Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

The assets and liabilities measured at estimated fair value on a recurring basis, including those items for which the Company has elected the FVO, were determined as described below. These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows:

			September 30, 2012
			Fair Value Measurements at Reporting Date Using
			Quoted Prices in
			Active Markets for		Significant Other		Significant		Total
			Identical Assets		Observable		Unobservable		Estimated
			and Liabilities		Inputs		Inputs		Fair
			(Level 1)		(Level 2)		(Level 3)		Value
			(In millions)

Assets:
Fixed maturity securities:
	U.S. corporate securities		$	0	$	17,235	$	1,572	$	18,807
	U.S. Treasury and agency securities			5,742		4,292		0		10,034
	Foreign corporate securities			0		8,284		735		9,019
	RMBS			0		5,902		252		6,154
	CMBS			0		2,302		159		2,461
	State and political subdivision securities			0		2,284		25		2,309
	ABS			0		1,983		293		2,276
	Foreign government securities			0		1,423		2		1,425
		Total fixed maturity securities		5,742		43,705		3,038		52,485
Equity securities:
	Common stock			56		72		23		151
	Non-redeemable preferred stock			0		46		92		138
		Total equity securities		56		118		115		289
Other securities:
	FVO general account securities			0		8		0		8
	FVO contractholder-directed unit-linked investments (1)			0		0		0		0
		Total other securities		0		8		0		8
Short-term investments (2)				792		1,014		66		1,872
Mortgage loans held by CSEs				0		2,879		0		2,879
Derivative assets: (3)
	Interest rate			0		1,783		168		1,951
	Foreign currency exchange rate			0		85		0		85
	Credit			0		11		10		21
	Equity market			6		451		15		472
		Total derivative assets		6		2,330		193		2,529
Net embedded derivatives within asset host contracts (4)				0		0		2,583		2,583
Separate account assets (5)				215		84,180		148		84,543
		Total assets	$	6,811	$	134,234	$	6,143	$	147,188

Liabilities:
Derivative liabilities: (3)
	Interest rate		$	1	$	737	$	26	$	764
	Foreign currency exchange rate			0		62		0		62
	Credit			0		4		0		4
	Equity market			0		0		46		46
		Total derivative liabilities		1		803		72		876
Net embedded derivatives within liability host contracts (4)				0		0		1,284		1,284
Long-term debt of CSEs				0		2,790		0		2,790
		Total liabilities	$	1	$	3,593	$	1,356	$	4,950

			December 31, 2011
			Fair Value Measurements at Reporting Date Using
			Quoted Prices in
			Active Markets for		Significant Other		Significant		Total
			Identical Assets		Observable		Unobservable		Estimated
			and Liabilities		Inputs		Inputs		Fair
			(Level 1)		(Level 2)		(Level 3)		Value
			(In millions)

Assets:
Fixed maturity securities:
	U.S. corporate securities		$	0	$	15,907	$	1,432	$	17,339
	U.S. Treasury and agency securities			4,326		3,722		0		8,048
	Foreign corporate securities			0		7,913		580		8,493
	RMBS			0		6,255		239		6,494
	CMBS			0		2,080		147		2,227
	State and political subdivision securities			0		2,032		23		2,055
	ABS			0		1,658		220		1,878
	Foreign government securities			0		1,245		2		1,247
		Total fixed maturity securities		4,326		40,812		2,643		47,781
Equity securities:
	Common stock			51		74		21		146
	Non-redeemable preferred stock			0		30		76		106
		Total equity securities		51		104		97		252
Other securities:
	FVO general account securities			0		49		0		49
	FVO contractholder-directed unit-linked investments			3,616		0		0		3,616
		Total other securities		3,616		49		0		3,665
Short-term investments (2)				865		1,684		10		2,559
Mortgage loans held by CSEs				0		3,138		0		3,138
Derivative assets: (3)
	Interest rate			10		1,708		187		1,905
	Foreign currency exchange rate			0		306		0		306
	Credit			0		12		6		18
	Equity market			4		482		51		537
		Total derivative assets		14		2,508		244		2,766
Net embedded derivatives within asset host contracts (4)				0		0		2,815		2,815
Separate account assets (5)				185		72,244		130		72,559
		Total assets	$	9,057	$	120,539	$	5,939	$	135,535

Liabilities:
Derivative liabilities: (3)
	Interest rate		$	1	$	566	$	13	$	580
	Foreign currency exchange rate			0		62		0		62
	Credit			0		21		7		28
	Equity market			0		2		8		10
		Total derivative liabilities		1		651		28		680
Net embedded derivatives within liability host contracts (4)				0		0		1,783		1,783
Long-term debt of CSEs				0		3,065		0		3,065
		Total liabilities	$	1	$	3,716	$	1,811	$	5,528

On behalf of the Company's chief investment officer and chief financial officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a monthly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time and provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the chief accounting officer reports to the audit committee on compliance with fair value accounting standards.

