Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of September 30, 2017						As of December 31, 2016
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
AFS securities:
Fixed maturity securities	$	93,767		$	93,767		$	89,013		$	89,013
VIEs’ fixed maturity securities		-			-			200			200
Equity securities		302			302			275			275
Trading securities		1,665			1,665			1,712			1,712
Mortgage loans on real estate		10,382			10,487			9,889			9,853
Derivative investments (1)		960			960			927			927
Other investments		2,210			2,210			2,230			2,230
Cash and invested cash		1,965			1,965			2,722			2,722
Other assets:
GLB direct embedded derivatives		570			570			-			-
GLB ceded embedded derivatives		53			53			203			203
Indexed annuity ceded embedded derivatives		3			3			-			-
Separate account assets		139,612			139,612			128,397			128,397

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(1,318	)		(1,318	)		(1,139	)		(1,139	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(612	)		(612	)		(629	)		(629	)
Account values of certain investment contracts		(32,089	)		(36,281	)		(31,516	)		(35,647	)
Short-term debt		(450	)		(453	)		-			-
Long-term debt		(4,900	)		(5,455	)		(5,345	)		(5,679	)
Reinsurance related embedded derivatives		(63	)		(63	)		(53	)		(53	)
Other liabilities:
Derivative liabilities (1)		(213	)		(213	)		(553	)		(553	)
GLB direct embedded derivatives		-			-			(371	)		(371	)
GLB ceded embedded derivatives		(7	)		(7	)		-			-

⁽¹⁾

We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

Fair Value Of Assets And Liabilities On A Recurring Basis



		As of September 30, 2017
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	78,721			$	2,580		$	81,301
ABS			-			991				27			1,018
U.S. government bonds			562			7				5			574
Foreign government bonds			-			345				110			455
RMBS			-			3,481				13			3,494
CMBS			-			537				6			543
CLOs			-			679				15			694
State and municipal bonds			-			5,049				-			5,049
Hybrid and redeemable preferred securities			70			493				76			639
Equity AFS securities			32			80				190			302
Trading securities			73			1,542				50			1,665
Derivative investments (1)			-			1,119				564			1,683
Other investments			150			-				-			150
Cash and invested cash			-			1,965				-			1,965
Other assets:
GLB direct embedded derivatives			-			-				570			570
GLB ceded embedded derivatives			-			-				53			53
Indexed annuity ceded embedded derivatives			-			-				3			3
Separate account assets			824			138,788				-			139,612
Total assets		$	1,711		$	233,797			$	4,262		$	239,770

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,318	)	$	(1,318	)
Long-term debt			-			(1,134	)			-			(1,134	)
Reinsurance related embedded derivatives			-			(63	)			-			(63	)
Other liabilities:
Derivative liabilities (1)			-			(438	)			(498	)		(936	)
GLB ceded embedded derivatives			-			-				(7	)		(7	)
Total liabilities		$	-		$	(1,635	)		$	(1,823	)	$	(3,458	)


		As of December 31, 2016
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	74,659			$	2,405		$	77,064
ABS			-			1,052				33			1,085
U.S. government bonds			408			11				-			419
Foreign government bonds			-			395				111			506
RMBS			-			3,611				3			3,614
CMBS			-			343				7			350
CLOs			-			676				68			744
State and municipal bonds			-			4,627				-			4,627
Hybrid and redeemable preferred securities			60			468				76			604
VIEs’ fixed maturity securities			-			200				-			200
Equity AFS securities			17			81				177			275
Trading securities			102			1,545				65			1,712
Derivative investments (1)			-			1,406				599			2,005
Other investments			146			-				-			146
Cash and invested cash			-			2,722				-			2,722
Other assets – GLB ceded embedded derivatives			-			-				203			203
Separate account assets			863			127,534				-			128,397
Total assets		$	1,596		$	219,330			$	3,747		$	224,673

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,139	)	$	(1,139	)
Long-term debt			-			(1,203	)			-			(1,203	)
Reinsurance related embedded derivatives			-			(53	)			-			(53	)
Other liabilities:
Derivative liabilities (1)			-			(939	)			(692	)		(1,631	)
GLB direct embedded derivatives			-			-				(371	)		(371	)
Total liabilities		$	-		$	(2,195	)		$	(2,202	)	$	(4,397	)

⁽¹⁾

Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty.

