Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014
	Fair Value Hierarchy
	Level 1		Level 2		Level 3			Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	100,634	$	7,340		$	107,974
Foreign corporate	—		55,644		6,233			61,877
Foreign government	—		55,118		1,278			56,396
U.S. Treasury and agency	34,150		22,712		—			56,862
RMBS	1,513		35,100		4,006			40,619
CMBS	—		14,015		634			14,649
ABS	—		11,574		3,279			14,853
State and political subdivision	—		14,836		4			14,840
Total fixed maturity securities	35,663		309,633		22,774			368,070
Equity securities:
Common stock	1,606		867		101			2,574
Non-redeemable preferred stock	—		868		247			1,115
Total equity securities	1,606		1,735		348			3,689
FVO and trading securities:
Actively Traded Securities	—		664		8			672
FVO general account securities	528		63		99			690
FVO contractholder-directed unit-linked investments	11,174		4,204		488			15,866
FVO securities held by CSEs	—		6		12			18
Total FVO and trading securities	11,702		4,937		607			17,246
Short-term investments (1)	4,066		6,483		155			10,704
Mortgage loans:
Residential mortgage loans — FVO	—		—		298			298
Commercial mortgage loans held by CSEs — FVO	—		313		—			313
Total mortgage loans	—		313		298			611
Other invested assets:
Other investments	241		65		—			306
Derivative assets: (2)
Interest rate	4		6,770		49			6,823
Foreign currency exchange rate	—		1,517		27			1,544
Credit	—		150		13			163
Equity market	24		1,294		323			1,641
Total derivative assets	28		9,731		412			10,171
Total other invested assets	269		9,796		412			10,477
Net embedded derivatives within asset host contracts (3)	—		—		361			361
Separate account assets (4)	87,799		229,790		1,891			319,480
Total assets	$	141,105	$	562,687	$	26,846		$	730,638
Liabilities
Derivative liabilities: (2)
Interest rate	$	5	$	1,910	$	2		$	1,917
Foreign currency exchange rate	2		1,402		81			1,485
Credit	—		35		5			40
Equity market	5		1,050		669			1,724
Total derivative liabilities	12		4,397		757			5,166
Net embedded derivatives within liability host contracts (3)	—		7		(504		)	(497		)
Long-term debt of CSEs — FVO	—		171		15			186
Trading liabilities (5)	118		78		—			196
Total liabilities	$	130	$	4,653	$	268		$	5,051



	December 31, 2013
	Fair Value Hierarchy
	Level 1		Level 2		Level 3			Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	99,321	$	7,148		$	106,469
Foreign corporate	—		56,448		6,704			63,152
Foreign government	—		52,202		2,235			54,437
U.S. Treasury and agency	25,061		20,000		62			45,123
RMBS	—		32,098		2,957			35,055
CMBS	—		15,578		972			16,550
ABS	—		11,361		4,210			15,571
State and political subdivision	—		13,820		10			13,830
Total fixed maturity securities	25,061		300,828		24,298			350,187
Equity securities:
Common stock	1,186		990		177			2,353
Non-redeemable preferred stock	—		654		395			1,049
Total equity securities	1,186		1,644		572			3,402
FVO and trading securities:
Actively Traded Securities	2		648		12			662
FVO general account securities	518		80		29			627
FVO contractholder-directed unit-linked investments	10,702		4,806		603			16,111
FVO securities held by CSEs	—		23		—			23
Total FVO and trading securities	11,222		5,557		644			17,423
Short-term investments (1)	5,915		6,943		254			13,112
Mortgage loans:
Residential mortgage loans — FVO	—		—		338			338
Commercial mortgage loans held by CSEs — FVO	—		1,598		—			1,598
Total mortgage loans	—		1,598		338			1,936
Other invested assets:
Other investments	188		71		—			259
Derivative assets: (2)
Interest rate	10		5,557		27			5,594
Foreign currency exchange rate	1		1,280		28			1,309
Credit	—		144		29			173
Equity market	1		1,233		285			1,519
Total derivative assets	12		8,214		369			8,595
Total other invested assets	200		8,285		369			8,854
Net embedded derivatives within asset host contracts (3)	—		—		285			285
Separate account assets (4)	89,960		225,776		1,465			317,201
Total assets	$	133,544	$	550,631	$	28,225		$	712,400
Liabilities
Derivative liabilities: (2)
Interest rate	$	9	$	2,568	$	14		$	2,591
Foreign currency exchange rate	1		1,971		39			2,011
Credit	—		52		—			52
Equity market	43		1,222		602			1,867
Total derivative liabilities	53		5,813		655			6,521
Net embedded derivatives within liability host contracts (3)	—		4		(973		)	(969		)
Long-term debt of CSEs — FVO	—		1,427		28			1,455
Trading liabilities (5)	260		2		—			262
Total liabilities	$	313	$	7,246	$	(290	)	$	7,269

__________________


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

(2)

Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on 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.

