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Investments (Tables)

9 Months Ended

Sep. 30, 2017

Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value



	As of September 30, 2017
	Amortized		Gross Unrealized							Fair
	Cost		Gains		Losses		OTTI (1)			Value
Fixed maturity securities:
Corporate bonds	$	75,400	$	6,317	$	421	$	(5	)	$	81,301
Asset-backed securities ("ABS")		951		51		7		(23	)		1,018
U.S. government bonds		533		43		2		-			574
Foreign government bonds		396		59		-		-			455
Residential mortgage-backed securities ("RMBS")		3,339		171		38		(22	)		3,494
Commercial mortgage-backed securities ("CMBS")		532		10		2		(3	)		543
Collateralized loan obligations ("CLOs")		687		4		1		(4	)		694
State and municipal bonds		4,180		877		8		-			5,049
Hybrid and redeemable preferred securities		575		87		23		-			639
Total fixed maturity securities		86,593		7,619		502		(57	)		93,767
Equity securities		296		19		13		-			302
Total AFS securities	$	86,889	$	7,638	$	515	$	(57	)	$	94,069



	As of December 31, 2016
	Amortized		Gross Unrealized							Fair
	Cost		Gains		Losses		OTTI (1)			Value
Fixed maturity securities:
Corporate bonds	$	73,275	$	4,754	$	970	$	(5	)	$	77,064
ABS		1,047		39		14		(13	)		1,085
U.S. government bonds		384		37		2		-			419
Foreign government bonds		449		58		1		-			506
RMBS		3,534		147		73		(6	)		3,614
CMBS		345		8		4		(1	)		350
CLOs		742		1		3		(4	)		744
State and municipal bonds		3,929		718		20		-			4,627
Hybrid and redeemable preferred securities		582		70		48		-			604
VIEs’ fixed maturity securities		200		-		-		-			200
Total fixed maturity securities		84,487		5,832		1,135		(29	)		89,213
Equity securities		260		19		4		-			275
Total AFS securities	$	84,747	$	5,851	$	1,139	$	(29	)	$	89,488

⁽¹⁾

Includes unrealized (gains) and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date.

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	3,699	$	3,750
Due after one year through five years		18,220		19,076
Due after five years through ten years		17,029		17,759
Due after ten years		42,136		47,433
Subtotal		81,084		88,018
Structured securities (ABS, MBS, CLOs)		5,509		5,749
Total fixed maturity AFS securities	$	86,593	$	93,767

Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position



	As of September 30, 2017
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
	Fair		Losses and			Fair		Losses and			Fair		Losses and
	Value			OTTI		Value			OTTI		Value			OTTI
Fixed maturity securities:
Corporate bonds	$	7,624		$	206	$	2,273		$	218	$	9,897		$	424
ABS		88			2		156			17		244			19
U.S. government bonds		172			2		-			-		172			2
RMBS		770			31		128			8		898			39
CMBS		126			2		7			1		133			3
CLOs		175			1		6			-		181			1
State and municipal bonds		88			3		57			5		145			8
Hybrid and redeemable
preferred securities		20			-		125			23		145			23
Total fixed maturity securities		9,063			247		2,752			272		11,815			519
Equity securities		26			11		8			2		34			13
Total AFS securities	$	9,089		$	258	$	2,760		$	274	$	11,849		$	532

Total number of AFS securities in an unrealized loss position															1,052



	As of December 31, 2016
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
	Fair		Losses and			Fair		Losses and			Fair		Losses and
	Value			OTTI		Value			OTTI		Value			OTTI
Fixed maturity securities:
Corporate bonds	$	15,820		$	569	$	3,187		$	403	$	19,007		$	972
ABS		201			4		298			25		499			29
U.S. government bonds		18			2		-			-		18			2
Foreign government bonds		29			1		-			-		29			1
RMBS		989			58		392			23		1,381			81
CMBS		190			4		19			2		209			6
CLOs		259			3		25			-		284			3
State and municipal bonds		227			12		47			8		274			20
Hybrid and redeemable
preferred securities		76			4		143			44		219			48
Total fixed maturity securities		17,809			657		4,111			505		21,920			1,162
Equity securities		4			2		44			2		48			4
Total AFS securities	$	17,813		$	659	$	4,155		$	507	$	21,968		$	1,166