The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management's knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by reviewing such pricing with the Company's knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 0.5% of the total estimated fair value of fixed maturity securities and represent only 8% of the total estimated fair value of Level 3 fixed maturity securities.

The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management's best estimate is used.

When available, the estimated fair value of fixed maturity securities, equity securities, other securities and short-term investments are based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company's securities holdings and valuation of these securities does not involve management's judgment.

When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies for determining the estimated fair value of certain types of securities that trade infrequently, and therefore have little or no price transparency, rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management's judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances.

The estimated fair value of long-term debt of CSEs is determined on a basis consistent with the methodologies described herein for securities.

The use of different methodologies, assumptions and inputs may have a material effect on the estimated fair values of the Company's securities holdings.

This level includes fixed maturity securities and equity securities priced principally by independent pricing services using observable inputs. Other securities and short-term investments within this level are of a similar nature and class to the Level 2 fixed maturity securities and equity securities described below.

These securities are principally valued using the market and income approaches. Valuations are based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Investment grade privately placed securities are valued using discounted cash flow (“DCF”) methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer. This level also includes certain below investment grade privately placed fixed maturity securities priced by independent pricing services that use observable inputs.

These securities are principally valued using the market approach. Valuation is based primarily on quoted prices in markets that are not active or using matrix pricing or other similar techniques using standard market observable inputs such as benchmark U.S. Treasury yield curve, the spread off the U.S. Treasury yield curve for the identical security and comparable securities that are actively traded.

These securities are principally valued using the market approach and income approach. Valuation is based primarily on matrix pricing, DCF methodologies or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information including, but not limited to: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans.

These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market observable inputs including benchmark U.S. Treasury yield or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating.

These securities are principally valued using the market approach where market quotes are available but are not considered actively traded. Valuation is based principally on observable inputs including quoted prices in markets that are not considered active.

In general, fixed maturity securities and equity securities classified within Level 3 use many of the same valuation techniques and inputs as described in Level 2 Measurements. However, if key inputs are unobservable, or if the investments are less liquid and there is very limited trading activity, the investments are generally classified as Level 3. The use of independent non-binding broker quotations to value investments generally indicates there is a lack of liquidity or a lack of transparency in the process to develop the valuation estimates generally causing these investments to be classified in Level 3.

Short-term investments within this level are of a similar nature and class to the Level 3 securities described below; accordingly, the valuation techniques and significant market standard observable inputs used in their valuation are also similar to those described below.

These securities, including financial services industry hybrid securities classified within fixed maturity securities, are principally valued using the market approach. Valuations are based primarily on matrix pricing or other similar techniques that utilize unobservable inputs or inputs that cannot be derived principally from, or corroborated by, observable market data, including illiquidity premium, delta spread adjustments or spreads over below investment grade curves to reflect industry trends or specific credit-related issues; and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain valuations are based on independent non-binding broker quotations.

These securities are principally valued using the market approach and income approach. Valuation is based primarily on matrix pricing, DCF methodologies or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data including spreads over below investment grade curves to reflect industry trends on specific credit-related issues. Below investment grade securities, alternative residential mortgage loan RMBS and RMBS supported by sub-prime mortgage loans included in this level are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain of these valuations are based on independent non-binding broker quotations.

These securities are principally valued using the market approach. Valuation is based primarily on independent non-binding broker quotations and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2.

These securities, including privately held securities and financial services industry hybrid securities classified within equity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, DCF methodologies or other similar techniques using inputs such as comparable credit rating and issuance structure. Certain of these securities are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 and independent non-binding broker quotations.

The Company consolidates certain securitization entities that hold mortgage loans.

These investments are principally valued using the market approach. The principal market for these investments is the securitization market. The Company uses the quoted securitization market price of the obligations of the CSEs to determine the estimated fair value of these commercial loan portfolios. These market prices are determined principally by independent pricing services using observable inputs.

