FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2016

Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value Measurements at December 31, 2016



	Level 1		Level 2			Level 3		Total
	(In Millions)
Assets
Investments:
Fixed maturities, available-for-sale:
Public Corporate	$	—	$	12,984		$	28	$	13,012
Private Corporate	—		6,223			817		7,040
U.S. Treasury, government and agency	—		10,336			—		10,336
States and political subdivisions	—		451			42		493
Foreign governments	—		390			—		390
Commercial mortgage-backed	—		22			349		371
Residential mortgage-backed⁽¹⁾	—		314			—		314
Asset-backed⁽²⁾	—		36			24		60
Redeemable preferred stock	218		335			1		554
Subtotal	218		31,091			1,261		32,570
Other equity investments	3		—			5		8
Trading securities	478		8,656			—		9,134
Other invested assets:
Short-term investments	—		574			—		574
Assets of consolidated VIEs	342		205			6		553
Swaps	—		(925		)	—		(925		)
Credit Default Swaps	—		5			—		5
Futures	—		—			—		—
Options	—		960			—		960
Floors	—		11			—		11
Subtotal	342		830			6		1,178
Cash equivalents	1,529		—			—		1,529
Segregated securities	—		946			—		946
GMIB reinsurance contracts asset	—		—			10,309		10,309
Separate Accounts’ assets	108,085		2,818			313		111,216
Total Assets	$	110,655	$	44,341		$	11,894	$	166,890
Liabilities
GWBL and other features’ liability	$	—	$	—		$	164	$	164
SCS, SIO, MSO and IUL indexed features’ liability	—		887			—		887
Liabilities of consolidated VIEs	248		2			—		250
Contingent payment arrangements	—		—			18		18
Total Liabilities	$	248	$	889		$	182	$	1,319


(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, 2015



	Level 1			Level 2			Level 3		Total
	(In Millions)
Assets
Investments:
Fixed maturities, available-for-sale:
Public Corporate	$	—		$	13,345		$	31	$	13,376
Private Corporate	—			6,537			389		6,926
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 asset	—			—			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.

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, 2016	$	420		$	45		$	1		$	503		$	—		$	40
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	—			—			—			—			—			—
Investment gains (losses), net	1			—			—			(67		)	—			—
Subtotal	1			—			—			(67		)	—			—
Other comprehensive income (loss)	7			(2		)	—			14			—			1
Purchases	572			—			—			—			—			—
Sales	(142		)	(1		)	—			(87		)	—			(8		)
Transfers into Level 3⁽¹⁾	25			—			—			—			—			—
Transfers out of Level 3⁽¹⁾	(38		)	—			(1		)	(14		)	—			(9		)
Balance, December 31, 2016	$	845		$	42		$	—		$	349		$	—		$	24
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	60			—			1			—			—			—
Sales	(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

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, 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	162			—			—		—			—			—
Sales	(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



	Redeem able Preferred Stock		Other Equity Investments⁽²⁾			GMIB Reinsurance Asset			Separate Accounts Assets			GWBL and Other Features Liability			Contingent Payment Arrangement
	(In Millions)
Balance, January 1, 2016	$	—	$	49		$	10,570		$	313		$	184		31
Total gains (losses), realized and unrealized, included in:
Earnings (loss) as:
Net investment income (loss)	—		—			—			—			—			—
Investment gains (losses), net	—		—			—			19			—			—
Increase (decrease) in the fair value of reinsurance contracts	—		—			(419		)	—			—			—
Policyholders’ benefits	—		—			—			—			(245		)	—
Subtotal	—		—			(419		)	19			(245		)	—
Other comprehensive income (loss)	—		(2		)	—			—			—			—
Purchases ⁽³⁾	1		—			223			10			225			11
Sales ⁽⁴⁾	—		—			(65		)	—			—			—
Settlements ⁽⁵⁾	—		—			—			(7		)	—			(24		)
Activities related to VIEs	—		20			—			—			—			—
Transfers into Level 3⁽¹⁾	—		—			—			1			—			—
Transfers out of Level 3⁽¹⁾	—		(56		)	—			(23		)	—			—
Balance, December 31, 2016	$	1	$	11		$	10,309		$	313		$	164		$	18
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 ⁽³⁾	—		1			228			26			186			—
Sales ⁽⁴⁾	—		(20		)	(42		)	(2		)	—			(11		)
Settlements ⁽⁵⁾	—		—			—			(5		)	—			—
Transfers into Level 3⁽¹⁾	—		—			—			—			—			—
Transfers out of Level 3⁽¹⁾	—		—			—			(2		)	—			—
Balance, December 31, 2015	$	—	$	49		$	10,570		$	313		$	184		$	31