Total number of AFS securities in an unrealized loss position															1,744

Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost



	As of September 30, 2017
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities (1)
Less than six months	$	43	$	18	$	-			17
Six months or greater, but less than nine months		15		7		-			8
Nine months or greater, but less than twelve months		32		10		-			2
Twelve months or greater		229		84		10			50
Total	$	319	$	119	$	10			77



	As of December 31, 2016
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities (1)
Less than six months	$	174	$	52	$	2			19
Nine months or greater, but less than twelve months		1		1		-			2
Twelve months or greater		364		167		10			62
Total	$	539	$	220	$	12			83

⁽¹⁾

We may reflect a security in more than one aging category based on various purchase dates.

Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Balance as of beginning-of-period	$	390		$	431		$	430		$	382
Increases attributable to:
Credit losses on securities for which an
OTTI was not previously recognized		8			6			13			67
Credit losses on securities for which an
OTTI was previously recognized		1			5			4			12
Decreases attributable to:
Securities sold, paid down or matured		(21	)		(6	)		(69	)		(25	)
Balance as of end-of-period	$	378		$	436		$	378		$	436

Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)



	As of September 30, 2017
			Net
			Unrealized				OTTI in
	Amortized		Gain/(Loss)		Fair		Credit
	Cost		Position		Value		Losses
Corporate bonds	$	20	$	5	$	25	$	32
ABS		193		23		216		111
RMBS		275		22		297		188
CMBS		15		3		18		39
CLOs		11		4		15		5
State and municipal bonds		-		-		-		3
Total	$	514	$	57	$	571	$	378



	As of December 31, 2016
			Net
			Unrealized				OTTI in
	Amortized		Gain/(Loss)		Fair		Credit
	Cost		Position		Value		Losses
Corporate bonds	$	80	$	5	$	85	$	77
ABS		212		13		225		112
RMBS		332		6		338		194
CMBS		29		1		30		39
CLOs		11		4		15		5
State and municipal bonds		2		-		2		3
Total	$	666	$	29	$	695	$	430

Composition Of Current And Past Due Mortgage Loans On Real Estate



		As of				As of
	September 30,				December 31,
		2017				2016
Current		$	10,378			$	9,888
60 to 90 days past due			-				-
Greater than 90 days past due			6				2
Valuation allowance associated with impaired mortgage loans on real estate			(2	)			(2	)
Unamortized premium (discount)			-				1
Total carrying value		$	10,382			$	9,889

Schedule Of Impaired Mortgage Loans



		As of				As of
	September 30,				December 31,
		2017				2016
Number of impaired mortgage loans on real estate		2				2

Principal balance of impaired mortgage loans on real estate		$	7			$	7
Valuation allowance associated with impaired mortgage loans on real estate			(2	)			(2	)
Carrying value of impaired mortgage loans on real estate		$	5			$	5

Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Balance as of beginning-of-period	$	2	$	2	$	2	$	2
Additions		-		1		-		1
Charge-offs, net of recoveries		-		-		-		-
Balance as of end-of-period	$	2	$	3	$	2	$	3

Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Average carrying value for impaired mortgage loans on real estate	$	5	$	8	$	5	$	6
Interest income recognized on impaired mortgage loans on real estate		-		-		-		-
Interest income collected on impaired mortgage loans on real estate		-		-		-		-

Credit Quality Indicators For Mortgage Loans



	As of September 30, 2017				As of December 31, 2016
				Debt-				Debt-
				Service				Service
	Carrying		% of	Coverage	Carrying		% of	Coverage
Loan-to-Value Ratio	Value		Total	Ratio	Value		Total	Ratio
Less than 65%	$	9,243	89.0%	2.25	$	8,709	88.0%	2.16
65% to 74%		1,002	9.6%	1.92		1,009	10.2%	1.87
75% to 100%		132	1.3%	0.87		166	1.7%	0.82
Greater than 100%		5	0.1%	1.04		5	0.1%	1.04
Total mortgage loans on real estate	$	10,382	100.0%		$	9,889	100.0%