Separate account assets are carried at estimated fair value and reported as a summarized total on the consolidated balance sheets. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets. Assets within the Company's separate accounts include: mutual funds, fixed maturity securities, equity securities, derivatives, other limited partnership interests, short-term investments and cash and cash equivalents.

These assets are comprised of investments that are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs.” Also included are certain mutual funds without readily determinable fair values given prices are not published publicly. Valuation of the mutual funds is based upon quoted prices or reported net asset values (“NAVs”) provided by the fund managers.

These assets are comprised of investments that are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs.” Separate account assets within this level also include other limited partnership interests. Other limited partnership interests are valued giving consideration to the value of the underlying holdings of the partnerships and by applying a premium or discount, if appropriate, for factors such as liquidity, bid/ask spreads, the performance record of the fund manager or other relevant variables which may impact the exit value of the particular partnership interest.

The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for OTC derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation process for derivatives is described above in “— Investments.”

The significant inputs to the pricing models for most OTC derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Significant inputs that are observable generally include: interest rates, foreign currency exchange rates, interest rate curves, credit curves and volatility. However, certain OTC derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant inputs that are unobservable generally include references to emerging market currencies and inputs that are outside the observable portion of the interest rate curve, credit curve, volatility or other relevant market measure. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its derivative positions using the standard swap curve which includes a spread to the risk free rate. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with the standard swap curve. As the Company and its significant derivative counterparties consistently execute trades at such pricing levels, additional credit risk adjustments are not currently required in the valuation process. The Company's ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Most inputs for OTC derivatives are mid-market inputs but, in certain cases, bid level inputs are used when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company's derivatives and could materially affect net income.

This level includes all types of derivative instruments utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivative instruments with unobservable inputs as described in Level 3. These derivatives are principally valued using the income approach.

Non-option-based. — Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and LIBOR basis curves.

Option-based. — Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves and interest rate volatility.

Non-option-based. — Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves, currency spot rates and cross currency basis curves.

Non-option-based. — Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, credit curves and recovery rates.

Non-option-based. — Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, spot equity index levels and dividend yield curves.

Option-based. — Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, spot equity index levels, dividend yield curves and equity volatility.

These derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. These valuation methodologies generally use the same inputs as described in the corresponding sections above for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data.

Non-option-based. — Significant unobservable inputs may include the extrapolation beyond observable limits of the swap yield curve and LIBOR basis curves.

Non-option-based. — Significant unobservable inputs may include credit spreads, repurchase rates and the extrapolation beyond observable limits of the swap yield curve and credit curves. Certain of these derivatives are valued based on independent non-binding broker quotations.

Non-option-based. — Significant unobservable inputs may include the extrapolation beyond observable limits of dividend yield curves and equity volatility.

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees and embedded derivatives related to funds withheld on ceded reinsurance. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The Company issues and assumes certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs are embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within PABs in the consolidated balance sheets.

The fair value of these embedded derivatives, estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior, is calculated by the Company's actuarial department. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk free rates.

Capital market assumptions, such as risk free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance risk adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife's debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income.

The Company assumed, from an affiliated insurance company, the risk associated with certain GMIBs and GMWBs. These embedded derivatives are included in other policy-related balances in the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these assumed risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company.

The Company ceded, to an affiliated reinsurance company, the risk associated with certain of the GMIBs, GMABs and GMWBs described above that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes, to the same affiliated reinsurance company, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables in the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these ceded risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in “— Securities, Short-term Investments and Long-term Debt of CSEs.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities in the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin.

These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and Assumed Guaranteed Minimum Benefits” and also include counterparty credit spreads.

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period.

For assets and liabilities measured at estimated fair value and still held at September 30, 2012, there were no transfers between Levels 1 and 2. Transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at held at December 31, 2011 were not significant.

Transfers into or out of Level 3 are presented in the tables which follow. Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

Transfers into Level 3 for fixed maturity securities and separate account assets were due primarily to a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade) which have resulted in decreased transparency of valuations and an increased use of independent non-binding broker quotations and unobservable inputs to determine estimated fair value.

