Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Assets and (liabilities) carried at fair value by hierarchy level

	March 31, 2013
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS	$	1,315		$	—		$	1,090		$	225
CDOs	1,664			—			1,099			565
CMBS	2,878			—			2,388			490
Corporate	19,284			—			18,188			1,096
Foreign government/government agencies	1,281			—			1,246			35
Municipal	1,114			—			982			132
RMBS	3,313			—			2,347			966
U.S. Treasuries	2,309			77			2,232			—
Total fixed maturities	33,158			77			29,572			3,509
Fixed maturities, FVO	935			—			734			201
Equity securities, trading	1,773			1,773			—			—
Equity securities, AFS	383			205			123			55
Derivative assets
Credit derivatives	26			—			15			11
Equity derivatives	11			—			—			11
Foreign exchange derivatives	(112		)	—			(112		)	—
Interest rate derivatives	71			—			71			—
U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments	242			—			17			225
U.S. macro hedge program	208			—			—			208
International program hedging instruments	209			—			249			(40		)
Total derivative assets [1]	655			—			240			415
Short-term investments	1,398			242			1,156			—
Limited partnerships and other alternatives [2]	445			—			283			162
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB	597			—			5			592
Separate account assets [3]	140,545			101,713			38,009			823
Total assets accounted for at fair value on a recurring basis	$	179,889		$	104,010		$	70,122		$	5,757
Percentage of level to total	100		%	58		%	39		%	3		%
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
Guaranteed living benefits	$	(2,204	)	$	—		$	—		$	(2,204	)
Equity linked notes	(10		)	—			—			(10		)
Total other policyholder funds and benefits payable	(2,214		)	—			—			(2,214		)
Derivative liabilities
Credit derivatives	(1		)	—			4			(5		)
Equity derivatives	16			—			—			16
Foreign exchange derivatives	(40		)	—			(40		)	—
Interest rate derivatives	(375		)	—			(322		)	(53		)
U.S. GMWB hedging instruments	104			—			—			104
U.S. macro hedge program	35			—			—			35
International program hedging instruments	(74		)	—			31			(105		)
Total derivative liabilities [4]	(335		)	—			(327		)	(8		)
Consumer notes [5]	(2		)	—			—			(2		)
Total liabilities accounted for at fair value on a recurring basis	$	(2,551	)	$	—		$	(327	)	$	(2,224	)

3. Fair Value Measurements (continued)

	December 31, 2012
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS	$	1,673		$	—		$	1,435		$	238
CDOs	2,160			—			1,437			723
CMBS	3,912			—			3,380			532
Corporate	30,979			—			29,639			1,340
Foreign government/government agencies	1,460			—			1,426			34
Municipal	1,998			—			1,829			169
RMBS	4,671			—			3,538			1,133
U.S. Treasuries	2,551			78			2,473			—
Total fixed maturities	49,404			78			45,157			4,169
Fixed maturities, FVO	1,010			6			805			199
Equity securities, trading	1,847			1,847			—			—
Equity securities, AFS	400			203			142			55
Derivative assets
Credit derivatives	(10		)	—			—			(10		)
Equity derivatives	30			—			—			30
Foreign exchange derivatives	104			—			104			—
Interest rate derivatives	108			—			144			(36		)
U.S. GMWB hedging instruments	36			—			(53		)	89
U.S. macro hedge program	186			—			—			186
International program hedging instruments	127			—			142			(15		)
Total derivative assets [1]	581			—			337			244
Short-term investments	2,354			242			2,112			—
Limited partnerships and other alternative investments [2]	414			—			264			150
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB	1,081			—			—			1,081
Separate account assets [3]	138,497			97,976			39,938			583
Total assets accounted for at fair value on a recurring basis	$	195,588		$	100,352		$	88,755		$	6,481
Percentage of level to total	100		%	52		%	45		%	3		%
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
Guaranteed living benefits	$	(3,119	)	$	—		$	—		$	(3,119	)
Equity linked notes	(8		)	—			—			(8		)
Total other policyholder funds and benefits payable	(3,127		)	—			—			(3,127		)
Derivative liabilities
Credit derivatives	(6		)	—			(20		)	14
Equity derivatives	15			—			—			15
Foreign exchange derivatives	(17		)	—			(17		)	—
Interest rate derivatives	(359		)	—			(338		)	(21		)
U.S. GMWB hedging instruments	536			—			106			430
International program hedging instruments	(231		)	—			(171		)	(60		)
Total derivative liabilities [4]	38			—			(440		)	478
Consumer notes [5]	(2		)	—			—			(2		)
Total liabilities accounted for at fair value on a recurring basis	$	(3,091	)	$	—		$	(440	)	$	(2,651	)

[1] Includes over-the-counter derivative instruments in a net asset value position which may require the counterparty to pledge collateral to the Company. At March 31, 2013 and December 31, 2012, $272 and $92, respectively, was the amount of cash collateral liability that was netted against the derivative asset value on the Condensed Consolidated Balance Sheet, and is excluded from the table above. For further information on derivative liabilities, see below in this Note 3.

