XML 58 R41.htm IDEA: XBRL DOCUMENT v3.3.1.900
Investments and Derivative Instruments Level 3 (Tables)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Investments [Abstract]    
Investment Income [Table Text Block]
Net Investment Income (Loss)
 
For the years ended December 31,
(Before-tax)
2015
2014
2013
Fixed maturities [1]
$
2,409

$
2,420

$
2,552

Equity securities
25

38

30

Mortgage loans
267

265

260

Policy loans
82

80

83

Limited partnerships and other alternative investments
227

294

287

Other investments [2]
138

179

167

Investment expenses
(118
)
(122
)
(115
)
Total net investment income
$
3,030

$
3,154

$
3,264

[1]
Includes net investment income on short-term investments.
[2]
Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting.
  
Realized Gain (Loss) on Investments [Table Text Block]
Net Realized Capital Gains (Losses)
 
For the years ended December 31,
(Before-tax)
2015
2014
2013
Gross gains on sales [1]
$
460

$
527

$
2,313

Gross losses on sales
(405
)
(250
)
(659
)
Net OTTI losses recognized in earnings
(102
)
(59
)
(73
)
Valuation allowances on mortgage loans
(5
)
(4
)
(1
)
Periodic net coupon settlements on credit derivatives
11

1

(8
)
Results of variable annuity hedge program
 
 


GMWB derivatives, net
(87
)
5

262

Macro hedge program
(46
)
(11
)
(234
)
Total results of variable annuity hedge program
(133
)
(6
)
28

Other, net [2]
18

(193
)
198

Net realized capital gains (losses)
$
(156
)
$
16

$
1,798

[1]
Includes $1.5 billion of gains relating to the sales of the Retirement Plans and Individual Life businesses in the year ended December 31, 2013.
[2]
Primarily consists of changes in the value of non-qualifying derivatives, transactional foreign currency revaluation gains (losses) on yen denominated fixed payout annuity liabilities and gains (losses) on non-qualifying derivatives used to hedge the foreign currency exposure of the liabilities. For the years ended December 31, 2015, 2014, and 2013, gains (losses) from transactional foreign currency revaluation of the yen denominated fixed payout annuity liabilities were $4, $116, and $250, respectively. For the years ended December 31, 2015, 2014, and 2013, gains (losses) on instruments used to hedge the foreign currency exposure on the yen denominated fixed payout annuities were $(21), $(148), and $(268), respectively. Also includes gains of $71 relating to the sales of the Retirement Plans and Individual Life businesses for the year ended December 31, 2013
  
Available-for-sale Securities [Table Text Block]
 
For the years ended December 31,
 
2015
2014
2013
Fixed maturities, AFS
 
 
 
Sale proceeds
$
20,615

$
22,923

$
39,225

Gross gains [1]
372

456

2,143

Gross losses
(317
)
(182
)
(654
)
Equity securities, AFS
 
 
 
Sale proceeds
$
1,319

$
354

$
274

Gross gains
61

22

96

Gross losses
(46
)
(20
)
(20
)
  
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]
 
For the years ended December 31,
(Before-tax)
2015
2014
2013
Balance as of beginning of period
$
(424
)
$
(552
)
$
(1,013
)
Additions for credit impairments recognized on [1]:
 
 
 
Securities not previously impaired
(15
)
(15
)
(19
)
Securities previously impaired
(14
)
(22
)
(13
)
Reductions for credit impairments previously recognized on:
 
 
 
Securities that matured or were sold during the period
68

138

469

Securities the Company made the decision to sell or more likely than not will be required to sell
2

—

2

Securities due to an increase in expected cash flows
59

27

22

Balance as of end of period
$
(324
)
$
(424
)
$
(552
)
[1]
These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations.
  