Transfers out of Level 3 for fixed maturity securities and separate account assets resulted primarily from increased transparency of both new issuances that subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to obtain pricing from, or corroborate pricing received from, independent pricing services with observable inputs or increases in market activity and upgraded credit ratings.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

Valuation

Weighted

Techniques

Significant Unobservable Inputs

Range

Average

Fixed maturity securities:

U.S. corporate and foreign corporate securities

•

Matrix pricing

•

Delta spread adjustments (1)

(100)

–

512

111

•

Illiquidity premium (1)

–

•

Spreads from below investment grade curves (1)

(179)

–

879

267

•

Offered quotes (2)

–

100

•

Market pricing

•

Quoted prices (2)

(48)

–

555

144

•

Consensus pricing

•

Offered quotes (2)

–

600

RMBS

•

Matrix pricing and DCF

•

Spreads from below investment grade curves (1)

–

2,491

529

•

Market pricing

•

Quoted prices (2)

100

–

100

CMBS

•

Matrix pricing and DCF

•

Spreads from below investment grade curves (1)

–

9,069

403

•

Market pricing

•

Quoted prices (2)

100

–

104

102

ABS

•

Matrix pricing and DCF

•

Spreads from below investment grade curves (1)

–

900

202

•

Market pricing

•

Quoted prices (2)

–

102

100

•

Consensus pricing

•

Offered quotes (2)

–

111

Foreign government securities

•

Consensus pricing

•

Offered quotes (2)

116

–

116

Derivatives:

Interest rate

•

Present value techniques

•

Swap yield (1)

227

–

352

Credit

•

Present value techniques

•

Credit spreads (1)

–

100

•

Consensus pricing

•

Offered quotes (3)

Equity market

•

Present value techniques

•

Volatility

16%

–

27%

Embedded derivatives:

Direct and ceded guaranteed minimum benefits

•

Option pricing techniques

•

Mortality rates:

Ages 0 - 40

–

0.10%

Ages 41 - 60

0.05%

–

0.64%

Ages 61 - 115

0.32%

–

100%

•

Lapse rates:

Durations 1 - 10

0.50%

–

100%

Durations 11 - 20

–

100%

Durations 21 - 116

–

100%

•

Utilization rates (4)

20%

–

50%

•

Withdrawal rates

0.07%

–

10%

•

Long-term equity volatilities

17.40%

–

25%

•

Nonperformance risk spread

0.17%

–

0.78%

The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement for other types of financial instruments classified within Level 3. These financial instruments are subject to the controls described under “— Investments.” Generally, all other classes of securities including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance use the same valuation techniques and significant unobservable inputs as previously described for Level 3 fixed maturity securities. This includes matrix pricing and DCF methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations.

A description of the sensitivity of the estimated fair value to changes in the significant unobservable inputs for certain of the major asset and liability classes described above is as follows:

Significant spread widening in isolation will adversely impact the overall valuation, while significant spread tightening will lead to substantial valuation increases. Significant increases (decreases) in illiquidity premiums in isolation would result in substantially lower (higher) valuations. Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. Significant increases (decreases) in offered quotes in isolation would result in substantially higher (lower) valuations.

Significant spread widening in isolation will adversely impact the overall valuation, while significant spread tightening will lead to substantial valuation increases. Significant increases (decreases) in offered quotes in isolation would result in substantially higher (lower) valuations. In general, changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates.

Significant spread widening in isolation will adversely impact the overall valuation, while significant spread tightening will lead to substantial valuation increases. Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. Significant increases (decreases) in offered quotes in isolation would result in substantially higher (lower) valuations.

Significant increases (decreases) in the unobservable portion of the swap yield curve in isolation will result in substantial valuation changes.

Credit contracts with significant unobservable inputs are primarily comprised of credit default swaps written by the Company. Significant credit spread widening in isolation will result in substantially higher adverse valuations, while significant spread tightening will result in substantially lower adverse valuations. Significant increases (decreases) in offered quotes in isolation will result in substantially higher (lower) valuations.

Significant decreases in the equity volatility in isolation will adversely impact overall valuation, while significant increases in equity volatility will result in substantial valuation increases.

For any increase (decrease) in mortality and lapse rates, the fair value of the guarantees will decrease (increase). For any increase (decrease) in utilization and volatility, the fair value of the guarantees will increase (decrease). Specifically for GMWBs, for any increase (decrease) in withdrawal rates, the fair value of the guarantees will increase (decrease). Specifically for GMABs and GMIBs, for any increase (decrease) in withdrawal rates, the fair value of the guarantees will decrease (increase).

