The following table provides information relating to fixed maturities and equity securities classified as AFS:

Available-for-Sale Securities by Classification


					Gross		Gross
			Amortized		Unrealized		Unrealized		Fair		OTTI
			Cost		Gains		Losses		Value		in AOCI ⁽³⁾

			(In Millions)
June 30, 2012:
Fixed Maturities:
	Corporate		$	20,717	$	2,073	$	71	$	22,719	$	0
	U.S. Treasury, government and agency			4,600		540		0		5,140		0
	States and political subdivisions			448		79		1		526		0
	Foreign governments			451		71		0		522		0
	Commercial mortgage-backed			1,231		10		335		906		13
	Residential mortgage-backed⁽¹⁾			1,713		87		0		1,800		0
	Asset-backed⁽²⁾			223		11		8		226		5
	Redeemable preferred stock			1,187		46		61		1,172		0
		Total Fixed Maturities		30,570		2,917		476		33,011		18

Equity securities				19		1		0		20		0

Total at June 30, 2012			$	30,589	$	2,918	$	476	$	33,031	$	18

December 31, 2011:
Fixed Maturities:
	Corporate		$	21,444	$	1,840	$	147	$	23,137	$	0
	U.S. Treasury, government and agency			3,598		350		0		3,948		0
	States and political subdivisions			478		64		2		540		0
	Foreign governments			461		65		1		525		0
	Commercial mortgage-backed			1,306		7		411		902		22
	Residential mortgage-backed⁽¹⁾			1,556		90		0		1,646		0
	Asset-backed⁽²⁾			260		15		11		264		6
	Redeemable preferred stock			1,106		38		114		1,030		0
		Total Fixed Maturities		30,209		2,469		686		31,992		28

Equity securities				18		1		0		19		0

Total at December 31, 2011			$	30,227	$	2,470	$	686	$	32,011	$	28

At June 30, 2012 and December 31, 2011, respectively, the Company had trading fixed maturities with an amortized cost of $255 million and $172 million and carrying values of $255 million and $172 million. Gross unrealized gains on trading fixed maturities were $4 million and $4 million and gross unrealized losses were $4 million and $4 million at June 30, 2012 and December 31, 2011, respectively.

The contractual maturities of AFS fixed maturities (excluding redeemable preferred stock) at June 30, 2012 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Available-for-Sale Fixed Maturities
Contractual Maturities at June 30, 2012

		Amortized Cost		Fair Value

		(In Millions)

Due in one year or less		$	2,460	$	2,495
Due in years two through five			7,290		7,861
Due in years six through ten			9,701		10,708
Due after ten years			6,765		7,843
	Subtotal		26,216		28,907
Commercial mortgage-backed securities			1,231		906
Residential mortgage-backed securities			1,713		1,800
Asset-backed securities			223		226
Total		$	29,383	$	31,839

The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the second quarter and first six months of 2012 and 2011:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011

	(In Millions)

Proceeds from sales	$	28	$	62	$	28	$	273

Gross gains on sales	$	3	$	2	$	3	$	4
Gross losses on sales	$	(9)	$	0	$	(9)	$	(6)

Total OTTI	$	(50)	$	(23)	$	(53)	$	(23)
Non-credit losses recognized in OCI		1		1		1		1
Credit losses recognized in earnings (loss)	$	(49)	$	(22)	$	(52)	$	(22)

The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts.

	Fixed Maturities - Credit Loss Impairments

		Three Months Ended					Six Months Ended
		June 30,					June 30,
			2012		2011		2012		2011

			(In Millions)

Balances, beginning of period			$	(334)	$	(306)	$	(332)	$	(329)
Previously recognized impairments on securities that matured,
	paid, prepaid or sold			14		0		15		23
Recognized impairments on securities impaired to fair value this period⁽¹⁾				0		0		0		0
Impairments recognized this period on securities not previously impaired				(17)		(22)		(20)		(22)
Additional impairments this period on securities previously impaired				(32)		0		(32)		0
Increases due to passage of time on previously recorded credit losses				0		0		0		0
Accretion of previously recognized impairments due to increases in
	expected cash flows			0		0		0		0
Balances at June 30,			$	(369)	$	(328)	$	(369)	$	(328)

(1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost.

Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated:

Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net earnings (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other:

Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses

											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on				Policyholders		Tax Asset		Investment
			Investments		DAC		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, April 1, 2012			$	(28)	$	1	$	4	$	8	$	(15)
Net investment gains (losses) arising
	during the period			(17)		0		0		0		(17)
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		32		0		0		0		32
		Excluded from Net earnings (loss)⁽¹⁾		(1)		0		0		0		(1)
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		0		0		0		0
		Deferred income taxes		0		0		0		(5)		(5)
		Policyholders liabilities		0		0		(1)		0		(1)
Balance, June 30, 2012			$	(14)	$	1	$	3	$	3	$	(7)

Balance, April 1, 2011			$	(10)	$	2	$	3	$	2	$	(3)
Net investment gains (losses) arising
	during the period			2		0		0		0		2
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		0		0		0		0		0
		Excluded from Net earnings (loss)⁽¹⁾		(1)		0		0		0		(1)
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		(1)		0		0		(1)
		Deferred income taxes		0		0		0		0		0
		Policyholders liabilities		0		0		(1)		0		(1)
Balance, June 30, 2011			$	(9)	$	1	$	2	$	2	$	(4)

(1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.


											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on				Policyholders		Tax Asset		Investment
			Investments		DAC		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, January 1, 2012			$	(47)	$	5	$	6	$	12	$	(24)
Net investment gains (losses) arising
	during the period			2		0		0		0		2
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		32		0		0		0		32
		Excluded from Net earnings (loss)⁽¹⁾		(1)		0		0		0		(1)
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		(4)		0		0		(4)
		Deferred income taxes		0		0		0		(9)		(9)
		Policyholders liabilities		0		0		(3)		0		(3)
Balance, June 30, 2012			$	(14)	$	1	$	3	$	3	$	(7)

Balance, January 1, 2011			$	(16)	$	3	$	2	$	4	$	(7)
Net investment gains (losses) arising
	during the period			8		0		0		0		8
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		0		0		0		0		0
		Excluded from Net earnings (loss)⁽¹⁾		(1)		0		0		0		(1)
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		(2)		0		0		(2)
		Deferred income taxes		0		0		0		(2)		(2)
		Policyholders liabilities		0		0		0		0		0
Balance, June 30, 2011			$	(9)	$	1	$	2	$	2	$	(4)

(1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.

All Other Net Unrealized Investment Gains (Losses) in AOCI

											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on				Policyholders		Tax Asset		Investment
			Investments		DAC		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, April 1, 2012			$	1,789	$	(111)	$	(380)	$	(455)	$	843
Net investment gains (losses) arising
	during the period			644		0		0		0		644
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		22		0		0		0		22
		Excluded from Net earnings (loss)⁽¹⁾		1		0		0		0		1
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		(61)		0		0		(61)
		Deferred income taxes		0		0		0		(204)		(204)
		Policyholders liabilities		0		0		(22)		0		(22)
Balance, June 30, 2012			$	2,456	$	(172)	$	(402)	$	(659)	$	1,223

Balance, April 1, 2011			$	905	$	(106)	$	(114)	$	(240)	$	445
Net investment gains (losses) arising
	during the period			251		0		0		0		251
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		17		0		0		0		17
		Excluded from Net earnings (loss)⁽¹⁾		1		0		0		0		1
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		(29)		0		0		(29)
		Deferred income taxes		0		0		0		(68)		(68)
		Policyholders liabilities		0		0		(46)		0		(46)
Balance, June 30, 2011			$	1,174	$	(135)	$	(160)	$	(308)	$	571

(1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.