[2] Represents hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at value.

[3] As of March 31, 2013 and December 31, 2012, excludes approximately $4.6 billion and $3.1 billion, respectively, of investment sales receivable that are not subject to fair value accounting.

[4] Includes over-the-counter derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll forward table included below in this Note, the derivative asset and liability are referred to as “freestanding derivatives” and are presented on a net basis.

[5] Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes.

Information about significant unobservable inputs used in Level 3 assets measured at fair value

	As of March 31, 2013
Securities					Unobservable Inputs
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Method	Significant Unobservable Input	Minimum		Maximum		Weighted Average [1]		Impact of Increase in Input on Fair Value [2]
CMBS	$	490	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	346bps		3,250bps		895bps		Decrease
Corporate [3]	688		Discounted cash flows	Spread	135bps		4,346bps		339bps		Decrease
Municipal	131		Discounted cash flows	Spread	208bps		270bps		222bps		Decrease
RMBS	966		Discounted cash flows	Spread	54bps		1,692bps		282bps		Decrease
				Constant prepayment rate	0.0	%	10.0	%	2.0	%	Decrease [4]
				Constant default rate	1.0	%	24.0	%	8.0	%	Decrease
				Loss severity	—	%	100.0	%	80.0	%	Decrease
	As of December 31, 2012
CMBS	$	532	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	320bps		3,615bps		1,013bps		Decrease
Corporate [3]	888		Discounted cash flows	Spread	145bps		900bps		333bps		Decrease
Municipal	169		Discounted cash flows	Spread	227bps		344bps		254bps		Decrease
RMBS	1,133		Discounted cash flows	Spread	54bps		1,689bps		379bps		Decrease
				Constant prepayment rate	0.0	%	12.0	%	2.0	%	Decrease [4]
				Constant default rate	1.0	%	24.0	%	8.0	%	Decrease
				Loss severity	—	%	100.0	%	80.0	%	Decrease

[1] The weighted average is determined based on the fair value of the securities.

[2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above.

[3] Level 3 corporate securities excludes those for which the Company bases fair value on broker quotations as discussed below.

[4] Decrease for above market rate coupons and increase for below market rate coupons.

Information about significant unobservable inputs used in Level 3 derivative instruments measured at fair value

	As of March 31, 2013
Freestanding Derivatives						Unobservable Inputs
	Fair Value			Predominant Valuation Method	Significant Unobservable Input	Minimum	Maximum	Impact of Increase in Input on Fair Value [1]
Equity derivatives
Equity options	$	27		Option model	Equity volatility	21%	23%	Increase
Interest rate derivative
Interest rate swaps	(53		)	Discounted  cash flows	Swap curve  beyond 30 years	3%	3%	Increase
U.S. GMWB hedging instruments
Equity options	153			Option model	Equity volatility	21%	29%	Increase
Customized swaps	176			Discounted  cash flows	Equity volatility	10%	50%	Increase
U.S. macro hedge program
Equity options	243			Option model	Equity volatility	20%	29%	Increase
International hedging program
Equity options	(145		)	Option model	Equity volatility	24%	42%	Increase
	As of December 31, 2012
Equity derivatives
Equity options	$	45		Option model	Equity volatility	13%	24%	Increase
Interest rate derivative
Interest rate swaps	(57		)	Discounted  cash flows	Swap curve  beyond 30 years	2.8%	2.8%	Increase
U.S. GMWB hedging instruments
Equity options	281			Option model	Equity volatility	10%	31%	Increase
Customized swaps	238			Discounted  cash flows	Equity volatility	10%	50%	Increase
U.S. macro hedge program
Equity options	286			Option model	Equity volatility	24%	43%	Increase
International hedging program
Equity options	44			Option model	Equity volatility	22%	33%	Increase
Long interest rate	(119		)	Option model	Interest rate volatility	—%	1%	Increase

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

Information about significant unobservable inputs used in Level 3 living benefits measured at fair value

	Unobservable Inputs
Significant Unobservable Input	Minimum	Maximum	Impact of Increase in  Input on Fair Value Measurement [1]
Withdrawal Utilization[2]	20%	100%	Increase
Withdrawal Rates [2]	—%	8%	Increase
Annuitization utilization [3]	—%	100%	Increase
Lapse Rates [4]	—%	75%	Decrease
Reset Elections [5]	20%	75%	Increase
Equity Volatility [6]	10%	50%	Increase

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[2] Ranges represent assumed cumulative percentages of policyholders taking withdrawals and the annual amounts withdrawn.

