Derivatives (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:

	Primary Underlying Risk Exposure	December 31,
		2017						2016
				Estimated Fair Value						Estimated Fair Value
		Gross Notional Amount		Assets		Liabilities		Gross Notional Amount		Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments
Fair value hedges:
Interest rate swaps	Interest rate	$	175	$	44	$	—	$	310	$	41	$	—
Cash flow hedges:
Interest rate swaps	Interest rate	27		5		—		45		7		—
Foreign currency swaps	Foreign currency exchange rate	1,762		86		75		1,420		186		10
Subtotal		1,789		91		75		1,465		193		10
Total qualifying hedges		1,964		135		75		1,775		234		10
Derivatives Not Designated or Not Qualifying as Hedging Instruments
Interest rate swaps	Interest rate	20,213		922		774		28,175		1,928		1,688
Interest rate floors	Interest rate	—		—		—		2,100		5		2
Interest rate caps	Interest rate	2,671		7		—		12,042		25		—
Interest rate futures	Interest rate	282		1		—		1,288		9		—
Interest rate options	Interest rate	24,600		133		63		15,520		136		—
Interest rate total return swaps	Interest rate	—		—		—		3,876		—		611
Foreign currency swaps	Foreign currency exchange rate	1,103		69		41		1,250		153		4
Foreign currency forwards	Foreign currency exchange rate	130		—		2		158		9		—
Credit default swaps — purchased	Credit	65		—		1		34		—		—
Credit default swaps — written	Credit	1,878		40		—		1,891		28		—
Equity futures	Equity market	2,713		15		—		8,037		38		—
Equity index options	Equity market	47,066		794		1,664		37,501		897		934
Equity variance swaps	Equity market	8,998		128		430		14,894		140		517
Equity total return swaps	Equity market	1,767		—		79		2,855		1		117
Total non-designated or nonqualifying derivatives		111,486		2,109		3,054		129,621		3,369		3,873
Total		$	113,450	$	2,244	$	3,129	$	131,396	$	3,603	$	3,883

Earned Income On Derivatives And Income Statement Location

The following table presents earned income on derivatives:

	Years Ended December 31,
	2017		2016		2015
	(In millions)
Qualifying hedges:
Net investment income	$	21	$	19	$	11
Interest credited to policyholder account balances	—		—		(2		)
Nonqualifying hedges:
Net derivative gains (losses)	314		460		361
Policyholder benefits and claims	8		16		14
Total	$	343	$	495	$	384

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:

	December 31,
	2017					2016
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	12	$	558	2.8	$	9	478		3.6
Baa	28		1,295		4.7	19		1,393		4.4
Ba	—		25		4.5	—		20		2.7
Total	$	40	$	1,878	4.1	$	28	$	1,891	4.2

______________

(1) Includes both single name credit default swaps that may be referenced to the credit of corporations, foreign governments, or state and political subdivisions and credit default swap referencing indices. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

	December 31,
	2017						2016
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	2,222		$	3,080		$	3,394		$	2,929
OTC-cleared and Exchange-traded (1) (6)	69			40			313			905
Total gross estimated fair value of derivatives (1)	2,291			3,120			3,707			3,834
Amounts offset on the consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the consolidated balance sheets (1) (6)	2,291			3,120			3,707			3,834
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(1,942		)	(1,942		)	(2,231		)	(2,231		)
OTC-cleared and Exchange-traded	(1		)	(1		)	(165		)	(165		)
Cash collateral: (3), (4)
OTC-bilateral	(247		)	—			(634		)	—
OTC-cleared and Exchange-traded	(27		)	(39		)	(91		)	(740		)
Securities collateral: (5)
OTC-bilateral	(31		)	(1,138		)	(429		)	(698		)
OTC-cleared and Exchange-traded	—			—			—			—
Net amount after application of master netting agreements and collateral	$	43		$	—		$	157		$	—

______________

(1) At December 31, 2017 and 2016, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $47 million and $104 million, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($9) million and ($49) million, respectively.

(2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2017 and 2016, the Company received excess cash collateral of $93 million and $3 million, respectively, and provided excess cash collateral of $5 million and $25 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2017none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2017 and 2016, the Company received excess securities collateral with an estimated fair value of $337 million and $135 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2017 and 2016, the Company provided excess securities collateral with an estimated fair value of $471 million and $108 million, respectively, for its OTC-bilateral derivatives, $426 million and $630 million, respectively, for its OTC-cleared derivatives, and $118 million and $453 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the CME amendments.