(3)

Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within PABs, future policy benefits and other liabilities on the consolidated balance sheets. At September 30, 2014 and December 31, 2013, equity securities also included embedded derivatives of ($176) million and ($145) million, respectively.


(4)	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.


(5)	Trading liabilities are presented within other liabilities on 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, 2014				December 31, 2013				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)	(20)	-	250	51	(10)	-	240	46	Decrease
			•	Illiquidity premium (4)	30	-	30	30	30	-	30	30	Decrease
			•	Credit spreads (4)	(1,471)	-	3,117	184	(1,489)	-	876	174	Decrease
			•	Offered quotes (5)	—	-	121	92	4	-	145	100	Increase
	•	Market pricing	•	Quoted prices (5)	—	-	750	158					Increase
	•	Consensus pricing	•	Offered quotes (5)	31	-	126	107	33	-	145	95	Increase
Foreign government	•	Matrix pricing	•	Credit spreads (4)	48	-	48	48	4	-	72	32	Decrease
	•	Market pricing	•	Quoted prices (5)	1	-	163	81	64	-	156	100	Increase
	•	Consensus pricing	•	Offered quotes (5)	66	-	122	108	84	-	156	107	Increase
RMBS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	45	-	413	225	(136)	-	3,609	288	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	22	-	120	95	10	-	109	98	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	1	-	116	93	69	-	101	93	Increase (6)
CMBS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)					215	-	2,025	409	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	5	-	112	101	70	-	104	97	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	100	-	100	100	90	-	101	95	Increase (6)
ABS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	31	-	1,878	152	30	-	1,878	145	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	—	-	110	100	—	-	110	101	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	100	-	100	100	56	-	106	98	Increase (6)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (7)	324	-	351		248	-	450		Increase (12)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (7)	(12)	-	1,012		97	-	767		Increase (12)
			•	Correlation (8)	43%	-	55%		38%	-	47%
Credit	•	Present value techniques	•	Credit spreads (9)	98	-	101		98	-	101		Decrease (9)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	14%	-	28%		13%	-	28%		Increase (12)
			•	Correlation (8)	65%	-	65%		60%	-	60%
Embedded derivatives
Direct and assumed guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.28%		0%	-	0.14%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.88%		0.04%	-	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%	-	40%		(16)
			•	Long-term equity volatilities	7.30%	-	33%		9.14%	-	40%		Increase (17)
			•	Nonperformance risk spread	(0.16)%	-	0.77%		(1.08)%	-	0.83%		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. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.


(10)	At both September 30, 2014 and December 31, 2013, 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 Inputs, Quantitative Information



					September 30, 2014				December 31, 2013				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)	(20)	-	250	51	(10)	-	240	46	Decrease
			•	Illiquidity premium (4)	30	-	30	30	30	-	30	30	Decrease
			•	Credit spreads (4)	(1,471)	-	3,117	184	(1,489)	-	876	174	Decrease
			•	Offered quotes (5)	—	-	121	92	4	-	145	100	Increase
	•	Market pricing	•	Quoted prices (5)	—	-	750	158					Increase
	•	Consensus pricing	•	Offered quotes (5)	31	-	126	107	33	-	145	95	Increase
Foreign government	•	Matrix pricing	•	Credit spreads (4)	48	-	48	48	4	-	72	32	Decrease
	•	Market pricing	•	Quoted prices (5)	1	-	163	81	64	-	156	100	Increase
	•	Consensus pricing	•	Offered quotes (5)	66	-	122	108	84	-	156	107	Increase
RMBS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	45	-	413	225	(136)	-	3,609	288	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	22	-	120	95	10	-	109	98	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	1	-	116	93	69	-	101	93	Increase (6)
CMBS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)					215	-	2,025	409	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	5	-	112	101	70	-	104	97	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	100	-	100	100	90	-	101	95	Increase (6)
ABS	•	Matrix pricing and discounted cash flow	•	Credit spreads (4)	31	-	1,878	152	30	-	1,878	145	Decrease (6)
	•	Market pricing	•	Quoted prices (5)	—	-	110	100	—	-	110	101	Increase (6)
	•	Consensus pricing	•	Offered quotes (5)	100	-	100	100	56	-	106	98	Increase (6)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (7)	324	-	351		248	-	450		Increase (12)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (7)	(12)	-	1,012		97	-	767		Increase (12)
			•	Correlation (8)	43%	-	55%		38%	-	47%
Credit	•	Present value techniques	•	Credit spreads (9)	98	-	101		98	-	101		Decrease (9)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	14%	-	28%		13%	-	28%		Increase (12)
			•	Correlation (8)	65%	-	65%		60%	-	60%
Embedded derivatives
Direct and assumed guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.28%		0%	-	0.14%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.88%		0.04%	-	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%	-	40%		(16)
			•	Long-term equity volatilities	7.30%	-	33%		9.14%	-	40%		Increase (17)
			•	Nonperformance risk spread	(0.16)%	-	0.77%		(1.08)%	-	0.83%		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)


