Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

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 at:



	March 31, 2018
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	77,597	$	4,237	$	81,834
Foreign government	—		64,331		179		64,510
Foreign corporate	—		48,890		6,573		55,463
U.S. government and agency	22,873		20,954		—		43,827
RMBS	—		24,155		3,256		27,411
State and political subdivision	—		12,192		—		12,192
ABS	—		10,739		1,025		11,764
CMBS	—		7,409		301		7,710
Total fixed maturity securities	22,873		266,267		15,571		304,711
Equity securities	909		213		422		1,544
Unit-linked and FVO Securities (1)	13,705		2,453		286		16,444
Other limited partnership interests	—		—		194		194
Short-term investments (2)	2,845		990		615		4,450
Residential mortgage loans — FVO	—		—		438		438
Other investments	83		90		—		173
Derivative assets: (3)
Interest rate	2		4,728		14		4,744
Foreign currency exchange rate	—		2,120		157		2,277
Credit	—		180		35		215
Equity market	7		603		78		688
Total derivative assets	9		7,631		284		7,924
Embedded derivatives within asset host contracts (4)	—		—		157		157
Separate account assets (5)	88,618		106,511		1,229		196,358
Total assets	$	129,042	$	384,155	$	19,196	$	532,393
Liabilities
Derivative liabilities: (3)
Interest rate	$	3	$	348	$	243	$	594
Foreign currency exchange rate	8		2,585		29		2,622
Credit	—		43		—		43
Equity market	19		603		194		816
Total derivative liabilities	30		3,579		466		4,075
Embedded derivatives within liability host contracts (4)	—		—		485		485
Separate account liabilities (5)	—		12		5		17
Total liabilities	$	30	$	3,591	$	956	$	4,577



	December 31, 2017
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	78,171	$	4,490	$	82,661
Foreign government	—		61,325		209		61,534
Foreign corporate	—		48,840		6,729		55,569
U.S. government and agency	26,052		21,342		—		47,394
RMBS	—		25,339		3,461		28,800
State and political subdivision	—		12,455		—		12,455
ABS	—		11,204		1,087		12,291
CMBS	—		7,934		293		8,227
Total fixed maturity securities	26,052		266,610		16,269		308,931
Equity securities	1,104		981		428		2,513
Unit-linked and FVO Securities (1)	14,028		2,355		362		16,745
Short-term investments (2)	3,001		1,252		33		4,286
Residential mortgage loans — FVO	—		—		520		520
Other investments	81		84		—		165
Derivative assets: (3)
Interest rate	2		5,553		8		5,563
Foreign currency exchange rate	2		1,954		113		2,069
Credit	—		240		38		278
Equity market	18		548		75		641
Total derivative assets	22		8,295		234		8,551
Embedded derivatives within asset host contracts (4)	—		—		144		144
Separate account assets (5)	89,916		114,124		961		205,001
Total assets	$	134,204	$	393,701	$	18,951	$	546,856
Liabilities
Derivative liabilities: (3)
Interest rate	$	4	$	638	$	130	$	772
Foreign currency exchange rate	—		2,553		37		2,590
Credit	—		43		—		43
Equity market	4		731		199		934
Total derivative liabilities	8		3,965		366		4,339
Embedded derivatives within liability host contracts (4)	—		—		418		418
Separate account liabilities (5)	—		7		2		9
Total liabilities	$	8	$	3,972	$	786	$	4,766

__________________


(1)	Unit-linked and FVO Securities were comprised of over 85% Unit-linked investments at both March 31, 2018 and December 31, 2017.


(2)	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.

(3)

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

Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At March 31, 2018 and December 31, 2017, debt and equity securities also included embedded derivatives of $0 and ($132) 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. Separate account liabilities presented in the tables above represent derivative liabilities.