											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on				Policyholders		Tax Asset		Investment
			Investments		DAC		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, January 1, 2012			$	1,831	$	(206)	$	(385)	$	(433)	$	807
Net investment gains (losses) arising
	during the period			601		0		0		0		601
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		23		0		0		0		23
		Excluded from Net earnings (loss)⁽¹⁾		1		0		0		0		1
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		34		0		0		34
		Deferred income taxes		0		0		0		(226)		(226)
		Policyholders liabilities		0		0		(17)		0		(17)
Balance, June 30, 2012			$	2,456	$	(172)	$	(402)	$	(659)	$	1,223

Balance, January 1, 2011			$	889	$	(108)	$	(121)	$	(232)	$	428
Net investment gains (losses) arising
	during the period			267		0		0		0		267
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		17		0		0		0		17
		Excluded from Net earnings (loss)⁽¹⁾		1		0		0		0		1
Impact of net unrealized investment
	gains (losses) on:
		DAC		0		(27)		0		0		(27)
		Deferred income taxes		0		0		0		(76)		(76)
		Policyholders liabilities		0		0		(39)		0		(39)
Balance, June 30, 2011			$	1,174	$	(135)	$	(160)	$	(308)	$	571

(1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.

The following tables disclose the fair values and gross unrealized losses of the 358 issues at June 30, 2012 and the 535 issues at December 31, 2011 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

			Less Than 12 Months				12 Months or Longer				Total
					Gross				Gross				Gross
					Unrealized				Unrealized				Unrealized
			Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

			(In Millions)
June 30, 2012:
Fixed Maturities:
	Corporate		$	661	$	(23)	$	486	$	(48)	$	1,147	$	(71)
	U.S. Treasury, government
		and agency		0		0		0		0		0		0
	States and political subdivisions			0		0		19		(1)		19		(1)
	Foreign governments			1		0		2		0		3		0
	Commercial mortgage-backed			64		(4)		789		(331)		853		(335)
	Residential mortgage-backed			131		0		1		0		132		0
	Asset-backed			0		0		42		(8)		42		(8)
	Redeemable preferred stock			16		0		508		(61)		524		(61)

Total			$	873	$	(27)	$	1,847	$	(449)	$	2,720	$	(476)

December 31, 2011:
Fixed Maturities:
Corporate			$	1,910	$	(96)	$	389	$	(51)	$	2,299	$	(147)
	U.S. Treasury, government
		and agency		149		0		0		0		149		0
	States and political subdivisions			0		0		18		(2)		18		(2)
	Foreign governments			30		(1)		5		0		35		(1)
	Commercial mortgage-backed			79		(27)		781		(384)		860		(411)
	Residential mortgage-backed			0		0		1		0		1		0
	Asset-backed			49		0		44		(11)		93		(11)
	Redeemable preferred stock			341		(28)		325		(86)		666		(114)

Total			$	2,558	$	(152)	$	1,563	$	(534)	$	4,121	$	(686)

The Company's investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of AXA Equitable, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.3% of total investments. The largest exposures to a single issuer of corporate securities held at June 30, 2012 and December 31, 2011 were $139 million and $139 million, respectively. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At June 30, 2012 and December 31, 2011, respectively, approximately $2,266 million and $2,179 million, or 7.4% and 7.2%, of the $30,570 million and $30,209 million aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had net unrealized losses of $361 million and $455 million at June 30, 2012 and December 31, 2011, respectively.

The Company does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. The Company's fixed maturity investment portfolio includes RMBS backed by subprime and Alt-A residential mortgages, comprised of loans made by banks or mortgage lenders to residential borrowers with lower credit ratings. The criteria used to categorize such subprime borrowers include FICO scores, interest rates charged, debt-to-income ratios and loan-to-value ratios. Alt-A residential mortgages are mortgage loans where the risk profile falls between prime and subprime; borrowers typically have clean credit histories but the mortgage loan has an increased risk profile due to higher loan-to-value and debt-to-income ratios and/or inadequate documentation of the borrowers' income. At June 30, 2012 and December 31, 2011, respectively, the Company owned $20 million and $23 million in RMBS backed by subprime residential mortgage loans and $12 million and $13 million in RMBS backed by Alt-A residential mortgage loans. RMBS backed by subprime and Alt-A residential mortgages are fixed income investments supporting General Account liabilities.

At June 30, 2012, the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $14 million.