(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. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.


(10)	At both September 30, 2014 and December 31, 2013, 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)

(15)

(16)


(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, 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, 2014
Balance, beginning of period	$	7,369		$	6,612		$	1,672		$	320		$	3,945		$	595		$	3,786		$	35
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	2			7			4			—			11			2			1			—
Net investment gains (losses)	(1		)	(5		)	—			—			—			(13		)	—			—
Net derivative gains (losses)	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
OCI	14			(179		)	(32		)	—			28			9			(5		)	(1		)
Purchases (3)	645			449			114			—			708			58			1,164			—
Sales (3)	(198		)	(145		)	(29		)	—			(340		)	(64		)	(177		)	(7		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			—
Transfers into Level 3 (4)	10			124			167			—			—			62			74			—
Transfers out of Level 3 (4)	(501		)	(630		)	(618		)	(320		)	(346		)	(15		)	(1,564		)	(23		)
Balance, end of period	$	7,340		$	6,233		$	1,278		$	—		$	4,006		$	634		$	3,279		$	4
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	2		$	7		$	4		$	—		$	10		$	—		$	1		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	(13	)	$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	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			FVO Securities Held by CSEs		Short-term Investments			Residential Mortgage Loans - FVO			Mortgage Loans Held- for-sale
	(In millions)
Three Months Ended September 30, 2014
Balance, beginning of period	$	186		$	263		$	20		$	109		$	571		$	11	$	246		$	367		$	—
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			(4		)	(22		)	—		1			4			—
Net investment gains (losses)	—			2			—			—			—			—		—			—			—
Net derivative gains (losses)	—			—			—			—			—			—		—			—			—
Policyholder benefits and claims	—			—			—			—			—			—		—			—			—
OCI	(37		)	(5		)	—			—			—			—		—			—			—
Purchases (3)	3			—			3			—			169			—		114			3			—
Sales (3)	(10		)	(13		)	(15		)	(6		)	(288		)	—		(131		)	(63		)	—
Issuances (3)	—			—			—			—			—			—		—			—			—
Settlements (3)	—			—			—			—			—			—		—			(13		)	—
Transfers into Level 3 (4)	1			—			—			—			89			1		—			—			—
Transfers out of Level 3 (4)	(42		)	—			—			—			(31		)	—		(75		)	—			—
Balance, end of period	$	101		$	247		$	8		$	99		$	488		$	12	$	155		$	298		$	—
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	(16	)	$	—	$	1		$	4		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—



	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 — FVO
	(In millions)
Three Months Ended September 30, 2014
Balance, beginning of period	$	36		$	(3	)	$	17		$	(395	)	$	1,020		$	1,691		$	(15	)
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			30			(1		)
Net derivative gains (losses)	(9		)	(68		)	(8		)	50			(58		)	—			—
Policyholder benefits and claims	—			—			—			(3		)	32			—			—
OCI	20			2			—			2			102			—			—
Purchases (3)	—			—			—			—			—			117			—
Sales (3)	—			—			—			—			—			(129		)	—
Issuances (3)	(2		)	—			(1		)	—			—			1			—
Settlements (3)	2			15			—			—			(231		)	—			1
Transfers into Level 3 (4)	—			—			—			—			—			219			—
Transfers out of Level 3 (4)	—			—			—			—			—			(38		)	—
Balance, end of period	$	47		$	(54	)	$	8		$	(346	)	$	865		$	1,891		$	(15	)
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	(1	)
Net derivative gains (losses)	$	1		$	(52	)	$	(8	)	$	50		$	(65	)	$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	(3	)	$	31		$	—		$	—



