Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

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

The following tables present assets and (liabilities) carried at fair value by hierarchy level. These disclosures provide information as to the extent to which the Company uses fair value to measure financial instruments and information about the inputs used to value those financial instruments to allow users to assess the relative reliability of the measurements. The following table presents assets and (liabilities) carried at fair value by hierarchy level.

	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
States, municipalities and political subdivisions (“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. guaranteed minimum withdrawal benefit ("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
U.S. macro hedge program	100			—			—			100
International program hedging instruments	(231		)	—			(171		)	(60		)
Total derivative liabilities [4]	38			—			(440		)	478
Other liabilities	—			—			—			—
Consumer notes [5]	(2		)	—			—			(2		)
Total liabilities accounted for at fair value on a recurring basis	$	(3,091	)	$	—		$	(440	)	$	(2,651	)

	December 31, 2011
	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	$	2,093		$	—	$	1,776		$	317
CDOs	1,798			—		1,470			328
CMBS	4,269			—		3,921			348
Corporate	30,229			—		28,732			1,497
Foreign government/government agencies	1,224			—		1,187			37
States, municipalities and political subdivisions (“Municipal”)	1,557			—		1,175			382
RMBS	3,823			—		2,890			933
U.S. Treasuries	2,785			487		2,298			—
Total fixed maturities	47,778			487		43,449			3,842
Fixed maturities, FVO	1,317			—		833			484
Equity securities, trading	1,967			1,967		—			—
Equity securities, AFS	398			227		115			56
Derivative assets
Credit derivatives	(27		)	—		(6		)	(21		)
Equity derivatives	31			—		—			31
Foreign exchange derivatives	505			—		505			—
Interest rate derivatives	78			—		38			40
U.S. GMWB hedging instruments	494			—		11			483
U.S. macro hedge program	357			—		—			357
International program hedging instruments	533			—		567			(34		)
Total derivative assets [1]	1,971			—		1,115			856
Short-term investments	3,882			520		3,362			—
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB	3,073			—		—			3,073
Separate account assets [3]	139,421			101,633		36,757			1,031
Total assets accounted for at fair value on a recurring basis	$	199,807		$	104,834	$	85,631		$	9,342
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
Guaranteed living benefits	$	(5,776	)	$	—	$	—		$	(5,776	)
Equity linked notes	(9		)	—		—			(9		)
Total other policyholder funds and benefits payable	(5,785		)	—		—			(5,785		)
Derivative liabilities
Credit derivatives	(493		)	—		(25		)	(468		)
Equity derivatives	5			—		—			5
Foreign exchange derivatives	140			—		140			—
Interest rate derivatives	(315		)	—		(184		)	(131		)
U.S. GMWB hedging instruments	400			—		—			400
International program hedging instruments	9			—		10			(1		)
Total derivative liabilities [4]	(254		)	—		(59		)	(195		)
Other liabilities	(9		)	—		—			(9		)
Consumer notes [5]	(4		)	—		—			(4		)
Total liabilities accounted for at fair value on a recurring basis	$	(6,052	)	$	—	$	(59	)	$	(5,993	)

[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 December 31, 2012 and December 31, 2011, $92 million and $1.4 billion, respectively, was the amount of cash collateral liability that was netted against the derivative asset value on the 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 December 31, 2012 and December 31, 2011, excludes approximately $3.1 billion and $4.0 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

The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value.

	As of December 31, 2012
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	$	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 December 31, 2012
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	$	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

Significant increases in any of the significant unobservable inputs, in isolation, will generally have an increase or decrease correlation with the fair value measurement, as shown in the table.

	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]	0%	8%	Increase
Annuitization utilization [3]	0%	100%	Increase
Lapse Rates [4]	0%	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, 2012	$	317		$	328		$	348		$	1,497		$	37		$	382		$	933		$	3,842		$	484
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(2		)	(19		)	(41		)	2			—			(5		)	(68		)	(133		)	106
Included in OCI [3]	45			134			89			(38		)	1			34			298			563			—
Purchases	18			—			18			169			9			174			289			677			1
Settlements	(58		)	(36		)	(111		)	(98		)	(4		)	—			(125		)	(432		)	(1		)
Sales	(34		)	(1		)	(109		)	(74		)	(11		)	(91		)	(173		)	(493		)	(391		)
Transfers into Level 3 [4]	12			317			422			538			2			—			2			1,293			—
Transfers out of Level 3 [4]	(60		)	—			(84		)	(656		)	—			(325		)	(23		)	(1,148		)	—
Fair value as of December 31, 2012	$	238		$	723		$	532		$	1,340		$	34		$	169		$	1,133		$	4,169		$	199
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	(1	)	$	(11	)	$	(17	)	$	(7	)	$	—		$	(5	)	$	(11	)	$	(52	)	$	(7	)

				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]	3			155			(32		)	2			(431		)	(323		)	(83		)	(712		)
Included in OCI [3]	(3		)	—			—			—			—			—			—			—
Purchases	11			—			57			1			56			252			(60		)	306
Settlements	—			338			(16		)	—			(12		)	—			95			405
Sales	(12		)	—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—			—			31			23			—			8			62
Fair value as of December 31, 2012	$	55		$	4		$	45		$	(57	)	$	519		$	286		$	(75	)	$	722
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	2		$	126		$	(8	)	$	(1	)	$	(425	)	$	(322	)	$	(85	)	$	(715	)

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, 2012	$	—		$	3,073		$	1,031
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(11		)	(2,142		)	37
Included in OCI [3]	—			(231		)	—
Purchases	26			—			252
Settlements	—			381			(1		)
Sales	—			—			(476		)
Transfers into Level 3 [4]	135			—			443
Transfers out of Level 3 [4]	—			—			(703		)
Fair value as of December 31, 2012	$	150		$	1,081		$	583
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	(11	)	$	(2,142	)	$	28

	Other Policyholder Funds and Benefits Payable
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]	2,656			1			2,657			(34		)	2
Included in OCI [3]	264			—			264			—			—
Settlements [8]	(263		)	—			(263		)	43			—
Fair value as of December 31, 2012	$	(3,119	)	$	(8	)	$	(3,127	)	$	—		$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7]	$	2,656		$	1		$	2,657		$	—		$	2

The tables below provide a fair value roll forward for the year ended December 31, 2011 for the financial instruments classified as Level 3.