For the second quarter and first six months of 2012 and 2011, investment income is shown net of investment expenses of $13 million, $26 million, $8 million and $25 million, respectively.

At June 30, 2012 and December 31, 2011, respectively, the amortized cost of the Company's trading account securities was $1,503 million and $1,014 million with respective fair values of $1,527 million and $982 million. Also at June 30, 2012 and December 31, 2011, respectively, Other equity investments included the General Account's investment in Separate Accounts which had carrying values of $50 million and $48 million and costs of $50 million and $50 million as well as other equity securities with carrying values of $20 million and $19 million and costs of $19 million and $18 million.

In the second quarter and first six months of 2012 and 2011, respectively, net unrealized and realized holding gains (losses) on trading account equity securities, including earnings (loss) on the General Account's investment in Separate Accounts, of $(16) million, $32 million, $(5) million and $9 million, respectively, were included in Net investment income (loss) in the consolidated statements of earnings (loss).

Mortgage loans on real estate are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans on real estate are classified as nonaccrual loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely. At June 30, 2012 and December 31, 2011, the carrying values of commercial and agricultural mortgage loans on real estate that had been classified as nonaccrual loans were $0 million and $52 million for commercial and $4 million and $5 million for agricultural, respectively.

At June 30, 2012, there was one loan considered a Troubled Debt Restructuring (“TDR”). The loan shown in the table below was modified during third quarter 2011. The modification lowered existing interest only payments until October 1, 2013, at which time the loan reverts to an amortizing payment. All interest deferred under the modification is due at maturity on November 5, 2014. Due to the nature of the modification, short-term cash flow relief, the modification has no financial impact. The fair market value of the underlying real estate collateral is the primary factor in determining the allowance for credit losses and as such, modification of loan terms typically has no direct impact on the allowance for credit losses.

Troubled Debt Restructuring - Modifications

		Number		Outstanding Recorded Investment
		of Loans		Pre-Modification		Post - Modification

June 30, 2012				(In Millions)
Troubled debt restructurings:
	Agricultural mortgage loans		0	$	0	$	0
	Commercial mortgage loans		1		84		84
Total			1	$	84	$	84

There were no default payments on the above loan during the second quarter and first six months of 2012.

Allowance for credit losses for commercial mortgage loans for the first six months of 2012 and 2011 are as follows:

		2012		2011

Allowance for credit losses:		(In Millions)

Beginning balance, January 1,		$	32	$	18
	Charge-offs		(20)		0
	Recoveries		(1)		0
	Provision		23		10
Ending balance, June 30,		$	34	$	28

Ending balance, June 30,:
	Individually Evaluated for Impairment	$	34	$	28

	Collectively Evaluated for Impairment	$	0	$	0

	Loans Acquired with Deteriorated Credit Quality	$	0	$	0

There were no allowances for credit losses for agricultural mortgage loans for the first six months of 2012 and 2011.

The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. The following tables provide information relating to the debt service coverage ratio for commercial and agricultural mortgage loans at June 30, 2012 and December 31, 2011.

Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios
June 30, 2012

		Debt Service Coverage Ratio
												Less		Total
		Greater		1.8x to		1.5x to		1.2x to		1.0x to		than		Mortgage
Loan-to-Value Ratio:⁽²⁾		than 2.0x		2.0x		1.8x		1.5x		1.2x		1.0x		Loans

		(In Millions)
Commercial Mortgage Loans⁽¹⁾
0% - 50%		$	151	$	0	$	6	$	1	$	28	$	0	$	186
50% - 70%			452		163		652		412		0		0		1,679
70% - 90%			0		41		187		466		138		15		847
90% plus			0		0		69		195		81		165		510
Total Commercial
	Mortgage Loans	$	603	$	204	$	914	$	1,074	$	247	$	180	$	3,222

Agricultural Mortgage Loans⁽¹⁾
0% - 50%		$	159	$	94	$	180	$	249	$	190	$	11	$	883
50% - 70%			94		25		117		179		85		51		551
70% - 90%			0		0		0		1		2		8		11
90% plus			0		0		0		0		0		0		0
Total Agricultural
	Mortgage Loans	$	253	$	119	$	297	$	429	$	277	$	70	$	1,445

