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Investments and Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2013
Derivative [Line Items]  
Offsetting Assets and Liabilities
September 30, 2013
 
(i)
 
(ii)
 
(iii) = (i) - (ii)
(iv)
 
(v) = (iii) - (iv)
 
 
 
 
 
Net Amounts Presented in the Statement of Financial Position
 
Gross Amounts Not Offset in the Statement of Financial Position
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Assets [1]
 
Accrued Interest and Cash Collateral Received [2]
 
Financial Collateral Received [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other investments
$
1,503

 
$
1,207

 
$
277

 
$
19

 
$
179

 
$
117

 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Liabilities [3]
 
Accrued Interest and Cash Collateral Pledged [3]
 
Financial Collateral Pledged [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
(1,949
)
 
$
(1,242
)
 
$
(723
)
 
$
16

 
$
(844
)
 
$
137

As of December 31, 2012
 
(i)
 
(ii)
 
(iii) = (i) - (ii)
(iv)
 
(v) = (iii) - (iv)
 
 
 
 
 
Net Amounts Presented in the Statement of Financial Position
 
Gross Amounts Not Offset in the Statement of Financial Position
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Assets [1]
 
Accrued Interest and Cash Collateral Received [2]
 
Financial Collateral Received [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other investments
$
2,732

 
$
2,238

 
$
581

 
$
(87
)
 
$
490

 
$
4

 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Liabilities [3]
 
Accrued Interest and Cash Collateral Pledged [3]
 
Financial Collateral Pledged [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
(2,113
)
 
$
(1,759
)
 
$
38

 
$
(392
)
 
$
(300
)
 
$
(54
)
[1]
Included in other invested assets in the Company's Condensed Consolidated Balance Sheets.
[2]
Included in other assets in the Company's Condensed Consolidated Balance Sheets.
[3]
Included in other liabilities in the Company's Condensed Consolidated Balance Sheets.
[4]
Excludes exchange-traded futures which are settled daily.
4. Investments and Derivative Instrumen
Net Realized Capital Gains (Losses)
 
Three Months Ended September 30,
Nine Months Ended September 30,
(Before-tax)
2013
2012
2013
2012
Gross gains on sales [1]
$
50

$
120

$
1,723

$
402

Gross losses on sales
(47
)
(83
)
(145
)
(244
)
Net OTTI losses recognized in earnings
(16
)
(13
)
(32
)
(77
)
Valuation allowances on mortgage loans
—

—

—

—

Japanese fixed annuity contract hedges, net [2]
(8
)
(24
)
(4
)
(42
)
Periodic net coupon settlements on credit derivatives/Japan
3

4

(2
)
4

Results of variable annuity hedge program
 
 
 
 
U.S. GMWB derivatives, net
203

381

219

451

U.S. macro hedge program
(50
)
(109
)
(182
)
(292
)
Total U.S. program
153

272

37

159

International Program
(72
)
(122
)
(671
)
(484
)
Total results of variable annuity hedge program
81

150

(634
)
(325
)
GMIB/GMAB/GMWB reinsurance
226

348

837

599

Coinsurance and modified coinsurance reinsurance contracts
(322
)
(734
)
(1,023
)
(1,176
)
Other, net [3]
(8
)
40

77

81

Net realized capital gains (losses)
$
(41
)
$
(192
)
$
797

$
(778
)
[1]
Includes $1.5 billion of gross gains relating to the sales of the Retirement Plans and Individual Life businesses for the nine months ended September 30, 2013.
[2]
Relates to the Japanese fixed annuity product (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding net periodic coupon settlements, and Japan FVO securities).
[3]
Primarily consists of transactional foreign currency re-valuation associated with the internal reinsurance of the Japan variable annuity business, which is offset in AOCI, and changes in value of on non-qualifying derivatives and Japan 3Win related foreign currency swaps. Includes $71 of gains relating to the sales of the Retirement Plans and Individual Life businesses for the nine months ended September 30, 2013.

