FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2015

Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value Measurements at December 31, 2015



	Level 1			Level 2			Level 3		Total
	(In Millions)
Assets
Investments:
Fixed maturities, available-for-sale:
Corporate	$	—		$	19,882		$	420	$	20,302
U.S. Treasury, government and agency	—			8,775			—		8,775
States and political subdivisions	—			459			45		504
Foreign governments	—			414			1		415
Commercial mortgage-backed	—			30			503		533
Residential mortgage-backed⁽¹⁾	—			640			—		640
Asset-backed⁽²⁾	—			37			40		77
Redeemable preferred stock	258			389			—		647
Subtotal	258			30,626			1,009		31,893
Other equity investments	97			—			49		146
Trading securities	654			6,151			—		6,805
Other invested assets:
Short-term investments	—			369			—		369
Swaps	—			230			—		230
Credit Default Swaps	—			(22		)	—		(22		)
Futures	(1		)	—			—		(1		)
Options	—			390			—		390
Floors	—			61			—		61
Currency Contracts	—			1			—		1
Subtotal	(1		)	1,029			—		1,028
Cash equivalents	2,150			—			—		2,150
Segregated securities	—			565			—		565
GMIB reinsurance contracts	—			—			10,570		10,570
Separate Accounts’ assets	104,058			2,964			313		107,335
Total Assets	$	107,216		$	41,335		$	11,941	$	160,492
Liabilities
GWBL and other features’ liability	$	—		$	—		$	184	184
SCS, SIO, MSO and IUL indexed features’ liability	—			310			—		310
Contingent payment arrangements	—			—			31		31
Total Liabilities	$	—		$	310		$	215	$	525


(1)	Includes publicly traded agency pass-through securities and collateralized obligations.


(2)	Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.

Fair Value Measurements at December 31, 2014



	Level 1			Level 2			Level 3		Total
	(In Millions)
Assets
Investments:
Fixed maturities, available-for-sale:
Corporate	$	—		$	21,840		$	380	$	22,220
U.S. Treasury, government and agency	—			7,331			—		7,331
States and political subdivisions	—			472			47		519
Foreign governments	—			446			—		446
Commercial mortgage-backed	—			20			715		735
Residential mortgage-backed⁽¹⁾	—			793			2		795
Asset-backed⁽²⁾	—			46			53		99
Redeemable preferred stock	254			635			—		889
Subtotal	254			31,583			1,197		33,034
Other equity investments	217			—			61		278
Trading securities	710			4,433			—		5,143
Other invested assets:
Short-term investments	—			103			—		103
Swaps	—			597			—		597
Credit Default Swaps	—			(18		)	—		(18		)
Futures	(2		)	—			—		(2		)
Options	—			473			—		473
Floors	—			120			—		120
Currency Contracts	—			1			—		1
Swaptions	—			72			—		72
Subtotal	(2		)	1,348			—		1,346
Cash equivalents	2,725			—			—		2,725
Segregated securities	—			476			—		476
GMIB reinsurance contracts	—			—			10,711		10,711
Separate Accounts’ assets	107,539			3,072			260		110,871
Total Assets	$	111,443		$	40,912		$	12,229	$	164,584
Liabilities
GWBL and other features’ liability	$	—		$	—		$	128	128
SCS, SIO, MSO and IUL indexed features’ liability	—			380			—		380
Contingent payment arrangements	—			—			42		42
Total Liabilities	$	—		$	380		$	170	$	550


(1)	Includes publicly traded agency pass-through securities and collateralized obligations.


(2)	Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.