	Redeem able Preferred Stock			Other Equity Investments⁽²⁾			GMIB Reinsurance Asset			Separate Accounts Assets			GWBL and Other Features Liability			Contingent Payment Arrangement
	(In Millions)
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 ⁽³⁾	—			8			225			16			136			9
Sales ⁽⁴⁾	(15		)	(1		)	(35		)	(3		)	—			(5		)
Settlements ⁽⁵⁾	—			—			—			(5		)	—			—
Transfers into Level 3 ⁽¹⁾	—			—			—			—			—			—
Transfers out of Level 3 ⁽¹⁾	—			(2		)	—			—			—			—
Balance, December 31, 2014	$	—		$	61		$	10,711		$	260		$	128		$	42


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


(2)	Includes Level 3 amounts for Trading securities and consolidated VIE investments.


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


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


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

The table below details changes in unrealized gains (losses) for 2016 and 2015 by category for Level 3 assets and liabilities still held at December 31, 2016 and 2015, respectively:



	Earnings (Loss)
	Net Investment Income (Loss)		Investment Gains (Losses), Net		Increase (Decrease) in the Fair Value of Reinsurance Contracts			Policy- holders’ Benefits			OCI
	(In Millions)
Level 3 Instruments
Full Year 2016
Still Held at December 31, 2016
Change in unrealized gains (losses):
Fixed maturities, available-for-sale:
Corporate	$	—	$	—	$	—		$	—		$	11
State and political subdivisions	—		—		—			—			(1		)
Commercial mortgage-backed	—		—		—			—			9
Asset-backed	—		—		—			—			1
Other fixed maturities, available-for-sale	—		—		—			—			—
Subtotal	$	—	$	—	$	—		$	—		$	20
GMIB reinsurance contracts	—		—		(261		)	—			—
Separate Accounts’ assets⁽¹⁾	—		20		—			—			—
GWBL and other features’ liability	—		—		—			(20		)	—
Total	$	—	$	20	$	(261	)	$	(20	)	$	20
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⁽¹⁾	—		36		—			—			—
GWBL and other features’ liability	—		—		—			184			—
Total	$	—	$	36	$	(141	)	$	184		$	30

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, 2016 and 2015, respectively.

Quantitative Information about Level 3 Fair Value Measurements

December 31, 2016



	Fair Value		Valuation Technique	Significant Unobservable Input	Range
Assets:	(In Millions)
Investments:
Fixed maturities, available-for-sale:
Corporate	$	55	Matrix pricing model	Spread over the industry-specific benchmark yield curve	0 bps - 565 bps
	636		Market comparable companies	EBITDA multiples Discount rate Cash flow Multiples	4.3x - 25.6x 7.0% - 17.8% 14.0x - 16.5x
Asset-backed	2		Matrix pricing model	Spread over U.S. Treasury curve	25 bps - 687 bps
Separate Accounts’ assets	295		Third party appraisal	Capitalization rate Exit capitalization rate Discount rate	4.8% 5.7% 6.6%
	3		Discounted cash flow	Spread over U.S. Treasury curve Discount factor	273 bps - 512 bps 1.1% - 7.0%
GMIB reinsurance contract asset	10,309		Discounted cash flow	Lapse Rates Withdrawal rates GMIB Utilization Rates Non-performance risk Volatility rates—Equity	1.5% - 5.7% 0.0% - 8.0% 0.0% - 16.0% 5 bps - 17 bps 11.0% - 38.0%
Liabilities:
GWBL and other features liability	164		Discounted cash flow	Lapse Rates Withdrawal rates Volatility rates—Equity	1.0% - 11.0% 0.0% - 8.0% 11.0% - 38.0%

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 Marketable 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 contract asset	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:
GWBL and other features liability	120		Discounted cash flow	Lapse Rates Withdrawal rates Volatility rates - Equity	1.0% - 5.7% 0.0% - 7.0% 9% - 35%

Fair Value Disclosure Financial Instruments Not Carried At Fair Value

The carrying values and fair values at December 31, 2016 and 2015 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, 2016:
Mortgage loans on real estate	$	9,757	$	—	$	—	$	9,608	$	9,608
Loans to affiliates	703		—		775		—		775
Policyholders liabilities: Investment contracts	2,226		—		—		2,337		2,337
Funding Agreements	2,255		—		2,202		—		2,202
Policy loans	3,361		—		—		4,257		4,257
Short-term debt	513		—		513		—		513
Separate Account Liabilities	6,194		—		—		6,194		6,194
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	7,325		—		—		7,430		7,430
Funding Agreements	500		—		500		—		500
Policy loans	3,393		—		—		4,343		4,343
Short-term debt	584		—		584		—		584
Separate Account Liabilities	5,124		—		—		5,124		5,124