Other-Than-Temporary Impairment Losses
 
Three Months Ended September 30,
Nine Months Ended September 30,
(Before-tax)
2013
2012
2013
2012
Balance, beginning of period
$
(699
)
$
(1,158
)
$
(813
)
$
(1,319
)
Additions for credit impairments recognized on [1]:
 
 
 
 
Securities not previously impaired
—

(4
)
(8
)
(21
)
Securities previously impaired
(3
)
(7
)
(3
)
(15
)
Reductions for credit impairments previously recognized on:
 
 
 
 
Securities that matured or were sold during the period
34

96

152

279

Securities the Company made the decision to sell or more likely than not will be required to sell
2

—

2

—

Securities due to an increase in expected cash flows
7

1

11

4

Balance, end of period
$
(659
)
$
(1,072
)
$
(659
)
$
(1,072
)
[1]
These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.
Available-for-Sale Securities
 
September 30, 2013
 
December 31, 2012
 
Cost or Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Non-Credit OTTI [1]
 
Cost or Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Non-Credit OTTI [1]
ABS
$
1,202

$
13

$
(100
)
$
1,115

$
(3
)
 
$
1,807

$
38

$
(172
)
$
1,673

$
(4
)
CDOs [2]
1,602

112

(67
)
1,643

(1
)
 
2,236

61

(117
)
2,160

(4
)
CMBS
2,350

138

(50
)
2,438

(4
)
 
3,757

262

(107
)
3,912

(7
)
Corporate
16,345

1,273

(270
)
17,348

(8
)
 
27,774

3,426

(221
)
30,979

(19
)
Foreign govt./govt. agencies
1,265

27

(113
)
1,179

—

 
1,369

120

(29
)
1,460

—

Municipal
1,056

31

(46
)
1,041

—

 
1,808

204

(14
)
1,998

—

RMBS
2,659

77

(73
)
2,663

(9
)
 
4,590

196

(115
)
4,671

(28
)
U.S. Treasuries
2,359

32

(77
)
2,314

—

 
2,412

151

(12
)
2,551

—

Total fixed maturities, AFS
28,838

1,703

(796
)
29,741

(25
)
 
45,753

4,458

(787
)
49,404

(62
)
Equity securities, AFS
388

30

(33
)
385

—

 
408

28

(36
)
400

—

Total AFS securities [3]
$
29,226

$
1,733

$
(829
)
$
30,126

$
(25
)
 
$
46,161

$
4,486

$
(823
)
$
49,804

$
(62
)
[1]
Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of September 30, 2013 and December 31, 2012.
[2]
Gross unrealized gains (losses) exclude the change in fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in net realized capital gains (losses).
[3]
As of December 31, 2012, includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life Businesses; see Note 2 - Business Disposition of Notes to Condensed Consolidated Financial Statements for further discussion of this transaction
Contractual Maturity
 
September 30, 2013
Contractual Maturity
Amortized Cost
Fair Value
One year or less
$
1,556

$
1,585

Over one year through five years
5,273

5,468

Over five years through ten years
5,174

5,309

Over ten years
9,022

9,520

Subtotal
21,025

21,882

Mortgage-backed and asset-backed securities
7,813

7,859

Total fixed maturities, AFS
$
28,838

$
29,741
Securities Unrealized Loss Aging
 
September 30, 2013
 
Less Than 12 Months
12 Months or More
Total
 
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
226

$
223

$
(3
)
$
561

$
464

$
(97
)
$
787

$
687

$
(100
)
CDOs [1]
101

100

(1
)
1,383

1,315

(66
)
1,484

1,415

(67
)
CMBS
291

278

(13
)
495

458

(37
)
786

736

(50
)
Corporate
2,791

2,658

(133
)
990

853

(137
)
3,781

3,511

(270
)
Foreign govt./govt. agencies
874

763

(111
)
10

8

(2
)
884

771

(113
)
Municipal
569

531

(38
)
110

102

(8
)
679

633

(46
)
RMBS
741

718

(23
)
552

502

(50
)
1,293

1,220

(73
)
U.S. Treasuries
1,593

1,545

(48
)
114

85

(29
)
1,707

1,630

(77
)
Total fixed maturities, AFS
7,186

6,816

(370
)
4,215

3,787

(426
)
11,401

10,603

(796
)
Equity securities, AFS
75

72

(3
)
156

126

(30
)
231

198

(33
)
Total securities in an unrealized loss
$
7,261

$
6,888

$
(373
)
$
4,371

$
3,913

$
(456
)
$
11,632

$
10,801

$
(829
)
 
