XML 180 R41.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments [Abstract]  
Outstanding Derivative Instruments With Off-Balance-Sheet Risks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2012

 

Notional

 

Fair Value

 

Notional

 

Fair Value

 

Amounts

 

Asset

 

Liability

 

Amounts

 

Asset

 

Liability

Qualifying Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

$
4,339 

 

$
562 

 

$
148 

 

$
3,214 

 

$
462 

 

$
224 

Foreign currency contracts (1)

 
615 

 

 
32 

 

 
46 

 

 
420 

 

 
39 

 

 
26 

Total cash flow hedges

 
4,954 

 

 
594 

 

 
194 

 

 
3,634 

 

 
501 

 

 
250 

Fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

 
875 

 

 
92 

 

 
33 

 

 
875 

 

 
269 

 

 

 -

Non-Qualifying Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

 
45,620 

 

 
215 

 

 
744 

 

 
36,539 

 

 
1,042 

 

 
475 

Foreign currency contracts (1)

 
102 

 

 

 -

 

 

 -

 

 
48 

 

 

 -

 

 

 -

Equity market contracts (1)

 
19,917 

 

 
957 

 

 
193 

 

 
19,857 

 

 
1,734 

 

 
170 

Equity collar (1)

 

 -

 

 

 -

 

 

 -

 

 
9 

 

 
1 

 

 

 -

Credit contracts (2)

 
126 

 

 

 -

 

 
2 

 

 
148 

 

 

 -

 

 
11 

Embedded derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indexed annuity and universal life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

contracts (3)

 

 -

 

 

 -

 

 
1,048 

 

 

 -

 

 

 -

 

 
732 

GLB (3) 

 

 -

 

 
1,244 

 

 

 -

 

 

 -

 

 

 -

 

 
909 

Reinsurance related (4)

 

 -

 

 

 -

 

 
108 

 

 

 -

 

 

 -

 

 
215 

Total derivative instruments

$
71,594 

 

$
3,102 

 

$
2,322 

 

$
61,110 

 

$
3,547 

 

$
2,762 

 

(1)

Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

(2)

Reported in other liabilities on our Consolidated Balance Sheets.

(3)

Reported in future contract benefits on our Consolidated Balance Sheets.

(4)

Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets.
Maturity Of The Notional Amounts Of Derivative Financial Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining Life as of December 31, 2013

 

Less Than

 

1 – 5

 

6 – 10

 

11 – 30

 

Over 30

 

 

 

1 Year

 

Years

 

Years

 

Years

 

Years

 

Total

Interest rate contracts (1)

$
5,343 

 

$
23,374 

 

$
10,697 

 

$
10,207 

 

$
1,213 

 

$
50,834 

Foreign currency contracts (2)

 
175 

 

 
110 

 

 
305 

 

 
127 

 

 

 -

 

 
717 

Equity market contracts

 
10,977 

 

 
3,573 

 

 
5,344 

 

 
21 

 

 
2 

 

 
19,917 

Credit contracts

 

 -

 

 
126 

 

 

 -

 

 

 -

 

 

 -

 

 
126 

Total derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with notional amounts

$
16,495 

 

$
27,183 

 

$
16,346 

 

$
10,355 

 

$
1,215 

 

$
71,594 

 

(1)

As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067.

(2)

As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2028.
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

2013

 

2012

 

2011

Unrealized Gain (Loss) on Derivative Instruments

 

 

 

 

 

 

 

 

Balance as of beginning-of-year

$
163 

 

$
119 

 

$
(11)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the year:

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

Interest rate contracts

 
163 

 

 
73 

 

 
177 

Foreign currency contracts

 
(24)

 

 
(22)

 

 
3 

Fair value hedges:

 

 

 

 

 

 

 

 

Interest rate contracts

 
4 

 

 
4 

 

 
4 

Change in foreign currency exchange rate adjustment

 
(19)

 

 
(12)

 

 
7 

Change in DAC, VOBA, DSI and DFEL

 
5 

 

 
15 

 

 

 -

Income tax benefit (expense)

 
(45)

 

 
(21)

 

 
(67)

Less:

 

 

 

 

 

 

 

 

Reclassification adjustment for gains (losses) included in net income (loss):

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

Interest rate contracts (1)

 
(21)

 

 
(21)

 

 
(15)

Interest rate contracts (2)

 
(1)

 

 
(1)

 

 
(1)

Foreign currency contracts (1)

 
3 

 

 
3 

 

 
2 

Fair value hedges:

 

 

 

 

 

 

 

 

Interest rate contracts (2)

 
4 

 

 
4 

 

 
4 

Associated amortization of DAC, VOBA, DSI and DFEL

 
1 

 

 
4 

 

 
1 

Income tax benefit (expense)

 
5 

 

 
4 

 

 
3 

Balance as of end-of-year

$
256 

 

$
163 

 

$
119 

 

(1)

The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss).

(2)

The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss).
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

2013

 

2012

 

2011

 

Qualifying Hedges

 

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

$
(21)

 

$
(21)

 

$
(15)

 

Foreign currency contracts (1)

 
3 

 

 
3 

 

 
2 

 

Total cash flow hedges

 
(18)

 

 
(18)

 

 
(13)

 

Fair value hedges:

 

 

 

 

 

 

 

 

 

Interest rate contracts (2)

 
36 

 

 
36 

 

 
50 

 

Non-Qualifying Hedges

 

 

 

 

 

 

 

 

 

Interest rate contracts (3)

 
(989)

 

 
35 

 

 
1,100 

 

Foreign currency contracts (3)

 
(4)

 

 
(8)

 

 
(12)

 

Equity market contracts (3)

 
(1,306)

 

 
(1,377)

 

 
316 

 

Equity market contracts (4)

 
38 

 

 
18 

 

 
21 

 

Credit contracts (3)

 
9 

 

 
2 

 

 
(7)

 

Embedded derivatives:

 

 

 

 

 

 

 

 

 

Indexed annuity and universal life contracts (3)

 
(356)

 

 
(136)

 

 
5 

 

GLB reserves (3)

 
2,153 

 

 
1,308 

 

 
(1,809)

 

Reinsurance related (3)

 
107 

 

 
(47)

 

 
(66)

 

Total derivative instruments

$
(330)

 

$
(187)

 

$
(415)

 

 

(1)

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

(2)

Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss).

(3)

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

(4)

Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss).
Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

2013

 

2012

 

2011

 

Gain (loss) recognized as a component of OCI with

 

 

 

 

 

 

 

 

 

the offset to net investment income

$
(19)

 

$
(19)

 

$
(13)

 

 

Gains (Losses) On Derivative Instruments Designated As Fair Value Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

2013

 

2012

 

2011

 

Gain (loss) recognized as a component of OCI with

 

 

 

 

 

 

 

 

 

the offset to interest expense

$
4 

 

$
4 

 

$
4 

 

 

Open Credit Default Swap Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

 

 

 

 

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

Reason

 

Nature

 

Rating of

 

Number

 

 

 

 

Maximum

 

 

 

for

 

of

Underlying

of

 

Fair

 

Potential

 

Maturity

 

Entering

 

Recourse

Obligation (1)

Instruments

 

Value (2)

 

Payout

 

12/20/2016 (3)

 

(4)

 

(5)

 

BBB-

 
3 

 

$
(1)

 

$
68 

 

3/20/2017 (3)

 

(4)

 

(5)

 

BBB-

 
3 

 

 
(1)

 

 
58 

 

 

 

 

 

 

 

 

 
6 

 

$
(2)

 

$
126 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

 

 

 

 

 

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

Reason

 

Nature

 

Rating of

 

Number

 

 

 

 

Maximum

 

 

 

for

 

of

Underlying

of

 

Fair

 

Potential

 

Maturity

 

Entering

 

Recourse

Obligation (1)

Instruments

 

Value (2)

 

Payout

 

12/20/2016 (3)

 

(4)

 

(5)

 

BBB-

 
3 

 

$
(4)

 

$
68 

 

3/20/2017 (3)

 

(4)

 

(5)

 

BBB-

 
4 

 

 
(7)

 

 
80 

 

 

 

 

 

 

 

 

 
7 

 

$
(11)

 

$
148 

 

 

(1)

Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

(2)

Broker quotes are used to determine the market value of our credit default swaps.