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:



					March 31, 2018				December 31, 2017				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	•	Offered quotes (4)	89	-	139	107	83	-	142	110	Increase
	•	Market pricing	•	Quoted prices (4)	25	-	846	124	10	-	443	121	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	102	97	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	109	94	—	-	126	94	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	117	100	5	-	117	100	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	99	-	102	100	100	-	103	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	277	-	313		200	-	300		Increase (7)
			•	Repurchase rates (8)	(4)	-	6		(5)	-	5		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(19)	-	328		(14)	-	309		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	97	-	100		—	-	—		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	20%	-	31%		11%	-	31%		Increase (7)
			•	Correlation (12)	10%	-	30%		10%	-	30%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.03%	-	0.75%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.15%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	9.04%	-	33%		8.25%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.03%	-	1.75%		0.02%	-	1.32%		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 estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset 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 accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.


(5)	Changes in the assumptions used for the probability of default are 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.

(6)

Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are 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.


(7)	Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.


(8)	Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.


(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 March 31, 2018 and December 31, 2017, 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)	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.


(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 contractholders 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



					March 31, 2018				December 31, 2017				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	•	Offered quotes (4)	89	-	139	107	83	-	142	110	Increase
	•	Market pricing	•	Quoted prices (4)	25	-	846	124	10	-	443	121	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	102	97	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	109	94	—	-	126	94	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	117	100	5	-	117	100	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	99	-	102	100	100	-	103	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	277	-	313		200	-	300		Increase (7)
			•	Repurchase rates (8)	(4)	-	6		(5)	-	5		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(19)	-	328		(14)	-	309		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	97	-	100		—	-	—		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	20%	-	31%		11%	-	31%		Increase (7)
			•	Correlation (12)	10%	-	30%		10%	-	30%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.03%	-	0.75%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.15%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	9.04%	-	33%		8.25%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.03%	-	1.75%		0.02%	-	1.32%		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 estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset 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 accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.


(5)	Changes in the assumptions used for the probability of default are 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.

(6)


(7)	Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.


(8)	Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.


(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 March 31, 2018 and December 31, 2017, 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)	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.


(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 (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
	Corporate (1)			Foreign Government			Structured Securities			State and Political Subdivision			Equity Securities			Unit-linked and FVO Securities
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	11,219		$	209		$	4,841		$	—		$	428		$	362
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	7			1			23			—			(6		)	5
Total realized/unrealized gains (losses) included in AOCI	(68		)	(3		)	24			—			—			—
Purchases (4)	512			2			657			—			1			27
Sales (4)	(542		)	(2		)	(324		)	—			(1		)	(59		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	46			—			45			—			—			—
Transfers out of Level 3 (5)	(364		)	(28		)	(684		)	—			—			(49		)
Balance, end of period	$	10,810		$	179		$	4,582		$	—		$	422		$	286
Three Months Ended March 31, 2017
Balance, beginning of period	$	11,537		$	289		$	5,215		$	10		$	468		$	287
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	4			3			32			—			(10		)	7
Total realized/unrealized gains (losses) included in AOCI	231			6			48			—			22			—
Purchases (4)	941			12			1,020			—			1			69
Sales (4)	(418		)	(17		)	(400		)	—			(1		)	(17		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	79			4			23			—			—			2
Transfers out of Level 3 (5)	(1,406		)	(8		)	(233		)	(10		)	—			(13		)
Balance, end of period	$	10,968		$	289		$	5,705		$	—		$	480		$	335
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	1		$	1		$	21		$	—		$	—		$	4
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	4		$	2		$	24		$	—		$	(10	)	$	7



