Income Tax Level 3 (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows:



	For the years ended December 31,
	2016			2015			2014
Tax provision at the U.S. federal statutory rate	$	125		$	186		$	301
Dividends received deduction ("DRD")	(76		)	(152		)	(109		)
Foreign related investments	(7		)	(3		)	(8		)
IRS audit adjustments	31			—			—
Other	1			(1		)	—
Provision for income taxes	$	74		$	30		$	184

The separate account DRD is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in the mutual funds, amounts of distributions from these mutual funds, amounts of short-term capital gains at the mutual fund level and the Company’s taxable income before the DRD. The Company evaluates its DRD computations on a quarterly basis.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

ncome taxes consists of the following:



	For the years ended December 31,
	2016		2015			2014
Income Tax Expense (Benefit)
Current - U.S. Federal	$	2	$	36		$	(339	)
Deferred - U.S. Federal	72		(6		)	523
Total income tax expense	$	74	$	30		$	184

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax assets (liabilities) include the following:



	As of December 31,
Deferred Tax Assets	2016			2015
Tax basis deferred policy acquisition costs	$	101		$	119
Unearned premium reserve and other underwriting related reserves	6			4
Financial statement deferred policy acquisition costs and reserves	32			—
Investment-related items	135			524
Insurance product derivatives	79			90
Net operating loss carryover	1,155			1,166
Alternative minimum tax credit	232			232
Foreign tax credit carryover	40			122
Other	191			16
Total Deferred Tax Assets	1,971			2,273
Net Deferred Tax Assets	1,971			2,273
Deferred Tax Liabilities
Financial statement deferred policy acquisition costs and reserves	—			(220		)
Net unrealized gain on investments	(480		)	(432		)
Employee benefits	(54		)	(40		)
Total Deferred Tax Liabilities	(534		)	(692		)
Net Deferred Tax Assets	$	1,437		$	1,581