Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

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

	September 30, 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	$	1,115		$	—		$	942		$	173
CDOs	1,643			—			1,086			557
CMBS	2,438			—			1,968			470
Corporate	17,348			—			16,507			841
Foreign government/government agencies	1,179			—			1,133			46
Municipal	1,041			—			933			108
RMBS	2,663			—			1,743			920
U.S. Treasuries	2,314			55			2,259			—
Total fixed maturities	29,741			55			26,571			3,115
Fixed maturities, FVO	949			—			753			196
Equity securities, trading	11			11			—			—
Equity securities, AFS	385			200			127			58
Derivative assets
Credit derivatives	25			—			6			19
Equity derivatives	6			—			—			6
Foreign exchange derivatives	(50		)	—			(50		)	—
Interest rate derivatives	(27		)	—			(27		)	—
U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments	79			—			(18		)	97
U.S. macro hedge program	160			—			—			160
International program hedging instruments	84			—			91			(7		)
Other derivative contracts	—						—			—
Total derivative assets [1]	277			—			2			275
Short-term investments	2,262			324			1,938			—
Limited partnerships and other alternatives [2]	463			—			302			161
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB	(36		)	—			61			(97		)
Separate account assets [3]	136,447			98,149			37,563			735
Assets held for sale	2,211			1,732			471			8
Total assets accounted for at fair value on a recurring basis	$	172,710		$	100,471		$	67,788		$	4,451
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	$	(1,053	)	$	—		$	—		$	(1,053	)
Equity linked notes	(13		)	—			—			(13		)
Total other policyholder funds and benefits payable	(1,066		)	—			—			(1,066		)
Derivative liabilities
Credit derivatives	(16		)	—			—			(16		)
Equity derivatives	13			—			(1		)	14
Foreign exchange derivatives	(206		)	—			(206		)	—
Interest rate derivatives	(337		)	—			(311		)	(26		)
U.S. GMWB hedging instruments	79			—			(43		)	122
U.S. macro hedge program	21			—			—			21
International program hedging instruments	(277		)	—			(113		)	(164		)
Total derivative liabilities [4]	(723		)	—			(674		)	(49		)
Consumer notes [5]	(1		)	—			—			(1		)
Liabilities held for sale	(31		)	—			—			(31		)
Total liabilities accounted for at fair value on a recurring basis	$	(1,821	)	$	—		$	(674	)	$	(1,147	)

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
U.S. macro hedge program	100			—			—			100
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("OTC") and OTC-cleared derivative instruments in a net asset value position after consideration of the impact of collateral posting requirements which may be imposed by agreements, clearing house rules and applicable law. At September 30, 2013 and December 31, 2012, $89 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 footnote 4 below.

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

[3] As of September 30, 2013 and December 31, 2012, excludes approximately $3.4 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 September 30, 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	$	470	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	67bps		2,615bps		624bps		Decrease
Corporate [3]	431		Discounted cash flows	Spread	175bps		5,014bps		388bps		Decrease
Municipal	108		Discounted cash flows	Spread	192bps		290bps		229bps		Decrease
RMBS	920		Discounted cash flows	Spread	64bps		1,992bps		284bps		Decrease
				Constant prepayment rate	0.0	%	10.0	%	2.0	%	Decrease [4]
				Constant default rate	1.0	%	17.0	%	8.0	%	Decrease
				Loss severity	—	%	100.0	%	79.0	%	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 September 30, 2013
Freestanding Derivatives						Unobservable Inputs
	Fair Value			Predominant Valuation Method	Significant Unobservable Input	Minimum	Maximum	Impact of Increase in Input on Fair Value [1]
Interest rate derivative
Interest rate swaps	(26		)	Discounted  cash flows	Swap curve  beyond 30 years	3.4%	3.4%	Increase
U.S. GMWB hedging instruments
Equity options	108			Option model	Equity volatility	21%	36%	Increase
Customized swaps	111			Discounted  cash flows	Equity volatility	10%	50%	Increase
U.S. macro hedge program
Equity options	181			Option model	Equity volatility	22%	34%	Increase
International hedging program
Equity options	(171		)	Option model	Equity volatility	29%	39%	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 June 30, 2013	$	169		$	629		$	485		$	813		$	44		$	109		$	971		$	3,220		$	197
Total realized/unrealized gains (losses)
Included in net income [1], [2]	—			—			(9		)	(2		)	—			—			(2		)	(13		)	(1		)
Included in OCI [3]	1			3			33			5			—			(1		)	(3		)	38			—
Purchases	5			4			17			23			3			—			29			81			3
Settlements	(1		)	(50		)	(20		)	(2		)	(1		)	—			(36		)	(110		)	—
Sales	—			—			(28		)	(3		)	—			—			(39		)	(70		)	(1		)
Transfers into Level 3 [4]	—			—			5			26			—			—			—			31			—
Transfers out of Level 3 [4]	(1		)	(29		)	(13		)	(19		)	—			—			—			(62		)	(2		)
Fair value as of September 30, 2013	$	173		$	557		$	470		$	841		$	46		$	108		$	920		$	3,115		$	196
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	—		$	—		$	(4	)	$	(2	)	$	—		$	—		$	(4	)	$	(10	)	$	(1	)