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]
 
December 31, 2015
December 31, 2014
 
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Non-
Credit
OTTI [1]
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Non-
Credit
OTTI [1]
ABS
$
2,520

$
24

$
(45
)
$
2,499

$
—

$
2,470

$
39

$
(37
)
$
2,472

$
(1
)
CDOs [2]
2,989

75

(23
)
3,038

—

2,776

98

(36
)
2,841

—

CMBS
4,668

105

(56
)
4,717

(8
)
4,235

196

(16
)
4,415

(6
)
Corporate
25,876

1,342

(416
)
26,802

(3
)
25,188

2,382

(211
)
27,359

(3
)
Foreign govt./govt. agencies
1,321

34

(47
)
1,308

—

1,592

73

(29
)
1,636

—

Municipal
11,124

1,008

(11
)
12,121

—

11,735

1,141

(5
)
12,871

—

RMBS
3,986

82

(22
)
4,046

—

3,815

122

(19
)
3,918

(1
)
U.S. Treasuries
4,481

222

(38
)
4,665

—

3,551

326

(5
)
3,872

—

Total fixed maturities, AFS
56,965

2,892

(658
)
59,196

(11
)
55,362

4,377

(358
)
59,384

(11
)
Equity securities, AFS [3]
842

38

(41
)
839

—

676

50

(27
)
699

—

Total AFS securities
$
57,807

$
2,930

$
(699
)
$
60,035

$
(11
)
$
56,038

$
4,427

$
(385
)
$
60,083

$
(11
)
[1]
Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2015 and 2014.
[2]
Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivatives within certain securities. Subsequent changes in value are recorded in net realized capital gains (losses).
[3]
Excludes equity securities, FVO with a cost and fair value of $293 and $282, respectively, as of December 31, 2015, and $351 and $348 as of December 31, 2014.
  
Investments Classified by Contractual Maturity Date [Table Text Block]
The following table presents the Company’s fixed maturities, AFS, by contractual maturity year.
 
December 31, 2015
December 31, 2014
Contractual Maturity
Amortized Cost
Fair Value
Amortized Cost
Fair Value
One year or less
$
2,373

$
2,405

$
2,141

$
2,168

Over one year through five years
10,929

11,200

11,264

11,827

Over five years through ten years
9,322

9,497

8,802

9,226

Over ten years
20,178

21,794

19,859

22,517

Subtotal
42,802

44,896

42,066

45,738

Mortgage-backed and asset-backed securities
14,163

14,300

13,296

13,646

Total fixed maturities, AFS
$
56,965

$
59,196

$
55,362

$
59,384


Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.
  
Schedule of Unrealized Loss on Investments [Table Text Block]
Unrealized Losses on AFS Securities
The following tables present the Company’s unrealized loss aging for AFS securities by type and length of time the security was in a continuous unrealized loss position.
 
December 31, 2015
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
1,619

$
1,609

$
(10
)
 
$
357

$
322

$
(35
)
 
$
1,976

$
1,931

$
(45
)
CDOs [1]
1,164

1,154

(10
)
 
1,243

1,227

(13
)
 
2,407

2,381

(23
)
CMBS
1,726

1,681

(45
)
 
189

178

(11
)
 
1,915

1,859

(56
)
Corporate
9,206

8,866

(340
)
 
656

580

(76
)
 
9,862

9,446

(416
)
Foreign govt./govt. agencies
679

646

(33
)
 
124

110

(14
)
 
803

756

(47
)
Municipal
440

430

(10
)
 
18

17

(1
)
 
458

447

(11
)
RMBS
1,349

1,340

(9
)
 
415

402

(13
)
 
1,764

1,742

(22
)
U.S. Treasuries
2,432

2,394

(38
)
 
8

8

—

 
2,440

2,402

(38
)
Total fixed maturities, AFS
18,615

18,120

(495
)
 
3,010

2,844

(163
)
 
21,625

20,964

(658
)
Equity securities, AFS [2]
480

449

(31
)
 
62

52

(10
)
 