The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3), including realized and unrealized gains (losses) of all assets and (liabilities) and realized and unrealized gains (losses) of all assets and (liabilities) still held at the end of the respective periods:

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Fixed Maturity Securities:

					U.S.								State and
			U.S.		Treasury		Foreign						Political				Foreign
			Corporate		and Agency		Corporate						Subdivision				Government
			Securities		Securities		Securities		RMBS		CMBS		Securities		ABS		Securities

			(In millions)

Three Months Ended September 30, 2012:
Balance, beginning of period			$	1,522	$	0	$	698	$	233	$	158	$	25	$	289	$	2
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		2		0		0		0		0		0		0		0
		Net investment gains (losses)		0		0		(14)		(1)		0		0		0		0
		Net derivative gains (losses)		0		0		0		0		0		0		0		0
	Other comprehensive income (loss)			73		0		19		16		(1)		0		4		0
Purchases (3)				56		0		26		27		32		0		7		0
Sales (3)				(45)		0		(26)		(24)		(37)		0		(3)		0
Issuances (3)				0		0		0		0		0		0		0		0
Settlements (3)				0		0		0		0		0		0		0		0
Transfers into Level 3 (4)				2		0		40		1		22		0		0		0
Transfers out of Level 3 (4)				(38)		0		(8)		0		(15)		0		(4)		0
Balance, end of period			$	1,572	$	0	$	735	$	252	$	159	$	25	$	293	$	2

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2012 included in net income (loss):
		Net investment income	$	2	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	0	$	(10)	$	0	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Equity Securities:						Net Derivatives: (5)
					Non-
					redeemable										Net		Separate
			Common		Preferred		Short-term		Interest				Equity		Embedded		Account
			Stock		Stock		Investments		Rate		Credit		Market		Derivatives (6)		Assets (7)
			(In millions)

Three Months Ended September 30, 2012:
Balance, beginning of period			$	22	$	91	$	22	$	169	$	6	$	(6)	$	1,214	$	149
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		0		0		0		0		0		0		0		0
		Net investment gains (losses)		1		0		0		0		0		0		0		0
		Net derivative gains (losses)		0		0		0		(6)		4		(25)		95		0
	Other comprehensive income (loss)			1		1		0		(6)		0		0		0		0
Purchases (3)				0		0		45		0		0		0		0		4
Sales (3)				(1)		0		(1)		0		0		0		0		(3)
Issuances (3)				0		0		0		(10)		0		0		0		0
Settlements (3)				0		0		0		(5)		0		0		(10)		0
Transfers into Level 3 (4)				0		0		0		0		0		0		0		0
Transfers out of Level 3 (4)				0		0		0		0		0		0		0		(2)
Balance, end of period			$	23	$	92	$	66	$	142	$	10	$	(31)	$	1,299	$	148

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2012 included in net income (loss):
		Net investment income	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	(4)	$	4	$	(25)	$	97	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Fixed Maturity Securities:
					U.S.								State and
			U.S.		Treasury		Foreign						Political				Foreign
			Corporate		and Agency		Corporate						Subdivision				Government
			Securities		Securities		Securities		RMBS (8)		CMBS		Securities		ABS (8)		Securities
			(In millions)

Three Months Ended September 30, 2011:
Balance, beginning of period			$	1,445	$	0	$	756	$	250	$	155	$	25	$	77	$	2
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		3		0		0		0		0		0		0		0
		Net investment gains (losses)		28		0		0		0		0		0		0		0
		Net derivative gains (losses)		0		0		0		0		0		0		0		0
	Other comprehensive income (loss)			70		0		(19)		(15)		4		(1)		0		0
Purchases (3)				124		0		10		1		0		0		114		0
Sales (3)				(73)		0		(118)		(7)		(1)		(1)		(3)		0
Issuances (3)				0		0		0		0		0		0		0		0
Settlements (3)				0		0		0		0		0		0		0		0
Transfers into Level 3 (4)				0		0		22		0		0		0		120		0
Transfers out of Level 3 (4)				(42)		0		(36)		0		0		0		0		0
Balance, end of period			$	1,555	$	0	$	615	$	229	$	158	$	23	$	308	$	2

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2011 included in net income (loss):
		Net investment income	$	3	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	0	$	(4)	$	0	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Equity Securities:						Net Derivatives: (5)
					Non-
					redeemable										Net		Separate
			Common		Preferred		Short-term		Interest				Equity		Embedded		Account
			Stock		Stock		Investments		Rate		Credit		Market		Derivatives (6)		Assets (7)
			(In millions)

