Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of December 31, 2016						As of December 31, 2015
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	89,013		$	89,013		$	84,964		$	84,964
VIEs’ fixed maturity securities		200			200			598			598
Equity securities		275			275			237			237
Trading securities		1,712			1,712			1,854			1,854
Mortgage loans on real estate		9,889			9,853			8,678			8,936
Derivative investments (1)		927			927			1,537			1,537
Other investments		2,230			2,230			1,778			1,778
Cash and invested cash		2,722			2,722			3,146			3,146
Other assets – reinsurance recoverable		203			203			268			268
Separate account assets		128,397			128,397			123,619			123,619
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,139	)		(1,139	)		(1,100	)		(1,100	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(629	)		(629	)		(687	)		(687	)
Account values of certain investment contracts		(31,516	)		(35,647	)		(30,392	)		(34,618	)
Long-term debt		(5,345	)		(5,679	)		(5,553	)		(5,505	)
Reinsurance related embedded derivatives		(53	)		(53	)		(87	)		(87	)
VIEs’ liabilities – derivative instruments		-			-			(4	)		(4	)
Other liabilities:
Credit default swaps		-			-			(9	)		(9	)
Derivative liabilities (1)		(553	)		(553	)		(69	)		(69	)
GLB reserves embedded derivatives (2)		(371	)		(371	)		(953	)		(953	)
Benefit Plans’ Assets (3)		1,489			1,489			1,486			1,486

⁽¹⁾ We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

⁽²⁾ Portions of our GLB reserves embedded derivatives are ceded to third-party reinsurance counterparties.  Refer to Note 6 for additional detail.

⁽³⁾ Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets.  Refer to Note 17 for information regarding our benefit plans.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of December 31, 2016
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	74,659			$	2,405		$	77,064
ABS			-			1,052				33			1,085
U.S. government bonds			408			11				-			419
Foreign government bonds			-			395				111			506
RMBS			-			3,611				3			3,614
CMBS			-			343				7			350
CLOs			-			676				68			744
State and municipal bonds			-			4,627				-			4,627
Hybrid and redeemable preferred securities			60			468				76			604
VIEs’ fixed maturity securities			-			200				-			200
Equity AFS securities			17			81				177			275
Trading securities			102			1,545				65			1,712
Derivative investments (1)			-			1,406				599			2,005
Other investments			146			-				-			146
Cash and invested cash			-			2,722				-			2,722
Other assets – reinsurance recoverable			-			-				203			203
Separate account assets			863			127,534				-			128,397
Total assets		$	1,596		$	219,330			$	3,747		$	224,673
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,139	)	$	(1,139	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(53	)			-			(53	)
Other liabilities:
Derivative liabilities (1)			-			(939	)			(692	)		(1,631	)
GLB reserves embedded derivatives			-			-				(371	)		(371	)
Total liabilities		$	-		$	(2,195	)		$	(2,202	)	$	(4,397	)
Benefit Plans’ Assets		$	190		$	1,299			$	-		$	1,489

		As of December 31, 2015
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	60		$	70,878			$	1,993		$	72,931
ABS			-			1,056				45			1,101
U.S. government bonds			412			17				-			429
Foreign government bonds			-			413				111			524
RMBS			-			3,727				1			3,728
CMBS			-			366				10			376
CLOs			-			38				551			589
State and municipal bonds			-			4,480				-			4,480
Hybrid and redeemable preferred securities			48			664				94			806
VIEs’ fixed maturity securities			-			598				-			598
Equity AFS securities			8			65				164			237
Trading securities			160			1,621				73			1,854
Derivative investments (1)			-			1,459				853			2,312
Other investments			148			-				-			148
Cash and invested cash			-			3,146				-			3,146
Other assets – reinsurance recoverable			-			-				268			268
Separate account assets			1,053			122,566				-			123,619
Total assets		$	1,889		$	211,094			$	4,163		$	217,146
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,100	)	$	(1,100	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(87	)			-			(87	)
VIEs’ liabilities – derivative instruments			-			-				(4	)		(4	)
Other liabilities:
Credit default swaps			-			-				(9	)		(9	)
Derivative liabilities (1)			-			(546	)			(298	)		(844	)
GLB reserves embedded derivatives			-			-				(953	)		(953	)
Total liabilities		$	-		$	(1,836	)		$	(2,364	)	$	(4,200	)
Benefit Plans’ Assets		$	156		$	1,330			$	-		$	1,486

⁽¹⁾ Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty.

