Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2017						As of December 31, 2016
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	91,102		$	91,102		$	89,013		$	89,013
VIEs’ fixed maturity securities		-			-			200			200
Equity securities		276			276			275			275
Trading securities		1,703			1,703			1,712			1,712
Mortgage loans on real estate		10,001			10,033			9,889			9,853
Derivative investments (1)		991			991			927			927
Other investments		2,104			2,104			2,230			2,230
Cash and invested cash		1,923			1,923			2,722			2,722
Other assets:
GLB direct embedded derivatives (2)		226			226			-			-
GLB ceded embedded derivatives		116			116			203			203
Separate account assets		132,958			132,958			128,397			128,397
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,238	)		(1,238	)		(1,139	)		(1,139	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(629	)		(629	)		(629	)		(629	)
Account values of certain investment contracts		(31,832	)		(35,540	)		(31,516	)		(35,647	)
Short-term debt		(200	)		(210	)		-			-
Long-term debt		(5,133	)		(5,573	)		(5,345	)		(5,679	)
Reinsurance related embedded derivatives		(50	)		(50	)		(53	)		(53	)
Other liabilities:
Derivative liabilities (1)		(171	)		(171	)		(553	)		(553	)
GLB direct embedded derivatives (2)		-			-			(371	)		(371	)

⁽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 direct embedded derivatives are ceded to third-party reinsurance counterparties.  Refer to Note 5 for additional detail.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of March 31, 2017
		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		$	-		$	76,376			$	2,403		$	78,779
ABS			-			1,033				29			1,062
U.S. government bonds			562			9				5			576
Foreign government bonds			-			346				110			456
RMBS			-			3,574				7			3,581
CMBS			-			383				44			427
CLOs			-			688				88			776
State and municipal bonds			-			4,825				1			4,826
Hybrid and redeemable preferred securities			66			474				79			619
Equity AFS securities			16			78				182			276
Trading securities			102			1,541				60			1,703
Derivative investments (1)			-			1,077				560			1,637
Other investments			150			-				-			150
Cash and invested cash			-			1,923				-			1,923
Other assets:
GLB direct embedded derivatives			-			-				226			226
GLB ceded embedded derivatives			-			-				116			116
Separate account assets			834			132,124				-			132,958
Total assets		$	1,730		$	224,451			$	3,910		$	230,091
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,238	)	$	(1,238	)
Long-term debt			-			(1,118	)			-			(1,118	)
Reinsurance related embedded derivatives			-			(50	)			-			(50	)
Other liabilities:
Derivative liabilities (1)			-			(369	)			(448	)		(817	)
Total liabilities		$	-		$	(1,537	)		$	(1,686	)	$	(3,223	)

		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 – GLB ceded embedded derivatives			-			-				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 direct embedded derivatives			-			-				(371	)		(371	)
Total liabilities		$	-		$	(2,195	)		$	(2,202	)	$	(4,397	)

⁽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 Three Months Ended March 31, 2017
							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: (3)
Fixed maturity AFS securities:
Corporate bonds	$	2,405		$	6		$	65		$	(204	)	$	131		$	2,403
ABS		33			-			1			-			(5	)		29
U.S. government bonds		-			-			-			-			5			5
Foreign government bonds		111			-			(1	)		-			-			110
RMBS		3			-			-			4			-			7
CMBS		7			-			-			41			(4	)		44
CLOs		68			-			-			5			15			88
State and municipal bonds		-			(1	)		-			-			2			1
Hybrid and redeemable
preferred securities		76			-			3			-			-			79
Equity AFS securities		177			1			(1	)		5			-			182
Trading securities		65			1			7			(16	)		3			60
Derivative investments		(93	)		(69	)		23			251			-			112
Other assets: (5)
GLB direct embedded derivatives		-			226			-			-			-			226
GLB ceded embedded derivatives		203			(87	)		-			-			-			116
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,139	)		(120	)		-			21			-			(1,238	)
Other liabilities – GLB direct embedded
derivatives (5)		(371	)		371			-			-			-			-
Total, net	$	1,545		$	328		$	97		$	107		$	147		$	2,224