Reconciliation of Assets and Liabilities at Level 3

Level 3 Instruments

Fair Value Measurements



	Corporate			State and Political Sub-divisions			Foreign Govts		Commercial Mortgage- backed			Residential Mortgage- backed			Asset- backed
	(In Millions)
Balance, January 1, 2015	$	380		$	47		$	—	$	715		$	2		$	53
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	3			—			—		1			—			—
Investment gains (losses), net	2			—			—		(38		)	—			—
Subtotal	5			—			—		(37		)	—			—
Other comprehensive income (loss)	(25		)	(1		)	—		64			—			(4		)
Purchases⁽³⁾	60			—			1		—			—			—
Sales⁽⁴⁾	(38		)	(1		)	—		(175		)	(2		)	(9		)
Transfers into Level 3⁽¹⁾	99			—			—		—			—			—
Transfers out of Level 3⁽¹⁾	(61		)	—			—		(64		)	—			—
Balance, December 31, 2015	$	420		$	45		$	1	$	503		$	—		$	40
Balance, January 1, 2014	$	291		$	46		$	—	$	700		$	4		$	83
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	2			—			—		2			—			—
Investment gains (losses), net	3			—			—		(89		)	—			—
Subtotal	$	5		$	—		$	—	$	(87	)	$	—		$	—
Other comprehensive income (loss)	6			2			—		135			—			7
Purchases⁽³⁾	162			—			—		—			—			—
Sales⁽⁴⁾	(30		)	(1		)	—		(20		)	(2		)	(37		)
Transfers into Level 3⁽¹⁾	15			—			—		—			—			—
Transfers out of Level 3⁽¹⁾	(69		)	—			—		(13		)	—			—
Balance, December 31, 2014	$	380		$	47		$	—	$	715		$	2		$	53

Level 3 Instruments

Fair Value Measurements



	Corporate			State and Political Sub-divisions			Foreign Govts			Commercial Mortgage- backed			Residential Mortgage- backed			Asset- backed
	(In Millions)
Balance, January 1, 2013	$	355		$	50		$	19		$	900		$	9		$	113
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	2			—			—			—			—			—
Investment gains (losses), net	5			—			—			(68		)	—			—
Subtotal	7			—			—			(68		)	—			—
Other comprehensive income (loss)	(1		)	(3		)	(2		)	13			(1		)	3
Purchases⁽³⁾	70			—			—			31			—			—
Sales⁽⁴⁾	(150		)	(1		)	(17		)	(160		)	(4		)	(22		)
Transfers into Level 3⁽¹⁾	20			—			—			—			—			—
Transfers out of Level 3⁽¹⁾	(10		)	—			—			(16		)	—			(11		)
Balance, December 31, 2013	$	291		$	46		$	—		$	700		$	4		$	83



	Redeem-able Preferred Stock			Other Equity Investments			GMIB Reinsurance Asset			Separate Accounts Assets			GWBL and Other Features Liability			Contingent Payment Arrangement
	(In Millions)
Balance, January 1, 2015	$	—		$	61		$	10,711		$	260		$	128		42
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	—			—			—			—			—			—
Investment gains (losses), net	—			5			—			36			—			—
Increase (decrease) in the fair value of reinsurance contracts	—			—			(327		)	—			—			—
Policyholders’ benefits	—			—			—			—			(130		)	—
Subtotal	—			5			(327		)	36			(130		)	—
Other comprehensive income (loss)	—			2			—			—			—			—
Purchases ⁽²⁾	—			1			228			26			186			—
Sales ⁽³⁾	—			(20		)	(42		)	(2		)	—			(11	)
Settlements ⁽⁴⁾	—			—			—			(5		)	—			—
Transfers into Level 3⁽¹⁾	—			—			—			—			—			—
Transfers out of Level 3⁽¹⁾	—			—			—			(2		)	—			—
Balance, December 31, 2015	$	—		$	49		$	10,570		$	313		$	184		31
Balance, January 1, 2014	$	15		$	52		$	6,747		$	237		$	—		38
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	—			3			—			—			—			—
Investment gains (losses), net	—			1			—			15			—			—
Increase (decrease) in the fair value of reinsurance contracts	—			—			3,774			—			—			—
Policyholders’ benefits	—			—			—			—			(8		)	—
Subtotal	$	—		$	4		$	3,774		$	15		$	(8	)	—
Other comprehensive income(loss)	—			—			—			—			—
Purchases ⁽²⁾	—			8			225			16			136			9
Sales ⁽³⁾	(15		)	(1		)	(35		)	(3		)	—			(5	)
Settlements ⁽⁴⁾	—			—			—			(5		)	—			—
Transfers into Level 3⁽¹⁾	—			—			—			—			—			—
Transfers out of Level 3⁽¹⁾	—			(2		)	—			—			—			—
Balance, December 31, 2014	$	—		$	61		$	10,711		$	260		$	128		42