Fair Value Measured On A Recurring Basis Reconciliation

	For the Year Ended December 31, 2016
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,993		$	4		$	(31	)	$	58		$	381		$	2,405
ABS		45			-			(2	)		14			(24	)		33
U.S. government bonds		-			-			-			8			(8	)		-
Foreign government bonds		111			-			-			-			-			111
RMBS		1			-			-			66			(64	)		3
CMBS		10			2			(1	)		27			(31	)		7
CLOs		551			-			-			138			(621	)		68
Hybrid and redeemable
preferred securities		94			-			(3	)		(15	)		-			76
Equity AFS securities		164			5			(4	)		12			-			177
Trading securities		73			4			-			5			(17	)		65
Derivative investments		555			(483	)		(1	)		(164	)		-			(93	)
Other assets – reinsurance recoverable (5)		268			(65	)		-			-			-			203
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,100	)		(120	)		-			81			-			(1,139	)
VIEs’ liabilities – derivative instruments (6)		(4	)		4			-			-			-			-
Other liabilities:
Credit default swaps (6)		(9	)		(6	)		-			15			-			-
GLB reserves embedded derivatives (5)		(953	)		582			-			-			-			(371	)
Total, net	$	1,799		$	(73	)	$	(42	)	$	245		$	(384	)	$	1,545

	For the Year Ended December 31, 2015
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,953		$	4		$	(140	)	$	118		$	58		$	1,993
ABS		33			-			-			12			-			45
Foreign government bonds		109			-			2			-			-			111
RMBS		1			4			-			(4	)		-			1
CMBS		15			2			8			(15	)		-			10
CLOs		368			-			1			194			(12	)		551
Hybrid and redeemable
preferred securities		55			(1	)		(3	)		-			43			94
Equity AFS securities		157			2			3			3			(1	)		164
Trading securities		73			3			(3	)		-			-			73
Derivative investments		989			(90	)		(41	)		(303	)		-			555
Other assets – reinsurance recoverable (5)		154			114			-			-			-			268
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,170	)		(57	)		-			127			-			(1,100	)
VIEs’ liabilities – derivative instruments (6)		(13	)		9			-			-			-			(4	)
Other liabilities:
Credit default swaps (6)		(3	)		(6	)		-			-			-			(9	)
GLB reserves embedded derivatives (5)		(174	)		(779	)		-			-			-			(953	)
Total, net	$	2,547		$	(795	)	$	(173	)	$	132		$	88		$	1,799

	For the Year Ended December 31, 2014
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)(3)			Value
Investments: (4)
Fixed maturity AFS securities:
Corporate bonds	$	1,701		$	9		$	27		$	197		$	19		$	1,953
ABS		10			-			1			-			22			33
Foreign government bonds		79			-			5			-			25			109
RMBS		1			-			-			-			-			1
CMBS		20			-			2			(13	)		6			15
CLOs		179			(3	)		7			136			49			368
State and municipal bonds		28			-			1			-			(29	)		-
Hybrid and redeemable
preferred securities		66			-			(1	)		(5	)		(5	)		55
Equity AFS securities		161			4			(3	)		(5	)		-			157
Trading securities		52			4			8			10			(1	)		73
Derivative investments		1,266			72			356			(279	)		(426	)		989
Other assets – reinsurance recoverable (5)		27			127			-			-			-			154
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,048	)		(210	)		-			88			-			(1,170	)
GLB reserves embedded derivatives		1,244			-			-			-			(1,244	)		-
VIEs’ liabilities – derivative instruments (6)		(27	)		14			-			-			-			(13	)
Other liabilities:
Credit default swaps (6)		(2	)		(1	)		-			-			-			(3	)
GLB reserves embedded derivatives (5)		(27	)		(1,391	)		-			-			1,244			(174	)
Total, net	$	3,730		$	(1,375	)	$	403		$	129		$	(340	)	$	2,547

⁽¹⁾ The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6).

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

⁽³⁾ Transfers into or out of Level 3 for GLB reserves embedded derivatives between future contract benefits, other assets and other liabilities on our Consolidated Balance Sheets.

⁽⁴⁾ 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).

⁽⁵⁾ Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁶⁾ 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).

Schedule Of Investment Holdings Movements

	For the Year Ended December 31, 2016
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	460		$	(62	)	$	(23	)	$	(177	)	$	(140	)	$	58
ABS		15			-			-			(1	)		-			14
U.S. government bonds		-			-			-			8			-			8
RMBS		67			-			-			(1	)		-			66
CMBS		31			(1	)		-			(3	)		-			27
CLOs		140			-			-			(2	)		-			138
Hybrid and redeemable
preferred securities		-			(15	)		-			-			-			(15	)
Equity AFS securities		18			(6	)		-			-			-			12
Trading securities		6			-			-			(1	)		-			5
Derivative investments		176			(169	)		(171	)		-			-			(164	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(70	)		-			-			151			-			81
Other liabilities – credit default swaps		-			15			-			-			-			15
Total, net	$	843		$	(238	)	$	(194	)	$	(26	)	$	(140	)	$	245

