Fair Value Measurements (excluding Consolidated Investment Entities) (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s hierarchy for its assets and liabilities from continuing operations measured at fair value on a recurring basis as of December 31, 2017:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	1,921		$	601		$	—		$	2,522
U.S. Government agencies and authorities	—			275			—			275
State, municipalities and political subdivisions	—			1,913			—			1,913
U.S. corporate public securities	—			23,201			57			23,258
U.S. corporate private securities	—			4,706			1,127			5,833
Foreign corporate public securities and foreign governments⁽¹⁾	—			5,705			11			5,716
Foreign corporate private securities⁽¹⁾	—			4,992			169			5,161
Residential mortgage-backed securities	—			4,482			42			4,524
Commercial mortgage-backed securities	—			2,687			17			2,704
Other asset-backed securities	—			1,436			92			1,528
Total fixed maturities, including securities pledged	1,921			49,998			1,515			53,434
Equity securities, available-for-sale	278			—			102			380
Derivatives:
Interest rate contracts	—			173			—			173
Foreign exchange contracts	—			—			—			—
Equity contracts	—			44			154			198
Credit contracts	—			21			5			26
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	3,277			38			—			3,315
Assets held in separate accounts	72,535			5,059			11			77,605
Total assets	$	78,011		$	55,333		$	1,787		$	135,131
Percentage of Level to total	58		%	41		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	40		$	40
IUL	—			—			159			159
GMWBL/GMWB/GMAB	—			—			10			10
Stabilizer and MCGs	—			—			97			97
Other derivatives:
Interest rate contracts	—			58			—			58
Foreign exchange contracts	—			62			—			62
Equity contracts	—			19			—			19
Credit contracts	—			10			—			10
Embedded derivative on reinsurance	—			129			—			129
Total liabilities	$	—		$	278		$	306		$	584

⁽¹⁾Primarily U.S. dollar denominated.

The following table presents the Company’s hierarchy for its assets and liabilities related to businesses held for sale measured at fair value on a recurring basis as of December 31, 2017:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	993		$	8		$	—		$	1,001
U.S. Government agencies and authorities	—			32			—			32
State, municipalities and political subdivisions	—			587			—			587
U.S. corporate public securities	—			9,760			22			9,782
U.S. corporate private securities	—			2,524			503			3,027
Foreign corporate public securities and foreign governments⁽¹⁾	—			2,825			—			2,825
Foreign corporate private securities⁽¹⁾	—			2,500			83			2,583
Residential mortgage-backed securities	—			1,889			32			1,921
Commercial mortgage-backed securities	—			1,067			10			1,077
Other asset-backed securities	—			498			47			545
Total fixed maturities, including securities pledged	993			21,690			697			23,380
Equity securities, available-for-sale	12			—			11			23
Derivatives:
Interest rate contracts	—			470			—			470
Foreign exchange contracts	—			—			—			—
Equity contracts	19			918			106			1,043
Credit contracts	—			1			—			1
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,111			212			—			1,323
Assets held in separate accounts	28,894			—			—			28,894
Total assets	$	31,029		$	23,291		$	814		$	55,134
Percentage of Level to total	56		%	42		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	2,242		$	2,242
GMWBL/GMWB/GMAB	—			—			1,158			1,158
Other derivatives:
Interest rate contracts	—			88			—			88
Foreign exchange contracts	—			24			—			24
Equity contracts	2			651			11			664
Credit contracts	—			6			—			6
Total liabilities	$	2		$	769		$	3,411		$	4,182

The following table presents the Company’s hierarchy for its assets and liabilities from continuing operations measured at fair value on a recurring basis as of December 31, 2016:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	1,944		$	611		$	—		$	2,555
U.S. Government agencies and authorities	—			268			—			268
State, municipalities and political subdivisions	—			1,631			—			1,631
U.S. corporate public securities	—			23,405			12			23,417
U.S. corporate private securities	—			4,224			913			5,137
Foreign corporate public securities and foreign governments⁽¹⁾	—			5,373			12			5,385
Foreign corporate private securities⁽¹⁾	—			4,803			305			5,108
Residential mortgage-backed securities	—			4,821			57			4,878
Commercial mortgage-backed securities	—			2,339			16			2,355
Other asset-backed securities	—			1,081			53			1,134
Total fixed maturities, including securities pledged	1,944			48,556			1,368			51,868
Equity securities, available-for-sale	164			—			94			258
Derivatives:
Interest rate contracts	—			554			—			554
Foreign exchange contracts	—			58			—			58
Equity contracts	—			18			77			95
Credit contracts	—			19			11			30
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,949			124			—			3,073
Assets held in separate accounts	61,397			4,783			5			66,185
Total assets	$	66,454		$	54,112		$	1,555		$	122,121
Percentage of Level to total	55		%	44		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	42		$	42
IUL	—			—			81			81
GMWBL/GMWB/GMAB	—			—			18			18
Stabilizer and MCGs	—			—			150			150
Other derivatives:
Interest rate contracts	1			246			—			247
Foreign exchange contracts	—			34			—			34
Equity contracts	—			—			—			—
Credit contracts	—			—			16			16
Embedded derivative on reinsurance	—			79			—			79
Total liabilities	$	1		$	359		$	307		$	667