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			Other derivative contracts			Total Free- Standing Derivatives [5]
Fair value as of June 30, 2013	$	62		$	3	$	25		$	(51	)	$	329		$	209		$	(116	)	$	(20	)	$	379
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(4		)	—		(6		)	1			(109		)	(39		)	(65		)	—			(218		)
Included in OCI [3]	—			—		—			—			—			—			—			—			—
Purchases	—			—		1			—			—			11			(4		)	—			8
Settlements	—			—		—			—			(1		)	—			42			—			41
Sales	—			—		—			—			—			—			—			—			—
Transfers into Level 3 [4]	—			—		—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—		—			24			—			—			(28		)	20			16
Fair value as of September 30, 2013	$	58		$	3	$	20		$	(26	)	$	219		$	181		$	(171	)	$	—		$	226
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	(4	)	$	—	$	(5	)	$	1		$	(111	)	$	(39	)	$	(47	)	$	—		$	(201	)

Assets	Limited Partnerships and Other Alternative Investments			Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB,  and GMAB [6]			Assets held for Sale			Separate Accounts
Fair value as of June 30, 2013	$	174		$	225		$	5		$	820
Transfers to assets held for sale	—			—			—			—
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(10		)	(405		)	5			(9		)
Included in OCI [3]	—			6			—			—
Purchases	17			—			—			(19		)
Settlements	—			77			(2		)	—
Sales	—			—			—			(35		)
Transfers into Level 3 [4]	—			—			—			35
Transfers out of Level 3 [4]	(20		)	—			—			(57		)
Fair value as of September 30, 2013	$	161		$	(97	)	$	8		$	735
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	(10	)	$	(405	)	$	5		$	3

	Other Policyholder Funds and Benefits Payable
Liabilities	Guaranteed Living Benefits [7]			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Liabilities Held for Sale			Consumer Notes
Fair value as of June 30, 2013	$	(1,676	)	$	(12	)	$	(1,688	)	$	(28	)	$	(1	)
Transfers to liabilities held for sale	—			—			—			—			—
Total realized/unrealized gains (losses)
Included in net income [1], [2]	677			(1		)	676			—			—
Included in OCI [3]	(9		)	—			(9		)	(2		)	—
Settlements	(45		)	—			(45		)	(1		)	—
Fair value as of September 30, 2013	$	(1,053	)	$	(13	)	$	(1,066	)	$	(31	)	$	(1	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	677		$	(1	)	$	676		$	—		$	—

3. Fair Value Measurements (continued)

The tables below provide a fair value roll forward for the nine months ended September 30, 2013, for Level 3 financial instruments.

	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]	—			(11		)	(11		)	12			1			—			27			18			8
Included in OCI [3]	16			101			66			(18		)	(5		)	(10		)	34			184			—
Purchases	21			30			30			68			27			—			61			237			12
Settlements	(5		)	(85		)	(65		)	(65		)	(3		)	—			(104		)	(327		)	(1		)
Sales	(83		)	(195		)	(97		)	(300		)	(6		)	(51		)	(231		)	(963		)	(22		)
Transfers into Level 3 [4]	—			23			35			85			—			—			—			143			3
Transfers out of Level 3 [4]	(14		)	(29		)	(20		)	(281		)	(2		)	—			—			(346		)	(3		)
Fair value as of September 30, 2013	$	173		$	557		$	470		$	841		$	46		$	108		$	920		$	3,115		$	196
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	(4	)	$	—		$	(5	)	$	(4	)	$	—		$	—		$	(5	)	$	(18	)	$	28

