Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2013				As of December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
AFS securities:
Fixed maturity securities	$	82,711	$	82,711	$	82,036	$	82,036
VIEs' fixed maturity securities		708		708		708		708
Equity securities		148		148		157		157
Trading securities		2,528		2,528		2,554		2,554
Mortgage loans on real estate		7,057		7,675		7,029		7,704
Derivative investments		2,268		2,268		2,652		2,652
Other investments		1,073		1,073		1,098		1,098
Cash and invested cash		3,107		3,107		4,230		4,230
Separate account assets		101,366		101,366		95,373		95,373
Liabilities
Future contract benefits:
Indexed annuity contracts embedded derivatives		(853)		(853)		(732)		(732)
GLB reserves embedded derivatives		(199)		(199)		(909)		(909)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(861)		(861)		(867)		(867)
Account values of certain investment contracts		(28,759)		(32,359)		(28,540)		(32,688)
Short-term debt (1)		(706)		(723)		(200)		(204)
Long-term debt		(4,889)		(5,387)		(5,439)		(5,824)
Reinsurance related embedded derivatives		(199)		(199)		(215)		(215)
VIEs' liabilities - derivative instruments		(113)		(113)		(128)		(128)
Other liabilities – credit default swaps		(10)		(10)		(11)		(11)

⁽¹⁾ The difference between the carrying value and fair value of short-term debt as of March 31, 2013, and December 31, 2012, related to current maturities of long-term debt.

Fair Value Of Assets And Liabilities On A Recurring Basis

	As of March 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	64	$	67,385	$	1,825	$	69,274
U.S. government bonds		403		29		-		432
Foreign government bonds		-		550		76		626
RMBS		-		5,585		1		5,586
CMBS		-		929		27		956
CDOs		-		24		149		173
State and municipal bonds		-		4,398		32		4,430
Hybrid and redeemable preferred securities		48		1,084		102		1,234
VIEs' fixed maturity securities		109		599		-		708
Equity AFS securities		11		27		110		148
Trading securities		-		2,474		54		2,528
Derivative investments		-		433		1,835		2,268
Cash and invested cash		-		3,107		-		3,107
Separate account assets		1,646		99,720		-		101,366
Total assets	$	2,281	$	186,344	$	4,211	$	192,836
Liabilities
Future contract benefits:
Indexed annuity contracts embedded derivatives	$	-	$	-	$	(853)	$	(853)
GLB reserves embedded derivatives		-		-		(199)		(199)
Long-term debt		-		(1,203)		-		(1,203)
Reinsurance related embedded derivatives		-		(199)		-		(199)
VIEs' liabilities - derivative instruments		-		-		(113)		(113)
Other liabilities – credit default swaps		-		-		(10)		(10)
Total liabilities	$	-	$	(1,402)	$	(1,175)	$	(2,577)

	As of December 31, 2012
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	65	$	66,446	$	1,505	$	68,016
U.S. government bonds		411		30		1		442
Foreign government bonds		-		608		46		654
RMBS		-		6,168		3		6,171
CMBS		-		976		27		1,003
CDOs		-		26		154		180
State and municipal bonds		-		4,321		32		4,353
Hybrid and redeemable preferred securities		30		1,069		118		1,217
VIEs' fixed maturity securities		110		598		-		708
Equity AFS securities		44		26		87		157
Trading securities		2		2,496		56		2,554
Derivative investments		-		626		2,026		2,652
Cash and invested cash		-		4,230		-		4,230
Separate account assets		1,519		93,854		-		95,373
Total assets	$	2,181	$	181,474	$	4,055	$	187,710
Liabilities
Future contract benefits:
Indexed annuity contracts embedded derivatives	$	-	$	-	$	(732)	$	(732)
GLB reserves embedded derivatives		-		-		(909)		(909)
Long-term debt		-		(1,203)		-		(1,203)
Reinsurance related embedded derivatives		-		(215)		-		(215)
VIEs' liabilities - derivative instruments		-		-		(128)		(128)
Other liabilities – credit default swaps		-		-		(11)		(11)
Total liabilities	$	-	$	(1,418)	$	(1,780)	$	(3,198)

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended March 31, 2013
	Beginning Fair Value		Items Included in Net Income		Gains  (Losses) in OCI and Other (1)		Issuances, Sales, Maturities, Settlements, Calls, Net		Transfers In or Out of Level 3, Net (2)		Ending Fair Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,505	$	-	$	12	$	156	$	152	$	1,825
U.S. government bonds		1		-		-		(1)		-		-
Foreign government bonds		46		-		-		30		-		76
RMBS		3		-		-		(2)		-		1
CMBS		27		(1)		2		(1)		-		27
CDOs		154		(1)		2		(6)		-		149
State and municipal bonds		32		-		-		-		-		32
Hybrid and redeemable preferred securities		118		-		5		-		(21)		102
Equity AFS securities		87		-		2		21		-		110
Trading securities		56		1		(2)		(1)		-		54
Derivative investments		2,026		(258)		40		27		-		1,835
Future contract benefits: (4)
Indexed annuity contracts embedded derivatives		(732)		(130)		-		9		-		(853)
GLB reserves embedded derivatives		(909)		710		-		-		-		(199)
VIEs' liabilities - derivative instruments (5)		(128)		15		-		-		-		(113)
Other liabilities – credit default swaps (6)		(11)		1		-		-		-		(10)
Total, net	$	2,275	$	337	$	61	$	232	$	131	$	3,036