542

501

(41
)
Total securities in an unrealized loss position
$
19,095

$
18,569

$
(526
)
 
$
3,072

$
2,896

$
(173
)
 
$
22,167

$
21,465

$
(699
)
 
December 31, 2014
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
897

$
893

$
(4
)
 
$
473

$
440

$
(33
)
 
$
1,370

$
1,333

$
(37
)
CDOs [1]
748

743

(5
)
 
1,489

1,461

(31
)
 
2,237

2,204

(36
)
CMBS
230

227

(3
)
 
319

306

(13
)
 
549

533

(16
)
Corporate
3,082

2,980

(102
)
 
1,177

1,068

(109
)
 
4,259

4,048

(211
)
Foreign govt./govt. agencies
363

349

(14
)
 
227

212

(15
)
 
590

561

(29
)
Municipal
74

73

(1
)
 
86

82

(4
)
 
160

155

(5
)
RMBS
320

318

(2
)
 
433

416

(17
)
 
753

734

(19
)
U.S. Treasuries
432

431

(1
)
 
361

357

(4
)
 
793

788

(5
)
Total fixed maturities, AFS
6,146

6,014

(132
)
 
4,565

4,342

(226
)
 
10,711

10,356

(358
)
Equity securities, AFS [2]
172

160

(12
)
 
102

87

(15
)
 
274

247

(27
)
Total securities in an unrealized loss position
$
6,318

$
6,174

$
(144
)
 
$
4,667

$
4,429

$
(241
)
 
$
10,985

$
10,603

$
(385
)
[1]
Unrealized losses exclude the change in fair value of bifurcated embedded derivatives within certain securities, for which changes in fair value are recorded in net realized capital gains (losses).
[2]
As of December 31, 2015 and 2014, excludes equity securities, FVO which are included in equity securities, AFS on the Consolidated Balance Sheets.
  
Mortgage Loans [Table Text Block]
Mortgage Loans
Mortgage Loan Valuation Allowances
The Company’s security monitoring process reviews mortgage loans on a quarterly basis to identify potential credit losses. Commercial mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. Criteria used to determine if an impairment exists include, but are not limited to: current and projected macroeconomic factors, such as unemployment rates, and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historic, current and projected delinquency rates and property values. These assumptions require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the borrower and/or underlying collateral such as changes in the projections of the underlying property value estimates.
For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate, (b) the loan’s observable market price or, most frequently, (c) the fair value of the collateral. A valuation allowance has been established for either individual loans or as a projected loss contingency for loans with an LTV ratio of 90% or greater and after consideration of other credit quality factors, including DSCR. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the loans continue to perform under the original or restructured terms. Interest income ceases to accrue for loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. Loans may resume accrual status when it is determined that sufficient collateral exists to satisfy the full amount of the loan and interest payments, as well as when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received.

 
December 31, 2015
 
December 31, 2014
 
Amortized Cost [1]
Valuation Allowance
Carrying Value
 
Amortized Cost [1]
Valuation Allowance
Carrying Value
Total commercial mortgage loans
$
5,647

$
(23
)
$
5,624

 
$
5,574

$
(18
)
$
5,556

[1]
Amortized cost represents carrying value prior to valuation allowances, if any.
  
Valuation Allowance for Mortgage Loans [Table Text Block]
The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial.
 
For the years ended December 31,
 
2015
2014
2013
Balance as of January 1
$
(18
)
$
(67
)
$
(68
)
(Additions)/Reversals
(7
)
(4
)
(2
)
Deductions
2

53

3

Balance as of December 31
$
(23
)
$
(18
)
$
(67
)
  
Commercial Mortgage Loans Credit Quality [Table Text Block]
The following tables present the carrying value of the Company’s mortgage loans by region and property type.
Mortgage Loans by Region
 