(3)

These credit default swaps were sold to a counterparty of the consolidated VIEs discussed in Note 4. 

(4)

Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment.

(5)

Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

Collateral Support Agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

2013

 

 

2012

 

Maximum potential payout

$
126 

 

 

$
148 

 

Less:  Counterparty thresholds

 

 -

 

 

 

 -

 

Maximum collateral potentially required to post

$
126 

 

 

$
148 

 

 

Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2012

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AA

 

$

 -

 

$

 -

 

$
41 

 

$

 -

 

AA-

 

 
34 

 

 
(10)

 

 
58 

 

 

 -

 

A+

 

 
19 

 

 

 -

 

 
605 

 

 

 -

 

A

 

 
339 

 

 
(183)

 

 
770 

 

 
(68)

 

A-

 

 
468 

 

 
(123)

 

 
1,214 

 

 

 -

 

BBB+

 

 
79 

 

 

 -

 

 

 -

 

 

 -

 

BBB

 

 

 -

 

 

 -

 

 
4 

 

 

 -

 

 

 

$
939 

 

$
(316)

 

$
2,692 

 

$
(68)

 

 

Schedule Of Offsetting Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

 

 

 

 

 

 

 

 

 

Securities

 

 

 

 

 

 

 

 

 

Embedded

Lending and

 

 

 

 

 

Derivative

Derivative

Repurchase

 

 

 

 

 

Instruments

Instruments

Agreements

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized assets

 

$
1,805 

 

 

$
1,244 

 

 

$

 -

 

 

$
3,049 

 

Gross amounts offset

 

 
(924)

 

 

 

 -

 

 

 

 -

 

 

 
(924)

 

Net amount of assets

 

 
881 

 

 

 
1,244 

 

 

 

 -

 

 

 
2,125 

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral received

 

 
(623)

 

 

 

 -

 

 

 

 -

 

 

 
(623)

 

Net amount

 

$
258 

 

 

$
1,244 

 

 

$

 -

 

 

$
1,502 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized liabilities

 

$
242 

 

 

$
1,156 

 

 

$
2,600 

 

 

$
3,998 

 

Gross amounts offset

 

 
(55)

 

 

 

 -

 

 

 

 -

 

 

 
(55)

 

Net amount of liabilities

 

 
187 

 

 

 
1,156 

 

 

 
2,600 

 

 

 
3,943 

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral received

 

 

 -

 

 

 

 -

 

 

 
(2,600)

 

 

 
(2,600)

 

Net amount

 

$
187 

 

 

$
1,156 

 

 

$

 -

 

 

$
1,343 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

 

 

 

 

 

 

 

 

 

 

Securities

 

 

 

 

 

 

 

 

 

Embedded

Lending and

 

 

 

 

 

Derivative

Derivative

Repurchase

 

 

 

 

 

Instruments

Instruments

Agreements

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized assets

 

$
3,547 

 

 

$

 -

 

 

$

 -

 

 

$
3,547 

 

Gross amounts offset

 

 
(895)

 

 

 

 -

 

 

 

 -

 

 

 
(895)

 

Net amount of assets

 

 
2,652 

 

 

 

 -

 

 

 

 -

 

 

 
2,652 

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral received

 

 
(2,624)

 

 

 

 -

 

 

 

 -

 

 

 
(2,624)

 

Net amount

 

$
28 

 

 

$

 -

 

 

$

 -

 

 

$
28 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized liabilities

 

$
11 

 

 

$
1,856 

 

 

$
1,614 

 

 

$
3,481 

 

Gross amounts offset

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net amount of liabilities

 

 
11 

 

 

 
1,856 

 

 

 
1,614 

 

 

 
3,481 

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral received

 

 

 -

 

 

 

 -

 

 

 
(1,614)

 

 

 
(1,614)

 

Net amount

 

$
11 

 

 

$
1,856 

 

 

$

 -

 

 

$
1,867