fair values represent off-balance sheet liabilities. See Note 15 for additional information on these off-balance sheet obligations.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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