Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Outstanding derivative instruments with off-balance-sheet risks

							As of June 30, 2011
							Number			Asset Carrying				(Liability) Carrying
							of	Notional		or Fair Value				or Fair Value
						Instruments		Amounts		Gain		Loss		Gain		Loss
Derivative Instruments
	Designated and Qualifying
	as Hedging Instruments
Cash flow hedges:
	Interest rate swap agreements⁽¹⁾						150	$	901	$	24	$	(85)	$	-	$	-
	Forward-starting interest rate swaps ⁽¹⁾						1		39		-		(1)		-		-
	Foreign currency swaps⁽¹⁾						13		340		41		(20)		-		-
	Reverse treasury locks ⁽¹⁾						10		1,300		-		(33)		-		-
		Total cash flow hedges					174		2,580		65		(139)		-		-
Fair value hedges:
	Interest rate swap agreements⁽²⁾						11		1,675		120		(37)		-		(83)
		Total fair value hedges					11		1,675		120		(37)		-		(83)
			Total derivative instruments
				designated and qualifying as
				hedging instruments			185		4,255		185		(176)		-		(83)
Derivative Instruments Not
	Designated and Not Qualifying
	as Hedging Instruments
Interest rate futures⁽¹⁾							9,796		1,617		-		-		-		-
Equity futures⁽¹⁾							9,638		726		-		-		-		-
Interest rate swap agreements⁽¹⁾							94		8,880		52		(494)		-		-
Credit default swaps⁽³⁾							8		125		-		-		-		(7)
Total return swaps⁽¹⁾							12		915		1		(7)		-		-
Put options⁽¹⁾							169		6,352		1,219		-		-		-
Call options (based on S&P 500)⁽¹⁾							539		4,552		293		-		-		-
Variance swaps⁽¹⁾							45		28		24		(38)		-		-
Currency futures⁽¹⁾							29		4		-		-		-		-
Consumer price index swaps⁽¹⁾							98		51		1		(1)		-		-
Interest rate cap corridors⁽¹⁾							79		8,375		38		-		-		-
Embedded derivatives:
	Deferred compensation plans⁽³⁾						6		-		-		-		-		(360)
	Indexed annuity contracts⁽⁴⁾						141,509		-		-		-		-		(506)
	GLB reserves⁽⁴⁾						322,398		-		-		-		595		(873)
	Reinsurance related ⁽⁵⁾						-		-		-		-		-		(119)
			Total derivative instruments not
				designated and not qualifying as
				hedging instruments			484,420		31,625		1,628		(540)		595		(1,865)
					Total derivative instruments		484,605	$	35,880	$	1,813	$	(716)	$	595	$	(1,948)

							As of December 31, 2010
							Number			Asset Carrying				(Liability) Carrying
							of	Notional		or Fair Value				or Fair Value
						Instruments		Amounts		Gain		Loss		Gain		Loss
Derivative Instruments
	Designated and Qualifying
	as Hedging Instruments
Cash flow hedges:
	Interest rate swap agreements⁽¹⁾						151	$	926	$	24	$	(71)	$	-	$	-
	Forward-starting interest rate swaps ⁽¹⁾						2		150		1		-		-		-
	Foreign currency swaps⁽¹⁾						13		340		43		(13)		-		-
	Reverse treasury locks ⁽¹⁾						5		1,000		11		(5)		-		-
		Total cash flow hedges					171		2,416		79		(89)		-		-
Fair value hedges:
	Interest rate swap agreements⁽²⁾						11		1,675		106		(51)		-		(55)
		Total fair value hedges					11		1,675		106		(51)		-		(55)
			Total derivative instruments
				designated and qualifying as
				hedging instruments			182		4,091		185		(140)		-		(55)
Derivative Instruments Not
	Designated and Not Qualifying
	as Hedging Instruments
Interest rate cap agreements⁽¹⁾							3		150		-		-		-		-
Interest rate futures⁽¹⁾							15,881		2,251		-		-		-		-
Equity futures⁽¹⁾							13,375		907		-		-		-		-
Interest rate swap agreements⁽¹⁾							81		7,955		34		(511)		-		-
Credit default swaps⁽³⁾							9		145		-		-		-		(16)
Total return swaps⁽¹⁾							9		900		-		(21)		-		-
Put options⁽¹⁾							145		5,602		1,151		-		-		-
Call options (based on S&P 500)⁽¹⁾							544		4,083		301		-		-		-
Variance swaps⁽¹⁾							50		30		46		(34)		-		-
Currency futures⁽¹⁾							1,589		219		-		-		-		-
Consumer price index swaps⁽¹⁾							100		55		-		(2)		-		-
Interest rate cap corridors⁽¹⁾							73		8,050		52		-		-		-
Embedded derivatives:
	Deferred compensation plans⁽³⁾						6		-		-		-		-		(363)
	Indexed annuity contracts⁽⁴⁾						132,260		-		-		-		-		(497)
	GLB reserves⁽⁴⁾						305,962		-		-		-		518		(926)
	Reinsurance related ⁽⁵⁾						-		-		-		-		-		(102)
	AFS securities⁽¹⁾						1		-		15		-		-		-
			Total derivative instruments not
				designated and not qualifying as
				hedging instruments			470,088		30,347		1,599		(568)		518		(1,904)
					Total derivative instruments		470,270	$	34,438	$	1,784	$	(708)	$	518	$	(1,959)

