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Derivatives (Tables)
 12 Months Ended
Dec. 31, 2012
Derivatives [Abstract]  
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
                                                     
   

Primary Underlying Risk Exposure

   December 31,  
      2012     2011  
      Notional     Estimated Fair Value     Notional     Estimated Fair Value  
      Amount     Assets     Liabilities     Amount     Assets     Liabilities  
        (In millions)  

Derivatives Designated as Hedging Instruments

                                                

Fair value hedges:

                                                    

Interest rate swaps

   Interest rate   $ 5,397     $ 1,921     $ 90     $ 4,580     $ 1,884     $ 92  

Foreign currency swaps

   Foreign currency exchange rate     3,187       332       85       3,220       500       98  

Foreign currency forwards

   Foreign currency exchange rate     —       —       —       1,830       2       10  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     8,584       2,253       175       9,630       2,386       200  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flow hedges:

                                                    

Interest rate swaps

   Interest rate     3,642       705       —       3,230       947       —  

Interest rate forwards

   Interest rate     675       139       —       965       210       —  

Foreign currency swaps

   Foreign currency exchange rate     9,038       219       355       6,370       352       306  

Credit forwards

   Credit     —       —       —       20       4       —  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     13,355       1,063       355       10,585       1,513       306  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign operations hedges:

                                                    

Foreign currency forwards

   Foreign currency exchange rate     2,552       43       61       1,689       53       12  

Currency options

   Foreign currency exchange rate     4,375       43       3       —       —       —  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     6,927       86       64       1,689       53       12  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total qualifying hedges

     28,866       3,402       594       21,904       3,952       518  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Derivatives Not Designated or Not Qualifying as Hedging Instruments

                                                

Interest rate swaps

   Interest rate     83,250       5,201       2,043       71,923       5,410       2,107  

Interest rate floors

   Interest rate     56,246       1,174       837       23,866       1,246       165  

Interest rate caps

   Interest rate     49,465       74       —       49,665       102       —  

Interest rate futures

   Interest rate     11,684       1       38       14,965       25       19  

Interest rate options

   Interest rate     16,328       640       60       16,988       896       6  

Interest rate forwards

   Interest rate     —       —       —       13,068       76       91  

Synthetic GICs

   Interest rate     4,162       —       —       4,454       —       —  

Foreign currency swaps

   Foreign currency exchange rate     8,208       199       736       6,871       320       656  

Foreign currency forwards

   Foreign currency exchange rate     9,202       26       288       6,630       145       38  

Currency futures

   Foreign currency exchange rate     1,408       4       —       633       —       —  

Currency options

   Foreign currency exchange rate     129       1       —       1,321       6       —  

Credit default swaps

   Credit     12,553       90       39       13,136       326       113  

Equity futures

   Equity market     7,008       14       132       7,053       26       10  

Equity options

   Equity market     22,920       2,825       356       17,099       3,263       179  

Variance swaps

   Equity market     19,830       122       310       18,801       397       75  

Total rate of return swaps

   Equity market     3,092       4       103       1,644       10       34  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-designated or non-qualifying derivatives

     305,485       10,375       4,942       268,117       12,248       3,493  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 334,351     $ 13,777     $ 5,536     $ 290,021     $ 16,200     $ 4,011  
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Components of Net Derivatives Gains (Losses)
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Derivatives and hedging gains (losses) (1)

   $ (3,158 )    $ 6,108     $ 122  

Embedded derivatives

     1,239       (1,284 )      (387 ) 
   

 

 

    

 

 

    

 

 

  

Total net derivative gains (losses)

   $ (1,919 )    $ 4,824     $ (265 ) 
   

 

 

    

 

 

    

 

 

  

 

 

(1)

Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note.

Earned Income On Derivatives And Income Statement Location
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Qualifying hedges:

                        

Net investment income

   $ 111     $ 98     $ 83  

Interest credited to policyholder account balances

     164       214       233  

Other expenses

     (5 )      (4 )      (6 ) 

Non-qualifying hedges:

                        

Net investment income

     (6 )      (8 )      (3 ) 

Other revenues

     47       75       108  

Net derivative gains (losses)

     476       411       65  

Policyholder benefits and claims

     (120 )      17       —  
   

 

 

    

 

 

    

 

 

  

Total

   $ 667     $ 803     $ 480  
   

 

 

    

 

 

    

 

 

