Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2018						As of December 31, 2017
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	92,059		$	92,059		$	94,840		$	94,840
Equity securities		-			-			246			246
Trading securities		1,553			1,553			1,620			1,620
Equity securities		112			112			-			-
Mortgage loans on real estate		11,047			10,995			10,762			10,877
Derivative investments (1)		827			827			915			915
Other investments		2,049			2,049			2,296			2,296
Cash and invested cash		2,257			2,257			1,628			1,628
Other assets:
GLB direct embedded derivatives		1,110			1,110			903			903
GLB ceded embedded derivatives		45			45			51			51
Indexed annuity ceded embedded derivatives		17			17			11			11
Separate account assets		142,761			142,761			144,219			144,219
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,346	)		(1,346	)		(1,418	)		(1,418	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(580	)		(580	)		(592	)		(592	)
Account values of certain investment contracts		(32,472	)		(35,007	)		(32,370	)		(36,200	)
Short-term debt		(250	)		(250	)		(450	)		(452	)
Long-term debt		(5,648	)		(5,724	)		(4,894	)		(5,042	)
Reinsurance related embedded derivatives		(34	)		(34	)		(57	)		(57	)
Other liabilities:
Derivative liabilities (1)		(234	)		(234	)		(338	)		(338	)
GLB ceded embedded derivatives		(111	)		(111	)		(67	)		(67	)

⁽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.

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of March 31, 2018
		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		$	-		$	76,567			$	3,192		$	79,759
ABS			-			895				26			921
U.S. government bonds			392			4				5			401
Foreign government bonds			-			332				108			440
RMBS			-			3,374				-			3,374
CMBS			-			636				27			663
CLOs			-			873				2			875
State and municipal bonds			-			5,000				-			5,000
Hybrid and redeemable preferred securities			70			479				77			626
Trading securities			73			1,433				47			1,553
Equity securities			29			56				27			112
Derivative investments (1)			-			761				689			1,450
Other investments			149			-				-			149
Cash and invested cash			-			2,257				-			2,257
Other assets:
GLB direct embedded derivatives			-			-				1,110			1,110
GLB ceded embedded derivatives			-			-				45			45
Indexed annuity ceded embedded derivatives			-			-				17			17
Separate account assets			966			141,795				-			142,761
Total assets		$	1,679		$	234,462			$	5,372		$	241,513
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,346	)	$	(1,346	)
Long-term debt			-			(1,072	)			-			(1,072	)
Reinsurance related embedded derivatives			-			(34	)			-			(34	)
Other liabilities:
Derivative liabilities (1)			-			(447	)			(410	)		(857	)
GLB ceded embedded derivatives			-			-				(111	)		(111	)
Total liabilities		$	-		$	(1,553	)		$	(1,867	)	$	(3,420	)

		As of December 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		$	-		$	79,125			$	3,091		$	82,216
ABS			-			947				27			974
U.S. government bonds			556			6				5			567
Foreign government bonds			-			341				110			451
RMBS			-			3,453				12			3,465
CMBS			-			594				6			600
CLOs			-			717				91			808
State and municipal bonds			-			5,119				-			5,119
Hybrid and redeemable preferred securities			71			493				76			640
Equity AFS securities			28			56				162			246
Trading securities			73			1,498				49			1,620
Derivative investments (1)			-			994				603			1,597
Other investments			150			-				-			150
Cash and invested cash			-			1,628				-			1,628
Other assets:
GLB direct embedded derivatives			-			-				903			903
GLB ceded embedded derivatives			-			-				51			51
Indexed annuity ceded embedded derivatives			-			-				11			11
Separate account assets			814			143,405				-			144,219
Total assets		$	1,692		$	238,376			$	5,197		$	245,265
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,418	)	$	(1,418	)
Long-term debt			-			(1,127	)			-			(1,127	)
Reinsurance related embedded derivatives			-			(57	)			-			(57	)
Other liabilities:
Derivative liabilities (1)			-			(447	)			(573	)		(1,020	)
GLB ceded embedded derivatives			-			-				(67	)		(67	)
Total liabilities		$	-		$	(1,631	)		$	(2,058	)	$	(3,689	)