Maturity of the notional amounts of derivative financial instruments

							Remaining Life as of June 30, 2011
							Less Than		1 – 5		6 – 10		11 – 30		Over 30
							1 Year		Years		Years		Years		Years		Total
Derivative Instruments
	Designated and Qualifying
	as Hedging Instruments
Cash flow hedges:
	Interest rate swap agreements						$	24	$	59	$	264	$	547	$	7	$	901
	Forward-starting interest rate swaps							-		-		39		-		-		39
	Foreign currency swaps							-		124		135		81		-		340
	Reverse treasury locks							-		1,030		270		-		-		1,300
		Total cash flow hedges						24		1,213		708		628		7		2,580
Fair value hedges:
	Interest rate swap agreements							-		800		-		875		-		1,675
		Total fair value hedges						-		800		-		875		-		1,675
			Total derivative instruments
				designated and qualifying as
				hedging instruments				24		2,013		708		1,503		7		4,255
Derivative Instruments Not
	Designated and Not Qualifying
	as Hedging Instruments
Interest rate futures								1,617		-		-		-		-		1,617
Equity futures								726		-		-		-		-		726
Interest rate swap agreements								400		1,561		2,114		4,805		-		8,880
Credit default swaps								-		40		85		-		-		125
Total return swaps								615		300		-		-		-		915
Put options								-		1,664		4,688		-		-		6,352
Call options (based on S&P 500)								3,658		894		-		-		-		4,552
Variance swaps								-		3		25		-		-		28
Currency futures								4		-		-		-		-		4
Consumer price index swaps								4		15		13		17		2		51
Interest rate cap corridors								-		5,100		3,275		-		-		8,375
			Total derivative instruments
				not designated and not
				qualifying as hedging
				instruments				7,024		9,577		10,200		4,822		2		31,625
					Total derivative instruments
						with notional amounts	$	7,048	$	11,590	$	10,908	$	6,325	$	9	$	35,880

Change in our unrealized gain on derivative instruments in accumulated OCI

						For the Six
						Months Ended
						June 30,
						2011		2010
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year						$	(15)	$	11
Other comprehensive income (loss):
	Unrealized holding gains (losses) arising during the period:
		Cash flow hedges:
			Interest rate swap agreements				(20)		(41)
			Forward-starting interest rate swaps				(2)		-
			Foreign currency swaps				5		3
			Treasury locks				(19)		(29)
		Fair value hedges:
			Interest rate swap agreements				2		2
	Change in foreign currency exchange rate adjustment						(14)		32
	Change in DAC, VOBA, DSI and DFEL						1		3
	Income tax benefit (expense)						17		11
	Less:
		Reclassification adjustment for gains (losses) included in net income (loss):
			Cash flow hedges:
				Interest rate swap agreements⁽¹⁾			(5)		9
				Foreign currency swaps⁽¹⁾			1		1
				Treasury locks⁽²⁾			(7)		(2)
			Fair value hedges:
				Interest rate swap agreements⁽²⁾			2		2
		Associated amortization of DAC, VOBA, DSI and DFEL					1		(1)
		Income tax benefit (expense)					3		(3)
					Balance as of end-of-period	$	(40)	$	(14)

Gains (losses) on derivative instruments recorded within income (loss) from continuing operations