[3] For reinsurance associated with Japan GMIB, range represents assumed cumulative percentages of policyholders annuitizing variable annuity contracts.

[4] Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business.

[5] Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base.

[6] Range represents implied market volatilities for equity indices based on multiple pricing sources.

Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

	Fixed Maturities, AFS																								Fixed Maturities, FVO
Assets	ABS			CDOs			CMBS			Corporate			Foreign govt./govt. agencies			Municipal			RMBS			Total Fixed Maturities, AFS
Fair value as of January 1, 2013	$	238		$	723		$	532		$	1,340		$	34		$	169		$	1,133		$	4,169		$	199
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(3		)	(11		)	(2		)	16			1			—			29			30			14
Included in OCI [3]	22			36			13			(8		)	(1		)	1			15			78			—
Purchases	14			1			—			18			10			—			13			56			6
Settlements	(3		)	(21		)	(14		)	(58		)	(1		)	—			(32		)	(129		)	(1		)
Sales	(34		)	(186		)	(60		)	(255		)	(6		)	(38		)	(192		)	(771		)	(18		)
Transfers into Level 3 [4]	—			23			21			56			—			—			—			100			2
Transfers out of Level 3 [4]	(9		)	—			—			(13		)	(2		)	—			—			(24		)	(1		)
Fair value as of March 31, 2013	$	225		$	565		$	490		$	1,096		$	35		$	132		$	966		$	3,509		$	201
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	(4	)	$	—		$	(2	)	$	(2	)	$	—		$	—		$	—		$	(8	)	$	35

3. Fair Value Measurements (continued)

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit		Equity			Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging			Total Free- Standing Derivatives [5]
Fair value as of January 1, 2013	$	55		$	4	$	45		$	(57	)	$	519		$	286		$	(75	)	$	722
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(4		)	2		(15		)	2			(190		)	(64		)	(44		)	(309		)
Included in OCI [3]	6			—		—			—			—			—			—			—
Purchases	—			—		—			—			—			21			(20		)	1
Settlements	—			—		(3		)	—			—			—			(6		)	(9		)
Sales	(2		)	—		—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—		—			2			—			—			—			2
Fair value as of March 31, 2013	$	55		$	6	$	27		$	(53	)	$	329		$	243		$	(145	)	$	407
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	(3	)	$	2	$	(15	)	$	(3	)	$	(185	)	$	(63	)	$	17		$	(247	)

Assets	Limited Partnerships and Other Alternative Investments			Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB,  and GMAB [6]			Separate Accounts
Fair value as of January 1, 2013	$	150		$	1,081		$	583
Total realized/unrealized gains (losses)
Included in net income [1], [2]	3			(462		)	15
Included in OCI [3]	—			(111		)	—
Purchases	29			—			255
Settlements	(9		)	84			—
Sales	—			—			(26		)
Transfers into Level 3 [4]	—			—			—
Transfers out of Level 3 [4]	(11		)	—			(4		)
Fair value as of March 31, 2013	$	162		$	592		$	823
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	3		$	(462	)	$	8

	Other Policyholder Funds and Benefits Payable
Liabilities	Guaranteed Living Benefits [7]			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Consumer Notes
Fair value as of January 1, 2013	$	(3,119	)	$	(8	)	$	(3,127	)	$	(2	)
Total realized/unrealized gains (losses)
Included in net income [1], [2]	802			(2		)	800			—
Included in OCI [3]	135			—			135			—
Settlements	(22		)	—			(22		)	—
Fair value as of March 31, 2013	$	(2,204	)	$	(10	)	$	(2,214	)	$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2013 [2] [7]	$	802		$	(2	)	$	800		$	—

3. Fair Value Measurements (continued)

The tables below provide a fair value roll forward for the three months ended March 31, 2012, for Level 3 financial instruments.