December 31, 2015
 
December 31, 2014
 
Carrying Value
Percent of Total
 
Carrying Value
Percent of Total
East North Central
$
289

5.1
%
 
$
211

3.8
%
East South Central
14

0.2
%
 
—

—
%
Middle Atlantic
384

6.8
%
 
468

8.4
%
Mountain
32

0.6
%
 
88

1.6
%
New England
446

7.9
%
 
381

6.9
%
Pacific
1,669

29.7
%
 
1,607

29.0
%
South Atlantic
1,174

20.9
%
 
1,019

18.3
%
West North Central
29

0.5
%
 
44

0.8
%
West South Central
318

5.7
%
 
302

5.4
%
Other [1]
1,269

22.6
%
 
1,436

25.8
%
Total mortgage loans
$
5,624

100.0
%
 
$
5,556

100.0
%
[1]
Primarily represents loans collateralized by multiple properties in various regions.
Mortgage Loans by Property Type
 
December 31, 2015
 
December 31, 2014
 
Carrying Value
Percent of Total
 
Carrying Value
Percent of Total
Commercial
 
 
 
 
 
Agricultural
$
26

0.5
%
 
$
46

0.8
%
Industrial
1,422

25.3
%
 
1,476

26.6
%
Lodging
26

0.5
%
 
26

0.5
%
Multifamily
1,345

23.9
%
 
1,190

21.4
%
Office
1,547

27.5
%
 
1,517

27.3
%
Retail
1,109

19.7
%
 
1,147

20.6
%
Other
149

2.6
%
 
154

2.8
%
Total mortgage loans
$
5,624

100.0
%
 
$
5,556

100.0
%
The following table presents the carrying value of the Company’s commercial mortgage loans by LTV and DSCR.
Commercial Mortgage Loans Credit Quality
 
December 31, 2015
 
December 31, 2014
Loan-to-value
Carrying Value
Avg. Debt-Service Coverage Ratio
 
Carrying Value
Avg. Debt-Service Coverage Ratio
Greater than 80%
$
24

0.81x
 
$
53

1.07x
65% - 80%
623

1.82x
 
789

1.75x
Less than 65%
4,977

2.75x
 
4,714

2.66x
Total commercial mortgage loans
$
5,624

2.63x
 
$
5,556

2.51x
  
Schedule of Variable Interest Entities [Table Text Block]
 
December 31, 2015
 
December 31, 2014
 
Total Assets
Total Liabilities [1]
Maximum Exposure to Loss [2]
 
Total Assets
Total Liabilities [1]
Maximum Exposure to Loss [2]
CDOs [3]
$
5

$
5

$
—

 
$
5

$
5

$
—

Investment funds [4]
159

7

151

 
238

—

243

Limited partnerships and other alternative investments
2

—

2

 
3

1

2

Total
$
166

$
12

$
153

 
$
246

$
6

$
245

[1]
Included in other liabilities in the Company’s Consolidated Balance Sheets.
[2]
The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment.
[3]
Total assets included in cash in the Company’s Consolidated Balance Sheets.
[4]
Total assets included in fixed maturities, FVO, short-term investments, equity, AFS, and cash in the Company's Consolidated Balance Sheets.
  
Derivative Instruments [Abstract]    
Notional and Fair Value for GMWB Hedging Instruments [Table Text Block]
 
Notional Amount
 
Fair Value
 
December 31,
2015
December 31,
2014
 
December 31,
2015
December 31,
2014
Equity swaps, options, and futures
$
4,548

$
5,983

 
$
147

$
141

Foreign currency options
—

400

 
—

—

Total
$
4,548

$
6,383

 
$
147

$
141

 
Notional Amount
 
Fair Value
 
December 31,
2015
December 31,
2014
 
December 31,
2015
December 31,
2014
Customized swaps
$
5,877

$
7,041

 
$
131

$
124

Equity swaps, options, and futures
1,362

3,761

 
2

39

Interest rate swaps and futures
3,740

3,640

 
25

11

Total
$
10,979

$
14,442

 
$
158

$
174

  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
 
Net Derivatives
Asset Derivatives
Liability Derivatives
 
Notional Amount
Fair Value
Fair Value
Fair Value
Hedge Designation/ Derivative Type
Dec 31, 2015
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
Cash flow hedges
 