Derivative Instruments, Gain (Loss) [Line Items]

Derivatives, Methods of Accounting, Derivatives Not Designated or Qualifying as Hedges [Policy Text Block]

The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses):

	Year Ended December 31, 2017
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	2		$	(2	)	$	—		$	—		$	—
Total fair value hedges	2			(2		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	—			—			6			—			1
Foreign currency exchange rate derivatives	8			(9		)	—			—			(153		)
Total cash flow hedges	8			(9		)	6			—			(152		)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(325		)	—			—			8			—
Foreign currency exchange rate derivatives	(98		)	(32		)	—			—			—
Credit derivatives	21			—			—			—			—
Equity derivatives	(2,584		)	—			(1		)	(341		)	—
Embedded derivatives	1,237			—			—			(16		)	—
Total non-qualifying hedges	(1,749		)	(32		)	(1		)	(349		)	—
Total	$	(1,739	)	$	(43	)	$	5		$	(349	)	$	(152	)

	Year Ended December 31, 2016
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	1		$	(1	)	$	—		$	—		$	—
Total fair value hedges	1			(1		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	35			—			5			—			28
Foreign currency exchange rate derivatives	3			(2		)	—			—			42
Total cash flow hedges	38			(2		)	5			—			70
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(2,873		)	—			—			(4		)	—
Foreign currency exchange rate derivatives	76			(14		)	—			—			—
Credit derivatives	10			—			—			—			—
Equity derivatives	(1,724		)	—			(6		)	(320		)	—
Embedded derivatives	(1,741		)	—			—			(4		)	—
Total non-qualifying hedges	(6,252		)	(14		)	(6		)	(328		)	—
Total	$	(6,213	)	$	(17	)	$	(1	)	$	(328	)	$	70

	Year Ended December 31, 2015
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	3		$	(1	)	$	—		$	—		$	—
Total fair value hedges	3			(1		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	3			—			3			—			16
Foreign currency exchange rate derivatives	—			1			—			—			79
Total cash flow hedges	3			1			3			—			95
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(67		)	—			—			5			—
Foreign currency exchange rate derivatives	44			(7		)	—			—			—
Credit derivatives	(14		)	—			—			—			—
Equity derivatives	(476		)	—			(4		)	(25		)	—
Embedded derivatives	(344		)	—			—			21			—
Total non-qualifying hedges	(857		)	(7		)	(4		)	1			—
Total	$	(851	)	$	(7	)	$	(1	)	$	1		$	95

______________

(1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant.

(2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. Hedged items in fair value hedging relationship includes fixed rate liabilities reported in policyholder account balances or future policy benefits and fixed maturity securities.

(3) Includes changes in estimated fair value related to economic hedges of equity method investments in joint ventures and gains (losses) reclassified from AOCI for cash flow hedges.

(4) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

(5) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness.

Components of Net Derivatives Gains (Losses)

The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses):

	Year Ended December 31, 2017
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	2		$	(2	)	$	—		$	—		$	—
Total fair value hedges	2			(2		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	—			—			6			—			1
Foreign currency exchange rate derivatives	8			(9		)	—			—			(153		)
Total cash flow hedges	8			(9		)	6			—			(152		)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(325		)	—			—			8			—
Foreign currency exchange rate derivatives	(98		)	(32		)	—			—			—
Credit derivatives	21			—			—			—			—
Equity derivatives	(2,584		)	—			(1		)	(341		)	—
Embedded derivatives	1,237			—			—			(16		)	—
Total non-qualifying hedges	(1,749		)	(32		)	(1		)	(349		)	—
Total	$	(1,739	)	$	(43	)	$	5		$	(349	)	$	(152	)

	Year Ended December 31, 2016
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	1		$	(1	)	$	—		$	—		$	—
Total fair value hedges	1			(1		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	35			—			5			—			28
Foreign currency exchange rate derivatives	3			(2		)	—			—			42
Total cash flow hedges	38			(2		)	5			—			70
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(2,873		)	—			—			(4		)	—
Foreign currency exchange rate derivatives	76			(14		)	—			—			—
Credit derivatives	10			—			—			—			—
Equity derivatives	(1,724		)	—			(6		)	(320		)	—
Embedded derivatives	(1,741		)	—			—			(4		)	—
Total non-qualifying hedges	(6,252		)	(14		)	(6		)	(328		)	—
Total	$	(6,213	)	$	(17	)	$	(1	)	$	(328	)	$	70

	Year Ended December 31, 2015
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	3		$	(1	)	$	—		$	—		$	—
Total fair value hedges	3			(1		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	3			—			3			—			16
Foreign currency exchange rate derivatives	—			1			—			—			79
Total cash flow hedges	3			1			3			—			95
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(67		)	—			—			5			—
Foreign currency exchange rate derivatives	44			(7		)	—			—			—
Credit derivatives	(14		)	—			—			—			—
Equity derivatives	(476		)	—			(4		)	(25		)	—
Embedded derivatives	(344		)	—			—			21			—
Total non-qualifying hedges	(857		)	(7		)	(4		)	1			—
Total	$	(851	)	$	(7	)	$	(1	)	$	1		$	95

______________

(1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant.