	Fixed Maturities, AFS
Assets	ABS			CDOs			CMBS			Corporate			Foreign govt./govt. agencies			Municipal			RMBS			Total Fixed Maturities, AFS			Fixed Maturities, FVO
Fair value as of January 1, 2012	$	317		$	328		$	348		$	1,497		$	37		$	382		$	933		$	3,842		$	484
Total realized/unrealized gains (losses)
Included in net income [1], [2]	—			1			(4		)	(3		)	—			—			2			(4		)	27
Included in OCI [3]	9			49			18			9			—			(12		)	29			102			—
Purchases	—			—			10			106			6			151			61			334			—
Settlements	(34		)	(9		)	(21		)	(19		)	(1		)	—			(28		)	(112		)	—
Sales	(9		)	(1		)	—			(32		)	—			—			(22		)	(64		)	(14		)
Transfers into Level 3 [4]	—			317			280			139			—			—			—			736			—
Transfers out of Level 3 [4]	(24		)	—			(11		)	(349		)	—			—			—			(384		)	—
Fair value as of March 31, 2012	$	259		$	685		$	620		$	1,348		$	42		$	521		$	975		$	4,450		$	497
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2012 [2] [7]	$	—		$	—		$	(4	)	$	(1	)	$	—		$	—		$	(5	)	$	(10	)	$	16

			Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS		Credit			Equity			Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging			Total Free- Standing Derivatives [5]
Fair value as of January 1, 2012	$	56	$	(489	)	$	36		$	(91	)	$	883		$	357		$	(35	)	$	661
Total realized/unrealized gains (losses)
Included in net income [1], [2]	—		77			(14		)	(1		)	(312		)	(184		)	(18		)	(452		)
Included in OCI [3]	2		—			—			—			—			—			—			—
Purchases	—		—			26			—			—			—			(48		)	(22		)
Settlements	—		(3		)	(16		)	—			—			—			36			17
Sales	—		—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—		—			—			—			23			—			8			31
Fair value as of March 31, 2012	$	58	$	(415	)	$	32		$	(92	)	$	594		$	173		$	(57	)	$	235
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2012 [2] [7]	$	—	$	70		$	(3	)	$	(1	)	$	(312	)	$	(183	)	$	(15	)	$	(444	)

3. Fair Value Measurements (continued)

Assets	Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB,  and GMAB [6]			Separate Accounts
Fair value as of January 1, 2012	$	3,073		$	1,031
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(1,058		)	17
Included in OCI [3]	(163		)	—
Purchases	—			215
Settlements	86			—
Sales	—			(342		)
Transfers into Level 3 [4]	—			439
Transfers out of Level 3 [4]	—			(14		)
Fair value as of March 31, 2012	$	1,938		$	1,346
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2012 [2] [7]	$	(1,058	)	$	6

	Other Policyholder Funds and Benefits Payable [1]
Liabilities	Guaranteed Living Benefits [7]			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Other Liabilities			Consumer Notes
Fair value as of January 1, 2012	$	(5,776	)	$	(9	)	$	(5,785	)	$	(9	)	$	(4	)
Total realized/unrealized gains (losses)
Included in net income [1], [2]	1,520			(1		)	1,519			(12		)	—
Included in OCI [3]	183			—			183			—			—
Settlements	(72		)	—			(72		)	—			—
Fair value as of March 31, 2012	$	(4,145	)	$	(10	)	$	(4,155	)	$	(21	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at March 31, 2012 [2] [7]	$	1,520		$	(1	)	$	1,519		$	(12	)	$	—

[1] The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives.

[2] All amounts in these rows are reported in net realized capital gains (losses). The realized/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 for the Company. All amounts are before income taxes and amortization of DAC.

[3] All amounts are before income taxes and amortization of DAC.

[4] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[5] Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Condensed Consolidated Balance Sheet in other investments and other liabilities.

[6] Includes fair value of reinsurance recoverables of approximately $435 and $1.6 billion as of March 31, 2013 and 2012, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 11 - Transactions with Affiliates of Notes to Condensed Consolidated Financial Statements for more information.

[7] Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

Fair value of assets and liabilities accounted for using the fair value option

	Three Months Ended March 31,
	2013			2012
Assets
Fixed maturities, FVO
Corporate	$	(9	)	$	1
CRE CDOs	9			19
Foreign government	(48		)	(49		)
Other liabilities
Credit-linked notes	—			(12		)
Total realized capital gains (losses)	$	(48	)	$	(41	)

Fair value of assets and liabilities accounted for using the fair value option

	As of
	March 31, 2013		December 31, 2012
Assets
Fixed maturities, FVO
Corporate	$	89	$	108
CDO	193		193
CMBS	6		4
Foreign government	641		699
Municipals	1		1
RMBS	5		3
U.S. Government	—		2
Total fixed maturities, FVO	$	935	$	1,010

Financial Instruments Not Carried at Fair Value

	March 31, 2013			December 31, 2012
	Fair Value Hierarchy Level	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Assets
Policy loans	Level 3	1,416	1,481	1,951	2,112
Mortgage loans	Level 3	3,585	3,702	4,935	5,109
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	9,199	9,521	9,318	9,668
Consumer notes [2]	Level 3	130	131	159	159

[1] Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance.

[2] Excludes amounts carried at fair value and included in disclosures above.