				Freestanding Derivatives [5]
Assets (Liabilities)	Equity Securities, AFS			Credit			Equity			Interest Rate			U.S. GMWB Hedging			U.S. Macro Hedge Program			Intl. Program Hedging			Other derivative contracts			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]	(8		)	—			(23		)	5			(299		)	(139		)	(149		)	—			(605		)
Included in OCI [3]	6																					—
Purchases	7			—			1			—			—			34			(29		)	—			6
Settlements	—			(1		)	(3		)	—			(1		)	—			54			—			49
Sales	(2		)	—			—			—			—			—			—						—
Transfers into Level 3 [4]	—			—			—			—			—			—			—			(20		)	(20		)
Transfers out of Level 3 [4]	—			—			—			26			—			—			28			20			74
Fair value as of September 30, 2013	$	58		$	3		$	20		$	(26	)	$	219		$	181		$	(171	)	$	—		$	226
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	(7	)	$	—		$	(21	)	$	—		$	(296	)	$	(136	)	$	(75	)	$	—		$	(528	)

3. Fair Value Measurements (continued)

Assets	Limited Partnerships and Other Alternative Investments			Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB,  and GMAB [6]			Assets held for Sale			Separate Accounts
Fair value as of January 1, 2013	$	150		$	1,081		$	—		$	583
Transfers to assets held for sale	—			(12		)	12			—
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(8		)	(1,241		)	3			7
Included in OCI [3]	—			(164		)	—			—
Purchases	59			—			—			240
Settlements	—			239			(7		)	(1		)
Sales	(9		)	—						(66		)
Transfers into Level 3 [4]	—			—			—			39
Transfers out of Level 3 [4]	(31		)	—			—			(67		)
Fair value as of September 30, 2013	$	161		$	(97	)	$	8		$	735
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	(8	)	$	(1,241	)	$	3		$	15

	Other Policyholder Funds and Benefits Payable
Liabilities	Guaranteed Living Benefits [7]			Equity Linked Notes			Total Other Policyholder Funds and Benefits Payable			Liabilities Held for Sale			Consumer Notes
Fair value as of January 1, 2013	$	(3,119	)	$	(8	)	$	(3,127	)	$	—		$	(2	)
Transfers to liabilities held for sale	43			—			43			(43		)	—
Total realized/unrealized gains (losses)
Included in net income [1], [2]	1,936			(5		)	1,931			14			1
Included in OCI [3]	197			—			197			1			—
Settlements [8]	(110		)	—			(110		)	(3		)	—
Fair value as of September 30, 2013	$	(1,053	)	$	(13	)	$	(1,066	)	$	(31	)	$	(1	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2013 [2] [7]	$	1,936		$	(5	)	$	1,931		$	14		$	1

The tables below provide a fair value roll forward for the three months ended September 30, 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 June 30, 2012	$	269		$	685		$	610		$	1,221		$	42		$	506		$	1,035		$	4,368		$	482
Total realized/unrealized gains (losses)
Included in net income [1], [2]	1			(6		)	(7		)	(5		)	—			(4		)	(17		)	(38		)	32
Included in OCI [3]	8			37			17			(29		)	—			13			145			191			—
Purchases	6			—			7			15			2			—			41			71			—
Settlements	(4		)	(6		)	(22		)	(1		)	(1		)	—			(33		)	(67		)	—
Sales	(9		)	—			(74		)	(6		)	(10		)	(22		)	(53		)	(174		)	—
Transfers into Level 3 [4]	9			—			11			179			—			—			2			201			—
Transfers out of Level 3 [4]	(12		)	—			—			(28		)	—			(303		)	(23		)	(366		)	—
Fair value as of September 30, 2012	$	268		$	710		$	542		$	1,346		$	33		$	190		$	1,097		$	4,186		$	514
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	1		$	(6	)	$	(7	)	$	(4	)	$	—		$	(4	)	$	(17	)	$	(37	)	$	32

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 June 30, 2012	$	57		$	(388	)	$	43		$	(91	)	$	756		$	180		$	(55	)	$	445
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(2		)	49			(12		)	1			(159		)	(98		)	(79		)	(298		)
Included in OCI [3]	—			—			—			—			—			—			—			—
Purchases	2			—			24			1			19			—			15			59
Settlements	—			59			—			—			—			—			17			76
Sales	(1		)	—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—			—			31			—			—			—			31
Fair value as of September 30, 2012	$	56		$	(280	)	$	55		$	(58	)	$	616		$	82		$	(102	)	$	313
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	(2	)	$	25		$	(10	)	$	1		$	(159	)	$	(98	)	$	(51	)	$	(292	)

Assets	Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB,  and GMAB [6]			Separate Accounts
Fair value as of June 30, 2012	$	2,662		$	1,335
Total realized/unrealized gains (losses)
Included in net income [1], [2]	(916		)	(2		)
Included in OCI [3]	67			—
Purchases	—			97
Settlements	98			—
Sales	—			(41		)
Transfers into Level 3 [4]	—			(3		)
Transfers out of Level 3 [4]	—			(7		)
Fair value as of September 30, 2012	$	1,911		$	1,379
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	(916	)	$	8