Fair Value Measured On A Recurring Basis Reconciliation



	For the Three Months Ended September 30, 2017
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	2,517		$	4		$	35		$	(35	)	$	59		$	2,580
ABS		43			-			(1	)		-			(15	)		27
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		109			-			1			-			-			110
RMBS		7			-			-			6			-			13
CMBS		21			-			-			(1	)		(14	)		6
CLOs		28			-			-			15			(28	)		15
Hybrid and redeemable
preferred securities		82			-			3			-			(9	)		76
Equity AFS securities		183			-			(1	)		9			(1	)		190
Trading securities		59			-			-			(10	)		1			50
Derivative investments		155			(13	)		9			(85	)		-			66
Other assets: (5)
GLB direct embedded derivatives		298			272			-			-			-			570
GLB ceded embedded derivatives		85			(32	)		-			-			-			53
Indexed annuity ceded embedded derivatives		-			-			-			3			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,268	)		(47	)		-			(3	)		-			(1,318	)
Other liabilities – GLB ceded embedded
derivatives (5)		-			(7	)		-			-			-			(7	)

Total, net	$	2,324		$	177		$	46		$	(101	)	$	(7	)	$	2,439



	For the Three Months Ended September 30, 2016
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	2,425		$	(1	)	$	15		$	(74	)	$	66		$	2,431
ABS		62			-			-			-			(27	)		35
U.S. government bonds		10			-			-			(2	)		-			8
Foreign government bonds		112			-			1			-			-			113
RMBS		16			-			-			51			(13	)		54
CMBS		8			-			-			30			-			38
CLOs		45			-			(1	)		35			(5	)		74
Hybrid and redeemable
preferred securities		89			-			(1	)		-			-			88
Equity AFS securities		170			3			(6	)		(4	)		-			163
Trading securities		65			1			4			6			-			76
Derivative investments		423			(89	)		(1	)		(69	)		-			264
Other investments (4)		1			-			-			-			-			1
Other assets – GLB ceded
embedded derivatives (5)		539			(65	)		-			-			-			474
Future contract benefits – indexed annuity
and IUL contracts embedded
derivatives (5)		(1,102	)		(64	)		-			41			-			(1,125	)
Other liabilities:
Credit default swaps (4)		(16	)		1			-			15			-			-
GLB direct embedded derivatives (5)		(2,458	)		581			-			-			-			(1,877	)
Total, net	$	389		$	367		$	11		$	29		$	21		$	817



	For the Nine Months Ended September 30, 2017
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	2,405		$	15		$	153		$	(182	)	$	189		$	2,580
ABS		33			-			-			-			(6	)		27
U.S. government bonds		-			-			-			-			5			5
Foreign government bonds		111			-			(1	)		-			-			110
RMBS		3			-			-			10			-			13
CMBS		7			-			1			54			(56	)		6
CLOs		68			-			-			33			(86	)		15
State and municipal bonds		-			(1	)		-			-			1			-
Hybrid and redeemable
preferred securities		76			-			14			-			(14	)		76
Equity AFS securities		177			1			(2	)		15			(1	)		190
Trading securities		65			2			8			(26	)		1			50
Derivative investments		(93	)		(25	)		97			87			-			66
Other assets: (5)
GLB direct embedded derivatives		-			570			-			-			-			570
GLB ceded embedded derivatives		203			(150	)		-			-			-			53
Indexed annuity ceded embedded derivatives		-			-			-			3			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,139	)		(230	)		-			51			-			(1,318	)
Other liabilities:
GLB direct embedded derivatives (5)		(371	)		371			-			-			-			-
GLB ceded embedded derivatives (5)					(7	)		-			-			-			(7	)
Total, net	$	1,545		$	546		$	270		$	45		$	33		$	2,439