	Redeem- able Preferred Stock		Other Equity Investments			Other Invested Assets			GMIB Reinsurance Asset			Separate Accounts Assets			GWBL and Other Features Liability
	(In Millions)
Balance, January 1, 2013	$	15	$	77		$	(2	)	$	11,044		$	224		$	265
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net Investment Income (loss)			10
Investment gains (losses), net	—		(7		)	—			—			10			—
Increase (decrease) in the fair value of reinsurance contracts	—		—			—			(4,496		)	—			—
Policyholders’ benefits	—		—			—			—			—			(351		)
Subtotal	—		3			—			(4,496		)	10			(351		)
Other comprehensive income (loss)	—		—			2			—			(1		)	—
Purchases ⁽²⁾	—		4			—			237			6			86
Sales ⁽³⁾	—		(3		)	—			(38		)	(3		)	—
Settlements ⁽⁴⁾	—		—			—			—			(2		)	—
Transfers into Level 3 ⁽¹⁾	—		—			—			—			3			—
Transfers out of Level 3 ⁽¹⁾	—		(29		)	—			—			—			—
Balance, December 31, 2013	$	15	$	52		$	—		$	6,747		$	237		$	—


(1)	Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values.


(2)	For the GMIB reinsurance contract asset and GWBL and other features reserves, represents premiums.


(3)	For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GWBL and other features reserves represents benefits paid.


(4)	For contingent payment arrangements, it represents payments under the arrangement.

The table below details changes in unrealized gains (losses) for 2015 and 2014 by category for Level 3 assets and liabilities still held at December 31, 2015 and 2014, respectively:



	Earnings (Loss)
	Net Investment Income (Loss)		Investment Gains (Losses), Net		Increase (Decrease) in the Fair Value of Reinsurance Contracts			OCI			Policy- holders’ Benefits
	(In Millions)
Level 3 Instruments
Full Year 2015
Still Held at December 31, 2015
Change in unrealized gains (losses):
Fixed maturities, available-for-sale:
Corporate	$	—	$	—	$	—		$	(25	)	$	—
State and political subdivisions	—		—		—			(2		)	—
Commercial mortgage-backed	—		—		—			61			—
Asset-backed	—		—		—			(4		)	—
Other fixed maturities, available-for-sale	—		—		—			—			—
Subtotal	$	—	$	—	$	—		$	30		$	—
GMIB reinsurance contracts	—		—		(141		)	—			—
Separate Accounts’ assets	—		36		—			—			—
GWBL and other features’ liability	—		—		—			—			184
Total	$	—	$	36	$	(141	)	$	30		$	184
Level 3 Instruments
Full Year 2014
Still Held at December 31, 2014
Change in unrealized gains (losses):
Fixed maturities, available-for-sale:
Corporate	$	—	$	—	$	—		$	6		$	—
State and political subdivisions	—		—		—			2			—
Commercial mortgage-backed	—		—		—			112			—
Asset-backed	—		—		—			7			—
Other fixed maturities, available-for-sale	—		—		—			—			—
Subtotal	$	—	$	—	$	—		$	127		$	—
GMIB reinsurance contracts	—		—		3,964			—			—
Separate Accounts’ assets	—		15		—			—			—
GWBL and other features’ liability	—		—		—			—			128
Total	$	—	$	15	$	3,964		$	127		$	128

Quantitative Information About Level 3 Fair Value Measurement

The following table discloses quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2015 and 2014, respectively.