Total Mortgage Loans⁽¹⁾
0% - 50%		$	310	$	94	$	186	$	250	$	218	$	11	$	1,069
50% - 70%			546		188		769		591		85		51		2,230
70% - 90%			0		41		187		467		140		23		858
90% plus			0		0		69		195		81		165		510

Total Mortgage Loans		$	856	$	323	$	1,211	$	1,503	$	524	$	250	$	4,667

Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios
December 31, 2011

		Debt Service Coverage Ratio
												Less		Total
		Greater		1.8x to		1.5x to		1.2x to		1.0x to		than		Mortgage
Loan-to-Value Ratio:⁽²⁾		than 2.0x		2.0x		1.8x		1.5x		1.2x		1.0x		Loans

		(In Millions)
Commercial Mortgage Loans⁽¹⁾
0% - 50%		$	182	$	0	$	33	$	30	$	31	$	0	$	276
50% - 70%			201		252		447		271		45		0		1,216
70% - 90%			0		41		280		318		213		0		852
90% plus			0		0		84		135		296		117		632
Total Commercial
	Mortgage Loans	$	383	$	293	$	844	$	754	$	585	$	117	$	2,976

Agricultural Mortgage Loans⁽¹⁾
0% - 50%		$	150	$	89	$	175	$	247	$	190	$	8	$	859
50% - 70%			68		15		101		158		82		45		469
70% - 90%			0		0		0		1		0		8		9
90% plus			0		0		0		0		0		0		0
Total Agricultural
	Mortgage Loans	$	218	$	104	$	276	$	406	$	272	$	61	$	1,337

Total Mortgage Loans⁽¹⁾
0% - 50%		$	332	$	89	$	208	$	277	$	221	$	8	$	1,135
50% - 70%			269		267		548		429		127		45		1,685
70% - 90%			0		41		280		319		213		8		861
90% plus			0		0		84		135		296		117		632

Total Mortgage Loans		$	601	$	397	$	1,120	$	1,160	$	857	$	178	$	4,313

The following table provides information relating to the aging analysis of past due mortgage loans at June 30, 2012 and December 31, 2011, respectively.

Age Analysis of Past Due Mortgage Loans

														Recorded
														Investment
						90						Total		> 90 Days
		30-59		60-89		Days						Financing		and
		Days		Days		or >		Total		Current		Receivables		Accruing

								(In Millions)
June 30, 2012
	Commercial	$	0	$	0	$	0	$	0	$	3,222	$	3,222	$	0
	Agricultural		4		2		13		19		1,426		1,445		0
Total Mortgage Loans		$	4	$	2	$	13	$	19	$	4,648	$	4,667	$	0

December 31, 2011
	Commercial	$	61	$	0	$	0	$	61	$	2,915	$	2,976	$	0
	Agricultural		5		1		7		13		1,324		1,337		3
Total Mortgage Loans		$	66	$	1	$	7	$	74	$	4,239	$	4,313	$	3

The following table provides information regarding impaired mortgage loans at June 30, 2012 and December 31, 2011, respectively.

Impaired Mortgage Loans

				Unpaid				Average		Interest
		Recorded		Principal		Related		Recorded		Income
		Investment		Balance		Allowance		Investment⁽¹⁾		Recognized

		(In Millions)
June 30, 2012:
With no related allowance recorded:
	Commercial mortgage loans - other	$	0	$	0	$	0	$	0	$	0
	Agricultural mortgage loans		4		4		0		4		0
Total		$	4	$	4	$	0	$	4	$	0

With related allowance recorded:
	Commercial mortgage loans - other	$	170	$	170	$	(34)	$	175	$	2
	Agricultural mortgage loans		0		0		0		0		0
Total		$	170	$	170	$	(34)	$	175	$	2

December 31, 2011:
With no related allowance recorded:
	Commercial mortgage loans - other	$	0	$	0	$	0	$	0	$	0
	Agricultural mortgage loans		5		5		0		5		0
Total		$	5	$	5	$	0	$	5	$	0