 
December 31, 2012
 
Less Than 12 Months
12 Months or More
Total
 
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
77

$
76

$
(1
)
$
787

$
616

$
(171
)
$
864

$
692

$
(172
)
CDOs [1]
5

5

—

1,640

1,515

(117
)
1,645

1,520

(117
)
CMBS
192

179

(13
)
795

701

(94
)
987

880

(107
)
Corporate
614

578

(36
)
1,339

1,154

(185
)
1,953

1,732

(221
)
Foreign govt./govt. agencies
318

290

(28
)
7

6

(1
)
325

296

(29
)
Municipal
65

62

(3
)
98

87

(11
)
163

149

(14
)
RMBS
322

321

(1
)
750

636

(114
)
1,072

957

(115
)
U.S. Treasuries
384

372

(12
)
—

—

—

384

372

(12
)
Total fixed maturities, AFS
1,977

1,883

(94
)
5,416

4,715

(693
)
7,393

6,598

(787
)
Equity securities, AFS
9

9

—

172

136

(36
)
181

145

(36
)
Total securities in an unrealized loss
$
1,986

$
1,892

$
(94
)
$
5,588

$
4,851

$
(729
)
$
7,574

$
6,743

$
(823
)

[1]
Unrealized losses exclude the change in fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in net realized capital gains (losses).
Mortgage Loans
 
September 30, 2013
December 31, 2012
 
Amortized Cost [1]
Valuation Allowance
Carrying Value
Amortized Cost [1]
Valuation Allowance
Carrying Value
Total commercial mortgage loans [2]
$
3,564

$
(12
)
$
3,552

$
4,949

$
(14
)
$
4,935
Valuation Allowance for Mortgage Loans
 
Six Months Ended June 30,
 
2013
2012
Balance, beginning of period
$
(14
)
$
(23
)
(Additions)/Reversals
—

—

Deductions
2

4

Balance, end of period
$
(12
)
$
(19
)
Commercial Mortgage Loans Credit Quality
Commercial Mortgage Loans Credit Quality
 
September 30, 2013
December 31, 2012
Loan-to-value
Carrying Value
Avg. Debt-Service Coverage Ratio
Carrying Value
Avg. Debt-Service Coverage Ratio
Greater than 80%
$
76

1.32x
$
137

0.89x
65% - 80%
895

1.99x
1,717

2.27x
Less than 65%
2,581

2.39x
3,081

2.44x
Total commercial mortgage loans
$
3,552

2.27x
$
4,935

2.34x
Mortgage Loans by Region
Mortgage Loans by Region
 
September 30, 2013
December 31, 2012
 
Carrying Value
Percent of Total
Carrying Value
Percent of Total
East North Central
$
80

2.3%
$
97

2.0%
Middle Atlantic
261

7.3%
370

7.5%
Mountain
40

1.1%
62

1.3%
New England
163

4.6%
231

4.7%
Pacific
1,064

30.0%
1,504

30.5%
South Atlantic
550

15.5%
1,012

20.5%
West North Central
17

0.5%
16

0.3%
West South Central
172

4.8%
234

4.7%
Other [1]
1,205

33.9%
1,409

28.5%
Total mortgage loans
$
3,552

100.0%
$
4,935

100.0%
[1]
Primarily represents loans collateralized by multiple properties in various regions.
Mortgage Loans by Property Type
Mortgage Loans by Property Type
 
September 30, 2013
December 31, 2012
 
Carrying Value
Percent of Total
Carrying Value
Percent of Total
Commercial
 
 
 
 
Agricultural
$
97

2.7
%
$
109

2.2
%
Industrial
1,189

33.5
%
1,519

30.8
%
Lodging
27

0.8
%
81

1.6
%
Multifamily
611

17.2
%
869

17.6
%
Office
737

20.7
%
1,120

22.7
%
Retail
766

21.6
%
1,047

21.2
%
Other
125

3.5
%
190

3.9
%
Total mortgage loans
$
3,552

100.0
%
$
4,935

100.0
%
Variable Interest Entities Primary Beneficiary
 
September 30, 2013
December 31, 2012
 
Total Assets
Total Liabilities  [1]
Maximum Exposure to Loss [2]
Total Assets
Total Liabilities  [1]
Maximum Exposure to Loss [2]
CDOs [3]
$
33