	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)	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
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)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	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			FVO Securities Held by CSEs		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)	—			—			—			—		—			—		—			—			—
Policyholder benefits and claims	—			—			—			—		—			—		—			—			—
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)	$	—		$	—		$	—		$	—	$	—		$	—	$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—	$	—		$	—	$	—		$	—		$	—



	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 — FVO
	(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			—			—
Policyholder benefits and claims	—			—			—			5			(30		)	—			—
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		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	6		$	(29	)	$	—		$	—



	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, 2014
Balance, beginning of period	$	7,148		$	6,704		$	2,235		$	62		$	2,957		$	972		$	4,210		$	10
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	7			16			106			—			34			2			6			—
Net investment gains (losses)	(6		)	(8		)	(4		)	—			8			(14		)	(39		)	—
Net derivative gains (losses)	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
OCI	276			277			(104		)	—			96			(21		)	56			—
Purchases (3)	1,213			893			265			—			1,278			133			2,369			—
Sales (3)	(746		)	(516		)	(160		)	—			(443		)	(270		)	(793		)	—
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			—
Transfers into Level 3 (4)	261			281			189			—			146			73			37			4
Transfers out of Level 3 (4)	(813		)	(1,414		)	(1,249		)	(62		)	(70		)	(241		)	(2,567		)	(10		)
Balance, end of period	$	7,340		$	6,233		$	1,278		$	—		$	4,006		$	634		$	3,279		$	4
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	4		$	15		$	7		$	—		$	34		$	(1	)	$	2		$	—
Net investment gains (losses)	$	(7	)	$	(2	)	$	—		$	—		$	(1	)	$	(13	)	$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	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			FVO Securities Held by CSEs			Short-term Investments			Residential Mortgage Loans - FVO			Mortgage Loans Held- for-sale
	(In millions)
Nine Months Ended September 30, 2014
Balance, beginning of period	$	177		$	395		$	12		$	29		$	603		$	—		$	254		$	338		$	—
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			7			6			—			3			15			—
Net investment gains (losses)	13			4			—			—			—			—			(2		)	—			—
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—			—
OCI	(78		)	6			—			—			—			—			(1		)	—			—
Purchases (3)	28			—			8			—			290			—			126			49			—
Sales (3)	(40		)	(58		)	(7		)	(6		)	(449		)	(2		)	(205		)	(78		)	—
Issuances (3)	—			—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			—			—			—			—			(26		)	—
Transfers into Level 3 (4)	1			—			—			69			60			14			—			—			—
Transfers out of Level 3 (4)	—			(100		)	(5		)	—			(22		)	—			(20		)	—			—
Balance, end of period	$	101		$	247		$	8		$	99		$	488		$	12		$	155		$	298		$	—
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	11		$	—		$	—		$	1		$	15		$	—
Net investment gains (losses)	$	(2	)	$	(3	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	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 — FVO
	(In millions)
Nine Months Ended September 30, 2014
Balance, beginning of period	$	13		$	(11	)	$	29		$	(317	)	$	1,258		$	1,465		$	(28	)
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			99			(1		)
Net derivative gains (losses)	16			(59		)	(17		)	(39		)	102			—			—
Policyholder benefits and claims	—			—			—			4			55			—			—
OCI	69			2			—			2			78			—			—
Purchases (3)	—			—			—			4			—			510			—
Sales (3)	—			—			—			—			—			(337		)	—
Issuances (3)	(2		)	—			(4		)	—			—			82			—
Settlements (3)	(49		)	14			—			—			(628		)	(28		)	14
Transfers into Level 3 (4)	—			—			—			—			—			147			—
Transfers out of Level 3 (4)	—			—			—			—			—			(47		)	—
Balance, end of period	$	47		$	(54	)	$	8		$	(346	)	$	865		$	1,891		$	(15	)
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	(1	)
Net derivative gains (losses)	$	1		$	(45	)	$	(15	)	$	(38	)	$	103		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	4		$	55		$	—		$	—



	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)	—			—			—			—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—			—			—			—
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)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—



	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			FVO Securities Held by CSEs		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)	—			—			—			—			—			—		—			—			—
Policyholder benefits and claims	—			—			—			—			—			—		—			—			—
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)	$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—



	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 — FVO
	(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			—			—
Policyholder benefits and claims	—			—			—			15			(110		)	—			—
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		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	15		$	(106	)	$	—		$	—

__________________

(1)

Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities and mortgage loans held-for-sale are included in net investment gains (losses), while changes in estimated fair value of mortgage loans - FVO are included in net investment income. 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).