Realized Gain (Loss) Related To Certain Investments



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Fixed maturity AFS securities: (1)
Gross gains	$	7		$	2		$	19		$	64
Gross losses		(22	)		(37	)		(47	)		(200	)
Equity AFS securities:
Gross gains		1			4			2			6
Gross losses		-			-			-			(1	)
Gain (loss) on other investments		-			(4	)		(6	)		(67	)
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(5	)		(7	)		(17	)		(15	)
Total realized gain (loss) related to certain investments, pre-tax	$	(19	)	$	(42	)	$	(49	)	$	(213	)

⁽¹⁾

These amounts are represented net of related fair value hedging activity. See Note 5 for more information.

OTTI Recognized In Net Income (Loss) And OCI



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
OTTI Recognized in Net Income (Loss)
Fixed maturity securities:
Corporate bonds	$	(8	)	$	(6	)	$	(13	)	$	(68	)
ABS		(1	)		(1	)		(2	)		(4	)
RMBS		-			(3	)		(1	)		(6	)
CMBS		-			(1	)		-			(1	)
State and municipal bonds		-			-			(1	)		-
Total fixed maturity securities		(9	)		(11	)		(17	)		(79	)
Equity securities		-			-			-			(1	)
Gross OTTI recognized in net income (loss)		(9	)		(11	)		(17	)		(80	)
Associated amortization of DAC, VOBA, DSI and DFEL		1			(2	)		1			4
Net OTTI recognized in net income (loss), pre-tax	$	(8	)	$	(13	)	$	(16	)	$	(76	)

Portion of OTTI Recognized in OCI
Gross OTTI recognized in OCI	$	1		$	12		$	1		$	48
Change in DAC, VOBA, DSI and DFEL		-			(3	)		-			(11	)
Net portion of OTTI recognized in OCI, pre-tax	$	1		$	9		$	1		$	37

Payables For Collateral On Investments



	As of September 30, 2017				As of December 31, 2016
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments (1)	$	935	$	935	$	894	$	894
Securities pledged under securities lending agreements (2)		200		192		216		209
Securities pledged under repurchase agreements (3)		533		591		535		589
Investments pledged for Federal Home Loan Bank of
Indianapolis (“FHLBI”) (4)		3,300		4,973		3,350		4,947
Total payables for collateral on investments	$	4,968	$	6,691	$	4,995	$	6,639

⁽¹⁾

We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 5 for additional information.

⁽²⁾

Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾

Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities.

⁽⁴⁾

Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Schedule Of Increase (Decrease) In Payables For Collateral On Investments



	For the Nine
	Months Ended
	September 30,
	2017			2016
Collateral payable for derivative investments	$	41		$	995
Securities pledged under securities lending agreements		(16	)		(3	)
Securities pledged under repurchase agreements		(2	)		110
Investments pledged for FHLBI		(50	)		(105	)
Total increase (decrease) in payables for collateral on investments	$	(27	)	$	997

Schedule Of Securities Pledged By Contractual Maturity



	As of September 30, 2017
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Repurchase Agreements
Corporate bonds	$	-	$	100	$	283	$	150	$	533
Total		-		100		283		150		533
Securities Lending
Corporate bonds		200		-		-		-		200
Total		200		-		-		-		200
Total gross secured borrowings	$	200	$	100	$	283	$	150	$	733


	As of December 31, 2016
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Repurchase Agreements
Corporate bonds	$	-	$	-	$	389	$	146	$	535
Total		-		-		389		146		535
Securities Lending
Corporate bonds		212		-		-		-		212
Foreign government bonds		4		-		-		-		4
Total		216		-		-		-		216
Total gross secured borrowings	$	216	$	-	$	389	$	146	$	751