With related allowance recorded:
	Commercial mortgage loans - other	$	202	$	202	$	(32)	$	152	$	8
	Agricultural mortgage loans		0		0		0		0		0
Total		$	202	$	202	$	(32)	$	152	$	8

The Company has issued and continues to offer certain variable annuity products with GMDB, GMIB, guaranteed withdrawal benefit for life (“GWBL”) and guaranteed income benefits (“GIB”) features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders' account balances would support. The risk associated with the GMIB/GWBL/GIB feature is that under-performance of the financial markets could result in GMIB/GWBL/GIB benefits being higher than what accumulated policyholders' account balances would support. The Company uses derivatives for asset/liability risk management primarily to reduce exposures to equity market and interest rate fluctuations. Derivative hedging strategies are designed to reduce these risks from an economic perspective while also considering their impacts on accounting results. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, market volatility and interest rates.

A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits' exposures attributable to movements in the equity and fixed income markets. For GMDB, GMIB, GWBL and GIB, the Company retains certain risks including basis and some volatility risk and risk associated with actual versus expected assumptions for mortality, lapse and surrender, withdrawal and contractholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMDB, GMIB, GWBL and GIB features that result from financial markets movements. A portion of exposure to realized interest rate volatility is hedged using swaptions and a portion of exposure to realized equity volatility is hedged using equity options and variance swaps. The Company has purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company.

GWBL/GIB features and reinsurance contracts covering GMIB exposure are considered derivatives for accounting purposes and, therefore, are reported in the balance sheet at their fair value. None of the derivatives used in these programs were designated as qualifying hedges under U.S. GAAP accounting guidance for derivatives and hedging. All gains (losses) on derivatives are reported in Net investment income (loss) in the consolidated statements of earnings (loss) except those resulting from changes in the fair values of the embedded derivatives, the GWBL/GIB features are reported in Policyholder's benefits and the GMIB reinsurance contracts are reported on a separate line in the consolidated statement of earnings, respectively.

In addition to the Company's existing programs, in first quarter 2012, the Company entered into interest rate swaps related to the Company's GMDB and GMIB block of business issued prior to 2001 to manage exposure to interest rate fluctuations.

The table below presents quantitative disclosures about the Company's derivative instruments, including those embedded in other contracts though required to be accounted for as derivative instruments.

	Derivative Instruments by Category

									Gains (Losses)
			At June 30, 2012						Reported In Net
					Fair Value				Earnings (Loss)
			Notional		Asset		Liability		Six Months Ended
			Amount		Derivatives		Derivatives		June 30, 2012

			(In Millions)

Freestanding derivatives:
Equity contracts:⁽¹⁾
	Futures		$	6,836	$	0	$	4	$	(560)
	Swaps			1,083		9		81		(137)
	Options			2,526		250		151		11

Interest rate contracts:⁽¹⁾
	Floors			2,700		315		0		42
	Swaps			16,836		740		469		354
	Futures			14,945		0		0		147
	Swaptions			9,321		937		0		100

Other freestanding contracts:⁽¹⁾
	Foreign currency contracts			297		0		1		1
		Net investment income (loss)								(42)

Embedded derivatives:
GMIB reinsurance contracts				0		11,381		0		834

GWBL and other features⁽²⁾				0		0		334		(43)

Total, June 30, 2012			$	54,544	$	13,632	$	1,040	$	749


									Gains (Losses)
			At December 31, 2011						Reported In Net
					Fair Value				Earnings (Loss)
			Notional		Asset		Liability		Six Months Ended
			Amount		Derivatives		Derivatives		June 30, 2011

			(In Millions)

Freestanding derivatives:
Equity contracts:⁽¹⁾
	Futures		$	6,443	$	0	$	2	$	(282)
	Swaps			784		10		21		(30)
	Options			1,211		92		85		3

Interest rate contracts:⁽¹⁾
	Floors			3,000		327		0		47
	Swaps			9,826		503		317		72
	Futures			11,983		0		0		6
	Swaptions			7,354		1,029		0		93

Other freestanding contracts:⁽¹⁾
	Foreign currency contracts			38		0		0		0
		Net investment income (loss)								(91)

Embedded derivatives:
GMIB reinsurance contracts				0		10,547		0		(239)

GWBL and other features⁽²⁾				0		0		291		32

Total			$	40,639	$	12,508	$	716	$	(298)

The Company periodically, including during the first six months of 2012, has had in place a hedge program to partially protect against declining interest rates with respect to a part of its projected variable annuity sales.