Three Months Ended September 30, 2011:
Balance, beginning of period			$	32	$	121	$	92	$	(62)	$	10	$	2	$	782	$	130
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		0		0		0		0		0		0		0		0
		Net investment gains (losses)		0		0		0		0		0		0		0		(1)
		Net derivative gains (losses)		0		0		0		29		(18)		66		42		0
	Other comprehensive income (loss)			(11)		(9)		0		195		0		0		0		0
Purchases (3)				0		0		10		0		0		3		0		2
Sales (3)				0		(19)		(47)		0		0		0		0		0
Issuances (3)				0		0		0		0		0		(4)		0		0
Settlements (3)				0		0		0		(8)		0		0		19		0
Transfers into Level 3 (4)				0		0		0		1		0		0		0		0
Transfers out of Level 3 (4)				0		0		0		0		0		0		0		0
Balance, end of period			$	21	$	93	$	55	$	155	$	(8)	$	67	$	843	$	131

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2011 included in net income (loss):
		Net investment income	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	27	$	(18)	$	65	$	40	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Fixed Maturity Securities:
					U.S.								State and
			U.S.		Treasury		Foreign						Political				Foreign
			Corporate		and Agency		Corporate						Subdivision				Government
			Securities		Securities		Securities		RMBS		CMBS		Securities		ABS		Securities
			(In millions)

Nine Months Ended September 30, 2012:
Balance, beginning of period			$	1,432	$	0	$	580	$	239	$	147	$	23	$	220	$	2
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		5		0		0		0		0		0		0		0
		Net investment gains (losses)		0		0		(22)		(4)		(2)		0		0		0
		Net derivative gains (losses)		0		0		0		0		0		0		0		0
	Other comprehensive income (loss)			70		0		39		32		5		2		5		0
Purchases (3)				143		0		100		27		33		0		98		0
Sales (3)				(98)		0		(41)		(46)		(52)		0		(12)		0
Issuances (3)				0		0		0		0		0		0		0		0
Settlements (3)				0		0		0		0		0		0		0		0
Transfers into Level 3 (4)				26		0		93		4		28		0		0		0
Transfers out of Level 3 (4)				(6)		0		(14)		0		0		0		(18)		0
Balance, end of period			$	1,572	$	0	$	735	$	252	$	159	$	25	$	293	$	2

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2012 included in net income (loss):
		Net investment income	$	5	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	0	$	(16)	$	(2)	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Equity Securities:						Net Derivatives: (5)
					Non-
					redeemable										Net		Separate
			Common		Preferred		Short-term		Interest				Equity		Embedded		Account
			Stock		Stock		Investments		Rate		Credit		Market		Derivatives (6)		Assets (7)
			(In millions)

Nine Months Ended September 30, 2012:
Balance, beginning of period			$	21	$	76	$	10	$	174	$	(1)	$	43	$	1,032	$	130
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		0		0		0		0		0		0		0		0
		Net investment gains (losses)		(2)		0		0		0		0		0		0		19
		Net derivative gains (losses)		0		0		0		3		10		(74)		276		0
	Other comprehensive income (loss)			5		16		0		9		0		0		0		0
Purchases (3)				0		0		66		0		0		0		0		4
Sales (3)				(1)		0		(10)		0		0		0		0		(4)
Issuances (3)				0		0		0		(10)		0		0		0		0
Settlements (3)				0		0		0		(34)		0		0		(9)		0
Transfers into Level 3 (4)				0		0		0		0		0		0		0		0
Transfers out of Level 3 (4)				0		0		0		0		1		0		0		(1)
Balance, end of period			$	23	$	92	$	66	$	142	$	10	$	(31)	$	1,299	$	148

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2012 included in net income (loss):
		Net investment income	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	(3)	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	4	$	10	$	(74)	$	283	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Fixed Maturity Securities:
					U.S.								State and
			U.S.		Treasury		Foreign						Political				Foreign
			Corporate		and Agency		Corporate						Subdivision				Government
			Securities		Securities		Securities		RMBS (8)		CMBS		Securities		ABS (8)		Securities
			(In millions)

Nine Months Ended September 30, 2011:
Balance, beginning of period			$	1,510	$	34	$	880	$	282	$	130	$	32	$	321	$	14
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		4		0		2		0		0		0		0		0
		Net investment gains (losses)		31		0		(18)		(4)		0		0		(6)		0
		Net derivative gains (losses)		0		0		0		0		0		0		0		0
	Other comprehensive income (loss)			92		0		15		(13)		20		(8)		11		0
Purchases (3)				184		0		270		4		18		0		147		0
Sales (3)				(153)		0		(502)		(24)		(10)		(1)		(50)		(12)
Issuances (3)				0		0		0		0		0		0		0		0
Settlements (3)				0		0		0		0		0		0		0		0
Transfers into Level 3 (4)				4		0		22		0		0		0		99		0
Transfers out of Level 3 (4)				(117)		(34)		(54)		(16)		0		0		(214)		0
Balance, end of period			$	1,555	$	0	$	615	$	229	$	158	$	23	$	308	$	2