	For the Three Months Ended March 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: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,993		$	6		$	18		$	28		$	140		$	2,185
ABS		45			-			(1	)		-			-			44
Foreign government bonds		111			-			-			-			-			111
RMBS		1			-			-			-			-			1
CMBS		10			-			-			(1	)		-			9
CLOs		551			-			2			38			-			591
Hybrid and redeemable
preferred securities		94			-			(2	)		-			-			92
Equity AFS securities		164			-			(1	)		4			-			167
Trading securities		73			1			2			(1	)		(1	)		74
Derivative investments		555			(440	)		92			(17	)		-			190
Other investments (4)		-			2			-			-			-			2
Other assets – GLB ceded
embedded derivatives (5)		268			165			-			-			-			433
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives (5)		(1,100	)		7			-			5			-			(1,088	)
VIEs’ liabilities – derivative instruments (4)		(4	)		4			-			-			-			-
Other liabilities:
Credit default swaps (4)		(9	)		(3	)		-			-			-			(12	)
GLB direct embedded derivatives (5)		(953	)		(963	)		-			-			-			(1,916	)
Total, net	$	1,799		$	(1,221	)	$	110		$	56		$	139		$	883

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

⁽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 the prior period.

⁽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⁾ 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).

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

Schedule Of Investment Holdings Movements

	For the Three Months Ended March 31, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	38		$	(62	)	$	(22	)	$	(63	)	$	(95	)	$	(204	)
RMBS		4			-			-			-			-			4
CMBS		41			-			-			-			-			41
CLOs		5			-			-			-			-			5
Equity AFS securities		7			(2	)		-			-			-			5
Trading securities		2			(17	)		-			(1	)		-			(16	)
Derivative investments		47			294			(90	)		-			-			251
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(18	)		-			-			39			-			21
Total, net	$	126		$	213		$	(112	)	$	(25	)	$	(95	)	$	107

	For the Three Months Ended March 31, 2016
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	116		$	9		$	(4	)	$	(36	)	$	(57	)	$	28
CMBS		-			(1	)		-			-			-			(1	)
CLOs		40			-			-			(2	)		-			38
Equity AFS securities		4			-			-			-			-			4
Trading securities		-			-			-			(1	)		-			(1	)
Derivative investments		40			(43	)		(14	)		-			-			(17	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(26	)		-			-			31			-			5
Total, net	$	174		$	(35	)	$	(18	)	$	(8	)	$	(57	)	$	56

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

	For the Three
	Months Ended
	March 31,
	2017			2016
Derivative investments	$	(74	)	$	(393	)
Other investments		-			2
Embedded derivatives:
Indexed annuity and IUL contracts		(14	)		(23	)
GLB		747			(824	)
VIEs’ liabilities – derivative instruments		-			4
Credit default swaps		-			(3	)
Total, net (1)	$	659		$	(1,237	)

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

Components Of The Transfers In And Out Of Level 3

	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2017								March 31, 2016
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	160	$	(29	)	$	131		$	164	$	(24	)	$	140
ABS		-		(5	)		(5	)		-		-			-
U.S. government bonds		5		-			5			-		-			-
CMBS		-		(4	)		(4	)		-		-			-
CLOs		30		(15	)		15			-		-			-
State and municipal bonds		2		-			2			-		-			-
Trading securities		3		-			3			-		(1	)		(1	)
Total, net	$	200	$	(53	)	$	147		$	164	$	(25	)	$	139

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	$	1,795		Discounted cash flow	Liquidity/duration adjustment (1)	0.6	%	-	37.3	%
ABS		25		Discounted cash flow	Liquidity/duration adjustment (1)	3.0	%	-	3.0	%
Foreign government bonds		79		Discounted cash flow	Liquidity/duration adjustment (1)	1.7	%	-	3.3	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment (1)	2.0	%	-	2.0	%
Equity AFS securities		24		Discounted cash flow	Liquidity/duration adjustment (1)	4.5	%	-	5.0	%
Other assets – GLB direct and ceded
embedded derivatives		342		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	%	-	0.37	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,238	)	Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)

⁽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.