(2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. Hedged items in fair value hedging relationship includes fixed rate liabilities reported in policyholder account balances or future policy benefits and fixed maturity securities.

(3) Includes changes in estimated fair value related to economic hedges of equity method investments in joint ventures and gains (losses) reclassified from AOCI for cash flow hedges.

(4) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

(5) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness.

Schedule of Derivative Instruments

	December 31,
	2017		2016
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	1,138	$	698
Estimated Fair Value of Collateral Provided:
Fixed maturity securities	$	1,414	$	777

______________

(1) After taking into consideration the existence of netting agreements.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses):

	Year Ended December 31, 2017
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	2		$	(2	)	$	—		$	—		$	—
Total fair value hedges	2			(2		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	—			—			6			—			1
Foreign currency exchange rate derivatives	8			(9		)	—			—			(153		)
Total cash flow hedges	8			(9		)	6			—			(152		)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(325		)	—			—			8			—
Foreign currency exchange rate derivatives	(98		)	(32		)	—			—			—
Credit derivatives	21			—			—			—			—
Equity derivatives	(2,584		)	—			(1		)	(341		)	—
Embedded derivatives	1,237			—			—			(16		)	—
Total non-qualifying hedges	(1,749		)	(32		)	(1		)	(349		)	—
Total	$	(1,739	)	$	(43	)	$	5		$	(349	)	$	(152	)

	Year Ended December 31, 2016
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	1		$	(1	)	$	—		$	—		$	—
Total fair value hedges	1			(1		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	35			—			5			—			28
Foreign currency exchange rate derivatives	3			(2		)	—			—			42
Total cash flow hedges	38			(2		)	5			—			70
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(2,873		)	—			—			(4		)	—
Foreign currency exchange rate derivatives	76			(14		)	—			—			—
Credit derivatives	10			—			—			—			—
Equity derivatives	(1,724		)	—			(6		)	(320		)	—
Embedded derivatives	(1,741		)	—			—			(4		)	—
Total non-qualifying hedges	(6,252		)	(14		)	(6		)	(328		)	—
Total	$	(6,213	)	$	(17	)	$	(1	)	$	(328	)	$	70

	Year Ended December 31, 2015
	Net Derivative Gains (Losses) Recognized for Derivatives (1)			Net Derivatives Gains (Losses) Recognized for Hedged Items (2)			Net Investment Income (3)			Policyholder Benefits and Claims (4)			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges (5):
Interest rate derivatives	$	3		$	(1	)	$	—		$	—		$	—
Total fair value hedges	3			(1		)	—			—			—
Cash flow hedges (5):
Interest rate derivatives	3			—			3			—			16
Foreign currency exchange rate derivatives	—			1			—			—			79
Total cash flow hedges	3			1			3			—			95
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(67		)	—			—			5			—
Foreign currency exchange rate derivatives	44			(7		)	—			—			—
Credit derivatives	(14		)	—			—			—			—
Equity derivatives	(476		)	—			(4		)	(25		)	—
Embedded derivatives	(344		)	—			—			21			—
Total non-qualifying hedges	(857		)	(7		)	(4		)	1			—
Total	$	(851	)	$	(7	)	$	(1	)	$	1		$	95

______________

(1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant.

(2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. Hedged items in fair value hedging relationship includes fixed rate liabilities reported in policyholder account balances or future policy benefits and fixed maturity securities.

(3) Includes changes in estimated fair value related to economic hedges of equity method investments in joint ventures and gains (losses) reclassified from AOCI for cash flow hedges.

(4) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

(5) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness.

Embedded Derivative Financial Instruments [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Components of Net Derivatives Gains (Losses)

The following table presents changes in estimated fair value related to embedded derivatives:

	Years Ended December 31,
	2017			2016			2015
	(In millions)
Net derivative gains (losses) (1), (2)	$	1,237		$	(1,741	)	$	(344	)
Policyholder benefits and claims	$	(16	)	$	(4	)	$	21

______________

(1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $337 million, $244 million and $26 million for the years ended December 31, 2017, 2016 and 2015, respectively.

(2) See Note 6 for discussion of related party net derivative gains (losses).

Schedule of Derivative Instruments

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:

		December 31,
	Balance Sheet Location	2017			2016
		(In millions)
Embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	227		$	409
Options embedded in debt or equity securities	Investments	(52		)	(49		)
Embedded derivatives within asset host contracts		$	175		$	360
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	1,122		$	2,237
Assumed reinsurance on fixed deferred annuities	Policyholder account balances	1			—
Assumed guaranteed minimum benefits	Policyholder account balances	437			741
Fixed annuities with equity indexed returns	Policyholder account balances	674			192
Embedded derivatives within liability host contracts		$	2,234		$	3,170