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2011 included in net income (loss):
		Net investment income	$	5	$	0	$	1	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	0	$	(7)	$	(4)	$	0	$	0	$	(1)	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Equity Securities:						Net Derivatives: (5)
					Non-
					redeemable										Net		Separate
			Common		Preferred		Short-term		Interest				Equity		Embedded		Account
			Stock		Stock		Investments		Rate		Credit		Market		Derivatives (6)		Assets (7)
			(In millions)

Nine Months Ended September 30, 2011:
Balance, beginning of period			$	22	$	214	$	173	$	(61)	$	11	$	12	$	677	$	133
Total realized/unrealized gains
	(losses) included in:
	Net income (loss): (1), (2)
		Net investment income		0		0		0		0		0		0		0		0
		Net investment gains (losses)		1		(24)		(1)		0		0		0		0		(6)
		Net derivative gains (losses)		0		0		0		25		(16)		56		115		0
	Other comprehensive income (loss)			(7)		19		0		199		0		0		0		0
Purchases (3)				9		0		55		0		0		3		0		5
Sales (3)				(4)		(116)		(172)		0		0		0		0		(1)
Issuances (3)				0		0		0		0		(1)		(4)		0		0
Settlements (3)				0		0		0		(8)		(1)		0		51		0
Transfers into Level 3 (4)				0		0		0		0		(1)		0		0		0
Transfers out of Level 3 (4)				0		0		0		0		0		0		0		0
Balance, end of period			$	21	$	93	$	55	$	155	$	(8)	$	67	$	843	$	131

Changes in unrealized gains (losses)
	relating to assets and liabilities still held
	at September 30, 2011 included in net income (loss):
		Net investment income	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
		Net investment gains (losses)	$	0	$	(3)	$	0	$	0	$	0	$	0	$	0	$	0
		Net derivative gains (losses)	$	0	$	0	$	0	$	20	$	(15)	$	56	$	115	$	0

The Company has elected the FVO for the following assets and liabilities held by CSEs: commercial mortgage loans and long-term debt. The following table presents these commercial mortgage loans accounted for under the FVO at:

The following table presents the long-term debt accounted for under the FVO related to commercial mortgage loans at:

Interest income on commercial mortgage loans held by CSEs is recorded in net investment income. Interest expense on long-term debt of CSEs is recorded in other expenses. Gains and losses from initial measurement, subsequent changes in estimated fair value and gains or losses on sales of both the commercial mortgage loans and the long-term debt are recognized in net investment gains (losses). See Note 3.

Certain assets are measured at estimated fair value on a non-recurring basis and are not included in the tables presented above. The amounts below relate to certain investments measured at estimated fair value during the period and still held at the reporting dates and which are categorized as Level 3 measurements.

	Three Months Ended September 30,
	2012						2011
			Estimated						Estimated
	Carrying		Fair				Carrying		Fair
	Value Prior to		Value After		Gains		Value Prior to		Value After		Gains
	Measurement		Measurement		(Losses)		Measurement		Measurement		(Losses)
	(In millions)

Mortgage loans, net (1)	$	12	$	12	$	0	$	8	$	8	$	0
Other limited partnership interests (2)	$	1	$	0	$	(1)	$	4	$	3	$	(1)
Real estate joint ventures (3)	$	0	$	0	$	0	$	0	$	0	$	0
Goodwill (4)	$	394	$	0	$	(394)	$	0	$	0	$	0

	Nine Months Ended September 30,
	2012						2011
			Estimated						Estimated
	Carrying		Fair				Carrying		Fair
	Value Prior to		Value After		Gains		Value Prior to		Value After		Gains
	Measurement		Measurement		(Losses)		Measurement		Measurement		(Losses)
	(In millions)

Mortgage loans, net (1)	$	8	$	12	$	4	$	0	$	8	$	8
Other limited partnership interests (2)	$	7	$	4	$	(3)	$	7	$	5	$	(2)
Real estate joint ventures (3)	$	5	$	2	$	(3)	$	0	$	0	$	0
Goodwill (4)	$	394	$	0	$	(394)	$	0	$	0	$	0