⁽¹⁾ Primarily U.S. dollar denominated.

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

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities from continuing operations and transfers in and out of Level 3 for the period indicated:



	Year Ended December 31, 2017
	Fair Value as of January 1		Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances		Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31		Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1		Net Income			OCI			Purchases		Issuances		Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31		Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	12	$	—		$	—		$	29	$	—	$	—		$	(2	)	$	18	$	—		$	57	$	—
U.S. corporate private securities	913		—			16			128		—		(5		)	(40		)	130		(15		)	1,127		—
Foreign corporate public securities and foreign governments⁽¹⁾	12		—			(1		)	—		—		—			—			—		—			11		—
Foreign corporate private securities⁽¹⁾	305		(14		)	(46		)	57		—		(1		)	(44		)	—		(88		)	169		(14		)
Residential mortgage-backed securities	57		(14		)	1			5		—		(8		)	(1		)	2		—			42		(14		)
Commercial mortgage-backed securities	16		—			—			17		—		—			—			—		(16		)	17		—
Other asset-backed securities	53		—			1			72		—		—			(3		)	—		(31		)	92		—
Total fixed maturities including securities pledged	1,368		(28		)	(29		)	308		—		(14		)	(90		)	150		(150		)	1,515		(28		)



	Year Ended December 31, 2017 (continued)
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:					Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI		Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Equity securities, available-for-sale	$	94		$	—		$	2	$	8	$	—		$	(2	)	$	—		$	—	$	—		$	102		$	—
Derivatives:
Guaranteed benefit derivatives:
FIA⁽²⁾	(42		)	(2		)	—		—		(1		)	—			5			—		—			(40		)	—
IUL⁽²⁾	(81		)	(87		)	—		—		(35		)	—			44			—		—			(159		)	—
GMWBL/GMWB/GMAB⁽²⁾	(18		)	10			—		—		(2		)	—			—			—		—			(10		)	—
Stabilizer and MCGs⁽²⁾	(150		)	57			—		—		(4		)	—			—			—		—			(97		)	—
Other derivatives, net	72			78			—		31		—			—			(22		)	—		—			159			87
Assets held in separate accounts⁽⁵⁾	5			—			—		18		—			(3		)	—			2		(11		)	11			—

⁽¹⁾Primarily U.S. dollar denominated.

⁽²⁾ All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by contract basis. These amounts are included in Other net realized gains (losses) in the Consolidated Statements of Operations.

⁽³⁾ The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

⁽⁴⁾ For financial instruments still held as of December 31 amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations.

⁽⁵⁾ The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities related to businesses held for sale and transfers in and out of Level 3 for the period indicated:



	Year Ended December 31, 2017
	Fair Value as of January 1		Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances		Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31		Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1		Net Income			OCI			Purchases		Issuances		Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31		Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	10	$	—		$	1		$	15	$	—	$	(10	)	$	—		$	6	$	—		$	22	$	—
U.S. corporate private securities	406		—			9			71		—		(1		)	(16		)	44		(10		)	503		—
Foreign corporate private securities⁽¹⁾	136		(10		)	(21		)	13		—		—			(14		)	—		(21		)	83		(10		)
Residential mortgage-backed securities	15		(3		)	(1		)	22		—		—			(1		)	—		—			32		(3		)
Commercial mortgage-backed securities	8		—			—			10		—		—			—			—		(8		)	10		—
Other asset-backed securities	31		—			—			38		—		—			(2		)	1		(21		)	47		—
Total fixed maturities including securities pledged	606		(13		)	(12		)	169		—		(11		)	(33		)	51		(60		)	697		(13		)