 
 
 
 
 
 
 
Interest rate swaps
$
3,527

$
3,999

$
17

$
44

$
50

$
52

$
(33
)
$
(8
)
Foreign currency swaps
143

143

(19
)
(19
)
7

3

(26
)
(22
)
Total cash flow hedges
3,670

4,142

(2
)
25

57

55

(59
)
(30
)
Fair value hedges
 
 
 
 
 
 
 
 
Interest rate swaps
23

32

—

—

—

—

—

—

Total fair value hedges
23

32

—

—

—

—

—

—

Non-qualifying strategies
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Interest rate swaps and futures
14,290

15,254

(814
)
(512
)
297

536

(1,111
)
(1,048
)
Foreign exchange contracts
 
 
 
 
 
 
 
 
Foreign currency swaps and forwards
653

177

17

1

17

3

—

(2
)
Fixed payout annuity hedge
1,063

1,319

(357
)
(427
)
—

—

(357
)
(427
)
Credit contracts
 
 
 
 
 
 
 
 
Credit derivatives that purchase credit protection
423

595

18

(6
)
22

4

(4
)
(10
)
Credit derivatives that assume credit risk [1]
2,458

1,487

(13
)
3

9

14

(22
)
(11
)
Credit derivatives in offsetting positions
4,059

5,343

(2
)
(3
)
40

53

(42
)
(56
)
Equity contracts
 
 
 
 
 
 
 
 
Equity index swaps and options
419

635

15

2

41

31

(26
)
(29
)
Variable annuity hedge program
 
 
 
 
 
 
 
 
GMWB product derivatives [2]
15,099

17,908

(262
)
(139
)
—

—

(262
)
(139
)
GMWB reinsurance contracts
3,106

3,659

83

56

83

56

—

—

GMWB hedging instruments
10,979

14,442

158

174

264

289

(106
)
(115
)
Macro hedge program
4,548

6,383

147

141

179

180

(32
)
(39
)
Other
 
 
 
 
 
 
 
 
Contingent capital facility put option
500

500

7

12

7

12

—

—

Modified coinsurance reinsurance contracts
895

974

79

34

79

34

—

—

Total non-qualifying strategies
58,492

68,676

(924
)
(664
)
1,038

1,212

(1,962
)
(1,876
)
Total cash flow hedges, fair value hedges, and non-qualifying strategies
$
62,185

$
72,850

$
(926
)
$
(639
)
$
1,095

$
1,267

$
(2,021
)
$
(1,906
)
Balance Sheet Location
 
 
 
 
 
 
 
 
Fixed maturities, available-for-sale
$
425

$
454

$
(3
)
$
2

$
—

$
2

$
(3
)
$
—

Other investments
23,253

23,014

1

364

409

624

(408
)
(260
)
Other liabilities
19,358

26,791

(798
)
(930
)
524

551

(1,322
)
(1,481
)
Reinsurance recoverables
4,000

4,633

162

90

162

90

—

—

Other policyholder funds and benefits payable
15,149

17,958

(288
)
(165
)
—

—

(288
)
(165
)
Total derivatives
$
62,185

$
72,850

$
(926
)
$
(639
)
$
1,095

$
1,267

$
(2,021
)
$
(1,906
)

[1]
The derivative instruments related to this strategy are held for other investment purposes.
[2]
These derivatives are embedded within liabilities and are not held for risk management purposes.
  