$
36

$
—

$
89

$
88

$
7

Investment funds [4]
126

20

112

132

20

110

Limited partnerships
4

2

2

6

3

3

Total
$
163

$
58

$
114

$
227

$
111

$
120

[1]
Included in other liabilities in the Company’s Condensed Consolidated Balance Sheets.
[2]
The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment.
[3]
Total assets included in fixed maturities, AFS in the Company’s Condensed Consolidated Balance
Sheets.
[4]
Total assets included in fixed maturities, FVO, and short-term investments in the Company’s Condensed Consolidated Balance Sheets.
GMWB reinsurance contracts
 
Notional Amount
Fair Value
 
September 30, 2013
December 31, 2012
September 30, 2013
December 31, 2012
Customized swaps
$
7,659

$
7,787

$
111

$
238

Equity swaps, options, and futures
4,548

5,130

107

267

Interest rate swaps and futures
6,924

5,705

(60
)
67

Total
$
19,131

$
18,622

$
158

$
572
Macro hedge program
 
Notional Amount
Fair Value
 
September 30, 2013
December 31, 2012
September 30, 2013
December 31, 2012
Equity options
6,599

7,442

181

286

Total
$
6,599

$
7,442

$
181

$
286
Derivative Classification by Balance Sheet Location
 
Net Derivatives
Asset Derivatives
Liability Derivatives
 
Notional Amount
Fair Value
Fair Value
Fair Value
Hedge Designation/ Derivative Type
Sep 30, 2013
Dec 31, 2012
Sep 30, 2013
Dec 31, 2012
Sep 30, 2013
Dec 31, 2012
Sep 30, 2013
Dec 31, 2012
Cash flow hedges
 
 
 
 
 
 
 
 
Interest rate swaps
$
3,372

$
3,863

$
47

$
167

$
63

$
167

$
(16
)
$
—

Foreign currency swaps
143

163

(8
)
(17
)
2

3

(10
)
(20
)
Total cash flow hedges
3,515

4,026

39

150

65

170

(26
)
(20
)
Fair value hedges
 
 
 
 
 
 
 
 
Interest rate swaps
1,490

753

(31
)
(55
)
2

—

(33
)
(55
)
Foreign currency swaps
40

40

15

16

15

16

—

—

Total fair value hedges
1,530

793

(16
)
(39
)
17

16

(33
)
(55
)
Non-qualifying strategies
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Interest rate swaps, swaptions, caps, floors, and futures
4,624

13,432

(380
)
(363
)
174

436

(554
)
(799
)
Foreign exchange contracts
 
 
 
 
 
 
 
 
Foreign currency swaps and forwards
110

182

(5
)
(9
)
6

5

(11
)
(14
)
Japan 3Win foreign currency swaps
1,816

1,816

(311
)
(127
)
—

—

(311
)
(127
)
Japanese fixed annuity hedging instruments
1,503

1,652

52

224

114

228

(62
)
(4
)
Credit contracts
 
 
 
 
 
 
 
 
Credit derivatives that purchase credit protection
584

1,539

(2
)
(5
)
3

3

(5
)
(8
)
Credit derivatives that assume credit risk [1]
1,624

1,981

15

(8
)
18

17

(3
)
(25
)
Credit derivatives in offsetting positions
3,874

5,341

(5
)
(22
)
44

56

(49
)
(78
)
Equity contracts
 
 
 
 
 
 
 
 
Equity index swaps and options
750

791

5

35

19

45

(14
)
(10
)
Variable annuity hedge program
 
 
 
 
 
 
 
 
U.S. GMWB product derivatives [2]
26,532

28,868

(210
)
(1,249
)
—

—

(210
)
(1,249
)
U.S. GMWB reinsurance contracts
4,795

5,773

46

191

46

191

—

—

U.S. GMWB hedging instruments
19,131

18,622

158

572

408

743

(250
)
(171
)
U.S. macro hedge program
6,599

7,442

181

286

228

356

(47
)
(70
)
International program product derivatives [2]
—

1,876

—

(42
)
—

—

—

(42
)
International program hedging instruments
56,681

48,448

(193
)
(105
)
407

657

(600
)
(762
)
Other
 
 
 
 
 
 
 
 
GMAB, GMWB, and GMIB reinsurance contracts
14,192

18,287

(843
)
(1,827
)
—

—

(843
)
(1,827
)
Coinsurance and modified coinsurance reinsurance contracts
35,418

44,985

(82
)
890

664

1,566

(746
)
(676
)
Total non-qualifying strategies
178,233

201,035

(1,574
)
(1,559
)
2,131

4,303

(3,705
)
(5,862
)
Total cash flow hedges, fair value hedges, and non-qualifying strategies
$
183,278