	Year Ended December 31, 2017 (continued)
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:					Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾		Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI		Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾		Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Equity securities, available-for-sale	$	5		$	—		$	1	$	5	$	—		$	—		$	—		$	—	$	—	$	11		$	—
Derivatives:
Guaranteed benefit derivatives:
FIA⁽²⁾	(1,987		)	(297		)	—		—		(153		)	—			195			—		—		(2,242		)	—
GMWBL/GMWB/GMAB⁽²⁾	(1,512		)	500			—		—		(146		)	—			—			—		—		(1,158		)	—
Other derivatives, net	34			133			—		41		—			—			(117		)	4		—		95			57
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	5			—			—		—		—			(5		)	—			—		—		—			—

⁽¹⁾Primarily U.S. dollar denominated.

⁽³⁾ The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

⁽⁴⁾ For financial instruments still held as of December 31 amounts are included in Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations.

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities from continuing operations and transfers in and out of Level 3 for the period indicated:



	Year Ended December 31, 2016
	Fair Value as of January 1		Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances		Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31		Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1		Net Income			OCI			Purchases		Issuances		Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31		Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	6	$	—		$	—		$	—	$	—	$	(1	)	$	(2	)	$	9	$	—		$	12	$	—
U.S. corporate private securities	720		—			4			302		—		(23		)	(135		)	63		(18		)	913		—
Foreign corporate public securities and foreign governments⁽¹⁾	12		—			—			—		—		—			—			—		—			12		—
Foreign corporate private securities⁽¹⁾	294		(2		)	12			—		—		—			(52		)	61		(8		)	305		(2		)
Residential mortgage-backed securities	76		(5		)	(1		)	—		—		(12		)	(1		)	—		—			57		(12		)
Commercial mortgage-backed securities	19		(1		)	1			4		—		—			(7		)	1		(1		)	16		(1		)
Other asset-backed securities	33		—			1			31		—		—			(3		)	1		(10		)	53		—
Total fixed maturities including securities pledged	1,160		(8		)	17			337		—		(36		)	(200		)	135		(37		)	1,368		(15		)



	Year Ended December 31, 2016 (continued)
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:					Purchases		Issuances			Sales		Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI		Purchases		Issuances			Sales		Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Equity securities, available-for-sale	$	92		$	—		$	2	$	—	$	—		$	—	$	—		$	—	$	—		$	94		$	—
Derivatives:
Guaranteed benefit derivatives:
FIA⁽²⁾	(41		)	(3		)	—		—		(1		)	—		3			—		—			(42		)	—
IUL⁽²⁾	(53		)	(12		)	—		—		(29		)	—		13			—		—			(81		)	—
GMWBL/GMWB/GMAB⁽²⁾	(24		)	9			—		—		(3		)	—		—			—		—			(18		)	—
Stabilizer and MCGs⁽²⁾	(161		)	15			—		—		(4		)	—		—			—		—			(150		)	—
Other derivatives, net	47			9			—		26		—			—		(10		)	—		—			72			25
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	—			—			—		—		—			—		—			—		—			—			—
Assets held in separate accounts⁽⁵⁾	4			—			—		3		—			—		—			2		(4		)	5			—

⁽¹⁾Primarily U.S. dollar denominated.

⁽³⁾ The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

Fair Value Inputs, Liabilities, Quantitative Information

The following table presents the unobservable inputs for Level 3 fair value measurements for continuing operations and businesses held for sale as of December 31, 2017:



	Range⁽¹⁾
Unobservable Input	GMWBL/GMWB/GMAB		FIA		IUL		Stabilizer/MCGs
Long-term equity implied volatility	15% to 25%		—		—		—
Interest rate implied volatility	0.1% to 16%		—		—		0.1% to 6.3%
Correlations between:
Equity Funds	-13% to 99%		—		—		—
Equity and Fixed Income Funds	-38% to 62%		—		—		—
Interest Rates and Equity Funds	-32% to 26%		—		—		—
Nonperformance risk	0.02% to 1.1%		0.02% to 1.1%		0.02% to 0.54%		0.02% to 1.1%
Actuarial Assumptions:
Benefit Utilization	70% to 100%	(2)	—		—		—
Partial Withdrawals	0% to 3.4%	(2)	0.5% to 7%		—		—
Lapses	0.1% to 15.3%	(3)(4)	0% to 56%	(3)	2% to 10%		0 % to 50%	(5)
Policyholder Deposits⁽⁶⁾	—		—		—		0 % to 50%	(5)
Mortality	—	(7)	—	(7)	—	(8)	—