Offsetting Assets [Table Text Block]
As of December 31, 2015
 
(i)
 
(ii)
 
(iii) = (i) - (ii)
(iv)
 
(v) = (iii) - (iv)
 
 
 
 
 
Net Amounts Presented in the Statement of Financial Position
 
Collateral Disallowed for Offset in the Statement of Financial Position
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Assets [1]
 
Accrued Interest and Cash Collateral Received [2]
 
Financial Collateral Received [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other investments
$
933

 
$
756

 
$
1

 
$
176

 
$
100

 
$
77
As of December 31, 2014
 
(i)
 
(ii)
 
(iii) = (i) - (ii)
(iv)
 
(v) = (iii) - (iv)
 
 
 
 
 
Net Amounts Presented in the Statement of Financial Position
 
Collateral Disallowed for Offset in the Statement of Financial Position
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Assets [1]
 
Accrued Interest and Cash Collateral Received [2]
 
Financial Collateral Received [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other investments
$
1,175

 
$
969

 
$
364

 
$
(158
)
 
$
109

 
$
97
Offsetting Liabilities [Table Text Block]
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Liabilities [3]
 
Accrued Interest and Cash Collateral Pledged [3]
 
Financial Collateral Pledged [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
(1,730
)
 
$
(818
)
 
$
(798
)
 
$
(114
)
 
$
(889
)
 
$
(23
)
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Derivative Liabilities [3]
 
Accrued Interest and Cash Collateral Pledged [3]
 
Financial Collateral Pledged [4]
 
Net Amount
Description
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
(1,741
)
 
$
(799
)
 
$
(927
)
 
$
(15
)
 
$
(1,079
)
 
$
137
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
Derivatives in Cash Flow Hedging Relationships
 
Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
Net Realized Capital Gains(Losses) Recognized in Income on Derivative (Ineffective Portion)
 
2015
2014
2013
2015
2014
2013
Interest rate swaps
$
28

$
150

$
(315
)
$
—

$
2

$
(3
)
Foreign currency swaps
—

(10
)
12

—

—

—

Total
$
28

$
140

$
(303
)
$
—

$
2

$
(3
)

Derivatives in Cash Flow Hedging Relationships
 
 
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Location
2015
2014
2013
Interest rate swaps
Net realized capital gain/(loss)
$
4

$
(1
)
$
91

Interest rate swaps
Net investment income
64

87

97

Foreign currency swaps
Net realized capital gain/(loss)
(9
)
(13
)
4

Total
 
$
59

$
73

$
192

  
Derivatives in Fair Value Hedging Relationships [Table Text Block]
Derivatives in Fair Value Hedging Relationships
 
Gain (Loss) Recognized in Income [1]
 
2015
2014
2013
 
Derivative
Hedged Item
Derivative
Hedged Item
Derivative
Hedged Item
Interest rate swaps
 
 
 
 
 
 
Net realized capital gains (losses)
$
—

$
—

$
(3
)
$
1

$
7

$
(12
)
Foreign currency swaps
 

 

 

 

 
 
Net realized capital gains (losses)
—

—

—

—

1

(1
)
Benefits, losses and loss adjustment expenses
—

—

—

—

(2
)
2

Total
$
—

$
—

$
(3
)
$
1

$
6

$
(11
)

[1]
The amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (expense) related to the hedged item. The net of the amounts presented represents the ineffective portion of the hedge
  
Gain or Loss Recognized with in Net Realized Capital Gains Losses on Non Qualifying Strategies [Table Text Block]
Non-qualifying Strategies
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
 
December 31,
 
2015
2014
2013
Interest rate contracts
 
 
 
Interest rate swaps, caps, floors, and forwards
$
(15
)
$
(172
)
$
50

Foreign exchange contracts
 
 
 
Foreign currency swaps and forwards
18

6

5

Fixed payout annuity hedge [1]
(21
)
(148
)
(268
)
Credit contracts
 
 
 
Credit derivatives that purchase credit protection
8

(10
)
(38
)
Credit derivatives that assume credit risk
(11
)
16

71

Equity contracts
 
 
 