Fair Value Option

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)						Certain Assets and Liabilities of CSEs — FVO (2)
	September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013
	(In millions)
Assets
Unpaid principal balance	$	438		$	508		$	257		$	1,528
Difference between estimated fair value and unpaid principal balance	(140		)	(170		)	56			70
Carrying value at estimated fair value	$	298		$	338		$	313		$	1,598
Loans in non-accrual status	$	109		$	—		$	—		$	—
Loans more than 90 days past due	$	74		$	81		$	—		$	—
Loans in non-accrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(82	)	$	(82	)	$	—		$	—
Liabilities
Contractual principal balance							$	195		$	1,445
Difference between estimated fair value and contractual principal balance							(9		)	10
Carrying value at estimated fair value							$	186		$	1,455

__________________


(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,
	2014		2013			2014		2013
	(In millions)
Instrument-specific credit risk based on changes in credit spreads for non-agency loans and adjustments in individual loan quality	$	3	$	—		$	8	$	—
Other changes in estimated fair value	1		(2		)	5		(2		)
Total gains (losses) recognized in net investment income	$	4	$	(2	)	$	13	$	(2	)

(2)

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 — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses.

Nonrecurring Fair Value Measurements

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 (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,
	2014		2013		2014			2013			2014			2013
	Carrying Value After Measurement				Gains (Losses)
	(In millions)
Mortgage loans, net (1)	$	106	$	232	$	4		$	(4	)	$	3		$	13
Other limited partnership interests (2)	$	92	$	70	$	(14	)	$	—		$	(51	)	$	(39	)
Real estate joint ventures (3)	$	—	$	3	$	(1	)	$	—		$	(1	)	$	(2	)

__________________


(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, 2014 and 2013 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, 2014 and 2013 were not significant.

Fair Value of Financial Instruments Carried at Other Than Fair Value

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, 2014
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	57,427	$	—	$	—	$	60,226	$	60,226
Policy loans	$	11,756	$	—	$	1,684	$	11,744	$	13,428
Real estate joint ventures	$	83	$	—	$	—	$	162	$	162
Other limited partnership interests	$	774	$	—	$	—	$	1,047	$	1,047
Other invested assets	$	603	$	202	$	74	$	327	$	603
Premiums, reinsurance and other receivables	$	3,726	$	—	$	1,380	$	2,402	$	3,782
Other assets	$	710	$	—	$	626	$	74	$	700
Liabilities
PABs	$	139,278	$	—	$	—	$	145,619	$	145,619
Long-term debt	$	16,174	$	—	$	18,042	$	—	$	18,042
Collateral financing arrangements	$	4,196	$	—	$	—	$	3,993	$	3,993
Junior subordinated debt securities	$	3,193	$	—	$	4,176	$	—	$	4,176
Other liabilities	$	6,274	$	—	$	4,981	$	1,294	$	6,275
Separate account liabilities	$	119,328	$	—	$	119,328	$	—	$	119,328



	December 31, 2013
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	55,770	$	—	$	—	$	57,924	$	57,924
Policy loans	$	11,764	$	—	$	1,694	$	11,512	$	13,206
Real estate joint ventures	$	102	$	—	$	—	$	169	$	169
Other limited partnership interests	$	950	$	—	$	—	$	1,109	$	1,109
Other invested assets	$	844	$	322	$	163	$	359	$	844
Premiums, reinsurance and other receivables	$	3,116	$	—	$	728	$	2,382	$	3,110
Other assets	$	324	$	—	$	210	$	142	$	352
Liabilities
PABs	$	139,735	$	—	$	—	$	144,631	$	144,631
Long-term debt	$	17,170	$	—	$	18,564	$	—	$	18,564
Collateral financing arrangements	$	4,196	$	—	$	—	$	3,984	$	3,984
Junior subordinated debt securities	$	3,193	$	—	$	3,789	$	—	$	3,789
Other liabilities	$	2,239	$	—	$	948	$	1,292	$	2,240
Separate account liabilities	$	117,562	$	—	$	117,562	$	—	$	117,562

- 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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