	For the Year Ended December 31, 2015
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	359		$	(38	)	$	(44	)	$	(119	)	$	(40	)	$	118
ABS		13			-			-			(1	)		-			12
RMBS		-			(4	)		-			-			-			(4	)
CMBS		-			-			-			(14	)		(1	)		(15	)
CLOs		217			-			-			(23	)		-			194
Equity AFS securities		43			(40	)		-			-			-			3
Derivative investments		179			(162	)		(320	)		-			-			(303	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(51	)		-			-			178			-			127
Total, net	$	760		$	(244	)	$	(364	)	$	21		$	(41	)	$	132

	For the Year Ended December 31, 2014
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	600		$	(75	)	$	(115	)	$	(51	)	$	(162	)	$	197
CMBS		-			-			-			(13	)		-			(13	)
CLOs		187			-			-			(46	)		(5	)		136
Hybrid and redeemable
preferred securities		-			(5	)		-			-			-			(5	)
Equity AFS securities		-			(5	)		-			-			-			(5	)
Trading securities		14			-			-			(4	)		-			10
Derivative investments		160			(87	)		(352	)		-			-			(279	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(69	)		-			-			157			-			88
Total, net	$	892		$	(172	)	$	(467	)	$	43		$	(167	)	$	129

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

	For the Years Ended December 31,
	2016			2015			2014
Derivative investments	$	(431	)	$	(102	)	$	(15	)
Embedded derivatives:
Indexed annuity and IUL contracts		(16	)		(84	)		(37	)
GLB reserves		1,122			(244	)		(678	)
VIEs’ liabilities – derivative instruments		4			9			14
Credit default swaps		-			(6	)		(1	)
Total, net (1)	$	679		$	(427	)	$	(717	)

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

Components Of The Transfers In And Out Of Level 3

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:

	For the Year Ended December 31, 2016
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	605	$	(224	)	$	381
ABS		4		(28	)		(24	)
U.S. government bonds		-		(8	)		(8	)
RMBS		3		(67	)		(64	)
CMBS		-		(31	)		(31	)
CLOs		-		(621	)		(621	)
Trading securities		1		(18	)		(17	)
Total, net	$	613	$	(997	)	$	(384	)

	For the Year Ended December 31, 2015
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	224	$	(166	)	$	58
Foreign government bonds		4		(4	)		-
CLOs		4		(16	)		(12	)
Hybrid and redeemable preferred securities		48		(5	)		43
Equity AFS securities		-		(1	)		(1	)
Trading securities		4		(4	)		-
Total, net	$	284	$	(196	)	$	88

	For the Year Ended December 31, 2014
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	475	$	(456	)	$	19
ABS		26		(4	)		22
Foreign government bonds		25		-			25
CMBS		6		-			6
CLOs		53		(4	)		49
State and municipal bonds		-		(29	)		(29	)
Hybrid and redeemable preferred securities		17		(22	)		(5	)
Trading securities		10		(11	)		(1	)
Derivative investments		-		(426	)		(426	)
Future contract benefits – GLB reserves embedded derivatives		-		(1,244	)		(1,244	)
Other liabilities – GLB reserves embedded derivatives		1,244		-			1,244
Total, net	$	1,856	$	(2,196	)	$	(340	)

Fair Value Inputs Quantitative Information

	Fair			Valuation	Significant	Assumption or
	Value			Technique	Unobservable Inputs	Input Ranges
Assets
Investments:
Fixed maturity AFS and trading
securities:
Corporate bonds	$	1,797		Discounted cash flow	Liquidity/duration adjustment (1)	0.9	%	-	20.4	%
ABS		24		Discounted cash flow	Liquidity/duration adjustment (1)	3.5	%	-	3.5	%
Foreign government bonds		76		Discounted cash flow	Liquidity/duration adjustment (1)	1.8	%	-	5.0	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment (1)	2.1	%	-	2.1	%
Equity AFS securities		26		Discounted cash flow	Liquidity/duration adjustment (1)	4.5	%	-	5.1	%
Other assets – reinsurance
recoverable		203		Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	85	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	80	%	-	115	%
					NPR (5)	0.02	%	-	0.35	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,139	)	Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)
Other liabilities – GLB reserves
embedded derivatives		(371	)	Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	85	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	80	%	-	115	%
					NPR (5)	0.02	%	-	0.35	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%

⁽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 and IUL contracts represents the lapse rates during the surrender charge period.

⁽³⁾ The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁴⁾ The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽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 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.

⁽⁷⁾ 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.

⁽⁸⁾ The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.