Equity index swaps and options
19

3

(33
)
Commodity contracts
 
 
 
Commodity options
(9
)
—

—

Variable annuity hedge program
 
 
 
GMWB product derivative
(59
)
(2
)
1,306

GMWB reinsurance contracts
17

4

(192
)
GMWB hedging instruments
(45
)
3

(852
)
Macro hedge program
(46
)
(11
)
(234
)
Other
 
 
 
Contingent capital facility put option
(6
)
(6
)
(7
)
Modified coinsurance reinsurance contracts
46

(34
)
67

Derivative instruments formerly associated with HLIKK [2]
—

(2
)
—

Total [3]
$
(104
)
$
(353
)
$
(125
)

[1]
The associated liability is adjusted for changes in spot rates through realized capital gains and was $4, $116 and $250 for the years ended December 31, 2015, 2014 and 2013, respectively, which is not presented in this table
[2]
These amounts relate to the termination of the hedging program associated with the Japan variable annuity product due to the sale of HLIKK.
[3]
  
Disclosure of Credit Derivatives [Table Text Block]
The following tables present the notional amount, fair value, weighted average years to maturity, underlying referenced credit obligation type and average credit ratings, and offsetting notional amounts and fair value for credit derivatives in which the Company is assuming credit risk as of December 31, 2015 and 2014.
As of December 31, 2015
 
 
 
 
Underlying Referenced Credit Obligation(s) [1]
 
 
Credit Derivative Type by Derivative Risk Exposure
Notional Amount [2]
Fair Value
Weighted Average Years to Maturity
Type
Average Credit Rating
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Single name credit default swaps
 
 
 
 
 
 
 
Investment grade risk exposure
$
190

$
(1
)
1 year
Corporate Credit/
Foreign Gov.
BBB+
$
176

$
(1
)
Below investment grade risk exposure
77

(2
)
2 years
Corporate Credit
B
77

1

Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
3,036

22

4 years
Corporate Credit
BBB+
1,411

(13
)
Investment grade risk exposure
681

(19
)
6 years
CMBS Credit
AA+
212

1

Below investment grade risk exposure
153

(25
)
1 year
CMBS Credit
CCC
153

25

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
350

346

1 year
Corporate Credit
A+
—

—

Total [5]
$
4,487

$
321

 
 
 
$
2,029

$
13


As of December 31, 2014
 
 
 
 
Unifying Referenced Credit Obligation(s) [1]
 
 
Credit Derivative Type by Derivative Risk Exposure
Notional Amount [2]
Fair Value
Weighted Average Years to Maturity
Type
Average Credit Rating
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Single name credit default swaps
 
 
 
 
 
 
 
Investment grade risk exposure
$
320

$
5

2 years
Corporate Credit/
Foreign Gov.
BBB+
$
247

$
(5
)
Below investment grade risk exposure
29

—

2 years
Corporate Credit
BB
29

(1
)
Basket credit default swaps [4]
 
 
 
 
 
 
 
Investment grade risk exposure
2,546

33

3 years
Corporate Credit
BBB
1,973

(25
)
Below investment grade risk exposure
38

(1
)
12 years
Corporate Credit
D
—

—

Investment grade risk exposure
722

(12
)
6 years
CMBS Credit
AA+
269

3

Below investment grade risk exposure
154

(22
)
2 years
CMBS Credit
CCC+
154

23

Embedded credit derivatives
 
 
 
 
 
 
 
Investment grade risk exposure
350

342

2 years
Corporate Credit
A
—

—

Total [5]
$
4,159

$
345

 
 
 
$
2,672

$
(5
)
[1]
The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, Fitch and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.
[2]
Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements, clearing house rules and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.
[3]
The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.
[4]
Includes $3.9 billion and $3.5 billion as of December 31, 2015 and 2014, respectively, of notional amount on swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.
[5]
Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 4 -