						For the Three				For the Six
						Months Ended				Months Ended
						June 30,				June 30,
						2011		2010		2011		2010
Derivative Instruments Designated and
	Qualifying as Hedging Instruments
Cash flow hedges:
	Interest rate swap agreements⁽¹⁾					$	(4)	$	6	$	(5)	$	8
	Foreign currency swaps⁽¹⁾						(1)		-		1		1
		Total cash flow hedges					(5)		6		(4)		9
Fair value hedges:
	Interest rate swap agreements⁽²⁾						13		9		25		17
		Total fair value hedges					13		9		25		17
			Total derivative instruments designated
				and qualifying as hedging instruments			8		15		21		26
Derivative Instruments Not Designated and
	Not Qualifying as Hedging Instruments
Interest rate futures⁽³⁾							13		179		(11)		214
Equity futures⁽³⁾							(10)		105		(54)		12
Interest rate swap agreements⁽³⁾							75		322		37		303
Foreign currency forwards⁽³⁾							-		-		-		43
Credit default swaps - fees⁽¹⁾							-		-		-		1
Credit default swaps - marked-to-market⁽³⁾							(1)		(17)		2		(7)
Total return swaps⁽⁴⁾							(15)		47		(34)		51
Put options⁽³⁾							69		493		(102)		383
Call options (based on S&P 500)⁽³⁾							8		(79)		61		(43)
Variance swaps⁽³⁾							(4)		140		(41)		94
Currency futures⁽³⁾							(1)		8		(5)		(7)
Consumer price index swaps⁽³⁾							1		1		1		-
Interest rate cap corridors⁽¹⁾							(10)		(11)		(16)		(11)
Embedded derivatives:
	Deferred compensation plans⁽⁴⁾						(5)		9		(13)		1
	Indexed annuity contracts⁽³⁾						6		56		54		15
	GLB reserves⁽³⁾						(160)		(1,174)		130		(993)
	Reinsurance related⁽³⁾						(28)		(46)		(18)		(62)
	AFS securities⁽¹⁾						-		(1)		1		-
			Total derivative instruments not designated
				and not qualifying as hedging instruments			(62)		32		(8)		(6)
					Total derivative instruments	$	(54)	$	47	$	13	$	20

Gains (losses) on derivative instruments designated as cash flow hedges

		For the Three				For the Six
		Months Ended				Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Gain (loss) recognized as a component of OCI with the offset
	to net investment income	$	(4)	$	7	$	(4)	$	10

		For the Three				For the Six
		Months Ended				Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Ineffective portion recognized in realized gain (loss)		$	-	$	-	$	-	$	1
Gain (loss) recognized as a component of OCI with the offset
	to interest expense		1		1		2		2

Open credit default swap liabilities

As of June 30, 2011

Credit

Reason

Nature

Rating of

Number

Maximum

for

Underlying

Fair

Potential

Maturity

Entering

Recourse

Obligation⁽¹⁾

Instruments

Value⁽²⁾

Payout

12/20/2012⁽³⁾

⁽⁵⁾

⁽⁶⁾

BBB+

12/20/2016⁽⁴⁾

⁽⁵⁾

⁽⁶⁾

(4)

03/20/2017⁽⁴⁾

⁽⁵⁾

⁽⁶⁾

BBB

(3)

(7)

125

As of December 31, 2010

Credit

Reason

Nature

Rating of

Number

Maximum

for

Underlying

Fair

Potential

Maturity

Entering

Recourse

Obligation⁽¹⁾

Instruments

Value⁽²⁾

Payout

12/20/2012⁽³⁾

⁽⁵⁾

⁽⁶⁾

BBB+

12/20/2016⁽⁴⁾

⁽⁵⁾

⁽⁶⁾

BBB

(12)

03/20/2017⁽⁴⁾

⁽⁵⁾

⁽⁶⁾

BBB-

(4)

(16)

145

Collateral support agreements

				As of			As of
			June 30,			December 31,
				2011			2010
Maximum potential payout				$	125		$	145
Less:
	Counterparty thresholds				-			10
		Maximum collateral potentially required to post		$	125		$	135

	As of June 30, 2011				As of December 31, 2010
	Collateral		Collateral		Collateral		Collateral
	Posted by		Posted by		Posted by		Posted by
S&P	Counter-		LNC		Counter-		LNC
Credit	Party		(Held by		Party		(Held by
Rating of	(Held by		Counter-		(Held by		Counter-
Counterparty	LNC)		Party)		LNC)		Party)

AAA	$	11	$	-	$	1	$	-
AA		131		-		99		-
AA-		130		-		65		-
A+		475		(58)		548		(76)
A		506		(265)		436		(223)
	$	1,253	$	(323)	$	1,149	$	(299)

- Definition

This element may be used to tag a single block of text that encapsulates the entire credit derivatives disclosure including data and tables. This disclosures provides pertinent information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, a credit-linked note).

+ References+ Details