The Company also uses equity and commodity indexed options to hedge its exposure to equity linked and commodity indexed crediting rates on annuity and life products.

Margins or “spreads” on interest-sensitive life insurance and annuity contracts are affected by interest rate fluctuations as the yield on portfolio investments, primarily fixed maturities, are intended to support required payments under these contracts, including interest rates credited to their policy and contract holders. The Company currently uses swaptions to reduce the risk associated with minimum crediting rate guarantees on these interest-sensitive contracts.

The Company is exposed to equity market fluctuations through investments in Separate Accounts and has entered into derivative contracts specifically to minimize such risk.

In second quarter 2012, the Company entered into futures and total return swaps on equity indices to mitigate the impact on net earnings from Separate Account fee revenue fluctuations due to movements in the equity markets. These positions cover fees expected to be earned through December of the current year from the Company's Separate Account products.

At June 30, 2012, the Company had open exchange-traded futures positions on the S&P 500, Russell 1000, NASDAQ 100 and Emerging Market indices, having initial margin requirements of $330 million. At June 30, 2012, the Company had open exchange-traded futures positions on the 2-year, 5-year, 10-year, 30-year U.S. Treasury Notes and Eurodollars having initial margin requirements of $121 million. At that same date, the Company had open exchange-traded future positions on the Euro Stoxx, FTSE 100, EAFE and Topix indices as well as corresponding currency futures on the Euro/U.S. dollar, Yen/U.S. dollar and Pound/U.S. dollar, having initial margin requirements of $8 million. All exchange-traded futures contracts are net cash settled daily. All outstanding equity-based and treasury futures contracts at June 30, 2012 are exchange-traded and net settled daily in cash.

Although notional amount is the most commonly used measure of volume in the derivatives market, it is not used as a measure of credit risk. Generally, the current credit exposure of the Company's derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to credit support annexes. A derivative with positive value (a derivative asset) indicates existence of credit risk because the counterparty would owe money to the Company if the contract were closed. Alternatively, a derivative contract with negative value (a derivative liability) indicates the Company would owe money to the counterparty if the contract were closed. However, generally if there is more than one derivative transaction with a single counterparty, a master netting arrangement exists with respect to derivative transactions with that counterparty to provide for net settlement.

The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. The Company controls and minimizes its counterparty exposure through a credit appraisal and approval process. In addition, the Company has executed various collateral arrangements with counterparties to over-the-counter derivative transactions that require both pledging and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities or those issued by government agencies. At June 30, 2012 and December 31, 2011, respectively, the Company held $1,691 million and $1,438 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. This unrestricted cash collateral is reported in Cash and cash equivalents, and the obligation to return it is reported in Other liabilities in the consolidated balance sheets.

Certain of the Company's standardized contracts for over-the-counter derivative transactions (“ISDA Master Agreements”) contain credit risk related contingent provisions related to its credit rating. In some ISDA Master Agreements, if the credit rating falls below a specified threshold, either a default or a termination event permitting the counterparty to terminate the ISDA Master Agreement would be triggered. In all agreements that provide for collateralization, various levels of collateralization of net liability positions are applicable, depending upon the credit rating of the counterparty. The aggregate fair value of all collateralized derivative transactions that were in a liability position at June 30, 2012 and December 31, 2011, respectively, were $1 million and $4 million, for which the Company held collateral of $29 million and $3 million at June 30, 2012 and December 31, 2011, respectively, in the normal operation of its collateral arrangements. If the investment grade related contingent features had been triggered on June 30, 2012, the Company would not have been required to post material collateral to its counterparties.