DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk

The counterparties to these derivatives are financial institutions with the following credit ratings:

	June 30, 2016										December 31, 2015
(In millions)	Notional Amount of Derivatives			Asset Derivatives Fair Value			Liability Derivatives Fair Value				Notional Amount of Derivatives			Asset Derivatives Fair Value			Liability Derivatives Fair Value
Counterparties' credit rating:
AA		$	2,875		$	173		$	(126	)		$	2,187		$	166		$	(35	)
A		19,131			1,691			(352		)		19,940			510			(336		)
BBB		1,100			99			(64		)		0			0			0
Total		$	23,106		$	1,963		$	(542	)		$	22,127		$	676		$	(371	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The tables below summarize the balance sheet classification of our derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated. Notional amounts are not reflective of credit risk.

		June 30, 2016
(In millions)	Net Derivatives							Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value				Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps		$	75		$	(1	)		$	1		$	(2	)
Total cash flow hedges		75			(1		)		1			(2		)
Fair value hedges:
Foreign currency forwards		12,917			1,442				1,442			0
Foreign currency options		1,685			6				7			(1		)
Total fair value hedges		14,602			1,448				1,449			(1		)
Net investment hedge:
Foreign currency forwards		846			(93		)		0			(93		)
Foreign currency options		710			(48		)		4			(52		)
Total net investment hedge		1,556			(141		)		4			(145		)
Non-qualifying strategies:
Foreign currency swaps		6,669			97				491			(394		)
Foreign currency forwards		107			17				17			0
Credit default swaps		97			1				1			0
Total non-qualifying strategies		6,873			115				509			(394		)
Total derivatives		$	23,106		$	1,421			$	1,963		$	(542	)
Balance Sheet Location
Other assets		$	18,388		$	1,963			$	1,963		$	0
Other liabilities		4,718			(542		)		0			(542		)
Total derivatives		$	23,106		$	1,421			$	1,963		$	(542	)

		December 31, 2015
(In millions)	Net Derivatives							Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value				Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps		$	75		$	(15	)		$	0		$	(15	)
Total cash flow hedges		75			(15		)		0			(15		)
Fair value hedges:
Foreign currency forwards		13,080			45				88			(43		)
Foreign currency options		1,250			0				0			0
Total fair value hedges		14,330			45				88			(43		)
Net investment hedge:
Foreign currency forwards		763			13				19			(6		)
Foreign currency options		266			(3		)		5			(8		)
Total net investment hedge		1,029			10				24			(14		)
Non-qualifying strategies:
Foreign currency swaps		6,599			264				563			(299		)
Foreign currency forwards		11			0				0			0
Credit default swaps		83			1				1			0
Total non-qualifying strategies		6,693			265				564			(299		)
Total derivatives		$	22,127		$	305			$	676		$	(371	)
Balance Sheet Location
Other assets		$	11,413		$	676			$	676		$	0
Other liabilities		10,714			(371		)		0			(371		)
Total derivatives		$	22,127		$	305			$	676		$	(371	)

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges.

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives									Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)			Gains (Losses) Excluded from Effectiveness Testing			Gains (Losses) Included in Effectiveness Testing			Gains (Losses)			Ineffectiveness Recognized for Fair Value Hedge
Three Months Ended June 30, 2016:
Foreign currency forwards	Fixed-maturity securities	$	1,156		$	(48	)	$	1,204		$	(1,236	)	$	(32	)
Foreign currency options	Fixed-maturity securities	7			7			0			0			0
Six Months Ended June 30, 2016:
Foreign currency forwards	Fixed-maturity securities	$	2,013		$	(92	)	$	2,105		$	(2,118	)	$	(13	)
Foreign currency options	Fixed-maturity securities	6			6			0			0			0
Three Months Ended June 30, 2015:
Foreign currency forwards	Fixed-maturity securities	$	(267	)	$	(17	)	$	(250	)	$	244		$	(6	)
Foreign currency options	Fixed-maturity securities	(5		)	1			(6		)	6			0
Interest rate swaptions	Fixed-maturity securities	(4		)	0			(4		)	5			1
Six Months Ended June 30, 2015:
Foreign currency forwards	Fixed-maturity securities	$	(230	)	$	(32	)	$	(198	)	$	205		$	7
Foreign currency options	Fixed-maturity securities	(3		)	4			(7		)	7			0
Interest rate swaptions	Fixed-maturity securities	(95		)	19			(114		)	99			(15		)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Impact of Derivatives and Hedging Instruments

The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.