$
205,854

$
(1,551
)
$
(1,448
)
$
2,213

$
4,489

$
(3,764
)
$
(5,937
)
Balance Sheet Location
 
 
 
 
 
 
 
 
Fixed maturities, available-for-sale
$
192

$
416

$
(2
)
$
(20
)
$
—

$
—

$
(2
)
$
(20
)
Other investments
47,590

37,809

277

581

773

1,049

(496
)
(468
)
Other liabilities
54,500

67,765

(723
)
38

730

1,683

(1,453
)
(1,645
)
Consumer notes
9

26

(1
)
(2
)
—

—

(1
)
(2
)
Reinsurance recoverable
40,213

47,430

(36
)
1,081

710

1,757

(746
)
(676
)
Other policyholder funds and benefits payable
40,774

52,408

(1,066
)
(3,126
)
—

—

(1,066
)
(3,126
)
Total derivatives
$
183,278

$
205,854

$
(1,551
)
$
(1,448
)
$
2,213

$
4,489

$
(3,764
)
$
(5,937
)
[1]
 The derivative instruments related to this strategy are held for other investment purposes.
[2]
These derivatives are embedded within liabilities and are not held for risk management purposes.
Derivatives in Cash Flow Hedging Relationships
 
 
Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
Location
2013
2012
 
2013
2012
Interest rate swaps
Net realized capital gain/(loss)
$
—

$
1

 
$
66

$
5

Interest rate swaps
Net investment income
14

26

 
43

77

Foreign currency swaps
Net realized capital gain/(loss)
4

1

 
2

(7
)
Total
 
$
18

$
28

 
$
111

$
75
Derivatives in Fair Value Hedging Relationships
representing the ineffective portion of fair value hedges as follows:
4. Investments and Derivative Instruments (continued)
Derivatives in Fair-Value Hedging Relationships
 
Gain or (Loss) Recognized in Income [1]
 
Three months ended September 30,
 
Nine months ended September 30,
 
2013
 
2012
 
2013
 
2012
 
Derivative
Hedge Item
 
Derivative
Hedge Item
 
Derivative
Hedge Item
 
Derivative
Hedge Item
Interest rate swaps
 
 
 
 
 
 
 
 
 
 
 
Net realized capital gain/(loss)
$
—

$
9

 
$
(2
)
$
1

 
$
22

$
(21
)
 
$
(8
)
$
4

Foreign currency swaps
 
 
 
 
 
 
 
 
 
 
 
Net realized capital gain/(loss)
2

(2
)
 
(6
)
6

 
—

—

 
(8
)
8

Benefits, losses and loss adjustment expenses
(1
)
1

 
—

—

 
(2
)
2

 
(6
)
6

Total
$
1

$
8

 
$
(8
)
$
7

 
$
20

$
(19
)
 
$
(22
)
$
18

[1]
 The amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (
Gain or loss recognized in income on non-qualifying strategies
 
Three months ended September 30,
 
Nine months ended September 30,
 
2013
2012
 
2013
2012
Interest rate contracts
 
 
 
 
 
Interest rate swaps, caps, floors, and forwards
$
2

$
(4
)
 
$
(6
)
$
(6
)
Foreign exchange contracts
 
 
 
 
 
Foreign currency swaps and forwards
(1
)
(1
)
 
4

12

Japan 3Win foreign currency swaps [1]
—

15

 
(184
)
(106
)
Japanese fixed annuity hedging instruments [2]
6

24

 
(150
)
(46
)
Credit contracts
 
 
 
 
 
Credit derivatives that purchase credit protection
(1
)
4

 
(10
)
(15
)
Credit derivatives that assume credit risk
12

61

 
32

194

Equity contracts
 
 
 
 
 
Equity index swaps and options
(5
)
(9
)
 
(21
)
(22
)
Variable annuity hedge program
 
 
 
 
 
U.S. GMWB product derivatives
451

823

 
1,099

1,235

U.S. GMWB reinsurance contracts
(74
)
(184
)
 
(166
)
(265
)
U.S. GMWB hedging instruments
(174
)
(258
)
 
(714
)
(519
)
U.S. macro hedge program
(50
)
(109
)
 
(182
)
(292
)
International program product derivatives
—

—

 
—

—

International program hedging instruments
(72
)
(122
)
 