	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, 2011	$	408		$	1,869		$	492		$	1,486		$	40		$	258		$	1,105		$	5,658		$	511
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(26		)	(30		)	13			(27		)	—			—			(21		)	(91		)	23
Included in OCI [3]	18			112			41			(14		)	—			46			(3		)	200			—
Purchases	35			—			18			83			—			87			25			248			—
Settlements	(32		)	(129		)	(72		)	(92		)	(3		)	—			(111		)	(439		)	(2		)
Sales	(9		)	(54		)	(225		)	(122		)	—			—			(16		)	(426		)	(43		)
Transfers into Level 3 [4]	79			30			131			498			29			—			69			836			—
Transfers out of Level 3 [4]	(156		)	(1,470		)	(50		)	(315		)	(29		)	(9		)	(115		)	(2,144		)	(5		)
Fair value as of December 31, 2011	$	317		$	328		$	348		$	1,497		$	37		$	382		$	933		$	3,842		$	484
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	(14	)	$	(29	)	$	(5	)	$	(11	)	$	—		$	—		$	(15	)	$	(74	)	$	19

				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, 2011	$	47		$	(344	)	$	4		$	(53	)	$	600		$	203		$	5		$	415
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(11		)	(144		)	(8		)	9			279			(128		)	3			11
Included in OCI [3]	(3		)	—			—			—			—			—			—			—
Purchases	31			20			40			—			23			347			(43		)	387
Settlements	—			(21		)	—			(47		)	(19		)	(65		)	—			(152		)
Sales	(4		)	—			—			—			—			—			—			—
Transfers out of Level 3 [4]	(4		)	—			—			—			—			—			—			—
Fair value as of December 31, 2011	$	56		$	(489	)	$	36		$	(91	)	$	883		$	357		$	(35	)	$	661
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	(9	)	$	(137	)	$	(8	)	$	10		$	278		$	(107	)	$	(4	)	$	32

Assets	Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB,  and GMAB [6]		Separate Accounts
Fair value as of January 1, 2011	$	2,002	$	1,247
Total realized/unrealized gains (losses)
Included in net income [1], [2]	504		25
Included in OCI [3]	111		—
Purchases	—		292
Settlements	456		—
Sales	—		(171		)
Transfers into Level 3 [4]	—		14
Transfers out of Level 3 [4]	—		(376		)
Fair value as of December 31, 2011	$	3,073	$	1,031
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	504	$	(1	)

	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, 2011	$	(4,258	)	$	(9	)	$	(4,267	)	$	(37	)	$	(5	)
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(1,118		)	—			(1,118		)	28			1
Included in OCI [3]	(126		)	—			(126		)	—			—
Settlements	(274		)	—			(274		)	—			—
Fair value as of December 31, 2011	$	(5,776	)	$	(9	)	$	(5,785	)	$	(9	)	$	(4	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2011 [2] [7]	$	(1,118	)	$	—		$	(1,118	)	$	28		$	1

[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 Consolidated Balance Sheet in other investments and other liabilities.

[6] Includes fair value of reinsurance recoverables of approximately $0.9 billion and $2.6 billion as of December 31, 2012 and 2011, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 16 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information.

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

[8] Settlements of other liabilities reflect the removal of liabilities carried at fair value upon the deconsolidation of a variable interest entity. See Note 4 - Investments and Derivative Instruments of Notes to Consolidated Financial Statements for additional information.

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

The following table presents the changes in fair value of those assets and liabilities accounted for using the fair value option reported in net realized capital gains and losses in the Company’s Consolidated Statements of Operations.

	Year Ended December 31,
	2012			2011
Assets
Fixed maturities, FVO
Corporate	$	9		$	10
CRE CDOs	64			(33		)
CMBS	(2		)	—
Foreign government	(88		)	45
RMBS	5			—
Other liabilities
Credit-linked notes	(34		)	28
Total realized capital gains (losses)	$	(46	)	$	50

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

The following table presents the fair value of assets and liabilities accounted for using the fair value option included in the Company's Consolidated Balance Sheets.

	December 31, 2012		December 31, 2011
Assets
Fixed maturities, FVO
ABS	$	—	$	65
Corporate	108		214
CRE CDOs	193		272
CMBS	4		—
Foreign government	699		766
Municipals	1		—
RMBS	3		—
U.S. government	2		—
Total fixed maturities, FVO	$	1,010	$	1,317
Other liabilities
Credit-linked notes [1]	$	—	$	9

[1] As of December 31, 2011, the outstanding principal balance of the notes was $243.

Financial Instruments Not Carried at Fair Value

The following presents carrying amounts and fair values of the Company's financial instruments not carried at fair value, and not included in the above fair value discussion as of December 31, 2012 and December 31, 2011 were as follows:

	December 31, 2012			December 31, 2011
	Fair Value Hierarchy Level	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Assets
Policy loans	Level 3	1,951	2,112	1,952	2,099
Mortgage loans	Level 3	4,935	5,109	4,182	4,382
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	9,318	9,668	10,065	10,959
Consumer notes [2]	Level 3	159	159	310	305

[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.