⁽¹⁾	Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾

Those GMWBL policyholders who have elected systematic withdrawals are assumed to continue taking withdrawals. As a percent of policies, approximately 45% are taking systematic withdrawals. The Company assumes that at least 70% of all policies will begin systematic withdrawals either immediately or after a delay period, with 100% utilizing by age 95. The utilization function varies by policyholder age, policy duration and tax status. Interactions with lapse and mortality also affect utilization. The utilization rate for GMWBL and GMWB tends to be lower for younger contract owners and contracts that have not reached their maximum accumulated GMWBL and GMWB benefit amount. There is also a lower utilization rate, though indirectly, for contracts that are less "in the money" (i.e., where the notional benefit amount is in excess of the account value) due to higher lapses. Conversely, the utilization rate tends to be higher for contract owners near or beyond retirement age and contracts that have accumulated their maximum GMWBL or GMWB benefit amount. There is also a higher utilization rate, though indirectly, for contracts which are highly "in the money". The chart below provides the GMWBL account value by current age group and average expected delay times from the associated attained age group as of December 31, 2017. Due to the benefit utilization assumption for GMWBL/GMWB, the partial withdrawal assumption only applies to GMAB.



	Account Values ($ in billions)
Attained Age Group	In the Money		Out of the Money		Total		Average Expected Delay (Years)**
< 60	$	1.5	$	0.2	$	1.7	9.0
60-69	5.0		0.6		5.6		3.7
70+	6.0		0.7		6.7		2.4
	$	12.5	$	1.5	$	14.0	4.4

** For population expected to withdraw in future. Excludes policies taking systematic withdrawals and policies the Company assumes will never withdraw until age 95.


⁽³⁾	Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽⁴⁾

The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." The table below shows an analysis of policy account values according to whether they are in or out of the surrender charge period or at the shock lapse period and to whether they are "in the money" or "out of the money" as of December 31, 2017. Lapse ranges are based on weighted average ranges of underlying account value exposure.



		GMWBL/GMWB/GMAB
	Moneyness	Account Value ($ in billions)		Lapse Range
During Surrender Charge Period
	In the Money**	$	0.2	0.1% to 4.8%
	Out of the Money	0.1		0.6% to 5.2%
Shock Lapse Period
	In the Money**	$	1.5	1.7% to 13.9%
	Out of the Money	0.2		13.9% to 15.3%
After Surrender Charge Period
	In the Money**	$	10.7	0.9% to 6.4%
	Out of the Money	1.7		6.4% to 7.1%

** The low end of the range corresponds to policies that are highly "in the money." The high end of the range corresponds to the policies that are close to zero in terms of "in the moneyness."


⁽⁵⁾	Stabilizer contracts with recordkeeping agreements have a different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:



	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%


⁽⁶⁾	Measured as a percentage of assets under management or assets under administration.


⁽⁷⁾	The mortality rate is based on the 2012 Individual Annuity Mortality Basic table with mortality improvements.

⁽⁸⁾The mortality rate, along with the associated cost of insurance charges, are based on the 2001 Commissioner's Standard Ordinary table with mortality improvements.

The following table presents the unobservable inputs for Level 3 fair value measurements for continuing operations and businesses held for sale as of December 31, 2016:

Range⁽¹⁾

Unobservable Input

GMWBL/GMWB/GMAB

FIA

IUL

Stabilizer/MCGs

Long-term equity implied volatility

15% to 25%

—

Interest rate implied volatility

0.1% to 18%

—

0.1% to 7.5%

Correlations between:

Equity Funds

-13% to 99%

—

Equity and Fixed Income Funds

-38% to 62%

—

Interest Rates and Equity Funds

-32% to 26%

—

Nonperformance risk

0.25% to 1.6%

0.25% to 0.69%

0.25% to 1.6%

Actuarial Assumptions:

Benefit Utilization

85% to 100%

⁽²⁾

—

Partial Withdrawals

0% to 3.4%

⁽²⁾

0% to 10%

—

Lapses

0.12% to 12.4%

^{(3) (4)}

0% to 60%

⁽³⁾

2% to 10%

0 % to 50%

⁽⁵⁾

Policyholder Deposits⁽⁶⁾

—

0 % to 50%

⁽⁵⁾

Mortality

—

⁽⁷⁾

—

⁽⁷⁾

—

⁽⁸⁾

—


⁽¹⁾	Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Those GMWBL policyholders who have elected systematic withdrawals are assumed to continue taking withdrawals. As a percent of policies, approximately 40% are taking systematic withdrawals. The Company assumes that at least 85% of all policies will begin systematic withdrawals either immediately or after a delay period,with 100% utilizing by age 100. The utilization function varies by policyholder age and policy duration. Interactions with lapse and mortality also affect utilization. The utilization rate for GMWBL and GMWB tends to be lower for younger contract owners and contracts that have not reached their maximum accumulated GMWBL and GMWB benefit amount. There is also a lower utilization rate, though indirectly, for contracts that are less "in the money" (i.e., where the notional benefit amount is in excess of the account value) due to higher lapses. Conversely, the utilization rate tends to be higher for contract owners near or beyond retirement age and contracts that have accumulated their maximum GMWBL or GMWB benefit amount. There is also a higher utilization rate, though indirectly, for contracts which are highly "in the money". The chart below provides the GMWBL account value by current age group and average expected delay times from the associated attained age group as of December 31, 2016. Due to the benefit utilization assumption for GMWBL/GMWB, the partial withdrawal assumption only applies to GMAB.



	Account Values ($ in billions)
Attained Age Group	In the Money		Out of the Money		Total		Average Expected Delay (Years)**
< 60	$	1.9	$	—	$	1.9	9.9
60-69	5.7		0.1		5.8		4.9
70+	5.8		0.1		5.9		3.0
	$	13.4	$	0.2	$	13.6	5.5

** For population expected to withdraw in future. Excludes policies taking systematic withdrawals and 15% of policies the Company assumes will never withdraw until age 100.


⁽³⁾	Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽⁴⁾

The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." The table below shows an analysis of policy account values according to whether they are in or out of the surrender charge period or at the shock lapse period and to whether they are "in the money" or "out of the money" as of December 31, 2016. Lapse ranges are based on weighted average ranges of underlying account value exposure.



		GMWBL/GMWB/GMAB
	Moneyness	Account Value ($ in billions)		Lapse Range
During Surrender Charge Period
	In the Money**	$	2.0	0.1% to 4.6%
	Out of the Money	—		0.6% to 4.8%
Shock Lapse Period
	In the Money**	2.8		2.4% to 11.8%
	Out of the Money	—		11.8% to 12.4%
After Surrender Charge Period
	In the Money**	$	8.7	1.4% to 6.8%
	Out of the Money	0.6		6.8% to 7.1%

** The low end of the range corresponds to policies that are highly "in the money." The high end of the range corresponds to the policies that are close to zero in terms of "in the moneyness."


⁽⁵⁾	Stabilizer contracts with recordkeeping agreements have a different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:



	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	93	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	7	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%


⁽⁶⁾	Measured as a percentage of assets under management or assets under administration.

⁽⁷⁾The mortality rate is based on the 2012 Individual Annuity Mortality Basic table with mortality improvements.


⁽⁸⁾	The mortality rate, along with the associated cost of insurance charges, are based on the 2001 Commissioner's Standard Ordinary table with mortality improvements.

Fair Value, by Balance Sheet Grouping

he carrying values and estimated fair values of the Company’s financial instruments from continuing operations as of the dates indicated:



	December 31, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	53,434	$	53,434	$	51,868	$	51,868
Equity securities, available-for-sale	380		380		258		258
Mortgage loans on real estate	8,686		8,748		8,003		8,185
Policy loans	1,888		1,888		1,943		1,943
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	3,315		3,315		3,073		3,073
Derivatives	397		397		737		737
Notes receivable⁽¹⁾	350		445		350		432
Other investments	47		55		47		57
Assets held in separate accounts	77,605		77,605		66,185		66,185
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities⁽²⁾	33,986		38,553		33,871		38,368
Funding agreements with fixed maturities and guaranteed investment contracts	501		501		473		470
Supplementary contracts, immediate annuities and other	1,275		1,285		1,330		1,337
Derivatives:
Guaranteed benefit derivatives:
FIA	40		40		42		42
IUL	159		159		81		81
GMWBL/GMWB/GMAB	10		10		18		18
Stabilizer and MCGs	97		97		150		150
Other derivatives	149		149		297		297
Short-term debt	337		337		—		—
Long-term debt	3,123		3,478		3,550		3,738
Embedded derivative on reinsurance	129		129		79		79

⁽¹⁾ Included in Other assets on the Consolidated Balance Sheets.

⁽²⁾ Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.