The tables below exclude certain financial instruments. The excluded financial instruments are as follows: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities, such as time deposits, and are excluded from the preceding three level hierarchy table. The estimated fair value of these financial instruments, which are primarily classified in Level 2, approximate carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. The table below also excludes financial instruments reported at estimated fair value on a recurring basis. See “— Recurring Fair Value Measurements.” All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

		September 30, 2012
				Fair Value Measurements at Reporting Date Using
				Quoted Prices in
				Active Markets for		Significant Other		Significant		Total
				Identical Assets		Observable		Unobservable		Estimated
		Carrying		and Liabilities		Inputs		Inputs		Fair
		Value		(Level 1)		(Level 2)		(Level 3)		Value
		(In millions)

Assets:
Mortgage loans, net		$	6,515	$	0	$	0	$	7,002	$	7,002
Policy loans		$	1,227	$	0	$	864	$	467	$	1,331
Real estate joint ventures		$	61	$	0	$	0	$	100	$	100
Other limited partnership interests		$	98	$	0	$	0	$	119	$	119
Other invested assets		$	430	$	0	$	545	$	0	$	545
Premiums, reinsurance and other receivables		$	6,017	$	0	$	98	$	6,946	$	7,044
Liabilities:
PABs		$	23,188	$	0	$	0	$	25,133	$	25,133
Long-term debt		$	792	$	0	$	1,032	$	0	$	1,032
Other liabilities		$	460	$	0	$	310	$	150	$	460
Separate account liabilities		$	1,321	$	0	$	1,321	$	0	$	1,321
Commitments: (1)
Mortgage loan commitments		$	0	$	0	$	0	$	2	$	2
Commitments to fund bank credit facilities
	and private corporate bond investments	$	0	$	0	$	8	$	0	$	8

		December 31, 2011
				Estimated
		Carrying		Fair
		Value		Value
		(In millions)

Assets:
Mortgage loans, net		$	6,662	$	6,946
Policy loans		$	1,203	$	1,307
Real estate joint ventures		$	69	$	107
Other limited partnership interests		$	98	$	126
Other invested assets		$	430	$	477
Premiums, reinsurance and other receivables		$	5,973	$	6,880
Liabilities:
PABs		$	23,144	$	24,732
Long-term debt		$	792	$	970
Other liabilities		$	224	$	224
Separate account liabilities		$	1,240	$	1,240
Commitments: (1)
Mortgage loan commitments		$	0	$	0
Commitments to fund bank credit facilities
	and private corporate bond investments	$	0	$	7

The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows:

The estimated fair value of mortgage loans was primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk.

Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a DCF model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates.

The amounts disclosed in the preceding tables consist of those investments accounted for using the cost method. The estimated fair values for cost method real estate joint ventures and other limited partnership interests are generally based on the Company's share of the NAV as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments.

Other invested assets within the preceding tables are comprised of loans to affiliates. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities.

Premiums, reinsurance and other receivables in the preceding tables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivative positions and amounts receivable for securities sold but not yet settled.

Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on DCF methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty.

The amounts on deposit for derivative settlements, classified within Level 2, essentially represent the equivalent of demand deposit balances and amounts due for securities sold are generally received over short periods such that the estimated fair value approximates carrying value.

PABs in the preceding tables include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.”

The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on DCF methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability.

The estimated fair values of long-term debt are principally valued using market standard valuation methodologies. Valuations are based primarily on quoted prices in markets that are not active or using matrix pricing or other similar techniques that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using DCF methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues.

Other liabilities consist primarily of interest payable, amounts due for securities purchased but not yet settled and funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements and are recorded using the deposit method of accounting. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values.

Separate account liabilities included in the preceding tables represent those balances due to policyholders under contracts that are classified as investment contracts.

Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance and certain contracts that provide for benefit funding.

Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognized at estimated fair value as described in the section “— Recurring Fair Value Measurements,” the value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets.

Mortgage Loan Commitments and Commitments to Fund Bank Credit Facilities and Private Corporate Bond Investments

The estimated fair values for mortgage loan commitments that will be held for investment and commitments to fund bank credit facilities and private corporate bonds that will be held for investment reflected in the above tables represent the difference between the discounted expected future cash flows using interest rates that incorporate current credit risk for similar instruments on the reporting date and the principal amounts of the commitments.