	For the Nine Months Ended September 30, 2016
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net (2)			Value
Investments: (3)
Fixed maturity AFS securities:
Corporate bonds	$	1,993		$	(1	)	$	79		$	72		$	288		$	2,431
ABS		45			-			(1	)		14			(23	)		35
U.S. government bonds		-			-			-			8			-			8
Foreign government bonds		111			-			2			-			-			113
RMBS		1			-			-			66			(13	)		54
CMBS		10			2			(1	)		27			-			38
CLOs		551			-			1			113			(591	)		74
Hybrid and redeemable
preferred securities		94			-			(6	)		-			-			88
Equity AFS securities		164			3			(4	)		-			-			163
Trading securities		73			3			5			5			(10	)		76
Derivative investments		555			(346	)		170			(115	)		-			264
Other investments (4)		-			1			-			-			-			1
Other assets – GLB ceded
embedded derivatives (5)		268			206			-			-			-			474
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (5)		(1,100	)		(76	)		-			51			-			(1,125	)
VIEs’ liabilities – derivative instruments (5)		(4	)		4			-			-			-			-
Other liabilities:
Credit default swaps (4)		(9	)		(6	)		-			15			-			-
GLB direct embedded derivatives (5)		(953	)		(924	)		-			-			-			(1,877	)
Total, net	$	1,799		$	(1,134	)	$	245		$	256		$	(349	)	$	817

⁽¹⁾

The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾

Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period. For AFS and trading securities, the difference between beginning-of-period amortized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in the prior period.

⁽³⁾

Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾

The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁵⁾

Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Schedule Of Investment Holdings Movements



	For the Three Months Ended September 30, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	167		$	(114	)	$	(19	)	$	(43	)	$	(26	)	$	(35	)
RMBS		6			-			-			-			-			6
CMBS		-			-			-			(1	)		-			(1	)
CLOs		15			-			-			-			-			15
Equity AFS securities		10			(1	)		-			-			-			9
Trading securities		-			(10	)		-			-			-			(10	)
Derivative investments		50			(23	)		(112	)		-			-			(85	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			-			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(14	)		-			-			11			-			(3	)
Total, net	$	237		$	(148	)	$	(131	)	$	(33	)	$	(26	)	$	(101	)



	For the Three Months Ended September 30, 2016
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	92		$	(20	)	$	(18	)	$	(50	)	$	(78	)	$	(74	)
U.S. government bonds		-			-			-			(2	)		-			(2	)
RMBS		51			-			-			-			-			51
CMBS		31			-			-			(1	)		-			30
CLOs		35			-			-			-			-			35
Equity AFS securities		-			(4	)		-			-			-			(4	)
Trading securities		7			-			-			(1	)		-			6
Derivative investments		47			(46	)		(70	)		-			-			(69	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(13	)		-			-			54			-			41
Other liabilities – credit default swaps		-			15			-			-			-			15
Total, net	$	250		$	(55	)	$	(88	)	$	-		$	(78	)	$	29



	For the Nine Months Ended September 30, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	367		$	(179	)	$	(66	)	$	(170	)	$	(134	)	$	(182	)
RMBS		10			-			-			-			-			10
CMBS		55			-			-			(1	)		-			54
CLOs		33			-			-			-			-			33
Equity AFS securities		18			(3	)		-			-			-			15
Trading securities		2			(27	)		-			(1	)		-			(26	)
Derivative investments		145			243			(301	)		-			-			87
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			-			-			3
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(45	)		-			-			96			-			51
Total, net	$	588		$	34		$	(367	)	$	(76	)	$	(134	)	$	45



	For the Nine Months Ended September 30, 2016
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	381		$	(19	)	$	(22	)	$	(133	)	$	(135	)	$	72
ABS		15			-			-			(1	)		-			14
U.S. government bonds		-			-			-			8			-			8
RMBS		66			-			-			-			-			66
CMBS		31			(2	)		-			(2	)		-			27
CLOs		115			-			-			(2	)		-			113
Equity AFS securities		4			(4	)		-			-			-			-
Trading securities		6			-			-			(1	)		-			5
Derivative investments		132			(133	)		(114	)		-			-			(115	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(58	)		-			-			109			-			51
Other liabilities – credit default swaps		-			15			-			-			-			15
Total, net	$	692		$	(143	)	$	(136	)	$	(22	)	$	(135	)	$	256