⁽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, 2018
							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	$	3,091		$	3		$	17		$	74		$	7		$	3,192
ABS		27			-			(1	)		-			-			26
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		110			-			(2	)		-			-			108
RMBS		12			-			-			-			(12	)		-
CMBS		6			1			-			20			-			27
CLOs		91			-			-			2			(91	)		2
Hybrid and redeemable
preferred securities		76			-			1			-			-			77
Equity AFS securities		162			-			-			-			(162	)		-
Trading securities		49			(2	)		-			-			-			47
Equity securities		-			-			-			1			26			27
Derivative investments		30			329			(19	)		(61	)		-			279
Other assets: (5)
GLB direct embedded derivatives		903			207			-			-			-			1,110
GLB ceded embedded derivatives		51			(6	)		-			-			-			45
Indexed annuity ceded embedded derivatives		11			-			-			6			-			17
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,418	)		52			-			20			-			(1,346	)
Other liabilities – GLB ceded embedded
derivatives (5)		(67	)		(44	)		-			-			-			(111	)
Total, net	$	3,139		$	540		$	(4	)	$	62		$	(232	)	$	3,505

	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: (4)
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

⁽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⁾ Transfers into or out of Level 3 for FHLB stock between equity securities and other investments at cost 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).

Schedule Of Investment Holdings Movements

	For the Three Months Ended March 31, 2018
	Issuances			Sales			Maturities		Settlements				Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	223		$	(53	)	$	(2	)	$	(94	)	$	-	$	74
CMBS		21			-			-			(1	)		-		20
CLOs		2			-			-			-			-		2
Equity securities		1			-			-			-			-		1
Derivative investments		68			(6	)		(123	)		-			-		(61	)
Other assets – indexed annuity ceded
embedded derivatives		6			-			-			-			-		6
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(27	)		-			-			47			-		20
Total, net	$	294		$	(59	)	$	(125	)	$	(48	)	$	-	$	62

	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

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

	For the Three
	Months Ended
	March 31,
	2018			2017
Derivative investments	$	281		$	(74	)
Embedded derivatives:
Indexed annuity and IUL contracts		(4	)		(14	)
GLB		376			747
Total, net (1)	$	653		$	659

⁽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, 2018								March 31, 2017
	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	$	40	$	(33	)	$	7		$	160	$	(29	)	$	131
ABS		-		-			-			-		(5	)		(5	)
U.S. government bonds		-		-			-			5		-			5
RMBS		-		(12	)		(12	)		-		-			-
CMBS		-		-			-			-		(4	)		(4	)
CLOs		-		(91	)		(91	)		30		(15	)		15
State and municipal bonds		-		-			-			2		-			2
Equity AFS securities		-		(162	)		(162	)		-		-			-
Trading securities		-		-			-			3		-			3
Equity securities		26		-			26			-		-			-
Total, net	$	66	$	(298	)	$	(232	)	$	200	$	(53	)	$	147

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	$	2,570		Discounted cash flow	Liquidity/duration adjustment (1)	0.5	%	-	22.2	%
ABS		23		Discounted cash flow	Liquidity/duration adjustment (1)	3.0	%	-	3.0	%
Foreign government bonds		78		Discounted cash flow	Liquidity/duration adjustment (1)	1.6	%	-	3.1	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment (1)	1.8	%	-	1.8	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment (1)	4.5	%	-	5.0	%
Other assets:
GLB direct and ceded
embedded derivatives		1,155		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	%	-	0.30	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%
Indexed annuity ceded
embedded derivatives		17		Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,346	)	Discounted cash flow	Lapse rate (2)	1	%	-	9	%
					Mortality rate (6)				(8)
Other liabilities – GLB ceded
embedded derivatives		(111	)	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	%	-	0.30	%
					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.