Quantitative Information about Level 3 Fair Value Measurements

December 31, 2015



	Fair Value		Valuation Technique	Significant Unobservable Input	Range
Assets:	(In Millions)
Investments:
Fixed maturities, available-for-sale:
Corporate	$	61	Matrix pricing model	Spread over the industry-specific benchmark yield curve	50 bps - 565 bps
	154		Market comparable companies	EBITDA multiples Discount rate Cash flow Multiples	7.8x - 19.1x 7.0% - 12.6% 14.0x - 16.5x
Asset-backed	3		Matrix pricing model	Spread over U.S. Treasury curve	30 bps - 687 bps
Other equity investments	10		Market comparable companies	Revenue multiple Marketability Discount	2.5x - 4.8x 30.0%
Separate Accounts’ assets	271		Third party appraisal	Capitalization rate Exit capitalization rate Discount rate	4.9% 5.9% 6.7%
	7		Discounted cash flow	Spread over U.S. Treasury curve Gross domestic product rate Discount factor	280 bps - 411 bps 0.0% - 1.09% 2.3% - 5.9%
GMIB reinsurance contracts	10,570		Discounted cash flow	Lapse Rates Withdrawal rates GMIB Utilization Rates Non-performance risk Volatility rates—Equity	0.6% - 5.7% 0.2% - 8.0% 0.0% - 15% 5 bps - 18 bps 9% - 35%
Liabilities:
GMWB/GWBL⁽¹⁾	120		Discounted cash flow	Lapse Rates Withdrawal rates Volatility rates—Equity	1.0% - 5.7% 0.0% - 7.0% 9% - 35%


(1)	Excludes GMAB and GIB liabilities.

Quantitative Information about Level 3 Fair Value Measurements

December 31, 2014



	Fair Value		Valuation Technique	Significant Unobservable Input	Range
Assets:	(In Millions)
Investments:
Fixed maturities, available-for-sale:
Corporate	$	75	Matrix pricing model	Spread over the industry-specific benchmark yield curve	0 bps - 590 bps
	132		Market comparable companies	Discount rate	11.2% - 15.2%
Asset-backed	5		Matrix pricing model	Spread over U.S. Treasury curve	30 bps - 687 bps
Other equity investments	20		Market comparable companies	Revenue multiple Discount rate Discount years	2.0x - 3.5x 18.0% 2
Separate Accounts’ assets	234		Third party appraisal	Capitalization rate Exit capitalization rate Discount rate	5.2% 6.2% 7.1%
	7		Discounted cash flow	Spread over U.S. Treasury curve Gross domestic product rate Discount factor	238 bps - 395 bps 0.0% - 2.4% 1.3% - 5.4%
GMIB reinsurance contracts	10,711		Discounted cash flow	Lapse Rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity	1.0% - 8.0% 0.2% - 8.0% 0.0% - 15.0% 5 bps - 16 bps 9.0% - 34.0%
Liabilities:
GMWB/GWBL ⁽¹⁾	107		Discounted cash flow	Lapse Rates Withdrawal Rates Volatility rates - Equity	1.0% - 8.0% 0.0% - 7.0% 9.0% - 34.0%

Fair Value Disclosure Financial Instruments Not Carried At Fair Value

The carrying values and fair values at December 31, 2015 and 2014 for financial instruments not otherwise disclosed in Notes 3 and 12 are presented in the table below. Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts, limited partnerships accounted for under the equity method and pension and other postretirement obligations.



	Carrying Value		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
	(In Millions)
December 31, 2015:
Mortgage loans on real estate	$	7,171	$	—	$	—	$	7,257	$	7,257
Loans to affiliates	1,087		—		795		390		1,185
Policyholders liabilities: Investment contracts	7,825		—		—		7,930		7,930
Policy loans	3,393		—		—		4,343		4,343
Short-term debt	584		—		584		—		584
Separate Account Liabilities	5,124		—		—		5,124		5,124
December 31, 2014:
Mortgage loans on real estate	$	6,463	$	—	$	—	$	6,617	6,617
Loans to affiliates	1,087		—		1,203		—		1,203
Policyholders liabilities: Investment contracts	2,799		—		—		2,941		2,941
Policy loans	3,408		—		—		4,406		4,406
Short-term debt	688		—		700		—		700
Separate Account Liabilities	5,019		—		—		5,019		5,019