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Other Limited Partnership Interests			Short-term Investments			Residential Mortgage Loans — FVO			Net Derivatives (7)			Net Embedded Derivatives (8)			Separate Accounts (9)
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	—		$	33		$	520		$	(132	)	$	(274	)	$	959
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	(5		)	—			2			11			36			2
Total realized/unrealized gains (losses) included in AOCI	2			—			—			(104		)	(16		)	—
Purchases (4)	—			605			—			—			—			409
Sales (4)	(19		)	(3		)	(64		)	—			—			(124		)
Issuances (4)	—			—			—			—			—			1
Settlements (4)	—			—			(20		)	43			(74		)	(1		)
Transfers into Level 3 (5)	216			—			—			—			—			53
Transfers out of Level 3 (5)	—			(20		)	—			—			—			(75		)
Balance, end of period	$	194		$	615		$	438		$	(182	)	$	(328	)	$	1,224
Three Months Ended March 31, 2017
Balance, beginning of period	$	—		$	46		$	566		$	(562	)	$	(729	)	$	1,141
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	—			—			(3		)	33			169			(24		)
Total realized/unrealized gains (losses) included in AOCI	—			—			—			44			(59		)	—
Purchases (4)	—			776			135			—			—			136
Sales (4)	—			(3		)	(33		)	—			—			(42		)
Issuances (4)	—			—			—			(7		)	—			39
Settlements (4)	—			—			(26		)	95			(76		)	(33		)
Transfers into Level 3 (5)	—			—			—			—			—			69
Transfers out of Level 3 (5)	—			(40		)	—			—			—			(102		)
Balance, end of period	$	—		$	779		$	639		$	(397	)	$	(695	)	$	1,184
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	(5	)	$	—		$	(8	)	$	48		$	31		$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	—		$	—		$	(3	)	$	26		$	167		$	—

__________________


(1)	Comprised of U.S. and foreign corporate securities.

(2)

Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).


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


(4)	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.


(5)	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.


(6)	Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).


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


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

(9)

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 (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Fair Value Option

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value.



	March 31, 2018			December 31, 2017
	(In millions)
Unpaid principal balance	$	544		$	650
Difference between estimated fair value and unpaid principal balance	(106		)	(130		)
Carrying value at estimated fair value	$	438		$	520
Loans in nonaccrual status	$	159		$	198
Loans more than 90 days past due	$	78		$	94
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(82	)	$	(102	)

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:



	March 31, 2018
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	70,617	$	—	$	—	$	71,845	$	71,845
Policy loans	$	9,744	$	—	$	341	$	11,082	$	11,423
Other invested assets	$	1,264	$	—	$	812	$	452	$	1,264
Premiums, reinsurance and other receivables	$	4,358	$	—	$	1,450	$	3,025	$	4,475
Other assets	$	345	$	—	$	175	$	199	$	374
Liabilities
Policyholder account balances	$	114,715	$	—	$	—	$	116,193	$	116,193
Long-term debt	$	15,696	$	—	$	16,973	$	—	$	16,973
Collateral financing arrangement	$	1,108	$	—	$	—	$	898	$	898
Junior subordinated debt securities	$	3,145	$	—	$	4,073	$	—	$	4,073
Other liabilities	$	3,810	$	—	$	2,113	$	2,252	$	4,365
Separate account liabilities	$	118,151	$	—	$	118,151	$	—	$	118,151



	December 31, 2017
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	68,211	$	—	$	—	$	69,797	$	69,797
Policy loans	$	9,669	$	—	$	336	$	11,176	$	11,512
Other limited partnership interests	$	219	$	—	$	—	$	216	$	216
Other invested assets	$	443	$	—	$	—	$	443	$	443
Premiums, reinsurance and other receivables	$	4,155	$	—	$	1,283	$	3,056	$	4,339
Other assets	$	285	$	—	$	189	$	139	$	328
Liabilities
Policyholder account balances	$	114,355	$	—	$	—	$	116,534	$	116,534
Long-term debt	$	15,675	$	—	$	17,773	$	—	$	17,773
Collateral financing arrangement	$	1,121	$	—	$	—	$	894	$	894
Junior subordinated debt securities	$	3,144	$	—	$	4,319	$	—	$	4,319
Other liabilities	$	3,208	$	—	$	1,496	$	2,345	$	3,841
Separate account liabilities	$	124,011	$	—	$	124,011	$	—	$	124,011

- 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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