  
Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments
                                         
    Net
Derivative
Gains (Losses)		     Net
Investment
Income (1)		     Policyholder
Benefits  and
Claims (2)		     Other
Revenues (3)		     Other
Expenses (4)		  
    (In millions)  

For the Year Ended December 31, 2012:

                                        

Interest rate derivatives

   $ (296 )    $ —     $ —     $ 28     $ —  

Foreign currency exchange rate derivatives

     (660 )      —       —       —       —  

Credit derivatives

     (148 )      (14 )      —       —       —  

Equity derivatives

     (2,556 )      (9 )      (419 )      —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ (3,660 )    $ (23 )    $ (419 )    $ 28     $ —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the Year Ended December 31, 2011:

                                        

Interest rate derivatives

   $ 3,940     $ (1 )    $ —     $ 236     $ —  

Foreign currency exchange rate derivatives

     343       (9 )      —       —       —  

Credit derivatives

     175       5       —       —       —  

Equity derivatives

     1,178       (35 )      (87 )      —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 5,636     $ (40 )    $ (87 )    $ 236     $ —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the Year Ended December 31, 2010:

                                        

Interest rate derivatives

   $ 691     $ —     $ 39     $ 89     $ —  

Foreign currency exchange rate derivatives

     196       54       —       —       (4 ) 

Credit derivatives

     34       (2 )      —       —       —  

Equity derivatives

     (782 )      (41 )      (314 )      —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 139     $ 11     $ (275 )    $ 89     $ (4 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1)

Changes in estimated fair value related to economic hedges of equity method investments in joint ventures; changes in estimated fair value related to derivatives held in relation to trading portfolios; and changes in estimated fair value related to derivatives held within contractholder-directed unit-linked investments.

 

(2)

Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

 

(3)

Changes in estimated fair value related to derivatives held in connection with the Company’s mortgage banking activities.

 

(4)

Changes in estimated fair value related to economic hedges of foreign currency exposure associated with the Company’s international subsidiaries.

Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items
                             

Derivatives in Fair Value

Hedging Relationships

  

Hedged Items in Fair Value
Hedging Relationships

   Net Derivative
Gains (Losses)
Recognized
for Derivatives		     Net Derivative
Gains (Losses)
Recognized for
Hedged Items		     Ineffectiveness
Recognized in
Net Derivative
Gains (Losses)		  
        (In millions)  

For the Year Ended December 31, 2012:

                        

Interest rate swaps:

  

Fixed maturity securities

   $ (4 )    $ —     $ (4 ) 
   

Policyholder liabilities (1)

     (82 )      96       14  

Foreign currency swaps:

  

Foreign-denominated fixed maturity securities

     (1 )      1       —  
   

Foreign-denominated PABs (2)

     3       (20 )      (17 ) 

Foreign currency forwards:

  

Foreign-denominated fixed maturity securities

     (51 )      50       (1 ) 
       

 

 

    

 

 

    

 

 

  

Total

   $ (135 )    $ 127     $ (8 ) 
       

 

 

    

 

 

    

 

 

  

For the Year Ended December 31, 2011:

                        

Interest rate swaps:

  

Fixed maturity securities

   $ (25 )    $ 22     $ (3 ) 
   

Policyholder liabilities (1)

     1,054       (1,030 )      24  

Foreign currency swaps:

  

Foreign-denominated fixed maturity securities

     1       3       4  
   

Foreign-denominated PABs (2)

     (24 )      (25 )      (49 ) 

Foreign currency forwards:

  

Foreign-denominated fixed maturity securities

     (25 )      25       —  
       

 

 

    

 

 

    

 

 

  

Total

   $ 981     $ (1,005 )    $ (24 ) 
       

 

 

    

 

 

    

 

 

  

For the Year Ended December 31, 2010:

                        

Interest rate swaps:

  

Fixed maturity securities

   $ (14 )    $ 16     $ 2  
   

Policyholder liabilities (1)

     140       (142 )      (2 ) 

Foreign currency swaps:

  

Foreign-denominated fixed maturity securities

     14       (14 )      —  
   

Foreign-denominated PABs (2)

     9       (20 )      (11 ) 

Foreign currency forwards:

  

Foreign-denominated fixed maturity securities

     —       —       —  
       

 

 

    

 

 

    

 

 

  

Total

   $ 149     $ (160 )    $ (11 ) 
       

 

 

    

 

 

    

 

 

  

 

 

(1)

Fixed rate liabilities reported in PABs or future policy benefits.