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Derivative investments	$	(83	)	$	(94	)	$	(159	)	$	(271	)
Other investments		-			-			-			1
Embedded derivatives:
Indexed annuity and IUL contracts		2			(1	)		(13	)		(24	)
GLB		428			712			1,352			(521	)
VIEs’ liabilities – derivative instruments		-			-			-			4
Credit default swaps		-			9			-			2
Total, net (1)	$	347		$	626		$	1,180		$	(809	)

⁽¹⁾

Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Components Of The Transfers In And Out Of Level 3



	For the Three								For the Three
	Months Ended								Months Ended
	September 30, 2017								September 30, 2016
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	116	$	(57	)	$	59		$	147	$	(81	)	$	66
ABS		-		(15	)		(15	)		-		(27	)		(27	)
RMBS		-		-			-			3		(16	)		(13	)
CMBS		-		(14	)		(14	)		-		-			-
CLOs		-		(28	)		(28	)		-		(5	)		(5	)
Hybrid and redeemable preferred
securities		-		(9	)		(9	)		-		-			-
Equity AFS securities		-		(1	)		(1	)		-		-			-
Trading securities		1		-			1			-		-			-
Total, net	$	117	$	(124	)	$	(7	)	$	150	$	(129	)	$	21



	For the Nine								For the Nine
	Months Ended								Months Ended
	September 30, 2017								September 30, 2016
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	277	$	(88	)	$	189		$	476	$	(188	)	$	288
ABS		15		(21	)		(6	)		4		(27	)		(23	)
U.S. government bonds		5		-			5			-		-			-
RMBS		-		-			-			3		(16	)		(13	)
CMBS		3		(59	)		(56	)		-		-			-
CLOs		30		(116	)		(86	)		-		(591	)		(591	)
State and municipal bonds		2		(1	)		1			-		-			-
Hybrid and redeemable preferred
securities		-		(14	)		(14	)		-		-			-
Equity AFS securities		-		(1	)		(1	)		-		-			-
Trading securities		4		(3	)		1			1		(11	)		(10	)
Total, net	$	336	$	(303	)	$	33		$	484	$	(833	)	$	(349	)

Fair Value Inputs Quantitative Information



	Fair			Valuation	Significant	Assumption or
	Value			Technique	Unobservable Inputs	Input Ranges
Assets
Investments:
Fixed maturity AFS and trading
securities:
Corporate bonds	$	2,008		Discounted cash flow	Liquidity/duration adjustment (1)	0.7	%	-	11.5	%
ABS		24		Discounted cash flow	Liquidity/duration adjustment (1)	3.0	%	-	3.0	%
Foreign government bonds		79		Discounted cash flow	Liquidity/duration adjustment (1)	1.7	%	-	3.4	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment (1)	1.9	%	-	1.9	%
Equity AFS securities		23		Discounted cash flow	Liquidity/duration adjustment (1)	4.5	%	-	4.9	%
Other assets:
GLB direct and ceded
embedded derivatives		623		Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	85	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	80	%	-	115	%
					NPR (5)	0.01	%	-	0.27	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%

Indexed annuity ceded
embedded derivatives		3		Discounted cash flow	Lapse rate (2)	0.4	%	-	9	%
					Mortality rate (6)				(8)
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(1,318	)	Discounted cash flow	Lapse rate (2)	0.4	%	-	9	%
					Mortality rate (6)				(8)
Other liabilities – GLB ceded
embedded derivatives		(7	)	Discounted cash flow	Long-term lapse rate (2)	1	%	-	30	%
					Utilization of guaranteed withdrawals (3)	85	%	-	100	%
					Claims utilization factor (4)	60	%	-	100	%
					Premiums utilization factor (4)	80	%	-	115	%
					NPR (5)	0.01	%	-	0.27	%
					Mortality rate (6)				(8)
					Volatility (7)	1	%	-	29	%

⁽¹⁾

The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽²⁾

The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period.

⁽³⁾

The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁴⁾

The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁵⁾

The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract.

⁽⁶⁾

The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁷⁾

The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation.

⁽⁸⁾

The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.