	Three Months Ended June 30,															Six Months Ended June 30,
	2016								2015							2016								2015
(In millions)	Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)(1)				Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)(1)			Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)(1)				Realized Investment Gains (Losses)				Other Comprehensive Income (Loss)(1)
Qualifying hedges:
Cash flow     hedges:
Foreign           currency           swaps		$	1			$	8			$	0			$	2		$	1			$	11			$	0			$	(2	)
Total cash flow     hedges		1				8				0				2			1				11				0				(2		)
Fair value     hedges:
Foreign           currency           forwards(2)		(80		)		0				(23		)		0			(105		)		0				(25		)		0
Foreign           currency           options(2)		7				0				1				0			6				0				4				0
Interest rate           swaptions(2)		0				0				1				0			0				0				4				0
Total fair value     hedges		(73		)		0				(21		)		0			(99		)		0				(17		)		0
Net investment     hedge:
Non-           derivative           hedging           instruments		0				(22		)		0				6			0				(37		)		0				5
Foreign           currency           forwards		0				(83		)		0				32			0				(133		)		0				34
Foreign           currency           options		0				(15		)		0				0			0				(31		)		0				0
Total net     investment     hedge		0				(120		)		0				38			0				(201		)		0				39
Non-qualifying     strategies:
Foreign           currency           swaps		(104		)		0				55				0			(94		)		0				(2		)		0
Foreign           currency           forwards		10				0				(1		)		0			21				0				(1		)		0
Credit           default           swaps		(1		)		0				0				0			0				0				1				0
Interest rate           swaps		0				0				2				0			0				0				5				0
Total non-     qualifying     strategies		(95		)		0				56				0			(73		)		0				3				0
Total		$	(167	)		$	(112	)		$	35			$	40		$	(171	)		$	(190	)		$	(14	)		$	37

⁽¹⁾ Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

⁽²⁾ Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

Offsetting Assets

The tables below summarize our derivatives and securities lending transactions, and as reflected in the tables, in accordance with U.S. GAAP, our policy is to not offset these financial instruments in the Consolidated Balance Sheets.

Offsetting of Financial Assets and Derivative Assets

June 30, 2016
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented in Balance Sheet			Carrying Value of Financial Instruments			Collateral Received					Net Amount
Derivative assets:
Foreign currency swaps		$	492		$	0		$	492		$	0		$	(187	)			$	305
Foreign currency forwards		1,459			0			1,459			0			(1,554		)			(95		)
Foreign currency options		11			0			11			0			(6		)			5
Credit default swaps		1			0			1			0			0					1
Total derivative assets, subject to a master netting arrangement or offsetting arrangement		1,963			0			1,963			0			(1,747		)	(1)		216
Securities lending and similar arrangements		801			0			801			0			(801		)			0
Total		$	2,764		$	0		$	2,764		$	0		$	(2,548	)			$	216

⁽¹⁾ Consists of $1,509 of pledged securities and $238 of cash.

December 31, 2015
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented in Balance Sheet			Carrying Value of Financial Instruments			Collateral Received					Net Amount
Derivative assets:
Foreign currency swaps		$	563		$	0		$	563		$	0		$	(313	)			$	250
Foreign currency forwards		107			0			107			0			(96		)			11
Foreign currency options		5			0			5			0			(3		)			2
Credit default swaps		1			0			1			0			0					1
Total derivative assets, subject to a master netting arrangement or offsetting arrangement		676			0			676			0			(412		)	(1)		264
Securities lending and similar arrangements		921			0			921			0			(921		)			0
Total		$	1,597		$	0		$	1,597		$	0		$	(1,333	)			$	264

⁽¹⁾ Consists of $86 of pledged securities and $326 of cash.

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities

June 30, 2016
												Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities				Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented in Balance Sheet				Carrying Value of Financial Instruments			Collateral Pledged				Net Amount
Derivative liabilities:
Foreign currency swaps		$	(396	)		$	0		$	(396	)		$	0		$	111			$	(285	)
Foreign currency forwards		(93		)		0			(93		)		0			95				2
Foreign currency options		(53		)		0			(53		)		0			53				0
Total derivative liabilities, subject to a master netting arrangement or offsetting arrangement		(542		)		0			(542		)		0			259		(1)		(283		)
Securities lending and similar arrangements		(826		)		0			(826		)		801			0				(25		)
Total		$	(1,368	)		$	0		$	(1,368	)		$	801		$	259			$	(308	)

⁽¹⁾ Consists entirely of cash.

December 31, 2015
												Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities				Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented in Balance Sheet				Carrying Value of Financial Instruments			Collateral Pledged				Net Amount
Derivative liabilities:
Foreign currency swaps		$	(314	)		$	0		$	(314	)		$	0		$	1			$	(313	)
Foreign currency forwards		(49		)		0			(49		)		0			18				(31		)
Foreign currency options		(8		)		0			(8		)		0			1				(7		)
Total derivative liabilities, subject to a master netting arrangement or offsetting arrangement		(371		)		0			(371		)		0			20		(1)		(351		)
Securities lending and similar arrangements		(941		)		0			(941		)		921			0				(20		)
Total		$	(1,312	)		$	0		$	(1,312	)		$	921		$	20			$	(371	)

⁽¹⁾ Consists of $17 of pledged securities and $3 of cash.