 

(2)

Fixed rate or floating rate liabilities.

Derivatives and Non-Derivative Hedging Instruments in Net Investment Hedging Relationships
                         

Derivatives and Non-Derivative Hedging Instruments in Net

Investment Hedging Relationships (1), (2)

   Amount of Gains (Losses) Deferred in Accumulated Other  Comprehensive Income (Loss)
(Effective Portion)		  
  Years Ended December 31,  
  2012     2011     2010  
    (In millions)  

Foreign currency forwards

   $ (50)     $ 62     $ (167)  

Currency options

     36       —       —  

Non-derivative hedging instruments

     —       6       (16)  
   

 

 

    

 

 

    

 

 

  

Total

   $ (14)     $ 68     $ (183)  
   

 

 

    

 

 

    

 

 

  

 

 

(1)

During the years ended December 31, 2012 and 2010, there were no sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from accumulated other comprehensive income (loss) into earnings. During the year ended December 31, 2011, the Company sold its interest in MSI MetLife, which was a hedged item in a net investment hedging relationship. As a result, the Company released losses of $71 million from accumulated other comprehensive income (loss) upon the sale. This release did not impact net income for the year ended December 31, 2011 as such losses were considered in the overall impairment evaluation of the investment prior to sale. See Note 3.

 

(2)

There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative and non-derivative hedging instrument’s gain or loss were included in the assessment of hedge effectiveness.

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps
                                                 
    December 31,  
    2012     2011  

Rating Agency Designation of Referenced

Credit Obligations (1)

   Estimated
Fair Value
of Credit
Default
Swaps		     Maximum
Amount
of Future
Payments under
Credit Default
Swaps (2)		     Weighted
Average
Years to
Maturity (3)		     Estimated
Fair Value
of Credit
Default
Swaps		     Maximum
Amount
of Future
Payments under
Credit Default
Swaps (2)		     Weighted
Average
Years to
Maturity (3)		  
    (In millions)           (In millions)        

Aaa/Aa/A

                                                

Single name credit default swaps (corporate)

   $ 10     $ 777       2.7     $ 5     $ 737       3.5  

Credit default swaps referencing indices

     42       2,713       2.1       (1 )      2,813       3.0  
   

 

 

    

 

 

            

 

 

    

 

 

          

Subtotal

     52       3,490       2.2       4       3,550       3.1  
   

 

 

    

 

 

            

 

 

    

 

 

          

Baa

                                                

Single name credit default swaps (corporate)

     8       1,314       3.4       (17 )      1,234       4.0  

Credit default swaps referencing indices

     11       3,750       4.9       (26 )      2,847       4.9  
   

 

 

    

 

 

            

 

 

    

 

 

          

Subtotal

     19       5,064       4.5       (43 )      4,081       4.6  
   

 

 

    

 

 

            

 

 

    

 

 

          

Ba

                                                

Single name credit default swaps (corporate)

     —       25       2.7       —       25       3.5  

Credit default swaps referencing indices

     —       —       —       —       —       —  
   

 

 

    

 

 

            

 

 

    

 

 

          

Subtotal

     —       25       2.7       —       25       3.5  
   

 

 

    

 

 

            

 

 

    

 

 

          

B

                                                

Single name credit default swaps (corporate)

     —       —       —       —       —       —  

Credit default swaps referencing indices

     3       300       4.9       (2 )      25       4.8  
   

 

 

    

 

 

            

 

 

    

 

 

          

Subtotal

     3       300       4.9       (2 )      25       4.8  
   

 

 

    

 

 

            

 

 

    

 

 

          

Total

   $ 74     $ 8,879       3.6     $ (41 )    $ 7,681       3.9  
   

 

 

    

 

 

            

 

 

    

 

 

          

 

 

(1)

The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

 

(2)

Assumes the value of the referenced credit obligations is zero.

 

(3)

The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.