	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 June 30, 2012	$	(5,143	)	$	(10	)	$	(5,153	)	$	(29	)	$	(4	)
Total realized/unrealized gains (losses)
Included in net income [1], [2]	1,176			—			1,176			(14		)	2
Included in OCI [3]	(76		)	—			(76		)	—			—
Settlements	(65		)	—			(65		)	—			—
Fair value as of September 30, 2012	$	(4,108	)	$	(10	)	$	(4,118	)	$	(43	)	$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	1,176		$	—		$	1,176		$	(14	)	$	2

3. Fair Value Measurements (continued)

The tables below provide a fair value roll forward for the nine months ended September 30, 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]	—			(8		)	(30		)	(8		)	—			(4		)	(6		)	(56		)	53
Included in OCI [3]	39			98			57			(44		)	1			31			193			375			—
Purchases	18			—			18			141			8			174			253			612			—
Settlements	(40		)	(24		)	(66		)	(39		)	(3		)	—			(92		)	(264		)	—
Sales	(21		)	(1		)	(108		)	(39		)	(10		)	(82		)	(163		)	(424		)	(23		)
Transfers into Level 3 [4]	9			317			398			438			—			—			2			1,164			—
Transfers out of Level 3 [4]	(54		)	—			(75		)	(600		)	—			(311		)	(23		)	(1,063		)	—
Fair value as of September 30, 2012	$	268		$	710		$	542		$	1,346		$	33		$	190		$	1,097		$	4,186		$	514
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	(1	)	$	(8	)	$	(3	)	$	(4	)	$	—		$	(4	)	$	1		$	(19	)	$	61

				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]	2			153			(24		)	1			(332		)	(275		)	(64		)	(541		)
Included in OCI [3]	(2		)	—			—			—			—			—			—			—
Purchases	10			—			59			1			42			—			(64		)	38
Settlements	—			56			(16		)	—			—			—			53			93
Sales	(10		)	—			—			—			—			—			—			—
Transfers out of Level 3 [4]	—			—			—			31			23			—			8			62
Fair value as of September 30, 2012	$	56		$	(280	)	$	55		$	(58	)	$	616		$	82		$	(102	)	$	313
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	2		$	122		$	(11	)	$	1		$	(332	)	$	(274	)	$	(37	)	$	(531	)

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]	(1,429		)	31
Included in OCI [3]	(23		)	—
Purchases	—			336
Settlements	290			(1		)
Sales	—			(442		)
Transfers into Level 3 [4]	—			451
Transfers out of Level 3 [4]	—			(27		)
Fair value as of September 30, 2012	$	1,911		$	1,379
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	(1,429	)	$	18

	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]	1,847			(1		)	1,846			(34		)	2
Included in OCI [3]	26			—			26			—			—
Settlements	(205		)	—			(205		)	—			—
Fair value as of September 30, 2012	$	(4,108	)	$	(10	)	$	(4,118	)	$	(43	)	$	(2	)
Changes in unrealized gains (losses) included in net income related to financial instruments still held at September 30, 2012 [2] [7]	$	1,847		$	(1	)	$	1,846		$	(34	)	$	2

[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 $148 and $1.7 billion as of September 30, 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 September 30,					Nine Months Ended September 30,
	2013		2012			2013			2012
Assets
Fixed maturities, FVO
Corporate	$	1	$	6		$	(12	)	$	6
CRE CDOs	—		18			3			27
Foreign government	8		13			(77		)	(16		)
Other liabilities
Credit-linked notes	—		(14		)	—			(34		)
Total realized capital gains (losses)	$	9	$	23		$	(86	)	$	(17	)

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

	As of
	September 30, 2013		December 31, 2012
Assets
Fixed maturities, FVO
ABS	$	3	$	—
Corporate	79		108
CDO	186		193
CMBS	8		4
Foreign government	650		699
Municipals	1		1
RMBS	5		3
U.S. Government	17		2
Total fixed maturities, FVO	$	949	$	1,010

Financial Instruments Not Carried at Fair Value

	September 30, 2013			December 31, 2012
	Fair Value Hierarchy Level	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Assets
Policy loans	Level 3	1,410	1,478	1,951	2,112
Mortgage loans	Level 3	3,552	3,591	4,935	5,109
Liabilities
Other policyholder funds and benefits payable [1]	Level 3	9,224	9,433	9,318	9,668
Consumer notes [2]	Level 3	81	82	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.