Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Derivatives and Hedging Activities

Schedule of derivative liabilities as defined by the rule of guidance by FSOC

	March 31, 2013		December 31, 2012
	(in millions)
Fair value of OTC derivative liabilities after application of master netting agreements and cash collateral	$	634	$	536
Fair value of embedded derivative liabilities	330		880
Fair value of derivative liabilities after application of master netting agreements and cash collateral	$	964	$	1,416

Schedule of balance sheet location and gross fair value of derivative instruments, including embedded derivatives

		Asset					Liability
Derivatives not designated as hedging instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		Balance Sheet Location	March 31, 2013		December 31, 2012
		(in millions)					(in millions)
GMWB and GMAB
Interest rate contracts	Other assets	$	1,937	$	2,191	Other liabilities	$	1,421	$	1,486
Equity contracts	Other assets	1,192		1,215		Other liabilities	1,904		1,792
Foreign currency contracts	Other assets	7		6		Other liabilities	1		—
Embedded derivatives(1)	Not applicable	—		—		Future policy benefits	266		833
Total GMWB and GMAB		3,136		3,412			3,592		4,111
Other derivatives:
Equity
EIA embedded derivatives	Not applicable	—		—		Future policy benefits	3		2
IUL	Other assets	14		6		Other liabilities	5		1
IUL embedded derivatives	Not applicable	—		—		Future policy benefits	61		45
Total other		14		6			69		48
Total derivatives		$	3,150	$	3,418		$	3,661	$	4,159

(1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Schedule of impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income

		Amount of Gain (Loss) on Derivatives
Derivatives not designated	Location of Gain (Loss) on	Recognized in Income
as hedging instruments	Derivatives Recognized in Income	2013			2012
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(132	)	$	(225	)
Equity contracts	Benefits, claims, losses and settlement expenses	(492		)	(695		)
Credit contracts	Benefits, claims, losses and settlement expenses	—			(3		)
Foreign currency contracts	Benefits, claims, losses and settlement expenses	5			4
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses	567			745
Total GMWB and GMAB		(52		)	(174		)
Other derivatives:
Equity
EIA	Interest credited to fixed accounts	1			1
EIA embedded derivatives	Interest credited to fixed accounts	(1		)	—
IUL	Interest credited to fixed accounts	4			—
IUL embedded derivatives	Interest credited to fixed accounts	3			—
Total other		7			1
Total derivatives		$	(45	)	$	(173	)

(1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Schedule of payments the entity has to make and receive for the options related to minimum guaranteed benefits

	Premiums Payable		Premiums Receivable
	(in millions)
2013(1)	$	287	$	47
2014	344		54
2015	317		53
2016	287		46
2017	237		40
2018-2027	780		104

(1)   2013 amounts represent the amounts payable and receivable for the period from April 1, 2013 to December 31, 2013.

Summary of unrealized derivative losses included in accumulated other comprehensive income related to cash flow hedges

	2013			2012
	(in millions)
Net unrealized derivative losses at January 1	$	(21	)	$	(26	)
Reclassification of realized losses(1)	2			2
Income tax benefit	(1		)	(1		)
Net unrealized derivative losses at March 31	$	(20	)	$	(25	)

(1) Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income.