Derivative Instruments, Gain (Loss) [Line Items]  
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
                                         

Derivatives in Cash Flow

Hedging Relationships

   Amount of Gains (Losses)
Deferred in Accumulated
Other  Comprehensive Income
(Loss) on Derivatives		     Amount and Location of Gains
(Losses) Reclassified from
Accumulated Other Comprehensive
Income (Loss) into Income (Loss)		     Amount and  Location
of Gains (Losses)
Recognized in Income (Loss)
on Derivatives		  
     
     
     
     (Effective Portion)     (Effective Portion)     (Ineffective Portion)  
          Net Derivative
Gains (Losses)		     Net Investment
Income		     Other
Expenses		     Net Derivative
Gains  (Losses)		  
                        (In millions)  

For the Year Ended December 31, 2012:

                                        

Interest rate swaps

   $ (34 )    $ 1     $ 4     $ (3 )    $ 2  

Interest rate forwards

     (17 )      1       2       (1 )      —  

Foreign currency swaps

     (164 )      23       (5 )      1       (6 ) 

Credit forwards

     —       —       1       —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ (215 )    $ 25     $ 2     $ (3 )    $ (4 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the Year Ended December 31, 2011:

                                        

Interest rate swaps

   $ 1,023     $ (42 )    $ 1     $ (10 )    $ 1  

Interest rate forwards

     336       31       1       (1 )      2  

Foreign currency swaps

     175       —       (6 )      2       2  

Credit forwards

     18       2       1       —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 1,552     $ (9 )    $ (3 )    $ (9 )    $ 5  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the Year Ended December 31, 2010:

                                        

Interest rate swaps

   $ 13     $ —     $ —     $ (1 )    $ 3  

Interest rate forwards

     (117 )      14       2       —       (2 ) 

Foreign currency swaps

     34       (79 )      (6 )      2       —  

Credit forwards

     19       —       —       —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ (51 )    $ (65 )    $ (4 )    $ 1     $ 1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Schedule of Derivative Instruments
                                         
          Estimated Fair Value of
Collateral Provided:		     Fair Value of Incremental
Collateral Provided Upon:		  
    Estimated
Fair Value of
Derivatives in Net
Liability Position  (1)		     Fixed Maturity
Securities (2)		     Cash (3)     One Notch
Downgrade in
the Company’s
Credit Rating		     Downgrade in the
Company’s Credit Rating
to a Level that Triggers
Full Overnight
Collateralization or
Termination of
the Derivative Position		  
    (In millions)  

December 31, 2012:

                                        

Derivatives subject to credit-contingent provisions

   $ 771     $ 775     $ —     $ 35     $ 73  

Derivatives not subject to credit-contingent provisions

     79       100       1       —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 850     $ 875     $ 1     $ 35     $ 73  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2011:

                                        

Derivatives subject to credit-contingent provisions

   $ 447     $ 405     $ 4     $ 48     $ 104  

Derivatives not subject to credit-contingent provisions

     28       11       4       —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 475     $ 416     $ 8     $ 48     $ 104  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1)

After taking into consideration the existence of netting agreements.

 

(2)

Included in fixed maturity securities in the consolidated balance sheets. Subject to certain constraints, the counterparties are permitted by contract to sell or repledge this collateral.

 

(3)

Included in premiums, reinsurance and other receivables in the consolidated balance sheets.

Embedded Derivative Financial Instruments [Member]
  
Derivative Instruments, Gain (Loss) [Line Items]  
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
                         
    Years Ended December 31,  
     2012     2011     2010  
    (In millions)  

Net derivative gains (losses) (1)

   $ 1,239     $ (1,284 )    $ (387 ) 

Policyholder benefits and claims

   $         75     $         86     $         8  

 

 

 

(1)

The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were ($1.7) billion, $1.8 billion and ($96) million for the years ended December 31, 2012, 2011 and 2010, respectively.

Schedule of Derivative Instruments
                     
        December 31,  
   

Balance Sheet Location

   2012     2011  
        (In millions)  
Net embedded derivatives within asset host contracts:                    

Ceded guaranteed minimum benefits

   Premiums, reinsurance and other receivables   $ 439     $ 327  

Funds withheld on assumed reinsurance

   Other invested assets     66       35  

Options embedded in debt or equity securities

   Investments     (88 )      (70 ) 

Other

   Other invested assets     1       1  
       

 

 

    

 

 

  

Net embedded derivatives within asset host contracts

   $ 418     $ 293  
       

 

 

    

 

 

  
Net embedded derivatives within liability host contracts:                

Direct guaranteed minimum benefits

   PABs   $ 923     $ 2,104  

Assumed guaranteed minimum benefits

   PABs     2,582       2,340  

Funds withheld on ceded reinsurance

   Other liabilities     162       122  

Other

   PABs     17       18  
       

 

 

    

 

 

  

Net embedded derivatives within liability host contracts

   $ 3,684     $     4,584