	For the Three Months Ended March 31, 2012
	Beginning Fair Value		Items Included in Net Income		Gains  (Losses) in OCI and Other (1)		Issuances, Sales, Maturities, Settlements, Calls, Net		Transfers In or Out of Level 3, Net (2)		Ending Fair Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,888	$	(14)	$	-	$	174	$	(116)	$	1,932
U.S. government bonds		1		-		-		-		-		1
Foreign government bonds		97		-		2		-		-		99
RMBS		158		(3)		3		(5)		(55)		98
CMBS		34		(3)		8		(7)		-		32
CDOs		102		-		4		(4)		-		102
Hybrid and redeemable preferred securities		100		-		5		-		11		116
Equity AFS securities		56		-		5		-		-		61
Trading securities		68		1		-		(1)		-		68
Derivative investments		2,470		(520)		(88)		175		-		2,037
Future contract benefits: (4)
Indexed annuity contracts embedded derivatives		(399)		(104)		-		23		-		(480)
GLB reserves embedded derivatives		(2,217)		1,153		-		-		-		(1,064)
VIEs' liabilities - derivative instruments (5)		(291)		70		-		-		-		(221)
Other liabilities – credit default swaps (6)		(16)		6		-		-		-		(10)
Total, net	$	2,051	$	586	$	(61)	$	355	$	(160)	$	2,771

⁽¹⁾ The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾ Transfers in or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period.  For AFS and trading securities, the difference between beginning-of-period amortized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in prior periods.

⁽³⁾ Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).  Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾ Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁵⁾ The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁶⁾ Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).

Schedule Of Investment Holdings Movements

	For the Three Months Ended March 31, 2013
	Issuances		Sales		Maturities		Settlements		Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	183	$	(2)	$	(4)	$	(15)	$	(6)	$	156
U.S. government bonds		-		-		-		(1)		-		(1)
Foreign Government bonds		30		-		-		-		-		30
RMBS		-		-		-		(2)		-		(2)
CMBS		-		-		-		(1)		-		(1)
CDOs		-		-		-		(6)		-		(6)
Equity AFS securities		25		(4)		-		-		-		21
Trading securities		-		-		-		(1)		-		(1)
Derivative investments		32		53		(58)		-		-		27
Future contract benefits:
Indexed annuity contracts embedded derivatives		(19)		-		-		28		-		9
Total, net	$	251	$	47	$	(62)	$	2	$	(6)	$	232

	For the Three Months Ended March 31, 2012
	Issuances		Sales		Maturities		Settlements		Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	231	$	(26)	$	-	$	(29)	$	(2)	$	174
RMBS		-		-		-		(5)		-		(5)
CMBS		-		-		-		(7)		-		(7)
CDOs		-		-		-		(4)		-		(4)
Trading securities		-		-		-		(1)		-		(1)
Derivative investments		209		15		(49)		-		-		175
Future contract benefits:
Indexed annuity contracts embedded derivatives		(9)		-		-		32		-		23
Total, net	$	431	$	(11)	$	(49)	$	(14)	$	(2)	$	355

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held

	For the Three Months Ended March 31,
	2013		2012
Investments: (1)
Derivative investments	$	(197)	$	(520)
Future contract benefits: (1)
Indexed annuity contracts embedded derivatives		(23)		21
GLB reserves embedded derivatives		761		1,183
VIEs' liabilities - derivative instruments (1)		15		70
Other liabilities – credit default swaps (2)		1		6
Total, net	$	557	$	760

⁽¹⁾ Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). 

⁽²⁾ Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). 

Components Of The Transfers In And Out Of Level 3

	For the Three Months Ended March 31, 2013						For the Three Months Ended March 31, 2012
	Transfers In to Level 3		Transfers Out of Level 3		Total		Transfers In to Level 3		Transfers Out of Level 3		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	158	$	(6)	$	152	$	150	$	(266)	$	(116)
RMBS		-		-		-		-		(55)		(55)
Hybrid and redeemable preferred securities		5		(26)		(21)		20		(9)		11
Total, net	$	163	$	(32)	$	131	$	170	$	(330)	$	(160)

Fair Value Inputs Quantitative Information

	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range
Assets
Investments:
Fixed maturity AFS and trading securities
Corporate bonds	$	1,061	Discounted cash flow	Liquidity/duration adjustment (1)	0.5	%	-	13.9	%
Foreign government bonds		76	Discounted cash flow	Liquidity/duration adjustment (1)	2.3	%	-	4.2	%
Hybrid and redeemable preferred stock		21	Discounted cash flow	Liquidity/duration adjustment (1)	2.1	%	-	2.5	%
Equity AFS and trading securities		14	Discounted cash flow	Liquidity/duration adjustment (1)	4.3	%	-	4.5	%
Liabilities
Future contract benefits:
Indexed annuity contracts embedded derivatives		(853)	Discounted cash flow	Lapse rate (2)	1.0	%	-	15.0	%
				Mortality rate (3)				(7)
GLB reserves embedded derivatives		(199)	Monte Carlo simulation	Long-term lapse rate (2)	1.00	%	-	27.0	%
				Utilization of guaranteed withdrawal (4)	90.00	%	-	100.0	%
				NPR (5)	0.00	%	-	0.53	%
				Mortality rate (3)				(7)
				Volatility (6)	1.00	%	-	35.0	%

⁽¹⁾ The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽²⁾ The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits.  The range for indexed annuity contracts represents the lapse rates during the surrender charge period. 

⁽³⁾ The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁴⁾ The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁵⁾ The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract.

⁽⁶⁾ The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed income assets.  Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. 

⁽⁷⁾ Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee on Life Insurance Research that was adopted by the National Association of Insurance Commissioners in 1996 for our mortality input.