(671
)
(483
)
Other
 
 
 
 
 
GMAB, GMWB, and GMIB reinsurance contracts
226

348

 
837

599

Coinsurance and modified coinsurance reinsurance contracts
(322
)
(734
)
 
(1,023
)
(1,176
)
Total
$
(2
)
$
(146
)
 
$
(1,155
)
$
(890
)
[1]
The associated liability is adjusted for changes in spot rates through realized capital gains and was $(16) and $(46) for the three months ended September 30, 2013 and 2012, respectively, and $173 and $19 for the nine months ended September 30, 2013 and 2012, respectively.
[2]
 The associated liability is adjusted for changes in spot rates through realized capital gains and was $(19) and $(54) for the three months ended September 30, 2013 and 2012, respectively
Credit Derivatives Description
 As of September 30, 2013
 
 
 
 
Underlying Referenced
Credit Obligation(s) [1]
 
 
Credit Derivative type by derivative
risk exposure
Notional
Amount [2]
Fair
Value
Weighted
Average
Years to
Maturity
Type
Average
Credit
Rating
Offsetting
Notional
Amount [3]
Offsetting
Fair Value [3]
Single name credit default swaps
 
 
 
 
 
 
 
Investment grade risk exposure
$
1,316

$
11

2 years
Corporate Credit/
Foreign Gov.
A
$
754

$
(7
)
Below investment grade risk exposure
57

—

1 year
Corporate Credit
CCC+
58

—

Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
1,656

14

2 years
Corporate Credit
BBB+
774

(6
)
Below investment grade risk exposure
31

3

5 years
Corporate Credit
BB+
—

—

Investment grade risk exposure
236

(10
)
3 years
CMBS Credit
A
236

10

Below investment grade risk exposure
115

(23
)
3 years
CMBS Credit
B
115

23

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
150

144

4 years
Corporate Credit
BBB+
—

—

Total
$
3,561

$
139

 
 
 
$
1,937

$
20

 As of December 31, 2012
 
 
 
 
Underlying Referenced
Credit Obligation(s) [1]
 
 
Credit Derivative type by derivative
risk exposure
Notional
Amount [2]
Fair
Value
Weighted
Average
Years to
Maturity
Type
Average
Credit
Rating
Offsetting
Notional
Amount [3]
Offsetting
Fair Value [3]
Single name credit default swaps
 
 
 
 
 
 
 
Investment grade risk exposure
$
1,787

$
8

3 years
Corporate Credit/ Foreign Gov.
A
$
878

$
(19
)
Below investment grade risk exposure
114

(1
)
1 year
Corporate Credit
B+
114

(3
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
2,074

11

2 years
Corporate Credit
BBB+
1,326

(6
)
Investment grade risk exposure
237

(12
)
4 years
CMBS Credit
A
238

12

Below investment grade risk exposure
115

(27
)
4 years
CMBS Credit
B+
115

27

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
325

296

4 years
Corporate Credit
BBB-
—

—

Total
$
4,652

$
275

 
 
 
$
2,671

$
11

[1]
 The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.
[2]
Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and clearing house rules and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses going forward.
[3]
The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.
[4]
Includes $2.0 billion and $2.4 billion as of September 30, 2013 and December 31, 2012, respectively, of standard market indices of diversified portfolios of corporate issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.
International [Member]
  
Derivative [Line Items]  
Macro hedge program
 
Notional Amount
Fair Value
 
September 30,
2013
December 31, 2012
September 30,
2013
December 31, 2012
Credit derivatives
$
350

$
350

$
18

$
28

Currency forwards [1]
4,629

9,327

(55
)
(87
)
Currency options
8,234

9,710

(19
)
(49
)
Equity futures
1,876

1,206

—

—

Equity options
2,347

2,621

(200
)
(105
)
Equity swaps
3,840

2,683

(8
)
(12
)
Customized swaps
—

899

—

(11
)
Interest rate futures
406

634

—

—

Interest rate swaps and swaptions
34,999

21,018

71

131

Total
$
56,681

$
48,448

$
(193
)
$
(105
)
[1]
 As of September 30, 2013 and December 31, 2012 net notional amounts are $1.3 billion and $0.1 billion, respectively, which include $3.0 billion and $4.7 billion, respectively, related to long positions and $1.7 billion and $4.6 billion, respectively, related to short positions.